Annual Report 2003–04

Department of Innovation, Industry and Regional Development Cover Images: Victoria hosts around 40 per cent of Australia’s biotechnology enterprises. Warehouse employee Fidel Payad at Autoliv, which received a Victorian Government Workplace Excellence Award for Better Work and Family Balance. Over the last decade, exports from Victoria have grown by an average of 6 per cent per annum. Rochford on Eyton at Coldstream is one of over 55 wineries in Victoria’s Yarra Valley. Advice from the Small Business Counselling Service helped owner of Exeter Cellars, Vinit Abbott to grow his business. Contents

Secretary’s Foreword 2

Our Ministers 3

Section 1: Overview 4 The Department in Context 5 Role and Structure of the Department 5 Organisational Chart 8 Highlights at a Glance for 2003–04 10

Section 2: Achievements 12 Innovation and Policy Output Group 13 Business Output Group 19 Regional Development Output Group 27 Industrial Relations Output Group 31 Tourism Victoria Output Group 34 Corporate Services 40

Section 3: Financial Report 42

Section 4: Appendices 78

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 1 Secretary’s Foreword

The Department of Innovation, Industry and Regional In April 2004, DIIRD was assigned lead responsibility for Development (DIIRD) continues to implement the Victorian delivering key initiatives announced in the Government’s Government’s economic development agenda and lead the Economic Statement, Victoria: Leading the Way. In May 2004, Government’s efforts in building an innovative, internationally a new body within the Department, Invest Victoria, was competitive and globally connected Victorian economy. launched by the Victorian Government to aggressively promote Victoria as a leading international investment location. DIIRD’s achievements contributed significantly to the strong and consistent economic performance of the Victorian The Department welcomes the exciting opportunities economy in 2003–04. In a challenging global environment, generated by these new responsibilities. Building on our the Department helped deliver major economic benefits to strong record of achievement, I am confident DIIRD will Victoria: attracting high levels of business investment, successfully meet these new challenges and continue to increasing the state’s market share in tourism, driving make a vital contribution to Victoria’s economic performance. innovation across Victoria and stimulating industry and regional development. I thank the staff of the Department for their hard work over the past year. The achievements highlighted in this annual report In the first half of the financial year, the Department undertook reflect their dedication, enthusiasm and commitment to the a major consultation and reorganisation process aimed to task of building a more competitive and innovative Victoria. boost our capacity to meet the Government’s objectives within the context of a changing global economy. While Peter Harmsworth Victoria has many strengths and advantages – and successful Secretary economic development strategies in place – major challenges are emerging from the increasingly competitive international environment. The organisational restructure will ensure DIIRD provides the leadership necessary to meet these challenges. It will also assist the Department in delivering a seamless service to Victorian businesses and investors.

The 2003–04 financial year marked the first full year of operation of Regional Development Victoria and the Small Business Commissioner. Regional Development Victoria successfully promoted new economic and investment opportunities in regional areas and delivered a suite of programs to strengthen regional infrastructure, industries and communities. The Small Business Commissioner successfully mediated a high proportion of notified disputes over retail leases.

2 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Our Ministers

The Hon. The Hon. The Hon. John John Brumby, MP Tim Holding, MP Pandazopoulos, MP Minister for State and Minister for Minister for Tourism Regional Development Manufacturing Minister for Innovation and Export Minister for Financial Services Industry

The Hon. The Hon. Marsha Thomson, MLC Rob Hulls, MP Minister for Minister for Small Business Industrial Relations

Our Parliamentary Secretaries

Joe Helper, MLA Matt Viney, MP Parliamentary Secretary, Parliamentary Secretary, Regional Development Innovation and Industry

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 3 01 Overview The Department in Context Role and Structure of the Department

The Victorian economy continued to record steady growth in As the lead agency for economic and regional development 2003–04 despite subdued global circumstances and difficult in Victoria, DIIRD is responsible for building a state where domestic conditions, including the effects of the severe innovation leads to thriving industries and high quality jobs. drought and some of the worst bushfires in the state’s history. The Department comprises seven Ministerial portfolios: Victoria is well placed to build on this strong economic – Innovation performance as the global outlook improves and the state continues to recover from the drought. However, Victoria – State and Regional Development faces significant external challenges in the year ahead. Rising – Small Business oil prices, a fluctuating Australian dollar, upward pressure on – Tourism interest rates and an increasingly competitive global economy – Industrial Relations are creating additional risks for the Victorian economy. New pressures and opportunities will emerge for Victorian – Financial Services Industry businesses as a result of strong growth in large markets such – Manufacturing and Export. as China, growing trade liberalisation and Australia negotiating Free Trade Agreements with the United States and Thailand In addition DIIRD is responsible to the Minister for Education which are targeted to commence in January 2005. and Training for the Government’s Design Initiative.

The Department of Innovation, Industry and Regional The Department holds a central role in achieving the Development (DIIRD) is playing a leading role in building Government’s economic vision for Victoria as outlined in its Victoria’s capacity to meet these challenges. Through a Growing Victoria Together statement and the Government’s strong focus on creating a more internationally competitive major economic development policies, Victoria: Leading the and globally connected Victorian economy, DIIRD is Way – Economic Statement 2004, Victorians. Bright Ideas. contributing to creating a competitive business environment, Brilliant Future. – Innovation Statement 2002 and Building boosting export performance, promoting regional Today’s Businesses for Tomorrow – Business Statement 2002. development, supporting high performing industries and workplaces, and driving innovation across the state. The key Government objectives relevant to DIIRD are: – More jobs and thriving innovative industries across Victoria The Department continues to implement the Victorian – Promoting sustainable development Government’s Innovation Economy Policy, which aims to position Victoria as a leading innovation economy. DIIRD’s – Growing and linking Victoria achievements in 2003–04 include facilitating the attraction of – Building cohesive communities and reducing inequalities $2.4 billion of new investment to Victoria, developing a new – Promoting rights and respecting diversity. biotechnology strategic plan, introducing a new Design Initiative and ongoing work with the Innovation Economy To achieve the Government’s economic goals, the Advisory Board. Independent research undertaken for DIIRD Department has five objectives: in 2003–04 demonstrated substantial economic benefits were being realised through the Department’s management of 70 – Encourage and support development of innovative, science, technology and innovation infrastructure projects. internationally integrated and competitive industries and businesses for Victoria The Department is also delivering key initiatives announced in – Work to create a competitive business environment and the Government’s April 2004 Economic Statement, Victoria: capabilities for an innovation economy Leading the Way, including the creation of Invest Victoria, – Strengthen Victorian regional economies, infrastructure and new support for Victorian exporters and measures to boost communities growth and exports in Victoria’s services industries. – Support the development of high performing, cooperative During 2004–05, DIIRD will continue to work closely with and fair workplaces and a highly skilled workforce business and industry to make Victoria a leading investment – Encourage and support the contribution of tourism to location and build a diverse, innovative and export-oriented Victoria’s economic and social development. economy that is capable of meeting the challenges and opportunities ahead.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 5 Role and Structure of the Department continued

In September 2003, in order to better position the Department to ensure it can best achieve its overall objectives in a global economy, structural changes were made to the organisation. As a result the Department is now structured into the following divisions and agencies.

Division/Agency Core Responsibilities

Invest Victoria (IV) Promotes the state as a globally competitive business location to increase business investment and employment levels. Invest Victoria targets and attracts new investors to the state and is being developed as a single entry point for international and domestic investors.

Business Development Works strategically to assist Victorian businesses to Encompasses the Office of Science and grow, export and stimulate industry development across Technology, the Office of Manufacturing, the Office key industry sectors with the overarching objective of of Service Industries and works in close association creating wealth and jobs for all Victorians. It focuses with the Office of Regional Industries (part of on sector development, capability building and strategic Regional Development Victoria). enablement. It also develops and designs initiatives to assist businesses throughout the state to increase their growth, innovation and global competitiveness.

Business Support Provides a focal point for initiatives and support programs Encompasses the Offices of Small Business, critical to meeting the Government’s economic goals, Investment Facilitation, International Business and including creation and growth of innovative businesses, Exports, as well as the Koori Business Network a single point of access for information and assistance and Program Support Branch. to business, promoting a competitive business and regulatory environment, facilitation of investment projects and coordination of export related support services.

Industrial Relations Victoria (IRV) Creates and promotes a positive industrial relations environment and builds better workplaces.

Tourism Victoria (TV) Maximises employment and the longer term economic benefits of tourism to Victoria by developing and marketing the state as a competitive tourist destination for both domestic and international tourists.

(chart continues on next page)

6 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Division/Agency Core Responsibilities

Regional Development Victoria (RDV) Promotes regional economic and infrastructure development through the attraction of investment and jobs and the delivery of initiatives and services to provincial Victoria.

Economic Policy and Planning Provides strategic leadership for economic policy development across the portfolio. Coordinates the Department’s strategic planning process.

Corporate Services Provides corporate support services, including finance, human resources, knowledge management, governance and corporate communication.

Two other important bodies associated with DIIRD are:

Office of the Small Business Commissioner Promotes a genuinely competitive and fair business environment for Victorian small businesses, through mediation, investigation of complaints of businesses abusing market power, enforcing industry codes of practice and ensuring that government practices are business friendly.

Innovation Economy Advisory Board Provides independent, challenging strategic advice to the The Board comprises leading figures from industry, Government on how to develop and promote Victoria as a academia, the arts and science communities and leading innovation economy. government.

For the purposes of reporting, the Department’s activities are described according to the following output groups: – Innovation and Policy – Business – Industrial Relations – Regional Development – Tourism.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 7 Organisational Chart

Minister for State and Minister for Innovation Minister for Manufacturing Minister for Financial Regional Development and Export Services Industry

John Brumby John Brumby Tim Holding Tim Holding

Innovation Economy Advisory Board Small Business Commissioner Australian Grand Prix Corporation Melbourne Convention & Exhibition Trust Tourism Victoria Board Regional Development Advisory Committee Federation Square Management Pty Ltd Emerald Tourism Railway Board

Deputy Secretary Economic Deputy Secretary Deputy Secretary Chief Executive Regional Policy & Planning Business Development Business Support Development Victoria

Richard Clarke Jane Niall Lynne Williams Kerry Murphy

Economic Policy Office of Science Office of Small Business Regional Infrastructure & Technology Development Innovation Economy Office of Investment Office of Manufacturing Facilitation Regional Industries Research Office of Service Office of International Regional Coordination Corporate Planning Industries Business & Export Strategy & Regional Government Services Commercialisation & Program Support Policy Clusters Koori Business Network Economic & Community Business Programs Communications

Film & Television

8 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Minister for Small Business Minister for Industrial Minister for Tourism Relations

Marsha Thomson Rob Hulls John Pandazopoulos

Secretary Department of Innovation, Industry and Regional Development

Peter Harmsworth

Chief Executive Officer Deputy Secretary Chief Executive Deputy Secretary Invest Victoria Industrial Relations Tourism Victoria Corporate Services

Ben Foskett Greg Vines Lois Appleby Marion van Rooden

International Investment Private Sector Strategic Policy Knowledge Management & Planning Planning & Coordination Public Sector Human Resourses Infrastructure & Aviation Marketing Finance Marketing Victorian Government Corporate Governance Business Offices Executive Services & Administration

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 9 Highlights at a Glance for 2003–04

Innovation and Policy Output Group 2003, requiring all public sector agencies to include details – Led a 170-strong Victorian delegation to the world’s largest of their compliance with the Victorian Industry Participation biotechnology conference, BIO2004, in San Francisco in early Policy (VIPP) as part of their annual reports. Evaluation June 2004. At BIO2004, the Minister for Innovation undertaken by the Department in early 2003–04, found that announced the agreement between Australia and the US on in 2002–03 the VIPP had been applied to 56 projects, sequencing the kangaroo genome and launched the updated valued at $971 million. Local employment commitments Biotechnology Strategic Development Plan for Victoria. arising as a result of these projects are estimated at almost 5000 full-time equivalent jobs. – Launched the VicStart initiative, to support successful commercialisation of Victoria’s science, technology and – As part of the VIPP, gained confirmation of new and innovation ideas. The fourth Commercialise Forum was increased funding of $5.8 million for the Industry Capability held and work has begun on the Pilot Regional Network (ICN) for the next three years. Of this amount, $1.5 Commercialisation Program. million will enable the ICN to expand its regional office network, ensuring greater access by regional Victorian – Engaged Allen Consulting Group to undertake an outcome business to the ICN’s import replacement and local review and economic impact study of the $310 million sourcing services. The ICN’s 2003–04 target of $88 million Science, Technology and Innovation (STI) Initiative First in import replacement was exceeded, with a final result of Generation. The review found that the STI Initiative First $95.66 million. Generation was performing above the average for publicly funded research in Australia. Business Output Group – Managed Round Three of the STI Infrastructure Grants – Facilitated new investments totalling $2460 million. Among Program, valued at up to $60 million, for funding in the new investments announced are: areas of physical capital, human and social capital and structural capital. – GE Money consolidating and expanding its Australasian Head Office and establishing a training and – Facilitated grants of $19.4 million to biomedical research development centre in Richmond, with a project cost of institutes, an 11 per cent increase over the previous year. $98 million and 1550 jobs. – Established the Centre for Energy and Greenhouse – Toyota announced establishment of an Asia Pacific R&D Technologies, geared to bridging the funding gaps which exist centre, involving $47 million capital investment. when commercialising new energy-specific technologies. – Aldi confirmed plans to establish a distribution centre in – Conducted the Victoria Prize and Fellowships, presented in Laverton and retail outlets across Victoria. Expected conjunction with the Anne and Eric Smorgon Memorial capital investment is $108 million, resulting in 1080 jobs. Award of $100,000. The $50,000 Victoria Prize was – Supported development of the Economic Statement, awarded to Dr David Vaux for his work into apoptosis Victoria: Leading the Way in April 2004. The Statement (programmed cell death). Six $15,000 Victoria Fellowships focused on driving new investment in Victoria, stimulating were also awarded. creation of new jobs, lowering costs for Victorian businesses – Achieved substantial progress on construction of the and supporting increased exports of Victorian good and Australian Synchrotron, with major component contracts services. awarded by Major Projects Victoria and substantial – Established Invest Victoria, the leading whole-of-Victorian progress on minor tenders. Held industry day and users’ Government agency with the goal of attracting business workshops with representatives from Australian and investment to the state. international companies. – Agreed to an historic pact with all states and territories – Led development of the Government’s Opening Doors to (except Queensland) to end interstate bidding wars for Export plan, which aims to double the number of exporters business investment and major events. and increase the value of Victorian exports to $30 billion by 2010. Development of the plan involved extensive – Opened the new Victorian Government Business Office in consultation with industry and key stakeholders, a survey of Nanjing, China. 150 companies, focus group research, evaluation of – Assisted 230 Victorian companies to participate in 29 existing export programs and research into export events in key markets such as China, the Middle East, programs interstate and overseas. Europe and North America. Participating companies – Consulted with industry on US Australia Free Trade estimate their annual exports will increase by $177.5 million Agreement and helped develop Victorian Government’s as a result of attending these events. position on the Agreement. Regularly briefed Ministers and – Showcased precision engineering, automotive and building key officials on the US Australia Free Trade Agreement as industries through Industry Capability Missions to Asia and well as negotiations for an Australia Thailand Free Trade the Middle East. The rail mission to Europe in late 2002–03 Agreement and the feasibility study into a potential Australia and the building industry mission to the Middle East have China Free Trade Agreement. so far resulted in export orders worth over $30 million for – As part of the Innovation Economy Policy and in Victorian companies. partnership with the Department of Education and Training, – As part of the four-year Agenda for New Manufacturing, conducted a comprehensive study of Victoria’s design held the 2004 Hall of Fame Gala Dinner, including induction capability, highlighting the scale of the design sector, its of nine companies into the Hall of Fame. challenges and economic contribution to the state. – Coordinated meetings between Manufacturing Industry – The Innovation Economy Advisory Board continued to Consultative Council with representatives of manufacturing provide the Government with advice regarding related advisory groups and governments from other states and policies and initiatives. territories. Gained agreement on the need for joint activity at – Implemented the Victorian Industry Participation Policy Act a national level to improve competitiveness and sustainability

10 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 of manufacturing sector. The process highlighted Victoria’s and businesses to consider rural and regional Victoria as a leadership on national initiatives for manufacturing. place to invest, work and live. – Construction of the film and television studios was completed ahead of schedule in February 2004 and within budget. Industrial Relations Output Group – Launched the action plan for Victoria’s Financial Services – Implemented new legislation to ensure fairer workplaces, Industry, Investing in Victoria’s Future. The $1.8 million plan encompassing the Federal Awards (Uniform System) Act includes establishment of the Melbourne Centre for and the referral of the common rule power to the Financial Studies. Commonwealth to ensure that previously award-free employees have access to federal award conditions, as – Provided benchmarking assistance and grants for well as implementation of the Outworkers (Improved collaborative projects involving 33 companies in logistics, Protection) Act and Child Employment Act. manufacturing, automotive, food and health industries through the Supply Chain Capital Program. – Assisted negotiation of major enterprise agreements covering the public service, teachers, nurses and other – Gained commitment for a further three years of the highly health sector occupational groups. successful Under New Management Program for business intenders. – Through the Ethical Clothing Trades Council, monitored compliance of the clothing industry with regard to – A survey of Grow Your Business participants found that 79 outworker entitlements and promotion of voluntary per cent had made changes to their business since agreements such as the Homeworkers Code of Practice. undertaking the program. – Launched the Action Agenda for Work and Family Balance – Funded 22 organisations under the StreetLife Small and the Better Work and Family Balance Program, which Industry Support program. provided funding for innovative work and family balance pilot – Through the Small Business Counselling Service, projects in small and medium sized businesses in Victoria. developed a Business Diagnostics Program to support – Launched the 2004 Workplace Excellence Awards, independent liquor store operators. targeting enterprises taking a partnership approach to the – Recognised the achievements of small businesses through roles of creativity, commitment and the contribution of a range of events, including the Telstra and Victorian people in building successful organisations. Government Small Business Awards and the Australian Retailers Association of Victoria’s Retail Night of Nights. Tourism Output Group – Improved the www.business.vic.gov.au website to deliver a – Victoria achieved a growth in visitation, attracting 1.2 million single, user-focused website including information on a international visitors in the year to March 2004, while key range of business-related areas. competitors, New South Wales and Queensland recorded a decrease. Regional Development Output Group – Victoria recorded a 24.2 per cent market share of all – Contributed to the attraction of $1029.9 million of new domestic visitors. Victoria, (i.e. 17.9 million Australian investment in rural and regional Victoria, which is expected to visitors), which was a slight (0.5 per cent) decrease in lead to the creation of more than 1697 new jobs and over visitors in the year to March 2004 compared with the $255 million in exports. Investment attraction successes previous year. included: – Conducted the Yarra Valley advertising campaign, the first of – Woolworth’s development of a $90 million distribution a series of campaigns designed to raise awareness of key centre near Wodonga, which will create more than 300 regional Victorian destinations. The campaign led to an extra full-time jobs. 48,000 overnight visitors from New South Wales visiting the – Rivers’ $7 million investment in a new manufacturing Yarra Valley – a 78 per cent increase on the previous year. plant, warehouse and retail shops on a 9.4-hectare site – Launched three touring campaigns during the year – for the at Warrenheip, which will employ 20 staff. Goldfields, Great Alpine Road and Great Ocean Road. – Iluka Resources Limited $270 million mineral sands investment including a mine, mineral concentrating – Conducted the annual Brand Health Survey, recording an facility and mineral separation plant near Hamilton and increase in the proportion of people identifying Victoria ‘as a Horsham, which will create 250 jobs in the construction great place to tour by car’ (up 4 per cent to 24 per cent). phase and ongoing employment for 150. Victoria is the leading state for this attribute, indicating the success of regional touring campaigns for the Great Alpine – Facilitated the extension of the Natural Gas Network in Road, Goldfields and Great Ocean Road. country Victoria, through provision of $70 million through the Regional Infrastructure Development Fund. In 2003–04, – Generated more than $291 million of international publicity, the Government reached agreement with gas distribution well above the target for the year. Tourism Victoria generated company Envestra to extend natural gas networks to $82.75 million worth of editorial coverage in key Australian Bairnsdale and Paynesville. publications and television programs through a familiarisations program, public relations campaigns and media activities. – Provided assistance through the Community Regional Industry Skills Program, that will lead to the creation of 280 – Jointly led the State Government’s investment bid project jobs and $48 million in new investment. In particular, team to secure Jetstar Airways’ head office for Victoria. provided assistance worth more than $630,000 for nine Jetstar’s decision to base in Melbourne has provided projects to help companies facing skill shortages. Victoria with a one-off opportunity to develop the domestic leisure market ahead of other states. – Delivered the Make it Happen in Provincial Victoria marketing campaign. The campaign was developed in – Attracted a record number of visitors to Tourism Victoria close partnership with the state’s 48 rural and regional consumer websites. The total number increased by 98.6 councils and is aimed at encouraging Melbourne residents per cent to 2.49 million visitors.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 11 02 Achievements Innovation and Policy Output Group

Innovation is a key element in boosting Victoria’s international An evaluation of the VIPP across the Victorian public sector competitiveness. As the lead agency for driving innovation during 2002–03 was undertaken in early 2003–04. The across the state, DIIRD is helping to deliver major economic evaluation found that the VIPP had been applied to 56 benefits to Victoria by promoting business innovation, projects, valued at $971 million. Local employment facilitating the commercialisation of science and technology, commitments arising as a result of these projects are and building Victoria’s capabilities in emerging industries. estimated at almost 5000 full-time equivalent jobs.

Output group description Industry Capability Network The Industry Capability Network (ICN) is a company limited This output group brings together the strategic leadership by guarantee which promotes Australian industry through responsibilities for economic development policies including import replacement and opportunities for participation in the key areas of science, technology and innovation. In overseas projects. ICN is the key delivery arm for the VIPP. addition to the strong policy and strategic development role there is also a number of programs delivered, including the New and increased funding of $5.8 million was confirmed for areas of science and technology, especially biotechnology. the ICN for the next three years. Of this amount, $1.5 million will enable the ICN to expand its regional office network to Department objectives to which the output group ensure greater access by regional Victorian business to the contributes ICN’s import replacement and local sourcing services. – Encourage and support the development of innovative, internationally integrated and competitive industries and The Industry Capability Network (formerly Industrial Supplies businesses for Victoria Office) is largely funded by DIIRD. The ICN’s 2003–04 target of $88 million in import replacement was surpassed, with a – Work to create a competitive business environment and final result of $95.66 million. capabilities for the innovation economy – Strengthen Victoria’s regional economies, infrastructure and Trade Policy Development and Advice communities Trade policy was a key issue in 2003–04, with the signing of – Support the development of high performing, cooperative the US Australia Free Trade Agreement, the conclusion of and fair workplaces and a highly skilled workforce. official negotiations for an Australia Thailand Free Trade Agreement and the commencement of a feasibility study into Growing Victoria Together objectives to which the a potential Australia China Free Trade Agreement. The Department regularly briefed Ministers and key officials across output group contributes government on the latest developments, coordinated industry – More jobs and thriving, innovative industries across Victoria consultation and provided strategic input into the Victorian – Promoting sustainable development Government’s position. It played a particularly important role – Growing and linking all of Victoria in consulting with industry on the US Australia Free Trade Agreement and in developing the Victorian Government’s – Valuing and investing in lifelong education. position on the Agreement.

Outputs Delivered During 2003–04, the Department lead the development of Strategic Policy the Opening Doors to Export plan, which aims to meet the Victorian Government’s commitments to double the number Industry Policy Development and Advice of exporters and increase the value of exports to $30 billion Throughout 2003–04 economic advice was provided across by 2010. The plan was developed over a 12 month period a range of industry issues for which DIIRD Ministers have and involved extensive consultation with industry and key responsibility. stakeholders, a survey of 150 companies, focus group discussions, regular meetings of an inter-departmental Textiles, Clothing and Footwear Industry Tariffs working group, evaluation of existing government export The Department coordinated the Victorian Government’s programs and research into export programs interstate and substantial input into the Productivity Commission’s inquiry overseas. The plan was launched by the Premier and into Assistance Measures in the Textiles, Clothing and Minister for Manufacturing and Export in April 2004, with Footwear (TCF) Industry. The Victorian Government programs due to commence in July 2004. contributed a written submission which was informed by independent research and extensive consultation with Environment Policy Development and Advice industry, industry groups, employer groups, unions and Since July 2003, through funding provided under the local councils. Victorian Greenhouse Strategy, the Department has been working to identify suitable actions to help improve the Victorian Industry Participation Policy delivery of Government sustainability programs to Victorian The Department oversees the Victorian Industry Participation businesses. Three key actions have been initiated: Policy (VIPP), a policy aiming to foster industry development – The development of a web-portal that provides Victorian by encouraging bidders in large tenders to consider businesses with a common reference point, where they can Australian and New Zealand suppliers. In 2003, the access information about sustainability support programs Department assisted in the development of legislation. right across the Victorian Government The VIPP Act (introduced in October 2003) requires all public – A pilot program with EPA Victoria, EcoRecyle Victoria and sector agencies to include details of their compliance with the the Plastics and Chemicals Industry Association, to develop VIPP as part of their annual reports. information on ‘life cycle assessment’ tools and techniques – A pilot program with the National Centre for Sustainability at

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 13 Innovation and Policy Output Group continued

Swinburne University to develop sustainability self- – To help promote Victoria as a leading innovation economy. assessment and improvement tools for small to medium enterprises (SMEs). The Board has provided the Government with advice and support on a number of important initiatives and areas of Innovation Economy Policy policy involvement, including: The Victorian Government’s Innovation Economy Policy was – Establishment of the Victorian Endowment for Science, announced in the October 2002 Innovation Statement Knowledge and Innovation (VESKI) as a limited liability Victorians. Bright Ideas. Brilliant Future. company to help attract to Victoria eminent scientists and other leaders in their field In 2002–03, the Government committed $10.2 million over – The Alfred Deakin Innovation Lectures to be held in May two years to a range of initiatives aimed at building Victoria’s 2005. The IEAB is the auspice body for these lectures and design capabilities. In 2003–04, the Department’s currently oversees their delivery achievements, in partnership with the Department of Education and Training, included: – The significance of developments in China for innovation in Victoria with members of the Board advising the – A comprehensive study of Victoria’s design capability, Government’s China strategy process highlighting the scale of the design sector, its challenges and its economic contribution to the state – STI Initiative priorities – a sub-Committee of the Board provided advice to the priorities process – The Victorian Premier’s Design Award, which at $40,000 is the richest design award in Australia. The award was – Creative capital – is an active working group of the Board presented as part of the State of Design exhibition and providing advice to the Government. This group also played awards in August 2004 an important role in the successful visit of Professor Richard Florida to Melbourne in March 2004. Professor Florida is – New qualifications, education pathways and skills arguably the leading regional development economist of the development programs for teachers and trainers to moment and engagement with him through both public enhance design education and training lecturing and private meetings and seminars has helped – Support to establish RMIT University’s lab.3000 Centre of advance policy thinking on the importance of creative Excellence in Digital Design, which has undertaken capital considerably. research, education delivery and promotion of digital design to industry and the wider community Science Technology and Innovation – Events positioning Victoria as an international design The Victorian Government recognises that innovation is the centre, such as Museum Victoria’s Design in Italy: key to international competitiveness. It has therefore invested 1945–2000 exhibition and assistance to Monash University more than $900 million for the purposes of fostering and to attract the Design Research Society International building the innovation state over the past five years. The Conference FUTUREGROUND to Victoria in November centrepiece of this commitment has been the Science, 2004, the first time this major international event has been Technology and Innovation (STI) Initiative. held outside Europe. The first generation of the STI Initiative was launched in The Department contributed to the national innovation policy 1999–2000 and projects under this $310 million, five-year agenda through consultations and submissions to the initiative are already demonstrating economic, social and Australian Government in the lead up to the May 2004 environmental benefits for the state. Following this success, a national innovation statement. The Department also provided second tranche of $310 million over five years for the STI advice to assist the design and development of the Australian Initiative – Second Generation – was announced in October Government’s new Commercial Ready program. 2002 as part of the Government’s Innovation Economy Policy. The Office of Science and Technology (OST) From 2003 the Victorian Government has sponsored the implements the Government’s strategy of driving Victoria’s InnovationXchange Network, a one-stop source of innovative economic growth and development by enhancing its science ideas and resources. Through its Innovation Briefing series and technology base, encouraging business innovation, and visiting International Fellows, the InnovationXchange facilitating the commercialisation of research, and advancing works to build connections throughout industry and the Victoria’s leadership in the innovation economy and emerging business and scientific communities. In May 2004, new sectors. InnovationXchange commenced a pilot program of ‘trusted intermediaries’ to facilitate the mutually beneficial exchange of Science, Technology and Innovation First Generation – intellectual property (IP) between companies. Innovation Economy Outcomes Innovation Economy Advisory Board DIIRD engaged the Allen Consulting Group to undertake an outcome review and economic impact study of the $310 As a key initiative arising from the Government’s Innovation million STI Initiative First Generation. The Outcome Review Statement, Victorians. Bright Ideas. Brilliant Future, the was finalised in November 2003. The review concluded that: Innovation Economy Advisory Board (IEAB) was established in early 2003. The Board comprises leading figures from The STI Initiative First Generation is performing above the industry, academia, the arts and science communities and average for publicly funded research in Australia, and government. It is chaired by the Minister for Innovation. The rates of industry co-funding and collaboration in STI Minister for Education and Training is also a member of this funded research projects clearly exceed the average level Board which has two main roles: of industry collaboration with publicly funded research activities in Australia. – To provide independent and strategic advice to Government on how to develop Victoria as an innovation economy

14 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 (Left) The Premier, Steve Bracks with other members of the Australian delegation at the BIO2004 conference in San Francisco, US in June 2004 (Right) Minister for Innovation, John Brumby, together with Ian Smith, CEO, ANSTO at the site of the Australian Synchrotron in Clayton, Melbourne

STI funded research projects are attracting considerable cash Case Study investment from local, national and international industry, the Australian innovation binds genome research project with US Federal Government and philanthropic sources and appear to be generating new IP of potential commercial value at higher than average rates (per dollar of research funding) in Greater milk production in cows, the development of new Australia. The STI Initiative Rounds 1 and 2 Infrastructure antibiotics, a clearer understanding of lung functions in premature newborn babies and the refinement of treatments for diseases Grants program in particular exemplifies the considerable such as cancer, spinal cord damage in humans and ‘mad cow benefits that can be achieved through Government acting as disease’ in cattle, are major projects to be developed as part of a strategic investor in the science, technology and innovation a collaborative research project between Australian and US system. The Allen Consulting Group’s modelling forecasts genome scientists. that the STI Initiative will generate the following net economic impacts for Victoria over the 2000–14 period. Overall the STI The Minister for Innovation, the Hon. John Brumby, and the Initiative will make a significant net positive contribution to the Director of the US National Human Genome Research Institute, Dr Francis S. Collins, MD, PhD, jointly announced this cooperative Victorian economy: move at the biotechnology conference, BIO2004, – Real Gross State Product is forecast to be $2.18 billion in the US earlier this year. higher than it would have been in the absence of the STI The Victorian Government is providing approximately $4.5 million Initiative towards this collaborative research between the Australian – Real investment in Victoria is forecast to be $868 million Genome Research Facility (AGRF) and the US-based National higher than it would have been in the absence of the STI Institutes of Health (NIH). The project sequences the kangaroo Initiative genome of the Australian Tammar Wallaby (a member of the kangaroo family). Australia is at the forefront of marsupial genomic – Real private consumption in Victoria is forecast to be research, having researched and collected valuable information $420.4 million higher than it would have been in the about the genetic sequences that control lactation, milk absence of the STI Initiative composition and nutrition in the species. – By 2014 the STI Initiative is forecast to generate an overall Comparison of human genomes with those found in the wallaby, increase in employment of about 1700 jobs. enables scientists to identify regions of similarity and difference and to provide clues about the structure and functions of those Clearly, the STI Initiative First Generation can be viewed as a genes which are vital to human health and development. successful long-term Victorian Government investment that has made a significant net positive contribution towards the The work will be split between the Australian Genome Research Victorian Government’s overarching goal of increasing living Facility (AGRF) in Melbourne, Australia and the US Baylor College of Medicine. The development of information gathered from the standards for all Victorians. project will provide valuable opportunities for Australian scientists to build relationships with the NIH: one of the largest and most Australian Synchrotron influential medical research agencies in the world. Construction of the Australian Synchrotron commenced in 2003–04, with all major machine component contracts awarded by Major Projects Victoria, and substantial progress on minor tenders underway. At the Monash site, the outer shell of the building is almost complete, and construction of a specialised experimental floor is also well advanced. Over the past year opportunities for involvement in the project were showcased to 180 Australian and international companies at an industry day. The National Science Case for the initial beamlines was lodged with potential funding partners. Among some key foundation partners who have been attracted to this program are Monash University, the University of Melbourne, CSIRO and Australian Nuclear Science and Technology Organisation (ANSTO), who each contributed $5 million to the initial suite of beamlines. The Australian Tammar Wallaby is the subject of a Government-supported research project Biomedical Research Institutes involving collaboration between the Australian Approval of operational infrastructure grants to Victoria’s Genome Research Facility and US-based Biomedical Research Institutes were announced by the Minister National Institute of Health. for Innovation in August 2003. The amount for 2003–04 totals $19.4 million, this represents an 11 per cent increase in funding over the past year. This is in line with the increase in competitive research income awarded to Victorian institutes.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 15 Innovation and Policy Output Group continued

Biotechnology seminars and recorded 8403 attendees (compared with the Melbourne, Victoria was the focus of world attention in July previous year’s 2977 attendees). 2003 when the city hosted the nineteenth International Congress of Genetics. Six Nobel Laureates as well as 1100 Clusters and Technology Parks international visitors and over 2770 delegates attended the Since the release in 2001 of Building a Commercial Base for Congress. Other significant conferences supported by the Tomorrow’s Industries: A Framework for Victoria’s Government included BioPartnering Europe (October 2003), Technology Parks, the Office of Science and Technology the National Stem Cell Conference (November 2003), the first (OST), has facilitated the development of a number of World Congress of Chinese Medicine (November 2003), and technology precincts. the Global Access Partners Forum on Informatics in Biology – A Parkville Strategic Planning project is currently underway, and Medicine (December 2003). Victoria was one of the main led by OST in conjunction with the Department of Human instigators of a biotechnology strategic alliance between the Services. This process seeks to establish a 10-year Strategic states and New Zealand in May 2004. The Premier and the Precinct Plan taking into account issues surrounding future Minister for Innovation also led a 170-strong Victorian developments of stakeholders to the precinct delegation to the world’s largest biotechnology conference, – Development of a Strategic Plan for continuing BIO2004, in San Francisco in early June 2004. As well as development of the Werribee Technology Precinct is being announcing the agreement between Australia and the US on led by OST in conjunction with the Department of Primary sequencing the kangaroo genome, the updated Industries. The process seeks to establish a framework Biotechnology Strategic Development Plan for Victoria was including a governance system, under which development launched at BIO2004. of the precinct can take place over the next 30 years.

In 2003-04 the Biotechnology Unit completed a review of the Commercialisation Victorian Biotechnology Strategic Development Plan The Victorian Government recognises the vital role launched in 2001. Many of the targets had been met or technology commercialisation plays in maintaining exceeded. Highlights over the three years include: international competitiveness and contributing to our quality – 68 new biotechnology companies were established of life and economic prosperity. The successful Technology – 10 new research/investment partnerships were formed, Commercialisation Program (TCP) has been instrumental in with a combined project value exceeding $180 million the growth of a sustainable technology commercialisation – Clinical trial research investment levels increased services sector in Victoria. The 2003–04 State Budget delivered $25 million for a second generation program aimed – Six new or expanded manufacturing facilities were secured at further driving business innovation across the Victorian – 17 community information forums on biotechnology were economy. This new initiative – VicStart – aims to build and held in rural and regional Victoria. expand on the TCP by improving the linkages, processes and skills required to successfully commercialise Victoria’s Centre for Energy and Greenhouse Technologies science, technology and innovation ideas. The Centre for Energy and Greenhouse Technologies (CEGT), an initiative under the Victorian Government Greenhouse Following research and consultation, three priority areas have Strategy, was opened by the Minister for Innovation and the been identified and VicStart will concentrate on programs in Minister for Energy Industries and Resources in August 2003. these areas. They are: The Government committed $14.25 million to seed the – Capability Building – addressing the identified need to build establishment of CEGT. The Centre aims to encourage commercial skills, expertise and connectivity to enhance the greater industry collaboration in the development and capabilities of technology entrepreneurs, in order to grow demonstration of energy and greenhouse reducing global technology businesses technologies. CEGT is a private company with shareholders from industry and is geared to bridging the funding gaps that – Access to Finance – we need to boost the expertise, exist when commercialising new energy-specific experience and development of the technology finance technologies, particularly at the new and emerging sector so that the availability of specialist financial services pre-commercial stages. and investment opportunities is improved – Technology Transfer – addressing the need to provide The Centre has secured 15 founding members from industry, improved linkages between and within industry sectors and universities, research institutes and government utilities. To research establishments to increase the transfer of date CEGT has received over 90 expressions of interest for technology that has clear commercial outcomes. co-funding on projects valued at over $600 million. The fourth annual Commercialise Forum was held in Centre for Innovation and Technology Commercialisation November 2003. Commercialise 2003, previously a statewide The Centre for Innovation and Technology Commercialisation forum, has now developed sufficiently to become a national (CITC) is a facility for delivering innovative commercialisation event and for the first time was delivered through partnership programs. It also provides a range of services to the with the Australian Institute for Commercialisation. innovation community – inventors, investors, research and industry. Its services may be provided to an individual, an In November 2003, work began on the new Pilot Regional entity, a research or educational institution or an industry Commercialisation Program. This program runs in body. To date, services include professional advice to the conjunction with Regional Development Victoria. It aims to innovator community, educational programs, the showcasing help regional companies access the commercialisation skills of innovative products across a range of industries and a and services available to metropolitan innovators. This base for networking. This year CITC held 13 exhibitions, 227 program has run in the North/North-East and Western regions, with other regions to follow.

16 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 STI Infrastructure Grants Program Education and Awareness The competitive STI Infrastructure Grants Program is one of This program undertakes activities and sponsors events and the premier programs under the STI Initiative. It is also one of programs to enhance Victoria’s STI capabilities in research, the largest grants investment programs in science and skills and networks. It also increases public awareness and technology infrastructure operating in Australia. Since 2000, advocacy to influence policy settings. Activities for the year the Victorian Government has awarded close to $120 million past have included: to 32 science and technology infrastructure projects in two – The awarding of the $50,000 Victoria Prize in August 2003, rounds under the Program. The total value of Round One to Dr David Vaux from the Walter and Eliza Hall Institute of and Two projects through the competitive STI Infrastructure Medical Research (WEHI). Dr Vaux received this award for Grants Program amounted to $644.62 million at the end of his work into apoptosis (programmed cell death) that has the 2003–04 financial year – a leverage factor of 4.78-to-1 revolutionised scientific thinking and cancer research. WEHI (external funds-to-STI support). The grants support the was awarded the associated $100,000 Anne and Eric acquisition and development of new private and public sector Smorgon Memorial Award by the Jack and Robert infrastructure in Victoria in priority industry sectors and Smorgon Families Foundation for supporting Dr Vaux’s strategic technologies. work. Six $15,000 Victoria Fellowships were also awarded to emerging leaders in science, technology or engineering. A major aim of the program is to invest in collaborative projects between industry and research sectors that will – The Victorian Endowment for Science, Knowledge and enhance opportunities for the translation of knowledge and Innovation (VESKI), was established to develop programs research into the marketplace. The program also aims to that leverage expatriate expertise and which strengthen build capabilities that will increase the movement of new innovation in Victoria. VESKI has a six-member Board of technologies or novel discoveries towards market testing and Directors chaired by former Lieutenant-Governor of Victoria, uptake. In May 2004, the Minister for Innovation announced Professor Adrienne Clarke. In May 2004, the Minister for Round Three of the STI Infrastructure Grants program. This Innovation, John Brumby, announced Professor Andrew Round was valued at up to $60 million. Holmes as the recipient of a Victorian Endowment for Science, Knowledge and Innovation Fellowship, worth up Small Scale Technologies to $100,000 per annum over five years. Victoria has strong capabilities in the areas of micro and nano – Initiatives under the Victorian Expatriates Network (VEN) technology (small scale technologies). program announced in 2002–03 continue to be developed. The network is intended to provide and develop links DIIRD together with the Australian Institute of between Victorian enterprises and expatriates. Commercialisation, and the Micro and Nanotechnology – OST has developed a mechanism to facilitate the skilled Commercialisation Education Foundation, hosted the migration to redress shortages in skills and human Commercialisation of Small Technologies in the Asia Pacific resources in emerging industries. OST collects data on conference, which was presented over December 7–8, 2003 short-term skills shortages and provides this data to the in Melbourne. The forum and workshop provided an State Government’s Skilled Migration Unit. opportunity for participants in the Asia Pacific region to gain – OST contracted Young Achievement Australia (YAA) to an understanding of the current status and key issues in the pilot a program to develop the enterprise and development and commercialisation of small technologies commercialisation skills of PhD and Masters students. from the perspective of technology developers, the The Biotechnology Entrepreneurship Program (BEP) investment community and Government leaders. involved teams of 10–25 postgraduate students together creating a fully operational company capable of producing a biotechnology product or service.

Recipient of the prestigious 2003 Victoria Prize for his work into apoptosis (programmed cell death), Dr David Vaux Innovation and Policy Output Group continued

Performance measures Unit of measure 2003–04 2003–04 Target Performance

Strategic Policy Quantity Victoria’s Design Capabilities (DIIRD deliverables) Centres of Excellence proposals funded number 1 1 Policy and planning for the design capability completed per cent 100 95 Victoria’s Design Capabilities (DE&T deliverables) Number of qualifications developed and accredited number 2 2 Number of students enrolled in courses leading to new design qualifications number 60 60 Number of TAFE/manager and secondary teachers participating in design and innovative thinking activities number 1500 9001 Range of industry training areas receiving specialist input and adopting modified delivery practice number 15 15 Range of curriculum areas with online support materials provided number 5–8 6 Number of pilot design education programs scoped, developed and evaluated number 6 6 Number of industry sectors with discernible design pathways number 6 6 Quality Policy advice which meets quality standards per cent 100 100 Agreed timelines or milestones met per cent >95 >95 Timeliness Victoria’s Design Capabilities (DIIRD deliverables) Design Showcase and Premier’s Award delivered date 4th qtr 1st qtr 2004–05

Science Technology and Innovation Quantity STI Infrastructure projects under management number 70 70 Businesses/researchers accessing STI funded infrastructure number 200 208 Biotechnology partnerships facilitated number 5 8 Victorian participation in international biotechnology fora led by Government number 3 102 Awareness raising and skills programs number 7 7 Value of projects attracted by 1st generation STI contestable funding ratio 4:1 4.78:1 Quality Quality research papers published in peer review journals from STI funded research projects number 100 4353 Skills expansion – PhDs commenced in STI funded projects number 40 2164 Patents sought by STI funded organisations number 10 14 Timeliness STI grants evaluation date 2nd qtr 2nd qtr VicStart – program approved and implementation commenced date 1st qtr 1st qtr

1 The methods used to implement the programs took longer than expected. An additional 1000 participants will complete professional development activity by 30 July 2004. 2 This output exceeded its targets in quarters 2 & 3 resulting in 10 fora being led by the Victorian Government in 2003–04. Participation in fora is subject to annual approval. 3 The original target was based on a pilot study in 2002. The 2003–04 results were sourced from a comprehensive independent study conducted in 2003 on the outcomes of STI Initiative funded projects. Targets for 2004–05 now reflect this more recent data. 4 The original target was based on a pilot study in 2002. The 2003–04 results were sourced from a comprehensive independent study conducted in 2003 on the outcomes of STI Initiative funded projects. Targets for 2004–05 now reflect this more recent data.

18 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Business Output Group

A competitive, globally connected business environment is Ninety-six per cent of the grant value has been expended by vital for attracting investment, high value industries and high the Government for projects that received investment-related quality jobs to Victoria. DIIRD is enhancing its capacity to grant payments in 2003–04, and whose legal agreements aggressively promote investment in Victoria, improve the were signed following 1 July 2002. For these projects, 111 state’s export performance and boost competitiveness, per cent of the agreed capital expenditure and 100 per cent skills and innovation in Victorian businesses. of projected employment were achieved.

The primary departmental outcome measure for this output is Output group description new investments facilitated and announced, and for the year The Business output group provides an integrated business 2003–04 companies have confirmed investments results development model to deliver broadcast information services totalling $2460 million. and business development programs that can support industry development, manufacturing, financial services The new investments which have been announced include: and small business growth. – GE Money (case study on following page) confirmed it would consolidate and expand its Australasian head office Department objectives to which the output group and establish a GE Asia Pacific Training and Development contributes Centre. This $98 million project, located in Richmond, is This group contributes to a range of DIIRD objectives to: expected to result in 1550 jobs – Encourage and support the development of innovative, – Toyota announced it would establish an Asia Pacific R&D internationally integrated and competitive industries and centre, involving $47 million capital investment. The centre, businesses for Victoria which will be situated in Notting Hill, is expected to create 350 new jobs in the state – Work to create a competitive business environment and capabilities for an innovation economy – NEC confirmed plans to invest $70 million in broadband related research with a strong commercial and export – Strengthen Victoria’s regional economies, infrastructure focus. The Next Generation Broadband R&D Facility in and communities. Mulgrave is expected to result in 63 jobs The output group contributes to specific objectives including – Aldi confirmed plans to establish a distribution centre in those outlined in: Laverton and retail outlets across Victoria in a number of regional and metropolitan locations. The expected capital Growing Victoria Together objectives to which the investment is $108 million, resulting in 1080 jobs output group contributes – Jetstar Airways announced it would establish its – More jobs and thriving, innovative industries across Victoria headquarters in Melbourne with a capital investment of – Growing and linking all of Victoria $20 million and the creation of 560 jobs. – Promoting sustainable development. Establishment of Invest Victoria On 12 May 2004, Invest Victoria was officially launched by Outputs delivered the Hon John Brumby, Minister for State and Regional Investment Facilitated and Attracted Development, as the leading whole-of-Victorian Government agency with the goal of attracting business investment to the New Investments Facilitated and Announced state. A major part of this role is to strategically focus the During 2003–04, the Government entered into new state’s investment attraction efforts to identify and facilitate investment incentive contracts totalling $47.1 million. It is potential investment projects world wide. anticipated that these contracts will result in reaping $431 million in capital investment and the creation of 1616 full-time Through Invest Victoria, the Government will aggressively direct jobs. These jobs are primarily distributed across the promote investment in Victoria and raise Victoria’s profile in sectors of automotive ($195.9 million, 699 jobs) and food the international investment marketplace. Invest Victoria will ($122.7 million, 620 jobs). promote the state as a prime international investment location and raise awareness of Victorian industry strengths Following the Auditor-General’s May 2002 review of and capabilities. Investment Attraction and Facilitation, the Department agreed to collect and publish performance data relating to outcomes. Invest Victoria will provide investors with a single entry point when dealing with all government agencies. It will The Department has agreed to contact companies following provide investors with a first point of call access to a announcement of their projects at the estimated time of centralised, streamlined and customised suite of Victorian project maturity. DIIRD contacted companies relating to the Government information and support services. Existing 65 projects maturing in 2003–04. investors will also benefit from the newly developed Investor Development Program, designed to develop Companies reported that they have invested 114 per cent of deeper relationships with major investors in Victoria and to the amount expected to be invested at the time of work closely with these important clients in identifying and announcement and employed 105 per cent of their facilitating reinvestment opportunities. employment forecasts. The Government committed an additional $1 million a year to They also indicated that they had already reached export and resource Invest Victoria’s business offices around the world to sales targets of 83 per cent and 109 per cent respectively, ensure they meet the whole-of-Victorian Government compared to expectations at the time of project objectives of the new agency. announcement.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 19 Business Output Group continued

Case Study DIIRD credits Melbourne’s growth with GE Money’s development

The Department’s involvement in a project to establish the developer management, negotiation with local authorities, adjoining property RMAC and GE Money headquarters in Melbourne, has made owners and interest groups, as well as heritage management, improved Melbourne GE’s centre for all information technology developments for public transport infrastructure, the construction of a tram Superstop in the company’s credit receivables system, and the general ledger for GE Swan Street, improved pedestrian access to Heyington Station, and Money businesses throughout Asia, including India, Thailand, Japan, access to surplus Crown land in the vicinity. Singapore, Indonesia, Hong Kong and Taiwan. President and CEO for GE Money Australia and New Zealand, Mr Thomas GE Money employs 1600 people in the metropolitan area and operates Gentile, chose Melbourne for the company’s development because of across a number of product lines in Australia and New Zealand. These Melbourne’s proximity to numerous prestigious universities and potential for currently include auto finance, personal loans, credit cards and store high quality human resources recruits. Another plus for Melbourne cited by cards, sales finance, mortgages, and credit insurance. Since entering the GE CEO is its housing of the headquarters for some of GE’s largest the Australian market in 1995, GE Money has grown more than 25 per banking and retail partners, and Victoria’s excellence in life style cent annually. With current assets of over $11 billion, GE has 3500 opportunities for GE’s staff. employees in over 150 locations across Australia and New Zealand. Globally, US-based GE Money operates in 37 countries. Australia is the company's fourth largest business, behind the US, the UK and Japan. In September 2003 the Premier announced GE Money’s proposal to establish a $98 million redevelopment of its Swan Street site. The redevelopment includes plans for the consolidation and expansion of its Australian head office and the establishment of an Asia Pacific regional training and development centre. The project will generate up to 1550 new jobs over five years and establish Melbourne as the major GE location in the Asia Pacific region. The investment represents the biggest single jobs announcement in Victoria for 20 years. GE Money receives extensive ongoing investment, facilitation and assistance from DIIRD as part of a whole of government coordination of Meeting with staff at the announcement of GE’s a range of matters enabling GE to meet a tight timeframe to occupy its investment in Melbourne were Thomas Gentile new head office and training centre by October 2005. Other assistance CEO, GE; Premier Steve Bracks and Minister for from DIIRD includes facilitation with planning approval, car parking, traffic Financial Services Industry, Tim Holding.

New Office in Nanjing, China Business Attraction Program over the past two years. In December 2003, the Minister for State and Regional Initiatives undertaken in the past 12 months include: Development, the Hon. John Brumby, officially opened a – Development of a new Invest Victoria Brand Victorian Government Business Office (VGBO) in Nanjing, – Involvement in over 30 international events and China. The new VGBO, which is focused on inward conferences, resulting in more than 300 investment leads investment attraction in the important Jiangsu, Shanghai and and contacts being made Zhejiang regions of China, builds on the existing sister-state relationship between Victoria and Jiangsu Province. – Development of a range of marketing and promotion activities, domestically and off-shore. These include media, Interstate Investment Cooperation Agreement advertising and sales initiatives. On 5 September 2003, all states and territories (with the exception of Queensland) agreed to an historic pact to end Invest Victoria’s website (www.investvictoria.com) continued interstate bidding wars for business investment and major to be a focal point for the promotional work of the agency events. Under the Agreement, these governments pledged to and remains an important source of enquiries and feedback work together to eliminate unnecessary bidding wars and to from Invest Victoria’s clients. Rebranding and ongoing restrict the use of financial incentives in seeking investments content improvements led to substantial increases in hits to and bidding to host major events. This agreement builds on the site (66 per cent over 12 months). an investment attraction agreement announced by the Investment Facilitation Victorian and NSW Governments in 2001. Office of Investment Facilitation (OIF) The Cooperation Agreement represents a major The Office of Investment Facilitation (OIF) provides existing commitment by the states and territories to work together and prospective investors with facilitation and management to promote Australia in international markets. Other joint of investment projects across all industry sectors. OIF plays a initiatives to promote Australia as an investment destination key role in coordinating a whole-of-Government approach include the co-location of international offices where across the sectors, delivering a range of specialist services possible, and sharing information on investment missions including advice on the development approvals process; and international events. This Cooperation Agreement coordination of all three tiers of Government statutory represents a landmark partnership approach enabling a approvals; site location services; identification of infrastructure cooperative focus across Australia. and utility requirements; and continuing client support.

Investment Promotion Throughout 2003–04, as part of its approach of streamlining A Marketing and Communications Strategy has been businesses’ dealings with Government, OIF prepared 48 site developed for the new Invest Victoria agency. The Strategy packages for investors and facilitated 323 inter-agency builds on the activities conducted under the International meetings. A key focus of the OIF involves its management

20 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 of complex projects requiring extensive negotiation and Minister for State and cross-Government coordination. Key projects facilitated in Regional Development, 2003–04 included: John Brumby, helped Jiang Dingzhi, Executive – Continuing implementation of the Government’s Coode Vice Governor of Island hazardous chemical storage redevelopment project Jiangsu Province to cut strategy ($40m) the ribbon at the – Facilitation of a major mineral sands development project opening of the new by Iluka Resources Ltd in the western region of Victoria. office in Nanjing, China. Facilitation of this project by OIF included assisting the 2004, following extensive discussion with the industry. The company in securing development approvals for the project plan, entitled Investing in Victoria’s Future, is the first of its and provision of infrastructure funding through the Regional kind to be released by a State Government for the industry. Infrastructure Development Fund (RIDF) – Basslink Pty Ltd secured approval from the Victorian Investing in Victoria’s Future sets out a two-year development Government for its $780 million electricity interconnector plan developed to build on areas of competitive advantage between Victoria and Tasmania in September 2002. During including financial services research, funds management and 2003–04, OIF played an ongoing facilitation role, assisting education services. The plan also works to confirm Victoria’s the company in its negotiations across Government to reputation as a leading financial services location in the Asia resolve land and easement acquisition issues, transmission Pacific region. requirements and environmental management issues. Basslink Pty Ltd commenced its construction program in $1.8 million has been allocated to implement the plan. A June 2003 and is planning to commission the major initiative of the plan is the establishment of a new interconnector in November 2005 Melbourne Centre for Financial Studies in partnership with – Jayco, which is Australia’s largest caravan and leisure industry and the higher education sector, to position vehicle manufacturer, has commenced the development Melbourne as a world leading centre for financial research. approvals process for its new $10 million greenfield benchmark manufacturing facility in Dandenong South. The plan also includes: OIF assisted the company in its negotiations to secure the – Support for the establishment of an Australian Investment development approvals for the project, including a Research Forum planning scheme amendment to the Greater Dandenong – A grant of $150,000 to Monash University to market and Planning Scheme with the Victorian Government and the highlight to international markets the state’s financial Greater Dandenong City Council. Completion of this services training and education expertise facility is estimated for 2005 – Strengthen links between the higher education and the – Provision of strategic advice on site development issues to industry sectors Siemens VDO to facilitate the development of a new greenfield facility. The new facility will enable Siemens to – Promote the state as a financial services location, through capitalise on recent successes by leveraging the mutual enhanced marketing, investment and events attraction benefits of co-located design and manufacturing activity. – Research potential growth opportunities including ethical The proposed investment is expected to generate up to investment, energy, water and carbon trading markets. 320 new jobs and facilitate future growth of the company – Ongoing facilitation of an agribusiness and logistics precinct A copy of the plan is available from www.business.vic.gov.au in central Victoria in conjunction with the Shire of Supply Chain Capital Program Strathbogie. A new Special Use Zone is proposed to cover the precinct, which will allow for intensive animal industries The Supply Chain Capital Program aims to improve supply to invest and develop in the area. chain practices by encouraging companies to benchmark their performance, adopt international best practices and Investment Centre Victoria improve performance across the whole value chain The Investment Centre Victoria, which is used to showcase through collaboration. Victoria as an investment location to local and international In 2003–04, 19 companies received benchmarking assistance guests, provides a venue for meetings and events aimed at and five grants were approved for collaboration projects. The securing economic growth for the state. In 2003–04 the 33 companies involved were drawn from the logistics, Centre registered a total of 22,513 visitors, including 1839 manufacturing, automotive, food and health industries. international visitors. This is an increase of 19 per cent on the previous year. The value of the Benchmarking Program lies in its ability to Business Development provide companies with ways to better understand their company in comparison to others in the same or similar fields Financial Services Industry Action Plan of operation. Companies benefit from detailed independent Financial Services is the third largest industry in the business analysis, and are able to identify opportunities to Victorian economy, employing around 90,000 people. achieve supply chain excellence. Victoria has been independently benchmarked against peer international locations as a high quality, low-cost location for In its April 2004 Economic Statement, the Government financial services. committed $2.5 million over three years to: – Support the establishment of a national Intelligent Transport An Action Plan for Victoria’s Financial Services Industry was Systems Centre of Excellence released by the Minister for Financial Services Industry in May

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 21 Business Output Group continued

– Encourage firms to implement best practice supply chain Three other export programs – Global Purchasing Strategy, management Going Global and Collaborative Export Marketing – have been – Implement Australian Quality Logistics 1 merged into the more flexible Next Step Exporter program – Provide further support for the Transport Distribution and under the Government’s Opening Doors to Export plan. Logistics Industry Round Table Accelerating Innovation – Promote Victoria as a freight and logistics hub. Agenda programs aimed at accelerating the rate of Trade Fairs and Missions innovation in Victoria’s manufacturers are also well under way. The Trade Fairs and Missions program, an integral part of For 2003–04, 1518 representatives from 261 different Opening Doors to Export, makes a significant contribution to companies participated in over 70 visits to some of the Government’s strategy of supporting firms to enter and Victoria’s best companies. This compares with the target of expand exports. The 2003–04 program assisted 230 180 companies. Victorian companies to participate in 29 events in key markets such as China, the Middle East, Europe and North Follow-up reviews by Invetech, which runs this program, America. As a result of participating in these events, the report that approximately 36 per cent of businesses say they companies estimate that collectively, their annual exports have made improvements to their business’s operations after will increase by $177.5 million. their visits, and 46 per cent plan to make changes in the near future. Some key outcomes as a result of the program include: – Eight Victorian companies, a number of which are first time In 2003–04, 15 Technology Evaluation Projects and six exporters, anticipate that they will achieve $15 million in Technology Demonstration Projects have been undertaken. incremental exports as a result of participating in a Building and Construction Mission to Shanghai, Beijing and Tianjin The Technology Demonstration program assisted the CSIRO in China. During the mission, one participant signed a to promote its Cold Spray technology by supporting an Memorandum of Cooperation with an investment and industry awareness seminar. As part of the outcomes of this, development group from Tianjin to develop a precast two industry applications have been identified. factory. This will result in the export of technology and design fees for the participant’s company for at least the The Keynote Speaker Program, involving 10 international next 3–5 years speakers, provided 1940 Victorian business delegates with – The Department assisted five Victorian companies to exhibit information regarding best practice in lean manufacturing at Singapore’s Environmex Asia, which is the premier since the commencement of this program. The outcome environmental industry fair for the Asia Pacific region. As a from the program has been notably enhanced by the Ai result of attending this fair, a number of Victorian Group’s delivery of its breakfast seminar series with a seminar companies have entered into advanced negotiations entitled ‘Journey to Excellence’. anticipated to generate exports worth several million dollars Building Manufacturing Skills – Nine Victorian medical product and services firms attended MEDICA 2003 in Düsseldorf, Germany with assistance from The identified need to attract new skill and talent to the Department. As a result, these companies expect to manufacturing is being addressed through the Agenda’s achieve $6 million in additional exports. Scholarships program and the development of a Careers in Manufacturing strategy. This activity is supported by initiatives Office of Manufacturing such as the Victorian Manufacturing Hall of Fame, aimed at Now in its second year, the $27 million Agenda for New improving the image of manufacturing. Manufacturing continues to be received enthusiastically by industry with uptake for programs frequently exceeding The 2004 Hall of Fame Gala Dinner was attended by 800 expectations. Some of the highlights for the Agenda are as guests, highlighting the Government’s focus on achieving follows. manufacturing excellence in this state. There were inductions of nine companies into the Hall of Fame, Mr Dick Pratt and Growing Exports Mr Ernest Dawes were placed on the Honour Roll and recognition was given to Young Manufacturer, Mr Scott Agenda programs aimed at increasing Victoria’s exports are Grinter. Mr Bob Herbert and Mr Greg Sword were both well advanced with companies now able to demonstrate the recipients of public recognition for their lifetime contributions benefits gained from these programs. to manufacturing.

Industry Capability Missions showcasing Precision During May 2004, the Manufacturing Industry Consultative Engineering, Automotive and Building industries have visited Council (MICC) held a meeting in Melbourne with Asia and the Middle East. The Rail mission to Europe in late representatives of manufacturing advisory groups and 2002–03 and the Building Industry mission to the Middle East governments from other states and territories. Agreement have resulted in export orders worth over $30 million to was reached on the need for joint activity at a national level to Victorian companies. improve the competitiveness and sustainability of the manufacturing sector. The Export Communication Network has delivered around 10,000 customised information exchanges, with over 700 Film and Television Studios companies becoming involved with the Network, 30 per cent As part of the state’s commitment to positioning Victoria as a being from regional Victoria. major centre for film and television excellence, the Government allocated $40 million to the delivery of a film and

22 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 (Left) Minister for Manufacturing, Tim Holding, at the Manufacturing Hall of Fame Gala Dinner with one of the two Honour Roll recipients, Ernest Frederick Dawes OBE, founder and Chairman of SGE. (Right) Minister for Financial Services Industry Tim Holding launched the Your Neighbourhood, Your Bank program aimed at helping metropolitan Melbourne communities improve their access to quality local financial services.

television studio complex at Docklands under the Case Study Partnerships Victoria policy. Following a competitive tender DIIRD grant seeds greener pastures process, Central City Studios Holdings Pty Ltd was selected as the developer and operator of the complex. With 47 years in the industry, 15 full-time employees and a Construction of the studios was completed ahead of multi-million dollar turnover, Stephen Pasture Seeds (SPS) schedule in February 2004 and within budget. The complex might seem an unlikely company to need government assistance to develop its core business. In fact this company’s comprises five purpose designed, state-of-the-art, air willingness to constantly review its operations and to seek conditioned sound stages. Each studio has production expert advice when needed has helped make SPS a leading office facilities, make-up, wardrobe, green rooms, star independent specialist pasture and lawn seed merchant. dressing rooms and holding bays. Two Australian Recently SPS applied for and won a Grow Your Business productions, The Extra and Hating Alison Ashley were grant to develop a new strategic review and business filmed at the studios. The state-of-the-art facility will house development plan. international and local productions. SPS’ CEO Peter Le Lievre maintains that every couple of years the company reviews its processes for working out a business The section of Docklands Drive that fronts the studios will be plan and strategic plan, keeping the company on track and upgraded in the future. These works are scheduled to take making sure the developments that occur are planned and place when adjacent projects in Docklands proceed. organised, not a haphazard process. Recent reviews led SPS to a series of recommendations and priorities to take the Regulation Reform company to its next growth stage. Recommendations and The Office of Regulation Reform (ORR) assisted the Victorian strategies identified included improved training for those who Government in advocating changes to the Commonwealth deal directly with the seed-buying public, expansion of the Trade Practices Act 1974, (TPA). As part of ORR’s company’s existing education programs to rural store outlets, preparation of a submission to the Senate Economics and the inclusion of independent agronomists and peak industry groups in its education programs. References Committee’s inquiry into the effectiveness of the TPA, in protecting small business, ORR managed the While SPS is developing marketing plans for each separate preparation of amendments that simplified Victoria’s shop region in the state, plans are underway to incorporate more trading arrangement. research on seed coating technology. Across the industry others are certainly paying attention to the SPS profile; the ORR made a significant contribution to developing the company recently won the agribusiness category in the CGU regulation reform initiatives contained in the Victoria: Leading Ballarat Business Awards and was a finalist in this year's Telstra Small Business Awards. the Way Economic Statement. This included the introduction of business impact assessments to scrutinise the impact of new legislation on business.

Victoria: Leading the Way announced the establishment of the Victorian Competition and Efficiency Commission (VCEC). VCEC will have a greater focus on regulation reform and absorb the functions of the Office of Regulation Reform. From 1 July 2004, VCEC will operate as part of the Department of Treasury and Finance.

Small Business Support Information Services The Office of Small Business (OSB) has increased its provision and access to a range of information about starting A grant through the Grow Your Business and growing a business in Victoria. program helped Stephen Pasture Seeds develop a strategic review and business OSB provides information on: development plan. Managing Director Jim – Business start-up Stephen and Agricultural Services specialist Roy Watson enjoyed the results. – Business improvement and expansion – Business programs and industry assistance – Licences, regulation and taxation – Manufacturing – Service industries

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 23 Business Output Group continued

– Regional Victoria one of two types of funding programs: a Business Strategic – Business contacts Review or a Business Development Plan. The Group Program component of GYB offers flexibility and assistance – Business resource centres. to small businesses that can benefit from improving their skills and networking opportunities. Information and advice may be sought through: 1. Face to Face: through a network of Victorian Business In the period 2003–04 the Government exceeded its target Centres (VBCs) to provide 60 per cent of GYB funding to small businesses. More than 300 businesses have received assistance under 2. By telephone: through the Victorian Business Line (VBL) the program since its inception. on 13 22 15. In 2003–04 the operating hours of the VBL were extended. The telephone information service now A qualitative survey of randomly selected GYB participants operates 8.00am–8.00pm Monday–Friday and found that since undertaking the program 79 per cent had 9.00am–12.00pm on Saturdays. The VBL provides free made changes to the way they ran their business. These business start-up and operating information changes included improved business planning, increased marketing and promotions and assessments of new market 3. Via the internet: www.business.vic.gov.au was improved opportunities. in 2003–04 and now provides a comprehensive online resource for businesses in Victoria. The redeveloped StreetLife Business in Victoria website delivers a single, user-focused The StreetLife program promotes small business and website that supports the discovery of information and economic growth through innovative local strategies in services by purpose or function, and facilitates ease of regional centres, small towns and metropolitan commercial navigation between related information portals. and industrial precincts.

Showcasing Women in Small Business In 2003–04, 34 projects were completed. Outcomes included: The Showcasing Women in Small Business program – Glenelg Shire Women in Business Network’s As Easy as continued to be a success in 2003–04. The program assists ABC resource kit. Aimed at business women, the kit women to access finance for business growth through contains locally based information about resources that can training and the provision of current information on the assist women to operate their businesses alternative sources of finance available. The finance manual: Show Me the Money! A Woman’s Guide Through the – Golden Plains Shire: establishment of the inaugural Financial Maze has proved a popular publication, with more Bannockburn Chamber of Commerce than 6500 copies distributed throughout the state. – Formation of a food manufacturing cluster in the cities of Whittlesea and Hume A series of seminars and workshops, to assist and inform – Cities of Melbourne and Yarra: establishment of the Lucid women of ways they can improve their business Business Network to assist businesses in the design, management skills, were conducted throughout the year. manufacturing and distribution of fashion The seminars provided an outline of the finance options available with useful information about how to approach – The Moonee Valley City Council: establishment of the financiers for funds. inaugural Arts in Business Network (ABN) for home-based artists across the western suburbs. In the two years to June 2004, 38 training sessions were held throughout Victoria, attracting almost 750 women from In 2003–04 funding for StreetLife was extended to 2006, around the state. More than half of those women attending enabling 22 organisations to be funded under the StreetLife came from rural and regional Victoria. Small Industry Support program.

The number of female small business operators in Victoria Small Business Counselling Service and grew at an average annual rate of 6.5 per cent between June Mentoring Program 2001 and June 2003 to 137,100. Nationally, the growth was The Small Business Counselling Service (SBCS) is only 0.2 per cent over the same period. supported by the Victorian Government through the Office of Small Business. SBCS provides small business operators Under New Management with access to business experts who can advise, guide and The Under New Management program was initially funded for network with them while they set up a business or work one year by the Estate Agents Guarantee Fund in 2002–03. towards strengthening and improving the performance of an Following the outstanding success of the program, the Estate existing enterprise. Agents Guarantee Fund has committed to provision of funding for a further three years. The program assists In 2003–04 SBCS developed a program that works toward business intenders who are interested in buying a franchise supporting independent liquor store operators. More than or signing a retail lease, by providing workshops and advice 170 small independent liquor retailers across Victoria took about these areas of business. To date, 95 workshops have advantage of the Business Diagnostics Program. Expert been delivered throughout the state. counsellors from the SBCS provided their resources to retailers who identified a need for assistance under this Grow Your Business program via a $3 million liquor industry trust fund. Since it was launched in April 2003, Grow Your Business (GYB) has been further developed to provide increased Counsellors with specific expertise provided retailers with flexibility and greater responsiveness for businesses. Issues one-on-one counselling, including a number of on-site visits. that need to be addressed can now be undertaken through The advice was focused on improving management skills

24 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Celebrating the Telstra and Victorian Government Small Business Awards: Simon Mortimer and helping retailers to develop strategies to build and (Telstra), Karen Cariss refocus their business. (PageUp), Marsha Thomson (Minister for In 2003–04, 562 Victorian small business were matched to Small Business), SBCS counsellors. Simon Cariss (PageUp). E-Commerce Exhibitions Projects Program The E-Commerce Exhibitions Projects Program (ECEPP) was developed specifically to increase the uptake of e-commerce across Victoria and to enable small to medium enterprises program recognised the achievements of local businesses (SMEs) to make better informed decisions about throughout Melbourne’s metropolitan area and awards implementing e-commerce in their businesses. programs were supported in virtually every regional centre and major metropolitan location across the state. Specific to ECEPP’s objectives are that it works to: – Raise awareness and provide general information about Office of the Small Business Commissioner e-commerce The Office of the Small Business Commissioner (OSBC) – Encourage groups of firms to collaborate on e-commerce delivers on the Victorian Government’s objective to provide a projects central point where retail tenancy disputes and small business concerns regarding unfair market or government – Disseminate the knowledge gained from e-commerce practices can be addressed in a timely and low cost manner. innovators. The OSBC produces its own annual report, available at www.sbc.vic.gov.au The 2003–04 financial year marked the finalising of Round 3 projects and the approval of seven new ECEPP projects. During 2003-04, the OSBC successfully provided mediation and alternative dispute resolution services regarding retail Small Business Events tenancy disputes under the Retail Leases Act 2003 and The Small Business Events program recognises the complaints about unfair market practices under the Small achievements of small business in the state. It also celebrates Business Commissioner Act. The OSBC conducted the success of small businesses across Victoria, through the investigations alleging matters such as anti-competitive support of a series of Business Awards programs including conduct by larger competitors against independent small the Telstra and Victorian Government Small Business Awards businesses. The OSBC received references from the Minister and the Australian Retailers Association of Victoria’s Retail in respect of the impact of the cemeteries and crematoria Night of Nights Awards. Business development and Awards legislation on small business and the phase out of the 8 per programs targeting young people included Young cent licence cap for packaged liquor licences. The OSBC Achievement Australia’s 26-week business enterprise also attended to its functions to register leases, process program and the Shell LiveWire mentored business plan applications for section 21 certificates under the Retail competition. The Leader Newspaper’s Business Awards Leases Act and appoint specialist retail valuers.

Case Study Small Business Counselling serves a fund of vintage knowledge

Vinit Abbott arrived in Australia in 1992 with the understanding that previous year. Vinit says that he has learnt that small businesses consumers prefer to buy wine direct, and as a nation renowned for need to be better communicators with, and must make direct links its knowledge and appreciation of wine, Australians would also to, a range of aspects of their particular industry. For Vinit a steady prefer to support their local producers. Vinit’s dream to set up a type success means that he is now looking to purchase a second store of ‘producers market’ – a large shed with lots of parking and wine to help sustain the business’s development through its involvement producers selling direct to their public – was subsequently made a with economies of scale such as better buying power. reality through support and advice from the DIIRD Small Business Counselling Service, which put him in contact with the Packaged Liquor Industry Development Fund. The Fund was established to ensure that small independent liquor retailers had access to support and advice to help them compete in a deregulated marketplace. The advice Vinit received through the Fund and from an experienced business counsellor, helped him to counteract the limitations that scant budgets for innovation, advertising and research and development, place on small businesses. Supported by the experience he gained through the Fund, Vinit began plans to bring businesses together to work cooperatively. His purchase in 2000 of a licensed liquor retail outlet, Exeter Cellars in North Croydon, is in its fourth year of operation, employs one staff member and has a turnover of more than $1 million.

Vinit formed a small-scale association with other local independent Exeter Cellars business owner, Vinit Abbott, liquor retailers to share their resources and expertise. Together they increased profits through association with other engaged in group purchasing, allowing them to become, as a whole, independent liquor retailers and advice from more competitive. Vinit reported that his profits over the last the Small Business Counselling Service. Christmas period were up 35 per cent on the same period in the

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 25 Business Output Group continued

Performance measures Unit of measure 2003–04 2003–04 Target Performance

Regulation Reform Quality Client satisfaction with advice, development and implementation of initiatives that promote a competitive regulatory environment per cent 90 90 Timeliness Regulatory Impact Statements assessed within five days of receipt per cent 100 100 Implementation of regulation reform initiatives within agreed timelines per cent 100 100

Small Business Support Quantity Business referrals number 39,000 39,918 General enquiries: Business enquiries number 43,000 57,284 Small business website enquiries – Business Access, Business Channel, VicExport number 300,000 473,791 Quality Client satisfaction on small business information, referral or mentoring services (survey) per cent 80 92 Small Business Commissioner (SBC) – proportion of business disputes successfully mediated by the Commissioner per cent 50 68.6 Timeliness Small Business State and Regional awards presented date 4th qtr 1st qtr Proportion of applications by retail tenants for leases of less than five years which are responded to by the Small Business Commissioner in 21 days per cent 100 100

Investment Facilitation and Attraction Quantity New investments facilitated and announced $ million $1400m $2460m Jobs derived from investments facilitated number 4000 79951 Investment projects under development number 250 267 Exports delivered from investments facilitated $ million $500m $959.2m2 Companies provided with incentives and/or facilitation services number 150 221 Quantity Client satisfaction rating by businesses with investment facilitation services per cent 90 94

Business Development Quantity Trade fairs and missions supported number 25 29 Enterprise Improvement Services directed to small enterprises per cent 60 87.9 Building Momentum of Innovation: Companies participating in Innovation Insights Visits Program number 180 261 Export facilitated and imports replaced $ million $180m $486.7m3 Companies provided with export assistance number 2500 2787 Companies provided with assistance for innovation and technology uptake number 1500 31374 Companies provided with assistance for growth opportunities number 700 711 Quality Client satisfaction rating by rural businesses and small and medium enterprises (to be confirmed) per cent 90 94.0

1 Includes large job component from GE Capital Finance Australasia Pty Ltd 3 Includes a significant export component from three large Industry Capability (1550), Aldi (1080), JetStar (560), Toyota Motor Corporation (Japan Office – Missions as well as several strong results from overseas trade events. The 350), Woolworths Ltd (300), Qantas (300) and Singtel Optus Pty Ltd (250). ICN export component of result ($96m) was on target. 2 Includes a large export component from NEC Australia Pty Ltd ($100m), 4 The numbers were significantly boosted by the Association for Toyota Motor Corporation (Japan Office – $80m), Iluka Resources ($75m), Manufacturing Excellence (AME) Conference and the Australian Industry Qantas Airways Limited ($75m) and Anite PS ($50m). Group's initiation of the Journey to Excellence breakfast seminars.

26 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Regional Development Output Group

Strongly performing regions are essential to Victoria meeting facilities, and better link regional Victoria to new opportunities the challenges ahead. Through Regional Development in education and information and communication Victoria (RDV), DIIRD is fostering economic and population technologies (ICT) infrastructure. growth across regional Victoria, boosting investment in vital regional infrastructure and services, and supporting new During the past financial year, the Government announced 13 funded projects including: opportunities in rural and regional communities. – The Wodonga Freight Centre ($2 million) RDV is a State Government statutory authority and produces – A Centre for Research and Training in Environmental its own annual report, available at www.rdv.vic.gov.au Science at La Trobe University, Albury Wodonga Campus ($1.5 million) Output group description – Korumburra and Leongatha Saline Waste Water Project RDV leads rural and regional economic policy and program ($3.1 million) development. It also provides services specifically designed – Sunraysia Inland Port ($867,000). to target regional strategic leadership, regional economic development, rural community development and regional Natural Gas Extension Program infrastructure development. Substantial progress was made with the $70 million Natural Gas Extension Program during 2003–04. The Department objectives to which the output group Government opted for allocation of the funding through a contributes centralised tender process. This tender concluded in June 2004, with the outcomes to be known in the second half of – The support and funding of regional, community business 2004. Prior to the commencement of the tender, the and tourism infrastructure Government reached agreement on support to see the – Facilitation of the coordinated delivery of government East Gippsland towns of Bairnsdale and Paynesville programs, services and resources reticulated with natural gas. – Support to regional community development Small Towns Development Fund – Increasing the capacity of rural and regional industries to compete, invest, grow and employ. The $20 million Small Towns Development Fund (STDF) is a program funded through the RIDF. In 2003–04, $5 million was made available to support development projects in rural Growing Victoria Together objectives to which the towns and centres, providing a basis for future social and output group contributes economic growth and activity. – More jobs and thriving, innovative industries across Victoria – Growing and linking all of Victoria STDF projects funded in 2003–04 included: – Building cohesive communities and reducing inequalities. – Rosedale Multipurpose Community Centre ($200,000) – Dinner Plain Service Estate ($185,000) Outputs delivered – Winchelsea Visitor Information Centre ($10,000) Regional Development Victoria – Hattah Water Pipe Upgrade ($31,565) RDV was established in 2003 as a dedicated body to lead the Government in its commitment to the economic Regional Economic Development development of rural and regional Victoria. Its focus is on Investment Attraction building stronger economies, communities and infrastructure RDV continued to make a major contribution towards the to create a prosperous and growing rural and regional Department’s investment attraction performance. RDV has Victoria. The RDV 2003–04 Annual Report presents a more contributed to the attraction of $1029.9 million of new comprehensive account of its activities. investment in rural and regional Victoria, which is expected to lead to the creation of more than 1697 new jobs and over Regional Infrastructure Development Fund $255 million in exports. The Regional Infrastructure Development Fund (RIDF) facilitates investment, employment and export opportunities Examples of investment attraction successes include: in regional Victoria. It achieves this through the provision of – Woolworth’s development of a $90 million distribution funding for capital works projects that support new industry centre near Wodonga, which will create more than 300 development, link transport infrastructure, improve tourism full-time jobs

(Left) The Government, through the Regional Infrastructure Development Fund, supported Woolworths in the development of a regional distribution centre near Wodonga. Premier Steve Bracks, Woolworths employee Peter Thomas, City of Wodonga Mayor Cr Lisa Mahood and Minister for State and Regional Development John Brumby tested the merchandise. (Right) The main street in Stawell was revitalised as part of the Living Regions Living Suburbs program. Minister for State and Regional Development, John Brumby was driven in a convertible, with Northern Grampians Mayor Cr Karen Douglas. Department of Innovation, Industry and Regional Development – Annual Report Regional Development Output Group continued

Case Study Department develops firm foundation with Iluka Mineral Sand Mines

Six years of hard work and negotiations between the State The Douglas project is planned to attract considerable economic Government and Iluka Resources Limited culminated in the benefits to the state, generating an estimated 250 jobs in the announcement recently that Iluka would invest $270 million in its construction phase and around 150 ongoing jobs in the mineral Douglas mineral sands operation in the Murray Basin. The Douglas sands industry. The Port of Portland will benefit from Iluka’s project consists of a mineral separation plant (MSP) near Hamilton investment through $1.5 billion in export sales, while communities and a mine south west of Horsham. will benefit from upgraded water, power and road infrastructure. Several areas within the Department worked on the Iluka project, Currently Australia is a leading producer of mineral sands operations including Regional Development Victoria and the Office of Investment producing around 30 per cent of the world’s traded ilmenite, rutile Facilitation. This work included extensive research and planning to and zircon, predominately from Western Australia. The Iluka ensure the project met with the Government’s objectives of operations will see Victoria produce 10 per cent of this global supply economic, social and environmental returns. Iluka has benefited from and a further 10 per cent in two years. Government guidance in this approval process and has also been able to take advantage of the Government’s extensive geological This is the first major long-term commitment to commercial database in its exploration stage. production of mineral sands in the Murray Basin. It promises enormous benefits for regional Victoria. The Douglas project will The Department has played a leading role in raising the profile of the secure jobs, growth and investment across the state. The project is Murray Basin as Australia’s newest mineral sands province. In part a prime example of government working with industry to achieve this is due to its participation in and support for several important tangible outcomes that will benefit the whole community. studies, namely the Murray Basin Mineral Sands Infrastructure Planning Study and the Mineral Sands Action Agenda. There has also been associated support provided for conferences and associated trade shows. In addition, the Department provided $1.012 million from its Regional Infrastructure Development Fund (RIDF) to the Glenelg Region Water Authority, towards a ‘Class A’ reclaimed water treatment plant in Hamilton. The funding will help provide a secure water supply to Iluka’s mineral separation plant near Hamilton and will boost commercial opportunities in south west Victoria.

Mining work underway on an Iluka Resources site.

– Rivers’ $7 million investment in a new manufacturing plant, Government’s commitment to promoting employment growth warehouse and retail shops on a 9.4–hectare site at and economic development across Victoria. There are two Warrenheip, which will employ 20 staff components of CRISP: CRISP businesses (delivered by RDV) – Iluka Resources Limited $270 million mineral sands and CRISP communities (delivered by the Department for investment including a mine, mineral concentrating facility Victorian Communities). and mineral separation plant near Hamilton and Horsham, which will create 250 jobs in the construction phase and In 2003–04, RDV provided assistance worth more than ongoing employment for 150. $630,000 for nine projects devised to help companies facing skill shortages. It is expected that the assistance provided Regional Exports through CRISP business will lead to the creation of 280 jobs RDV strongly contributed to the Department’s export focus and $48 million in new investment. with thrusts into new market areas such as Mauritius and Regional Commercialisation Pilot Program Chile, and the provision of assistance to 155 companies through the Department’s Trade Fairs and Missions Program. RDV, in conjunction with the Office of Science and This assistance will help these companies develop export Technology (OST), delivered the Regional Commercialisation markets in 13 different countries in Europe, Asia and North Pilot Program in Victoria’s northern, north-eastern and America. RDV visited Mauritius and is working with a major western regions. The Pilot Program provided confirmation supermarket chain in Chile to develop opportunities for that there is significant demand for a program to help Victorian food companies to export to the food service and innovative individuals and businesses in rural and regional retail sectors in those countries. areas develop business cases for the commercialisation of new products, systems, ideas or processes. In response, a Food Strategy series of intensive, highly focused workshops addressing The food industry is a significant contributor to the Victorian those requirements were held in Bendigo, Wangaratta, economy, a major employer and a mainstay of rural and Shepparton and Ballarat. The program has helped more than regional Victoria. Over the past two years the Government 50 individuals and businesses. has consulted with more than 300 individuals and groups to Timber Towns Investment Support Program develop the Next Generation Food Strategy, which will be launched in 2004–05. The strategy will help strengthen the RDV implemented the Timber Towns Investment Support industry by stimulating job creation and investment. Program to address changes in the timber industry by helping drive investment and employment opportunities in Community Regional Industry Skills Program regional Victoria. With a budget of $3.306 million, the The $10 million, four-year Community Regional Industry Skills program has assisted 29 projects, which are expected to Program (CRISP) is a key component of the Victorian generate around $66 million in investments and, in the next

28 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 three years, create more than 800 jobs in agricultural Development Victoria Bushfire Recovery Fund, the program machinery, stockfeed, timber and building products, and the was offered to a range of businesses in fire-affected food and packaging sectors. communities in Victoria’s north-eastern and Gippsland regions. Services included the provision of business plans, Regional Innovation Clusters Program diagnostic reviews, action plans, survival plans and audits. The Regional Innovation Clusters Program was launched in May 2004 in Geelong where a $50,000 study into the Drought Recovery formation of a biotechnology cluster in the region was As part of the Department’s drought recovery activities, announced. Other sectors receiving attention under the RDV delivered the Business Capacity Rebuilding Program program include health, food and ICT. in drought-affected areas of rural and regional Victoria. The program incorporated a series of 39 forums and 50 Regional Industries Division workshops for commercial enterprises significantly affected The Regional Industries Division delivers a range of business by drought, and an individual business assistance assistance services to industry and provides advice to the counselling component. The forums and workshops were Government on the food, resources and rural commerce developed in consultation with local councils, development sectors. In the past financial year, the Division has focused bodies and other business/community groups. on investment attraction, improving the international competitiveness of companies and enhancing Victoria’s Interface Council Liaison export performance. The Interface Councils Liaison Officer delivered community and economic development programs, aided community groups Grow Your Business and Agenda for and local government with information and programs across New Manufacturing Programs departments, and supported feedback and consultation on Under these programs assistance was provided to government programs, including the extension of natural gas companies to undertake a range of consultancy projects pipelines, in the nine interface local government areas aimed to improve and build business in numerous sectors, (Wyndham, Melton, Hume, Whittlesea, Melton, Nillumbik, including export and technology. Yarra Ranges, Mornington Peninsula and Cardinia).

Rural Community Development Country Football Grounds Assistance Program RDV delivered Stage One of the $1 million, two-year program Community Capacity Building Initiative that aims to relieve the impact of water shortages on football Jointly administered by RDV and the Department for grounds. Stage One provided ‘immediate response’ funding Victorian Communities, the Community Capacity Building of $500,000 in the form of one-off funding of up to $20,000, Initiative (CCBI) involved community members working with a generally on a matching dollar-for-dollar basis, for rural, facilitator to guide local pilot projects and implement agreed regional and interface councils. Close to 40 projects were community projects. The initiative ceased on 30 June 2004, funded in 2003–04. consistent with the CCBI’s original charter. Community Development Program To ensure completion of community initiatives and projects, In 2003–04 RDV supported eight Community Development RDV, in partnership with the Helen Macpherson Smith Trust, Program (CDP) projects. Grants totalling $76,500 were established the $1 million Macpherson Smith Community approved. The CDP provides $1 million over four years in the Alliance (MSCA). The MSCA will make grants available to nine interface councils, for local government and incorporated projects identified by rural communities, which were part of organisations to undertake event-based projects that support the CCBI. RDV and the Trust will each provide $500,000 economic and community development. over two years. Make it Happen in Provincial Victoria Rural Community Development Officer Network In 2003–04 RDV delivered the ‘Make it Happen in Provincial During 2003–04 the network of 10 Rural Community Victoria’ marketing campaign. The campaign, which included Development Officers, located across the state, continued to press and television advertising, was developed in close facilitate access to Government services and to liaise with local partnership with the state’s 48 rural and regional councils government, community groups and individuals in order to around the concept of encouraging Melbourne residents and identify and clarify community proposals to strengthen businesses to consider relocating. It was the first time communication with Government and to provide feedback on regional Victoria had marketed itself as an entity and the first community issues. time the councils had worked together to promote rural and Regional Development Advisory Committee regional Victoria as a whole. The campaign has been extended for a further three years. Chaired by Regional Development Victoria’s Chief Executive, Mr Kerry Murphy, the seven-member committee comprises Your Town Your Bank community and business leaders from across regional Victoria. RDV delivers this program through its network of Rural Community Development Officers, providing grants for up to The Committee was formed in September 2003. It liaises with $20,000 on a matching dollar-for-dollar basis, for feasibility RDV in providing advice to the Minister for State and Regional studies into establishing local banking or other financial Development regarding issues arising in regional Victoria. services facilities. In 2003–04 six grants totalling $35,708 Bushfires were provided. The $100,000 Regional Business Regeneration program provided professional advice to businesses in fire-affected areas of the state. Funded through the $2.8 million Regional

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 29 Regional Development Output Group continued

Performance measures Unit of measure 2003–04 2003–04 Target Performance

Regional Infrastructure Development Quantity Regional Economic Development – infrastructure projects funded number 5 5 RIDF projects funded (excluding Gas and Small Towns Development Fund) number 5 6 Small Towns Development Fund (RIDF) projects completed number 60 78 Number of towns included in natural gas reticulation number 4 2 Quality RIDF Committee recommendations accepted by Ministers per cent 90 100 Timeliness Advice to RIDF applicants – after close of funding round days 90 days 79 days

Regional Economic Development Quantity New investments facilitated and announced in regional Victoria number1 $450m $1029.9m2 Jobs created in regional Victoria number 1000 1697 Regional economic development – non infrastructure projects funded number 20 17 Living Regions, Living Suburbs Support Fund: community banking project grants number 8 6 Companies in regional Victoria provided with assistance for growth opportunities number 100 136

Regional Strategic Leadership Quantity Programs delivered to groups of local councils and regional development bodies number 12 11 Strategic policy initiated number 2 2 Regional Development Advisory Committee meetings held in rural and regional Victoria number 5 5 Ministerial forums supported number 3 3 Support for forums on Community Regional Industry Skills Programs number 4 5 Quality Satisfaction of Regional Development Advisory Committee meetings supported per cent 95 100

Rural Community Development Quantity Rural Leadership and community events organised and supported number 60 75 Community capacity building initiative-implementation of action plans number 11 11 Regional State-Local Government community forums number 5 5 Community development grants supported number 9 9 Quality Satisfaction with Community Leadership projects per cent 80 100 Satisfaction with support for Community Events per cent 80 100

1 This unit of measure should read as ‘$ million’. Budget Paper 2003–04 incorrectly records it as ‘number’. 2 Annual results exceeded and includes Illuka Mining ($270m), Santos ($200m), Woolworths ($90m) and Perseverance ($75m).

30 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Industrial Relations Output Group

To succeed in a competitive global economy, Victoria must the permit system that has been in place since 1970, maintain high levels of productivity. DIIRD is working closely although parents will no longer need to obtain a permit if they with business and industry to develop high performing, employ their own children. The Act removes a number of productive and innovative workplaces; promote collaboration, ambiguities that were in the old legislation. partnership and fairness in work practices; and support a better balance between work and family life. Representation in Major Test Cases A submission was made to the Australian Industrial Relations Output group description Commission in respect to the national wage case. Victoria’s involvement in this matter helped pave the way for the state’s The role of Industrial Relations Victoria (IRV) is to develop lowest paid workers to receive a $19 a week pay increase. and implement an industrial relations policy and legislative Victoria participated in the Redundancy Test Case, which framework that promotes high performing workplaces, reviewed the principles that applied to situations of fairness, investment and enhanced employment redundancy, which were largely unchanged in 20 years. The opportunities. In addition, IRV advocates for improvements decision resulted in increased severance entitlements for to Commonwealth Government industrial relations policy and retrenched employees. Victoria is also a participant in the legislation in inter-government forums, and key test cases in current Family Provisions Test Case. The Victorian industrial tribunals and courts. Government, along with the other states and territories, lodged contentions with the Australian Industrial Relations Department objectives to which the output group Commission, advocating for a better recognition of work and contributes family commitments in the industrial relations system. The The industrial relations output group makes a significant state and territory contentions balance the interests of contribution to the achievement of the following Department employees and businesses in terms of better work and family objectives to: balance, and provide a viable alternative approach to a number of the ACTU’s claims. – Work to create a competitive business environment and capabilities for an innovation economy Public Sector Wages Strategy – Strengthen Victoria’s regional economies, infrastructure and IRV provided policy advice in respect to the Government’s communities enterprise bargaining strategy and governance arrangements – Support the development of high performing, cooperative and wages policy. Major enterprise agreements covering the and fair workplaces, and a highly skilled workforce. public service, teachers, nurses and other health sector occupational groups negotiated under these arrangements Growing Victoria Together objectives to which the with outcomes consistent with the wages policy. output group contributes Building Industry Consultative Council The industrial relations output group contributes to the The Building Industry Consultative Council (BICC) was following key objectives of Growing Victoria Together: established to provide a high level forum for dialogue – More jobs and thriving, innovative industries across Victoria between industry stakeholders and Government on – Building cohesive communities and reducing inequalities. significant economic and industrial relations issues in the industry. The Council is made up of representatives from Outputs delivered employer associations and the Minister for Industrial Relations. IRV provides secretariat services. The BICC has Industrial Relations Policy developed a strategic work plan (the Key Challenges Initiative New legislation to ensure fairer workplaces Report) to address initial issues in the industry. Passage of the Federal Awards (Uniform System) Act and the referral of the common rule power to the Commonwealth Ethical Clothing Trades Council occurred in 2003. The legislation will ensure that previously Union, employer and community group representatives make award-free employees, who are only entitled to seven up the Ethical Clothing Trades Council. The Council will minimum conditions of employment, have access to federal monitor compliance of the clothing industry with obligations, award conditions, which entail 20 minimum conditions. The with respect to the entitlements of outworkers, promote the Outworkers (Improved Protection) Act was also implemented adoption of voluntary agreements, such as the Homeworkers to provide much needed protection for one of our most Code of Practice, provide quarterly reports on their findings disadvantaged groups of workers. The Child Employment Act and provide advice on whether a mandatory code is required, has also now been implemented. This legislation continues 12 months after the commencement of the legislation.

Industrial Relations Victoria staff, Danielle Le and My Linh wore traditional Vietnamese dress and spread the word about improved protection for Victoria’s clothing outworkers at the Vietnamese Lunar New Year Festival. Industrial Relations Output Group continued

Better Work and Family Workplace Excellence Awards In November 2003, the Premier launched Victoria’s Action In June 2003, the Minister for Industrial Relations launched Agenda for Work and Family Balance, outlining major the 2003 Workplace Excellence Awards. The Awards initiatives to enhance work and family balance including the highlight enterprises that use a partnership approach to focus Better Work and Family Balance Program. This provides on the critical role played by the creativity, commitment and funding for innovative work and family balance pilot projects contribution of people in building a successful organisation. in small and medium sized businesses in Victoria. The Awards criteria and evaluation process were developed in collaboration with SAI Global (formerly Business Excellence Industrial Relations Services Australia) and are derived from the Australian Business Partners at Work Excellence Framework (ABEF). The criteria focus on a partnership approach that includes employee involvement, Two rounds of funding were undertaken within the 2003–04 information sharing, employee consultation and finding a financial year. Partners at Work is a competitive grants balance between work and family commitments. A panel program designed to promote workplace change that consisting of representatives from the business community, benefits all stakeholders within an enterprise. The program the public sector, unions and academia decide on award provides funding for projects that are intended to increase winners from the short-listed organisations. The 2003 award employee participation and improve workplace relationships. presentation took place on 28 November 2003.

Case Study No looking down at Air International

Air International in Campbellfield is a dynamic leader in product At the heart of its organisational culture, Air International displays delivery, attracting worldwide attention. The reason for its an intelligent respect for individual knowledge through a flat success lies with its system of partnership and support. Air organisational structure. Everyone wears a uniform, whether they International won the 2003 Workplace Excellence Award for are a production team member or a plant manager and everyone workplaces with 100–250 employees. It is the entire company’s has lunch together. assertion that its knowledge expertise lies firmly in the hands of its employees, who have the improvement ideas and know-how The organisation has a close relationship with the Australian to solve problems. Manufacturing Workers Union Vehicle Division, which was evident when the plant manager and senior shop steward stood together While many companies employ a consultative approach, to accept the 2003 Workplace Excellence Award. everyone at Air International believes consultation is the only way the site can work for the company to move forward. The focus is on continuous improvement at every level of the operation from management to the people who deal with the processes and product on a daily basis. When the company won a contract to supply components to Ford Australia, Air International spent the next 18 months creating a state-of-the-art production facility adjacent to the Ford plant. Together the company set about determining what would work best to develop a unique workplace culture, and in turn, attract the right type of people to lead the company. Attention was quickly turned to how the facility would run – its people, culture, values and safety. A commitment to full consultation was agreed as the only option. Employees were hired before operations began so they could contribute their ideas and experience on how the facility should run. Minister for Industrial Relations, Rob Hulls (centre), presented the 2003 Workplace Excellence Awards to Air International representatives Bill Bardsley, Plant Manager (left) and Tevita Katoanga (right), Shop Steward.

32 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Performance measures Unit of measure 2003–04 2003–04 Target Performance

Industrial Relations Services Quantity Industrial Roundtables and Forums number 5 31 Delivery of Partnership at Work Programs number 45 53 Quality Client satisfaction with delivery of programs for workplace innovation, cooperative workplaces and Partners at Work and Better Work and Family Balance per cent 90 98 Client satisfaction with the information, education and advice services provided to meet the needs of Victorian employers, employees and their representatives per cent 90 90 Timeliness Key advice and industrial relations services especially in relation to investment attraction and public sector employment areas delivered within agreed timeframes per cent 100 100 Education and communication strategies deployed within agreed timeframes per cent 100 100

Industrial Relations Policy Quality Ministerial satisfaction with quality and timeliness of policy and advice provided by IRV per cent 100 90 Victoria represented in major industrial relations cases per cent 100 100 Client satisfaction with the quality of policy advice provided to Government Agencies by IRV per cent 85 100 Timeliness Industrial Relations briefings provided within agreed timeframes per cent 100 100 Public sector industrial relations policy advice provided within agreed timeframes per cent 100 100

1 Targets for this measure were not pursued. The Strategic Industry Group which has primary responsibility for this measure was disbanded in December 2003 as part of the IRV restructure.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 33 Tourism Victoria Output Group

Victoria’s tourism industry delivers substantial employment slight (0.5 per cent) decrease in visitors in the year to March and economic benefits to the state. Tourism Victoria 2004 compared with the previous year. Victoria achieved a continues to provide strong leadership in attracting increasing 24.2 per cent market share of all domestic visitors. numbers of international visitors to Victoria, conducting successful marketing campaigns for Melbourne and regional The majority (12.8 million) of these visitors were Victorians Victoria, enhancing Victoria’s reputation as Australia’s major holidaying in Victoria and the remainder were from interstate. events capital and ensuring the 2006 Commonwealth Games Intrastate travel comprises nearly three-quarters (71.3 per delivers significant tourism opportunities and benefits. cent) of all domestic travel in Victoria.

Output group description Melbourne Marketing The Melbourne. You’ll Never Want to Leave black and white Tourism Victoria aims to maximise employment and the television, cinema and magazine campaign, which was longer term economic benefits of tourism to Victoria by launched in 2001, continued to reinforce the brand developing and marketing the state as a competitive tourist perceptions of Melbourne as a classically stylish, destination for both domestic and international tourists, as sophisticated and romantic city. well as providing product development, leadership and coordination. The 60-second television advertisement continued to run in the key interstate markets of Sydney, Brisbane and Canberra Tourism Victoria is a State Government statutory authority from May to June 2004. Consumers in Adelaide saw the and produces its own annual report. This is available online at advertisement for the first time as part of a specific media www.tourismvictoria.com.au or by calling (03) 9653 9830. schedule and responded positively. The 60-second cinema advertisement also ran in Sydney, Brisbane, Canberra and Department objectives to which the output group Adelaide over this period to support the television campaign. contributes – Encourage and support the development of innovative, Tourism Victoria undertook four seasonal campaigns to internationally integrated and competitive industries and position Melbourne as a desirable holiday destination in businesses for Victoria autumn, winter, spring and summer. Each of the four campaigns, Melbourne in Winter, Melbourne in Spring, – Work to create a competitive business environment and Melbourne in Summer and Melbourne in Autumn, was built capabilities for an innovation economy around the city’s major events, unique seasonal experiences – Strengthen Victoria’s regional economies, infrastructure and and each involved partnership with industry. communities – Encourage and support the contribution of tourism to A new guide for visitors, The Insider’s Guide to Melbourne, Victoria’s economic and social development. was produced by Tourism Victoria as part of the Melbourne marketing strategy.

Growing Victoria Together objectives to which the Regional Marketing output group contributes The financial year saw the continuation of the latest phase of – More jobs and thriving, innovative industries across Victoria Tourism Victoria’s award winning Jigsaw advertising – Growing and linking all of Victoria campaign, which was launched in June 2003 with a – Building cohesive communities and reducing inequalities. television advertising campaign for the Yarra Valley. Funded by the Community Support Fund, this was an Outputs delivered integral part of the State Government’s $10 million Regional Visitor numbers Renewal Program. This will run over four years to 2006 and Victoria performed well in 2003–04, attracting an increasing seeks to generate economic and community renewal in number of international visitors to Australia. The International regional Victoria. The key objective is to increase awareness Visitor Survey for the year ending March 2004 showed that of and visitation to key regional Victorian destinations, villages Victoria’s key competitors, New South Wales and and attractions, as identified in Victoria’s Tourism Industry Queensland, recorded a decrease in overseas visitor Strategic Plan 2002 – 2006. numbers, while Victoria recorded an increase. The campaign consists of two advertising streams, Victoria attracted 1.2 million of the 4.5 million international Melbourne Surrounds – focusing on destinations close to the tourists (aged 15 years and over) who visited Australia in the city which support Melbourne’s key brand attributes of style, year ending March 2004. Visitors to Victoria increased by 0.8 sophistication and romance – and Touring – encouraging per cent since the year ending March 2003, giving Victoria a visitors to travel independently around Victoria’s regions 27.4 per cent market share of all international visitors. Over experiencing individual destinations, villages and attractions. the same period, international visitor numbers to New South Wales and Queensland decreased by 1.3 and 0.8 per cent The Yarra Valley campaign was the first of four regional respectively. destination campaigns to be launched. It seeks to position the destination as a stylish food and wine destination on Victoria also outperformed its rival states in the growth of Melbourne’s doorstep. visitor nights. International visitors spent 28.8 million nights in Victoria for the year ending March 2004, an increase of 26.3 The National Visitor Survey for the year ending December per cent over the previous period. Victoria’s market share of 2003 revealed that 48,000 additional visitors travelled to the international visitor nights increased to 23.0 per cent. Yarra Valley during the period. In addition, the 2004 Brand Nationally, Victoria, with 17.9 million Australian visitors, had a Health survey indicated that prompted awareness of the

34 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Minister for Tourism, John Pandazopoulos with award winners from Johanna Seaside Cottages, Yarra Valley increased by 3.4 percentage points to 84.5 per Joy Evans (left) and cent in 2004. Sharee Robbins, at the 2003 Melbourne Due to the success of the campaign, the Yarra Valley Airport Victorian television campaign also screened in Melbourne from April Tourism Awards. to May 2004, with the view to improving Melburnians’ awareness of the Yarra Valley and encouraging Victorians to visit the region with their visiting friends and relatives.

The Goldfields touring campaign was launched in July 2003. This campaign featured six print advertisements which Case Study encouraged visitors to discover the region’s treasures: Tourism Victoria pulls a rabbit out of the hat in architecture, bed and breakfast accommodations, bakeries, Yarra Valley Campaign art galleries, wineries and antiques. The destinations and villages promoted through the campaign included Ballarat, Flanagan and Allen’s pre-WWII song ‘Run Rabbit Run’ almost Bendigo, Castlemaine, Maldon, Clunes, Avoca, runs away with the new Yarra Valley tourism marketing campaign. Maryborough, Dunolly and Creswick. A part of the award winning Jigsaw ‘You’ll Love Every Piece Of Victoria’ strategy, the song is upbeat and quirky enough to make The North East/Great Alpine Road campaign was launched its mark on everyone from war baby to baby boomer to dot-com kids. Once you hear it, you simply have to sing along – a shrewd in October 2003. This campaign was launched as part of the and magic choice on the part of Tourism Victoria for Melbourne’s state’s Bushfire Recovery Program, and highlighted the key Yarra Valley ‘You’ll Never Want to Leave’ campaign. villages, experiences and attractions along the Great Alpine Road, which winds through the North East and East This is the first of a series of campaigns funded through the Gippsland areas of Victoria. The campaign encouraged Community Support Fund, designed to raise awareness of key visitors to discover the key strengths of the region through regional destinations in the state. The Yarra Valley is introduced as Victoria’s premier food and wine region. The strategy aims to raise three executions – food and wine, heritage and adventure, interest in the Yarra Valley, increase the number of visitors to this set against a backdrop of breathtaking mountain scenery part of the state, charm across the border those venturing to with the tagline You Can Always Blame the Alpine Air. Victoria from New South Wales and Queensland in particular, and increase the amount of money they all spend in the region. The Great Ocean Road Touring Campaign was launched in February 2004. The campaign carried the tagline Visitors Combining television, cinema, magazine and newspaper Have a Habit of Leaving Things Behind and comprised five advertising, the campaign ran in Sydney, Brisbane and Canberra throughout the financial year. The television commercial won nine executions – Apollo Bay, Port Fairy, the Otway Ranges, the 2003 Australian Writers’ and Art Directors Association Awards. Bay of Martyrs and Gibson’s Steps. The campaign urged visitors to leave behind the stresses of everyday life by The National Visitor Survey for the year ending December 2003, relaxing and revitalising along the Great Ocean Road. The shows that awareness of the region had grown, with an extra campaign also encouraged visitors to spend more time in 48,000 overnight visitors coming in from New South Wales – a 78 the region by staying in the villages and towns and exploring per cent increase on the previous year. In addition, the 2004 Brand Health survey indicates that prompted awareness of the the hinterland. Yarra Valley increased by 3.4 percentage points to 84.5 per cent. Regional Partnership Program The advertisement also scored in the top 5 per cent of all As part of the Regional Partnership Program, three-year advertisements tested for effectiveness by independent research strategic marketing plans, including one-year marketing action company Advertising Development Solutions. plans, were completed for each region. The plans reflected The television advertisement also screened in Melbourne from April consumer needs, with greater emphasis on key destinations, to May 2004, with the aim to improving Melburnians’ awareness of special interest products and touring. General Service the Yarra Valley and encouraging Victorians to visit the region with Agreements were established between Tourism Victoria and their visiting friends and relatives. Incidentally, sales of the song each campaign committee – a move that embraces the move ‘Run Rabbit Run’, written in 1939, have also increased. towards a more collaborative working relationship.

Touring plans were implemented for the Great Southern Touring Route, the Sydney–Melbourne Coastal Drive and the Great Alpine Road. Strategic discussions were held with interstate agencies to consider cross border touring opportunities for both domestic and international travellers.

The 12 campaign committees contributed more than $2 million to cooperative marketing activities. The Great Ocean Road, Legends, Wine & High Country and Goldfields committees raised significant industry funds. The Yarra Valley advertising campaign won nine Australian Writers and Art Directors Drought Relief Association Awards. Julie Bishop, Manager The Victorian Government announced a $750,000 Drought Brand Strategy and Services; Don Richter, Relief Package for the tourism industry in October 2003, of Director of Marketing, and Susan Pedley, which $500,000 was allocated to marketing and the Advertising Services Manager celebrated remaining $250,000 to business development. Working with the success. the relevant regional campaign committees, Tourism Victoria

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 35 Tourism Victoria Output Group continued

developed a range of marketing initiatives to boost tourism in The Minister for Tourism also attended Australia Week in Los the Murray region, Lake Eildon, Goldfields, Grampians, North Angeles in early 2004. East Victoria and the Macedon Ranges. More than 1000 international travel agents came to Victoria Australian Tourism Exchange 2004 on Tourism Victoria’s travel trade familiarisations program on From 29 May – 4 June Victoria hosted the Australian Tourism structured activities in 2003–04, with the Victorian tourism Exchange (ATE) for the second consecutive year. ATE is the industry providing more than $680,860 worth of free or world’s third largest travel trade show of its kind and the discounted services to this sector. largest in the Southern Hemisphere. It is Australia’s premier international travel industry event. Tourism Victoria organised and led Victorian industry participation in numerous trade and consumer shows, ATE provided a forum for Australian delegates to showcase including OzTalk in the US and New Zealand, which was their products, meet overseas contacts and negotiate deals, attended by the Minister for Tourism. and also provided the international travel trade with an opportunity to experience Australia first-hand. Brand Health The annual Brand Health Survey, conducted for Tourism ATE brought together about 1900 tourism operators from Victoria by Roy Morgan Research, tracks consumer Australia, including 600 of the world’s top tourism buyers perceptions of key Australian capital cities. from 40 countries. More than 90 representatives of international and domestic media attended the forum. Key findings from the 2004 survey were: – An increase in the proportion of people identifying Victoria Just under 300 international delegates participated in ‘as a great place to tour by car’ (up 4 per cent to 24 per familiarisations either immediately before or after the event. cent). Victoria is the leading state for this attribute and the Most Victorian product regions featured in one or more of the research indicates the success of regional touring familiarisation itineraries. campaigns for the Great Alpine Road, Goldfields and Great Ocean Road ATE injects approximately $10 million into the local economy, with approximately 13,000 visitor nights in Melbourne over – Unprompted awareness of the Great Ocean Road and the week of the event. In the longer term, ATE positions Ballarat increased from the 2003 to the 2004 surveys, Victoria and Australia as leading holiday destinations and again indicating the success of regional touring campaigns assists tourism growth. – Prompted awareness of the Yarra Valley increased by 3.4 per cent to 84.5 per cent, indicating the success of the Media and publicity Yarra Valley television and cinema advertising campaign Of critical importance to Tourism Victoria’s marketing success – Melbourne remains the leading Australian city for style, is a strategic publicity program that secures significant romance, theatre, shopping, food experiences, world class additional coverage on television, radio and print media. This restaurants, cafes, bars and nightclubs. is particularly important in international markets where the cost of advertising is often prohibitive. Commonwealth Games Tourism Marketing Strategy During 2003–04, Tourism Victoria undertook a range of In 2003–04, Tourism Victoria generated more than $291 tourism marketing activities associated with attracting million of international publicity, well above the target for the international, interstate and intrastate visits to the Melbourne year. The organisation generated $82.75 million worth of 2006 Commonwealth Games. These included overseeing a editorial coverage in key Australian publications and television significant number of familiarisations to Victoria by relevant programs through familiarisations programs, public relations international travel trade and media, as well as assisting the campaigns and media activities. Melbourne 2006 Commonwealth Games Corporation with the comprehensive review of the Games tourism marketing plan. Much of the publicity was the result of hosting media on structured familiarisations. During the year, 545 international Events media and 280 domestic media were hosted. These visits Tourism Victoria works with organisers of major events to were generously supported by the Victorian tourism industry, ensure that they continue to improve tourism marketing and which provided free or discounted services including the visitor experience. accommodation, meals and touring and activities worth more than $470,000. The State Government allocated significant funds to support the Australian Open Tennis Championships’ Asia Pacific An integral component of international marketing activities is marketing strategy. This will be undertaken by Tennis educating the international travel trade about Victoria and its Australia with the support of Tourism Victoria. A attractions, to raise awareness of Victoria as a premier tourist comprehensive program of activities was undertaken, destination and to increase the amount of Victorian tourism including tennis clinics in Thailand, Singapore and Korea and products featured in travel wholesale programs and itineraries. the ‘ballkids’ program was conducted in Singapore and Korea. The 2004 Championships, which continue to promote Minister for Tourism, John Pandazopoulos led a trade mission Melbourne and Victoria as tourism destinations, attracted a of Victorian product to four new ADS (Approved Destination record global television coverage. Status) regions in China in April. This was the first time that any Australian tourism products had met with key Chinese travel Tourism Victoria also provided significant assistance to the City industry representatives in these regions and will help to make it of Ballarat for the annual Ballarat Begonia Festival, a major easier for Chinese residents to get visas for travel to Australia. regional Victorian event. Tourism Victoria and the City of

36 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Ballarat, in an effort to reposition the event, co-funded a study Case Study to determine the future direction and financial viability of the Tourism Victoria negotiation boosts airline jobs Festival. The study led to a strategy that delivered a successful, financially viable, relevant and sustainable event which met the needs of key stakeholders, while maintaining the equity which DIIRD’s leadership of air services negotiations, in concert with the Festival has established over the past 51 years. Melbourne Airport, delivered record outcomes and significant long-term benefits for Victoria in 2003–04. Product An investment bid team from DIIRD secured Jetstar’s head As a marketing-focused organisation, Tourism Victoria is office for Victoria. Jetstar’s decision will generate more than charged with developing new markets in the state. To that 1000 full-time jobs and provides Victoria with a clear end, Victoria was the first state to develop a golf tourism opportunity to develop our domestic leisure market ahead of strategy. The Golf Tourism Action Plan 2003–2006, which other states. aims to build on Victoria’s reputation as one of the leading Tourism Victoria, in conjunction with Melbourne Airport, played golfing destinations in Australia, was launched in September a decisive role in maintaining and attracting new services during 2003. A detailed implementation plan has also been the year. The Division played a key role in several strategic developed, and a brochure, Golfing in Victoria, has been outcomes for Victoria with long-term benefits. Key actions produced for a targeted interstate and international audience. included the development of commercial negotiations directly with carriers. This includes providing assistance with the Victoria outperformed key competitor states in the carrier’s respective national aviation authorities. Through this Tourism Victoria secured two new airlines for Victoria. China backpacker market in the year to December 2003. While Eastern Airlines commenced twice weekly Melbourne services backpacker numbers remained stable at 208,000 (a market in December 2003 and this service increased to three services share of 45 per cent), nights increased by 50 per cent to total a week from April 2004. Tourism Victoria also entered into a 6.7 million. Backpackers stayed in Victoria for an average of cooperative marketing agreement with China Eastern Airlines, 32.2 nights, ahead of Queensland at 27 nights and New making the State Government the first in Australia to enter into South Wales at 25.9 nights. Backpackvictoria.com, the call to such a program with a national Chinese airline. action for all marketing, recorded an impressive 140 per cent A successful conclusion was also reached in negotiations to increase in visitors. allow Qatar Airways to commence its Australian services to Melbourne in the 2004-05 financial year. Melbourne welcomed two significant theatre productions during 2003–04. We Will Rock You, the musical by Ben Elton, Tourism Victoria’s assistance on bilateral air services agreements featuring the music of rock band Queen, opened in August secured significant capacity increases for Emirates Airlines. 2003. The show played to an audience of more than 308,000 Emirates has increased its service from seven to 14 flights per people during its seven months at the Regent Theatre. week and new services on the Melbourne-Auckland and Melbourne-Christchurch route have been successfully agreed. Tourism Victoria undertook cooperative marketing campaigns In a similar approach, Tourism Victoria also secured capacity with industry partners in the key source markets of Sydney, increases by Singapore Airlines, Malaysia Airlines and Cathay Brisbane, Adelaide and New Zealand. The show also formed Pacific, China Eastern, Air China and China Southern Airlines. a significant part of the ‘Melbourne in Winter’ campaign. These negotiations to date have generated an additional The Mel Brooks’ musical, The Producers, premiered in 7800 seats per week into Melbourne. Tourism Victoria is Melbourne in April 2004 at the Princess Theatre. The show, also confident that continued negotiations will lead to further increases. anticipated to play for up to 12 months, is the first theatre production to receive funding through the Victorian Major Events Company and was supported by the Minister for Tourism. Significant media and marketing campaigns began towards the end of the financial year to encourage interstate and New Zealand visitors to see the show.

Aviation Tourism Victoria jointly led the State Government’s investment bid project team to secure Jetstar Airways’ head office for Victoria. Jetstar’s decision to base in Melbourne has provided Victoria with a one-off opportunity to develop the domestic leisure market ahead of other states. After fruitful negotiations to increase air services at Melbourne Airport were Paul A major outcome of the Jetstar negotiations was the airline’s Dorai Raj, Manager Victoria and Tasmania, decision to fly from Tullamarine and Avalon, making Melbourne Singapore Airlines; Michael Tan, Regional Vice President, South West Pacific, the first Australian city to get a second major domestic airport. Singapore Airlines; Peter Keage, General This decision was actively supported by Linfox, owner of Manager Investment and Aviation, Tourism Avalon Airport, and the City of Geelong. Tourism Victoria is Victoria and Mak Wa, Senior Vice President, developing a strategy to maximise this tourism opportunity for Planning, Singapore Airlines. the Geelong and Great Ocean Road regions.

During the year Tourism Victoria played a key role in strategic negotiations with international airlines. Two new carriers, China Eastern Airlines and Qatar Airways, committed services to Melbourne. China Eastern began flights to Melbourne in December 2003. Qatar will commence its

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 37 Tourism Victoria Output Group continued

flights during the 2004–05 financial year. Professionalism and Excellence During 2003–04 work began on a Professionalism and Capacity increases were secured for Emirates Airlines (seven Excellence Strategy in consultation with the tourism industry. to 14 services per week and new flights Melbourne-Auckland This aims to raise standards across the industry and to and Melbourne-Christchurch); China Eastern Airlines; ensure that Victoria develops customer service to a standard Singapore Airlines; Malaysia Airlines and Cathay Pacific. where it becomes a competitive advantage.

Together with Melbourne Airport, Tourism Victoria was Regional Tourism Development Plans actively involved in negotiations leading to an additional 7800 The major emphasis for 2003–04 was the drafting of seats per week to Melbourne over the year. A number of Regional Tourism Development Plans for seven regional ongoing negotiations will lead to further increases. zones: Great Ocean Road, Grampians, Goldfields, Gippsland, Murray, North East Victoria and Melbourne Minister for Tourism, John Pandazopoulos engaged in Surrounds. These zones were used for strategic planning negotiations and joined the inaugural China Eastern Airlines and industry development purposes. flight into Melbourne. This process has involved extensive and ongoing industry Investment consultation and will lead to the release of the plans in In 2003–04 Tourism Victoria facilitated private and public 2004–05. sector projects exceeding $400 million, excluding support for the State Government commitment for a new 5000 seat Industry Leadership and Liaison convention centre. Tourism Victoria has continued to play a significant role in industry leadership through interaction with the tourism Tourism Online industry. In 2003–04, there was strong industry attendance A record number of visitors came to Tourism Victoria and positive feedback from conferences, seminars and consumer websites during 2003–04. The total number workshops organised, assisted or facilitated by Tourism increased by 98.6 per cent to 2.49 million visitors. The Victoria. In addition, Tourism Victoria contributed to number of web pages delivered to visitors increased by 47.9 numerous tourism industry conferences around Australia. per cent to 19.54 million. This is an outstanding result, driven by integrated marketing campaigns, high quality content and Tourism Victoria has continued to provide leadership to the search engine optimisation. regional industry, together with the Country Victoria Tourism Council,14 to encourage local government support for tourism Tourism Victoria ensures that all of its campaigns have an and to improve industry professionalism and standards. integral online component. During 2003–04 significant improvements were made to raise the profile of visitvictoria.com Melbourne Convention Centre Development on internet search engines. In July 2002, 28 per cent of all The Bracks Government’s Economic Statement Victoria: visitors to the consumer sites were referred by search engines. Leading the Way outlined the Government’s $367 million By June 2004, this figure had risen to 80 per cent. commitment to build a new Convention Centre adjacent to the Melbourne Exhibition Centre. Victorian Tourism Awards The key role of the Victorian Tourism Awards is to recognise The redevelopment will include a 5000 seat convention centre and promote excellence. Tourism Victoria’s commitment to and development of the surrounding Southbank precinct. the program has been reflected in a three-year strategy, developed in conjunction with industry, designed to raise The world class Centre will enhance Victoria’s reputation as a the awards as a professionalism and business development global destination of choice for business events. Significant tool. A broad range of initiatives resulted, including economic benefits will also accrue to the state, including an information seminars (12 delivered during the financial year) estimated increase in Gross State Product of $197 million and a full day workshop.The Melbourne Airport 2003 per annum and 2600 new full-time jobs over the 25 year life Victorian Tourism Awards attracted 125 entrants. Three- of the project. time winners, Postcards and the Queenscliff Music Festival were inducted into the Hall of Fame. In June 2004, the Victoria Government announced the preferred operational delivery model for the Project as a Grampians Adventure Services, Yering Station Vineyards, Partnerships Victoria (PV) project, whereby the operation and the Queenscliff Music Festival and Ballarat Goldfields Holiday marketing of the new Convention Centre and the existing Park went on to win at the Australian Tourism Awards. Exhibition Centre will continue to be undertaken by the state, via the Melbourne Convention and Exhibition Trust (MCET). It is planned that the private sector will design, construct, Minister for Tourism, finance and maintain the new Convention Centre and John Pandazopoulos undertake development of surplus land within the precinct. with Victorian tourism operators on the China Tourism Expressions of Interest for the redevelopment of the Roadshow. Convention Centre will be invited later this year and construction of the new facility will be completed in 2008.

14 In late 2003–2004, the Country Victoria Tourism Council and the Victorian Tourism Operators Association merged to form Tourism Alliance Victoria.

38 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Performance measures Unit of measure 2003–04 2003–04 Target Performance

Tourism Marketing and Event Facilitation Quantity Tourism Victoria international marketing expenditure as proportion of total campaign expenditure ratio 1:3 1:81 Visitor nights (Domestic) number (million) 54–56m 55.6m Visitor expenditure (Domestic) number ($billion) $6.0–6.2b $6.4b Visitor nights (International) number (million) 18–22m 28.8m Number of visitors (International) number (million) 1.0–1.4m 1.2m Visitor Expenditure (International) number ($billion) $1.4–1.7b $2.2b Visitor nights to Regional Victoria (Domestic) number (million) 35.5–37.5m 37.1m Visitvictoria.com annual visitors to site number (‘000) 1000 2,4902 Visitvictoria.com monthly page impressions delivered number (‘000) 11,000 19,5403 Value of earned ink generated: Domestic $ million $40–60m $82.75m Value of earned ink generated: International $ million $200–225m $291m Non-hallmark events assisted number 30–35 32 Quality Awareness of advertising about Victoria – Victoria per cent 8–12 15.80 – New South Wales per cent 18–22 19.10 – South Australia per cent 10–16 15.2 – Queensland per cent 18–22 23.9

Tourism Industry and Infrastructure Development Quantity Investment projects facilitated $ million $200–250m $350m Number of consultative industry forums, seminars/workshops conducted $ million $30–40m $47m

1 Target exceeded due to Tourism Victoria's participation in several major 2 This outstanding result is driven by well integrated marketing campaigns, campaigns in North America. This included the 'Have you Ever' campaign, superior levels of high quality content and search engine optimisation. the largest ever Australian campaign in the North American market, as well 3 Target exceeded due to excellent publicity being generated on Melbourne, as the National Geographic and Hawaiian Air campaigns. It must be noted regional campaigns, events, festivals and key product strengths. that this is not the final figure for 2003–04 but an estimate based on confirmed campaign activity as at 8 July 2004.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 39 Corporate Services

The Corporate Services Division provides the necessary A major priority for the HR Branch during the year was to support and internal infrastructure to facilitate the assist with the implementation of the new Victorian Public Department’s achievement of its goals. Corporate Services Service Career Structure. This involved the translation of all consists of four branches: Knowledge Management, Human staff to the new classification structure and the development Resources, Corporate Governance and Administration, and of a Performance Development and Progression system. A Finance Services. Learning and Development Framework was developed to support the Career Structure, which incorporates a range of For Corporate Services the 2003–04 financial year has been learning programs and strategies. busy and challenging. It was a period of consolidation into a new structure for the Corporate Services Division and a An Employee Self Service (ESS) system was developed and revised structure for the Department. a roll-out was commenced across the Department. The ESS system is an internet-based system that enables staff and Knowledge Management managers to initiate, monitor and approve a range of online During 2003–04, the Knowledge Management Branch business processes, requests and actions. commenced implementation of the Department’s Web Strategy. It also implemented a range of knowledge There was also a range of activities falling under the management initiatives and updated the Department’s Workplace Diversity Strategy and more details about these information technology infrastructure. are provided in the Appendices on page 78.

The Website Strategy aims to make it easier to find and Corporate Governance and Administration access online services and to reduce the cost of creating and Over the past year, the priorities for the Corporate operating online services. It proposes a consolidation of Governance and Administration Branch included the existing Web sites which are designed to be more customer provision of services in the areas of probity, risk, audit, focused. This common direction for online service delivery legal, purchasing, fleet, property, environmental performance, aligns with the proposed Website Management Framework communications, ministerial support and management of the for the creation, operation and retirement of websites and will Freedom of Information, Whistleblowers Protection and have a widespread impact on the approach to online services Information Privacy functions. within the Department. During the year, new management reporting was introduced, Upgrades were made to information and communications systems were streamlined through process improvement technology infrastructure, including the update of servers to initiatives, and business continuity capabilities were further Windows 2000 and desktop computers to Windows XP, re-evaluated and strengthened. Reviews were undertaken of migration of the DIIRD Regional Network to broadband and the model for liaison and support to Ministers’ offices and of purchase of Voice over Internet Protocol (VoIP) capable the Department’s purchasing policies and procedures. switches as a part of the LAN Transport Upgrade Project for the Telecommunications Purchasing and Management The Department continued to develop its risk management Strategy (TPAMS). program. This was achieved through the integration of risk identification, analysis and planning activities into the Human Resources business planning processes and into a number of significant Human Resources (HR) Branch is responsible for aligning projects. These projects included the Synchrotron, the people management policies, programs and practices, with Melbourne Convention Centre Redevelopment project and organisational needs and priorities. The Department has the Film and Television Studios development project. developed a ‘People Framework’ to support its future directions. The Framework demonstrates five enduring and The Corporate Communications Unit undertook a linked guiding principles for how the organisation can best rationalisation process for media monitoring, which has achieve a culture of working together. achieved sizeable cost savings. The Department implemented strategies to increase awareness and use of The ‘People Framework’ defines the objectives that will assist advertising for multicultural communities, including advertising the building of our organisational capability to deliver in Your Guide to Victorian Government Services, issued in 12 Departmental goals. Aligned to each objective is a range of languages and inserted into 28 culturally and linguistically high level strategies to be implemented over the next three diverse (CALD) newspapers. years. A number of these have been implemented, including Phases 2 and 3 of the Executive Leadership and As a result of the machinery of government changes, Management Development Program: a 360 degree the Department had been operating at a number of city diagnostic process and the development of an Executive locations. During 2003–04, these were successfully Leadership and Management resource kit. The promotion of consolidated at the Department’s Head Office at the Department’s Work/Life Balance initiatives also continued 55 Collins Street. over the past financial year.

40 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 The Department met all contractual milestones in 2003–04 in relation to its planned move to the Southern Cross building in 2006.

Through the application of sustainable development principles, the Department continued to build on its earlier performance by monitoring and promoting sound environmental practices to staff. Planning has commenced to ensure that opportunities to achieve benchmark environmental performance derived from the move in 2006 are maximised.

Finance Services Finance Services provides the Department and its senior management with a range of financial management services. These include financial accounting and reporting, managing and forecasting cash balances, centralised payments and receipts, management of appropriations, and reviewing and analysing performance.

Throughout the year, DIIRD has continued with its program of achieving benchmark financial management through implementation of the following measures: – Financial Management Compliance Framework (FMCF) – Rollout of the Government’s new Departmental Funding Model – Enhanced purchasing and commitment controls – Continued focus on providing consistent and timely reporting by all divisions of the Department – Introduction of new reporting tools for executives and staff – An independent review to reposition Finance Services within the Department – Relocation of Finance Services to the main department building at 55 Collins Street, Melbourne.

These measures have significantly improved the level of compliance, accountability and accessibility to financial information throughout all areas of the Department.

The Department’s Recognition and Reward program presentation in December 2003 included accolades for high performing teams such as that working on the Toyota Technology Centre Asia Pacific project. With the Secretary, Peter Harmsworth (at left), are Tim Dillon, Garry Clemence, Jane Ward, David Wright, Peter Collens, Joanne Wandel and Barry Moncur. Kevin Knowles and Ian Munro were also part of the team. 03 Financial Report Contents

Page Explanatory Notes 43 Statement of financial performance 44 Statement of financial position 45 Statement of cash flows 46 Notes to the financial statements 47 1. Summary of significant accounting policies 47 2. Output Groups of the Department 51 3. Revenue 56 4. Summary of compliance with Annual Parliamentary Appropriations 57 5. Result from ordinary activities 58 6. Cash Assets 60 7. Receivables 61 8. Property, plant and equipment 61 9. Interest bearing liabilities 62 10. Payables 62 11. Provisions 63 12. Equity and movements in equity 63 13. Financial instruments 64 14. Ministers and Accountable Officers 66 15. Remuneration of executives 67 16. Remuneration of auditors 67 17. Contingent liabilities and contingent assets 67 18. Commitments for expenditure 68 19. Employee entitlements 69 20. Administered items 71 21. Ex-Gratia payments 72 22. Reconciliation of result from ordinary activities to net cash inflow from operating activities 72 23. Impacts of adopting AASB equivalents to IASB standards 73 24. Restructuring of administrative arrangements 74 25. Non-cash financing and investing activities 75 Accountable Officer’s declaration 76 Auditor-General’s Report 77

Explanatory Notes

This financial report covers Department of Innovation, Industry and Regional Development and includes the operations of both Regional Development Victoria, established under the Regional Development Victoria Act 2002 and the Office of the Small Business Commissioner created under the Small Business Commissioner Act 2003. In addition, the financial operations of Tourism Victoria are not included in this report as this statutory body publishes its own financial report.

The Department of Innovation, Industry and Regional Development is a Government Department of the State of Victoria. The Department was established under the Public Sector Management and Employment Act 1998. Its principal address is:

Department of Innovation, Industry and Regional Development 55 Collins Street Melbourne VIC 3000

A description of the nature of the Department’s operations and its principal activities is included in the report of operations on pages 5 to 41.

For queries in relation to our reporting please call 9651 9999 or e-mail questions @www.iird.vic.gov.au

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 43 Statement of Financial Performances For the year ended 30 June 2004

Notes 2004 2003 $’000 $’000

Revenue from ordinary activities Output appropriations 3(a) 273,447 269,889 Regional Infrastructure Development Fund Appropriations 3(a) 20,000 123,579 Other revenue and revenue from other parties 3(a) 3,936 12,013 Special appropriations 3(a) 150 40 Total Revenue 297,533 405,521

Expenses from ordinary activities Employee entitlements 5(a) (50,693) (56,182) Depreciation and amortisation 5(a) (2,881) (3,643) Grants and other payments 5(c) (210,643) (201,059) Capital asset charge (1,786) (1,166) Supplies and services 5(b) (45,192) (45,902) Other expenses from ordinary activities (165) (240) Total Expenses (311,360) (308,192)

Net result for the reporting period 12(c) (13,827) 97,329 Net increase in asset revaluation reserve 12(a) 381 - Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner on behalf of the Crown (13,446) 97,329

The above statement of financial performance should be read in conjunction with the accompanying notes.

44 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Statement of Financial Position As at 30 June 2004

Notes 2004 2003 $’000 $’000

Current assets Cash assets 1(q), 6, 13 109,152 126,196 Receivables 1(f), 7, 13 33,369 17,152 Prepayments 694 2,267 Total current assets 143,215 145,615

Non-current assets Property, Plant and Equipment 8 67,512 16,592 Total non-current assets 67,512 16,592 Total assets 210,727 162,207

Current liabilities Payables 1(m), 10, 13 18,993 7,776 Interest Bearing Liabilities 9, 13 51 - Provisions 11 5,864 4,977 Total current liabilities 24,908 12,753

Non-current liabilities Interest Bearing Liabilities 9, 13 327 - Provisions 11 10,102 9,446 Total non-current liabilities 10,429 9,446

Total liabilities 35,337 22,199

Net assets 175,390 140,008

Equity Contributed Capital 12(b) 68,935 20,107 Reserves 12(a) 381 - Accumulated surplus 12(c) 106,074 119,901 Total equity 12(d) 175,390 140,008

Contingent Liabilities 17 Commitments for Expenditure 18

The above statement of financial position should be read in conjunction with the accompanying notes.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 45 Statement of Cash Flows For the year ended 30 June 2004

Notes 2004 2003 $’000 $’000

Cash flows from operating activities Receipts from Government 322,682 487,593 Receipts from other entities 7,278 29,952 Payments to suppliers, grantees and employees (343,605) (417,071) Net GST Recovered from the ATO (1,347) (3,242) (14,992) 97,232

Capital asset charge (1,786) (1,166) Net cash inflow/(outflow) from operating activities 22 (16,778) 96,066

Cash flows from investing activities Payments for property, plant and equipment (42,404) (12,794) Net cash outflow from investing activities (42,404) (12,794)

Cash flows from financing activities Proceeds from capital contribution by State Government 64,829 26,220 Transfers of capital contributions by State Government (22,695) (14,469) Net cash inflow from financing activities 42,134 11,751

Net increase/(decrease) in cash held (17,048) 95,023 Cash at the beginning of the financial year 126,196 31,189 Effect of exchange rate charges on balances held in foreign currencies at the beginning of the financial year 4 (16) Cash at the end of the financial year 6 109,152 126,196

Non-cash financing and investing activities 25

The above statement of cash flows should be read in conjunction with the accompanying notes.

46 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Notes to the Financial Statements 30 June 2004

Note 1. Summary of significant accounting policies This general purpose financial report has been prepared in accordance with the Financial Management Act 1994, Model Financial Report for Victorian Government Departments, Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board, and Urgent Issues Group Consensus Views.

It is prepared on an accrual accounting basis in accordance with the historical cost convention, except for certain assets and liabilities which, as noted, are at valuation. The accounting policies adopted, and the classification and presentation of items, are consistent with those of the previous year, except where a change is required to comply with an Australian Accounting Standard or Urgent Issues Group Consensus View, or an alternative accounting policy permitted by an Australian accounting standard is adopted to improve the relevance and reliability of the financial report. Where practicable, comparative amounts are presented and classified on a basis consistent with the current year.

(a) Reporting entity The financial statements include all the controlled activities of the Department of Innovation, Industry and Regional Development. The Department has no controlled entities, however, the financial statements of Regional Development Victoria established under the Regional Development Victoria Act 2002 and the Office of the Small Business Commissioner created under the Office of the Small Business Commissioner Act 2003 have been included in the Reporting entity. The financial activities of Tourism Victoria are not included in the Department’s reporting entity but are reported separately.

Administered resources The Department administers but does not control certain resources on behalf of the Victorian Government. It is accountable for the transactions involving those administered resources, but does not have the discretion to deploy the resources for achievement of the Department’s objectives. For these resources, the Department acts only on behalf of the Victorian Government. Administered resources are accounted for using the accrual basis of accounting.

Transactions and balances relating to these administered resources are not recognised as Departmental revenues, expenses, assets or liabilities, but are disclosed in the applicable output schedules (see note 20).

Other administered activities on behalf of parties external to the Victorian Government The Department of Innovation, Industry and Regional Development has responsibility for transactions and balances relating to administered funds on behalf of third parties external to the Victorian Government. Revenues, expenses, assets and liabilities administered on behalf of third parties are not recognised in these financial statements as they are administered on a fiduciary and custodial basis, and therefore not controlled by the Department.

Non-current assets All non-current assets, including Crown Land, controlled by the Department are reported in the statement of financial position. Non-current assets which the Department administers on behalf of the Victorian Government are reported as administered resources.

(b) Objectives and funding The Department’s key objectives for the current year are to: (i) Encourage and support the development of innovative internationally integrated and competitive industries and businesses for Victoria; (ii) Work to create a competitive business environment and capabilities for an innovation economy; (iii) Strengthen Victoria’s regional economies, infrastructure, and communities; (iv) Support the development of high performing, cooperative and fair workplaces and a highly skilled workforce; and (v) Encourage and support the contribution of tourism to Victoria’s economic and social development.

The Department is predominantly funded by accrual based Parliamentary appropriations for the provision of outputs.

(c) Outputs of the Department Information about the Department’s output groups and the expenses, revenues, assets and liabilities which are reliably attributable to those output groups is set out in the Output Groups Schedule (see note 2). Information about expenses, revenues, assets and liabilities administered by the Department are provided in the schedule of administered expenses and revenues and the schedule of administered assets and liabilities (see note 20).

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 47 Notes to the Financial Statements continued 30 June 2004

Note 1. Summary of significant accounting policies (continued) (d) Acquisitions of assets The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition other than those assets received as part of a restructuring of administrative arrangements (see note 24).

(e) Revenue recognition All revenue received by the Department is generally required to be paid into the Consolidated Fund.

Revenue becomes controlled by the Department when it is appropriated from the Consolidated Fund by the Victorian Parliament and applied to the purpose defined under relevant appropriations acts. Additionally, the Department is permitted under section 29 of the Financial Management Act 1994 to have certain receipts annotated to the annual appropriation. The receipts which form part of a section 29 agreement are received by the Department and paid into the Consolidated Fund as administered revenue (see note 20). At that point, section 29 provides for an equivalent amount to be added to the annual appropriation. Examples of receipts which can form part of a section 29 agreement are receipts from sales of products and services, Commonwealth specific purpose grants and the proceeds from the sale of assets.

Amounts disclosed as revenue are, where applicable, net of returns, allowances, duties and taxes. Revenue is recognised for each of the Department’s major activities as follows:

(i) Output revenue Revenue from the outputs the Department provides to Government is recognised when those outputs have been delivered and the relevant Minister has certified delivery of those outputs in accordance with specified performance criteria.

(ii) Trust Revenue Trust revenue is recognised when it is earned by the Department and any unapplied amounts as at the end of the reporting period are recognised in the Statement of Financial Position until the associated expenditure is incurred.

(iii) Commonwealth grants Grants payable by the Commonwealth Government are recognised as revenue when the Department gains control of the underlying assets. Where grants are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

(iv) Fees and fines As the Department does not gain control over assets arising from fees and fines, no revenue is recognised. The Department collects these amounts on behalf of the Crown. Accordingly, the amounts are disclosed as revenues in the schedule of administered revenues and expenses (see note 20).

All other amounts of revenue over which the Department does not gain control are disclosed as administered revenue in the schedule of administered revenues and expenses (see note 20).

(f) Receivables All debtors are recognised at the amounts receivable as they are due for settlement at their nominal values.

Collectibility of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised when some doubt as to collection exists.

(g) Revaluations of non-current assets Subsequent to initial recognition as assets, non-current physical assets, other than plant and equipment and leasehold improvements, are measured at fair value. Plant and equipment and leasehold improvements are measured at cost. Valuations are made with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at the reporting date. Revaluations are assessed annually and supplemented by independent assessments, at least every three years. Revaluations are conducted in accordance with the Victorian Government policy Revaluation of Non-Current Physical Assets and Australian Accounting Standards.

48 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised immediately as revenue in net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

Revaluation increments and decrements are offset against one another within a class of non-current assets.

(h) Depreciation of property, plant and equipment Depreciation is calculated on a straight line basis to write off the value of each item of property, plant and equipment (excluding land) over its expected useful life to the Department. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for material items.

The expected useful lives for the financial year ending 30 June 2004 are as follows: Buildings 40 years (2003 – 40 years) Plant and Equipment 5 to 10 years (2003 – 5 to 10 years) Leasehold Improvements 8 to 10 years (2003 – 8 to 10 years) Buildings Leasehold 100 years (2003 – n/a ) Motor Vehicles Under Lease 1 to 3 years (2003 – n/a)

Where items of plant and equipment have separately identifiable components which are subject to regular replacement, those components are assigned useful lives distinct from the item of plant and equipment to which they relate.

Consistent with the requirements under the Financial Management Act 1994, the Department’s capitalisation threshold is one thousand dollars (2003 – $1,000).

(i) Leasehold improvements The cost of improvements to or on leasehold properties is amortised over the unexpired period of the lease or the estimated useful life of the improvement to the Department, whichever is the shorter. Leasehold improvements held at the reporting date are being amortised over 8 to 10 years (2003 – 8 to 10 years).

(j) Leased non-current assets A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incident to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the interest expense.

The lease asset is amortised on a straight line basis over the term of the lease, or where it is likely that the Department will obtain ownership of the asset, the expected useful life of the asset to the Department. Lease assets held at the reporting date are being amortised over periods ranging from 1 to 3 years.

Lease payments are allocated between interest (calculated by applying the interest rate implicit in the lease to the outstanding amount of the liability), rental expense and reduction of the liability.

Other operating lease payments are charged to the statement of financial performance in the periods in which they are incurred, as this represents the pattern of benefits derived from the leased assets.

(k) Non-current assets constructed by the Department The cost of non-current assets constructed by the Department includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overhead.

(l) Intangible assets and expenditure carried forward (i) Software Costs associated with the acquisition or development of computer software totalling $0.5 million are capitalised and amortised on a straight line basis over the periods of the expected benefit of 4 years (2003 – 4 years). Costs associated with the acquisition or development of computer software which are less than $0.5 million are charged as expenses in the period in which they are incurred.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 49 Notes to the Financial Statements continued 30 June 2004

Note 1. Summary of significant accounting policies (continued) (l) Intangible assets and expenditure carried forward (continued) (ii) Web site costs Costs in relation to web sites controlled by the Department are charged as expenses in the period in which they are incurred unless they relate to the acquisition of an asset, in which case they are capitalised and amortised over their period of expected benefit. Generally, costs in relation to feasibility studies during the planning phase of a web site, and ongoing costs of maintenance during the operating phase are considered to be expenses. Costs incurred in building or enhancing a web site, to the extent that they represent probable future economic benefits controlled by the Department that can be reliably measured, are capitalised as an asset and amortised over 4 years (2003 – 4 years).

(m) Payables These amounts represent liabilities for goods and services provided to the Department prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(n) Goods and services tax Revenues, expenses and assets are recognised net of GST except where the amount of GST incurred is not recoverable, in which case it is recognised as part of the cost of acquisition of an asset or part of an item of expense. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included as part of receivables or payables in the statement of financial position. The GST component of a receipt or payment is recognised on a net basis in the statement of cash flows in accordance with Accounting Standard AAS 28 Statement of Cash Flows.

(o) Employee benefits (i) Wages, salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in respect of employee’s services up to the reporting date and are measured as the amounts expected to be paid when the liabilities are settled. Liabilities for non- accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

(ii) Long service leave A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees including on-costs up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows.

The current portion of long service leave relates to leave expected to be taken by employees within the next twelve months.

(iii) Superannuation The amount charged to the statement of financial performance in respect of superannuation represents the contributions made by the Department to the superannuation fund (see note 19).

(iv) Employee benefits on-costs Employee benefit on-costs, including payroll tax, are recognised and included in the employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

(p) Borrowing costs Borrowing costs related to finance lease arrangements are recognised as expenses in the period in which they are incurred, except where they are included in the costs of qualifying assets. Borrowing costs incurred by the Department relate to finance leasing arrangements entered into during the year.

(q) Cash For purposes of the statement of cash flows, cash includes short term deposits which are readily convertible to cash on hand and are subject to an insignificant risk of changes in value, net of outstanding cheques yet to be presented by the Department’s suppliers and creditors (see note 6).

(r) Capital asset charge The capital asset charge is imposed by the Department of Treasury and Finance and represents the opportunity cost of capital invested in the non-current physical assets used in the provision of outputs. The charge is calculated on the carrying amount of non-current physical assets (excluding heritage assets).

50 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 (s) Resources provided and received free of charge or for nominal consideration Contributions of resources and resources provided free of charge or for nominal consideration are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

(t) Contributed Capital Consistent with UIG Abstract 38 Contributions by Owners Made to Wholly-Owned Public Sector Entities and the Financial Reporting Direction No. 2 Contributed Capital, appropriations for additions to net assets have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated contributed capital.

(u) Rounding of amounts Amounts in the financial report have been rounded to the nearest thousand dollars, or in other cases, to the nearest dollar.

(v) The Impacts of Adopting AASB Equivalents to IASB standards For interim and annual reporting periods ending on or after 30 June 2004, AASB 1047 Disclosing the Impacts of Adopting AAS Equivalents to International Financial Reporting Standards requires narrative disclosure of how the transition process is being managed and explanation of key differences in accounting policies that are expected to arise from the transition to AASB equivalents to IASB pronouncements (see note 23).

(w) Foreign Currency Translation Amounts held in foreign currency at balance date are translated to Australian currency at the rate of exchange at that date. Apart from cash at bank, there were no other assets or liabilities held in foreign currencies at the end of the reporting period.

Note 2. Output Groups of the Department A description of each output group of the Department during the year ended 30 June 2004, together with the objectives of each output group are summarised below.

Business Description of Output Group Provision of an integrated business development model to deliver broadcast information services and business development programs to support industry development, manufacturing, financial services and small business growth. Key activities include: – Attract and facilitate new investment into the State and improve the capacity of Victorian industry to compete internationally; – Business improvement and export assistance services directed primarily at business in Victoria’s manufacturing and trade services sectors and small and medium enterprises generally; – Increase the capacity of local industries to compete, grow and employ; and – Development of on-line business services.

Objectives – Encourage and support the development of innovative, internationally integrated and competitive industries and businesses for Victoria; – Work to create a competitive business environment and capabilities for the innovation economy; and – To strengthen Victoria’s regional economies, infrastructure and communities.

Innovation and Policy Description of Output Group Brings together the strategic leadership responsibilities for economic and regional development policies with the key areas of science, technology and innovation. Together these responsibilities largely define the future direction for the Victorian economy. In addition to the strong policy and strategy development role, there is also a number of strategic programs delivered.

Objectives – Encourage and support the development of innovative, internationally integrated and competitive industries and businesses for Victoria; – Work to create a competitive business environment and capabilities for the innovation economy; and – Support the development of high performing, cooperative and fair workplaces and a highly skilled workforce.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 51 Notes to the Financial Statements continued 30 June 2004

Note 2. Output Groups of the Department (continued) Industrial Relations Description of Output Group Aims to develop and implement an industrial relations policy and legislative climate that promotes fairness, job growth and enhanced employment opportunities and actively promotes the development of co-operative work practices and relations between employers and employees and their representatives, as well as to Commonwealth Government policy and legislation.

Objectives – Support the development of high performing, cooperative and fair workplaces and a highly skilled workforce; – Encourage and support the development of innovative, internationally integrated and competitive industries and businesses for Victoria; – Work to create a competitive business environment and capabilities for the innovation economy; and – To strengthen Victoria’s regional economies, infrastructure and communities.

Tourism Description of Output Group Aims to maximise employment and longer term economic benefits of tourism to Victoria by developing and marketing the State as a competitive tourist destination for both domestic and international tourists as well as product development, leadership and coordination.

Objectives – Encourage and support the development of innovative, internationally integrated and competitive industries and businesses for Victoria; – Work to create a competitive business environment and capabilities for the innovation economy; – To strengthen Victoria’s regional economies, infrastructure and communities; and – Encourage and support the contribution of tourism to Victoria’s economic and social development.

Regional Development Description of Output Group Lead rural and regional economic policy and program development and provides services that target regional and strategic leadership, regional economic development, rural community development and regional infrastructure development. Key activities include: – Support and fund regional, community business and tourism infrastructure; – Facilitate the coordinated delivery of government programs, services and resources; – Support regional community development; and – Increase the capacity of rural and regional industries to compete, invest, grow and employ.

Objectives – Strengthen Victoria’s regional economies, infrastructure and communities; – Encourage and support the development of innovative, internationally integrated and competitive industries and businesses for Victoria; and – Work to create a competitive business environment and capabilities for the innovation economy.

52 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Output Groups Schedule – Controlled Revenue and Expenses for the year ended 30 June 2004

Innovation Innovation(a) Business Business(b) Industrial Industrial Tourism Tourism(c) and Policy and Policy Relations Relations 2004 2003 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue Output appropriations 103,143 92,061 94,830 128,647 12,941 9,522 39,719 19,971 Regional Infrastructure Development Fund Appropriations - - - 123,579 - - - - Special appropriations - - 150 40 - - - - Other revenue 1,437 2,402 1,074 5,383 41 63 98 (55) Total revenue 104,580 94,463 96,054 257,649 12,982 9,585 39,817 19,916

Expenses Employee entitlements (8,666) (11,915) (22,326) (34,799) (5,703) (5,951) (1,521) (1,032) Depreciation and amortisation (367) (600) (1,224) (2,305) (270) (432) (375) (267) Grants and other payments to service providers (74,213) (55,756) (49,285) (108,812) (3,104) (1,266) (37,713) (17,277) Capital asset charge (1,181) (723) (294) (344) (63) (57) (105) (37) Supplies and services (16,547) (18,640) (17,633) (22,973) (3,249) (2,061) (922) (481) Other expenses from ordinary activities (19) 17 (57) (386) (14) (3) (27) (3) Total expenses (100,993) (87,617) (90,819) (169,619) (12,403) (9,770) (40,663) (19,097) Net Result for the Reporting Period 3,587 6,846 5,235 88,030 579 (185) (846) 819

Net Increase in revaluation reserve - - 381 - - - - - Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 3,587 6,846 5,616 88,030 579 (185) (846) 819

(a) Includes Multimedia Victoria from 1 July 2002 to 31 December 2002 (see note 24). (b) Includes Trade Measurement Victoria and Liquor Licensing Victoria from 1 July 2002 to 31 December 2002 (see note 24) and Regional Development programs for the year ended 30 June 2003. (c) Includes Tourism Victoria from 1 January 2003 to 30 June 2003 (see note 24). (d) Includes Employment Programs from 1 July 2002 to 31 December 2002 (see note 24).

(Note 2. Output Groups Schedule continues over page)

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 53 Notes to the Financial Statements continued 30 June 2004

Note 2. Output Groups of the Department (continued) Output Groups Schedule – Controlled Revenue and Expenses for the year ended 30 June 2004

Regional Regional Employment Employment(d) Departmental Departmental Development Development Total Total 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000

Revenue Output appropriations 22,814 - - 19,688 273,447 269,889 Regional Infrastructure Development Fund Appropriations 20,000 - - - 20,000 123,579 Special appropriations - - - 150 40 Other revenue 1,286 - - 4,220 3,936 12,013 Total revenue 44,100 - - 23,908 297,533 405,521

Expenses Employee entitlements (12,477) - - (2,485) (50,693) (56,182) Depreciation and amortisation (645) - - (39) (2,881) (3,643) Grants and other payments to service providers (46,328) - - (17,948) (210,643) (201,059) Capital asset charge (143) - - (5) (1,786) (1,166) Supplies and services (6,841) - - (1,747) (45,192) (45,902) Other expenses from ordinary activities (48) - - 135 (165) (240) Total expenses (66,482) - - (22,089) (311,360) (308,192) Net Result for the Reporting Period (22,382) - - 1,819 (13,827) 97,329

Net Increase in revaluation reserve - - - - 381 - Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner (22,382) - - 1,819 (13,446) 97,329

(a) Includes Multimedia Victoria from 1 July 2002 to 31 December 2002 (see note 24). (b) Includes Trade Measurement Victoria and Liquor Licensing Victoria from 1 July 2002 to 31 December 2002 (see note 24) and Regional Development programs for the year ended 30 June 2003. (c) Includes Tourism Victoria from 1 January 2003 to 30 June 2003 (see note 24). (d) Includes Employment Programs from 1 July 2002 to 31 December 2002 (see note 24).

54 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Output Groups Schedule – Controlled Revenue and Expenses for the year ended 30 June 2004

Innovation Innovation Business Business(a) Industrial Industrial and Policy and Policy Relations Relations 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000

Assets Current Assets 13,543 2,392 48,330 136,237 13,263 2,585 Non-Current Assets 49,543 2,765 12,517 12,102 683 692 Total Assets 63,086 5,157 60,847 148,339 13,946 3,277

Liabilities Current Liabilities (4,663) (2,047) (8,303) (7,341) (2,114) (1,647) Non-Current Liabilities (1,356) (834) (3,877) (5,000) (1,053) (1,218) Total Liabilities (6,019) (2,881) (12,180) (12,341) (3,167) (2,865) Net Assets 57,067 2,276 48,667 135,998 10,779 412

(chart continues below) Tourism Tourism Regional Regional Departmental Departmental Development Development Total Total 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000

Assets Current Assets 25,365 4,401 42,714 - 143,215 145,615 Non-Current Assets 1,435 1,033 3,334 - 67,512 16,592 Total Assets 26,800 5,434 46,048 - 210,727 162,207

Liabilities Current Liabilities (4,320) (1,718) (5,508) - (24,908) (12,753) Non-Current Liabilities (2,047) (2,394) (2,096) - (10,429) (9,446) Total Liabilities (6,367) (4,112) (7,604) - (35,337) (22,199) Net Assets 20,433 1,322 38,444 - 175,390 140,008

(a) Includes assets and liabilities related to the regional development programs for the year ended 30 June 2003.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 55 Notes to the Financial Statements continued 30 June 2004

Note 3. Revenue Operating Non-Operating 2004 2003 2004 2003 $’000 $’000 $’000 $’000 (a) Revenue by source Revenue from Government Output appropriations 273,447 269,889 - - Regional Infrastructure Development Fund Appropriations 20,000 123,579 - - Special appropriations 150 40 - - 293,597 393,508 - -

Revenue from Other Parties Trust Revenue - - 3,936 12,013 - - 3,936 12,013 Total revenue 293,597 393,508 3,936 12,013

(b) Conditional grants The Department has recognised as output appropriations revenue a grant totalling $0.25 million from the Commonwealth Government for the following programs: 2003 2004 2004 2004 $’000 $’000 $’000 $’000 Balance Revenue Expense Balance

AusIndustry Grants 123 - - 123 ASC Participation 50 --50 Tradestart - 245 184 61 173 245 184 234

These grants are considered to be non-reciprocal as the only conditions set by the Commonwealth relates to how the grant can be expended and there are no performance measures in terms of the delivery of services to the Commonwealth or to the parties it nominates.

56 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Note 4. Summary of compliance with Annual Parliamentary Appropriations (a) Summary of Compliance with Annual Parliamentary Appropriations The following table discloses the details of the various Parliamentary Appropriations received by the Department for the year. In accordance with Accrual Output-based Management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

Appropriation Act Annual Appropriation Advance from Treasurer Section 3(2) Section 29 ($’000) ($’000) ($’000) ($’000) 2004 2003 2004 2003 2004 2003 2004 2003

Controlled provision of outputs 262,700 265,743 - - 889 - 515 182 Additions to net assets 50,947 32,466 ------Regional Infrastructure Development Fund 20,000 72,920 ------

Administered Payments made on behalf of the State ------Total 333,647 371,129 - - 889 - 515 182

Financial Management Act 1994 Total Parliamentary Appropriations Section 30 Section 32 Section 35 Authority Applied Variance ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003

Controlled provision of outputs (3,354) (2,000) 58,773 60,558 30,045 25,580 349,568 350,063 273,447 269,889 76,121 80,174(a) Additions to net assets 3,354 2,000 6,384 2,241 14,486 10,100 75,171 46,807 71,522 26,220 3,649 20,587(b) Regional Infrastructure Development Fund - - - 52,172 - - 20,000 125,092 20,000 123,579 - 1,513(a)

Administered Payments made on behalf of the State ------Total - - 65,157114,971 44,531 35,680 444,739 521,962 364,969 419,688 79,770 102,274

(a) The variance is primarily related to the rephasing of planned expenditure into the next financial year. (b) During the year an amount of $22.7 million (2003 – $14.47 million) was transferred from controlled to administered appropriation as a transfer of contributed capital (see also note 12 (b).

(b) Summary of compliance with Special Appropriations

Authority Purpose Appropriations Applied 2004 2003 $’000 $’000

Section 10 of the Financial Tradestrart Dandenong Office - 40 Management Act 1994 Market Access Development Forums 150 - Total 150 40

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 57 Notes to the Financial Statements continued 30 June 2004

Note 5. Result from ordinary activities 2004 2003 $’000 $’000 (a) Expenses Result from ordinary activities includes the following specific expenses:

Employee entitlements Salary and Wages 39,733 43,958 Superannuation 3,817 4,194 Annual leave and long service leave expense 3,920 4,115 Other on-costs (fringe benefits tax, payroll tax and workcover levy) 3,223 3,915 Total Employee entitlements 50,693 56,182

Depreciation Buildings 5 8 Plant and equipment 1,919 2,343 Total depreciation 1,924 2,351

Amortisation Leasehold improvements 940 1,292 Leased Motor Vehicles 17 - Total amortisation 957 1,292

Total depreciation and amortisation 2,881 3,643

Bad and doubtful debts – trade debtors 6 6 Net loss on disposal of property, plant and equipment 167 86 Foreign Exchange Translation Loss 4 16 Interest and Finance Charges Payable 5 -

Rental expense relating to operating leases Minimum lease payments 5,747 5,666 Total rental expense relating to operating leases 5,747 5,666

2004 2003 $’000 $’000 (b) Supplies and Services Operating Expenses 21,892 24,866 Developing Victoria’s Design Capabilities 5,654 2,992 Business Development Expenses 3,998 2,728 Biotechnology 3,221 3,319 Technology Commercialisation Policy Development 2,562 2,982 Agenda for New Manufacturing 2,395 1,910 Trust Fund Administration Expenses 1,795 3,167 Regional Development Organisations 624 576 Small Business Commissioner 624 545 Vicstart 604 - Regional Development Victoria 524 - Investment Support Program 485 398 Drought Assistance Packages 270 - Trade Fairs/Missions & Grow Your Business 190 - Business Projects - External Funds 150 - Better Work and Family Balance 108 - Bushfire Recovery Fund 96 - Chip Skills - 96 Connecting Victoria - 2,323 Total 45,192 45,902

58 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 2004 2003 $’000 $’000 (c) Grant Payments Science, Technology and Innovation Programs 72,113 52,326 Industry Programs 39,350 65,914 Tourism Victoria 38,053 14,771 Regional Infrastructure Development Fund 36,797 30,517 Coode Island 5,936 340 Other grants 5,197 2,380 Living Regions Living Suburbs 3,914 9,252 Drought Assistance Packages 2,033 - Bushfire Relief & Recovery Fund 2,007 2,000 VESKI program 1,299 - Mercedes Fashion Week 1,200 - Jobwatch 877 878 Melbourne Fashion Festival 517 - Regional Development Victoria 420 - Trust Grants 396 3,941 Rural Leadership and Community Events 248 - Synchrotron 220 100 Better Work and Family balance 66 - Connecting Victoria - 2,012 Employment Grants - 16,628 Total 210,643 201,059

Bt Forward Revenue Expense Balance $’000 $’000 $’000 $’000 (d) Trust Fund Balances 2004 Melbourne Major Events 84 625 639 70 Small Business Victoria Special Projects 61--61 Forest Industry Structural Adjustment Program 112 - - 112 Lotus Notes Messaging (1) 1 - - Regional Infrastructure Development Fund 124,898 18,467 39,322 104,043 Youth Employment Scheme 229 - 17 212 Werribee Project 23 - - 23 Revenue Clearing Account 397 44 - 441 Recoup trusts 35 102 - 137 Business Licensing Project 89--89 ATSIC Counselling 1--1 Business Licence Centre 46--46 Real Estate Agents Guarantee Fund 49 335 - 384 AAV Communique Trust 27--27 National Science Week 13 2 15 - San Francisco Office 192 250 192 250 Treasury Trust 101 313 5 409 Centre for Energy and Greenhouse Technologies 990 1,000 34 1,956 Bioinformatics Forum 20 - 20 - Business Sustainability 150 146 - 296 Premiers Food Victoria Awards 12 2 - 14 Dubai Education & Health Development Manager Trust 32 12 - 44 Community Capacity Building Initiative - 110 84 26 VPS Continuous Improvement Network - 214 63 151 Community Regional Industry Skills Program - 1,000 20 980 E-Commerce Program Trust 975 10 - 985 Total 128,535 22,633 40,411 110,757

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 59 Notes to the Financial Statements continued 30 June 2004

Note 5. Result from ordinary activities (continued) Bt Forward Revenue Expense Balance $’000 $’000 $’000 $’000 (d) Trust Fund Balances (continued) 2003 Melbourne Major Events 40 2,625 2,581 84 Small Business Victoria Special Projects 61 - - 61 Liquor Licensing – Special Projects 4 - 4 - Forest Industry Structural Adjustment Program 108 - (4) 112 Lotus Notes Messaging 197 - 198 (1) Lotus Notes Licence Rollout 93 - 93 - Regional Infrastructure Development Fund 33,150 123,579 31,831 124,898 Youth Employment Scheme 281 (52) - 229 Werribee Project 100 - 77 23 Revenue Clearing Account 12 385 - 397 Revenue Recoup Trusts 52 129 146 35 Business Licensing Project 98 - 9 89 ATSIC Counselling 5 - 4 1 Business Licence Centre 46 - - 46 Real Estate Agents Guarantee Fund 377 235 563 49 Employment Victoria Special Projects trusts 455 150 605 - Go Vic Sponsorship 40 - 40 - AAV Communique Trust 27 - - 27 National Science Week 14 8 9 13 ICT Skills trust 277 1 278 - San Francisco Office 100 250 158 192 Treasury Trust 87 14 - 101 Centre for Energy and Greenhouse Technologies - 1,166 176 990 Heroes Campaign - 1,036 1,036 - Our Forests Our Future - 3,770 3,770 - Bioinformatics Forum - 20 - 20 Business Sustainability - 150 - 150 Retrenched Ansett Workers Support - 300 300 - Premiers Food Victoria Awards - 40 28 12 Dubai Education & Health Development Manager Trust - (32) 32 ICT Infrastructure Strategy - 810 810 - E-Commerce Program Trust - 975 - 975 Total 35,624 135,591 42,680 128,535

The trust fund balances are stated in terms of the net asset position of each trust and include all assets and liabilities of each trust account.

Note 6. Cash assets 2004 2003 $’000 $’000

Cash at bank and on hand (722) (1,873) Funds held in trust 109,874 128,069 109,152 126,196

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances as above 109,152 126,196 Balances per statement of cash flows 109,152 126,196

60 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Cash at bank Due to the State of Victoria’s investment policy and government funding arrangements, government departments generally do not hold a large cash reserve in their bank accounts. Cash received by a department from the generation of revenue is generally paid into the State’s bank account, known as the Public Account. Similarly, any departmental expenditure, including those in the form of cheques drawn down by the department for the payment of goods and services to its suppliers and creditors are made via the Public Account. This process is such that the Public Account would remit to the department the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the department’s suppliers or creditors.

The above funding arrangements often result in departments having a shortfall in the cash at bank required for payment of unpresented cheques at the reporting date.

At 30 June 2004, cash at bank include the amount of a shortfall for the payment of unpresented cheques of $1,057,190 (2003 – $1,905,662).

Note 7. Receivables 2004 2003 $’000 $’000

Amounts owing from Victorian Government 26,732 9,471 Debtors 6,637 7,681 Less: Provision for doubtful debts - - 33,369 17,152

Note 8. Property, plant and equipment 2004 2003 $’000 $’000

Land and buildings Freehold land at fair value 7,583 7,202 7,583 7,202

Buildings at fair value - 216 Less: Accumulated depreciation - (22) - 194

Buildings Leasehold – at fair value 216 - Less: Accumulated Amortisation (27) - 189 -

Leasehold improvements – at cost 11,280 10,976 Less: Accumulated amortisation (9,079) (8,167) 2,201 2,809 Total land and buildings 9,973 10,205

Plant and equipment At cost 13,921 13,311 Less: Accumulated depreciation (10,693) (9,896) Total plant and equipment 3,228 3,415

Plant and equipment under finance lease 394 - Less Accumulated amortisation (17) - 377 -

Plant and equipment in the course of construction (at cost) * 53,934 2,972 Total Property, Plant and Equipment 67,512 16,592

*Includes expenditure incurred on the Australian Synchrotron ($43.7 million) and the Southern Cross Office Development ($7.0 million) during the current year.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 61 Notes to the Financial Statements continued 30 June 2004

Note 8. Property, plant and equipment (continued) Valuations of land and buildings The basis of valuation adopted as at 30 June 2004 for land and buildings is fair value being the current replacement cost of the land’s remaining future economic benefits and the depreciated current replacement cost of the building’s remaining future economic benefits. The fair value has been assessed as approximating cost for land and buildings held by the Department at reporting date. During the reporting period, the building held by the Department was reclassified as building leasehold to more accurately reflect the nature of the asset. Reconciliations Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below. Leasehold Leased Freehold improve- Buildings Plant & Plant & In Course of land Buildings ments Leasehold equipment Equipment Construction Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2004 Carrying amount at start of year 7,202 194 2,809 - 3,415 - 2,972 16,592 Additions - - 365 - 1,867 394 50,961 53,587 Disposals - - (32) - (135) - - (167) Revaluation increments 381 ------381 Transfers between classes - (190) - 190 - - - - Depreciation/amortisation expense (note 5(a)) - (4) (941) - (1,919) (17) - (2,881) Carrying amount at end of year 7,583 - 2,201 190 3,228 377 53,933 67,512

Note 9. Interest bearing liabilities 2004 2003 $’000 $’000

Current Secured Lease Liabilities 51 - 51 -

Non-current Secured Lease Liabilities 327 - 327 -

Aggregate carrying amount of interest bearing liabilities Current 51 - Non-current 327 - Total (see note 18) 378 -

Lease liabilities are effectively secured as the rights to the lease assets revert to the lessor in the event of default The carrying amounts of non-current asset pledged as security for the finance lease above is: 2004 2003 $’000 $’000

Motor Vehicles under finance lease 378 - Total non-current assets pledged as security 378 -

Note 10. Payables 2004 2003 $’000 $’000

Trade creditors 16,091 3,452 Other creditors 2,902 4,324 18,993 7,776

62 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Note 11. Provisions 2004 2003 $’000 $’000

Current Employee entitlements – Annual leave 3,435 3,251 – Long service leave 532 594 – Other 1,897 1,132 5,864 4,977

Non-current Employee entitlements – Long service leave 10,102 9,446 10,102 9,446

Aggregate carrying amount of provisions Current 5,864 4,977 Non-current 10,102 9,446 15,966 14,423

Note 12. Equity and movements in equity 2004 2003 $’000 $’000

(a) Reserves Asset Revaluation Reserve 381 - 381 -

Movements Balance at 1 July - - Revaluation increment to freehold land 381 - Balance at 30 June 381 -

Nature and Purpose of Reserves The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(g).

(b) Contributed Capital Contributed capital at the beginning of the financial year 20,107 1,996 Capital Contributed by Victorian State Government 71,522 26,220 Increase in Contributed Capital associated with net asset transfers - 3,692 Transfer of contributed capital from controlled to administered ** (22,694) (14,469) Net capital contribution upon restructure - 2,668 Contributed capital at the end of the financial year 68,935 20,107

(c) Accumulated surplus Accumulated surplus at the beginning of the financial year 119,901 26,264 Reduction in Accumulated Surplus associated with net asset transfers* - (3,692) Net result for the reporting period (13,827) 97,329 Accumulated surplus at the end of the financial year 106,074 119,901

(d) Movements in equity Total equity at the beginning of the financial year 140,008 28,260 Total changes recognised in the statement of financial performance (13,446) 97,329 Reduction in Accumulated Surplus associated with net asset transfers* - (3,692) Transfer of contributed capital from controlled to administered ** (22,694) (14,469) Net contributions of equity 71,522 32,580 Total equity at the end of the financial year 175,390 140,008

* This relates to the value of net trust assets transferred to other Departments in excess of the value of Contributed Capital held in trust. ** Transfer of contributed capital from controlled to administered associated with an agreement to subscribe for capital in Overseas Projects Corporation of Victoria (OPCV), a Departmental portfolio agency, and the transfer of the loan payable to the State in relation to construction of the TV and Film Studio. The agreement to subscribe for capital in a portfolio agency is undertaken on behalf of the State and recorded as an administered asset by the Department of Treasury and Finance in its financial report. The loan relating to the TV and Film Studio has been recorded as an administered asset (see note 20) to reflect the ongoing management of the project by the Department on behalf of the State.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 63 Notes to the Financial Statements continued 30 June 2004

Note 13. Financial instruments (a) Credit risk exposures The credit risk on financial assets of the Department which have been recognised on the statement of financial position, other than investments in shares, is generally the carrying amount net of any provisions for doubtful debts. (b) Interest rate risk exposures The Department’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements.

Exposures arise predominantly from assets and liabilities bearing variable interest rates as the Department intends to hold fixed rate assets and liabilities to maturity. Fixed interest maturing in: Floating 1 year Over 1 to More than Non-interest interest rate or less 5 years 5 years bearing Total 2004 Notes $’000 $’000 $’000 $’000 $’000 $’000

Financial assets Cash Assets 6 - - - - 109,152 109,152 Receivables 7 - - - - 33,369 33,369 - - - - 142,521 142,521

Weighted average interest rate N/A

Financial liabilities Trade and other creditors 10 - - - - (18,993) (18,993) Lease Liabilities 9 - (51) (327) - - (378) - (51) (327) - (18,993) (19,371)

Weighted average interest rate 6.37 Net financial assets (liabilities) - (51) (327) - 123,528 123,150

Fixed interest maturing in: Floating 1 year Over 1 to More than Non-interest interest rate or less 5 years 5 years bearing Total 2003 Notes $’000 $’000 $’000 $’000 $’000 $’000

Financial assets Cash Assets 6 - - - - 126,196 126,196 Receivables 7 - - - - 17,152 17,152 - - - - 143,348 143,348

Weighted average interest rate N/A

Financial liabilities Trade and other creditors 10 - - - - (7,776) (7,776) Lease Liabilities 9 ------(7,776) (7,776)

Weighted average interest rate N/A Net financial assets (liabilities) - - - - 135,572 135,572

64 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 (c) Net fair value of financial assets and liabilities (i) On-statement of financial position The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Department approximates to their carrying amounts.

The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.

For non-traded equity investments, the net fair value is based on the underlying net assets, future maintainable earnings and any special circumstances pertaining to a particular investment.

The carrying amounts and net fair values of financial assets and liabilities at reporting date are:

2004 2003 Carrying Net fair Carrying Net fair amount value amount value $’000 $’000 $’000 $’000 On-statement of financial position financial instruments Financial assets Cash Assets 109,152 109,152 126,196 126,196 Receivables 33,369 33,369 17,152 17,152 Non-traded financial assets 142,521 142,521 143,348 143,348

Financial liabilities Trade creditors (18,993) (18,993) (7,776) (7,776) Interest Bearing Liabilities (378) (378) -- Non-traded financial liabilities (19,371) (19,371) (7,776) (7,776)

Net fair value is exclusive of costs which would be incurred on realisation of an asset, and inclusive of costs which would be incurred on settlement of a liability.

(ii) Off-statement of financial position The Department has potential financial liabilities which may arise from certain contingencies (see note 17). As explained in that note, no material losses are anticipated in respect of any of those contingencies and the net fair value disclosed below is the estimate of amounts which would be payable by the Department as consideration for the assumption of those contingencies by another party.

2004 2003 Carrying Net fair Carrying Net fair amount value amount value $’000 $’000 $’000 $’000 Off-statement of financial position financial instruments Financial liabilities Contingencies 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 65 Notes to the Financial Statements continued 30 June 2004

Note 14. Ministers and Accountable Officers In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Names The persons who held the above positions in the Department are as follows:

Minister for State and Regional Development The Hon John Brumby, MP 1 July 2003 to 30 June 2004 Minister for Innovation The Hon John Brumby, MP 1 July 2003 to 30 June 2004 Minister for Manufacturing and Export The Hon Tim Holding, MP 1 July 2003 to 30 June 2004 Minister for Financial Services Industry The Hon Tim Holding, MP 1 July 2003 to 30 June 2004 Minister for Small Business The Hon Marsha Thomson, MLC 1 July 2003 to 30 June 2004 Minister for Industrial Relations The Hon Rob Hulls, MP 1 July 2003 to 30 June 2004 Minister for Tourism The Hon John Pandazopoulos, MP 1 July 2003 to 30 June 2004 Secretary Mr Peter Harmsworth 1 July 2003 to 30 June 2004

Remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of the Department during the reporting period was in the range:

$320,000 – $329,999 (2003 – $280,000 – $289,999).

The amount stated for the current year represents the total remuneration of the Accountable Officer for the reporting period.

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.

Other Transactions Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

66 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Note 15. Remuneration of executives The numbers of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting period are shown in the third and fourth columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the first two columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.

Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract. A number of these contract completion bonuses became payable during the year.

The remuneration paid to executives of Tourism Victoria are not reported in the details below but are included as part of the Financial Statements of that agency. Remuneration Band Base Remuneration Total Remuneration 2004 2003 2004 2003 No. No. No. No.

$ 40,000 – 49,999 1 - - - $100,000 – 109,999 1 6 - 4 $110,000 – 119,999 5 9 2 6 $120,000 – 129,999 8 6 6 7 $130,000 – 139,999 8 6 7 5 $140,000 – 149,999 1 1 7 5 $150,000 – 159,999 - 4 2 2 $160,000 – 169,999 4 2 1 3 $170,000 – 179,999 2 5 2 6 $180,000 – 189,999 1 2 1 2 $190,000 – 199,999 - - 2 1 $330,000 – 339,999 - - 1 - Total numbers 31 41 31 41

Total amount ($’000) 4,146 4,864 4,705 5,234

Movements in remuneration payable to executives have resulted from: – the previous years remuneration bands and total amount paid include a number of executive officers who transferred to other Departments as part of machinery of government changes in January 2003. – the current years remuneration bands and amounts paid include a number executives leaving the Department and being paid their leave entitlements accrued over the course of their employment in the Victorian Public Sector.

Note 16. Remuneration of auditors 2004 2003 $’000 $’000

Audit fees for audit of the Department’s financial report: 107 104

Note 17. Contingent liabilities and contingent assets Details and estimates of maximum amounts of contingent liabilities are as follows: 2004 2003 $’000 $’000

Quantifiable Contingent liabilities Clean up and rehabilitations of the TV and Film Studio Site * 2,000 2,000 2,000 2,000

* In relation to the Studio land, the State accepts responsibility during the term of the agreement (20 years) for groundwater contamination, if required by law, unless made necessary by redevelopment, or change of use by the studio developer, Central City Studio Holdings (CCSH). The known State liability is $0.6 million subject to reaching agreement with the Environment Protection Authority. In addition, the total estimated cost of monitoring groundwater contamination over the period of the agreement may amount to $1.4 million.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 67 Notes to the Financial Statements continued 30 June 2004

Note 17. Contingent liabilities and contingent assets (continued) Unquantifiable Contingent liabilities The Department has the following unquantifiable contingent liabilities: (a) In relation to the Studio land, the State accepts liability for costs in excess of $1.0 million relating to pre-existing contamination (including the costs of initial remediation). (b) In relation to the sale of the Overseas Projects Corporation Victoria, a Departmental portfolio agency, the State has agreed to cover any costs associated with the projects sold from the period under which the agency was responsible for these projects up until 30 June 2005. No material losses are anticipated in respect to this agreement. None of the above contingent liabilities are secured over any of the assets of the Department. 2004 2,003 $’000 $’000

Quantifiable Contingent assets Bank receipts under negotiation - 300 - 300

Note 18. Commitments for expenditure 2004 2003 $’000 $’000

Capital commitments Commitments for the development of capital assets contracted for at the reporting date but not recognised as liabilities and payable are: Within one year 70,766 73,926 Later than one year but not later than 5 years 54,820 115,320 Later than 5 years - - 125,586 189,246

Lease commitments Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities and payable are: Within one year 8,103 6,104 Later than one year but not later than 5 years 30,833 36,047 Later than 5 years 108,642 112,476 147,578 154,627 Representing: Non cancellable operating leases 147,155 154,627 Finance leases 378 - Future Finance Charges 45 - 147,578 154,627

Operating Leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 8,005 6,104 Later than one year but not later than 5 years 30,508 36,047 Later than 5 years 108,642 112,476 147,155 154,627

Finance Leases Commitments in relation to finance leases are payable as follows: Within one year 98 - Later than one year but not later than 5 years 325 - Later than 5 years -- Minimum lease payments 423 - Less: Future finance charges (45) - Total Lease Liabilities 378 -

68 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 2004 2003 $’000 $’000

Representing Lease Liabilities: Current 76 - Non-current 302 - Total (see note 9) 378 -

The weighted average interest rate implicit in the lease is 6.37%.

Outsourcing commitments Commitments under outsourcing contracts for Information Technology at the reporting date but not recognised as liabilities and payable are: Within one year 2,510 2,475 Later than one year but not later than 5 years 4,175 6,686 Later than 5 years - - 6,685 9,161

Grant commitments Commitments for the payment of grants under long-term contracts in existence at the reporting date but not recognised as liabilities and payable are: Within one year 158,874 188,148 Later than one year but not later than 5 years 83,805 124,077 Later than 5 years 26,054 44,568 268,733 356,793

Total Commitments not recognised in the statement of financial position 548,582 709,827

Note 19. Employee entitlements 2004 2003 $’000 $’000

Employee entitlement liabilities Provision for employee entitlements Current 5,864 4,977 Non-current 10,102 9,446 Aggregate employee entitlement liability (see note 11) 15,966 14,423

Number Number

Employee numbers Average number of employees during the financial year 559 577

As explained in notes 1(o)(ii), the amounts for long service leave are measured at their present values. The following assumptions were adopted in measuring present values: 2004 2003 $’000 $’000

Long Service Leave Weighted average rates of increase in annual employee entitlements to settlement of the liabilities 4.50% 4.75% Weighted average discount rates 5.66% 4.76% Weighted average terms to settlement of the liabilities 13 years 13 years

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 69 Notes to the Financial Statements continued 30 June 2004

Note 19. Employee entitlements (continued) Government Employees’ Superannuation Fund No liability is recognised in the statement of financial position for the Department’s share of the State’s unfunded superannuation liability. The State’s unfunded superannuation liability has been reflected in the financial statements of the Department of Treasury and Finance.

However, superannuation contributions for the reporting period are included as part of salaries and associated costs in the statement of financial performance of the Department.

The name and details of the major employee superannuation funds and contributions made by the Department are as follows:

Contributions Contributions Contribution Contribution Outstanding at Outstanding at for the Year for the Year Year End Year End 2004 2003 2004 2003 $ $ $ $

Fund Government Superannuation Scheme – revised and new 1,434 1,668 - - State Government Superannuation Fund 1,924 1,946 - - Private Funds 209 274 - - Bankers Trust - 7 - - Various other 250 299 - - Total 3,817 4,194 - -

The basis for contributions are determined by the various schemes.

The Department fully complies with the requirements of the Superannuation Industry (Supervision) Act 1993.

70 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Note 20. Administered Items In addition to the specific Departmental operations which are included in the statement of financial position, statement of financial performance and statement of cash flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues include appropriations (payments made on behalf of the State), fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered assets include Government revenues earned but yet to be collected.

Innovation Innovation Business Business Industrial Industrial and Policy and Policy Relations Relations 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000

Administered Revenues Sale of Goods and Services 1,644 268 1,270 4 116 1 Commonwealth Grants - - 275 273 - - Fines - - - 114 - - Fees - - - 1,398 - - Total 1,644 268 1,545 1,828 116 1

Administered Expenses Payments into the Consolidated Fund 2,234 268 975 1,827 146 1 Total 2,234 268 975 1,827 146 1 Revenue less Expenses (590) - 570 1 (30) -

Administered Assets Receivables - 5 16,322 17,839 - - Loans - - 30,779 12,469 Trust funds - (18) (69) (45) - (10) Total - (13) 47,032 30,263 - (10)

Administered Liabilities Creditors and Accruals ------Amounts owing to other Departments ------Total ------

(chart continues below) Tourism Tourism Regional Regional Departmental Departmental Development Development Total Total 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000

Administered Revenues Sale of Goods and Services - - 1,055 - 4,085 312 Commonwealth Grants - - 120 - 395 273 Fines - - --114 Fees - - --1,398 Total - - 1,175 - 4,480 2,097

Administered Expenses Payments into the Consolidated Fund - - 1,494 - 4,849 2,096 Total - - 1,494 - 4,849 2,096 Revenue less Expenses - - (319) - (369) 1

Administered Assets Receivables - - - - 16,322 17,844 Loans - - 30,779 12,469 Trust funds --- (69) (73) Total --- 47,032 30,240

Administered Liabilities Creditors and Accruals ------Amounts owing to other Departments ------Total ------

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 71 Notes to the Financial Statements continued 30 June 2004

Note 21. Ex-Gratia payments The Department has not made any ex-gratia payments during the reporting period (2003 – $nil).

Note 22. Reconciliation of result from ordinary activities to net cash inflow from operating activities 2004 2003 $’000 $’000

Result from ordinary activities (13,827) 97,329 Depreciation and amortisation 2,881 3,643 Provision for doubtful debts - 6 Other non-cash items (21,287) 30,898 Increase (decrease) in other operating assets 2,317 (3,478) Increase (decrease) in payables 10,930 (32,757) Increase in other provisions 2,208 425 Net cash inflow (outflow) from operating activities (16,778) 96,066

72 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Note 23. Impacts of adopting AASB equivalents to IASB standards For reporting periods beginning on or after 1 January 2005, all Australian reporting entities are required to adopt the financial reporting requirements of the Australian equivalents to International Financial Reporting Standards (IFRS). This requirement also extends to any comparative financial information included within the report. The first day of the comparative period, 1 July 2004, effectively becomes the transition date for the Department. Any adjustments arising from changes in the recognition or measurement of assets and liabilities at the transition date arising from the adoption of IFRS will be made against accumulated funds at the transition date.

The Department has taken the following steps in managing the transition to Australian equivalents to IFRS: – established a project team for the oversight of the transition to and implementation of the Australian equivalents to IFRS; – reviewed the Department’s current accounting policies and the proposed new standards to identify key issues and the likely impacts resulting from the adoption of Australian equivalents to IFRS; – plan to undertake an education and training process for all stakeholders to raise awareness of the changes in reporting requirements and the processes; and – conducted a preliminary review of the need to redesign user systems and processes to meet new requirements.

The Department has identified a number of changes to the existing accounting policies that may have a material impact on the Department’s future financial position and performance following the adoption of the requirements of Australian equivalents to IFRS (the new standards). These include:

(i) Valuation of assets In accordance with the Victorian Government Policy – Revaluation of Non-Current Physical Assets, the Department currently measures its non-current physical assets, other than plant, equipment and vehicles, at fair value subsequent to initial recognition. Plant, equipment and vehicles are measured on a cost basis. Revaluations are assessed annually and supplemented by independent assessments at least every three years. The new standard continues to offer a choice for measuring each class of non-current physical assets either at cost or at fair value. However, non-current assets measured at fair value will only be required to be revalued at least every three to five years and all assets in a class must be revalued at the same time. The Victorian government has not yet concluded whether it will make any changes to the valuation basis of any class of asset or the methodology or frequency at which revaluations are performed. The financial effects of any such changes are unknown.

(ii) Impairment of assets Under the new standards, an asset will be required to be assessed for impairment each year. If indicators of impairment exist, the carrying value of an asset will need to be assessed to ensure that the carrying value does not exceed its recoverable amount, which is the higher of its value-in-use and fair value less costs to sell. For the Department, value-in- use of an asset is its depreciated replacement cost. Other than inventories, financial assets and assets arising from construction contracts, impairment testing will apply to all assets regardless of whether they are measured on a cost or fair value basis. Where the carrying value of an asset exceeds its recoverable amount, the difference will be written-off as an impairment loss to the statement of financial performance except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that asset. Any impairment losses at transition date will be adjusted against the accumulated funds.

(iii) Other changes In addition, a number of other changes in requirements have been identified which are expected to lead to changes in methodology or processes, increased disclosures and possibly changes in measurement of assets or liabilities. The changes are not expected to have a material impact.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 73 Notes to the Financial Statements continued 30 June 2004

Note 24. Restructuring of administrative arrangements The Department has not transferred any of its outputs to other Departments for the year ended 30 June 2004 as there have been no machinery of government changes during this period. However in 2003, the Department had recognised in the Statement of Financial Position the relinquished or assumed net assets of the following outputs based on their carrying value at 31 December 2002 immediately prior to the transfer:

(a) Employment Programs output transferred to the Department for Victorian Communities (formerly Department for Tourism, Sport and Commonwealth Games). The Department for Victorian Communities has recognised revenue and expenditure of $47,973,818 and $38,784,816 respectively for the reporting period in respect of changes in outputs. Total revenue and expenses recognised by the Department’s for Victorian Communities and of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2003 are $71,882,067 and $60,867,570 respectively.

(b) The ICT Industry Development and E-Commerce, E-Government and ICT Policy, ICT Community Development and the E-Government Infrastructure output groups which were part of the Innovation and Policy output of the Department and administered by Multimedia Victoria were transferred to the Department of Infrastructure. The Department of Infrastructure has recognised revenue and expenditure of $14,240,860 and $14,869,776 respectively for the reporting period in respect of changes in outputs. Total revenue and expenses recognised by the Departments of Infrastructure and Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2003 are $26,385,748 and $26,740,789 respectively.

(c) The Trade Measurement Development and Services and Effective Management of the Sale of Liquor output groups which were part of the Department’s Business output group and administered by Trade Measurement and Liquor Licensing Victoria respectively were transferred to the Department of Justice. The Department of Justice has recognised revenue and expenditure of $2,940,759 and $3,555,270 respectively for the reporting period in respect of changes in outputs. Total revenue and expenses recognised by the Departments of Justice and of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2003 are $5,797,262 and $6,611,774 respectively.

(d) Tourism Victoria output which was transferred to the Department from the Department for Victorian Communities. The Department for Victorian Communities has recognised revenue and expenditure of $18,735,551 and $18,735,551 respectively for this output group. Total revenue and expenses recognised for the year ended 30 June 2003 are $38,650,212 and $38,705,215 respectively.

The net assets transfer was treated as a contribution of capital by the Crown in compliance with the accounting requirements of Urgent Issues Group Abstract 38 Contributions by Owners Made to Wholly-Owned Public Sector Entities and the Financial Reporting Direction No. 2 Contributed Capital, (see note 1 (t)). (a) Output – Employment Programs In respect of the activities relinquished, the following assets and liabilities were transferred: 2004 2003 $’000 $’000

Assets Receivables - 5,341 Property, Plant and equipment - 158 Liabilities Employee entitlements - (2,647) Net Capital contribution from the Crown - 2,852

(b) Output – The ICT Industry Development and E-Commerce, E-Government and ICT Policy, ICT Community Development and the E-Government Infrastructure In respect of the activities relinquished, the following assets and liabilities were transferred: 2004 2003 $’000 $’000

Assets Receivables - 1,373 Inventories - 334 Intangible assets - 2,566 Liabilities Employee entitlements - (856) Net Capital contribution to the Crown - 3,417

74 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 (c) Output – Trade Measurement Development and Services and Effective Management of the Sale of Liquor In respect of the activities relinquished, the following assets and liabilities were transferred:

2004 2003 $’000 $’000

Assets Receivables - 300 Property, Plant and equipment - 222 Liabilities Employee entitlements - (1,192) Net Capital contribution to the Crown - (670)

(d) Output – Tourism In respect of the activities relinquished, the following assets and liabilities were recognised:

2004 2003 $’000 $’000

Assets Receivables - 8,267 Net Capital contribution to the Crown - 8,267

(e) Total Net Asset Transfers from restructuring of administrative arrangements 2004 2003 $’000 $’000

Net Capital Contribution to the Crown Output – Employment Program (note 24 (a)) - (2,852) Output – The ICT Industry Development and E-Commerce, E-Government and ICT Policy, ICT Community Development and the E-Government Infrastructure (note 24 (b)) - (3,417) Output – Trade Measurement Development and Services and Effective Management of the Sale of Liquor (note 24 (c)) - 670 Output – Tourism (note 24 (d)) - 8,267 Total Net Capital Contribution to the Crown (see note 12 (b)) - 2,668

Note 25. Non-cash financing and investing activities 2004 2003 $’000 $’000

Restructuring of administrative arrangements - 2,668

Restructuring of Administrative Arrangements As a result of a restructuring of administrative arrangements (see note 24) for the year ended 30 June 2003: (a) assets of $5,499,514 and liabilities of $2,647,169 were transferred to the Department for Victorian Communities (formerly Department for Tourism, Sport and Commonwealth Games) in respect of the Employment Programs output; (b) assets and liabilities amounting to $4,272,640 and $856,114 respectively were transferred to the Department of Infrastructure; (c) assets of $522,795 and liabilities of $1,192,116 were transferred to the Department of Justice; and (d) assets of $8,266,894 were transferred into the Department from the Department for Victorian Communities in respect of the Tourism output.

The net amount resulting from this transfer has been recognised as a contribution of capital by the Government up to the value of the Department’s contributed capital balance as at the transfer date (see note 12(b)).

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 75 Accountable Officer’s and Chief Finance Officer’s declaration

We certify that the attached financial statements for the Department of Innovation, Industry and Regional Development have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the statement of financial performance, statement of financial position, statement of cash flows and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2004 and financial position of the Department as at 30 June 2004.

We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

P. Harmsworth Secretary Department of Innovation, Industry and Regional Development

Melbourne 20 August 2004

S. Sweeney Chief Finance Officer Department of Innovation, Industry and Regional Development

Melbourne 20 August 2004

76 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Auditor General’s Report

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 77 04 Appendices Contents

Administrative Structure of the Department 80 Workforce Information 80 Freedom of Information 81 Victorian Industry Participation Policy 82 Office-Based Environmental Impacts 83 Consultancies 84 Disclosure of Major Contracts 85 Compliance with the Building Act 85 Declaration of Pecuniary Interest 85 Shares Held by Senior Officers in a Statutory Authority or Subsidiary 85 Financial Review of Operations and Financial Conditions 85 Summary of Additional Information Available on Request 86 Grants and Related Assistance 86 Investment and Industry Related Grants 86 Business Development Grants 87 Regional Development Victoria Grants 94 Regional Infrastructure Development Fund 99 Small Towns Development Fund 99 Small Business Related Grants 101 Policy Grants 101 Industrial Relations Grants 102 Science, Technology and Innovation Grants 103 Merit and Equity 106 Superannuation Scheme 106 Exemptions from Advertisement/Selection on Merit 106 Issue Resolution 106 Upholding Public Sector Conduct 106 Progress in Implementing National Competition Policy 107 Workplace Diversity Strategy 108 Occupational Health and Safety 108 Responsiveness to Cultural Diversity, Women, Youth and Indigenous Affairs 108 Disclosure Index 110 Major Acts of Parliament Administered 111 Disclosures Made under the Whistleblowers Protection Act 2001 111 Whistleblowers Protection Act 2001 Procedures 112 Budget Portfolio Outcomes 114 Contact Details 118

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 79 Administrative Structure of the Department

Names of the Secretary and occupants of senior offices as Members of the Audit Committee are Stewart Leslie at 30 June 2004 are included in the chart setting out the (Causeway Consulting Pty Ltd) (Chairperson), Anne Jackson organisational structure of the Department in Section 1 of (General Manager, Global Internal Audit, National Australia this report. Bank) and Jane Niall (Deputy Secretary Business Development, DIIRD).

Workforce Information

Staff levels (FTE) by division by gender as at 30 June 2004

Division Male Female Total

Business Development 58.70 53.60 112.30 Business Support 40.80 53.75 94.55 Corporate Services 49.00 45.56 94.56 Economic Policy & Planning 13.00 19.15 32.15 Industrial Relations Victoria 21.00 25.60 46.60 Innovation Economy Advisory Board 2.00 2.00 4.00 Invest Victoria 16.40 18.00 34.40 Office of the Secretary 1.00 2.00 3.00 Regional Development Victoria 62.70 55.72 118.42 Small Business Commissioner 7.00 9.00 16.00 Tourism Victoria 42.00 75.00 117.00 Total 313.60 359.38 672.98

These figures are as at 30 June 2004. are not comparable with 2002–03. Total staff as at 30 June 2003 was They do not include casuals or people deemed to be inoperative, eg, on 667.0, comprising 307.3 males and 359.7 females. longterm LWOP or seconded out of the Department. Invest Victoria staffing levels do not include locally engaged staff Due to the Departmental restructure, staff numbers by division for 2003–04 based overseas.

Staff levels by classification by gender as at 30 June 2004

Classification Male Female Total

EO1 1.00 1.00 2.00 EO2 7.00 4.00 11.00 EO3 21.00 7.00 28.00 Grade 7 4.00 1.00 5.00 Grade 6 113.00 53.95 166.95 Grade 5 71.70 79.63 151.33 Grade 4 44.50 56.95 101.45 Grade 3 35.00 96.85 131.85 Grade 2 11.00 50.00 61.00 Grade 1 1.00 9.00 10.00 Other 4.40 0.00 4.40 Total 313.60 359.38 672.98

Due to the VPS Career Restructure, non-executive staff numbers for 2003–04 are not comparable with 2002–03.

Profile of executive employees as at 30 June 2004

Classification Male Variation Female Variation Current Variation Total Variation from from Vacancies from from previous previous previous previous year year year year

EO-1 1 -1 1 0 0 0 2 -1 EO-2 7 1 4 1 1 0 12 2 EO-3 21 -2.8 7 -1 3 1 31 -2.8 Total 29 -2.8 12 0 4 1 45 -1.8

80 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Freedom of Information

Requests The Department received 87 Freedom of Information (FOI) requests in 2003–04.

Number of Requests by Division or Agency

Business Development 31 Business Support 2 Corporate Services 18 Economic Policy & Planning 7 Industrial Relations Victoria 0 Innovation Economy Advisory Board 3 Invest Victoria 0 Office of Small Business Commissioner 0 Regional Development Victoria 2 Tourism Victoria 9 Whole-of-DIIRD, Cross-Division 11 Other (Transfer, Withdrawn) 4 Total 87

Number of Requests by Category of Applicants

Members of Parliament 71 Media 6 Public 10 Legal 0 Total 87

Internal Review Freedom of Information requests and enquiries 15 (17.2%) of the requests received in 2003–04 were subject Any requests must be made in writing and should be to an internal review. addressed to: Senior Freedom of Information Officer In addition, 6 applications for internal review were carried Department of Innovation, Industry and from 2002–03. Regional Development 55 Collins Street Victorian Civil and Administrative Tribunal (VCAT) Melbourne Victoria 3000 None of the decisions made in 2003–04 have been subject to appeal with VCAT. The Department carried over 7 appeals Freedom of Information Online with VCAT from 2002–03. www.foi.vic.gov.au

Principal Officer Peter Harmsworth Secretary Department of Innovation, Industry and Regional Development 55 Collins Street Melbourne Victoria 3000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 81 Implementation of the Victorian Industry Participation Policy

Contracts and grants commenced to which the VIPP applied

Grants Regional/ Value Jobs % Local Skills Metropolitan Content

Investment Attraction Grants

18 Regional = 10 $27.9 m 1340 Average Technology and skills transfer from Metropolitan = 8 80–100% the investments are expected to result in new skills being transferred to employees. This is especially the case in regional Victoria where specialist skills are required and cannot be sourced from the local area. Cooperation with universities and international training opportunities will also arise from the new grants. Some of the new staff will be sent overseas for specialised training, with specialists from overseas training other staff locally.

Regional Infrastructure Development Fund Grants

5 Yes $9.678 m 1200 Average 94% Improved educational skills and research opportunities. Skills transfer for Indigenous Victorians.

Contracts completed to which the VIPP applied

Contracts/ Regional Value Jobs % Local Skills Transfer Achieved Grants Content

Regional Infrastructure Development Fund

5 Yes $10.674 m Committed 199 Committed Co-location of Latrobe University Average 96.8% and Murray Darling Research Achieved 177 Achieved Centre. Average 95.8% Introduction of new systems and IT hardware into regional Victoria.

Science, Technology and Innovation Infrastructure Grants

1 Yes $4 m Committed 100 Committed Development of photonics and Average 75% high tech electronics, networking Achieved communities Achieved 100 Average 75% Development of simulation software Trialling new broadband applications and services

82 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Office-Based Environmental Impacts

Through the application of progressive sustainable 14. Percentage of employees using public transport, cycling, development principles, in 2003–04 the Department or walking to or from work (>75% of work attendance continued to build on previous successes in environmental days) 81.40% performance. Notes: The Department supports its ongoing commitment to 1–4. Lights and power only minimising its negative impact on the environment through 1. Energy and FTE for 55 Collins St only (less level 37) the continued development of a range of progressive cultural, 2. Energy and Area for 55 Collins St only (less level 37) technological and system changes. 3. Energy for 55 Collins St only (less level 37) 4. Greenhouse gas emissions for 55 Collins St only (less level 37) These changes work towards improving our resource 5. Per cent for 55 Collins St only efficiencies through: 6. Cost for 55 Collins St only (less level 37) 7. FTE and waste calculations for 55 Collins St only. Waste includes – Waste minimisation practices general waste (landfill waste) from May audit (limited sample size) – Energy consumption efficiencies and recycled material 8. FTE and recycled material for 55 Collins St only – Communication and marketing strategies 9. FTE and paper reams for whole of DIIRD – Resource reduction 10. Paper reams for whole of DIIRD – Reusing and recycling strategies 11. FTE and water consumed by 55 Collins St only (air conditioning not included) 12. Water consumed by 55 Collins St only – Environmental purchasing practices. 13. FTE and transport data for whole of DIIRD. Operational cars only, including leased cars from Vic Fleet and CBA and hired cars from Energy State Government Vehicle Pool 1. Units of energy (mega joules) used per Full Time Employee 14. Data from TravelSmart Survey in May 2004 for 55 Collins St only (FTE) 8027.00 2. Units of energy used per unit of office space (mega joules Waste per m2) 319.71 Percentage of general waste (landfill bins) and recycled 3. Total energy usage (gigajoules) 4302.47 material DIIRD (55 Collins St) 2003–04 4. Greenhouse gas emissions (tonnes of CO2 equivalent) 1639.00 5. Green Power – Electricity consumption (% of total) 4.6% 6. Green Power – Electricity consumption (annual cost $) Recycled 52.29% 2484.08

Waste Production 7. Units of waste produced per FTE (kilograms per employee) 224.99 General 47.71% 8. Total units of waste recycled (kilograms) 68,239.33 This chart indicates that 52.29 per cent of waste material is Paper Use recycled and 47.71 per cent goes to land fill. 9. Units of paper used per FTE (reams per employee) 23.84 Paper 10. Total units of paper used (reams) 16,041.65 Total paper reams purchased (A4 equivalent) Water Consumption whole of DIIRD per quarter 2003–04 11. Units of water consumed per FTE (litres per employee) Reams 9461.89 4500 12. Total units of water (litres) 5,487,800.00 4000 30.51 27.84 29.81 3500 Transportation 3000 27.74 69.49 13. Fuel consumption (gigajoules) from passenger vehicles 2500 72.16 per FTE (gigajoules per employee) 14.59 70.19 2000 72.26 13. Associated greenhouse gas emissions per FTE 1500 (tonnes of CO2 equivalent 1.08 1000 13. Total fuel consumption from passenger vehicles 500 (gigajoules) 9816.91 0 13. Total associated greenhouse gas emissions Jul–Sep 03 Oct–Dec 03 Jan–Mar 04 Apr–Jun 04 (tonnes of CO2 equivalent) 726.13 Recycled % Non Recycled % 13. Passenger vehicle trip kilometres associated with Departmental operations per FTE (kilometres per employee) 4202.73 This chart indicates that over 70 per cent of paper purchases 13. Total passenger vehicle trip kilometres associated with contain recycled content. This paper usually contains at least Departmental operations (kilometres) 2,828,354.00 50 per cent recycled material.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 83 Consultancies (including GST) $160,000$495,000 $160,000 Not Completed $160,000 $180,000$484,000 $315,000 $0 Not Completed Not Completed $242,000 13/11/2003 $242,000 Not Completed $308,854 $277,969$169,330 $0 Not Completed$141,873 Not Completed $162,862 $0 $128,786 $6468 30/06/2004 $13,087 Not Completed Not Completed $165,000$550,000 $93,242$172,302 $550,000 $93,242$110,000 $161,302 $550,000 Not Completed $161,302 $0 $84,810 $0 28/02/2004 $25,190 $0 30/04/2004 Not Completed 23/12/2003 $237,111 $237,111 $201,532 $0 30/09/2003 $250,432 Not Completed $176,232 $74,200 Not Completed $350,079 Not Completed $310,924 $39,155 Not Completed $3,593,980 $1,479,624 $2,451,689 $715,100 2004–05 capabilities Innovation Initiative Development Plan implementation of the Corporation of Victoria Development Strategy investment competitors Centre Redevelopment management decision making management decision making Automotive / Aerospace centre Natural Gas Extension Program To undertake a program of research To benchmarks Victoria against other major the Melbourne Exhibition and Convention Evaluation of the Science, Technology and Evaluation of the Science, Technology investigating and assessing Victoria’s design investigating and assessing Victoria’s Melbourne Exhibition and Convention Centre Evison Duncan Tony JollyTony Develop a Procurement Strategy Report for Buckridge Jacqueline Roel Spree provide advice and statistical analysis that To Don Pollock Infrastructure Vic Tourism Steve Aitchison Provide legal advice for contract David Cochrane Business case development for the Wendy McInnesWendy Survey 2003–04 and Holiday Tracking Robert Southern of regulatory Provision advice on the Ernst & Young Keith Hardy Review of Biotechnology Strategic The Allen Consulting Group Price Waterhouse Coopers Parsons Brinkerhoff Roy Morgan Research Booz Allen Hamilton KPMGConcord PlacePWC Plant Roger HusseyLocation John Dixon Feasibility study of establishing the Advice on sale of Overseas Projects Paradigm Advisory Price Waterhouse Coopers KPMG Paul Thomson Provide commercial advice for contract Blake Dawson Waldron Name ofConsultant Consultant Principal Consultancy (including GST) Purpose of (including GST) Cost Approved 2003/2004 End Cost Commitments Expenditure Future Completed Number74 Expenditure Total $2,052,031 Engagement of Consultants $100,000 and under for 2003–04 Engagements of consultants in excess $100,000 for 2003–04

84 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Disclosure of Major Contracts

During the year ended 30 June 2004, the Department did Details of major contracts are disclosed in accordance with not enter into any contracts greater than $10 million in value. the principles of the Freedom of Information Act 1982 and/or Government guidelines and can be viewed at: www.contracts.vic.gov.au

Compliance with the Building Act

The Department is not responsible for any publicly owned pecuniary interest, relevant officers have completed buildings. Accordingly, there is a nil return in relation to declarations for the financial year. ‘Statement of Compliance with building and maintenance provisions of the Building Act 1993’. Shares Held by Senior Officers in a Statutory Authority or Subsidiary Declaration of Pecuniary Interest No officer holds shares as nominee or beneficiary in a In accordance with the general guidelines for declaration of statutory authority or subsidiary.

Financial Review of Operations and Financial Conditions

Five year financial summary 2004 2003 2002 2001 2000 $’000 $’000 $’000 $’000 $’000

Revenue from Government 293,597 393,508 334,753 258,918 253,601 Other revenue 3,936 12,013 22,069 24,112 1,694 Total revenue 297,533 405,521 356,822 283,030 255,295

Total expenses (311,360) (308,192) (320,277) (261,749) (254,997) Net operating result for the reporting period (13,827) 97,329 36,545 21,281 298

Net cash flow from operations (16,778) 96,066 43,940 5,298 1,483

Total assets 210,727 162,207 81,567 59,197 32,305 Total liabilities 35,337 22,199 53,307 25,661 20,050

The Department’s revenue from Government has decreased in Significant financial activities of the Department during the year the current year as a result of significantly lower Regional included: Infrastructure Development Fund (RIDF) revenue being – The implementation of a new commitments system appropriated to the Department during the reporting period. – The introduction of electronic reporting and the roll out of As payment of expenses from the RIDF trust exceeds revenue reporting and analytical tools in the current financial year, the Department has recorded a – Managing the transition to the Australian Equivalents to the net operating loss, lower cashflows from operations and lower International Financial Reporting Standards (IFRS), including: trust assets in the current reporting period as compared to the (i) establishing a project team prior year’s balances. It is anticipated that the balance (ii) reviewing current accounting policies and proposed new remaining in the trust will be fully expended in future years. standards to identify key issues and impacts Machinery of Government restructures, which became (iii) undertaking education and awareness activities effective 1 January 2003 (see note 24 in the Financial (iv) conducting a preliminary review of impact on current Statements) involved a number of outputs transferring to other finance systems and processes. Victorian Government Departments and has resulted in a decrease in other revenue. Details of actual performance of each of the Department’s Output Groups against targeted measures are contained on The increase in the total assets of the Department has resulted pages 53 to 55 of the Annual Report. from higher capital expenditure in relation to the Australian Synchrotron Project ($43.7 million) and the Southern Cross Information on the delivery of services by the Output Groups Office Redevelopment ($7.0 million). (See note 8 in the of the Department, including significant activities and Financial Statements). achievements are outlined in section 2 of the Annual Report (pages 51 to 52).

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 85 Summary of Additional Information Available on Request

The following information is available on request. – Details of assessments and improvement measures – A statement that declarations of private interests have been undertaken to improve the occupational health and safety of duly completed by all relevant officers employees – Details of shares held by senior officers in a statutory – General statement on industrial relations and details of authority or subsidiary industrial accidents and disputes – Details of DIIRD publications – Details of major committees sponsored by the Department – Details of major promotional, public relations and marketing This information is available from: activities undertaken by DIIRD Director – Details of changes in prices, fees, charges and rates for the Corporate Governance and Administration financial year Department of Innovation Industry and Regional Development – Details of any major external reviews carried out on DIIRD Level 9, 55 Collins Street – Details of major research and development activities Melbourne Victoria 3000 – Details of overseas visits undertaken Telephone (03) 9651 9862

Grants and Related Assistance

As in previous years, the Department has provided In 2003–04 financial assistance of $42.2 million was provided assistance to companies and organisations. Financial to the companies listed below (details of investment grants assistance provided in 2003–04 was as follows: have not been disclosed as they are deemed commercial in confidence). Investment and Industry Related Grants The Department’s investment attraction activities include facilitative or financial assistance.

Company Company

AF Gason Pty Ltd Holden Ltd Aerospace Australia Ltd IBM Global Services Australia Ltd Aerospace Foundation of Australia Ltd Independent Distillers (Australia) Pty Ltd Air International Pty Ltd Kodak Australasia Albins Off Road Gear Leighton Contractors Pty Ltd Associated Kiln Driers Pty Ltd Lemnos Foods Pty Ltd Australian Arrow Pty Ltd Lyco Industries Pty Ltd Australian Eatwell Pty Ltd Mahle-ACL Piston Products Pty Ltd Australian Fashion Innovators Pty Ltd MCK Pacific Pty Ltd Blue Ribbon Grain Melbatex Castle Bacon Pty Ltd NEC Australia Pty Ltd Ceres Natural Foods Pty Ltd Pacific Internet (Australia) Pty Ltd Computershare Limited Paton’s Macadamia Plantations Pty Ltd Confoil Pty Ltd Patties Foods Pty Ltd CSL Ltd Plantic Technologies Limited DSL Group Pty Ltd Pracom Limited East Gippsland Shire Council Qantas Airways Limited Epping Timber Prefab Co Pty Ltd Schiavello Group Pty Ltd Flavorite Hydroponic Tomatoes Pty Ltd Tarago River Cheese Co Pty Ltd Foxtel Management Pty Ltd Tata Sons Ltd Frontline Australasia Pty Ltd Terminals Pty Ltd GE & DA Kennedy Pty Ltd Thales ATM Pty Ltd GlaxoSmithKline Australia Pty Ltd Toyota Motor Corporation Australia Ltd Green Lands Holdings Pty Ltd Vegco Pty Ltd Growco Limited Visy Industries Australia Pty Ltd Hepburn Shire Council Whittley Marine Industries Pty Ltd

86 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Business Development Grants

The Department provided assistance through a number of programs to companies and organisations to support enterprise improvement, export growth, business development and promotional activities.

The Department also delivered a range of enterprise improvement services to Victorian companies to improve the efficiency and effectiveness of their operations in areas including strategic planning and export.

Financial assistance of $6.8 million was provided to the following companies and organisations.

Organisation Funding Type Payment $

A & B Knitwear Pty Ltd Agenda for New Manufacturing 4,097 A & L Windows Pty Ltd Enterprise Improvement Services 11,500 AD & VR Henr Enterprise Improvement Services 7,500 AA All Shape Pallets Pty Ltd Enterprise Improvement Services 11,250 Abar Rubber Pty Ltd Enterprise Improvement Services 6,500 ADI Ltd Agenda for New Manufacturing 20,000 Advance Sprayers Pty Ltd Enterprise Improvement Services 8,500 Advanced Repetition Technologies Pty Ltd Agenda for New Manufacturing 17,971 Alberton Timber & Treatment Plant Enterprise Improvement Services 6,469 Alex Gillan Pty Ltd Enterprise Improvement Services 4,000 All Saints Estate Pty Ltd Enterprise Improvement Services 5,700 Alyssa Ann Peel – Trading as Maiike Agenda for New Manufacturing 5,985 Amanda and Drew Pty Ltd Export Program 3,000 Applied Sorting Technologies Pty Ltd Enterprise Improvement Services 11,500 Apposite Holdings Pty Ltd Victorian Transport and Logistics 5,000 Arctec Services Pty Ltd Enterprise Improvement Services 10,500 Association for Manufacturing Excellence – Australia Region Inc Agenda for New Manufacturing 50,000 Athlegen Pty Ltd Victorian Transport and Logistics 5,000 AusBiotech Ltd Agenda for New Manufacturing 30,000 AusBiotech Ltd Export Program 10,000 Austbloom Pty Ltd Enterprise Improvement Services 11,500 Aust-China Group Pty Ltd Sponsorships 20,000 Australasian Institute of Metal Finishing Enterprise Improvement Services 4,875 Australia Pacific Airports (Melbourne) Pty Ltd Funding Support for Study 4,750 Australian Alpine Valleys Agribusiness Forum Inc Enterprise Improvement Services 3,938 Australian Associated Motor Insurers Ltd (AAMI) Victorian Transport and Logistics 5,000 Australian Automotive Aftermarket Association Ltd Export Program 6,000 Australian Consumer & Specialty Products Association Sponsorships 5,000 Australian Die Casting Association Export Program 28,603 Australian Electrical and Electronic Manufacturers Association Ltd Agenda for New Manufacturing 20,000 Australian Electrical and Electronic Manufacturers Association Ltd Sponsorships 4,000 Australian Exhibition Services Pty Ltd Sponsorships 5,265 Australian Flower Export Council Inc Export Program 5,000 Australian Foundry Institute (Victorian Division) Inc Export Program 6,000 Australian Gold Council Sponsorships 8,000 Australian Industry & Defence Network Inc – Victoria Agenda for New Manufacturing 3,000 Australian Industry Defence Network – Victoria Agenda for New Manufacturing 30,000 Australian Industry Defence Network – Victoria Export Program 30,000 Australian International Foods Pty Ltd Enterprise Improvement Services 10,250 Australian Manufacturing Technology Institute Ltd Agenda for New Manufacturing 20,000 Australian Manufacturing Technology Institute Ltd Export Program 29,600 Australian Mower Company (Manufacturing) Pty Ltd Enterprise Improvement Services 11,000 Australian Native Nuts & Chocolates Pty Ltd Agenda for New Manufacturing 4,550 Australian Retailers Association Sponsorships 15,000 Australian Shellfish Producers Pty Ltd Enterprise Improvement Services 9,975 Australian Specialist Cheesemakers’ Association (ASCA) Enterprise Improvement Services 4,000 Australian Specialist Cheesemakers’ Association (ASCA) Sponsorships 41,500 Australian Technical Millers Association (Victorian Division) Sponsorships 5,000 Australian Trade Commission Export Program 188,257 Australian Vinyls Corporation Ltd Enterprise Improvement Services 4,000 Avonmore Estate Enterprise Improvement Services 2,234 Backwell IXL Pty Ltd Victorian Transport and Logistics 5,000 Baking Industry Association of Victoria Inc. Sponsorships 8,633

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 87 Business Development Grants continued

Organisation Funding Type Payment $

Bantec International Pty Ltd Agenda for New Manufacturing 19,514 Banyule City Council Enterprise Improvement Services 21,000 Bartter Enterprises Pty Ltd Environment Program 15,950 Baw Baw Shire Council Enterprise Improvement Services 28,500 Bayside City Council Enterprise Improvement Services 7,500 Bayside Health Victorian Transport and Logistics 10,000 Bead Foods Pty Ltd Export Program 24,000 Belvedere Fruit Growers Export Program 24,000 Berklee Limited Enterprise Improvement Services 11,500 Biomedtech Australia Pty Ltd Enterprise Improvement Services 11,500 Blue Circle Southern Cement Ltd Agenda for New Manufacturing 13,250 Bluescope Steel Ltd Victorian Transport and Logistics 5,000 Boating Industry Association of Victoria Ltd Events Support 50,000 Boating Industry Association of Victoria Ltd Export Program 30,000 Boomaroo Nurseries Pty Ltd Victorian Transport and Logistics 5,000 Brearley Architects and Urban Designers Pty Ltd Enterprise Improvement Services 4,000 Briggs & Stratton Australia Pty Ltd Victorian Transport and Logistics 5,000 Buontempo Enterprises Pty Ltd Enterprise Improvement Services 11,500 Burder Industries Pty Ltd Agenda for New Manufacturing 2,049 Burder Industries Pty Ltd Enterprise Improvement Services 12,750 CJ & MJ Meade Pty Ltd Agenda for New Manufacturing 14,184 Cablex Pty Ltd Agenda for New Manufacturing 15,000 Cabot Australasia Pty Ltd Environment Program 14,000 Cardinia Shire Council Enterprise Improvement Services 9,000 Casalare Specialty Pasta Pty Ltd Enterprise Improvement Services 1,988 Cellestis Limited Enterprise Improvement Services 11,500 Central Goldfields Shire Council Sponsorships 1,500 Chelated Laboratories Pty Ltd Enterprise Improvement Services 7,500 City of Ballarat Enterprise Improvement Services 39,000 City of Boroondara Enterprise Improvement Services 7,500 City of Boroondara Enterprise Improvement Services 15,000 City of Greater Dandenong Agenda for New Manufacturing 60,000 City of Greater Geelong Agenda for New Manufacturing 7,500 City of Greater Geelong Enterprise Improvement Services 15,000 City of Knox Enterprise Improvement Services 15,000 City of Maroondah Sponsorships 1,500 City of Melbourne Sponsorships 80,000 City of Monash Enterprise Improvement Services 28,500 City of Port Phillip Enterprise Improvement Services 15,000 City of Whitehorse Enterprise Improvement Services 7,500 City of Wodonga Enterprise Improvement Services 9,000 Clean Air Society of Australia & New Zealand Inc Sponsorships 5,000 Clean TeQ Pty Ltd Enterprise Improvement Services 11,500 Clean TeQ Pty Ltd Export Program 24,000 Clifford Hallam Pharmaceuticals Pty Ltd eCommerce Program 25,000 Close the Loop Ltd Enterprise Improvement Services 11,491 Clubs Victoria Inc eCommerce Program 19,700 Colac Otway Shire Council Agenda for New Manufacturing 3,000 Colac Otway Shire Council Sponsorships 1,818 Commercial Interactive Media Pty Ltd Enterprise Improvement Services 11,500 Confectionery Manufacturers of Australasia Limited Enterprise Improvement Services 15,000 Confectionery Manufacturers of Australasia Limited Export Program 30,000 Confirm Systems Pty Ltd Enterprise Improvement Services 4,000 Conteco Pty Ltd Enterprise Improvement Services 8,750 Corangamite Shire Council Sponsorships 1,500 Creative Informatics Pty Ltd Enterprise Improvement Services 7,500 CRF (Colac Otway) Pty Ltd Agenda for New Manufacturing 20,000 CSIRO Agenda for New Manufacturing 20,000 Cyco Technology Pty Ltd Enterprise Improvement Services 6,575 DJ Young Pty Ltd Agenda for New Manufacturing 9,875 Dairy Research & Development Corporation Enterprise Improvement Services 9,100

88 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Organisation Funding Type Payment $

D’Angelo Engineering Pty Ltd Enterprise Improvement Services 4,000 Dendy Pharmaceuticals Pty Ltd Enterprise Improvement Services 3,750 Department of Industry Tourism and Resources Export Program 20,000 DES (Vic) Pty Ltd Enterprise Improvement Services 7,500 Don Mathieson & Staff Glass Pty Ltd Agenda for New Manufacturing 6,250 Duxtron Pty Ltd Enterprise Improvement Services 3,750 Eagle Remac (Aust) Pty Ltd Enterprise Improvement Services 11,500 East Gippsland Shire Council Enterprise Improvement Services 27,000 Eaststyle (Aust) Pty Ltd Enterprise Improvement Services 11,500 Eberhard Kunze – Trading as EV Olives Agenda for New Manufacturing 5,330 Eco Caviar Pty Ltd Enterprise Improvement Services 4,000 Envotec Pty Ltd Agenda for New Manufacturing 7,500 Excel Pacific Diecasting Pty Ltd Enterprise Improvement Services 7,500 Fallshaw Holdings Pty Ltd Enterprise Improvement Services 4,000 Family Reading Publications Pty Ltd Enterprise Improvement Services 11,400 Federation Health Gippsland Business Awards Sponsorships 2,000 Federation of Automotive Products Manufacturers Ltd Agenda for New Manufacturing 180,000 Flagship Pty Ltd Enterprise Improvement Services 10,300 Flavour Makers Pty Ltd Enterprise Improvement Services 8,188 Flicker’s Australia Pty Ltd Enterprise Improvement Services 4,250 Flower Export Council of Australia Enterprise Improvement Services 9,450 FMP Group (Australia) Pty Ltd Agenda for New Manufacturing 40,000 Food Industry Machinery Manufacturers Association Funding Support 50,000 Food Science Australia Sponsorships 15,000 Fowler Engineering Group Pty Ltd Enterprise Improvement Services 3,750 Frankston & Mornington Peninsula Awards Inc Sponsorships 1,500 Fretan Pty Ltd Agenda for New Manufacturing 17,019 Frontline Australasia Pty Ltd Enterprise Improvement Services 11,500 Furnishing Industry Association Aust Enterprise Improvement Services 17,500 Furnishing Industry Association Aust Events Support 10,000 Furnishing Industry Association Aust Export Program 3,000 Furnishing Industry Association of Australia Ltd Export Program 36,000 Fusion Hire Services Pty Ltd Enterprise Improvement Services 7,500 Fyna Foods Australia Pty Ltd Agenda for New Manufacturing 7,500 GBC Scientific Equipment Pty Ltd Enterprise Improvement Services 5,750 GCD International Pty Ltd Enterprise Improvement Services 7,500 Geelong Chamber of Commerce Enterprise Improvement Services 2,724 Geelong Chamber of Commerce Export Program 8,700 Geelong Chamber of Commerce Sponsorships 8,100 Gekko Systems Pty Ltd Agenda for New Manufacturing 9,017 General Practice Education Australia Ltd Enterprise Improvement Services 10,000 Gippsland Field Days Export Program 26,000 Global Roto-Moulding Pty Ltd Enterprise Improvement Services 4,000 GMIC Ltd Events Support 14,707 Goldfields of Victoria Sponsorships 1,000 Goolgowi Australia Pty Ltd Agenda for New Manufacturing 4,000 Goulburn Valley Fresh Fruit Pty Ltd Enterprise Improvement Services 6,528 Grizzly Engineering Pty Ltd Victorian Transport and Logistics 5,000 Gundowring Pty Ltd Enterprise Improvement Services 5,765 H F Deutscher Pty Ltd Enterprise Improvement Services 2,500 Hella Australia Pty Ltd Agenda for New Manufacturing 13,850 Hellweg International Pty Ltd Enterprise Improvement Services 7,500 Henry Haymes Proprietary Limited Victorian Transport and Logistics 5,000 Heritage Fine Chocolates (Aust) Pty Ltd Enterprise Improvement Services 11,438 Herma Projection Screen Technology Pty Ltd Enterprise Improvement Services 5,000 Hills Industries Ltd Victorian Transport and Logistics 5,000 HJF (Aust) Pty Ltd Agenda for New Manufacturing 20,000 HJF (Aust) Pty Ltd Enterprise Improvement Services 7,500 iComply Pty Ltd Enterprise Improvement Services 7,250 Icon Industries Pty. Ltd. Enterprise Improvement Services 7,300 IDP Education Australia Ltd Sponsorship 35,000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 89 Business Development Grants continued

Organisation Funding Type Payment $

IM & VA Ellis Enterprise Improvement Services 3,825 Industrial Process Controls Ltd Agenda for New Manufacturing 15,000 Information Technology Internationalisation Group Pty Ltd Enterprise Improvement Services 4,900 Integral Furniture Enterprise Improvement Services 8,500 Integrated Logistics Services Pty Ltd Agenda for New Manufacturing 25,000 International Trade Show Management Pty Ltd Export Program 25,000 ITW Australia Pty Ltd Enterprise Improvement Services 10,000 JG King Pty Ltd Enterprise Improvement Services 3,636 JA Cox Engineering Pty Ltd Enterprise Improvement Services 7,250 James Hoctor Enterprises Pty Ltd Enterprise Improvement Services 9,725 Jensen’s Choice Foods Pty Ltd Enterprise Improvement Services 5,329 JH and SM Schroen Enterprise Improvement Services 3,750 John Deere Ltd Victorian Transport and Logistics 5,000 Jordel Pty Ltd Enterprise Improvement Services 11,500 JS & SL Boyles Enterprise Improvement Services 3,900 Karinga Furniture Pty Ltd Agenda for New Manufacturing 26,147 Katz Petfoods Company Pty Ltd Agenda for New Manufacturing 10,000 KCS Pty Ltd Enterprise Improvement Services 4,000 Keith Hamilton and Sons Pty Ltd Enterprise Improvement Services 11,475 Kinetic Engineering Services Pty Ltd Agenda for New Manufacturing 1,253 King Valley Vignerons Inc Enterprise Improvement Services 13,669 Kluwell Publications Pty Ltd Enterprise Improvement Services 3,150 La Trobe University Agenda for New Manufacturing 57,200 Landmark Operations Ltd Victorian Transport and Logistics 5,000 Larmon Pty Ltd Enterprise Improvement Services 4,000 Latrobe City Council Enterprise Improvement Services 36,000 Laucke Flour Mills Pty Ltd Enterprise Improvement Services 3,375 Lean Enterprise Australia Inc Agenda for New Manufacturing 28,000 Lemnos Foods Pty Ltd Enterprise Improvement Services 11,500 LNB Pty Ltd Enterprise Improvement Services 10,700 Macedon Ranges Business Excellence Awards Sponsorships 455 Macspred Pty Ltd Enterprise Improvement Services 11,500 Mancine Cosmetics Pty Ltd Enterprise Improvement Services 3,600 Marand Precision Engineering Pty Ltd Agenda for New Manufacturing 15,000 Marc F Pascal – Trading As M2 Products Agenda for New Manufacturing 7,870 Marplex Australia Pty Ltd Agenda for New Manufacturing 10,000 Marsden & McGain Pty Ltd Agenda for New Manufacturing 3,466 Master Builders Australia Inc Agenda for New Manufacturing 97,761 MDFI Inc Agenda for New Manufacturing 23,850 Melbourne Fashion Festival Ltd Events Support 517,100 Melbourne Food and Wine Festival Inc Events Support 448,000 Melbourne Market Authority Sponsorships 5,000 Mercury Communications Group Pty Ltd Victorian Transport and Logistics 10,000 Metalicus Australia Pty Ltd Enterprise Improvement Services 8,500 Metricon Homes Pty Ltd Enterprise Improvement Services 16,386 MF LF & DJ Hayes Enterprise Improvement Services 8,775 MIAB Technology Pty Ltd Agenda for New Manufacturing 20,000 MIAB Technology Pty Ltd Enterprise Improvement Services 11,500 Mid West Earthmovers Pty Ltd Enterprise Improvement Services 11,500 Mildura Chamber of Commerce Inc Sponsorships 1,200 Mildura Murray Outback Tourism Inc Sponsorships 10,000 Mildura Office Equipment & Supplies Pty Ltd Enterprise Improvement Services 4,000 Mills Display Pty Ltd Enterprise Improvement Services 6,900 Minifab (Aust) Pty Ltd Agenda for New Manufacturing 25,000 Miss Emily Aboriginal Art Sponsorships 500 MJ Smyth & Sons Pty Ltd Agenda for New Manufacturing 2,680 Monash University CRC Support Program 45,000 Monash University – Dept. of Mechanical Engineering Agenda for New Manufacturing 15,000 Mornington Peninsula Vignerons Association Inc. Enterprise Improvement Services 6,975 Mount Alexander Shire Council Enterprise Improvement Services 15,000 Mount Glenvale Pty Ltd Enterprise Improvement Services 10,250

90 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Organisation Funding Type Payment $

Moyne Shire Council Sponsorships 2,727 Mr Whippy Pty Ltd Enterprise Improvement Services 3,750 Murray Goulburn Co-op Co Ltd Agenda for New Manufacturing 20,000 Murray Goulburn Co-op Co Ltd Enterprise Improvement Services 8,650 Murrindindi Regional Tourism Association Inc Enterprise Improvement Services 15,000 N & K Duell Pty Ltd Enterprise Improvement Services 4,000 Nash Tank and Pipe Services Pty Ltd Enterprise Improvement Services 6,227 NC Cable Pty Limited Enterprise Improvement Services 7,500 Nestlé Peters Ice Cream Victorian Transport and Logistics 5,000 New Sector Engineering Pty Ltd Enterprise Improvement Services 10,000 Nillumbik Shire Council Enterprise Improvement Services 27,000 NMTC Pty Ltd Enterprise Improvement Services 3,930 Northern Melbourne Institute of TAFE Events Support 3,258 Novatech Controls Aust Pty Ltd Enterprise Improvement Services 4,000 Novatech Controls Aust Pty Ltd Environment Program 14,000 Nutri-Green Pty Ltd Enterprise Improvement Services 8,650 Oasis Tension Structures (Australia) Pty Ltd Enterprise Improvement Services 14,000 Offshore Containers International Pty Ltd Sponsorships 1,000 Onga Pty Ltd Enterprise Improvement Services 1,875 Optec Pty Ltd Enterprise Improvement Services 7,750 PF Nicholson Corporation Enterprise Improvement Services 6,000 Pacifica Group Technologies Pty Ltd Agenda for New Manufacturing 13,910 Packaging Needs Pty Ltd Agenda for New Manufacturing 3,125 Pains Wessex Australia Pty Ltd Agenda for New Manufacturing 18,435 Paroissien, Grant and Associates Pty Ltd Export Program 15,000 Pasta Master Pty Ltd Agenda for New Manufacturing 30,000 Pathfinder Australia Pty Ltd Enterprise Improvement Services 11,500 Paton’s Macadamia Plantations Pty Ltd Agenda for New Manufacturing 14,825 Peerless Jal Pty Ltd Enterprise Improvement Services 7,900 Pengala Pty Ltd Agenda for New Manufacturing 20,000 Pengala Pty Ltd Enterprise Improvement Services 3,750 Peter Bristow and Associates Enterprise Improvement Services 1,625 Peter Day & Associates Pty Ltd Sponsorships 45,000 Peter M O’Malley Agenda for New Manufacturing 2,291 Philemon Pty Ltd Agenda for New Manufacturing 12,600 Pilkington (Australia) Ltd Agenda for New Manufacturing 19,117 Pinegro Products Pty Ltd Enterprise Improvement Services 10,000 Pioneer Electronics Australia Pty Ltd Victorian Transport and Logistics 5,000 Placard Pty Ltd Enterprise Improvement Services 13,875 Plastics & Chemicals Industries Association Agenda for New Manufacturing 29,529 Playspace Playgrounds Pty Ltd Agenda for New Manufacturing 5,794 Playspace Playgrounds Pty Ltd Enterprise Improvement Services 7,125 Popina (Vic) Pty Ltd Enterprise Improvement Services 3,825 PPG Industries Australia Pty Ltd Victorian Transport and Logistics 5,000 Pressure Equipment Association (PEAI) Inc Agenda for New Manufacturing 7,250 Prestige Foods International Pty Ltd Export Program 2,000 Private Formula International Pty Ltd Agenda for New Manufacturing 10,000 Private Formula International Pty Ltd Enterprise Improvement Services 14,000 Process Group Pty Ltd Export Program 16,000 Pyrenees Pty Ltd Enterprise Improvement Services 5,091 Pyrenees Shire Council Sponsorships 5,455 Qenos Holdings Pty Ltd Victorian Transport and Logistics 5,000 QSR International Pty Ltd Enterprise Improvement Services 7,500 RA Printing Pty Ltd Enterprise Improvement Services 6,000 RA Bell & Co Pty Ltd Enterprise Improvement Services 7,500 Rakumba Pottery Pty Ltd Enterprise Improvement Services 5,800 Rapidfil Pty Ltd Agenda for New Manufacturing 12,732 RBA Computing Services Pty Ltd Enterprise Improvement Services 11,500 Redflex Communications Systems Pty Ltd Enterprise Improvement Services 7,500 Redgum Technologies Pty Ltd Enterprise Improvement Services 11,500 Reed Business Information Pty Ltd Export Program 30,000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 91 Business Development Grants continued

Organisation Funding Type Payment $

Regional Events Australia Sponsorships 26,555 Reid Stockfeeds Pty Ltd Enterprise Improvement Services 7,500 Reid Stockfeeds Pty Ltd Victorian Transport and Logistics 5,000 Repeat Products Pty Ltd Agenda for New Manufacturing 7,118 Repeat Products Pty Ltd Enterprise Improvement Services 9,000 Retail Management Systems Pty Ltd Enterprise Improvement Services 11,500 Riverina Boiler & Combustion Service Pty Ltd Enterprise Improvement Services 3,900 RJ & LJ Okely Enterprise Improvement Services 3,975 RMIT University Agenda for New Manufacturing 25,000 Rodpak Pty Ltd Enterprise Improvement Services 7,500 Rofin Australia Pty Ltd Enterprise Improvement Services 11,500 Ronson Gears Pty Ltd Agenda for New Manufacturing 8,909 Rosevear Engineering Pty Ltd Enterprise Improvement Services 4,432 Ryley Management Pty Ltd Enterprise Improvement Services 10,000 SJ Harrison Nominees Pty Ltd Enterprise Improvement Services 7,714 Safetech Pty Ltd Agenda for New Manufacturing 15,000 Sahara Group Pty Ltd Agenda for New Manufacturing 4,000 Sarb Enterprises Pty Ltd Enterprise Improvement Services 8,000 Science Industry Australia Inc Agenda for New Manufacturing 58,000 Science Industry Australia Inc Export Program 36,000 SCS Industries Pty Ltd Agenda for New Manufacturing 15,000 SCS Plastics Pty Ltd Enterprise Improvement Services 11,250 Seafood Industry Victoria Inc Export Program 12,075 Sealane Vic Pty Ltd Enterprise Improvement Services 4,000 Sharpen Engineering Pty Ltd Enterprise Improvement Services 4,000 Shire of Yarra Ranges Enterprise Improvement Services 25,500 Sigma Company Limited Victorian Transport and Logistics 5,000 Society of Automotive Engineers – Australasia Sponsorships 10,000 South Gippsland Shire Council Enterprise Improvement Services 22,500 South West Research Pty Ltd Enterprise Improvement Services 7,500 Southern Advanced Plants Pty Ltd Enterprise Improvement Services 3,623 Spinal Support Bed Systems Pty Ltd Enterprise Improvement Services 4,000 Spotters Shades Pty Ltd Agenda for New Manufacturing 10,000 Spotters Shades Pty Ltd Enterprise Improvement Services 18,250 Stephen Pasture Seeds Pty Ltd Enterprise Improvement Services 11,250 Stoney Creek Oil Products Pty Ltd Enterprise Improvement Services 11,400 Strathbogie Shire Council Export Program 8,966 Street Ryan and Associates Pty Ltd Export Program 40,000 Sunraysia Mallee Economic Development Board Inc Enterprise Improvement Services 12,000 Surf Coast Shire Enterprise Improvement Services 30,000 Swift Packaging Pty Ltd Enterprise Improvement Services 9,750 Swinburne University of Technology Agenda for New Manufacturing 77,000 Swinburne University of Technology Sponsorships 10,000 Symex Holdings Limited Agenda for New Manufacturing 10,000 Synergy Farms Pty Ltd Enterprise Improvement Services 4,000 Sypaq Systems Pty Ltd Enterprise Improvement Services 7,500 Tarrawarra Estate Pty Ltd Agenda for New Manufacturing 15,000 TCP Pty Ltd Enterprise Improvement Services 3,000 Telstra Corporation Ltd Sponsorships 57,273 Tesbury Meats Pty Ltd Enterprise Improvement Services 7,500 The Australian Industry Group Agenda for New Manufacturing 35,000 The Australian Industry Group Events Support 30,000 The Australian Industry Group Export Program 56,000 The Australian Industry Group Sponsorships 15,000 The Australian Turntable Co Pty Ltd Enterprise Improvement Services 8,500 The Lentil Company Pty Ltd Enterprise Improvement Services 11,500 The Master Plumbers’ and Mechanical Services Association of Australia Enterprise Improvement Services 15,000 The Royal Agricultural Society of Victoria Ltd Sponsorships 14,810 The Textile Institute (Southern Australia Section) Inc Enterprise Improvement Services 2,888 The Textile Institute (Southern Australia Section) Inc Sponsorships 10,000 The Winemakers of Rutherglen Inc Enterprise Improvement Services 3,375

92 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Organisation Funding Type Payment $

Thermofilm Australia Pty Ltd Enterprise Improvement Services 6,000 Timber Training Creswick Ltd Enterprise Improvement Services 8,000 Tonik Pty Ltd Enterprise Improvement Services 3,000 Tooling Industry Forum of Australia Agenda for New Manufacturing 200,000 Tooling Industry Forum of Australia Export Program 30,380 Tosol Fashions International Pty Ltd Enterprise Improvement Services 4,000 Total Tooling Co Pty Ltd Enterprise Improvement Services 11,500 Tour Hosts Pty Ltd Sponsorships 5,000 Toyota Tsusho (Australasia) Pty Ltd Victorian Transport and Logistics 10,000 Tractor & Machinery Association of Australia Enterprise Improvement Services 4,500 Treviso Enterprises Pty Ltd Export Program 15,000 Trimas Corporation Pty Ltd Victorian Transport and Logistics 5,000 Ultimate Medical Pty Ltd Enterprise Improvement Services 7,500 Ultracut Tools Pty Ltd Enterprise Improvement Services 7,100 Ultraspin Technology Pty Ltd Enterprise Improvement Services 4,000 Unibic Australia Pty Ltd Agenda for New Manufacturing 19,000 Universal Brands Pty Ltd Enterprise Improvement Services 11,500 University of Melbourne Agenda for New Manufacturing 15,000 V & P Fertilizers Pty Ltd Agenda for New Manufacturing 27,000 VenueComm Pty Limited Enterprise Improvement Services 4,000 Victorian & Murray Valley Vine Improvement Association Inc. Enterprise Improvement Services 8,250 Victorian Airfreight Council Ltd Funding Support 70,000 Victorian Association of Forest Industries Export Program 52,000 Victorian Chemical Company Pty Ltd Enterprise Improvement Services 9,068 Victorian Mariculture Developments Pty Ltd Agenda for New Manufacturing 7,305 Victorian Minerals and Energy Council Inc Sponsorships 6,000 Victorian Olive Oil Project Limited Enterprise Improvement Services 11,500 Victorian Process Manufacturing Industries Training Board Inc Funding Support 16,870 Victorian Transport Association Inc Agenda for New Manufacturing 25,000 Victorian Wine Industry Association Inc Events Support 50,000 W Span Pty Ltd Export Program 21,676 Wandin Valley Farms Enterprise Improvement Services 4,000 Wangaratta Rural City Council Enterprise Improvement Services 10,000 Warrabilla Wines Pty Ltd Enterprise Improvement Services 7,500 Welding Technology Institute of Australia Agenda for New Manufacturing 45,000 Wellington Shire Council Enterprise Improvement Services 21,000 Wellington Shire Council Export Program 8,925 Wellington Shire Council Sponsorships 3,000 Western Melbourne Regional Economic Development Organisation Limited Events Support 391 Whakaari Nominees Pty Ltd Enterprise Improvement Services 2,250 Whittley Marine Industries Pty Ltd Agenda for New Manufacturing 20,000 Wildflowers Australia Ltd Sponsorships 2,500 Willow Lingerie Pty Ltd Agenda for New Manufacturing 1,892 Wilsolve Pty Ltd Enterprise Improvement Services 7,750 Wilson Transformer Co Pty Ltd Agenda for New Manufacturing 7,500 Wimmera Development Association Inc Sponsorships 2,000 Wind Power Pty Ltd Export Program 24,000 Woodger Enterprises Pty Ltd Export Program 82,000 Worn Gundidj Aboriginal Co-operative Ltd Enterprise Improvement Services 7,000 Yarra Valley Wine Growers Association Inc Enterprise Improvement Services 14,625

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 93 Regional Development Victoria Grants

Regional Development Victoria (RDV) provided financial assistance through a broad range of programs aiding economic and community development in regional Victoria. Assistance included funding for economic development and infrastructure projects and regional community events.

Financial assistance of $9.7 million was provided to the following companies and organisations.

Organisation Funding Type Payment $

200th Anniversary of Victoria’s First European Settlement – Sorrento 1803–2003 Inc Living Regions Living Suburbs 10,000 Adventure Australia Foundation Inc Rural Community Events and Development Program 1,750 Alpine Shire Council Bushfire Recovery Fund 428,750 Alpine Shire Council Council and Regional Development Body Program 6,250 Alpine Shire Council Rural Leadership & Community Events 1,500 Alpine Shire Council Rural Leadership & Community Events 2,936 Alpine Valley Vignerons Inc Rural Leadership & Community Events 6,945 Ararat Rural City Council Rural Leadership & Community Events 7,400 Ararat Rural City Council Council and Regional Development Body Program 6,250 Ararat Rural City Council Living Regions Living Suburbs 12,500 Baking Industry Association of Victoria Inc Drought Assistance Packages 10,000 Ballarat & District Aboriginal Co-operative Ltd Rural Leadership & Community Events 875 Ballarat Football League Inc Rural Leadership & Community Events 3,750 Banyule City Council Council and Regional Development Body Program 19,515 Bass Coast Shire Council Council and Regional Development Body Program 6,250 Bass Coast Shire Council Drought Assistance Packages 2,480 Bass Coast Shire Council Living Regions Living Suburbs 125,000 Bass Coast Shire Council Rural Leadership & Community Events 1,000 Baw Baw Shire Council Council and Regional Development Body Program 88,721 Baw Baw Shire Council Drought Assistance Packages 2,300 Baw Baw Shire Council Living Regions Living Suburbs 215,250 Benalla Rural City Council and Regional Development Body Program 6,250 Benalla Rural City Drought Assistance Packages 8,457 Benalla Rural City Regional Economic Development 68,500 Bendigo Garden Club Inc Rural Leadership & Community Events 1,550 Bendigo Youth Choir Inc Rural Leadership & Community Events 2,500 Berry Street Victoria Inc Drought Assistance Packages 30,000 Borough of Queenscliffe Council and Regional Development Body Program 6,250 Bright and District Chamber of Commerce Inc Drought Assistance Packages 4,854 Brotherhood of St Laurence Drought Assistance Packages 25,000 Buchan Rodeo Committee Inc Rural Leadership & Community Events 8,000 Buda Historic Home & Garden Inc Drought Assistance Packages 10,000 Buloke Shire Council Council and Regional Development Body Program 6,250 Buloke Shire Council Living Regions Living Suburbs 4,710 Campaspe Shire Council Council and Regional Development Body Program 6,250 Campaspe Shire Council Drought Assistance Packages 13,206 Campaspe Shire Council Regional Economic Development 148,250 Campaspe Shire Council Rural Leadership & Community Events 14,063 Cardinia Shire Council Council and Regional Development Body Program 63,000 Cardinia Shire Council Living Regions Living Suburbs 140,000 Central Goldfields Shire Council Council and Regional Development Body Program 6,250 Central Goldfields Shire Council Drought Assistance Packages 6,000 Central Goldfields Shire Council Rural Leadership & Community Events 2,000 Central Goldfields Shire Council Rural Leadership & Community Events 3,613 Central Murray Area Consultative Committee Inc Council and Regional Development Body Program 55,471 Ceres Natural Foods Pty Ltd Regional Economic Development 116,000 City of Ballarat Council and Regional Development Body Program 6,250 City of Ballarat Drought Assistance Packages 3,000 City of Ballarat Regional Economic Development 80,348 City of Brimbank Living Regions Living Suburbs 21,598 City of Casey Living Regions Living Suburbs 50,000 City of Casey Rural Leadership & Community Events 1,750 City of Greater Bendigo Council and Regional Development Body Program 6,250 City of Greater Bendigo Regional Economic Development 29,745 City of Greater Bendigo Rural Leadership & Community Events 3,000

94 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Organisation Funding Type Payment $

City of Greater Geelong Council and Regional Development Body Program 106,250 City of Greater Geelong Regional Economic Development 54,250 City of Greater Shepparton Council and Regional Development Body Program 6,250 City of Greater Shepparton Drought Assistance Packages 17,715 City of Greater Shepparton Living Regions Living Suburbs 300,000 City of Greater Shepparton Regional Economic Development 21,750 City of Melbourne Council and Regional Development Body Program 12,500 City of Monash Living Regions Living Suburbs 47,250 City of Warrnambool Council and Regional Development Body Program 16,250 City of Whittlesea Council and Regional Development Body Program 10,125 City of Wodonga Council and Regional Development Body Program 18,750 City of Wodonga Rural Leadership & Community Events 5,000 Colac Otway Shire Council Council and Regional Development Body Program 6,250 Colac Otway Shire Council Regional Economic Development 15,000 Colac Otway Shire Council Rural Leadership & Community Events 4,000 Corangamite Shire Council Council and Regional Development Body Program 6,250 Corangamite Shire Council Living Regions Living Suburbs 345,000 Corio Community Sports Club Inc Rural Leadership & Community Events 5,625 Creswick & District Development Association Inc Drought Assistance Packages 5,000 Creswick & District Development Association Inc Rural Leadership & Community Events 2,125 Creswick Woollen Mills Pty Ltd Community Regional Industry Skills Program 7,350 Department of Sustainability and Environment Living Regions Living Suburbs 75,000 Disability Advocacy and Information Service Inc Rural Leadership & Community Events 1,500 Donald 2000 Inc Rural Leadership & Community Events 1,750 Eaglehawk Dahlia & Arts Festival Inc Rural Leadership & Community Events 4,000 East Gippsland Shire Council Bushfire Recovery Fund 315,450 East Gippsland Shire Council Council and Regional Development Body Program 6,250 East Gippsland Shire Council Drought Assistance Packages 46,916 East Gippsland Shire Council Regional Economic Development 36,050 Ensay Recreation Reserve Drought Assistance Packages 4,000 Falls Creek Resort Management Board Rural Leadership & Community Events 2,500 Frankston City Council Living Regions Living Suburbs 22,682 Gannawarra Shire Council Council and Regional Development Body Program 6,250 Gannawarra Shire Council Drought Assistance Packages 10,550 Garacama Pty Ltd Regional Economic Development 10,000 Gear Grinders Hot Rod Club Inc Rural Leadership & Community Events 1,250 Geelong Ethnic Communities Council Inc Rural Leadership & Community Events 20,000 Glenelg Shire Council Council and Regional Development Body Program 6,250 Glenelg Shire Council Living Regions Living Suburbs 50,000 Glenelg Shire Council Regional Economic Development 25,000 Golden Plains Shire Council Council and Regional Development Body Program 6,250 Golden Plains Shire Council Living Regions Living Suburbs 132,500 Goulburn Strathbogie Olive Growers Association Inc Drought Assistance Packages 3,263 Goulburn Valley Community Health Service Drought Assistance Packages 5,252 Grampians Community Health Centre Inc Drought Assistance Packages 3,480 Grampians Community Health Centre Inc Rural Leadership & Community Events 2,500 Greek Orthodox Community of Frankston & Peninsula Inc Living Regions Living Suburbs 50,000 GV AgCare Inc Rural Leadership & Community Events 650 GV Time Out Inc. Drought Assistance Packages 7,500 Harrow National Bush Billy Cart Association Inc Rural Leadership & Community Events 5,000 Heathcote & McIvor Historical Society Inc Rural Leadership & Community Events 10,000 Henley on Lake Wallace Inc Rural Leadership & Community Events 2,000 Hepburn Shire Council Council and Regional Development Body Program 6,250 Hepburn Shire Council Drought Assistance Packages 3,000 Hepburn Shire Council Living Regions Living Suburbs 5,900 Hepburn Shire Council Regional Economic Development 10,000 Hepburn Shire Council Rural Leadership & Community Events 2,400 Hepburn Springs Swiss-Italian Festa Inc Rural Leadership & Community Events 2,500 Hindmarsh Shire Council Council and Regional Development Body Program 6,250 Hindmarsh Shire Council Living Regions Living Suburbs 5,906 HMS Nominees Ltd Living Regions Living Suburbs 250,000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 95 Regional Development Victoria Grants continued

Organisation Funding Type Payment $

Homewood Community Hall Inc Rural Leadership & Community Events 875 Horsham Art is Festival Rural Leadership & Community Events 7,500 Horsham Fishing Competition Inc Drought Assistance Packages 10,000 Horsham Rural City Council Council and Regional Development Body Program 6,250 Horsham Rural City Council Regional Economic Development 40,000 Hume City Council Living Regions Living Suburbs 15,000 Hume City Council Rural Leadership & Community Events 10,052 Indigo Shire Council Bushfire Recovery Fund 426,000 Indigo Shire Council Council and Regional Development Body Program 6,250 Indigo Shire Council Drought Assistance Packages 20,250 Indigo Shire Council Regional Economic Development 20,000 Indigo Shire Council Rural Leadership & Community Events 2,500 Intervet Australia Pty Ltd Regional Economic Development 100,000 James Stock Feed & Fertilizer Pty Ltd Regional Economic Development 20,000 Kaniva Apex Club Inc Rural Leadership & Community Events 2,000 Koetong-Shelley Development Association Inc Rural Leadership & Community Events 1,337 Kyabram Development Committee Inc Rural Leadership & Community Events 8,000 Lake Bolac Development Association Inc Rural Leadership & Community Events 3,000 Lakes and Wilderness Tourism Association Inc Living Regions Living Suburbs 14,562 Latrobe City Council Council and Regional Development Body Program 6,250 Latrobe City Council Living Regions Living Suburbs 94,500 Latrobe City Council Regional Economic Development 81,322 Lead On Australia Ltd Rural Leadership & Community Events 40,000 Lions Club of Merrigum Inc Rural Leadership & Community Events 4,317 Loddon Shire Council Council and Regional Development Body Program 6,250 Loddon Shire Council Drought Assistance Packages 5,237 Luv-A-Duck Pty Ltd Regional Economic Development 45,000 Lyrebird Arts Council Inc Rural Leadership & Community Events 5,250 Macedon Ranges Shire Council Council and Regional Development Body Program 6,250 Macedon Ranges Shire Council Drought Assistance Packages 3,000 Man from Snowy River Bush Festival Inc Drought Assistance Packages 7,500 Mansfield Shire Council Council and Regional Development Body Program 6,250 Mansfield Shire Council Drought Assistance Packages 2,682 Mansfield Shire Council Rural Leadership & Community Events 2,250 Maribyrnong City Council Council and Regional Development Body Program 18,500 Maryborough Highland Society Inc Rural Leadership & Community Events 1,875 Melbourne’s Northern Economic Wedge Inc Council and Regional Development Body Program 60,000 Melton Shire Council Council and Regional Development Body Program 25,160 Melton Shire Council Living Regions Living Suburbs 83,500 Milawa Gourmet Association Inc Drought Assistance Packages 10,000 Mildura Rural City Council Council and Regional Development Body Program 6,250 Mildura Rural City Council Living Regions Living Suburbs 6,975 Mildura Rural City Council Regional Economic Development 42,606 Mildura Rural City Council Rural Leadership & Community Events 3,600 Mitchell Shire Council Council and Regional Development Body Program 6,250 Mitchell Shire Council Drought Assistance Packages 5,340 Mitchell Shire Council Living Regions Living Suburbs 7,500 Mitta Mitta Muster Sports Association Inc Rural Leadership & Community Events 2,500 Moira Shire Council Council and Regional Development Body Program 6,250 Moira Shire Council Living Regions Living Suburbs 75,000 Moira Shire Council Regional Economic Development 18,750 Moira Tourism Inc Rural Leadership & Community Events 3,000 Moorabool Shire Council Drought Assistance Packages 7,887 Moorabool Shire Council Regional Economic Development 4,125 Moorabool Shire Council Rural Leadership & Community Events 1,800 Mornington Peninsula Shire Council Living Regions Living Suburbs 286,931 Morrison House Inc Living Regions Living Suburbs 7,500 Mount Alexander Shire Council Drought Assistance Packages 6,000 Mount Alexander Shire Council Regional Economic Development 19,100 Mount Beauty & District Chamber of Commerce Inc Drought Assistance Packages 7,406 Mount Hotham Alpine Resort Management Board Bushfire Recovery Fund 75,000

96 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Organisation Funding Type Payment $

Moyne Shire Council Council and Regional Development Body Program 6,250 Moyne Shire Council Rural Leadership & Community Events 3,200 Municipal Association of Victoria Council and Regional Development Body Program 40,000 Municipal Association of Victoria Rural Leadership & Community Events 40,000 Murrindindi Shire Council Council and Regional Development Body Program 6,250 Murrindindi Shire Council Drought Assistance Packages 13,675 Murrindindi Shire Council Living Regions Living Suburbs 95,000 Murrindindi Shire Council Regional Economic Development 39,670 Murrindindi Shire Council Rural Leadership & Community Events 10,000 Murrindindi Shire Council Rural Leadership & Community Events 2,400 Nillumbik Shire Council Living Regions Living Suburbs 401,500 Nillumbik Shire Council Rural Leadership & Community Events 12,000 North Central Catchment Management Authority Drought Assistance Packages 4,260 Northern Grampians Shire Council Council and Regional Development Body Program 6,250 Northern Grampians Shire Council Living Regions Living Suburbs 130,000 Northern Grampians Shire Council Rural Leadership & Community Events 250 Northern Grampians Shire Council Rural Leadership & Community Events 3,031 Numurkah & District Development Committee Inc Drought Assistance Packages 5,000 Olive Producers (NE Vic) Inc Drought Assistance Packages 6,600 Omeo Region Business & Tourism Association Drought Assistance Packages 3,404 Omeo Rodeo Association Inc Rural Leadership & Community Events 2,000 Orbost Community Development Group Inc Rural Leadership & Community Events 6,000 Ouyen Inc Rural Leadership & Community Events 5,200 Parks Victoria Living Regions Living Suburbs 12,500 Pinarc Support Services Inc Rural Leadership & Community Events 6,000 Pyrenees Shire Council Council and Regional Development Body Program 6,250 Pyrenees Shire Council Drought Assistance Packages 24,572 Pyrenees Shire Council Rural Leadership & Community Events 1,875 Pyrenees Shire Council Rural Leadership & Community Events 3,000 Robinvale Euston Action Community Team Inc Rural Leadership & Community Events 1,000 Rotary Club of Bellbridge-Lake Hume Inc Drought Assistance Packages 3,000 Rotary Club of Kerang Inc Rural Leadership & Community Events 1,100 Rotary Club of Myrtleford Inc Drought Assistance Packages 10,000 Rumbalara Football and Netball Club Inc Rural Leadership & Community Events 16,534 Rural City of Wangaratta Bushfire Recovery Fund 34,238 Rural City of Wangaratta Drought Assistance Packages 15,600 Rural City of Wangaratta Regional Economic Development 9,780 Rural City of Wangaratta Rural Leadership & Community Events 79 Rural City of Wangaratta Council and Regional Development Body Program 6,250 Rural City of Wodonga Council and Regional Development Body Program 46,214 Rural Housing Network Ltd Rural Leadership & Community Events 2,982 Seymour Rafting Festival Committee Inc Rural Leadership & Community Events 2,500 Shire of Yarra Ranges Council and Regional Development Body Program 43,700 Shire of Yarra Ranges Living Regions Living Suburbs 392,500 Small Business Counselling Service Inc Regional Small Business Mentor Program 9,695 SNF Australia Pty Ltd Regional Economic Development 16,000 South Gippsland Shire Council Council and Regional Development Body Program 6,250 South Gippsland Shire Council Regional Economic Development 45,000 South Gippsland Shire Council Rural Leadership & Community Events 6,000 Southern Grampians Shire Council Council and Regional Development Body Program 6,250 Southern Grampians Shire Council Regional Economic Development 15,000 Strathbogie Shire Council Council and Regional Development Body Program 6,250 Strathbogie Shire Council Drought Assistance Packages 10,020 Strathbogie Shire Council Regional Economic Development 40,000 Surf Coast Shire Council and Regional Development Body Program 6,250 Surf Coast Shire Rural Leadership & Community Events 20,000 Swan Hill Rural City Council Council and Regional Development Body Program 6,250 Swan Hill Rural City Council Drought Assistance Packages 10,000 Swan Hill Rural City Council Rural Leadership & Community Events 1,250 Talbot Action Inc Drought Assistance Packages 5,250 Talbot Football-Cricket Club Inc Rural Leadership & Community Events 4,071

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 97 Regional Development Victoria Grants continued

Organisation Funding Type Payment $

Tarrington Hochkirch Development Inc Drought Assistance Packages 5,000 Tatura Business and Development Group Inc Rural Leadership & Community Events 375 The Taste Factory Pty Ltd Regional Economic Development 55,000 Thoona and District Progress Association Drought Assistance Packages 3,150 Tourism Victoria Living Regions Living Suburbs 740,000 Towong Shire Council Bushfire Recovery Fund 584,625 Towong Shire Council Council and Regional Development Body Program 21,250 Towong Shire Council Regional Economic Development 70,000 Towong Shire Council Rural Leadership & Community Events 6,100 Upper Hume Community Health Service Inc Rural Leadership & Community Events 2,500 Upper Murray Health & Community Services Drought Assistance Packages 1,500 Vegco Pty Ltd Regional Economic Development 30,000 Victorian Farmers Federation Rural Leadership & Community Events 7,615 Violet Town Action Group Inc Rural Leadership & Community Events 334 Violet Town Community House Inc Rural Leadership & Community Events 3,700 Walhalla Tourist Railway Committee of Management Inc Living Regions Living Suburbs 60,000 Walwa Bush Nursing Hospital Inc Drought Assistance Packages 1,000 Wandin Valley Farms Regional Economic Development 14,000 Wangaratta Motor Sports Club Inc Rural Leadership & Community Events 4,997 Warburton Advancement League Inc Living Regions Living Suburbs 10,000 Warracknabeal Action Group Rural Leadership & Community Events 470 Wellington Shire Council Bushfire Recovery Fund 142,500 Wellington Shire Council Council and Regional Development Body Program 15,250 Wellington Shire Council Drought Assistance Packages 5,500 Wellington Shire Council Regional Economic Development 35,418 Wellington Shire Council Regional Small Business Mentor Program 20,000 Wellington Shire Council Rural Leadership & Community Events 7,899 Wellington Shire Council Rural Leadership & Community Events 9,750 West Wimmera Shire Council Council and Regional Development Body Program 6,250 Western Melbourne Regional Economic Development Organisation Limited Council and Regional Development Body Program 10,230 Wimmera Catchment Management Authority Rural Leadership & Community Events 813 Wimmera Development Association Inc Community Regional Industry Skills Program 9,500 Wimmera Development Association Inc Council and Regional Development Body Program 30,000 Wimmera Development Association Inc Drought Assistance Packages 24,350 Wimmera Regional Sports Assembly Inc Rural Leadership & Community Events 2,000 Wingara Wine Group Regional Economic Development 50,000 Winterfest in Warburton Inc Living Regions Living Suburbs 7,500 Woady Yaloak Catchment Group Inc Rural Leadership & Community Events 6,420 Wombat Regional Arts Network Inc Rural Leadership & Community Events 5,000 Wycheproof Community Resource Centre Drought Assistance Packages 6,225 Wyndham City Council Living Regions Living Suburbs 14,640 Yarra Valley Dandenongs and the Ranges Tourism Board Inc Council and Regional Development Body Program 9,000 Yarriambiack Shire Council Council and Regional Development Body Program 6,250 Yarriambiack Shire Council Rural Leadership & Community Events 5,620 Yea Golf Club Inc Rural Leadership & Community Events 1,950 Yea Tourism Association Inc Rural Leadership & Community Events 2,005

98 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Regional Infrastructure Development Fund

Financial assistance of $46.9 million was announced from the Fund to the following organisations:

Organisation Project $ Amount

Ballarat City Council Eureka Centre Precinct Development 520,000 Department for Victorian Communities Skilled Stadium Redevelopment 6,750,000 Department of Sustainability and Environment Lake Eildon Dam Improvement (at Kardinia Park) 4,000,000 East Gippsland Shire Council South Bairnsdale Industrial Park Infrastructure Improvement 1,000,000 Gippsland Ports Lakes Entrance Vessel Service Point 1,500,000 Glenelg Region Water Authority Class A Reclaimed Water Treatment Plant at Hamilton 1,012,500 Iron Horse Intermodal Pty Ltd Sunraysia Inland Port 867,000 La Trobe University Creation of a Centre for Research and Training in Environmental Science at Wodonga 1,500,000 Mildura Rural City Council Mildura Marina Wetlands 2,654,000 Parks Victoria Brambuk National Park and Cultural Centre 2,024,000 Regional Development Victoria (for Small Towns Development Fund Program) Small Towns Development Fund Projects 20,000,000 South Gippsland Region Water Authority Korumburra – Leongatha Saline Wastewater Project 3,100,000 Wodonga City Council Wodonga Freight Centre 2,000,000

Small Towns Development Fund

(A sub-program of the Regional Infrastructure Development Fund) Financial assistance of $5 million was announced from the Fund to the following Councils:

Council Project $ Amount

Alpine Shire Council Dinner Plain Service Estate 185,000 Ararat Rural City Council Elmhurst Streetscape Project 11,400 Bass Coast Shire Council Grantville Community Meeting Facility and Medical Centre 200,000 Buloke Shire Council Redevelopment of Dunstan Pavilion & Showgrounds 107,000 Buloke Shire Council Restoration of Wycheproof Community Hall 30,895 Buloke Shire Council Charlton Community Hall Redevelopment 36,500 Buloke Shire Council Coonooer Bridge Hall Upgrade 20,250 Central Goldfields Shire Council Maryborough Industrial Estate – Stage 2 193,000 Colac-Otway Shire Council Birregurra Park Lane Development Project 44,000 Colac-Otway Shire Council Colac Neighbourhood Development Project 80,000 Colac-Otway Shire Council Beeac Community Centre Upgrade 12,000 Colac-Otway Shire Council Colac Otway Performing Arts & Cultural Centre – COPACC 120,000 Colac-Otway Shire Council Larpent Hall Upgrade 10,000 Colac-Otway Shire Council Winchelsea Industrial Estate – Stage 2 88,191 Colac-Otway Shire Council Colac Visitor Information Centre – Stage 2 13,200 Corangamite Shire Council Timboon Hall Access Improvements Project 76,945 Corangamite Shire Council Cobden Railway Park BBQ and Shelter Project 10,220 Corangamite Shire Council Simpson Township and Revitalisation Project 100,000 Corangamite Shire Council Derrinallum Township Revitalisation Project 100,000 Gannawarra Shire Council Kerang Lions Club Walking Track 13,352 Gannawarra Shire Council Lake Charm Eco Tourism Development 28,280 Gannawarra Shire Council Ibis Rookery Development 60,755 Gannawarra Shire Council Leitchville Memorial Hall Upgrade 85,000 Glenelg Shire Council Glenelg Telecommunity Project 200,000 Glenelg Shire Council Portland Foreshore Anderson Point Stairs Project 20,000 Golden Plains Shire Council Linton Meeting Place Project 75,000 Golden Plains Shire Council Lethbridge Lake Redevelopment – Stage 2 16,000 Greater Bendigo City Council Heathcote Township Project 200,000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 99 Small Towns Development Fund continued

Organisation Project $ Amount

Greater Geelong City Council Springdale Community Cottage Redevelopment 154,984 Greater Geelong City Council Rotary Children’s Park Development 20,000 Greater Shepparton City Council Mooroopna Community Facility 200,000 Hindmarsh Shire Council Rainbow Hall Kitchen Access Renovations 3,074 Horsham Rural City Council Jung Peppertree Park Upgrade 15,500 Indigo Shire Council Yackandandah Industrial Estate 119,756 Indigo Shire Council Kergunyah Community Centre Extensions 147,600 Loddon Shire Council Wedderburn St Andrews Hall Upgrade 7,500 Loddon Shire Council Calivil Memorial Hall Development 6,652 Mildura Rural City Council Hattah Water Pipe Upgrade 31,565 Mildura Rural City Council Nangiloc Community Hall Restoration – Stage 1 30,000 Mitchell Shire Council Beveridge Community Centre 200,000 Moira Shire Council Murray Valley River Trail Barmah Section 26,500 Moorabool Shire Council Yendon Community Facility Redevelopment 21,458 Moorabool Shire Council Lal Lal Soldiers Memorial Hall Restoration and Development 15,600 Moyne Shire Council Mortlake Industrial Estate Expansion 105,000 Moyne Shire Council Ellerslie Township Revitalisation Project 25,000 Moyne Shire Council Panmure Township Revitalisation Project 18,000 Murrindindi Shire Council Yea Pioneer Reserve Upgrade 38,000 Northern Grampians Shire Council St Arnaud Community Resource Centre 30,000 Pyrenees Shire Council Avoca Information Centre – Stage 3 6,000 Pyrenees Shire Council Landsborough Information Building – Stage 2 6,500 Pyrenees Shire Council Amphitheatre Township Development 25,000 Pyrenees Shire Council Beaufort Amenity Building 105,000 Pyrenees Shire Council Brewster Hall Upgrade 15,000 Pyrenees Shire Council Landsborough Public Hall Upgrade 5,500 Pyrenees Shire Council Avoca Industrial Estate Development 99,350 Pyrenees Shire Council Raglan Hall Upgrade 10,444 Strathbogie Shire Council Honeysuckle Recreational Environment Project 48,600 Surf Coast Shire Council Torquay Guide/Scout Hall Upgrade 31,000 Surf Coast Shire Council Lorne Town and Streetscape Project – Stage 1 200,000 Surf Coast Shire Council Winchelsea Visitor Information Centre 10,000 Surf Coast Shire Council Lorne Town and Streetscape – Stage 2 200,000 Swan Hill Rural City Council Manangatang CBD Development – Stage 2 19,200 Swan Hill Rural City Council Robinvale Community Centre Upgrade – Stage 2 73,390 Swan Hill Rural City Council Piangil Memorial Park Improvements 10,479 Wangaratta Rural City Council Whitfield and Chestnut Enhancement Program 58,250 Wellington Shire Council Stratford Mechanics Hall Upgrade 129,500 Wellington Shire Council Rosedale Multipurpose Community Centre 200,000 West Wimmera Shire Council Gymbowen Hall Upgrade 6,000 West Wimmera Shire Council Edenhope Caravan Park Lighting Project 10,000 West Wimmera Shire Council Kaniva Multi Function Community Facility 15,310 West Wimmera Shire Council Harrow River Enhancement and Walking Trail 5,100 West Wimmera Shire Council Tolmer Way Information Signage 4,400 Wodonga City Council Bonegilla Hall Refurbishment 42,000 Yarriambiack Shire Council Wimmera Inland Freezing Works Museum 104,478 Yarriambiack Shire Council Beulah Hall Redevelopment 4,000 Yarriambiack Shire Council Brim Weir Pool Redevelopment 18,650 Yarriambiack Shire Council Minyip Bushland Reserve Walking Track 5,735 Yarriambiack Shire Council Scott St Redevelopment 155,650

100 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Small Business Related Grants

StreetLife Program and chambers of commerce to design and deliver innovative The Victorian Government StreetLife Program and the ‘local’ strategies to encourage small business growth, create StreetLife Industry Support Program are local economic new partnerships and forge ongoing community and growth programs for small businesses and their broader business links. communities in small towns, regional centres, industrial precincts and suburban strip shopping centres. The Financial assistance of $0.495 million was provided to the StreetLife Program provides funding, resources, facilitation following organisations: and expertise to local Government, business associations

Organisation Payment $

Ararat Rural City Council 25,000 Bacchus Marsh Town Centre Revitalization Group Inc 5,000 Banyule City Council 20,000 Central Goldfields Shire Council 25,000 City of Ballarat 25,000 City of Greater Bendigo 10,000 City of Greater Dandenong 25,000 City of Kingston 25,000 City of Maroondah 10,000 City of Melbourne 25,000 City of Stonnington 15,000 City of Whitehorse 25,000 City of Whittlesea 25,000 Darebin City Council 10,000 Frankston City Council 25,000 Hume City Council 25,000 Macedon Ranges Shire Council 25,000 Moonee Valley City Council 10,000 Moorabool Shire Council 10,000 Moreland City Council 25,000 Moyne Shire Council 10,000 Northern Grampians Shire Council 25,000 South Gippsland Shire Council 10,000 Southern Grampians Shire Council 10,000 Tourism Hamilton Inc 15,000 VicUrban 10,000 Wodonga Rural City Council 25,000

Policy Grants

Grants totalling $1.4 million were made from the policy output and are detailed below:

Organisation Funding type Payment $

Industry Capability Network (Vic) Ltd Import Replacement Funding 1,391,000 Monash University Sponsorship 35,000

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 101 Industrial Relations Grants

Grants totalling $3.1 million were made for industrial relations and the recipient companies and organisations are listed below:

Organisation Funding type Payment $

Alexandra District Hospital Partners At Work 9,098 Amcor Limited Partners At Work 5,000 Australian Catholic Commission for Employment Relations Partners At Work 4,600 Australian Manufacturing Workers Union Partners At Work 2,500 Australian Paper Pty Ltd Partners At Work 40,000 Backwell IXL Pty Ltd Partners At Work 28,000 Beaute at 2001 Better Work and Family Balance 15,960 Bolwell Corporation Pty Ltd Partners At Work 16,100 Brintons Pty Ltd Partners At Work 16,000 Campbell Australasia Pty Ltd Partners At Work 4,372 CFMEU Pulp & Paper Workers’ Branch Partners At Work 9,290 Colac Otway Shire Council Partners At Work 1,940 Connecting Images Better Work and Family Balance 15,400 Cryovac Australia Pty Ltd Partners At Work 7,440 Darebin City Council Partners At Work 1,400 Disability Attendant Support Service Inc Partners At Work 10,800 Epworth Hospital Partners At Work 3,850 Forgecast Australia Pty Ltd Partners At Work 2,141 Frankston City Council Partners At Work 20,000 GippsDairy Board Inc Partners At Work 12,300 Goodman Fielder Consumer Foods Pty Ltd Partners At Work 9,300 Hawker de Havilland Ltd Partners At Work 3,955 Job Watch Inc Support Funding – Operating Costs 877,000 Mansfield Shire Council Better Work and Family Balance 17,500 Media Equation Pty Ltd Better Work and Family Balance 16,800 Nylex Corporation Pty Ltd Partners At Work 13,440 Parks Victoria Partners At Work 13,800 Publicis Loyalty Pty Ltd Partners At Work 36,000 Roads Corporation Partners At Work 22,500 Sanbrook Holdings Pty Ltd Partners At Work 31,680 Southern Health Partners At Work 40,000 Sustainable Energy Authority Victoria Partners At Work 6,300 The Australian Workers’ Union Partners At Work 40,000 The Union Education Foundation Ltd Support Funding – Grant 1,500,000 University of Melbourne Partners At Work 39,500 Upper Hume Community Health Service Inc Partners At Work 19,680 Vegco Pty Ltd Partners At Work 14,400 VicTec Ltd Partners At Work 32,000 Victoria Police Partners At Work 48,738 Walwa Bush Nursing Hospital Inc Partners At Work 7,500 West Gippsland Healthcare Group Partners At Work 22,800 Women’s & Children’s Health Partners At Work 40,000 Workco Ltd Partners At Work 14,400

102 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Science, Technology and Innovation Grants

Grants totalling $72.6 million under the Department’s Science, Technology and Innovation program are listed below:

Organisation Funding type Payment $

Agriculture Victoria Services Pty Ltd STI Round 1 Grant 550,000.00 ASN Pty Ltd STI Public Awareness Grant 20,000.00 ATSE Clunies Ross Foundation STI Public Awareness Grant 10,909.10 Ausbiotech Ltd AusBiotech 2003 40,000.00 Ausbiotech Ltd Australia Pavilion Funding Support 13,000.00 AusBiotech Ltd Biotechnology Funding 65,488.65 Austin Research Institute Operational Infrastructure Support Funding 552,051.00 Australian Academy of Technological Sciences and Engineering STI Public Awareness Grants 16,500.00 Australian Genome Research Facility Ltd Major National Research Facility Funding 100,000.00 Australian Industry Group State Grant Funding 50,000.00 Australian Industry Group State Grant Funding 25,000.00 Australian Industry Group State Grant Funding 25,000.00 Australian Industry Group State Grant Funding 25,000.00 Australian Industry Group Biotechnology Funding 100,000.00 Australian Institute of Political Science STI Public Awareness Grants 8,000.00 Australian Research Centre for Complementary & Alternative Medicine (ARCCAM) Biotechnology Funding 50,000.00 Australian Sustainable Industry Research Centre Round 2 STI Infrastructure Grants 500,000.00 Australian telecommunications CRC CRC Support Program 50,000.00 Bacchus Marsh Secondary College STI Public Awareness Grant 19,000.00 Baker Heart Research Institute Operational Infrastructure Support Funding 1,849,643.00 Bartek Wydrowski 2003 Victoria Fellowships 15,000.00 Bayside Health Service STI Round 1 Grant 650,000.00 Bernard O’Brien Institute of Microsurgery Operational Infrastructure Support Funding 155,004.00 Berthold Australia Pty Ltd CRC Support Program 2004 64,400.00 Bio 21 Australia Limited Biotechnology Funding 15,000.00 BioMelbourne Network BioMelbourne Funding 275,000.00 BioMelbourne Network Biotechnology Funding 25,000.00 BioMelbourne Network Bio2003 Funding 12,105.89 Biomelbourne Network Biotechnology Funding 55,000.00 Biomelbourne Network Biotechnology Funding 113,000.00 Bionic Ear Institute Operational Infrastructure Support Funding 245,004.00 Biotechnology Industry Organisation Biotechnology Funding 69,434.80 Brain Research Institute Pty Ltd Operational Infrastructure Support Funding 248,842.00 Cast Centre Pty Ltd CRC Participant Contribution Payments – Cast Metal Manufacturing 625,000.00 Centre for Education & Research in Environmental Strategies (CERES) Round 2 STI Infrastructure Grants 104,000.00 Centre for Energy and Greenhouse Technologies Pty Ltd CEGT Funding 4,916,644.34 Centre for Eye Research Australia Operational Infrastructure Support Funding 241,594.00 CEOS Pty Ltd Round 2 STI Infrastructure Grants 2,000,000.00 CETEC Pty Ltd Industry Synchrotron Access Program 15,000.00 Clinical Trials Victoria Limited Round 2 STI Infrastructure Grants 3,966,000.00 Cooperative Reseach Centre for Polymers (CRC for Polymers) CRC Support Program 2004 28,000.00 CRC for Clean Power from Lignite CRC Support Program 2004 14,000.00 CRC for Cochlear Implant Hearing Aid Innovation CRC Support Program 2004 21,000.00 CRC for Microtechnology CRC Support Program 127,000.00 CRC for Polymers CRC Support Program 100,000.00 CSIRO STI 2002 Federation Fellowship Supplementary Grant 150,000.00 Daniel Billing 2003 Victoria Fellowships 15,000.00 Deakin University Round 2 STI Infrastructure Grants 180,000.00 Deakin University Round 2 STI Infrastructure Grants 568,300.00 Department of Infrastructure Transfer of Funding for the Information & Communication Technology Centre of Excellence 2003/04 – MMV’s ICT Centre of Excellence 3,000,000.00 Department of Primary Industries Synchrotron Funding 23,000.00 Discovery Science & Technology Museum STI Public Awareness Grants 15,000.00 Discovery Science & Technology Museum STI Public Awareness Grants 2003 1,000.00

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 103 Science, Technology and Innovation Grants continued

Organisation Funding type Payment $

Discovery Science & Technology Museum STI Public Awareness Grant 15,000.00 Dr Arnan Mitchell 2003 Victoria Fellowships 6,929.00 Dr David Vaux 2003 Victoria Prize 50,000.00 Dr Tanya Medley 2003 Victoria Fellowships 15,000.00 Dr Tam Vuong 2003 Victoria Fellowships 15,000.00 Eastmac Pty Ltd Industry Synchrotron Access Program 5,000.00 Edmonds Management STI Public Awareness Grants 10,500.00 Environment Industry Development Network (EIDN Pty Ltd) CRC Support Program 2004 24,500.00 FBR Asia Ltd Commercialisation 130,312.31 Food Science Australia STI Round 1 Grant 100,000.00 Genomic Disorders Research Centre Operational Infrastructure Support Funding 31,376.00 Global Access Partners Pty Ltd Funding Support for Global Access Partners (GAP) 40,000.00 GSAT STI Public Awareness Grants 18,000.00 Howard Florey Institute Operational Infrastructure Support Funding 1,243,861.00 Information City Victoria Management Pty Ltd STI Public Awareness Grants 2003 2,682.27 Interact 2004 (Royal Australian Chemistry Institute) Synchrotron Funding 7,272.73 International Diabetes Institute Operational Infrastructure Support Funding 47,218.00 La Trobe University STI Public Awareness Grant 9,090.91 Ludwig Institute for Cancer Research Operational Infrastructure Support Funding 647,215.00 Ludwig Institute for Cancer Research CRC Support Program 2004 28,000.00 Macfarlane Burnet Centre for Medical Research & Public Health Operational Infrastructure Support Funding 1,591,229.00 Melbourne Fringe Ltd Fringe Inventions 2003 1,000.00 Melbourne Health Bio21 STI Initiatives Projects funding program 100,000.00 Melbourne Neuromuscular Research Institute Operational Infrastructure Support Funding 45,036.00 MicroTechnology Centre Management Ltd (MCML) CRC Support Program 2004 28,000.00 Monash Health Research Precinct Other Contestable Funding 545,454.54 Monash Institute of Reproduction & Development Operational Infrastructure Support Funding 1,216,698.00 Monash University STI Round 1 Grant 116,000.00 Monash University STI Round 1 Grant 1,907,054.00 Monash University Round 2 STI Infrastructure Grants 450,000.00 Monash University Synchrotron Funding 4,000.00 Monash University Industry Synchrotron Access Program 10,000.00 Monash University Industry Synchrotron Access Program 5,000.00 Monash University Industry Synchrotron Access Program 5,000.00 Murdoch Children’s Research Institute Operational Infrastructure Support Funding 1,819,889.00 Murdoch Children’s Research Institute STI Public Awareness Grants 9,000.00 Museum Victoria STI Public Awareness Grants 9,000.00 Museum Victoria Round 2 STI Infrastructure Grants 650,000.00 Nanotechnology Victoria Limited Round 2 STI Infrastructure Grants 4,035,000.00 National Ageing Research Institute Operational Infrastructure Support Funding 40,656.00 National Science Summer School Inc STI Public Awareness Grants 4,000.00 National Stem Cell Centre Limited Other Contestable Funding 350,000.00 National Stem Cell Centre Limited Biotechnology Funding 9,000.00 National Stem Cell Centre Limited Other Contestable Funding 200,000.00 National Stem Cell Centre Limited Other Contestable Funding 1,000,000.00 National Stem Cell Centre Limited Other Contestable Funding 250,000.00 National Stroke Research Institute Operational Infrastructure Support Funding 187,107.00 Neurosciences Victoria Ltd STI Round 1 Grant 3,600,000.00 Neurosciences Victoria Ltd Major National Research Facility Funding 554,750.00 Prince Henry’s Institute of Medical Research Operational Infrastructure Support Funding 906,506.00 Qantas Australia Week “G’Day LA” – Australia Week 2004 50,000.00 Research Centre for Advanced By-Wire (RaBiT) – Pacifica Group Technologies Pty Ltd Round 2 STI Infrastructure Grants 1,305,000.00 SAE Australasia STI Public Awareness Grant 12,000.00 Sandra Haukka 2003 Victoria Fellowships 14,923.00 Science Talent Search STI Public Awareness Grant 4,000.00 Science Teachers’ Association of Victoria STI Public Awareness Grants 10,000.00 Science Teachers’ Association of Victoria STI Public Awareness Grants 7,500.00 ScienceNow! Inc 2003 STI Public Awareness Grant 15,000.00

104 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Organisation Funding type Payment $

St Vincent’s Institute of Medical Research (SVIMR) Operational Infrastructure Support Funding 1,306,464.00 St Vincent’s Institute of Medical Research (SVIMR) Biotechnology Funding 7,500.00 St Vincent’s Institute of Medical Research (SVIMR) Other Contestable Funding 454,546.00 Swinburne University of Technology CEI Foundation Conference 80,000.00 Swinburne University of Technology Major National Research Facility Funding 131,250.00 Swinburne University of Technology CRC Support Program 2004 17,570.00 Swinburne University of Technology STI Public Awareness Grants 1,000.00 Technology Partners Network Ltd TCP Funding 22,420.14 The Institution of Engineers, Australia STI Public Awareness Grants 8,000.00 The Mental Health Research Institute of Victoria Operational Infrastructure Support Funding 377,039.00 The Walter & Eliza Hall Institute of Medical Research Operational Infrastructure Support Funding 6,689,271.00 The Walter & Eliza Hall Institute of Medical Research Bio21 STI Initiatives Projects Funding Program 855,987.71 The Walter & Eliza Hall Institute of Medical Research STI Public Awareness Grants 10,000.00 The Walter & Eliza Hall Institute of Medical Research STI Public Awareness Grants 9,000.00 The Walter & Eliza Hall Institute of Medical Research CRC Support Program 2004 56,000.00 University of Melbourne STI 2002 Federation Fellowship Supplementary Grant 155,000.00 University of Melbourne STI 2002 Federation Fellowship Supplementary Grant 175,000.00 University of Melbourne STI 2002 Federation Fellowship Supplementary Grant 80,000.00 University of Melbourne STI 2002 Federation Fellowship Supplementary Grant 125,000.00 University of Melbourne STI 2002 Federation Fellowship Supplementary Grant 225,000.00 University of Melbourne Other Contestable Funding 6,000,000.00 University of Melbourne Round 2 STI Infrastructure Grants 500,000.00 University of Melbourne STI Public Awareness Grants 2,800.00 University of Melbourne Round 2 STI Infrastructure Grants 1,415,711.00 University of Melbourne Major National Research Facility Funding 62,500.00 University of Melbourne Synchrotron Funding 20,000.00 University of Melbourne Round 2 STI Infrastructure Grants 200,000.00 University of Melbourne Other Contestable Grant – Intellectual Property Research Institute of Australia 100,000.00 University of Melbourne Round 2 STI Infrastructure Grants 1,944,000.00 University of Melbourne Round 2 STI Infrastructure Grants 1,178,000.00 University of South Australia Australian Synchrotron Project 126,000.00 VCAMM Limited Round 2 STI Infrastructure Grants 2,396,335.00 VCAMM Limited – Victorian Centre for Advanced Materials Manufacturing CRC Support Program 2004 70,000.00 VESKI Treasurer’s Advance 1,299,000.00 Victoria University STI Funding Support 88,308.00 Victorian Partnership for Advanced Computing Limited Major National Research Facility Funding 192,858.00 Victorian Partnership for Advanced Computing Limited STI Round 1 Grant 500,000.00 WCCM 2003 Biotechnology Funding 25,000.00 Wodonga Institute of TAFE STI Public Awareness Grants 18,730.00 Young Achievement Australia Biotechnology Funding 22,000.00

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 105 Merit and Equity

The Department continued to uphold its responsibilities in organisational awareness of equity and diversity in the relation to merit and equity and a people management ethos workplace. The training program has been well received by in operational and strategic activities. employees and managers alike and forms part of a three tiered approach to workplace diversity training. Rights and Responsibility Training has been rolled out throughout DIIRD to ensure greater personal and

Superannuation Scheme

The Government Superannuation Office has responsibility for superannuation funds to which the Department made staff who are members of the revised and new schemes and contributions is shown in the Notes to the Financial will include details in its annual report. A listing of employee Statements.

Exemptions from Advertisement/Selection on Merit

The principles of merit and equity apply in particular to the candidates. Further, Human Resources Account Managers recruitment of staff. All appointments are subject to the provide comprehensive advice and assistance to staff and Department’s policies and guidelines on recruitment. These management to ensure the appropriate protocols are policies and guidelines, which are available electronically to all followed. Thirty-eight jobs were exempted from staff, enshrine the merit and equity principles and outline the advertisement during 2003-04. processes for short listing, interviewing and selecting

Issue Resolution

The Department encourages workplace communication as workplace planning and operations. There was one issue part of its business planning and performance planning lodged in 2003-04. processes. This enables staff to have a greater involvement in

Upholding Public Sector Conduct

The Department’s People Framework provides a set of The Department has a number of policies – prevention of guiding principles on how the Department strives to embrace harassment, prevention of discrimination, ethics, issue a people focused culture and way of working together. These resolution and managing underperformance (conduct) – guidelines are consistent with the principles that comprise the which are available on the HR intranet site. Code of Conduct for the Victorian Public Service. As part of the induction process for all new employees, the principles contained in this Code are provided and information on how to access the electronic version of this document.

106 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Progress in Implementing National Competition Policy

Reviews of legislation that restrict competition:

Minister for Industrial Relations

Name of Legislation Progress achieved Additional comments

Labour and Industry Act 1958 The Act has been removed from the review schedule as it does not contain restrictions on competition.

Long Service Leave Act 1992 (formerly The Act has been removed from the Employee Relations Act 1992) review schedule as it does not contain restrictions on competition.

Minister for Small Business

Name of Legislation Progress achieved Additional comments

Shop Trading Act 1987 and Capital City Acts have been repealed. Therefore no A factor which led to the repeal of these (Shop Trading) Act 1992 reviews are to be undertaken. Acts was that they restricted competition when assessed against the Guiding Legislative Principles of the Competition Policy Agreement. The restricted competition created by the Acts meant that there were net costs to the community.

Minister for Tourism

Name of Legislation Progress achieved Additional comments

Australian Grands Prix Act 1994 Review undertaken and completed. Review found that the Act does not restrict competition. Therefore, no option for reform has been recommended.

Application of the competition test to new Application of competitive neutrality principles to legislative proposals in-house bids New legislation introduced during 2003–2004 complies with In accordance with the guidelines, CN pricing principles have the guiding legislative principle that legislation should not been applied to in-house bids when competitive tendering restrict competition unless it can be demonstrated that: (i) the has been undertaken. benefits of the restriction to the community as a whole outweigh the costs; and (ii) the objectives of the legislation can only be achieved by restricting competition.

Application by Departments of Competitive Neutrality (CN) principles to significant government business activities The Department does not undertake any significant government business activity with respect to the application of competitive neutrality principles. Agencies associated with the Department will report on the application of competitive neutrality principles with respect to their particular agency in their Annual Report.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 107 Workplace Diversity Strategy

The Workplace Diversity Strategy delivered practical gained greater acceptance as improvements in reporting outcomes during a period of significant structural and and measurement processes have resulted in better leadership change across DIIRD. The appointment of a new analysis and identification of gaps in existing government Secretary resulted in organisational changes to his leadership employment opportunities. DIIRD has concentrated on team and strategic direction. This necessitated re- raising awareness of indigenous issues through highlighting assessment of the People Strategy and its priorities to better indigenous achievement, establishing Welcome to Country suit business outcomes. protocols and in a practical sense, providing increased employment opportunities and an improved commitment During this period of change greater emphasis was placed on from business units to promote employment and service compliance diversity through improved reporting of workplace delivery to indigenous communities. diversity profiles, workplace diversity training and awareness, – Growing success of the Women’s Portfolio with key direct management up-skilling and mediation and conciliation organisational improvements arising from the Women in as a preferred corporate response to workplace issues. Management Program (WiM). Graduates of the program delivered a successful workplace project that has resulted Achievements over the past twelve months have therefore in the establishment of a Mentoring Program across DIIRD. occurred around these key themes: The Mentoring Program now boasts 44 participants. The – Key participation in the whole-of-Government Reference Women’s Network continued to draw excellent speakers Group into the Indigenous Employment Strategy (IES). and large audiences. Now in its second year of a three-year cycle, the IES has

Occupational Health and Safety

In accordance with the Government’s commitment to Performance indicators for these outputs were primarily the improving occupational health, safety and well-being in delivery of actions against established project objectives and the workplace, the Department reviewed and developed its timeframes. These initiatives have all been successfully Occupational Health and Safety Strategy to include a range implemented. of initiatives, policies and programs for implementation in 2003–04. The Department continues to maintain a minimal workcover claims record, and workplace injuries and incidents continue to The major outputs for 2003–04 included the development be at a level below the performance measures identified for the and implementation of Designated Workplaces within the department in the Government’s OHS Improvement Strategy. Department, the election of Health and Safety Workplace Representatives, the review and upgrade of First Aid procedures and arrangements, and continued implementation of a Corporate Health Program.

Responsiveness to Cultural Diversity, Women, Youth and Indigenous Affairs

Summary of Initiatives in 2003-04 Tourism brochures were produced in a range of languages The Department undertook a number of key initiatives in for non-English speaking travellers, and funding and 2003–04 in the areas of cultural diversity, women, youth and marketing assistance was provided to various CALD events indigenous affairs. Initiatives were undertaken across a range and festivals in metropolitan and regional areas. of DIIRD portfolio responsibilities and functions. Tourism Victoria advertisements were screened on SBS Cultural Diversity Television during prime time in order to promote services and The multicultural segment of the Under New Management initiatives to a culturally diverse audience. program provided information and advice for people considering buying a business, signing a retail lease and The Commissioner for Italy promotes trade, investment, buying a franchise with brochures available in 10 languages. culture and tourism links between Victoria and Italy. Two of Workshops for several Culturally and Linguistically Diverse the most important highlights during 2003–04 were the (CALD) communities were organised, including for the Turkish Veneto in Victoria Promotion, which included several science community in Mildura and Chinese community in Melbourne. focused business seminars and the staging of the famous Marostica Pageant and the visit to Melbourne of an 80 strong The Ethnic Enterprise Advisory Council met throughout the Lombardy Regional Government delegation led by the year to advise on ways to develop Victoria’s export President. capabilities through making better use of the State’s multicultural diversity. Nominations were sought for the In November 2003, the Outworkers (Improved Protection) Council’s second term. Act 2003 commenced, providing greater employee

108 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 protection for clothing industry workers who are largely The Child Employment Act 2003 commenced in June 2004, drawn from culturally and linguistically diverse communities. applying to the employment of children under 15 across all industry sectors in Victoria. The new legislation establishes Information brochures in seven community languages were a system of child employment regulation, which prohibits developed as part of the communications strategy for the children from employment in some forms of work but new Child Employment Act 2003, which applies to the otherwise allows for some employment subject to certain employment of children under 15 years. conditions. Information about the new child employment system has been disseminated through print media, Women mail-outs and the government website. The Victorian Government’s program designed specifically to assist women business operators, Showcasing Women in The www.careeersthatgo.com.au website has been providing Small Business, has successfully delivered training sessions information to Victorian secondary students about career in accessing finance for business growth to women options and courses in science, technology and engineering throughout Victoria. since April 2001. There were 85,000 visits to the website between July 2003 and June 2004. Careersthatgo was In partnership with Office of Women’s Policy, DIIRD promoted to careers advisors, science and technology teachers developed the Action Agenda for Work and Family Balance, and has been featured at careers and industry events. which outlines major initiatives to encourage greater work and family balance. Indigenous Affairs The key initiative for Indigenous people is Doing Business, a DIIRD has encouraged the take-up of work and family policy managed by the Koori Business Network that aims to balance initiatives in Victorian workplaces as part of the Better strengthen the Koori business sector. Major initiatives in Work and Family Balance Program through industry based 2003–04 included: pilot projects and targeted research. Six projects were – The delivery of Indigenous business forums, industry underway during the year. specific workshops and business training programs to Indigenous communities across Victoria In collaboration with other states and territories, DIIRD advocated for a better recognition of work and family – Deadly Arts Business, a joint partnership initiative between commitments in the Australian Industrial Relations the Koori Business Network, Arts Victoria and the Australia Commission’s Family Provisions Test Case. Council, included the following activities: – Conference: A statewide Indigenous Arts Symposium at Internally, DIIRD continued the Women’s Network, a series of Bunjilaka, Melbourne Museum seminars and events for women employees in DIIRD, and a – Regional workshops: Marketing, cultural authenticity Women in Management training program. and business planning Youth Affairs – A mentoring program lab.3000’s Youth Incubator, which opened in mid-2003, aims – Research into Indigenous product development to meet the education and training needs of young people – Deadly Art Award who have either left or are at risk of leaving school early. lab.3000 is a centre of excellence in digital design established – Deadly Expressions Performing Arts Showcase at as part of the Government’s $10.2 million commitment to Federation Square developing Victoria’s design capabilities. Through its digital – Tribal Expressions exhibitions series 1, 2 and 3 design programs, students who had left the education and – Deadly Expressions catalogue of selected works from training system have returned to complete a Victorian the three Tribal Expressions series Certificate of Applied Learning in Digital Design and have – Development of Indigenous aquaculture businesses and articulated into further education and training at the enterprise through strategic research Certificate IV level. – Promotion of Indigenous business development and DIIRD’s support for young people in business has included marketing opportunities through the Telstra Business Awards two major youth entrepreneurship programs, Shell Live WIRE – Launch of tourism brochure Ochre Dreaming under the and Young Achievement Australia. DIIRD also sponsored the Tourism Communiqué Initiative. Young Retailer of the Year category at the Australian Retailers Association Victoria awards.

The Tourism Student Business Initiative provided the opportunity for students to participate in a project that required the development of a viable tourism business.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 109 Disclosure Index

Clause Disclosure Page Report of operations Charter and purpose

FRD 22 Manner of establishment and the relevant Ministers 5–9 FRD 22 Objectives, functions, powers and duties 5–9 FRD 22 Nature and range of services provided 5–9

Management and structure

FRD 22 Organisational structure 8–9

Financial and other information

FRD 22 Statement of workforce data and merit and equity 80,106 FRD 22 Summary of the financial results for the year 85 FRD 22 Significant changes in financial position during the year 85 FRD 22 Operational and budgetary objectives and performance against objectives 13–41 FRD 22 Major changes or factors affecting performance 85 FRD 22 Subsequent events N/A FRD 22 Application and operation of Freedom of Information Act 1982 81 FRD 22 Compliance with building and maintenance provisions of Building Act 1993 85 FRD 22 Statement on National Competition Policy 107 FRD 22 Application and operation of the Whistleblowers Protection Act 2001 111–113 FRD 22 Details of consultancies over $100,000 84 FRD 22 Details of consultancies under $100,000 84 FRD 12 Disclosure of major contracts 85 FRD 22 Statement of availability of other information 86 FRD 22 Occupational health and safety 108 FRD 15 Executive officer disclosures 80 FRD 10 Disclosure index 110 FRD 24 Reporting of office-based environmental impacts 83 FRD 25 Victorian Industry Participation Policy disclosures 82 FRD 8 Budget portfolio outcomes 114–117

Financial statements

Financial statements required under Part 7 of the FMA

SD 4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 47 SD 4.2(c) Compliance with ministerial directions 47 SD 4.2(d) Rounding of amounts 51 SD 4.2(c) Accountable officer’s declaration 76 SD 4.2(f) Model financial report 47 SD 4.2(b) Statement of financial performance 44 SD 4.2(b) Statement of financial position 45 SD 4.2(b) Statement of cash flows during the year 46

Other disclosures in notes to the financial statements

FRD 9 Departmental disclosure of administered assets and liabilities 71 FRD 11 Disclosure of ex-gratia payments 72 FRD 13 Disclosure of parliamentary appropriations 57 FRD 21 Responsible person and executive officer disclosures 66 FRD 23 Superannuation liabilities and disclosure 70

Legislation

Freedom of Information Act 1982 81 Building Act 1983 85 Whistleblowers Protection Act 2001 111–113 Victorian Industry Participation Policy Act 2003 82

110 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Major Acts of Parliament Administered

The list below shows Acts administered as at 30 June 2004. Minister for Small Business – ANZAC Day Act 1958, except: Minister for State and Regional Development – Sections 4 and 4A (these provisions are administered – Aerodrome Landing Fees Act 2003 by the Minister for Sport and Recreation) – Agent-General’s Act 1994 – ANZAC Day (Amendment) Act 2003 – Albury-Wodonga Agreement Act 1973 – Public Holidays and Shop Trading Reform Acts – Albury-Wodonga Agreement (Repeal) Act 2003 (Amendment) Act 2003 – Australian Airlines (Intrastate Services) Act 1990 – Public Holidays Act 1993 – Bread Industry Act 1959 – Retail Leases Act 2003 – City of Greater Geelong Act 1993 – Part 5 – Retail Tenancies Reform Act 1998 (the Act is otherwise administered by the Minister for Local – Shop Trading Reform Act 1996 Government) – Shop Trading Reform (Essential Goods Amendment) – Civil Aviation (Carriers’ Liability) Act 1961 Act 2003 – Latrobe Regional Commission (Repeal) Act 1995 – Shop Trading Reform (Simplification) Act 2003 – Regional Development Victoria Act 2002 – Small Business Commissioner Act 2003 – Regional Infrastructure Development Fund Act 1999 – Small Business Victoria (Repeal) Act 1996 – Regional Infrastructure Development Fund – Summer Time Act 1972 (Amendment) Act 2003 – Wodonga Area Land Acquisition Act 1973 Minister for Tourism – Victorian Industry Participation Policy Act 2003 – Australian Grands Prix Act 1994 – Chinatown Historic Precinct Act 1984 Minister for Innovation (which is jointly administered with the Minister for Planning) – Baker Medical Research Institute Act 1980 – Emerald Tourist Railway Act 1977 – Howard Florey Institute of Experimental Physiology and – Emerald Tourist Railway (Amendment) Act 2003 Medicine Act 1971 – Melbourne Convention and Exhibition Trust Act 1996 – Prince Henry’s Institute of Medical Research Act 1988 – Port Bellarine Tourist Resort Act 1981 – Tourism Victoria Act 1992 Minister for Industrial Relations – BLF (De-recognition) Act 1985 Acts passed by the Parliament in 2003-04 – Child Employment Act 2003 – Aerodrome Landing Fees Act 2003 – Commonwealth Powers (Industrial Relations) Act 1996 – Albury-Wodonga Agreement (Repeal) Act 2003 – Construction Industry Long Service Leave Act 1997 – ANZAC Day (Amendment) Act 2003 – Federal Awards (Uniform System) Act 2003 – Child Employment Act 2003 – Labour and Industry Act 1958 – Emerald Tourist Railway (Amendment) Act 2003 – Long Service Leave Act 1992 – Shop Trading Reform (Simplification) Act 2003 – Outworkers (Improved Protection) Act 2003 – Victorian Industry Participation Policy Act 2003 – Trade Unions Act 1958

Disclosures Made under the Whistleblowers Protection Act 2001

Disclosures made to DIIRD during the year Nil

Disclosures referred during the year by DIIRD to the Ombudsman for determination as to whether they are public interest disclosures Nil Disclosed matters referred to DIIRD during the year by the Ombudsman Nil Disclosed matters referred during the year by DIIRD to the Ombudsman to investigate Nil Investigations of disclosed matters taken over by the Ombudsman from DIIRD during the year Nil Requests made under section 74 during the year to the Ombudsman to investigate disclosed matters Nil Disclosed matters that DIIRD has declined to investigate during the year Nil Disclosed matters that were substantiated on investigation and the action taken on completion of the investigation Nil Any recommendations of the Ombudsman under this Act that relate to DIIRD Nil

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 111 Whistleblowers Protection Act 2001 Procedures

1. Overview duties changed in reprisal for having made a disclosure. The Whistleblowers Protection Act 2001 (‘the Act’) is Things to consider before making a disclosure: designed to protect people who disclose information about serious wrongdoing within the Victorian public sector and to – Are there reasonable grounds for believing that the alleged provide a framework for investigating these matters. conduct has actually occurred? – What are my expectations of the process? Are my The Act’s key objectives are to: expectations realistic and achievable? – Promote a culture in which people feel safe to make disclosures 3. Departmental procedures – Protect these people from recrimination DIIRD has procedures in place to deal effectively with – Provide a clear process for investigating allegations disclosures made under the Act. These are outlined below. – Ensure the investigated matters are properly dealt with. 3.1 Who do I contact? A whistleblower is any person who makes a disclosure (a DIIRD has appointed contact persons to provide general report or allegation) about improper conduct by public advice about the operation of the Act and to receive bodies or public officers. complaints or information about improper conduct by DIIRD or its employees. Their roles and contact details are provided Complaints or allegations about serious wrongdoing can be below. made against public bodies and any public officer, including Government departments, statutory authorities, universities – Protected Disclosure Coordinator (PDC): receives and and hospitals, councils and councillors, members of the impartially assesses complaints or allegations, refers Victoria Police Force and members of Parliament. matters to the Ombudsman and coordinates investigations into disclosed matters. Under the Act, any person who has reasonable grounds for Ms Vivienne Stanford believing that improper conduct has occurred can make a Director, Corporate Governance and Administration disclosure. If the disclosure is determined to be a protected Level 9, 55 Collins Street disclosure, the whistleblower is entitled to certain protection. Melbourne Victoria 3000 If, upon investigation, the complaint is substantiated, remedial Telephone (03) 9651 9862 action will be taken. email: [email protected] 2. What does the Act cover? – Protected Disclosure Officers: provide general advice about the Act, receive complaints/disclosures, impartially For a disclosure about wrongdoing to be considered as a assess them and forward them and any supporting protected disclosure under the Act, you must have evidence to the PDC for further assessment. reasonable grounds for your belief that improper conduct has occurred. This wrongdoing comprises: Mr Bruce Mapperson Executive Director, Office of Service Industries – Substantial mismanagement of public resources Level 11, 55 Collins Street – Risk to public health or safety or the environment, or Melbourne Victoria 3000 – Corruption. Telephone (03) 9651 9851 email: [email protected] The conduct must be criminal in nature or amount to reasonable grounds for dismissal. Ms Faye Burton Executive Director, Office of Science and Technology An example of improper conduct would be if an officer of the Level 13, 55 Collins Street Department of Innovation, Industry and Regional Melbourne Victoria 3000 Development (DIIRD) concealed information about unsafe Telephone (03) 9651 8035 work practices by a food processing business, in order to email: [email protected] secure an investment in a food processing plant in regional Victoria which would create jobs for regional Victorians. – You can also make your complaint or provide information directly to the Ombudsman. An example of corrupt conduct would be if an DIIRD officer The Ombudsman Victoria managing a grants program took a bribe from a business Level 22, 459 Collins Street acquaintance who had applied for a significant regional grant, Melbourne Victoria 3000 in exchange for supporting and recommending the (DX 210174) acquaintance’s grant application. Internet: www.ombudsman.vic.gov.au It is an offence under the Act for a person to take detrimental Email: [email protected] action against another person in reprisal for making a Telephone (03) 9613 6222 protected disclosure. This includes: Toll Free: 1800 806 314 Ombudsman: Telephone (03) 9613 6202 – Action causing injury, loss or damage – Intimidation or harassment, or Disclosures can be made in writing or made orally. You may – Discrimination, disadvantage or adverse treatment in also provide information anonymously. relation to a person’s employment, career, profession, trade If your complaint relates to persons other than employees of or business. DIIRD, you should make your complaint to the Ombudsman An example of detrimental action would be if you were or to the public body concerned. demoted, transferred, isolated in your workplace or had your

112 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 If your complaint is about a councillor or the Chief Where the report includes an adverse comment about any Commissioner of Police, it must be made to the Ombudsman. person, that person must be given the opportunity to respond. If your complaint is about a Member of Parliament, it must be made to the President of the Legislative Council or the If the PDC is satisfied that the disclosed conduct has Speaker of the Legislative Assembly, depending on which occurred, he or she will make recommendations to the house the member belongs to. Secretary about appropriate remedial action, and report the findings of the investigation to you, the relevant Minister and 3.2 Will my disclosure remain confidential? the Ombudsman. The Act requires disclosures to be kept confidential. Strict penalties apply to any breach of confidentiality. Where the investigation concludes that the disclosed conduct did not occur, you will be notified and the findings DIIRD will not include particulars in any report or reported to the Ombudsman. recommendation that is likely to lead to your identification. All 3.6 How will my welfare and protection needs be files relating to your disclosure will be kept in a secure room and will only be accessed by the PDC, a Protected managed? Disclosure Officer, an investigator or a designated welfare It is the responsibility of the PDC to keep you informed of manager appointed by the PDC. action taken in relation to your disclosure, and the time frames that apply. 3.3 How are disclosures assessed? The PDC will determine whether your disclosure amounts to The PDC is also responsible for ensuring you are protected a protected disclosure. If the PDC determines that it does, he from reprisals and that the culture of the workplace supports or she will then make a conclusion as to whether or not the protected disclosures being made. protected disclosure amounts to a public interest disclosure All whistleblowers who have made a protected disclosure will within Part 4 of the Act. If the PDC concludes that it does, he be offered support by a welfare manager appointed by the or she will refer it to the Ombudsman for a formal PDC, to examine and attend to their immediate welfare and determination. protection needs. If the PDC concludes that your complaint or information is People who attempt any reprisal against anyone for making a not covered by the Act, you will be notified of the alternative disclosure may face court action and criminal penalties. remedial action open to you in the circumstances, and Taking reprisals can also be grounds for a person making a advised of your right to ask for the Ombudsman to determine disclosure under the Act, and can result in an investigation. the matter. If you report that action has been taken in reprisal for making 3.4 How will my disclosure be investigated? a disclosure, the welfare manager will record the details and Where the Ombudsman determines that your protected advise the PDC. The PDC will assess the report as a new disclosure amounts to a public interest disclosure and refers disclosure under the Act. it to DIIRD for investigation, the PDC will draw up terms of reference for authorisation by the Secretary of DIIRD. When you make a protected disclosure, the Act provides you with immunity from any civil or criminal liability or any The objectives of an investigation are to: disciplinary action for making that disclosure. – Collate relevant information and draw conclusions from that information objectively and impartially However, DIIRD acknowledges that making a disclosure does not shield whistleblowers from the reasonable consequences – Make recommendations about remedial or other flowing from any involvement in improper conduct, although, appropriate action. in some circumstances, an admission may be a mitigating The investigator must prepare an investigation plan and make factor when considering disciplinary or other action. regular reports to the PDC, who in turn will keep the Where disciplinary or other action involving a whistleblower is Ombudsman informed of progress. In accordance with the decided upon, the PDC will thoroughly document the Ombudsman’s guidelines, all investigations are subject to the process including the reasons why the action is being taken, requirement of procedural fairness. and will advise the whistleblower of the proposed action and The investigator will notify you of his or her appointment and of any mitigating factors that have been taken into account. seek any necessary clarification or additional material that you 3.7 What support is given to the person against whom a might have. He or she may allow witnesses to have legal or disclosure is made? other representation or support during an interview. DIIRD recognises that employees against whom disclosures If it seems probable that disclosure of your identity cannot be are made must also be supported during the handling and avoided due to the nature of the allegations, the investigator investigation of disclosures. All reasonable steps will be taken will warn you and your welfare manager of this probability. to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation If an investigation is being obstructed or has revealed process. Where investigations do not substantiate conduct that may constitute a criminal offence, the PDC will disclosures, the fact of the investigation and all relevant refer the matter back to the Ombudsman for investigation. details will remain strictly confidential. 3.5 What will happen at the conclusion of the The PDC will ensure the person who is the subject of an investigation? investigation is informed as to the substance of the The investigator will submit a written report of his or her allegations and has the opportunity to respond. findings to the PDC. The report will not include particulars likely to lead to your identification.

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 113 Budget Portfolio Outcomes

The following Budget Portfolio Outcomes provide a comparison between the actual financial statements for DIIRD with the forecasted financial information published in the Victorian Government’s Budget Papers. The Budget Portfolio Outcomes comprise the statements for financial performance, position and cash flows. These statements are not subject to audit by the Victorian Auditor-General.

Statement of Financial Performance ($ million) 2003–04 Variation Variation 2003–04 Actual % $ Revised Budget

Revenue from ordinary activities Output appropriations 329.2 293.4 10.9 35.8 Special appropriations - 0.2 (100.0) (0.2) Resources received free of charge - - - - Sale of goods and services 1.5 - 100.0 1.5 Commonwealth grants - - - - Other grants ---- Taxes ---- Fines ---- Other revenue and other revenue from other parties 0.6 3.9 (550.0) (3.3) 331.3 297.5 10.2 33.8

Expenses from ordinary activities Employee entitlements 63.1 50.7 19.7 12.4 Depreciation and amortisation 3.2 2.9 10.0 0.3 Resources provided free of charge - - - - Capital asset charge 5.2 1.8 65.4 3.4 Supplies and services 72.6 45.2 37.7 27.4 Grants and other payments 252.1 210.6 16.4 41.5 Other expenses from ordinary activities - 0.2 (100.0) (0.2) Borrowing costs - - - - 396.2 311.4 21.4 84.8

Result from ordinary activities (64.9) (13.8) 78.7 (51.1)

Loss from extraordinary items - - - - Net Result for the reporting period (64.9) (13.8) 78.7 (51.1)

Net increase in asset revaluation reserve - 0.4 100.0 (0.4) Total revenues, expenses and revaluations recognised directly in equity - 0.4 100.0 (0.4) Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner (64.9) (13.4) 79.3 (51.5)

1. For the purpose of comparison the revised budget for 2003–04 published in Statement of Finances 2004–05 Budget Paper No. 4 has been used. 2. The actual results shown in the Statement of Financial Performance do not include the operations of Tourism Victoria as these are reported separately by that entity.

114 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Statement of Financial Position ($ million) 2003–04 Variation Variation 2003–04 Actual % $ Revised Budget

Current Assets Cash assets 6.4 109.2 n/a (102.7) Other financial assets ---- Receivables (3.9) 33.4 n/a (37.3) Inventories ---- Prepayments 0.7 0.7 - - Total current assets 3.2 143.2 n/a (140.0)

Non-current assets Receivables 89.6 - 100.0 89.6 Inventories ---- Other financial assets 0.1 - 100.0 0.1 Property, plant and equipment 69.3 67.5 2.6 1.8 Intangible assets ---- Other ---- Total non-current assets 159.0 67.5 57.5 91.5 Total assets 162.2 210.7 (29.9) (48.5)

Current Liabilities Payables 6.2 19.0 (206.5) (12.8) Provisions 6.5 5.9 9.8 0.6 Interest bearing liabilities - 0.1 - (0.1) Other 0.5 - - 0.5 Total current liabilities 13.2 24.9 (88.7) (11.7)

Non-current Liabilities Interest bearing liabilities - 0.3 (100.0) (0.3) Provisions 10.1 10.1 - - Other ---- Total non-current liabilities 10.1 10.4 (3.0) (0.3) Total liabilities 23.3 35.3 (51.5) (12.0) Net Assets 138.9 175.4 21.7 (36.5)

Equity Contributed capital 81.1 68.9 85.0 12.2 Reserves - 0.4 (100.0) (0.4) Accumulated surplus 57.8 106.1 183.6 (48.3) Total equity 138.9 175.4 (26.3) (36.5)

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 115 Budget Portfolio Outcomes continued

Statement of Cash Flows ($ million) 2003–04 Variation Variation 2003–04 Actual % $ Revised Budget

Cash flows from operating activities Receipts from Government 385.4 322.7 83.7 62.7 Receipts from other entities 2.0 7.3 365.0 (5.3) Payments for supplies, grants and employees (387.9) (344.9) 88.9 (43.0) (0.5) (14.9) (2,880.0) 14.4

Interest received - - 100.0 - Other revenue 0.1 - - 0.1 Capital asset charge (5.2) (1.8) 34.6 (3.4) Borrowing cost - - 100.0 - Net cash inflow from operating activities (5.6) (16.7) (198.2) 11.1

Cash flows from investing activities Payments for property, plant and equipment (55.4) (42.4) 76.5 (13.0) Proceeds from sale of property, plant and equipment - - 100.0 - (Repayments of) loans by other entities - - 100.0 - Net cash outflow from investing activities (55.4) (42.4) 23.5 (13.0)

Cash flows from financing activities Net proceeds from capital contribution by State Gov’t 61.0 42.1 69.0 18.9 Net cash flows from financing activities 61.0 42.1 31.0 18.9

Net increase (decrease) in cash held - (17.0) 100.0 17.0 Cash at the beginning of the financial year 6.4 126.2 n/a (119.8) Cash held a the end of the financial year 6.4 109.2 n/a (102.8)

116 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Administered Items Statement ($ million) 2003–04 Variation Variation 2003–04 Actual % $ Revised Budget

Administered revenue Appropriations – Payments made on behalf of the state ---- Resources received free of charge ---- Sale of goods and services 0.8 4.1 512.5 (3.3) Commonwealth grants 0.2 0.4 200.0 (0.2) Taxes ---- Fines 0.2 - - 0.2 Fees 2.2 - - 2.2 Other 0.3 - - 0.3 Total administered revenue 3.7 4.5 (21.6) (0.8)

Administered expenses Expenses on behalf of the state ---- Resources provided free of charge ---- Grants and other payments ---- Payments into the consolidated fund 3.7 4.9 132.4 (1.2) Total administered expenses 3.7 4.9 (32.4) (1.2)

Revenue less expenses - (0.4) 100.0 0.4

Administered assets Receivables 28.2 16.2 57.6 12.0 Loans - 30.8 - n/a Other financial assets ---- Property, plant and equipment ---- Total administered assets 28.2 47.0 (66.8) (18.8)

Administered liabilities Payables ---- Non current interest bearing liabilities ---- Other ---- Total administered liabilities ----

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 117 Contact Details

Head Office Wangaratta Department of Innovation, Industry Ground Floor and Regional Development 36 Ford Street 55 Collins Street Wangaratta Vic 3677 Melbourne Vic 3000 Tel: (03) 5721 6988 Tel: (03) 9651 9999 Fax: (03) 5721 2265 Fax: (03) 9651 9962 www.iird.vic.gov.au Wodonga 6/22 Stanley Street Victorian Business Centres Wodonga Vic 3689 Metropolitan Tel: (02) 6056 2166 Fax: (02) 6056 2334 Dandenong 314a Thomas Street Dandenong Vic 3175 Overseas Business Offices Tel: (03) 9791 5755 Germany Fax: (03) 9794 5644 Executive Director State of Victoria European Office Vermont Grueneburgweg 58-62 520 Canterbury Road 60322 Frankfurt am Main Germany Vermont Vic 3133 Tel: 0011-49-69-668 074-0 Tel: (03) 9874 5733 Fax: 0015-49-69-668 074-66 Fax: (03) 9874 5135 email: [email protected] Glenroy Hong Kong 3 Belair Avenue Executive Director Glenroy Vic 3046 2108 Harbour Centre Tel: (03) 9304 4344 25 Harbour Road Fax: (03) 9304 4355 Wanchai Hong Kong Tel: 0011-852-2587 1133 Regional Fax: 0015-852-2802 9675 Ballarat email: [email protected] 48 Sturt Street Ballarat Vic 3350 Japan Tel: (03) 5320 5999 Executive Director Fax: (03) 5320 5998 Australian Business Centre 28th Floor Bendigo New Otani Garden Court Building 46 Edward Street 4-1 Kioi-cho, Chiyoda-Ku Bendigo Vic 3550 Tokyo 102-0094 Japan Tel: (03) 5442 4100 Tel: 0011-81-3-5210 5041 (Office) Fax: (03) 5442 5452 Fax: 0015-81-3-5210 5047 email: [email protected] Geelong 69 Moorabool Street Nanjing Geelong Vic 3220 Investment Manager Tel: (03) 5223 2104 Suite C2, 16th Floor Fax: (03) 5229 9503 World Trade Centre Jinling Hotel Mildura 2 Hanzhong Road 131 Langtree Avenue Nanjing China 210005 Mildura Vic 3500 Tel: 0011-8625-4701-231 Tel: (03) 5051 2000 Fax: 0011-8625-4709-821 Fax: (03) 5051 2020 Email: [email protected] Shepparton United Arab Emirates 3/164 Welsford Street Executive Director Shepparton Vic 3630 Office 111, 1st Floor Tel: (03) 5821 1811 Emarat Atrium Fax: (03) 5822 2554 Sheikh Zayed Road Traralgon PO Box 58004 33 Breed Street Dubai United Arab Emirates Traralgon Vic 3844 Tel: 0011-971-4-321 2600 Tel: (03) 5174 9233 Fax: 0015-971-4-321 2700 Fax: (03) 5174 7845 email: [email protected]

118 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 United Kingdom Hong Kong – People’s Republic of China Agent-General Tourism Victoria Victoria House Suite 6706, Central Plaza Melbourne Place 18 Harbour Road The Strand Wanchai, Hong Kong London WC2B 4LG United Kingdom Tel: 0011 852 2531 3870 Tel: 0011-44207-836-2656 (Office) Fax: 0011 852 2845 2213 Fax: 0015-44207-240 6025 email: [email protected] Auckland – New Zealand Tourism Victoria USA – Chicago Level 3, 125 The Strand Investment Manager Parnell Suite 1325 Auckland, New Zealand 123 N Wacker Drive PO Box 1666 Chicago IL.60606 Auckland, New Zealand USA Tel: 0011 649 379 0425 Tel: 0011-1-312-332-0862 Fax: 0015 649 379 4361 Fax: 0015-1-312-332-0863 Email: [email protected] email: [email protected] Tokyo – Japan USA – San Francisco Tourism Victoria Executive Director Australian Business Centre Suite 1308, 28F New Otani Garden Court 44 Montgomery Street 4 – 1 Kioi – Cho, Chiyoda-ku San Francisco, CAL 94104 Tokyo 102 – 0094 Japan USA Tel: 0011 81 3 5214 0787 Tel: 0011-1-415-693-0772 Fax: 0015 81 3 5214 0790 Fax: 0015-1 415-693-0826 Email: [email protected] email: [email protected] Los Angeles – North America Tourism Victoria Tourism Victoria Melbourne (Head Office) Suite 1920, 2049 Century Park East Tourism Victoria Los Angeles CA 90067 USA 55 Collins Street Tel: 0011 1 310 229 4892 Melbourne Vic 3000 Fax: 0015 1 310 552 1215 GPO Box 2219T Email: [email protected] Melbourne Vic 3001 Tel: +61 3 9653 9777 Singapore Fax: +61 3 9653 9722 Tourism Victoria 101 Thomson Road Internet: #08-01 United Square visitvictoria.com Singapore 307591 visitmelbourne.com Tel: 0011 65 6255 6888 visionsofvictoria.com Fax: 0011 65 6255 2922 tourismvictoria.com.au Email: [email protected] Email: [email protected] Europe Interstate Offices Tourism Victoria Sydney Tilsiter Street 12 Tourism Victoria D-64354 Reinheim, Germany Level 13, 31 Market Street Tel: 0011 49 6162 85550 Sydney NSW 2000 Fax: 0011 49 6162 85559 Tel: +61 2 9287 6500 Email: [email protected] Fax: +61 2 9287 6507 United Kingdom/Ireland/Nordic Countries Tourism Victoria Overseas Business Offices The Australia Centre, The Strand Shanghai – People’s Republic of China London WC2B 4LG, United Kingdom Victoria Trade and Investment Office Tel: 0011 44 207 240 7176 Suite 516, Shanghai Centre Fax: 0015 44 207 240 7196 1376 Nanjing West Road Email: [email protected] Shanghai 200040 China Tel: 0011 86 21 6279 8681 Fax: 0015 86 21 6279 8685 Email: [email protected]

Department of Innovation, Industry and Regional Development – Annual Report 2003–04 119 Notes Published by the Department of Innovation, Industry and Regional Development, Melbourne Victoria

November 2004

Annual Report 2003-04

This report is also available on the internet at: www.iird.vic.gov.au

© Copyright State of Victoria 2004 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

Authorised by the Victorian Government, Department of Innovation, Industry and Regional Development Level 15, 55 Collins Street Melbourne Victoria 3000

Contact: Corporate Communications

Telephone: (03) 9651 9999

ISSN 1447-5014

Printed by Blueprint

Designed and produced by X2 Design

The paper used in this report is accredited to both ISO 14001 and EMAS (Eco-Management and Audit Scheme) standards ensuring environmentally sustainable and responsible processes through all stages of material sourcing and manufacture. EMAS standards include third party auditing, public reporting and continual improvement programmes.