WATER AND RIVERS COMMISSION ANNUAL REPORT 2001–2002

WATER AND RIVERS COMMISSION ANNUAL REPORT NOVEMBER 2002 Water and Rivers Commission Annual Report 2001–2002

Acknowledgments

This report was prepared by the Community Information and Publications section of the Communications Branch. For more information contact: Water and Rivers Commission Level 2 Hyatt Centre 3 Plain Street East Perth WA 6004

Telephone (08) 9278 0300 Facsimile (08) 9278 0301 Postal address: PO Box 6740 Hay Street East Perth WA 6892

Recommended reference

The recommended reference for this publication is: Water and Rivers Commission 2001 – 2002 Annual Report, Water and Rivers Commission, 2002.

We welcome your feedback

A publication feedback form can be found at the back of this publication, or online at

ISBN 1-920687-34-3 ISSN 1329-9816

November 2002

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Letter to the Minister

Hon Dr Judy Edwards MLA MINISTER FOR THE ENVIRONMENT AND HERITAGE On behalf of the Board and in accordance with Section 65A of the Financial Administration and Audit Act 1985, we have pleasure in submitting for presentation to Parliament the Annual Report of the Water and Rivers Commission for the period 1 July 2001 to 30 June 2002. This report has been prepared in accordance with provisions of the Financial Administration and Audit Act 1985.

Ken Webster CHAIRMAN OF THE BOARD Perth, Western Australia 30 August 2002

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Chief Executive’s review

As predicted in last year’s annual report, 2001-02 was dominated by the challenge to build a new organisation, to develop our approach to environmental protection and natural resource management and to re-establish links with our stakeholders. The task continues. While legislatively we report as separate entities, the Water and Rivers Commission, Department of Environmental Protection and Keep Australia Beautiful Council are effectively operating as one under the working title of Department of Environment, Water and Catchment Protection.

Our role is to help manage the behaviours of community and industry to ensure a sustainable future for the environment and our quality of life. We respond to this challenge by using a suite of approaches available to us: that is, to regulate, influence, educate, inspire and to negotiate. Through this we are one of the key agents on behalf of the State for ensuring that sustainable development is allowed to proceed while maintaining Western’s Australia’s environmental and ecosystem capital.

And we must achieve this complex and important balancing role while retaining credibility and influence in a modern democracy. We have the privilege of helping to deliver for our society, sustainable use and management of the natural resources to achieve an appropriate quality of life: that is, socially acceptable ecologically sustainable development. And we should recognise that WA has potentially the best system for natural resource management and protection in Australia.

The merger of the former departments gives us the opportunity to define a new way to conduct our business and how we relate to the external world. The merger brings with it the advantage of establishing an agency with the complete toolkit of negotiation, partnering and strong regulatory powers. And while I see these strong regulatory powers as a necessary part of our armoury, the department must also be adept at negotiation and influence. This does not imply a weakening of environmental standards. They are absolutely necessary and rightly expected of us by the community.

This is about achieving good environmental performance in the most effective way. It is about having as mature relationship with industry where real negotiation is possible and sits alongside traditional enforcement. We are also working across the agency to improve our links with the community and to engage them in meaningful ways in all aspects of our business.

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It is clear from the year in review that we have come a long way but that we also have much work to do. I thank all of the staff of the amalgamating agencies who have continued to give their best in this testing time.

I look forward to another productive year and the formal launch of the new department.

Roger F Payne CHIEF EXECUTIVE

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Contents

Acknowledgments 2

Recommended reference 2

Letter to the Minister 3

Chief Executive’s review 4

Contents 6

1 About the Water and Rivers Commission 9

1.1 Organisation structure 10

1.2 Changes to the Water and Rivers Commission following the Machinery of Government recommendations 11

2 Report on operations 14

2.1 Protection and enhancement 14 2.1.1 Salinity management 14 2.1.2 National Action Plan for Salinity and Water Quality 14 2.1.3 Waterways WA program 14 2.1.4 Wetlands 15 2.1.5 Constructed wetlands 15 2.1.6 Water source protection guidelines 15 2.1.7 State Algal Strategy 16 2.1.8 PhoslockTM work 16 2.1.9 New algae found 16 2.1.10 Research and development 17 2.1.11 Land clearing 17 2.1.12 Waterways and catchment protection 17 2.2 Allocation 18 2.2.1 Drought management 18 2.2.2 State Water Conservation Strategy 18 2.2.3 WA Water Re-use Forum 19 2.2.4 Water law reform 19

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2.3 Water information 20 2.3.1 Floodplain management 20 2.3.2 Water Information Database 20 2.3.3 Perth Groundwater Atlas 20 2.3.4 Indian Ocean Climate Initiative 20 2.3.5 Rural water plan 21

2.4 Corporate support 22 2.4.1 Community Involvement Framework 22 2.4.2 Freedom of Information 23 2.4.3 Information Services 24 2.4.4 People 25

3 Corporate governance report 28

3.1 Board overview 28 3.1.1 Board members 28 3.1.2 Changes to the Board 28 3.1.3 Accountability and independence 28 3.1.4 Performance monitoring and reporting 28 3.1.5 Board member profiles 29 3.1.6 Conflict of interest 30 3.1.7 Ministerial directions 30 3.1.8 Committees and other bodies 30 3.1.9 Board meetings 31 3.1.10 Waterways Management Authorities 32 3.1.11 Relationship with the Swan River Trust 32

4 Compliance reports 33

4.1 Responsible Minister 33 4.2 Statement of compliance with written law 33 4.2.1 Enabling legislation 33 4.2.2 Legislation administered 33 4.2.3 Other legislation impacting on Commission activities 33 4.2.4 Statement of compliance with Environmental Conditions 34 4.2.5 Advertising and sponsorship 35

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5 Performance indicators 37

Statement by accountable authority on performance indicators 37

6 Financial statements 57

Appendix A – Regional Office details 80

Appendix B – Water words and glossary 81

Appendix C – Media releases 84

Appendix D – Publications produced during 2001-02 89

Publication feedback form 93

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1 About the Water and Rivers Commission

The Water and Rivers Commission is solely responsible for ensuring that Western Australia’s water resources are managed to support sustainable economic development and conservation of the environment, for the long-term benefit of the community. The Commission achieves its outcomes and outputs by investigating and researching the quality, quantity and location of surface and groundwater resources, making decisions on the allocation and management of water resources, and ensuring that water quality is conserved, protected and enhanced. These activities are undertaken through four Divisions (Business Development and Integration, Policy and Planning, Science and Evaluation, Regional Services), and are managed within four business areas (Protection and Enhancement, Water Allocation, Water Information, Corporate Support). Long-term plans and objectives are determined through Councils representing each business area. Divisions implement the projects through which these objectives can be achieved.

CORPORATE EXECUTIVE BUSINESS EXECUTIVE

Divisions Business Councils

Business Development and Corporate Support Integration Water Allocation Policy and Planning Protection and Science and Evaluation Enhancement

Regional Services Water Information

Responsibilities PLAN AND Responsibilities MONITOR • Line management • Set business objectives and outcomes • Deliver business • Consider priority directions • Develop Commission and resource requirements culture • Monitor performance • Monitor performance CONTRIBUTE

Figure 1: Water and Rivers Commission Business structure

Overall responsibility for corporate goals, direction, performance and budgets lies with the Commission’s governing body – the Board of Management. During the 2001-02 reporting period, the Department of Environmental Protection, with the Water and Rivers Commission and the Keep Australia Beautiful Council, began working to a common, draft Vision and Mission, and with shared Principles.

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Vision

A healthy environment and sustainable use of natural resources for the benefit of present and future generations.

Mission

To lead the protection and enhancement of the State’s natural capital, working in partnership with the community. We achieve this through managing and influencing people’s attitudes and behaviours towards the environment and natural resources.

Our principles

For the environment and water resources, we will: • Act in the long term public interest • Consider environmental, social and economic needs; and • Manage them in an integrated way with others. And in all our dealings we will:

• Act with courage and integrity; • Respect our stakeholder’s views and contributions; • Be willing to make a constructive difference; and • Take responsibility for our individual and collective contribution.

1.1 Organisation structure

Early in the 2001-02 reporting period, the Water and Rivers Commission adopted a new divisional structure jointly with the Department of Environmental Protection and the Keep Australia Beautiful Council, which now operates under the Business Development Division. The amalgamation and restructure are detailed in the section on Changes to the Water and Rivers Commission following the Machinery of Government Recommendations.

Minister for the Environment and Heritage

Environmental DEWCP Protection Authority DEP/WRC/KABC

Chairman Director General

Policy and Environmental Business Environmental Coordination Impact Development Regulation Assessment Resource Resource Management Science

Regional Operations

Figure 2: New divisional structure of the amalgamating agency

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1.2 Changes to the Water and Rivers Commission following the Machinery of Government recommendations

The State Government’s 2001 Machinery of Government Taskforce report recommended radical change for the environment and water resources portfolios. Most obvious and dramatic among these was the formation of a new agency, the Department of Environment, Water and Catchment Protection. This department is being formed by the amalgamation of the Department of Environmental Protection, the Water and Rivers Commission and the Keep Australia Beautiful Council. Naturally, the scale and complexity of this change has ensured the project has consumed considerable resources during the past year. A key challenge has been to progress the development of the new department – organisationally and culturally – while maintaining our services to the community. This challenge has been difficult to meet in all cases but the benefit in the future will be an integrated environment and natural resource management agency for Western Australia. The Department of Environment, Water and Catchment Protection’s key roles in resources assessment and allocation, coupled with strong environmental protection powers, will ensure sustainable use of resources for responsible development.

The new Department will continue the commitment to work with the community, all levels of government and industry. The Environmental Protection Authority remains as an independent statutory authority, serviced by its own staff for environmental policy development and environmental impact assessments. Its staff will be employed through the new Department but will report to the EPA. Although the final operational model and governance structure is yet to be completed, the new department is essentially operational as a combined entity.

The Department of Environment, Water and Catchment Protection’s roles are to: • Investigate environmental systems such as waterways, groundwater and airsheds to ensure they are managed to meet environmental quality objectives. • Share environmental resources between competing uses to ensure sustainable use and development.

• Reduce the amount of waste produced and ensure that waste is managed to meet health and environmental standards. • Ensure discharges to the environment are minimised and that pollution of the environment is prevented or abated. • Provide local environmental and resource management services to key regions.

• Support development of environmental and water resources management policy. • Ensure the community has the opportunity to provide input and to become involved in environment and water resource management initiatives.

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Delivering better service

The amalgamation of the Department of Environmental Protection and the Water and Rivers Commission is bringing together several resource and environmental management functions in a way that provides a more integrated service to stakeholders and the wider community. Some areas where integration will be effective are: • Pollution control, contaminated sites management and waste management, with the new agency having the complete toolkit of negotiation, partnering and strong regulatory powers. • Water resources and airshed policy and guideline development.

• Resource protection licensing. For example, permitting and regulating activities that may impact on the environment. • Development approvals. Industry stakeholders will no longer need to go through the two separate agencies when they deal with issues such as subdivision or mining proposals. • Environmental monitoring. The new Department will have improved capacity for monitoring environmental systems such as waterways, groundwater and airsheds.

• Community liaison and education. Community education and involvement will continue to be essential to the Department’s way of operating. • Regional services delivery, providing the opportunity to present single shopfronts for our customers while still retaining sufficient specialisation in the issues we manage. • Without doubt, one of the most important factors in improved land and water management is engaging landholders in sustainable catchment management. The new Department will help to deliver ecologically sustainable development in rural and urban environments.

During the year the following actions have been undertaken to progress the creation of the merged entity. • In some cases branches with the same functions have been amalgamated. Primarily these branches have been in the Corporate Services and Regional Services areas. In other cases branches with similar functions have been brought into the same divisions. In each case interim structures have been established. Co-location for some merged units has been achieved and is significantly advanced for others. • Appointments to senior positions within the merged structure have been made and all other employees have been accommodated within it.

• The change-management process has been assisted by the development of a Staff Liaison Committee, cultural change initiatives, and working with stakeholders (within and outside of the agency) to create the new organisation. • A comprehensive staff communication strategy has been implemented to enable staff to understand the changes and to have input into the development of the new organisation. • All human resource information for the agencies has been converted to a single system, the Concept HRMIS. This system enables further development of the e-business relationship with our employees. It provides a self-service module to all employees via the agency intranet and allows access to personal information and Human Resource

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procedures. This further develops the self-sufficiency of managers and employees in the people management function.

• Waterways management authorities established under the Waterways Conservation Act were disbanded and the functions subsumed into the Commission. • A review of governance options for the proposed agency was conducted to define a sustainable and effective agency structure prior to the definition of the legislative scheme to disband the Commission. The corporate development and change program is continuing and will ensure that the department is able to achieve the expected outcomes of the formation of the Department of Environment, Water, and Catchment Protection.

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2 Report on operations

2.1 Protection and enhancement The Protection and Enhancement Business works to control salinity, protect and rehabilitate waterways, protect drinking water supplies and develop natural resource management strategies, in partnership with the community. This year, the Swan River has been in good condition and no algal blooms were recorded.

2.1.1 Salinity management During 2001-2002 a eucalypt sawlog program for salinity management was implemented and a business plan developed. In winter 2001, 170 hectares of eucalypt sawlogs were planted; 400 hectares are planned for winter 2002. Work has continued in Water Resource Recovery Catchments, including the evaluation of management options for the Collie River and the launch of the Collie statement in December 2001. The recovery catchments strategy was implemented in Warren, Blackwood and Kent rivers and a salinity situation statement was released for the Denmark River Catchment. The Commission evaluated engineering options for drainage at Spencer’s Gully, pumping at Maxon Farm, and relief wells at Lubkes and Kent River. The Commission has also worked on arterial drainage and water management. A study was done in the Dumbleyung area and a management strategy devised for the Yenyening Lakes. Future work will focus on the Salinity Investment Framework (SIF), which helps set priorities for Government investment in salinity control. It has been trialled for statewide projects and regionally in the Avon.

2.1.2 National Action Plan for Salinity and Water Quality The Commission has been a lead agency in the negotiations with the Commonwealth on implementation of the National Action Plan for Salinity and Water Quality (NAP) and the extension to the Natural Heritage Trust (NH2) in WA. The two programs may provide around $40 million of Commonwealth funds to the State each year over the next five years, a significant proportion of which will be used to implement regional Natural Resource Management (NRM) strategies that have been accredited through a process agreed by the NRM Ministerial Council. The Commission staff are involved in assisting regional NRM groups in finalising their regional strategies and in adopting the Salinity Investment Framework that is being used to identify regional priorities for funding.

2.1.3 Waterways WA Program The Waterways WA Program has, since 1996, supported on-ground restoration activities and worked to develop strategic directions for waterways management. During the past two years the Commission has provided advice on river restoration to over 700 groups, comprised of more than 5000 people.

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In May 2002, the program’s River Restoration Manual was launched. This is a new guide to the protection, rehabilitation and long-term management of metropolitan, south-west and great southern waterways. The River Restoration Manual, prepared by the Water and Rivers Commission, is part of a successful program that teaches the community how to look after and conserve our rivers. The manual describes how south-west rivers work, their ecology and the techniques that can be used to rehabilitate them. The Commission produced the manual in response to growing community awareness and demand to tackle the causes of waterway degradation.

2.1.4 Wetlands The Commission has worked to improve protection of “Conservation” Category Wetlands (CCWs) and will continue to do so. There is increasing recognition of the value of CCWs across government and in the community. Work has continued on strategies to improve their protection.

2.1.5 Constructed wetlands During 2001-02, the South Coast Region successfully completed a variety of best management practices for rural and urban drains, including three constructed wetlands. These were completed by working in partnership with local government, the Water Corporation, Environment Australia and local catchment groups. The wetlands are the first of their type in the region, and among only a handful completed in WA. They are being monitored by the Commission to gauge their effectiveness in reducing nutrients entering coastal waters. A manual is being prepared to assist others wishing to use constructed wetlands. In an allied initiative of the Swan Canning Cleanup Program, the Aquatic Science Branch has developed a state of the art design of a constructed wetland specific for Swan Coastal Plain conditions. This will treat urban runoff and address problems associated with high groundwater levels using a series of shallow vegetated swales within an ephemeral flood-plain.

2.1.6 Water source protection guidelines The Commission works with other resource management agencies and appropriate industries to develop guidelines for various land uses that could compromise surface and ground water quality, particularly with respect to public drinking water supplies. These guidelines also serve to assist industry to manage their operations in a way that protects the quality of private water supplies. During 2001-02 guidelines were completed on apiaries (standard site conditions), cattle feedlots, horse facilities and activities, horticulture (with particular reference to the potato growing industry), turf farms, and turf and grassed areas. Work is currently being done on drainage, forestry, pastoral leases, pesticide use, and roadworks in public drinking water supply areas (PDWSAs).

The development of guidelines for land use activities in PDWSAs is an essential requirement to enable the Statement of Planning Policy (SPP) for Drinking Water to be properly enacted and adopted by local governments and their planners. This SPP will require all local government planners, when amending their local town planning schemes and regional planning schemes, to take into consideration the prior existence of any water reserves and to ensure any rezoning of land is compliant to the priority classifications in the PDWS Protection

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Plans. The SPP will also require a further 70 PDWSA protection plans to be completed as a priority.

In 2002-2003, guidelines will also need to be revised or developed for groundwater protection, urban stormwater management, sewerage systems (including effluent management, industrial waste, sludge or biosolids management, use of reclaimed water, dealing with sewerage system overflows), dairy sheds, dairy processing plants, intensive piggeries, wool scouring, tanning and related industries, and effluent management for wineries and distilleries. Implementation of these guidelines is essential for compliance with the National Water Quality Management Strategy and for the State to receive Commonwealth funding from the National Competition Council.

2.1.7 State Algal Strategy The Algal Bloom Strategy was completed in October 2001 and is now awaiting incorporation into the Waterways WA Framework. The strategy documents what is being done, puts that work in a national and international perspective, and then looks at a revised approach. It builds on statewide catchment management strategies. The main objectives of the strategy are to:

• Develop an understanding of the causes and triggers of algal blooms; • To maintain active surveillance of ‘at risk’ water bodies; • To reduce nutrient inputs from all catchment sources; • To facilitate community understanding of algal blooms and the factors that cause them; and, • To develop a range of remedial options for in situ nutrient management in key waterways.

The Commission has worked with other Government agencies, particularly the Department of Health, to develop a coordinated statewide response strategy for algal blooms. The Department of Fisheries is involved in this when fish kills are evident.

2.1.8 PhoslockTM work This year the Commission continued to work with CSIRO on PhoslockTM. The Commission has completed two full-scale applications of PhoslockTM – one in the Vasse River in Busselton and the other in the Canning River above Kent St Weir. Results indicate that PhoslockTM will bind available phosphorus in sediments; in both applications available phosphorus was reduced by 95 per cent. In the Vasse, algal activity was reduced in the treated area compared to the untreated area and past records. In the Canning River results were less clear due to sufficient sources of phosphorus coming into the river from other sources.

For the first time water managers have a tool that can prevent phosphorus release from the sediment and can improve understanding of the effects of sediment phosphorus, runoff and drain contribution.

2.1.9 New algae found Research staff at the Commission identified a new strain of algae in Western Australia this year. Pfisteria is very toxic to fish and humans and extremely difficult to identify due to its lifecycle. To find and identify it was ground-breaking work.

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2.1.10 Research and Development The Commission has maintained its investment in research and development activities over the past year. Research and development activities are often incorporated into individual projects proposals, although several significant individual activities have also been undertaken over the year. These include sponsorship of three honours projects, one masters project and two PhD projects at the University of WA and Edith Cowan University. Additional projects are being undertaken by CSIRO and interstate universities on behalf of the Commission. Projects have focused on a range of issues, including water recycling, climatic and meteorological studies, salinity, and sociology. The Commission is also negotiating with CSIRO, State regulatory agencies and industry groups to establish a Cooperative Research Centre for Contamination, Assessment and Remediation. The purpose of the CRC is to significantly improve the national capacity on contaminated sites issues. A formal application developed and forwarded to the Commonwealth Government to be considered for funding, has been short-listed and the final stage of assessment will be completed at the end of October 2002. The new agency formed by the amalgamation of the Commission and the Department of Environmental Protection is a major player in the consortium, which involves an investment of $140 million over a seven-year period.

2.1.11 Land clearing The administration of the Country Areas Water Supply Act led to the issue of 21 clearing licences covering 95.16 hectares. Five clearing licences were issued in the South Coast Region, involving a total of 13.33 ha. Sixteen licences were issued in the South West Region, 6 in the Wellington catchment (47.25 ha) and 10 in the Warren catchment (34.58 ha), involving a total of 81.83 hectares.

2.1.12 Waterways and catchment protection The Peel Waterways Economic Development and Recreation Management Plan review of public submissions is in progress. Twenty-three submissions were received and it is planned to release the final report in July 2002. The Peel Inlet Management Authority (PIMA) continued to function in line with the direction of the Machinery of Government changes until members resolved on the 31 December 2001 to formally submit letters of resignation. A Draft Partnership Agreement between the WRC Board and the Authority was considered in December 2001. The PIMA Communication and Education Working Group Action Plan has involved identifying key waterways stakeholders, surveying community concerns for the waterways and the promotion of PIMA and waterways management with community presentations. Community presentations have included six Progress Associations, Men of the Trees Peel, the Keep Mandurah Beautiful Committee and the Mandurah Licensed Professional Fishermen’s Association. Significant progress in reducing the nutrient input from Gull Road Drain Amarillo into the Serpentine River included the fencing of a 2100 metre section, applying direct seeding and planting 4000 seedlings. To arrest estuary bank erosion along Coodanup Bay, 125 metres of rock revetment walling was installed.

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2.2 Allocation

The Commission works with the community to ensure optimum use of the State’s water resources for economic development within the bounds of acceptable environmental impacts and to meet the values of society. The most significant issue facing the Commission and the community in this regard is the rapidly increasing demand for water. From 1985 to 2000, water use in WA doubled. It is expected to double again by 2020. The Commission is working with the community to determine how to best manage this problem. The increased demand brings more areas under pressure from competing uses. The Commission continues to work with the community to develop allocation policies. For example, the Gingin Water Resources Advisory Committee has guided the development of a merit selection process for allocating water to different purposes. Public meetings were held to discuss different approaches and to help develop policies for allocating the water that can be taken on a sustainable basis. Another issue faced by the Allocation Business is that of increasing inter-regional competition for water. For example, Perth is a growing city but there are social, environmental and economic costs of bringing water to the city. Efficient water use is becoming critical. All these factors must be assessed and decisions made with stakeholder consultation.

2.2.1 Drought management The challenge of increasing demand has been exacerbated by drought. The inflow into Perth’s storage dams from the winter of 2001 is the second worst on record. It was only nine per cent of the long-term average. The Commission is the agency responsible for determining how much water can be taken; the Water Corporation delivers that water. In times of drought, the Commission’s job becomes one of balancing economic, social and environmental factors. For example, over the summer of 2001-02, the potential for environmental harm was not considered to be great enough to justify the social cost of a total sprinkler ban. The Commission worked with the Water Corporation, other government agencies, industry, and others to find the solution to balancing the problem over the summer. The result was allowing sprinklers to be used two days a week and encouraging people to minimise their water use. The community made a major contribution by reducing consumption by over 45 gigalitres, equivalent to more than 23 500 Olympic-sized swimming pools.

2.2.2 State Water Conservation Strategy The Commission is working with the Water Corporation to develop a State Water Conservation Strategy. It is planned to release the report in August 2002. Long-term, it is essential that Perth increases its water efficiency. The community is very interested in water issues and the Commission gives many presentations at industry and community functions. It is essential that this high level of public interest and commitment is maintained, as solutions to the State’s future water supply issues can only be achieved through cooperative efforts. The focus will be on increasing the policy and planning framework to cope with future demand and to meet allocation requirements.

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2.2.3 WA Water Re-use Forum

In line with the increasing focus on water efficiency, the Commission planned the WA Water Re-use Forum to be held in the Kwinana Peel Region in July 2002. The forum will involve local politicians, industry, local government and the Health Department. The aim is to establish a Memorandum of Understanding to further promote the re-use of water on a regional scale. Already, some industrial users have committed to converting to re-use water, saving an estimated 3.6 gigalitres of scheme water over two years, with additional savings in the long term.

The report from this forum will feed into the Water Taskforce, established by the Premier. Following that, a three-day water symposium will be held in October 2002.

2.2.4 Water law reform

Work on water law reform continued this year in line with the National Competition Policy (NCP) overseen by the Council of Australian Governments. In particular, work has progressed on:

• Provision of water for the environment; • Environment and water quality – integrated catchment management; • Environment and water quality – National Water Quality Management Strategy; and, • Water trading.

Progress has continued on the implementation of water allocations for the environment. The Rights in Water and Irrigation Act 1914 formalises WA’s approach to providing water for the environment through a tiered system of statutory water management plans on a regional, subregional and local basis.

WA has endorsed an integrated catchment management/natural resource management policy for the State. Partnership agreements between the WA Government and natural resource management groups are being developed. These will provide support, clarify expectations and quantify deliverables.

The State Water Quality Implementation Plan is being developed and will be a priority for 2002-2003. It was not prepared for release during 2001-2002 as priorities were diverted to drought management. A draft implementation framework for Guidelines for Fresh and Marine Water Quality and Water Quality Monitoring and Reporting are expected to be finalised by August 2002. Dinking water supplies in WA are expected to meet these guidelines by December 2002 (metropolitan areas) and 2005 (country areas). In the interim, local water source protection plans are being prepared.

The National Competition Council assessed the Commission’s progress in implementing the NCP and was satisfied with all aspects other than some elements of the water quality protection program. The State and the NCC are now setting a program to complete the outstanding items.

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2.3 Water Information

The Water Information Business carries out monitoring studies and investigations to ensure the Commission has high quality, verifiable and, in some cases, auditable data on water resources.

2.3.1 Floodplain management The WA Floodplain Management Council has developed a draft WA Floodplain Management Strategy in association with key stakeholders. It has been formulated to improve the effectiveness of floodplain management and reduce losses and hardship caused by floods. It will also help stakeholders carry out floodplain management activities in an integrated manner. Floodplain management studies were completed on the Gascoyne and Moore rivers. The flood-monitoring network for the Blackwood River was also installed. Of the ten basins previously identified as needing early-warning flood mitigation systems, most now have it in process. This is an internet-based system that enables anyone to log on and check water levels and potential dangers when a flood threatens. It is a valuable tool in preventing damage to property, reducing panic and potentially saving lives.

2.3.2 Water Information Database Access to the Water Information Database (WIN) has been improved this year. External access to data stored in WIN comes through a request to the WIN Provision Group. This can be through the internet, over the phone or by email. The depth to groundwater in the metropolitan area can be supplied over the phone by the information officer. Internal access to the database is available by requesting WIN training. Once staff members have been trained, they are given access to the database and can extract data for their needs whenever they require. For infrequent users, it is more efficient to send a data request to the provision team, who provide the data in the requested format. The turn-around time depends on the size of the data set and any value-adding required. It is generally within two days and is often the same day.

2.3.3 Perth Groundwater Atlas The Resource Information Branch and the Irrigation Industry Association (WA) have applied for $30 000 from the Natural Heritage Trust to fund part of the redevelopment of the Perth Groundwater Atlas. The drilling and irrigation industry and hydrogeological consultants use the atlas extensively. The printed version used in the field will be updated and reprinted. Funds from sales of the printed version will be used to redevelop the website. This provides a live version, which will be automatically updated whenever the underlying data sets are modified.

2.3.4 Indian Ocean Climate Initiative The fundamental aim of the Indian Ocean Climate Initiative (IOCI) is to support informed decision-making for climate affected sectors within Western Australia’s socio-economic and environmental management and planning.

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IOCI is a partnership between state agencies and research partners CSIRO and the Bureau of Meteorology Research Centre.

In mid 2001, the Commission and partner agencies, with the Australian Greenhouse Office, held a workshop on south west climate variability. Numerous briefings on climate have been made to government agencies and peak bodies including the Greenhouse Taskforce. The immediate outcome goals for a renewed phase of the IOCI program are: • a science based development and implementation of the State Greenhouse Strategy, particularly in respect to adaptation;

• significant benefits in planning outcomes through continued improvements in understanding regional climate change and in predicting future expectations; • effective use of climate information in operational management decisions including applications where useful inter-seasonal forecasting has been developed; and • well targeted communication of climatic information which is of real practical assistance to policy-makers and decision-makers.

The importance of IOCI’s goals has been made evident by the change of climate regime in the South-West over the last quarter century. These shifts appear to have involved an inter- play of natural phenomena and the Enhanced Greenhouse Effect. On-going research on Western Australia’s climate is designed to support the drafting of the State Greenhouse Strategy as well as building upon past studies of natural variability. The initiative will continue to foster regional application of national and international development in climate research, and develop specific tools and applications relevant to regional decision-priorities.

2.3.5 Rural Water Plan The Rural Water Plan is a new program in the Water and Rivers Commission following transfer of the program from the Office of Water Regulation in December 2001. Over the past seven years the Plan has played a significant part in the successful implementation of water supply initiatives that have resulted in an improvement in water supplies to a number of rural towns and communities as well as over 2000 farming businesses. The year was highlighted by the integration of the Plan into the Commission’s Business structure and the continued delivery of rural water programs in the medium to lower rainfall areas of the State. Program delivery is consistent with directions set in the Farm Water Plan review undertaken in 2000/2001. The Plan provides strategic direction to address the problem of water deficiency in dryland farming districts of the agricultural area. The Rural Water Program objectives are to:

• Encourage self-sufficiency in on-property (farm) water supply, • Improve the reliability, continuity and quality of on-property water supply, and • Provide rural communities with reliable emergency water supply arrangements. The key Rural Water Plan programs are: • Farm Water Grants Scheme, • Pastoral Water Grants Scheme,

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• Community Water Supply Program, • Water Deficiency Arrangements, and • Agricultural Area Dams.

The Farm Water Grants Scheme, Community Water Supply Program, and the Rural Water Supply Coordinating Committee have been very successful in promoting and encouraging the development and installation of improved water supply infrastructure in those rural areas of the State suffering from serious water deficiency.

2.4 Corporate support

The Corporate Support Business, which provides systems, policies and practices to optimise the Commission’s people, finances, information, assets and stakeholder interactions, was heavily influenced by amalgamation. Staff in the business have been busy bringing the various operating systems of the Commission and the Department of Environmental Protection together into one system. The Commission had planned to introduce the State Record Electronic Data Management system in 2001-2002 but this was deferred until next year in view of amalgamation. The amalgamation of the WRC and DEP necessitated the immediate major reorganisation of the Corporate Support Business. Among the many challenges was provision of access for staff of two previously separate agencies to common corporate support systems. These included financial reporting, human resource management, the communications network and corporate data systems. Developing a unified approach to business processes that were previously subject to different policies presented a special challenge. These processes directly affected people’s daily working lives and involved change for many people. Although not without difficulties, the reorganisation of corporate services has been achieved successfully.

2.4.1 Community Involvement Framework ‘Working in partnership with the community’ has been identified as a key component of the business of the new department. While community involvement has been an essential approach of the amalgamating agencies for many years, the birth of a new department provides a great opportunity for recommitment and realignment to best practice and to new common goals and to benefit from the synergies of complementary programs.

The department has begun developing a Framework for Community Involvement, which will encompass and draw together a coherent policy framework for all staff. In summary the process includes: • Targeted research into the underlying corporate culture fostering DEWCP community involvement practices;

• Workshops with staff and external stakeholders; and • Establishment of internal and external reference groups to provide input into the framework’s development. Key elements of the framework will be a clear policy direction in community involvement for DEWCP, a strategy for developing the community involvement culture in the agency and

22 Annual Report 2001–2002 Water and Rivers Commission

tools for program managers and officers to help incorporate community involvement in programs. The benefits of Community Involvement Framework will include: • Improving communication and reducing tension between the wider community and government departments; • Better understanding public perceptions and better anticipating community response to actions and decisions of the department; and • More effectively managing the expectations of the wider community and the department in consultation and involvement processes early in the development of projects. The successful implementation of the Community Involvement Framework will require a long-term process to influence the corporate culture of the Department. Part of the strategy to effect this change is research into the current corporate culture of DEWCP, and the motivators and barriers for implementation of a Community Involvement Framework. This research showed divergent views about where we are now, but very highly consistent and positive views about where we need to be in the future; that is, an agency that places very high value on communications and community involvement in our business. As the framework is developed, with staff and stakeholder support, an intensive training program will be developed and implemented to ensure we have skills to deliver what is needed. In the meantime, the good community involvement work already under way in the department will continue and, as the new department is finally launched, our relationships with stakeholders can be further consolidated. This is already happening at an operational level, with the formation of a new Communications Branch encompassing the community support and public affairs functions of the Water and Rivers Commission, the Department of Environmental Protection and the Keep Australia Beautiful Council. This area now hosts a suite of highly respected community education and involvement programs such as AirWatch, Ribbons of Blue and WasteWise, as well as the busy areas of media management, ministerial liaison, public information services and publications.

2.4.2 Freedom of Information During the year, 40 Freedom of Information (FOI) applications were received by DEWCP. Of these, 38 were non-personal and two were personal. Nine of these were for the Commission and 31 for the DEP. FOI applications to the Commission were made by: Individuals/companies (6) Members of Parliament (0) Solicitors (2) Community Groups (1) In reference to documents released by the Commission, application packages ranged from one document to 45 documents per package; the average number of documents per application package was 13.

23 Water and Rivers Commission Annual Report 2001–2002

No applications were refused. There were two internal reviews and two external reviews. The average processing time for each application was 37 days. Areas of interest for FOI requests included land development, compliance of licensing conditions of premises, water rights, and proposals submitted for assessment. Exemption clauses used were: • Cabinet and Executive Council; • Personal Information; • Commercial or business information; • Law enforcement, public safety and property security; • Deliberative processes; • Legal Professional Privilege; • Confidential communications; and, • The State’s financial or property affairs.

2.4.3 Information Services The merger of the WRC and DEP’s information services required consolidation to a common standard in a wide range of areas. These included servers, desktop machines and network configuration; telecommunications and telephony; records and mail services; corporate systems; software management; web sites (Internet and Intranet); Helpdesk services; email and diary services. In each case, consultations with staff were held and feedback on proposed solutions sought. The most important issue was IT network service delivery – how PCs and servers are designed to interact with each other and deliver services across the network. The only commonality was in the software being used (Microsoft, Oracle and ESRI); hardware and network design was significantly different. Because of the seriousness of the decision, impartial external analysis and advice was sought. Internal consultation with owners of corporate systems helped ensure that the proposed solution was well explored and met requirements. The choice was based on lowest risk, equal treatment of all users, lowest cost (including hardware, software, and support), and greatest flexibility; it will mean that DEP’s Macintoshes are replaced with PCs. Regional staff were early beneficiaries of the decision through improved access to corporate systems and data. Central to the establishment of many merged services was the installation of a high-speed communications link between the Hyatt building and the Hartley Poynton building. It supports the IT network service delivery mentioned above, and also underpins record management, a single communication and scheduling environment, Helpdesk services, and corporate business management tools. Common corporate tools were established to assist business and cultural integration. Existing systems for project management, business planning, phone manager, financial and human resources systems, licensing systems, and the Ministerial Tracking System were redesigned to cover the new agency’s activities in the new IT environment. Extensive consultation with owners and users of these systems helped produce an improved suite of corporate tools. Because of the number of staff relocations from the Hartley Poynton Building to the Hyatt, a new Hyatt PABX was purchased to handle the increase in extensions. A link between the PABXs enabled all inter-office calls to be internal calls.

24 Annual Report 2001–2002 Water and Rivers Commission

The integration of records management services was a big issue due to the number of records involved and the need to meet new legislative requirements. Records management software was selected and an audit of both agencies’ holdings was conducted, allowing record types to be identified and numbering systems proposed. A transfer of records into the new system followed.

2.4.4 People Staff Numbers (FTE)

2000-01 2001-02

Full-time permanent staff 243 265 Part-time permanent staff 11 21 Fixed term contract staff 97 89 Redeployees 2 0 Total staff 351 375 Staff recruited 37 98

Recruitment and selection

The Water and Rivers Commission manages recruitment and selection for the Commission itself, the Swan River Trust and the Swan Catchment Centre. Ninety nine positions were advertised during the year (93 WRC/5 SRT). Seventy three (69 WRC/4 SRT) of these positions were filled by internal applicants, and 25 by external applicants. One position was still subject to recruitment and selection action at the end of the reporting period. Spherion Outsourcing Solutions supply recruitment and selection services to the Commission. The contract began in January 2001 and continues until January 2003, with a one-year option. Spherion won a contract due to its ability to partner the Commission in its recruitment campaigns, and its expertise in e-recruitment. A 12-month review on the services provided by Spherion has been completed and an updated Memorandum of Understanding signed by both parties.

Induction The Water and Rivers Commission has an active Induction Program that ensures all new employees are fully inducted into the Commission’s culture and objectives. Further review on the Induction Program is to take place as part of the formation of the DEWCP.

Human Resource Information System During the year the personnel and payroll functions for the Department of Environmental Protection, the Keep Australia Beautiful Council and the Office of the Heritage Council were converted from an external provider to the in-house run Concept HRMIS. The human resource management function including payroll production is now provided via the merged Human Resource Branch. Improvements to system functionality have provided greater access to people management data and processes. This has improved the self sufficiency of managers and staff in the people management function.

25 Water and Rivers Commission Annual Report 2001–2002

Workers Compensation

Five worker’s compensation claims were lodged during the financial year. There were three claims involving lost time, with a total of 24 days of work time lost.

Grievance Officers

The Commission currently has 10 grievance and contact officers, all formally trained in grievance resolution. Commission grievance officers have met with grievance officers of the Department of Environmental Protection to form “GO Net”, a Grievance Officer Network. “GO Net” will meet quarterly and run in-house sessions to ensure an open forum of discussion on issues being dealt with by grievance officers.

Equal Employment Opportunity (EEO) The Commission has an EEO Working Group that reviews and manages recommendations of the Commission’s EEO Management Plan 1999-2000. An updated EEO Management Plan is being developed. This will encompass the formation of DEWCP and ensure that the agency’s managers and supervisors work towards the following objectives: • The organisational culture values diversity and the workplace is free from harassment;

• The workplace is free from biased and discriminatory employment practices; and, • Employment programs and practices include measures, where appropriate, to achieve diversity and equality of opportunity for people of EEO groups. A meeting of all grievance officers from the merging agencies has taken place. The recently established Grievance, Harassment and Discrimination Policies and Procedures are currently being reviewed to ensure suitability for the newly forming DEWCP.

These new policies will reflect any legislative changes and also cover issues such as bullying and intimidation currently not covered by EEO legislation.

Disability Services Plan

The Commission continues to provide appropriate services and facilities for stakeholders with disabilities. Renovations undertaken within any Commission facility throughout the State take into account the recommendations of the Disability Access Audit. Other initiatives currently in place include: • All Commission stationery and reports note the National Relay Service fax and phone numbers;

• The Commission’s contact details on the website advise of the availability of the National Relay Service; and • The provision of services to people with disabilities is being outlined in the Commission’s Guide to our Services.

26 Annual Report 2001–2002 Water and Rivers Commission

2.4.4.1 Public Sector Standards

During 2001-02, no request for a right of review of the Public Sector Standards for Recruitment and Selection was received. All policies and procedures adopted by the Commission in support of Public Sector Standards in Human Resource Management are accessible to staff on the Intranet.

2.4.4.2 Ethical Standards The Commission requires all employees and contractors to exercise high standards of ethical behaviour in performing their duties, as set out in the Water and Rivers Commission Code of Conduct. The Water and Rivers Commission Code of Conduct for Board and Committees guides the behaviour of our Board and Committee members. There were two breaches of the Water and Rivers Commission Code of Conduct during 2001-02. One of these breaches related to the inappropriate use of Commission resources and the other related to the inappropriate behaviour of an employee.

In one case, the breach was admitted by the staff member and was found to be minor and the officer was disciplined for this minor offence by having a letter placed on his/her personal file. In one case, the breach was investigated and proved. The officer was found to have breached the Commission’s Code of Conduct as well as the Public Sector Management Act 1994. The breach was determined to be of such serious nature that dismissal was the only appropriate course of action.

Statement of compliance with Public Sector Standards

In the administration of the Water and Rivers Commission, I have complied with the Public Sector Standards in Human Resource Management, the WA Public Sector Code of Ethics and our Code of Conduct. I have put in place procedures designed to ensure such compliance and have conducted appropriate internal assessments to satisfy myself that the statement made above is correct. There were no applications for breach of standard reviews made during 2001-02.

Roger F Payne CHIEF EXECUTIVE

27 Water and Rivers Commission Annual Report 2001–2002

3 Corporate governance report

3.1 Board overview

The Board of Management is the governing body of the Water and Rivers Commission, with legislative authority to perform the functions, determine the policies and control the affairs of the Commission. The Chief Executive is responsible for day-to-day operations. The Board approves corporate goals, direction, performance targets, operating and capital budgets, and ensures proper risk management processes are in place. It monitors operating, financial, environmental and safety performance through monthly reports, and ensures legal compliance and ethical behaviour.

Board meetings are normally held once a month in the Commission’s Boardroom in Perth.

3.1.1 Board members The backgrounds and experience of the Board’s members are diverse. Its seven members are made up by: – Chairman. – Deputy Chairman. – Four members. – Chief Executive (appointed for the term of his office).

The Chairman, Deputy Chairman and non-executive Board members are appointed by the Minister. They hold office for up to three years. Non-executive Board members are eligible for re-appointment and their duties are not full-time. There is no limit on the time a Board member may serve on the Board. The Minister may at any time remove a Board member from office.

3.1.2 Changes to the Board Mr Ben Franklin resigned from the Board in September 2001.

3.1.3 Accountability and independence The Board operates within the guidelines of the Water and Rivers Commission Act 1995. The Board operates in accordance with the Public Sector Management Act 1995 and the Commission’s Code of Conduct. The Board has also developed a Code of Conduct for all Boards and Committees of the Commission.

3.1.4 Performance monitoring and reporting The Commission provides written monthly reports on its activities and financial statements to the Board. Additionally, performance is evaluated at 31 December and 30 June each year. Annual performance is reported to the Minister and Parliament in the Commission’s Annual Report.

28 Annual Report 2001–2002 Water and Rivers Commission

3.1.5 Board member profiles

Ken Webster – Chairman Mr Webster was Chairman of the Water Authority of Western Australia from July 1990 until December 1996, presiding over several major studies involving community consultation and a significant increase in the environmental awareness and commitment of the Authority. Previously he was Director of Water Resources with the Authority for five years. For 17 years before that, he was Chief Engineer Water Resources with the Public Works Department. Mr Webster has comprehensive experience and expertise in management of natural resources, particularly in respect to land/water interactions and in planning and policy making for sustainable use of water resources, including membership on the WA Water Resources Council. He is a member in the General Division of the Order of Australia (AM) for his service to water resources.

Jos Chatfield – Deputy Chairman Mrs Chatfield is a farmer and nursery proprietor from Tammin. She has practical experience in large-scale revegetation, rural resource management and nature conservation. She has been involved at local, state and national levels through her special interest in landcare and salinity issues, having served on the National Soil Conservation Advisory Committee to the Federal Minister for Resources, and the Board of Greening Australia. Mrs Chatfield is a Commissioner of the Australian Heritage Commission, and the State Salinity Council, Advisory Council to the EPA, Gordon Reid Foundation for Conservation, and CSIRO Regional Consultative Committee. She currently chairs the Commission’s State Water Reform Council.

Noel Robins Mr Robins was Commissioner for Waterways (Western Australian Waterways Commission) from 1979 to 1995. He has had a distinguished career in business and sailing administration, including being Executive Director of the Royal Perth Yacht Club’s administration of the 1987 America’s Cup Challenge. Extensive experience in river and estuary management has included chairing the Canal Development Steering Committee, and playing a lead role in creation of the Swan River Trust and community-based Management Authorities to tackle environmental problems in the Albany waterways, Wilson Inlet and the Avon River.

Des Kelly Dr Kelly has more than 40 years experience in State Government and recently retired from the position of Chief Executive Officer, Department of Resources Development. He graduated from the University of Western Australia in 1955 with a Bachelor of Engineering with First Class Honours in Civil Engineering and was awarded a PhD from the University of London in 1963. His early work was on construction projects with the Harbours and Rivers Branch of the Public Works Department. Subsequently, he was involved on behalf of the State in the establishment of major resource developments and their associated infrastructure. In 1980, Dr Kelly was appointed Under Secretary of the Department of Minerals and Energy. His service with that agency was acknowledged in 1992 when he was made a Member in the General Division of the Order of Australia (AM) for his service to mining.

29 Water and Rivers Commission Annual Report 2001–2002

Rod Willox

Mr Willox is a former medical scientist and army officer (Colonel), now retired. He was educated in Melbourne and Adelaide and is a graduate of the University of Western Australia and Curtin University in pathology and medical science. Mr Willox also has a Diploma in Occupational Health and Safety and is a graduate from the Joint Services Staff College, Canberra. Mr Willox has been very active in community affairs and was Deputy Mayor of the City of Stirling between 1997 and 1999. He also served on the State Executive of the Local Government Association. In addition Mr Willox is a member of the Local Government Advisory Board, Chairman of the Australia Day Council, and on the Board of Management RSL War Veterans Homes (WA).

Roger Payne – Chief Executive

Mr Payne has more than 30 years experience in the water industry gained through the Melbourne Water Corporation and its predecessors, and the consulting industry. This experience has ranged from technical engineering through to customer service provision, community and political negotiations, and commercial innovation, through to corporate strategy development and major change implementation.

3.1.6 Conflict of interest The Commission has procedures for identifying, preventing or resolving conflicts of interest. These procedures are outlined in the Code of Conduct. All Commission personnel with duties related to the negotiation of a contract must disclose current or prospective interests to their immediate supervisor. The interest of a member’s immediate family must also be disclosed, if they are known. Where a person possesses such an interest, then either the basis of that interest should be discontinued, or the person should cease the duties involved or obtain management permission to continue. Board members are also required to declare conflicts of interest.

3.1.7 Ministerial directions There were no ministerial directions given during 2001-02.

3.1.8 Committees and other bodies The Board relies on a number of committees, councils and management authorities to advise on the development and implementation of protection policies for the State’s water resources. In particular, the following councils and committees provide advice to the Board on various matters:

• State Water Reform Council – established to assist the Commission with the process of legislative change. • Rivers and Estuaries Council – established under the Waterways Conservation Act 1976 to advise on the management and protection of rivers and estuaries. • Stakeholder Council – established to advise on the Commission’s performance and key issues.

30 Annual Report 2001–2002 Water and Rivers Commission

• Audit Committee – established to review and approve the Commission’s audit plans, reports and activities.

• Water Resource Allocation Committee – established to advise on policy development, planning and management for surface and groundwater resources. • Floodplain Management Council – established to coordinate floodplain management activities throughout the State.

3.1.9 Board meetings The number of meetings of the Board and committees and number of meetings attended by each member, during the 12 months ended 30 June 2002 are as follows:

Water and Audit Rivers and Water Swan State State Stakeholder Rivers Committee Estuaries Resources River Salinity Water Council Commission Council Allocation Trust Council Reform Council Board Committee Meetings

MEETINGS HELD 11 1 1 8 23 0 0

Member Mr K C Webster 11* Mr D N Robins 10 1 17 Mrs J Chatfield 10 Dr D R Kelly 9 8* Mr R M Willox 11 1* Mr R F Payne 8 1 Mr B Franklin 1** (Resigned September 2001)

** Chairman of Committee ** Mr Franklin was not present for the entire meeting

The Geographe Catchment Council was established in July 1997 as a community-based council to deliver integrated Natural Resource Management to the Geographe catchment and adjacent marine environment.

The Cockburn Sound Management Council (CSMC) was officially launched in August 2000 as a new Committee of the Board to coordinate environmental management and planning for Cockburn Sound and its catchment. The Draft Management Plan was released for three month public comment in December 2001. The CSMC is currently amending the Plan in accordance with public submissions. Feedback on the CSMC’s progress in managing Cockburn Sound has to date been very positive. A highlight of the year was the completion of the study on the opportunities and constraints for enhancing multiple use management of Cockburn Sound.

31 Water and Rivers Commission Annual Report 2001–2002

3.1.10 Waterways Management Authorities The Commission has begun the evolution of the management authorities established under the Waterways Conservation Act to community waterways and catchment councils, which will advise the Commission on policy and management direction. To fulfil this function in the interim, waterways management councils are being established as advisory committees to the Water and Rivers Commission Board. Once the management authorities have been formally dissolved, management powers will be delegated to the regional managers. This will provide greater opportunities for community involvement in catchment management as well as enabling the delivery of legislative provisions.

3.1.11 Relationship with the Swan River Trust The Swan River Trust was established under the Swan River Trust Act 1988 to manage the Swan-Canning river system. The philosophies and functions of the Commission and Trust are very similar and complementary, with the Commission having a very close relationship with the Trust. The Swan River Trust is a separate legal entity and requires separate accounting and reporting.

32 Annual Report 2001–2002 Water and Rivers Commission

4 Compliance reports

4.1 Responsible Minister

The Water and Rivers Commission’s primary responsibility during the reporting period was to the Minister for the Environment and Heritage, who exercised authority under the Water and Rivers Commission Act 1995.

4.2 Statement of compliance with written law 4.2.1 Enabling legislation The Water and Rivers commission was established under the Water and Rivers Commission Act 1995. The Commission administers the Water and Rivers Commission Act 1995 and the Waterways Conservation Act 1976.

4.2.2 Legislation administered The Commission also administers parts of the following Acts: • Water Agencies (Powers) Act 1984 • Rights in Water and Irrigation Act 1914 • Metropolitan Water Supply, Sewerage and Drainage Act 1909 • Country Areas Water Supply Act 1947 • Metropolitan Water Authority Act 1982 • Water Boards Act 1904

4.2.3 Other legislation impacting on Commission activities • Environmental Protection Act 1986 • Freedom of Information Act 1992 • Swan River Trust Act 1988 • Financial Administration and Audit Act 1985 • Public Sector Management Act 1994 • Salaries and Allowances Act 1975 • Equal Opportunity Act 1984 • Government Employees Superannuation Act 1987 • Occupational Health, Safety and Welfare Act 1987 • Worker’s Compensation and Assistance Act 1981 • Industrial Relations Act 1979 (Employment Acts) 1991 • State Supply Commission Act 1991 • Disability Services Act 1993

33 Water and Rivers Commission Annual Report 2001–2002

4.2.4 Statement of compliance with Environmental Conditions

As part of the conditions set by the Minister for the Environment on the Jandakot Groundwater Scheme Stage 2: Public Environmental Review, the Gnangara Mound Groundwater Resources Review of Proposed Changes to Environmental Conditions and the East Gnangara Environmental Water Provisions Plan Public Environmental Review, the Water and Rivers Commission is responsible for meeting water level criteria for wetlands and vegetation on the Gnangara and Jandakot groundwater mounds.

Over the 2001-02 financial year, 13 of the 79 criteria were not met. This compares to 11 breaches over the 2000-01 financial year. The key factors contributing to these breaches were very low rainfall, public and private groundwater abstraction, diversions in surface water drainage away from wetlands and water use from extensive pine plantations.

Nine breaches of criteria occurred on the Gnangara Mound, including breaches at five wetlands. The preferred minimum spring peak water level was not achieved at Coogee Springs or Lake Mariginiup breaching the criteria of reaching these levels at least four in six years. Further delays were experienced in the commissioning of the artificial maintenance bore for Coogee Springs which was operational in early September of 2001. However, this did not provide adequate time for pumping to raise water levels sufficiently to reach the preferred minimum peak water level by the end of spring. The absolute minimum criterion at Lexia wetland 186 was breached with some additional impacts related to increased abstraction from the Water Corporation’s Lexia scheme. The EWP criteria were also breached at Lake Wilgarup, however these are interim rather than statutory criteria, so technically there was no legal breach. Water levels at Lake Joondalup fell below the preferred minimum criterion breaching the requirement for water levels not to fall below this level greater than two years in six.

Water level criteria were breached in four Gnangara vegetation monitoring bores, MM59B, PM6, JB5 and WM1. Water Corporation production bores closest to these monitoring bores were shut down during 2001-02 to minimise the impacts of public abstraction upon water levels. Abstraction from the Pinjar scheme and the nearby pine plantation are the primary factors affecting water levels in PM6. Production bores around MM59B have been off for a number of years, however water levels were still low enough to cause a breach of criteria at this site. A continuation of low rainfall levels during the reporting period was a major factor influencing water levels over the Gnangara and Jandakot Mounds. Other factors influencing the decline in water levels were public and private groundwater abstraction and water use by pine plantations (Gnangara Mound only).

There were four breaches of criteria on the Jandakot Mound during the 2001-02 period. Shirley Balla Swamp dried out before the end of January, therefore breaching its criteria. Production bores west and east of this wetland have been switched off since December 1998. Beenyup Road Swamp which is close to Shirley Balla Swamp has also breached its preferred minimum criteria this year. Forrestdale Lake breached its absolute minimum criteria by 21 cm during the 2001-02 period. The nearest production bores to the west have been shut down to minimise the impact of public abstraction upon Lake Forrestdale water levels. North Lake breached its absolute minimum criterion again in 2001-02 which it has also breached on a number of other occasions in recent years. The breaches primarily relate to a

34 Annual Report 2001–2002 Water and Rivers Commission

reduction in the volume of surface water entering North Lake from stormwater drainage, following the diversion of two drains away from the lake to improve water quality in the wetland. This criterion will be reviewed as part of the Section 46 process.

The Water and Rivers Commission is aware of the current drought situation and together with the Water Corporation, has taken action to prevent or minimise breaches in criteria by switching off a large number of production bores. In 2001-02, a total of 41 production wells were switched off on the Jandakot and Gnangara Mounds. Despite these actions, breaches of criteria have still occurred. The very low rainfall in recent years has resulted in limited recharge to aquifers and consequently lower groundwater levels and wetlands water levels.

The number of breaches of water level criteria in recent years has prompted a Section 46 review of environmental conditions set on Jandakot and Gnangara groundwater resources. The review is currently under way and will be undertaken in two stages. A preliminary Stage 1 Report on the state of the mounds and short term management measures was submitted to the Environmental Protection Authority in November 2001. A similar report on the status of the mounds and recommended management measures for the 2002-03 summer will be submitted to the EPA in November 2002. Stage 2 work on a more comprehensive review of sustainability of the mounds and Ministerial conditions is underway. This is due to be completed by December 2004. The review will consider not only water level criteria, but also management of public and private groundwater use, pine management and internal compliance monitoring and management issues. A significant focus will be the management of Environmental Water Provisions under the current, and likely future, scenario of a dry climate and increasing demand for water.

4.2.5 Advertising and sponsorship

Under Section 175Ze of the Electoral Act 1907, the Commission reports the following expenditure on marketing and advertising during 2001-2002:

Class of Expenditure Total Name of person/agency where total expenditure annual payments are greater than $1500 for class Advertising agencies $2 247 MJB&B Advertising and Marketing $2 247 Market Research organisations $7 525 Patterson Market Research $7 525Research Polling organisations Nil - Direct mail organisations Nil - Media advertising $97 081 Marketforce Productions $57 005 (includes advertising staff vacancies) Media Decisions WA $40 076

Total Expenditure $116 853

35 Water and Rivers Commission Annual Report 2001–2002

AUDITOR GENERAL

To the Parliament of Western Australia

WATER AND RIVERS COMMISSION PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, 2002

Matters Relating to the Electronic Presentation of the Audited Performance Indicators This audit opinion relates to the performance indicators of the Water and Rivers Commission for the year ended June 30, 2002 included on the Commission’s web site. The Board is responsible for the integrity of the Commission’s web site. I have not been engaged to report on the integrity of the Commission’s web site. The audit opinion refers only to the performance indicators named below. It does not provide an opinion on any other information which may have been hyperlinked to or from these performance indicators. If users of this opinion are concerned with the inherent risks arising from electronic data communications, they are advised to refer to the hard copy of the audited performance indicators to confirm the information included in the audited performance indicators presented on this web site. Scope I have audited the key effectiveness and efficiency performance indicators of the Water and Rivers Commission for the year ended June 30, 2002 under the provisions of the Financial Administration and Audit Act 1985. The Board is responsible for developing and maintaining proper records and systems for preparing and presenting performance indicators. I have conducted an audit of the key performance indicators in order to express an opinion on them to the Parliament as required by the Act. No opinion is expressed on the output measures of quantity, quality, timeliness and cost. My audit was performed in accordance with section 79 of the Act to form an opinion based on a reasonable level of assurance. The audit procedures included examining, on a test basis, evidence supporting the amounts and other disclosures in the performance indicators, and assessing the relevance and appropriateness of the performance indicators in assisting users to assess the Commission’s performance. These procedures have been undertaken to form an opinion as to whether, in all material respects, the performance indicators are relevant and appropriate having regard to their purpose and fairly represent the indicated performance. The audit opinion expressed below has been formed on the above basis. Audit Opinion In my opinion, the key effectiveness and efficiency performance indicators of the Water and Rivers Commission are relevant and appropriate for assisting users to assess the Commission’s performance and fairly represent the indicated performance for the year ended June 30, 2002.

K O O’NEIL ACTING AUDITOR GENERAL November 22, 2002

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

36 Annual Report 2001–2002 Water and Rivers Commission

5 Performance indicators

Statement by accountable authority on performance indicators We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Water and Rivers Commission’s performance, and fairly represent the performance of the Water and Rivers Commission for the financial year ended 30 June 2002.

Mr Ken Webster BOARD CHAIRMAN

Mr Roger Payne CHIEF EXECUTIVE/BOARD MEMBER 31 August 2002

Performance Framework The performance framework below shows the relationships between what we sought to achieve and our performance indicators. Our main outcome is divided into sub-outcomes which are separately identified into the allocation and protection and enhancement of water resources. Allocation relates to a series of activities that together enable the Commission to:

• Assess the quantity of water in its natural state, • Establish the quantity of water required to sustain the body itself and the environment that depends on it, • Allocate water for use by people to support economic or social needs;

• License and regulate the withdrawal of water from water sources without impacting on the environment; and • Educate and promote initiatives with other government agencies on the efficient use of water and support for rural sectors.

37 Water and Rivers Commission Annual Report 2001–2002

The key relationships between our performance indicators and the two primary functions are:

Planning Management

Percentage of licensed use covered by a formal management plan – Board approved – Senior management approved Percentage of Groundwater Management Areas with licensed allocation in excess of management objectives Average accrual cost per Gigalitre of water managed in accordance with agreed management plan (1888 GL) Accrual cost of issuing, managing and administering Water Allocation Licenses Accrual Cost of building, maintaining and operating the State Reference Network for the collection of water resources quality and quantity information Average level of deficiency per grant round Percentage of grant applications assessed within target deadline

Administrative cost per grant application

Protection and enhancement of the State’s water resources is aimed at maintaining or improving the health of our waterways, wetlands and public water sources.

Like Allocation, there are two primary functions of planning and management. Management includes on the ground actions aimed at restoring or enhancing the land that surrounds the water source.

Planning Management

Surface water quality – Annotated hydrograph of Collie River The extent to which management objectives have been developed for rivers, estuaries and wetlands The extent to which rivers, estuaries and wetlands water quality meet agreed management objectives The extent to which the waterways are protected while providing facilities for public use The extent to which management objectives have been developed to guide the protection of the state’s public water supply catchments/basins

Accrual cost per km2 of catchment where management and improvement activities are undertaken Average accrual cost per statutory referral Average water supply protection cost (per Gigalitre) covered by an agreed management plan (1888 GL)

38 Annual Report 2001–2002 Water and Rivers Commission

Table 1: Summary of key performance indicators

Outcome: Sustainable use of water resources for economic development Objective: Water use is within sustainable limits

Note Unit 12 months 12 months 12 months Target No. Actual June 00 June 01 June 02

Percentage of licensed use covered by a A formal management plan – Board Approved % 63 62 59 100 – Senior Management Approved % 29 29 31 100 Percentage of Groundwater Management B % 3.8 3.8 15.3 <5 Areas with licensed allocation in excess of management objectives Average accrual cost per Gigalitre of water C Avg $ 6062 7117 5606 To reduce managed in accordance with agreed cost management plan (1888 GL) Accrual cost of issuing, managing and D Avg $ 146 181 215 To reduce administering Water Allocation Licenses cost Accrual Cost of building, maintaining and E Avg $ 1749 1986 2051 To reduce operating the State Reference Network for cost per the collection of water resources quality and work unit quantity information

Objective: Rural water supply assistance

Average level of deficiency per grant round F 53 49 44 >25 Percentage of grant applications assessed G Score 41 100 43 100% within target deadline % Administrative cost per grant application H Avg $ 3806 3765 1267 Reducing cost

39 Water and Rivers Commission Annual Report 2001–2002

Outcome: Protection and enhancement of the quality of the state’s surface and groundwater Objective: Clean and healthy water resources

1. For Rivers, estuaries and wetlands Restore high risk/critical water dependent systems to functional condition. Slow rate of decline of water salinity in priority catchments. Reduced algal blooms, pollution and fish kills in priority areas. 2. For public water supply Quality of existing public water supply resources are maintained

Effectiveness Indicators

Note Unit 12 months 12 months 12 months Target No. Actual June 00 June 01 June 02

Surface water quality – Annotated I Graph To hydrograph of Collie River improve The extent to which management J %636363 60% objectives have been developed for rivers, estuaries and wetlands. The extent to which rivers, estuaries and K %616464 To wetlands water quality meet agreed improve management objectives The extent to which the waterways are L No. of 164 123 114 To reduce protected while providing facilities for pollution public use complaints The extent to which management M %323737 100% objectives have been developed to guide the protection of the state’s public water supply catchments/basins

Efficiency Indicators

Accrual cost per km2 of catchment where N Cost $ 47 40 52 To reduce management and improvement activities per km2 are undertaken Average accrual cost per statutory referral O Cost $ per 567 1369 892 To reduce referral Average water supply protection cost P Cost $ 1413 564 603 To reduce (per Gigalitre) covered by an agreed per GL management plan (1888 GL)

40 Annual Report 2001–2002 Water and Rivers Commission

NOTES TO THE PERFORMANCE INDICATORS for the year ended 30 June 2002

A. Percentage of licensed use covered by a formal management plan – Board approved – Senior management approved

Outcome: Sustainable use of water resources for economic development Objective: Water use is within sustainable limits The Commission aims to have formal plans indicating the amount of water available and allocation policies for all areas where licensing is carried out. The indicator may be used to assess performance by showing the extent to which water resources are being allocated to beneficial uses following public consultation. The long term objective is ensure all water allocated is covered by a plan that is agreed with stakeholders, and government representing the environment and future generations.

Relevance to desired outcome This indicator reflects the effectiveness of the Commission in managing water use in accordance with formal (Board approved) management plans, for the sustainable benefit of the community. The present indicator relates to groundwater management.

The indicator has been derived by determining the volume of water licensed for use in accordance with formal management plans and dividing by the total volume of water licensed for use in the State. Not all the water used in the State requires licences. Licensing is introduced when use grows to levels which require management.

Effectiveness measure

Formal plans are defined to mean those plans which are endorsed by the previous Water Authority of Western Australia’s Board, or the current Water and Rivers Commission Board following an appropriate level of community involvement in their formulation. The formal plans also include independent review by the Allocation Committee before Board approval. Senior Management approved plans are plans which have not yet received Board and Allocation Committee approval. The minor changes are a result of increased allocations in emerging groundwater resource areas. Note B provides a summary of the Commission’s performance in managing to these planned objectives.

41 Water and Rivers Commission Annual Report 2001–2002

B. Percentage of groundwater management areas with use in excess of management objectives

Outcome: Sustainable Use of Water Resources for Economic Development

Objective: Water use is within sustainable limits

Having set water allocations for environmental, social and economic demand in plans, the Commission aims to license and regulate water usage, such that it does not exceed management or sustainable levels.

The effectiveness of the management of the resource is reflected in whether the resource is being used in excess of management objectives, based on assessed available resources. Performance may be assessed by viewing increases in areas with over-use of the source as indicative of the need for improved resource management in some areas.

Relevance to desired outcome

The indicator is relevant to the outcome because it shows how the Commission’s management is in ensuring sustainable benefits from groundwater. The indicator has been derived by determining the number of groundwater management areas with a licensed use greater than the management objectives described in the plans and dividing by the total number of groundwater management areas in the State.

Effectiveness measure

About three fifths of the licensed groundwater use is covered by formal ground water management plans with the highest priority placed in areas with high utilisation levels. About 10.9% (or 51 of 46) declared ground water management sub areas have allocations close to, or at the level of sustainability. Exceeding management limits does not mean that the resources are over-allocated. The Commission establishes precautionary management levels allowing for the environment. The areas where licensed allocations exceed management limits include Albany, Blackwood, Bolgart, Gascoyne and Gnangara.

Other groundwater sources are approaching the sustainable threshold and need closer management to ensure sustainability. This closer management will require increased levels of policy development, resource monitoring and re-evaluation, user compliance monitoring and community education and awareness raising. Development pressures also require the Water and Rivers Commission to extend the areas of licensed water use.

The Commission will also need to expedite its review of existing plans in high priority areas with relatively high utilisation levels to maintain sustainability.

42 Annual Report 2001–2002 Water and Rivers Commission

C. Accrual cost per Gigalitre of water managed in accordance with agreed management plans

Outcome: Sustainable use of water resources for economic development

Objective: Water use is within sustainable limits

The Commission’s internal objective is to adequately manage the state’s water resources at a minimum long-term cost. This indicator is holistic in that it considers the total planning effort expended by the Commission and divides it by the quantity of groundwater allocated. It is beneficial in that as demand for water grows, so too does the management effort required by the Commission. The target for the Commission is to maintain a stable level of effort.

Relevance to desired outcome

This indicator shows the efficiency with which the Commission manages the allocation of water to economic, social and environmental uses. The indicator represents the activities associated with developing and implementing allocation management plans and policies.

Efficiency measure

The significant reduction in unit costs results from the continued increase in water allocated to meet state development needs. The financial investment in this output has remained stable and the efficiency gains are offset by minor increases in the delivery of other services, notably cost of administering a license (see note D) and increased monitoring and inspections (note E).

D. Cost of issuing, managing and administering water allocation licenses

Outcome: Sustainable use of water resources for economic development

Objective: Water use is within sustainable limits.

The Commission’s internal objective is to adequately manage the state’s water resources at a minimum long-term cost. This indicator illustrates the cost of administering a water allocation license – a key instrument in allocating water to users. As demand for water grows and the volume of licenses increase, the Commission aims to maintain, or reduce, the average cost of a license.

Relevance to desired outcome

This indicator shows the efficiency with which the Commission administers water allocation licenses.

Licensing of allocations in declared areas is a statutory function of the Commission. Licensing is essential to ensure the objectives of water management are met, and those inappropriate precedents are not set. It is one of the primary mechanisms for managing the state’s water allocations.

43 Water and Rivers Commission Annual Report 2001–2002

Efficiency measure

The indicator has been derived by determining the number of licences administered (24 690), and dividing this into the actual costs of the Licensing ($5.318m). The increase in unit costs is attributed to additional resources being applied to reviewing license applications, particularly in those areas which are close to approved management allocations. These applications are often complex and require additional resources in investigating the applicant’s water requirements and balancing the new needs with those of existing licenses within the management area. Costs have also increased as a result of customer appeals and the need for the Commission to undertake further research to justify management decisions to an appeals convenor.

The average licensing cost in these areas close to management limits are expected to further increase.

E. Accrual cost of building, maintaining and operating the State Reference Network for the collection of water resources quality and quantity information

Outcome: Sustainable use of water resources for economic development

Objective: Water use is within sustainable limits

Underpinning water allocation planning and licensing is the need for timely and accurate water resource and environmental information. The Commission maintains an extensive network of water measurement sites. These surface water and ground water measurement sites provide valuable information for the management of water resources, sustainable development of water resources, and for the management of flood-related hazards.

Relevance to desired outcome

The indicator has been derived by determining the number of operating sites, and dividing this into the total network operating costs ($6.53million). The Surface Water Reference Network consists of approximately 506 surface water and 2678 groundwater bore work units. Work units are generic names, which comprise gauging sites, rainfall measurement sites, salinity measurement sites and water quality sites.

Efficiency measure

The increase in costs results from brining on-line new measurement stations and collecting new or additional information to support business needs. Over the past three years the Commission has continually reviewed its measurement network and decommissioned lower priority sites.

Whilst some of these sites still exist as physical assets information is no longer collected from the sites. The closure of these sites has yielded little operational savings, but will reduce longer term asset replacement needs and costs. Additional funds have also been utilised in enhancing computing models and reporting tools to support water allocation decisions.

44 Annual Report 2001–2002 Water and Rivers Commission

Rural Water Supply Assistance

Outcome: Sustainable use of water resources for economic development Objective: Rural water supply assistance The Commission provides a Farm Water Grants Scheme for farmers whose land is not connected to a reticulated water supply. The Scheme provides grants for the investigation, design or development of water supplies for domestic, crop-spray and livestock use.

The Scheme assists commercial broadacre farmers in six key regions of the dryland agricultural area of the State receiving less than 600 mm of average annual rainfall and considered being subject to water shortage problems. The Scheme is targeted at commercial broadacre farming businesses, which experience the most severe water shortages. Farm water shortages have traditionally led to productivity losses, domestic hardship and increased water cartage costs for farmers. The Scheme allows farmers in water-deficient areas to develop reliable, on-farm water supplies with the assistance of Government funding of up to $15 000. Farmers have 18 months from the date their grant is approved to undertake on-farm water supply improvements and then lodge a claim of payment with the Water and Rivers Commission.

F. Average level of deficiency per grant round Outcome: Sustainable use of water resources for economic development Objective: Assistance is provided to water deficient farmers

One of the primary outcome objectives of Farm Water Grants Scheme is to contribute to a reduction in the level of on-farm water deficiency. It is expected that as more farmers suffering from the most serious water shortages are allocated grants over time, the average level of water deficiency across the agricultural area will decline. To be considered for farm water grant an applicant is required to demonstrate the need for improved water supplies on their property. Applicants are assisted in this regard by an approved Farm Water Assessor who determines the total water supply and demand on the farm, calculates the level of water deficiency and allocates an appropriate score to reflect this deficiency. The on-farm deficiency score is the mechanism used to determine an applicant’s eligibility for a grant. A minimum deficiency score of 25 is required to qualify for a farm water grant although on average the deficiency score for applicants approved to the end of 2000/2001 has been significantly higher than this.

Relevance to desired outcome The use of deficiency scores for each applicant enables the Commission to ensure that the Scheme is correctly targeting the farmland in the greatest need of water supply improvements. Moreover, average on-farm deficiency levels from one grant round to another can be monitored to assess the overall trend in water deficiency levels across the various agricultural districts of the State.

45 Water and Rivers Commission Annual Report 2001–2002

Effectiveness measure

Average level of deficiency 98/99 99/00 00/01 01/02 52% 53% 49% 44%

A noticeable reduction in the average deficiency level was not expected to be evident in the initial five to six year period the Scheme has been operating. It is far more likely that a downward trend in the level of water deficiency will become more prominent over a ten to fifteen year period when the full effect of on-farm water supply improvements, made possible with the availability of farm water grants, becomes measurable.

Fluctuations in the average level of deficiency from one grant round to another are to be expected as evidenced in the table that records the average deficiency scores for the period from September 1996 to March 2002. Factors such as low commodity prices and low farm income limit the capacity of some farmers to plan on-farm water supply improvements and to apply for a grant. The same influences also discourage farmers from maintaining existing farm water supply infrastructure, thus reducing water yield.

Additionally on-farm water deficiency itself may be affected by many other interacting factors such as:

• Rainfall and runoff variability from year to year;

• Salinity problems caused by raising groundwater tables; • The adoption of minimum tillage techniques which lead to less runoff; and • Increased tree planting which leads to less runoff.

The occurrence and impact of the first two of these factors are impossible to predict or control either by farmers or the Water and Rivers Commission.

The latter two factors are generally decisions for the individual farmers that are made in isolation from issues such as water deficiency.

The combined effect of these factors means the average level of water deficiency may vary significantly between grant rounds in the short to medium term.

It is also important to note that targeting of the Scheme up to the end of October 1999 gave priority to those localities in the dryland agricultural area subject to the most severe water shortages and where the cost and difficulty of developing on-farm supplies was the highest.

G. Percentage of grant applications assessed within target deadline Outcome: Sustainable use of water resources for economic development

Objective: Assistance is provided to water deficient farmers

The Commission has made a commitment to finalise assessment of grant applications and notify all applicants within two months of a grant round closing.

46 Annual Report 2001–2002 Water and Rivers Commission

Relevance to desired outcome

The percentage of grant applications assessed within the target deadline is an indicator of the efficiency of the Commission in processing the application documents. Providing prompt assistance and assurance of grants to farmers is critical to enabling farm planning and actions to be taken to support farm practices.

Efficiency Measure

Total number of Farm Water Total number of Farm Water AUDITED KEY grant applications grant applications assessed PERFORMANCE INDICATOR within two months of the Percentage of grant grants round closing applications assessed within target deadlines

98/99 99/00 00/01 01/02 98/99 99/00 00/01 01/02 98/99 99/00 00/01 01/02 223 155 179 389 221 63 179 167 99% 41% 100% 43%

1. The result for 1999/2000 appears poor, however it does not reflect a trend across all grant rounds for that year. The June and October 1999 rounds saw 100% applications assessed within the target deadline. The February 2000 round proved difficult because of the large number of applications received (due to a concerted television advertising campaign) and due to delays caused by the Easter and Anzac Day public holidays.

H. Administrative cost per grant application

Outcome: Sustainable use of water resources for economic development Objective: Assistance is provided to water deficient farmers The Commission has made a commitment to finalise assessment of grant applications and notify all applicants within two months of a grant round closing.

Relevance to desired outcome The administrative cost per grant application provides an indication of the efficiency of the Commission in administering the Farm Water Grants Scheme. The administrative costs include those costs incurred in processing and determining grant applications, processing grant payments and monitoring, evaluating and editing grants. Dividing the total cost of producing this output has derived this indicator by the number of grant applications.

Efficiency Measure

Total number of Total cost in $000s AUDITED KEY grant applications PERFORMANCE INDICATOR Cost per grant application

98/99 99/00 00/01 01/02 98/99 99/00 00/01 01/02 98/99 99/00 00/01 01/02 223 155 179 389 506 590 674 493 2269 3806 3765 1267

The average cost per application is derived by dividing the total cost for the rural water supply assistance output, less grants allocated. The output also includes grant payments

47 Water and Rivers Commission Annual Report 2001–2002

totalling $1.818m which are exempt from the calculation. The significant decrease in cost is attributable to the volume of grants processed. Whilst costs have reduced, it comes at the expense of timeliness as outlined in the above indicator.

I. Surface Water Quality – Annotated Hydrograph of Collie River Outcome: Protection and enhancement of the quality of the State’s surface and groundwater. Objective: Clean and healthy water resources – Slow rate of decline of water salinity in priority catchments. Salinity is a widespread problem in the State and similar management activities have been put in place in other catchments. The Collie River is representative of the success of more intensive management efforts.

Relevance to desired outcome This indicator shows changes in the water quality of a surface water resource degraded by increasing salinity. Whilst the Commission is implementing improvement strategies within 5 key catchments, Wellington is used because of the data available and that it is the catchment which has had the most management effort focussed. As more data becomes available, performance trends will be reported for the other catchments. The initial increases in salinity have been a result of changes in land use, and the ongoing trend reflects the effects of management activities aimed at limiting or reducing the salinity.

2000 Predicted median salinity without Observed median clearing controls 1800

1600 Observed mean

(mg/L TDS) Predicted median 1400 1990 Harris Dam salinity without starts operating reforestation 1200 1980 Reforestation 1000 begins

1976 Clearing ellington Reservoir 800 controls begin Predicted median salinity with WRC land replanted 600

Target salinity for 400 Wellington Reservoir 200

Inflow salinity to W 0 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 Year Surface water quality in the Collie Catchment

The predicted salinities are those expected in years of median rainfall. The higher curve shows what was expected if clearing had continued in the catchment and there was no other action to limit the development of dryland salinity. The lower curve shows the expected result from limiting further clearing from 1976 and reforestation between 1980 and 1990. Subsequent initiatives to help farmers integrate water management with agriculture are expected to result in even lower salinity in the long term.

48 Annual Report 2001–2002 Water and Rivers Commission

Observed salinities are lower in years of above median rainfall, and higher in years of below median rainfall. Consequently, significant trends in observed values can only be determined certainly over a period of many years. The record unfolding in recent years is considered to show a favourable result, although not conclusive evidence that, in the long run the salinity of inflow will be the same or lower than predicted. The 2001-02 result is significantly higher than past results (and the current trend) as a result of the low annual rainfall.

A Strategic Action Plan for managing salinity in the Collie River catchment above the Wellington Dam has been prepared by the Collie Recovery Team as required in the State Salinity Strategy, 2000. The plan is based on a clear water quality target: to reduce the salinity of the Collie River at Mungalup Tower Gauging Station (the nearest point of measurement to the Wellington Dam) to 680 mg/L TDS by the year 2015. The target is to achieve an average of 500mg/L TDS in the dam itself. As the graph illustrates initiatives such as reforestation, drainage and catchment management activities are slowly beginning to reduce salinity levels.

J. The extent to which management objectives have been developed for rivers, estuaries and wetlands, and K. The extent to which rivers, estuaries and wetlands water quality meet agreed management objectives Outcome: Protection and enhancement of the quality of the state’s surface and groundwater.

Objective: Clean and healthy water resources 1. For rivers, estuaries and wetlands • Restore high risk/critical water dependent systems to functional condition • Slow rate of decline of water salinity in priority catchments • Reduced algal blooms, pollution and fish kills in priority areas Relevance to Desired Outcome

The aim of the Water and Rivers Commission is not to return catchments to the pre-developed state. It is to help manage catchments so they remain economically productive without degrading the resource. Instead the Commission recommends using water quality targets as a series of benchmarks to be achieved. With this system no consideration is given to the pre-development state of the system or the condition of other similar systems. Only the waterbody’s current state determines the target. The target defines the ‘now’ and compliance monitoring defines deviations from now. If water quality is currently known to be poor the target level is set so it will ‘fail’ the compliance test. It will continue to ‘fail’ until there has been a measurable improvement in water quality. The targets represent a series of management benchmarks that encourage continual improvement towards an ultimate desired state. A continual lowering of the bar until water quality is acceptable is the best the Commission can hope to achieve. For waterbodies in which water quality is known to be currently good, the target level will help identify emerging degradations.

49 Water and Rivers Commission Annual Report 2001–2002

Effectiveness measure

In 2001/2002 the Commission has continued to work with many stakeholders and the result is similar to past years. However, on a catchment by catchment basis there have been both positive and negative changes. The extent to which the results are affected by low annual rainfall in not exactly known. Whilst the Commission has achieved improvements in some areas, it is too early to understand the effects of lower rainfall versus the continued catchment works and improvements.

It would be extremely difficult to assess every single watercourse in Western Australia. This has resulted in a set of key, significant watercourses being identified in each region. It is against this “total” that the condition summary graphs have been prepared.

Summary of the condition of Western Australia’s rivers

100

(%) 80

60 Average 40

Percentage of

assessed rivers 20

0 Allocation Salinity Nutrient Loss of Erosion and Contamination enrichment fringing sedimentation vegetation

Low Moderate High Unknown

Table outlines the key influences and impacts on the condition of the State’s rivers. Many of our objectives are aimed at maintaining the existing impacts at a low or moderate level. An extensive review of the Commission data and trends indicate that our water resources continue to slowly degrade.

L. The extent to which the waterways are protected while providing facilities for public use

Outcome: Protection and enhancement of the Quality of the State’s Surface and Groundwater

Objective: Clean and healthy water resources

1. For Rivers, estuaries and wetlands • Restore high risk/critical water dependent systems to functional condition • Reduced algal blooms, pollution and fish kills in priority areas

Relevance to desired outcome

This indicator is assessed through two measures.

50 Annual Report 2001–2002 Water and Rivers Commission

1. Number of pollution complaints

Management Number of Number of Number of Authority Complaints Complaints Complaints 1999-2000 2000-2001 2001-2002

Leschenault Inlet 10 5 7 Peel Inlet 124 104 96 Albany Waterways 25 6 9 Avon River 3 7 0 Wilson Inlet 2 1 2

Pollution complaints may relate to incidents which are not significant in their effects, or the pollution may not in fact reach the waterway because of effective pollution response by the Commission and other authorities. The Commission continues to encourage and educate communities and industry groups in the management of waterways. Community support in restoration activities has reduced debris. The reduction in complaints can also be attributable to improved pollution management by industry.

2. Level of compliance with license conditions

Management Authority Number of licenses % Compliance administered

Leschenault Inlet 3 All 100% Peel Inlet 5 All 100%

Albany Waterways 4 All 100%

Compliance continues to be monitored.

M. The extent to which management objectives have been developed to adequately protect public water supply for current and future generations Outcome: Protection and enhancement of the quality of the state’s surface and groundwater

Objective: Clean and healthy water resources – For public water supply • Quality of existing public water supply resources are maintained Relevance to desired outcome A key objective aim of the Water and Rivers Commission (WRC) is to provide adequate protection of the state’s public water supplies. Protection is not just for today, but also for future generations. The effective management of surface and ground water catchment areas is paramount to minimising water supply production costs.

The primary impact on the quality of our water resources result from the activities carried out in surface water catchments and on the land covering our groundwater resources. In some area of the state these land uses are incompatible with protection objectives and the

51 Water and Rivers Commission Annual Report 2001–2002

resource itself is at risk. Dealing with these incompatible land uses and influencing other planning processes to avoid more, are the primary means of achieving good outcomes for the state.

Western Australia relies heavily on groundwater for water supply and the generally sandy soils makes the underlying groundwater highly vulnerable to groundwater contamination in this State. In 2001/02 there were 147 water source protection plans listed for completion in the State, an increase of nine on the previous year. The plans are an essential tool for guiding land use, and in turn adequate levels of protection of water. New plans may be added to the list as required and prioritised for completion. Effectiveness Measure In 2001/02 the Commission completed a further five water source protection plans or policies to guide state and local planning authorities in managing land within catchments. These plans are an important instrument for regulating land development and ensuring future and existing developments have minimal impact on important drinking water resources.

N. Accrual cost per km2 of catchment where management and improvement activities are undertaken Outcome: Protection and enhancement of the quality of the state’s surface and groundwater

Objective: Clean and healthy water resources 1. For rivers, estuaries and wetlands • Restore high risk/critical water dependent systems to functional condition • Slow rate of decline of water salinity in priority catchments • Reduced algal blooms, pollution and fish kills in priority areas 2. For public water supply • Quality of existing public water supply resources are maintained

Relevance to Desired Outcome This indicator shows the efficiency with which the Commission utilises its resources across the key management areas (catchments) of the state. When combined with indicators G and H, an assessment can be made on the level of resourcing appropriate to the improvements or achievements being attained. The objective of this indicator is to maintain the current level of achievements or improvements in catchment and water resource standards at minimum cost.

Efficiency Measure The 2001/02 total costs for protecting and enhancing key waterways including estuaries and wetlands was $29 340m. The total area of the key catchments which impact on waterways is approximately 567 750 km2. The increase in Waterways protection and enhancement service costs results from increased funding from external sources, namely Federal Funds and increased state funding for salinity initiatives totalling $5.06m.

52 Annual Report 2001–2002 Water and Rivers Commission

O. Average accrual cost per statutory referral

Outcome: Protection and enhancement of the quality of the state’s surface and groundwater. Objective: Clean and healthy water resources For rivers, estuaries and wetlands • Restore high risk/critical water dependent systems to functional condition • Slow rate of decline of water salinity in priority catchments • Reduced algal blooms, pollution and fish kills in priority areas

For public water supply • Quality of existing public water supply resources are maintained

Relevance to desired outcome The primary impact on the quality of our water resources result from the activities carried out in surface water catchments and on the land covering our groundwater resources. In some area of the state these land uses are incompatible with protection objectives and the resource itself is at risk. Dealing with these incompatible land uses and influencing other planning processes to avoid more, are the primary means of achieving good outcomes for the state.

The Commission provides advice on land and development proposals to the Ministry for Planning, Local Government, and other land planning authorities. Our advice is commonly known as a Statutory Referral. Through this advice the Commission seeks to influence land planning in order to protect water resources from potential pollution or adverse environmental impacts.

Efficiency measure In 2001/02 the Commission received 2708 referrals from which advice was provided. The significant decrease in costs results from the Commission investing time in assessing the critical state development and land use proposals. Additionally, significant efficiency gains have been achieved by process improvements and the delegation of more routine assessment to local government. Land use and industry applications are becoming increasingly complex requiring additional research from the Commission and input from other government agencies and stakeholders. The impact of this on unit costs is unknown, and future performance targets will need to be reviewed once sufficient data is available.

P. Average water supply protection cost (per allocated Gigalitre) covered by an agreed management plan Outcome: Protection and enhancement of the quality of the state’s surface and groundwater Objective: Clean and healthy water resources – For public water supply • Quality of existing public water supply resources are maintained

53 Water and Rivers Commission Annual Report 2001–2002

Relevance to desired outcome

Like allocation objectives, the Commission has a key objective to protect water supply sources and ensure water quality for current and future generations. This indicator reflects the efficiency at which the Commission provides a number of services (such as protection plans, policies and advice) for the volume of water that is protected.

Efficiency measure

The minor increase in unit costs results directly from an increase in capital user charge relating to the management of Priority 1 Land which is held by the Commission to protect water quality within critical groundwater reserves. Overall, the operational expenses were similar to past years and performance improved as a result of increased water under management.

54 Annual Report 2001–2002 Water and Rivers Commission

AUDITOR GENERAL

To the Parliament of Western Australia

WATER AND RIVERS COMMISSION FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2002

Matters Relating to the Electronic Presentation of the Audited Financial Statements This audit opinion relates to the financial statements of Water and Rivers Commission for the year ended June 30, 2002 included on the Commission’s web site. The Board is responsible for the integrity of the Commission’s web site. I have not been engaged to report on the integrity of the Commission’s web site. The audit opinion refers only to the statements named below. It does not provide an opinion on any other information which may have been hyperlinked to or from these statements. If users of this opinion are concerned with the inherent risks arising from electronic data communications, they are advised to refer to the hard copy of the audited financial statements to confirm the information included in the audited financial statements presented on this web site.

Scope I have audited the accounts and financial statements of the Water and Rivers Commission for the year ended June 30, 2002 under the provisions of the Financial Administration and Audit Act 1985.

The Board is responsible for keeping proper accounts and maintaining adequate systems of internal control, preparing and presenting the financial statements, and complying with the Act and other relevant written law. The primary responsibility for the detection, investigation and prevention of irregularities rests with the Board.

My audit was performed in accordance with section 79 of the Act to form an opinion based on a reasonable level of assurance. The audit procedures included examining, on a test basis, the controls exercised by the Commission to ensure financial regularity in accordance with legislative provisions, evidence to provide reasonable assurance that the amounts and other disclosures in the financial statements are free of material misstatement and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia and the Treasurer’s Instructions so as to present a view which is consistent with my understanding of the Commission’s financial position, its financial performance and its cash flows.

The audit opinion expressed below has been formed on the above basis.

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

55 Water and Rivers Commission Annual Report 2001–2002

Water and Rivers Commission Financial statements for the year ended June 30, 2002

Audit Opinion In my opinion, (i) the controls exercised by the Water and Rivers Commission provide reasonable assurance that the receipt, expenditure and investment of moneys and the acquisition and disposal of property and the incurring of liabilities have been in accordance with legislative provisions; and (ii) the Statement of Financial Performance, Statement of Financial Position and Statement of Cash Flows and the Notes to and forming part of the financial statements are based on proper accounts and present fairly in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia and the Treasurer’s Instructions, the financial position of the Commission at June 30, 2002 and its financial performance and its cash flows for the year then ended.

K O O’NEIL ACTING AUDITOR GENERAL November 22, 2002

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

56 Annual Report 2001–2002 Water and Rivers Commission

6 Financial statements

Certification of financial statements for the year ended 30 June 2002 The accompanying financial statements of the Water and Rivers Commission have been prepared in compliance with the provisions of the Financial Administration and Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the year ending 30 June 2002 and the financial position as at 30 June 2002.

At the date of signing, we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

Mr Peter Kent PRINCIPAL ACCOUNTING OFFICER

Mr Ken Webster BOARD CHAIRMAN

Roger F Payne CHIEF EXECUTIVE

31 August 2001

57 Water and Rivers Commission Annual Report 2001–2002

Statement of financial performance for the year ended 30 June 2002

Note 2002 2001 $000 $000

COST OF SERVICES Expenses from ordinary activities Employee expenses 2 26 227 28 312 Borrowing costs expense 114 145 Depreciation and amortisation expense 3 1 616 1 598 Capital user charge 4 8 178 - Grants and subsidies 5 4 076 1 846 Lease rentals 6 2 512 2 758 Service related expenses 7 10 054 12 448 Goods and materials 8 2 388 2 530 Other expenses from ordinary activities 9 2 685 2 992 Net loss on disposal of non-current assets 10 30 8 Total cost of services 57 880 52 637

Revenues from ordinary activities

Revenue from operating activities User charges and fees 67 49 Commonwealth grants and contributions 11 3 487 6 686 Recoup from the Office of Water Regulation 184 184 Recoup from Swan River Trust 12 2 186 3 171

Revenue from non-operating activities Interest revenue 214 265 Other revenues from ordinary activities 13 3 175 2 378 Total revenues from ordinary activities 9 313 12 733

NET COST OF SERVICES 48 567 39 904

REVENUES FROM GOVERNMENT 14 Output appropriation (a) 47 885 37 391 Assets assumed/(transferred) (253) - Resources received free of charge 268 159 Total revenues from Government 47 900 37 550

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH WESTERN AUSTRALIA STATE GOVERNMENT AS OWNERS (667) (2 354)

(a) Appropriation includes capital in 2002 The Statement of Financial Performance should be read in conjunction with the accompanying notes.

58 Annual Report 2001–2002 Water and Rivers Commission

Statement of financial position as at 30 June 2002

Note 2002 2001 $000 $000

Current Assets Cash assets 26(a) 18 043 11 763 Restricted cash 27 - Receivables 15 681 693 Prepayments 16 4 5 Accrued income 17 17 21 Amounts receivable for outputs 18 800 -

Total Current Assets 19 572 12 482

Non-Current Assets Amounts receivable for outputs 18 1 839 - Property, plant and equipment 19 100 128 100 953 Total Non-Current Assets 101 967 100 953

Total Assets 121 539 113 435 Current Liabilities Payables 20 421 590 Accrued salaries 21 946 431 Interest-bearing liabilities 22 200 200 Provisions 23 3 254 3 041 Other liabilities 24 74 5

Total Current Liabilities 4 895 4 267

Non-Current Liabilities Interest-bearing liabilities 22 1 236 1 436 Provisions 23 11 971 9 292 Developer bonds 27 15

Total Non-Current Liabilities 13 234 10 743

Total Liabilities 18 129 15 010

NET ASSETS 103 410 98 425

Equity 25 Accumulated surplus/(deficiency) (218) 449 Contributed equity 5 652 - Reserves 97 976 97 976

TOTAL EQUITY 103 410 98 425

The Statement of Financial Position should be read in conjunction with the accompanying notes.

59 Water and Rivers Commission Annual Report 2001–2002

Statement of cash flows for the year ended 30 June 2002

Note 2002 2001 Inflows Inflows (Outflows) (Outflows) $000 $000

CASH FLOWS FROM GOVERNMENT Output appropriations 45 246 36 591 Capital contributions (2001 appropriation) 2 700 800 Holding account drawdowns - - Net cash provided by Government 47 946 37 391

Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee costs (22 760) (23 061) Supplies and services (21 595) (22 608) Capital user charge (8 178) - Borrowing costs expense (113) (143) GST payments on purchases (1 966) (2 041) Receipts User charges and fees 67 49 Commonwealth grants and contributions 3 487 6 686 Receipts from state government agencies 2 370 3 355 Interest received 218 263 Other operating receipts 3 157 2 474 GST receipts on sales 499 1 265 GST receipts from taxation authority 1 497 484

Net cash provided by/(used) in operating activities 26 (c) (43 317) (33 277)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of non-current physical assets (1 080) (399) Proceeds from sale of non-current physical assets 6 -

Net cash provided by/(used in) investing activities (1 074) (399)

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (200) (318)

Net cash provided by/(used in) financing activities (200) (318)

Net increase/(decrease) in cash held 3 355 3 397 Cash assets at the beginning of the financial year 11 763 8 366 Cash assets transferred from other departments 2 952 -

CASH ASSETS AT THE END OF THE FINANCIAL YEAR 26 (a) 18 070 11 763

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

60 Annual Report 2001–2002 Water and Rivers Commission

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002

1. Significant accounting policies The following accounting policies have been adopted in the preparation of the financial statements. Unless otherwise stated these policies are consistent with those adopted in the previous year.

General statement The financial statements constitute a general purpose financial report which has been prepared in accordance with Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board and Urgent Issues Group (UIG) Consensus Views as applied by the Treasurer’s Instructions. Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financial statements and take precedence over Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board and UIG Consensus Views. The modifications are intended to fulfil the requirements of general application to the public sector together with the need for greater disclosure and also to satisfy accountability requirements. If any such modification has a material or significant financial effect upon the reported results, details of that modification and, where practicable, the resulting financial effect, are disclosed in individual notes to these financial statements. The statements have been prepared on the accrual basis of accounting using the historical cost convention, except for certain assets and liabilities which, as noted, are measured at valuation.

(a) Output appropriations Output Appropriations are recognised as revenues in the period in which the Commission gains control of the appropriated funds. The Commission gains control of appropriated funds at the time those funds are deposited into the Commission’s bank account or credited to the holding account held at the Department of Treasury and Finance.

(b) Contributed equity Under UIG 38 “Contributions by Owners Made to Wholly-Owned Public Sector Entities” transfers in the nature of equity contributions must be designated by the Government (owners) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions in the financial statements. Capital contributions (appropriations) have been designated as contributions by owners and have been credited directly to Contributed Equity in the Statement of Financial Position. All other transfers have been recognised in the Statement of Financial Performance. Prior to the current reporting period, capital appropriations were recognised as revenue in the Statement of Financial Performance. Capital appropriations which are repayable to the Treasurer are recognised as liabilities.

61 Water and Rivers Commission Annual Report 2001–2002

(c) Grants and other contributions revenue

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Commission obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt. Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

(d) Revenue recognition Revenues from licence fees and charges represents revenue earned from licence fees and charges under the Rights in Water and Irrigation Act, the Waterways Conservation Act and the Water and Rivers Commission Act. Other revenue is fully described in the Statement of Financial Performance and notes to the accounts. Revenue from the sale of goods and disposal of other assets and the rendering of services, is recognised when the Commission has passed control of the goods or other assets or delivery of the service to the customer.

(e) Acquisition 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.

(f) Depreciation of non-current assets

All non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their future economic benefits. Depreciation is calculated on the straight line basis, using rates which are reviewed annually. Useful lives for each class of depreciable asset are:

Buildings 20 - 80 years Plant, machinery and equipment 5 - 20 years Computing equipment and accessories 3 - 5 years Furniture and fittings 7 - 10 years Measurement sites 40 years

(g) Revaluation of land, buildings and infrastructure The Commission has a policy of valuing land, buildings and infrastructure at fair value. The annual revaluations of the Commission’s land and buildings undertaken by the Valuer General Office are recognised in the financial statements. Infrastructure assets are being progressively revalued to fair value under the transitional provisions in AASB 1041 (8.12)(b). Other assets are recognised at cost.

62 Annual Report 2001–2002 Water and Rivers Commission

(h) Leases The Commission has entered into a number of operating lease arrangements for rent of buildings, office equipment and motor vehicles where the lessors effectively retain all of the risks and benefits incident to ownership of the items held under the operating leases. Equal instalments of the lease payments are charged to the Statement of Financial Performance over the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

(i) Cash For the purpose of the Statement of Cash Flows, cash includes cash assets and restricted cash assets. These include short-term deposits that are readily convertible to cash on hand and are subject to insignificant risk of changes in value.

(j) Receivables Receivables are recognised at the amounts receivable as they are due for settlement no more than 30 days from the date of recognition. Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised where some doubt as to collection exists and in any event where the debt is more than 60 days overdue.

(k) Payables Payables, including accruals not yet billed, are recognised when the Commission becomes obliged to make future payments as a result of a purchase of assets or services. Payables are generally settled within 30 days.

(l) Interest-bearing liabilities Borrowings from WA Treasury Corporation predominantly represents debt assigned to the Commission on separation from the Water Authority. An additional amount was borrowed to fund land purchases in the Blackwood area. Borrowings are recorded at an amount equal to the net proceeds received. Borrowing costs expense is recognised on an accrual basis.

(m) Employee entitlements Employee entitlements have been transferred from those Government Agencies for whom employees worked prior to the creation of the Water and Rivers Commission on 1 January 1996. Entitlements have been calculated on a continuing service basis as follows: i) Annual and long service leave Annual and long service leave entitlements are recognised at current remuneration rates and is measured at the amount unpaid at the reporting date in respect to employees’ service up to that date. Long service leave is calculated for employees who have accrued leave and are 55 years or older, or are employed under the Australian Workers Union Award. A pro-rata liability

63 Water and Rivers Commission Annual Report 2001–2002

for long service leave is also recognised for officers who have completed four or more years of service.

An actuarial assessment of long service leave was carried out as at 30 June 2001, and it was determined that the actuarial assessment of the liability was not materially different from the liability reported. This method of measurement of the liability is consistent with the requirements of Australian Accounting Standard AAS 30 “Accounting for Employee Entitlements”. ii) Superannuation Staff may contribute to the Pension scheme, a defined benefits pension scheme now closed to new members, or to the Gold State Superannuation Scheme, a defined benefit and lump sum scheme now also closed to new members. All staff who do not contribute to either of these schemes become non-contributory members of the West State Superannuation Scheme, an accumulation fund complying with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. All of these schemes are administered by the Government Employees Superannuation Board (GESB). The Pension Scheme and the pre-transfer benefit for employees who transferred to the Gold State Superannuation Scheme are extinguished by payment of the employer contributions to the GESB. The liability for superannuation charges under the Gold State Superannuation Scheme and West State Superannuation Scheme are extinguished by payment of employer contributions to the Government Employees Superannuation Board. The note disclosure required by paragraph 51(e) of AAS 30 (being the employer’s share of the difference between employee’s accrued superannuation benefits and the attributable net market value of plan assets) has not been provided. State scheme deficiencies are recognised by the State in its whole of government reporting. The Government Employees Superannuation Board’s records are not structured to provide the information for the Commission. Accordingly, deriving the information for the Commission is impractical under current arrangements, and thus any benefits thereof would be exceeded by the cost of obtaining the information.

(n) Accrued salaries Accrued salaries (refer note 19) represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. The Commission considers the carrying amount approximates net fair value.

(o) Resources received free of charge or for nominal value Resources received free of charge or for nominal value which can be reliably measured are recognised as revenues and as assets or expenses as appropriate at fair value.

(p) Comparative figures Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented in the current financial year.

64 Annual Report 2001–2002 Water and Rivers Commission

(q) Rounding

Amounts in the financial statements have been rounded to the nearest thousand dollars, or in certain cases, to the nearest dollar.

2002 2001 $000 $000

2 Employee expenses

Salaries and wages 19 718 19 676 Superannuation 3 522 6 466 Change in long service leave entitlements 1 553 403 Change in annual leave entitlements 38 340 Payroll tax 1 169 1 156 Fringe benefits tax 227 271

26 227 28 312

3 Depreciation and amortisation expense

Buildings 167 160 Plant, machinery and equipment 258 259 Computing equipment and accessories 297 285 Furniture and fittings 12 12 Measurement sites 882 882

1 616 1 598

4 Capital user charge

8 178 -

A capital user charge rate of 8% has been set by the Government for 2002 and represents the opportunity cost of capital invested in the net assets of the Commission used in the provision of outputs. The charge is calculated on the net assets adjusted to take account of exempt assets. Payments are made to the Department of Treasury and Finance on a quarterly basis.

5 Grants and subsidies

4 076 1 846

Grants and subsidies include research grants allocation, sponsorship, grants to farmers and subsidies. The variance is due mainly to 2002 containing grants payable under the Rural Water Grant program.

6 Lease rentals

2 512 2 758

Operating lease and hire payments include lease of office accommodation, vehicles, plant and machinery and hire of other facilities.

65 Water and Rivers Commission Annual Report 2001–2002

2002 2001 $000 $000

7 Service related expenses

10 054 12 448

Service related expenses include professional and non professional service contracts, chemical analysis, legal charges, consultants, insurance, advertising, public relations and other service related expenses.

8 Goods and materials

2 388 2 530

Goods and materials include office supplies, library acquisitions, laboratory supplies, motor vehicle running expenses, utilities and other consumable equipment and materials.

9 Other expenses from ordinary activities

Communication expenses 1 347 1 243 Asset maintenance expenses 224 427 Doubtful debts expense 1 (10) Sundry operating expenses 1 113 1 332

2 685 2 992

10 Net loss on disposal of non-current assets

Loss on Sales of Non-Current Assets Plant and equipment 13 - Computing equipment 17 - Land -8 Gross proceeds on disposal of asset 6 8

Net loss 30 8

11 Commonwealth grants and contributions

Land and Water Resources Research and Development Corporation 471 259 Natural Heritage Trust 2 231 4 189 Waterwatch Revenue - 490 Environment and Heritage 785 1 748

3 487 6 686

The variance is due to a reduction in the Natural Heritage Trust (NHT) program. The majority of the Commission projects funded by the NHT were completed by end of 2000, with a limited number of projects extended into the last financial year.

66 Annual Report 2001–2002 Water and Rivers Commission

2002 2001 $000 $000

12 Recoup from Swan River Trust

2 186 3 171

The recoup for 2002 has been reduced as a result of the transfer of several functions previously undertaken by the Commission now undertaken by Swan River Trust.

13 Other revenues from ordinary activities

Waterwatch revenue (Ribbons of Blue) - 1 ALCOA 133 147 Other grants 544 150 Groundwater monitoring - 61 State grants and advances 52 106 Recoups from other state government agencies 1 059 843 Lease of commercial land and building 70 77 Other miscellaneous revenues 1 317 993

3 175 2 378

14 Revenues (to)/from Government

Appropriation revenue received during the year:

Output appropriations (a) 47 885 36 591

Capital appropriations (b) -800

47 885 37 391

Resources received free of charge (c) Determined on the basis of the following estimates provided by agencies: Office of the Auditor General 37 35 Department of Land Administration 82 52 Crown Solicitors Office 42 72 Department of Housing and Works 12 -

Education Department of WA 95 -

268 159

The following assets were assumed from/(transferred) to other State Government agencies:

Land (d) (253) -

Total revenues (to)/from Government 47 900 37 550

67 Water and Rivers Commission Annual Report 2001–2002

(a) Output appropriations are accrual amounts as from 1 July 2001, reflecting the full price paid for outputs purchased by the Government. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year.

(b) Capital appropriations were revenue in 2001 (year ended 30 June 2001). From 1 July 2001, capital appropriations, termed Capital Contributions, have been designated as contributions by owners and are credited straight to equity in the Statement of Financial Position.

(c) Where assets or services have been received free of charge or for nominal consideration, the Commission recognises revenues equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have been purchased if not donated, and those fair values shall be recognised as assets or expenses, as applicable.

(d) Proceeds from the sale of land are not reflected in the financial statements as these proceeds are held by the Department of Treasury and Finance.

2002 2001 $000 $000

15 Receivables

Current Trade debtors 453 437 GST receivable 230 260 Provision for doubtful debts (2) (4)

681 693

16 Prepayments

Western Australian Treasury Corporation 4 5

17 Accrued income

Interest receivable 17 21

18 Amounts receivable for outputs

Current 800 - Non-current 1 839 -

2 639 -

This asset represents the non-cash component of output appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

68 Annual Report 2001–2002 Water and Rivers Commission

2002 2001 $000 $000

19 Property, plant and equipment Land at cost 160 - Land at fair value 76 423 76 431 Disposals (253) (8) 76 330 76 423

Buildings at cost 3 323 3 324 Accumulated depreciation (729) (563) 2 594 2 761

Computing equipment at cost 2 634 2 377 Accumulated depreciation (1 975) (1 719) 659 658

Furniture and fittings at cost 82 82 Accumulated depreciation (55) (43) 27 39

Measurement sites at cost 25 425 25 425 Accumulated depreciation (6 093) (5 211) 19 332 20 214

Plant, machinery and equipment at cost 2 936 2 364 Accumulated depreciation (1 750) (1 506) 1 186 858

Total property, plant and equipment 100 128 100 953

An amount of $31 805 000 of land valuation increment was brought to asset revaluation reserve in 2001.

Reconciliations Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the current and previous financial year are set out below.

Land Buildings Computing Furniture Measure- Plant, Total equipment and fittings ment sites machinery and equipment 2002 $000 $000 $000 $000 $000 $000 $000 Carrying amount at start of year 76 423 2 761 658 39 20 214 858 100 953 Additions 160 - 317 - - 603 1 080 Disposal (253) - (19) - - (17) (289) Revaluation increments ------Depreciation - (167) (297) (12) (882) (258) (1 616) Carrying amount at end of year 76 330 2 594 659 27 19 332 1 186 100 128

69 Water and Rivers Commission Annual Report 2001–2002

2002 2001 $000 $000

20 Payables

Trade payables 421 590

21 Accrued salaries

Amounts owing for 6 working days to 30 June 2002 and (2001) – 6 working days 946 431

Accrued salaries includes severance payments amounting to $510 198. Payments were made on the first pay week of 2003.

22 Interest-bearing liabilities

Current 200 200 Non-current 1 236 1 436

1 436 1 636

Net Fair Values The Commission considers the carrying amount of borrowings approximates the net fair value.

23 Provisions

Current liabilities Annual leave 1 780 1 660 Long service leave 1 474 1 381

3 254 3 041

Non-current liabilities Long service leave 3 167 1 552

Superannuation 8 804 7 740

11 972 9 292

The superannuation liability has been established from data supplied by the Government Employees Superannuation Board.

The Commission considers the carrying amount of employee entitlements approximates their net fair values.

24 Other liabilities

Accrual fringe benefits tax 60 - Stale cheque holding account 14 5

74 5

70 Annual Report 2001–2002 Water and Rivers Commission

2002 2001 $000 $000

25 Equity

Contributed equity Opening balance - -

Capital contributions (a) 2 700 -

Net capital contributed upon restructure (b) 2 952 -

Closing balance 5 652 -

(a) From 1 July 2001, capital appropriations, termed Capital Contributions, have been designated as contributions by owners and are credited straight to equity in the Statement of Financial Position. (b) From 1 July 2001, Rural Water Assistance Program was transferred to the Water and Rivers Commission. The transferred amount of $2 952 121 represents the cash balance as at 30 June 2001.

Accumulated surplus/(deficiency) Opening balance 449 2 803 Change in net assets (667) (2 354)

Closing balance (218) 449

Reserves

Asset revaluation reserve (a) Opening balance 31 804 31 804 Net revaluation increments: Land and buildings - - Property, plant and equipment - -

Closing balance 31 804 31 804

Fixed assets acquired under restructuring arrangements 66 172 66 172

Total reserves 97 976 97 976

Total Equity 103 410 98 425

(a) 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).

26 Notes to the statement of cash flows (a) Reconciliation of cash

Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

71 Water and Rivers Commission Annual Report 2001–2002

2002 2001 $000 $000

Cash assets 18 043 11 763 Restricted cash 27 -

18 070 11 763

(b) Non-cash financing and investing activities During the financial year, there were no assets/liabilities transferred/assumed from other government agencies not reflected in the Statement of Cash Flows. (c) Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

Net cost of services (48 567) (39 904) Non-cash items: Depreciation expense 1 616 1 598 Resources received free of charge 268 159 Loss on sale of non-current assets 30 8 (Increase)/decrease in assets: Receivables (18) 63 Prepayments 1 120 Accrued Income 4 (1) Increase/(decrease) in liabilities: Payables (169) (64) Accrued salaries 515 (18) Provisions 2 892 5 203 Other liabilities 81 (181) Change in GST in receivables/payables 30 (260)

Net cash provided by/(used in) operating activities (43 317) (33 277)

27 Remuneration of the auditor The value of audit services received or receivable from the Auditor General for the financial year, is as follows:

– for external audit 37 35

28 Commitments for expenditure

Lease commitments Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, are payable as follows: Within 1 year 1 512 1 805 Later than 1 year and not later than 5 years 736 2 334 Later than 5 years - -

2 248 4 139

72 Annual Report 2001–2002 Water and Rivers Commission

29 Contingent liabilities

In addition to the liabilities incorporated in the financial statements, the Commission has the following contingent liability:

Pay-roll tax assessment

The Commission was issued a preliminary assessment by the Department of Treasury and Finance wherein approximately $520 000 may be payable. This was due to the omission of employer superannuation contributions and Fringe Benefits Taxable amounts in the calculation of payroll tax returns for the years 1998, 1999, 2000 and 2001.

30 Events occurring after reporting date

No events have occurred after reporting date which materially impact on the financial statements.

31 Explanatory statements

(a) Significant variations between actual revenues and expenditures for the financial year and revenues and expenditures for the immediately preceding financial year

Details and reasons for significant variations between actual revenue and expenditure and the corresponding item of the preceding year are detailed below. Significant variations are considered to be those greater than $500 000 where exceeding 10% of the preceding year’s figure.

Note 2002 2001 Variance Actual Actual $000 $000 $000

Expenses from ordinary activities

Employee expenses (i) 26 227 28 312 (2 085)

Borrowing costs expense 114 145 (31)

Depreciation and amortisation expense 1 616 1 598 18

Capital user charge 8 178 - 8 178

Grants and subsidies (ii) 4 076 1 846 2 230

Lease rentals 2 512 2 758 (246)

Service related expenses (iii) 10 054 12 448 (2 394)

Goods and materials 2 388 2 530 (142)

Other expenses from ordinary activities (iv) 2 685 2 992 (307)

Net loss on disposal of non-current assets 30 8 22

Total Expenses 57 880 52 637 5 243

Continued on next page…

73 Water and Rivers Commission Annual Report 2001–2002

…continued from previous page

Note 2002 2001 Variance Actual Actual $000 $000 $000

Revenues

Licence fees and charges 67 49 18

Commonwealth grants and contributions (v) 3 487 6 686 (3 199)

Recoup from the Office of Water Regulation 184 184 -

Recoup from Swan River Trust (vi) 2 186 3 171 (985)

Interest 214 265 (51)

Other revenues from ordinary activities (vii) 3 175 2 378 797

Total revenues from ordinary activities 9 313 12 733 (3 420)

Net cost of services 48 567 39 904 8 663

Explanation of variances

(i) Employee expenses

The variation is mainly due to the additional superannuation expense raised in 2001 in recognising the liability relating to the transfer of former Water Corporation employees to the Commission.

(ii) Grants and subsidies

The variation in grants and subsidies is primarily due to the transfer of the Rural Water Grant program from the Office of Water Regulation.

(iii) Service related expense

The variation is due to a reduction in the engagement of contractors particularly in the Waterways Protection program.

(iv) Other expenses from ordinary activities

The variance is due to a general decrease in expenditure during the financial year.

(v) Commonwealth grants and contributions

The variation is primarily due to a reduction in Natural Heritage Trust (NHT) funding and Environment and Heritage funding for the Coastal and Clean Seas program.

(vi) Recoup from Swan River Trust

The recoup for 2002 has been reduced as a result of the transfer of several functions previously undertaken by the Commission which are now undertaken by Swan River Trust.

74 Annual Report 2001–2002 Water and Rivers Commission

(vii) Other revenues from ordinary activities

The variation is primarily due to an increase in other grants and advances received during the financial year.

(b) Comparison of Estimates and Actual Results

Section 42 of the Financial Administration and Audit Act requires statutory authorities to prepare annual budget estimates. Treasurer’s instruction 945 requires an explanation of significant variations between these estimates and actual results. Significant variations are considered to be those greater than 10% of budget. The figures below represent the total cost of the output on an accrual basis.

OUTPUTS Note Estimate Actual Variance 2002 2002 $000 $000 $000

Water allocation policies (i) 2 228 1 532 (696)

Water information and allocation plans for

Sustainable development (ii) 15 280 12 826 (2 454)

Regulation, licensing and community awareness 7 277 7 982 705

Rural water supply assistance (iii) 1 561 2 307 746

Water protection policies, guidelines and regulation (iv) 14 943 9 529 (5 414)

Water resource information, protection

Plans and works 23 234 22 810 (424)

State development planning and approvals (v) 1 066 894 (172)

65 589 57 880 7 709

Explanation of variances – Actual to estimate

The combination of additional income and accrual expenses increased the overall costs for all outputs. Output cost variations also resulted from the redirection of funds to emergent priorities within alternative outputs. Details of these transfers are listed below.

(i) Water allocation policies

The Output was underspent mainly due to technical delays experienced within the Kwinana Aquifer Storage and Recovery Pilot project.

(ii) Water information and allocation plans for sustainable development

The Estimate contained an overstatement of approximately $2m for the Capital User Charge which was subsequently adjusted against the Commission’s appropriation during the year, by the Department of Treasury and Finance.

75 Water and Rivers Commission Annual Report 2001–2002

(iii) Rural water supply assistance

Actual expenditure for 2002 includes grants paid to rural communities from past year carryover funds. Funds are held by the Commission and paid as rural communities achieve contracted milestones.

(iv) Water protection policies, guidelines and regulation

The Estimate contained an overstatement of approximately $6m for the Capital User Charge which was subsequently adjusted against the Commission’s appropriation during the year, by the Department of Treasury and Finance.

(v) State development planning and approvals

Water research programs to provide information for assesssing state development proposals, were delayed due to weather conditions preventing access to resources and delays in negotiating drilling and water research contracts with other agencies.

32 Financial instruments (a) Interest rate risk exposure

The following table details the Commission’s exposure to interest rate risk as at the reporting date:

Fixed interest rate maturities Weighted Variable Less than 1 to 5 years More than Non-interest Total average rate 1 year 5 years bearing effective interest rate 2002 % $000 $000 $000 $000 $000 $000

Financial Assets Cash assets 4.7 4 723 - - - 13 320 18 043 Restricted cash 4.7 27 - - - - 27 Receivables - - - - - 681 681

Interest receivable 4.7 17 - - - - 17

4 767 - - - 14 001 18 768

Financial Liabilities Payables - - - - - 421 421 WATC 7.0 - 598 747 91 - 1 436 Other liabilities - - - - - 74 74

Developer bond - - - - - 27 27

- 598 747 91 522 1 958

2001

Financial assets 6.1 4 532 - - - 7 950 12 482

Financial liabilities 7.2 - 200 750 686 13 374 15 010

76 Annual Report 2001–2002 Water and Rivers Commission

(b) Credit Risk Exposure

The Commission does not have any significant exposure to any individual customer or counter party. Amounts owing by other government agencies are guaranteed and therefore no credit risk exists in respect to those amounts. In respect of other financial assets the carrying amounts represent the Commission’s maximum exposure to credit risk in relation to those assets. All financial assets are unsecured.

The following is an analysis of amounts owing within the categories of government and private sector:

2002 2001 $000 $000

Western Australian Government agencies 184 171

Government agencies of other jurisdictions 195 44

Private sector 72 218

Commonwealth Government – ATO (GST) 230 260

681 693

33 Remuneration of members of the accountable authority and senior officers

Remuneration of members of the accountable authority

The number of members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are:

$ 2002 2001

0 - 10 000 1 2

10 001 - 20 000 4 2

20 001 - 30 000 0 1

30 001 - 40 000 1 0

140 001 - 150 000 0 1

The total remuneration of the members of the Accountable Authority is: 80 214

The superannuation included here represents the superannuation expense incurred by the Commission in respect of members of the Accountable Authority.

No members of the Accountable Authority are members of the Pension Scheme.

77 Water and Rivers Commission Annual Report 2001–2002

2002 2001 $000 $000

Remuneration of Senior Officers

The number of Senior Officers other than senior officers reported as members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are:

$ 2002 2001

100 001 - 110 000 4 4

170 001 - 180 000 1 1

The total remuneration of the members of the Senior Officers is: 636 830

The superannuation included here represents the superannuation expense incurred by the Commission in respect Senior Officers other than Senior Officers reported as members of the Accountable Authority.

One Senior Officer is a member of the Pension Scheme.

34 Related and affiliated bodies

The Water and Rivers Commission currently does not provide any assistance to other agencies which would deem them to be regarded as related or affiliated bodies under the definitions included in Treasurer’s Instruction 951.

35 Supplementary financial information

Write-Offs

Accounts receivable 2 164 1 028

Petty cash shortage 151 155

2 315 1 183

Losses Through Theft, Defaults And Other Clauses

Loss of property through theft/fraud - -

Amount recovered - -

Net loss of property through Theft/fraud - -

Gifts of public property

Gifts of public property provided by the Commission - -

78 Annual Report 2001–2002 Water and Rivers Commission

36 Output information

Water Water Regulation, Rural Water Water Water State TOTAL allocation information licensing supply protection resource development policies and allocation and assistance policies, information, planning plans for community guidelines protection and sustainable awareness and plans approvals development regulation and works 2002 2002 2002 2002 2002 2002 2002 2002 $000 $000 $000 $000 $000 $000 $000 $000

COST OF SERVICES

Expenses from ordinary activities

Employee expenses 578 6 063 4 580 289 1 713 12 454 550 26 227

Borrowing costs expense 1 20 23 1 4 61 4 114

Depreciation and amortisation expense 15 290 329 14 51 866 51 1 616

Capital user charge 10 1 731 62 4 6 223 144 4 8 178

Grants and subsidies 624 142 458 1 685 86 1 070 11 4 076

Lease rentals 22 461 485 24 74 1 373 73 2 512

Service related expenses 224 2 669 1 397 256 605 4 783 120 10 054

Goods and materials 17 748 181 5 664 753 20 2 388

Other expenses from ordinary activities 41 696 461 29 108 1 290 60 2 685

Net loss on disposal of non-current assets - 6 6 - 1 16 1 30

Total cost of services 1 532 12 826 7 982 2 307 9 529 22 810 894 57 880

Revenues from ordinary activities

User charges and fees 1 11 14 1 2 36 2 67

Commonwealth grants and contributions 32 626 710 30 109 1 870 110 3 487

Recoup from the Office of Water Regulation 2 32 37 2 6 99 6 184

Recoup from Swan River Trust 20 392 445 19 69 1 172 69 2 186

Interest revenue 2 37 44 2 7 115 7 214

Other revenues from ordinary activities 29 570 647 27 100 1 702 100 3 175

Total revenues from ordinary activities 86 1 668 1 897 81 293 4 994 294 9 313

NET COST OF SERVICES 1 618 11 158 6 085 2 226 9 236 17 816 600 48 567

REVENUES FROM GOVERNMENT

Output appropriation 440 8 599 9 753 413 1 501 25 674 1 505 47 885

Assets assumed/(transferred) (2) (47) (51) (2) (8) (135) (8) (253)

Resources received free of charge 2 49 55 2 8 144 8 268

Total revenues from Government 440 8 601 9 757 413 1 501 25 683 1 505 47 900

Change in net assets 2 058 (2 557) 3 672 (1 813) (7 735) 7 867 905 (667)

79 Water and Rivers Commission Annual Report 2001–2002

Appendix A – Regional Office details

SWAN GOLDFIELDS AGRICULTURAL REGION Manjimup office 7 Ellam Street 52 Bath Street VICTORIA PARK WA 6100 MANJIMUP WA 6258 Telephone (08) 6250 8000 Telephone (08) 9771 1878 Facsimile (08) 6250 8050 Facsimile (08) 9771 8108

Kalgoorlie office Viskovich House MID WEST GASCOYNE REGION 377 Hannan Street 25 Forrest Street KALGOORLIE WA 6430 GERALDTON WA 6530 (PO Box 73, Geraldton WA 6531) Telephone (08) 9021 3243 Facsimile (08) 9021 3529 Telephone (08) 9964 5978 Facsimile (08) 9964 5983 Northam office 254 Fitzgerald Street Carnarvon office NORTHAM WA 6401 82 Olivia Terrace (PO Box 497, Northam WA 6401) CARNARVON WA 6701 Telephone (08) 9622 7055 Telephone (08) 9941 4921 Facsimile (08) 9622 7155 Facsimile (08) 9941 4931

KWINANA PEEL REGION 165 Gilmore Avenue NORTH WEST REGION KWINANA WA 6167 Lot 980 Cherratta Road, KIE (PO Box 454, Kwinana WA 6167) KARRATHA WA 6714 (PO Box 836 Karratha WA 6714) Telephone (08) 9419 5500 Facsimile (08) 9419 5897 Telephone (08) 9144 2000 Facsimile (08) 9144 2610 Mandurah office Suite 8, Sholl House, Kununurra office 21 Sholl Street Lot 225 Bandicoot Drive MANDURAH WA 6210 KUNUNURRA WA 6743 (PO Box 332, Mandurah WA 6210) (PO Box 625 Kununurra WA 6743) Telephone (08) 9535 3411 Telephone (08) 9168 1082 Facsimile (08) 9581 4560 Facsimile (08) 9168 3174

Cockburn Sound Management Council Shop 1, 15 Railway Parade SOUTH COAST REGION ROCKINGHAM WA 6168 5 Bevan Street (PO Box 5161, Rockingham Beach WA 6969) ALBANY WA 6330 Telephone (08) 9591 3837 (PO Box 525 Albany WA 6331) Facsimile (08) 9528 5387 Telephone (08) 9842 5760 Facsimile (08) 9842 1204 SOUTH WEST REGION 21–35 McCombe Road Denmark office BUNBURY WA 6231 Suite 1, 55 Strickland Street (PO Box 261, Bunbury WA 6231) DENMARK WA 6333 Telephone (08) 9726 4111 Telephone (08) 9848 1866 Facsimile (08) 9726 4100 Facsimile (08) 9848 1733

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Appendix B – Water words and glossary

Abstraction Pumping groundwater from an aquifer.

Allocation The quantity of groundwater permitted to be abstracted by a well licence, usually specified in kilolitres/year (kL/a).

Alluvium (alluvial) Detrital material which is transported by streams and rivers and deposited.

Aquifer A geological formation or group of formations able to receive, store and transmit significant quantities of water.

Bore A narrow, lined hole drilled to monitor or withdraw groundwater.

Catchment The area of land which intercepts rainfall and contributes the collected water to surface water (streams, rivers, wetlands) or groundwater.

Confined aquifer An aquifer that is confined between shale and siltstone beds and therefore contains water under pressure.

Diffuse source pollution Pollution originating from a widespread area e.g. urban stormwater runoff, agricultural runoff.

Effluent The liquid, solid or gaseous wastes discharged by a process, treated or untreated.

Groundwater Water which occupies the pores and crevices of rock or soil.

Hydrogeology The study of groundwater, especially relating to the distribution of aquifers, groundwater flow and groundwater quality.

Leaching / leachate The process by which materials such as organic matter and mineral salts are washed out of a layer of soil or dumped material by being dissolved or suspended in percolating rainwater, the material washed out is known as leachate. Leachate can pollute groundwater and waterways.

AHD Australian Height Datum. Height in metres above Mean Sea Level +0.026 m at Fremantle.

Nutrient load The amount of nutrient reaching the waterway over a given time (usually per year) from its catchment area.

Nutrients Minerals dissolved in water, particularly inorganic compounds of nitrogen (nitrate and ammonia) and phosphorus (phosphate) which provide nutrition (food) for plant growth. Total nutrient levels include the inorganic forms of an element plus any bound in organic molecules.

Pesticides Collective name for a variety of insecticides, fungicides, herbicides, algicides, fumigants and rodenticides used to kill organisms.

Point source pollution Specific localised source of pollution e.g. sewage or effluent discharge, industrial waste discharge.

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Pollution Water pollution occurs when waste products or other substances e.g. effluent, litter, refuse, sewage or contaminated runoff, change the physical, chemical, biological or thermal properties of the water, adversely affecting water quality, living species and beneficial uses.

Public Water Source Area (PWSA) As for UWPCA, but allowing the taking of groundwater for public supplies.

Recharge Water infiltrating to replenish an aquifer.

Recharge area An area through which water from a groundwater catchment percolates to replenish (recharge) an aquifer. An unconfined aquifer is recharged by rainfall throughout its distribution. Confined aquifers are recharged in specific areas where water leaks from overlying aquifers, or where the aquifer rises to meet the surface.

Riparian Relating to a river.

Runoff Water that flows over the surface from a catchment area, including streams.

Saltwater intrusion The inland intrusion of saltwater into a layer of fresh groundwater.

Scheme supply Water diverted from a source (or sources) by a water authority or private company and supplied via a distribution network to customers for urban, industrial or irrigation use.

Storage reservoir A major reservoir of water created in a river valley by building a dam.

Stormwater Rainwater which has run off the ground surface, roads, paved areas etc and is usually carried away by drains.

Treatment Application of techniques such as settlement, filtration and chlorination to render water suitable for specific purposes including drinking and discharge to the environment.

Unconfined aquifer An aquifer containing water, the upper surface of which is lower than the top of the aquifer. The upper surface of the groundwater within the aquifer is called the watertable.

Underground Water (UWPCA) An area defined under the Metropolitan Water Supply Sewerage and Pollution Control Area Drainage Act, in which restrictions are put on activities that may pollute the groundwater.

Wastewater Water that has been used for some purpose and would normally be treated and discarded. Wastewater usually contains significant quantities of pollutant.

Water quality The physical, chemical and biological measures of water.

Watertable The upper saturated level of the unconfined groundwater.

Wellfield A group of bores to monitor or withdraw groundwater.

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Abbreviations AGWEST Agriculture Western Australia CALM Department of Conservation and Land Management

COAG Council of Australian Governments EPA Environmental Protection Authority ICM Integrated Catchment Management

LCDC Land Conservation District Committee NHT Natural Heritage Trust OWR Office of Water Regulation

WA Western Australia WRC Water and Rivers Commission HEAT HAZMAT Emergency Advisory Team

DCT Department of Commerce and Trade UWA University of Western Australia GL/yr Gigalitres per year

DEP Department of Environmental Protection FTE Full-time equivalent HRIS Human Resources Information Management System

IT Information Technology NRM Natural Resource Management BMRC Bureau of Meteorology Research Centre

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Appendix C – Media releases

JUNE 27 June 2002 Mandurah school bores monitored by students

MAY 30 May 2002 Victoria Plains Rivercare Workshop

29 May 2002 Exmouth public drinking water source area legally protected 28 May 2002 Cleaner Production Training Package launch 24 May 2002 Discovery a first for Western Australia

21 May 2002 Call for comment on Samson Brook water source protection plan 20 May 2002 Proposed Gingin/Dandaragan Water Resource Management Committee 17 May 2002 Waste water discharge prompts investigation

15 May 2002 First Saltwatch campaign gets underway in WA 9 May 2002 Student focus on ecotourism for annual water competition 8 May 2002 City Consultants go wetland weeding and planting

1 May 2002 Dead fish in Collie River linked to Brunswick River fish kill 1 May 2002 Watheroo public drinking water source area legally protected 1 May 2002 Albany public drinking water source area legally protected

APRIL 30 April 2002 Fish deaths in Brunswick River follow rains

24 April 2002 New policies help bring balance to Ord River waterways 18 April 2002 Watershed Torbay project awash with community support 15 April 2002 Nuisance marine algae found along Kwinana and Mandurah beaches

11 April 2002 Biodiversity exhibit opened at Garden Week 2002 – Minister 10 April 2002 Commission recommends actions on Stirling acid water investigations 9 April 2002 Watershed Tobay - first in Australia to be launched

8 April 2002 Free community water quality data workshop

MARCH

28 March 2002 South West land division drought management still needed 14 March 2002 Potentially toxic algal bloom stops water-based recreation at Kent Street Weir

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3 March 2002 City bankers go wetland weeding

1 March 2002 Another river foreshore rehabilitation project completed at South Perth – Minister 1 March 2002 Clean Up Australia Day gets down the drain

FEBRUARY 27 February 2002 Noneycup Creek facelift continues with action plan stage two 27 February 2002 South Coast Ribbons of Blue gets new coordinator

27 February 2002 Fitzroy River flood warnings provided by river watchdog system 25 February 2002 Have you say on recovering the Avon River between Northam and Toodyay 25 February 2002 Leading by example to help Clean Up Australia

25 February 2002 Mortlock River’s north branch to be surveyed 23 February 2002 Swan River Trust review to enhance structures – Minister 22 February 2002 Draft plan comment nets prize for local resident 20 February 2002 LIMA calls for navigation issues to be resolved

20 February 2002 Turf’s Up workshop teaches best management practices 14 February 2002 Esperance wetlands focus of one-day tour 14 February 2002 Water licensing reviewed by Carnarvon Water Allocation Advisory Committee

13 February 2002 Mount Barker ‘Town Dam’ wetland nears completion 13 February 2002 Land clearing prosecution sets new precedent 7 February 2002 Albany’s Lake Seppings venue for World Wetlands Day event

4 February 2002 Action in the Warradarge catchment 4 February 2002 Nominations to the Cape to Cape Water Resource Management Committee called

JANUARY

31 January 2002 Tides turn on Bullcreek Jetty future 29 January 2002 State Government funding pumped into on-farm water supplies – Minister 25 January 2002 Peel waterways plan out for public comment

25 January 2002 Algae scum and fish deaths on the Murray River 25 January 2002 Stirling water protection by-laws come under review 22 January 2002 Algae bloom stops recreation on Albany’s Lake Powell

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15 January 2002 Quinninup Dam Water Resource Protection Plan open for public comment

11 January 2002 Aboriginal group secures water reserve lease 3 January 2002 Foreshore restoration program underway – Minister

DECEMBER 31 December 2001 Community to have long-term role in managing Wilson Inlet

21 December 2001 Restrictions on household garden bores begin today – Minister 19 December 2001 Trust buoys up boating on the river 19 December 2001 Scum causing algae found in Murray River

18 December 2001 More algal blooms predicted for South West rivers 18 December 2001 Wellstead Estuary fish deaths follow rains 17 December 2001 River floods swamp estuary killing cockles

12 December 2001 Office workers get dirty on river restoration 11 December 2001 Water shortage declared for South West of the State 7 December 2001 Sewage spill no threat to future river health

6 December 2001 Potentially toxic algal bloom in the Serpentine 5 December 2001 Guidelines for Water Trading officially established – Minister 4 December 2001 Erosion and weeds workshop on Collie River at Roelands

1 December 2001 Environmental volunteers honoured

NOVEMBER 30 November 2001 Kwinana-Peel Region steps out as new identity 28 November 2001 Algal bloom warning to green thumb gardeners

28 November 2001 Point Douro development in focus at workshop 27 November 2001 Community called to help on water use plans 26 November 2001 Lake Byleveld blooms nipped in the bud by local group

22 November 2001 Collie River salinity report offers potential solutions – Minister 22 November 2001 Swan Catchment Centre relocates 21 November 2001 Protecting the future of fishing

16 November 2001 Environmental guidelines for horses out for comment 16 November 2001 Homeowners urged to dig deep to ease water shortages 15 November 2001 Talbot Brook draft report showing good signs

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12 November 2001 Thieves clip the wings of feral duck program 8 November 2001 New trial area for Canning Phoslock treatment 8 November 2001 New Ribbons of Blue coordinator for Avon region 8 November 2001 Algal blooms in Melville-Shelley waters 7 November 2001 Brunswick Junction eco-tourism opportunity 6 November 2001 Algae bloom from Maylands to Success Hill 6 November 2001 Dawn blessing for Canning River Festival 1 November 2001 Carnarvon growers face licence suspension 1 November 2001 First AquaFest a flood of information and fun 1 November 2001 Local schools well designed to win competition

OCTOBER 31 October 2001 Taskforce calls for united front to battle drought 30 October 2001 Spring rains no relief for South West landholders 29 October 2001 Spencers Brook draft report showing good signs 19 October 2001 National winners of environment video competition announced – Minister 19 October 2001 Tree poisoning attempt nipped in the bud 16 October 2001 AquaFest highlights Swan Region waterway projects 11 October 2001 Phoslock trials begin in Vasse River – Minister 2 October 2001 Cue town water supply protected by new plan

SEPTEMBER 28 September 2001 Information flows at Leschenault Inlet symposium 26 September 2001 Protecting Bunbury town water supply 18 September 2001 Red Tide algae in the Canning River 18 September 2001 Algal blooms in the Swan River 17 September 2001 Show-time fun is ‘down the drain’ this year 12 September 2001 Geographe group wins top rivercare award 12 September 2001 Bannister Creek group recognised as WA’s top RATs 10 September 2001 Vasse River cleanup trials start again 10 September 2001 Moora water reserve gazetted 5 September 2001 Conservation training program reaps award 4 September 2001 Members needed for new Wilson Inlet Management Group

87 Water and Rivers Commission Annual Report 2001–2002

AUGUST 31 August 2001 Snapshot 2001 28 August 2001 Leschenault Inlet symposium 24 August 2001 Protecting Broome town water supply 18 August 2001 Progress being made to keep our Swan and Canning Rivers healthy: Minister 16 August 2001 From the roads to the rivers 13 August 2001 GeoCatch reports to the community 10 August 2001 $1000 Ribbons of Blue schools competition 10 August 2001 Life in water search 8 August 2001 Forum on water and salt in the Moore catchment 7 August 2001 Special kids help harbour

JULY 30 July 2001 Launch of new workboat 30 July 2001 SCCP City to Surf team 30 July 2001 Princess Royal Harbour nutrient audit 27 July 2001 Public information sessions on new water legislation 26 July 2001 Students to learn about protecting water resources through innovative board game 25 July 2001 Planning wiser groundwater use in the Mid-West 24 July 2001 Community forum for Swan and Canning rivers 23 July 2001 Wooroloo rivercare workshop 20 July 2001 GeoCatch reports to the community 20 July 2001 Protecting Mingenew town water supply 17 July 2001 Harvey River restoration course 13 July 2001 Rural outing benefits rivers 11 July 2001 Potentially toxic microcystis algae detected near Maylands 6 July 2001 Toodyay Brook report complete 6 July 2001 Management guidelines for Collie River islands 6 July 2001 Blue-green algal bloom in Lake Indoon 4 July 2001 Public input needed on management of Waroona Dam 3 July 2001 Rural outing benefits rivers 3 July 2001 Encouraging signs shown in Cockburn Sound study

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Appendix D – Publications produced during 2001-02

Most new Commission publications are available to download in PDF format from the Commission’s website at . Where indicated, publications are also available on CD.

Water Resource Management Report Series (WRM) Chapman River foreshore assessment, Water and Rivers Commission, WRM 23, October 2001 Greenough River foreshore assessment, Water and Rivers Commission, WRM 24, October 2001

Gwambygine Pool management plan, Water and Rivers Commission, WRM 27, November 2001 (CD)

Water Resource Technical Report Series (WRT) Salinity situation statement – Collie River, Water and Rivers Commission, WRT 29, October 2001

Water Resource Protection Report Series (WRP) Broome water reserve: water source protection plan, Water and Rivers Commission, WRP 41, July 2001 Mingenew water reserve – Water source protection plan

Mingenew town water supply, Water and Rivers Commission, WRP 42, June 2001 South Coast water reserve and Limeburners Creek catchment area water source protection plan; Albany town water supply, Water and Rivers Commission, WRP 44, June 2001 Moochalabra dam catchment area water source protection plan. Wyndam town water supply, Water and Rivers Commission, WRP 45, April 2002

Derby water reserve, water source protection plan. Derby town water supply, Water and Rivers Commission, WRP 46, December 2001 Allanooka and Dongara – Denison water source protection plan, Water and Rivers Commission, WRP 47, March 2002

Hydrogeological Record Series (HG)

Central Pilbara Groundwater Study, Water and Rivers Commission, HG 8, 2001 (CD)

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River Recovery Plan Series (RRP)

Avon River recovery plan. A plan for the recovery and future management of the Avon River, from Beverly to Edwards Crossing. Section 13, Water and Rivers Commission, RRP 4, January 2002 (CD) Avon River recovery plan. A plan for the recovery and future management of the Avon River, from Beverly to Edwards Crossing. Sections 14, 15 and 16, Water and Rivers Commission, RRP 5, January 2002 (CD)

Water Licensing

Application for a 5C licence to take surface water / Application for a 11/17/21A permit to interfere with bed and banks (Form C), Water and Rivers Commission, October 2001 Application to amend a 5C licence to take groundwater / Application to renew a 5C licence to take groundwater (Form B), Water and Rivers Commission, October 2001 Application for a 5C licence to take groundwater / Application for a 26D licence to construct or alter wells (Form A), Water and Rivers Commission, October 2001

Application to amend / renew surface water licence (Form D), Water and Rivers Commission, October 2001 Application for an agreement to take water (Form E), Water and Rivers Commission, October 2001 Application for transfer of water entitlement (Form F), Water and Rivers Commission, October 2001

Application for transfer of licence (Form G), Water and Rivers Commission, October 2001 Application for permit (Form H), Water and Rivers Commission, October 2001 Notice that licence holder not eligible to hold licence (Form I), Water and Rivers Commission, October 2001

Advert for a licence and/or permit (Form J), Water and Rivers Commission, October 2001 Statutory declaration (Form K), Water and Rivers Commission, October 2001 Application for notation/removal/variation of security interest (Form L), Water and Rivers Commission, October 2001

Guidelines Series Environmental Management Guidelines for Vineyards. Guidelines No.12, June 2002

Other Reports, Booklets and Catalogues Managing the water resources of the Jurien Groundwater Area, Western Australia Interim sub-regional allocation strategy, Water and Rivers Commission, January 2002 Understanding groundwater, Water and Rivers Commission, February 2002

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Understanding water quality in the (5 target catchments) Esperance Lakes, Oldfield- Munglinup River, Gairdner River, Pallinup River, Gordon River, Water and Rivers Commission, July 2001 (Separate booklet for each catchment)

Water and Rivers Commission Annual Report 2000 - 2001, Water and Rivers Commission, December 2001. (CD) Managing the water resources of the Arrowsmith Groundwater Area, Western Australia Interim sub-regional allocation strategy, Water and Rivers Commission, January 2002

Reports to the Community

Wilson Inlet report to the community No.6, Water and Rivers Commission, June 2002

Water Notes (series also available on CD with Water facts)

Determining foreshore reserves, Water and Rivers Commission, WN 23, November 2001 The effects and management of deciduous trees on wetlands, Water and Rivers Commission, WN 25, January 2002 Simple Fishways, Water and Rivers Commission, WN 26, January 2002

Demonstration sites of waterways restoration in WA, Water and Rivers Commission, WN 27, February 2002 Monitoring and evaluating river restoration works, Water and Rivers Commission, WN 28, February 2002 Long term management of riparian vegetation, Water and Rivers Commission, WN 29, February 2002

Pamphlets, Brochures and Posters “Bringing back the swans” flyer for school children, Water and Rivers Commission, 2001 DEWCAP corporate brochure, Water and Rivers, 2002

Artificial recharge on the Gascoyne River, Water and Rivers Commission, October 2001

Internet Publication Statewide assessment of river water quality (report), Water and Rivers Commission, March 2002

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Annual Report 2001–2002 Water and Rivers Commission

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