Department of Infrastructure

annual report

Department of Infrastructure Level 14, 80 Collins Street Melbourne Victoria 3000 2002–03 Tel. (03) 9655 6666 Department of Infrastructure October 2003 annual report 2002-03annual report Annual Report 2002–03

29 October 2003

The Hon. Peter Batchelor MP Minister for Transport and Minister for Major Projects

The Hon. Theo Theophanous MLC Minister for Energy Industries and Resources

The Hon. Marsha Thomson MLC Minister for Information and Communication Technology

80 Collins Street Melbourne 3000 www.doi.vic.gov.au

Dear Ministers

Annual Report 2002–03

In accordance with the provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Infrastructure Annual Report for the year ended 30 June 2003.

Yours sincerely

Howard Ronaldson Secretary Department of Infrastructure

annual report 2002–03 i DEPARTMENT OF INFRASTRUCTURE The Department of Infrastructure (DOI) aims to be a leader in policy, planning, development and delivery of integrated infrastructure that contributes to sustainable environmental, economic and social development in Victoria.

VISION

To be a department that delivers the Government’s Growing Victoria Together vision by providing innovative and integrated strategic advice and project delivery consistent with a triple-bottom-line framework.

ii Department of Infrastructure MISSION

The purpose of DOI is to lead, in collaboration with stakeholders and the community, strategic planning, integration, development and management of transport, energy policy, information and communication technology, major projects and the security of critical infrastructure. We will do this by:

• linking the transport system of road, rail, air and sea channels to promote economic and social development through increased mobility and access, and a more cost-effective freight and logistics sector •promoting efficient and integrated transport services across different modes while managing road and freight traffic growth, in order to address the needs of the travelling public and industry • delivering the Government’s major transport infrastructure investments •providing strategic policy advice, analysis and support to government, our stakeholders and communities in the areas of energy policy, information and communication technologies, and transport systems • delivering a wide range of other major projects on behalf of government departments and agencies.

annual report 2002–03 iii VALUES

The values, developed by our staff, underpin everything we do at DOI and highlight the commitment to professionalism. At DOI we value: Teamwork We acknowledge our shared goals. We openly cooperate and communicate our knowledge and we share our expertise and information within our work units and across DOI, individually and organisationally. Diversity We value our people’s diversity and respect and recognise each other’s diverse knowledge, skills and capabilities. Integrity We are ethical, accountable and transparent in our dealings with colleagues, stakeholders and clients. Commitment We are committed to the provision of high-quality services and are responsive to the changing demands of the community, government and other stakeholders we serve. Innovation We support lifelong learning and flexibility, and encourage innovation to provide solutions and achieve better outcomes.

iv Department of Infrastructure SECRETARY’S FOREWORD

The year 2002–03 was one of significant Committee during their development phase, achievement for DOI, with major progress on and project management and delivery is a range of infrastructure projects to support monitored closely by the Department’s Capital and deliver the Government’s Subcommittee. There has been a structural policy objectives. realignment within DOI, with project delivery, governance and review grouped under the Machinery-of-government changes in responsibility of the Deputy Secretary - December 2002 brought about fundamental Capital. changes in DOI’s structure. Multimedia Victoria (MMV) moved to DOI from the DOI has eight portfolio outcomes: Department of Innovation, Industry and • public safety and security Regional Development (DIIRD), and DOI • infrastructure delivery and management assumed responsibility for strategic advice on • access and mobility energy policy, which was previously held by • connecting Victoria the former Department of Natural Resources • rural and regional development and Environment (DNRE). DOI was also given • seamless freight and logistics system responsibility for implementing and • secure and sustainable energy supply monitoring security strategies to protect •organisational capability building. Victoria’s critical infrastructure. Strategic DOI’s achievements in 2002-03 include: planning for transport sector investments •a significant reduction in the road toll in was retained by DOI, and the former both metropolitan Melbourne and Ports portfolio was incorporated into regional Victoria since the introduction of the Transport portfolio. campaigns funded under the arrive alive! DOI’s Planning, Heritage and Building Division road safety strategy, which address such was relocated to the Department key challenges as speed, drink driving and of Sustainability and Environment (DSE), roadside safety and a section of DOI’s Strategic Planning • successful management of the major Division was also moved to DSE to changes to franchise arrangements for reflect its focus on strategic land-use planning. tram and train operations, following the The other major transfer was placing into administration of National the Local Government Division, which moved Express franchises in December 2002 to the Department for Victorian Communities • the opening of Federation Square, which (DVC). in its first six months became Melbourne’s top attraction This coalition of portfolio responsibilities for • expressions of interest called for the delivering infrastructure and services through $2 billion Mitcham-Frankston Freeway transport, major projects, energy policy and • passing of legislation in Parliament to information and communication technology merge the Docklands Authority and the (ICT) placed DOI at the forefront of managing Urban and Regional Land Corporation significant commercial relationships for the into VicUrban - creating a single urban delivery of essential community services development arm of Government which in support of the Government’s Growing will provide a strong focus and enhanced Victoria Together outcomes. capability to undertake strategic urban DOI has realigned its priorities and renewal projects structure to sharpen its focus on these • development of a Partnerships Venture responsibilities, and has established a strong between the State and the Royal capital cycle from project generation to Agricultural Society for the redevelopment project completion. All projects undergo of the Royal Melbourne Showgrounds rigorous assessment by the Project Review

annual report 2002–03 v • introduction into service of new trains, • completion of the Geelong Grain Loop, trams and buses with enhanced safety marking a further progression toward features, to improve service and amenity the Government’s target of moving to passengers, and the introduction of the 30 per cent of freight to and from sale of daily tickets on trams, to increase Victoria’s commercial ports by rail by 2010 the convenience of using public transport • introduction of competition into gas • appointment of a private consortium to and electricity retailing for Victorian design, construct, finance, lease, maintain households and small businesses and operate the new transport • establishment of the $57 million interchange facility at Spencer Street Network Tariff Rebate (NTR), which Station, as part of the Government’s provides consistency between Partnerships Victoria initiative metropolitan and non-metropolitan • completion of the Geelong Road project, electricity bills for households and and of the Carlsruhe section of the Calder small businesses. Highway In 2002-03 DOI also continued to build its • further work on the Regional Fast Rail organisational capacity, to ensure that we links to Ballarat, Bendigo, Geelong have the right skills and processes in place and the Latrobe Valley, and on the to support our work and implement the reintroduction of passenger rail services Government’s Growing Victoria Together to Ararat and Bairnsdale outcomes. • implementation of a range of port reforms, including the creation of a new DOI faces considerable challenges in entity to manage the Port of Melbourne, the coming years. The Government and drafting of new legislation to has allocated to DOI responsibility implement the balance of reform for managing infrastructure investments initiatives to which the Government has worth billions of dollars. In addition to the committed $2 billion Southern and Eastern Integrated • opening of the state-of-the-art Box Hill Transport Project (Mitcham-Frankston tram extension, providing a significant Freeway), over the next three years DOI boost to transport services in the eastern will oversee the expenditure of more than suburbs of Melbourne $500 million on regional fast rail projects, • the attraction of a series of new ICT telecommunication tenders totalling investments in the State, securing more approximately $500 million, and (acting on than $160 million in new capital behalf of other government clients) nearly investment and generating more than $800 million on projects such as the 2000 new jobs Australian Synchrotron Facility, • announcement of the establishment of redevelopment of the Royal Melbourne the Chief Information Officer and the Showgrounds and facilities for the 2006 Chief Technology Officer, who will ensure Commonwealth Games. that ICT is used to its fullest capacity to We will continue to work with our Ministers assist government, that access and and in partnership with the private sector to learning is maximised, and that best value successfully manage these challenges, and to for money in relation to ICT services is plan and deliver world class infrastructure for obtained all Victorians. • establishment of the Telecommunications Purchasing and Management Strategy (TPAMS) across the whole of the Victorian Government, to achieve savings and provide access to the latest technology Howard Ronaldson Secretary vi Department of Infrastructure CONTENTS

Vision, Mission, Values ii-iv Secretary’s Foreword v Infrastructure Portfolios 1 Organisational Chart 2 DOI’s Management Committee 3 Chief Finance Officer’s Executive Analysis 6 Outcome 1 – Public Safety and Security 7 Outcome 2 – Infrastructure Delivery and Management 13 Outcome 3 – Access and Mobility 19 Outcome 4 – Connecting Victoria 27 Outcome 5 – Rural and Regional Development 33 Outcome 6 – Seamless Freight and Logistics System 37 Outcome 7 – Secure and Sustainable Energy Supply 41 Outcome 8 – Organisational Capability Building 45 Summary of Financial Results 49 Financial Statements 51 Portfolio Agencies Statement 53 Appendixes 109 Output Performance Measures 110 Legislation Administered 132 Budget Portfolio Outcomes 135 Staff Profile, including DOI Executive Numbers 140 Statutory Authorities’ Executive Numbers 141 Industrial Relations, Human Resources, OHS, etc. 142 Freedom of Information 143 Internal Audit Committee 143 National Competition Policy 143 Consultants 144 Disclosure of Major Contracts Compliance 144 Whole-of-government Reporting Framework: 145 Aboriginal Affairs 145 Multicultural Affairs 147 Women’s Affairs 151 Youth Affairs 153 Whistleblowers Legislation – DOI Response 156 Other Available Information 156 Building Act Compliance 157 Compliance Index 158

annual report 2002–03 vii CONTENTS

Statutory Authorities 161 Docklands Authority 162 Hastings Port (Holding) Corporation 163 Melbourne Port Corporation 163 National Electricity Market Management Company 164 National Electricity Code Administrator 164 Office of the Chief Electrical Inspector 164 Office of Gas Safety 164 Public Transport Corporation 165 Public Transport Ticketing Body 165 Roads Corporation of Victoria (VicRoads) 165 Spencer Street Station Authority 166 Urban and Regional Land Corporation 167 Victorian Channels Authority 167 Victorian Energy Networks Corporation (VENCorp) 168 Victorian Rail Corporation (VicTrack) 169 Other Bodies and Committees 169 Whistleblowers Protection Policy 170 Departmental Contact Details 180

Abbreviations

AAV Aboriginal Affairs Victoria ESD environmentally sustainable development OH&S Occupational Health and Safety ACCC Australian Competition and GDAA Game Developers Association POMC Port of Melbourne Corporation Consumer Council of Australia PSC Public Sector Comparator AHC Aboriginal Heritage Council GDP Gross Domestic Product PTC Public Transport Corporation AR/M Austin Health Redevelopment and Mercy GIS Geographic Information Systems PTIO Public Transport Industry Ombudsman Hospital for Women Relocation GT gross tonnage PTTB Public Transport Ticketing Body AT automated ticketing HP(H)C Hastings Port (Holding) Corporation RAS Royal Agricultural Society ATS Automated Ticketing System ICT Information and Communication Technology SPP Special Power Payment CAN Customer Access Network Demonstrations LPG liquid petroleum gas TEU twenty-foot equivalent unit Program MHW Mercy Hospital for Women TPAMS Telecommunications Purchasing CCTV closed-circuit television MIL Multilingual Information Line and Management Strategy CIO Chief Information Officer MMV Multimedia Victoria UK United Kingdom COAG Council of Australian Governments MPC Melbourne Port Corporation URLC Urban and Regional Land Corporation CTO Chief Technology Officer MPTP Multi Purpose Taxi Program USA United States of America DHS Department of Human Services MPV Major Projects Victoria VCA Victorian Channels Authority DIIRD Department of Industry, Innovation and MSV Marine Safety Victoria VCAT Victorian Civil and Administrative Tribunal Regional Development NAIDOC National Aboriginal Islander VENCorp Victorian Energy Networks Corporation DNRE Department of Natural Resources Day Observance Committee VicPlan Victorian Pollution Contingency Plan and Environment NECA National Electricity Code Administrator VicRoads Roads Corporation of Victoria DOI Department of Infrastructure NEGA National Express Group Australia VicTrack Victirian Rail Track Corporation DPI Department of Primary Industries NEM National Energy Market VicUrban Victorian Urban Development Authority DSE Department of Sustainability and NEMMCO National Electricity Market Management VITS Victorian Interpreting and Environment Company Translation Services DTF Department of Treasury and Finance NGV National Gallery of Australia VPS Victorian Public Service DVC Department for Victorian Communities NTR Network Tariff Rebate YES Youth Employment Scheme EEO Equal Employment Opportunity OCEI Office of Chief Electrical Inspector ESC Essential Services Commission OGS Office of Gas Safety

viii Department of Infrastructure INFRASTRUCTURE PORTFOLIOS

• National Gallery of Victoria • lower greenhouse emissions from redevelopment energy supply and use over time. •Victorian State Library refurbishment Statutory authorities • Commonwealth Games Athletes Village •Office of Chief Electrical Inspector • Melbourne Sports and Aquatic •Office of Gas Safety Centre redevelopment •Victorian Energy Networks • Australian Synchrotron Corporation • Austin Hospital redevelopment • National Electricity Code • Royal Melbourne Showgrounds Administrator The Hon. Peter Batchelor MP redevelopment • National Electricity Market Minister for Transport and Minister for Management Company. Major Projects (Coordinating Minister) • Soil Recycling Siting Project. Transport portfolio Statutory authorities Incorporating public transport and roads, • Roads Corporation of Victoria the Transport portfolio deals with: (VicRoads) •road system development and • Public Transport Corporation maintenance • Public Transport Ticketing Body • transport policy and planning (Transport Ticketing Authority) • rail and road freight and logistics •Victorian Rail Track Corporation • contract and lease arrangements (VicTrack) for train, tram, route bus, school bus • Spencer Street Station Authority and ferry services and infrastructure • Docklands Authority The Hon. Marsha Thomson MLC • Urban and Regional Land Corporation •regulation of taxi, hire car, accident Minister for Information and towing and driving instruction •Melbourne Port Corporation Communication Technology industries •Victorian Channels Authority •regulation of public transport • Hastings Port (Holding) Corporation. Information and Communication and road safety Technology (ICT) portfolio • accessible transport services The Information and Communication and facilities Technology (ICT) portfolio includes • traffic system management responsibility for: • driver licensing and vehicle • developing strategies to grow registration the ICT sector in Victoria • management of the Government's • improving ICT infrastructure City Link contract and access • management of large and complex • encouraging uptake of ICT transport infrastructure projects crucial by Victorian businesses to State development (for example, • ensuring Victorians have the Mitcham–Frankston Freeway, Spencer The Hon. Theo Theophanous MLC skills required by the ICT industry Street Station redevelopment). Minister for Energy Industries •providing Internet training and The Transport portfolio also includes the and Resources access to the Victorian community following responsibilities, which were Energy Industries portfolio • whole-of-government purchasing formerly part of the Ports portfolio: arrangements for telecommunications • development, planning and policy The Energy portfolio is responsible for services for Victoria's ports ensuring the delivery of secure, affordable • using ICT to transform the way •freight and logistics planning and safe energy to Victorian consumers and government delivers its services. businesses, and ensuring that the supply and infrastructure and use of energy is increasingly sustainable. • marine safety and environment • sea passenger infrastructure DOI is continuing to develop energy markets •cruise shipping and regulatory arrangements that deliver: • management of Port Phillip • competitive prices and service levels Bay shipping channels. for households and businesses Major Projects portfolio • an effective safety net for consumers in the transition to competition The Major Projects portfolio manages and • timely investment in new energy facilitates key strategic development and supplies construction projects which enhance the • increasingly reliable energy networks Carlo Carli MP economic and cultural infrastructure of the •safety in the production, transport Parliamentary Secretary, Infrastructure State. Key major projects currently underway and use of energy in Victoria include: • the more efficient use of energy, and

annual report 2002–03 1 ORGANISATIONAL CHART – 30 JUNE 2003 MP Secretary Secretary Parliamentary Mr Carlo Carli for Infrastructure for Infrastructure Office of the Office MelbourneDirector City Link Capital Alf Smith ictoria Deputy Secretary - Deputy Secretary Major Projects V James Cain BODIES STATUTORY Docklands Authority Station Spencer Street Authority Urban and Regional Land Corporation National Gallery of Victoria Redevelopment Commonwealth Games Village Australian Synchrotron West Flinders Street Redevelopment (Former Fish Markets) Melbourne Sports and Stage II Aquatic Centre Redevelopment Showgrounds Austin Hospital Siting Waste Hazardous Infrastructure Projects Gail Moody Country Passenger Rail Projects Craigieburn Bypass Ararat/Bairnsdale Extension Knox Tram Projects Other Infrastructure MP ransport Batchelor T Minister for Major Projects The Hon. Peter and Minister for Project GovernanceProject and Review CEO David Anderson Public Transport Safety Public Transport Colin Andrews, Graham Edkins Colin Andrews, Roads Corporation of Victoria (VicRoads) (from Sept.(from 2003) ictorian Channels Port Reform Ports Intermodal and Logistics Rail Freight Marine Safety Victoria BODIES STATUTORY Melbourne Port Corporation V Authority Hastings Port (Holding) Corporation Freight, Logistics Freight, and Marine John Rogan ictorian Rail Track Commercial Policy Commercial Business Support Franchise Relationships Business Development and Asset Infrastructure Management Bus and Regional Rail Information Systems and Analysis V Corporation (VicTrack) Ticketing Public Transport Ticketing Body (Transport Authority) Public Transport Corporation Public Transport Public Transport Peter Harris BODIES STATUTORY Planning Subcommittee Corporate Resources Bob McDonald Budget Management and Financial Analysis Human Resource Management Corporate Public Affairs Contract Services and Risk Management Executive and Legal Services Corporate IT Services Corporate Systems and Financial Operations and Commercial Property Development DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Policy Subcommittee ransport Policy Planning and Policy Jim Stevenson Integrated Transport Planning Economics and Infrastructure T Corporate Planning and Performance MANAGEMENT COMMITTEE SECRETARY Ronaldson Howard Capital Subcommittee MLC Thomson echnology T Minister for Communication Information and The Hon. Marsha Multimedia Victoria Randall Straw ICT Industry Development Policy and Regional Access eBusiness and Community eGovernment Networks Communications eGovernment Strategy and Policy MLC Resources Theophanous Industries and The Hon. Theo Finance Subcommittee ictorian Energy Networks Minister for Energy Corporation National Electricity Market Management Company National Electricity Code Administrator of Gas Safety Office of Chief Electrical Office Inspector Energy and Security Bolt Richard Retail Markets Wholesale Markets Legal and Legislation Supply Security Policy Projects Security and Emergency Management Co-ordination BODIES STATUTORY V 2 DOI’S MANAGEMENT COMMITTEE

Howard Ronaldson City Link Authority and Deputy Executive the development of cost benchmarks Director of the Franchise Review Taskforce. and service incentives for the Electricity Secretary Prior to his work on the City Link project, Alf Distribution Price Review. He also Howard was appointed as the Secretary spent 12 years working in a range of policy oversaw the Commission’s contribution of the DOI in December 2002. areas in various government departments, to the introduction of electricity full He brings vast experience in negotiating including the Department of Premier and retail competition, and its licensing complex commercial arrangements between Cabinet. Alf also has many years experience and access regimes. in teaching and research at the University of the private sector and government and James Cain providing expert strategic policy advice. Melbourne, including economic modelling and forecasting. Executive Director, Howard has held senior positions advising Major Projects Victoria on key infrastructure and financial issues and Alf holds the following qualifications: B.Com. as chief executive of major government (Hons), University of Melbourne, Dip. Ed., James was appointed to the position of functions. His early career included a senior University of Melbourne, M.A. (Econ.) Executive Director, Major Projects Victoria in position in a private company. After joining (Hons.), University of Melbourne, and Ph.D., August 2001. Major Projects Victoria manages the Victorian Government, he held senior University of Southampton. large and complex building/development projects crucial to State development and positions in the DIIRD, Department Richard Bolt of Premier and Cabinet and became the nominated by the Premier. It also undertakes Director of Gaming, the Director of Crown Executive Director, project concept development implementation Lands and the Director of Housing, and was Energy and Security and delivery for the Victorian Government. the Chief Operating Officer of DOI from May Richard has been the Victorian Government’s Key projects in which MPV is currently till December 2002. Prior to this appointment principal adviser on energy policy since 2001, involved include: he was the Chief Executive and Under and has been the Executive Director of the • National Gallery of Victoria Treasurer of the Department of Treasury, ACT. Energy and Security Division of DOI since the • Commonwealth Games Village machinery-of-government changes in Howard holds the following qualifications: • Australian Synchrotron Facility December 2002. His responsibilities include B.Ec., Grad. Dip. Accounting and Finance, •Yarra Arts Precinct advising the Minister for Energy Industries Monash University, and MBA, from the • Beacon Cove Development and Resources on the development of energy University of Melbourne. • Royal Melbourne Showgrounds markets and longer-term energy policy. Alf Smith Redevelopment Richard was appointed as an electrical •Melbourne Sports and Aquatic Centre Deputy Secretary – Capital engineer with the State Electricity Commission Prior to his appointment to MPV, James of Victoria following undergraduate Alf has been acting in the position of worked in the private sector for more than traineeships with BHP and Mitsubishi in South Deputy Secretary – Capital since November ten years with Lend Lease Corporation, in a 1 Australia. He later became a researcher and 2002 . He has direct line responsibility for range of roles. In 1998 he was appointed adviser to various Australian Democrat leaders all capital projects being developed or General Manager of Bovis Lend Lease for in the Senate, covering at different times the under construction within DOI. This involves Victoria, South Australia and Tasmania. portfolios of defence, foreign affairs, energy overseeing and coordinating the James has a broad experience and resources, environment, communications development of new projects, including in the property, project design, and and industrial relations. chairing DOI’s Project Review Committee, construction fields in a range of sectors and monitoring the progress Richard joined Victoria’s Office of the including government, commercial, retail, of projects during delivery, including Regulator-General, now the Essential health and industrial. chairing the Capital Subcommittee. Services Commission, in 1995, and was James holds the following qualifications: Alf also has responsibility for overseeing the Director of Electricity Regulation B.A. Building, (Melbourne), MBA (Australian the development of the Southern and before being appointed to his present role. Graduate School of Management). Eastern Integrated Transport Authority While at the Office of the Regulator-General, (Mitcham–Frankston Freeway). he established service standards and Alf has extensive experience working with performance monitoring regimes for DOI, having previously held the positions of the electricity and metropolitan water Chief Executive Officer of the Melbourne distributors and retailers, and managed

1. Alf was formally appointed as Deputy Secretary - Capital in September 2003 annual report 2002–03 3 DOI’S MANAGEMENT COMMITTEE

Peter Harris Bob McDonald Gail Moody Executive Director, Executive Director, Executive Director, Public Transport Corporate Resources and Infrastructure Projects Division Peter was appointed Director of Public Chief Finance Officer Gail has been the Executive Director of Transport in November 2002 and leads Bob was appointed to the role of Executive the Infrastructure Projects Division since the Public Transport Division (PTD) which is Director Corporate Resources following the September 2001. This Division was the Government appointed custodian of amalgamation of the Organisation established to ensure the effective delivery Victoria’s public transport system. On behalf Development and Corporate Finance of all priority infrastructure projects, of the State and the community, Peter and Divisions subsequent to the machinery-of- and has responsibility for Regional Fast Rail, his team are responsible for the efficient government changes in December 2002. the Airport Transit Service, Rail Gauge management of contracts for the provision Bob is also DOI’s Chief Finance Officer, a Standardisation, Wodonga Rail Bypass, of safe, reliable and effective public position he has held since April 1997. Country Rail Passenger Services, transport services throughout Victoria. Craigieburn Rail Electrification and Vermont The Corporate Resources Division brings South Tram Extension. Under Peter’s direction the PTD’s current together of all the major corporate services challenges are to: functions in a single Division. The structure Prior to joining the Department, Gail held is one which: senior positions in public transport where • develop and pursue policies and she was responsible for the delivery of initiatives to encourage a substantial • improves our capabilities by building major projects. and sustained shift in transport usage on natural synergies and linked in Victoria from private cars to public functions Gail holds a Bachelor of Civil Engineering transport • supports the development of and Master of Engineering Science •create and support the structure for integrated technology applications (Transport Planning) and is a Fellow the new public transport ticketing across Corporate Resources functions of IE Aust. system, the Transport Ticketing for improved service delivery Authority •provides clarity of structure for John Rogan •protect the long term condition and our clients Executive Director, Freight, integrity of the assets that make up •provides a view across the whole Logistics and Marine the public transport system; and of DOI John took up the position of Executive • secure the best possible consumer • supports potential for shared services Director of the Freight, Logistics and Marine benefit for the Government’s funds arrangements with other departments Division in September 2003.2 John has held allocated to public transport. and agencies. senior executive roles in the public sector Peter brings a wealth of experience to the Bob’s key areas of responsibility include for 15 years, in a range of Departments position from the public and private sector, DOI’s budgeting and ERC processes, including Treasury, Attorney-General’s, having held senior management and financial management and analysis, human Planning and Development, Arts, Sport and advisory positions in interstate rail and road resources, communications and public Tourism, and Infrastructure in Victoria, and transport; airports and aviation. He has affairs, contract services and risk Transport in New South Wales. played an important role in the micro- management, information technology Over the past 12 months the Freight, economic reforms delivered in the services, executive and legal services, Logistics and Marine Division (formerly Ports communications, waterfront and land corporate systems and processes including and Marine) has been expanded and transport sectors. Peter was also a member DOI’s web environments, knowledge and refocused to achieve the key government of the Prime Minister’s personal staff information management and DOI’s and departmental outcome of delivering a between 1989 and 1991 where he held the property management responsibilities. seamless freight and logistics system for position of Senior Private Secretary to the He is a graduate of Monash University with a Victoria. Freight and logistics is the State's Prime Minister. Bachelor of Economics degree, and is a second largest industry sector, and accounts Peter holds a Bachelor of Economics from Fellow of the Australian Society of Certified for around 13 per cent of Victoria's Gross the University of Queensland. Practising Accountants.

2. Following the resignation of Des Powell as Executive Director - Freight, Logistics and Marine, at the end of May 2003, Lea Corbett (a senior executive of the Division) was Acting Executive Director in June–July 2003. John Hartigan, DOI’s Director of Corporate Planning and Performance, was Acting Executive Director in August 2003.

4 Department of Infrastructure State Product. The Division is responsible for • development of performance • working with education and training developing strategies and implementing measures for the portfolio’s programs providers and industry to build the policies and projects for Victoria’s freight, and services and evaluation of policy state's ICT skills base logistics, ports and maritime sectors and for options (eg TravelSmart, regional • increasing community uptake the effective management of marine safety mobility, parking practice). of the Internet and environment protection. The newly •promoting the uptake of e-commerce Jim has worked in senior planning roles for structured Division has assumed by Victorian companies DOI and VicRoads for the past two years. responsibility for rail freight and intermodal •establishing a regulatory framework He has wide experience in the policy, and for the achievement of the that provides certainty and confidence professional/technical fields of transport Government’s 30 per cent rail mode share for the use of new technologies planning, including specialist experience in target for all port related freight. • negotiating whole-of-government key aspects of modal integration for freight, purchasing for telecommunications John holds degrees in Arts, Law (Honours) public transport, roads and traffic services; and and Commerce from the University of management, and in using this analysis to • delivering strategic whole-of- Melbourne, and a Masters in Public influence policy priorities. He has held government ICT projects. Administration from Harvard University. senior management positions within all three spheres of government, with a Prior to June 2001, Randall was the Director Jim Stevenson particularly strong emphasis on Transport of Government Online and Community Executive Director, and Local Government. Previous positions Development in MMV and oversaw Victoria’s Planning and Policy include CEO of the National Road Transport Government Online and digital divide Commission, and CEO of Cardinia Shire. strategies and programs. He has over Jim has been acting in the position of 20 years experience in the Victorian public Executive Director Planning and Policy since Jim holds a Bachelor of Civil Engineering sector, principally in systems and information January 2003.3 This Division (formerly and a Master of Engineering Science (Traffic management planning roles. He has worked Strategic Planning) is responsible for and Transportation) from the University of in the portfolios of Public Works, Education, integrated strategic planning and policy for New South Wales. Attorney-General’s, Treasury and Finance, infrastructure and transport services, energy Randall Straw Premier and Cabinet, and State and and communications. In addition to its Regional Development. specific operational responsibilities, the Executive Director, Division has a central role in facilitating inter- Multimedia Victoria agency cooperation in strategic planning Randall was appointed Executive Director, and maintains close links with a range of Multimedia Victoria in June 2001. agencies including VicRoads. Following machinery-of-government Priorities that the Planning and Policy changes in December 2002 MMV moved Division currently oversees include: from DIIRD to DOI. On behalf of MMV, Randall is responsible for implementing • the portfolio’s contributions to the the Government’s information and Government’s Melbourne 2030 communication technology policy strategy Connecting Victoria, which aims to bring • confirmation of the portfolio’s major the benefits of technology to all Victorians. infrastructure investment priorities • links with the Commonwealth and MMV's core responsibilities include: local government (eg on AusLink) •growing the information and • the conduct of regional integrated communications technology (ICT) plans, including modelling/forecasting industry in Victoria of future demands and infrastructure • attracting new ICT investments priorities to Victoria

3. Jim was formally appointed as Executive Director - Planning and Policy in July 2003.

annual report 2002–03 5 Chief Finance Officer’s Executive Analysis

The Department has been restructured The output performance table reflects the as a result of machinery-of-government activities of DOI ‘pre’ and ‘post’ machinery- changes. The move of the Planning, of-government changes for the relevant part Heritage and Building Division to the of the financial year as referred to above. Department of Sustainability and The Statement of Financial Performance Environment (DSE) and the Local includes revenue received by the Government Division to the Department Department as payment for outputs for Victorian Communities (DVC) had a delivered in accordance with agreed relatively minor impact on the financial output targets. structure of the Department. Any impact was also largely offset by the movement DOI has in this respect: of Multimedia Victoria from the Department • Delivered most of its agreed outputs; of Industry, Innovation and Regional and Development (DIIRD) and the Energy Policy • Managed throughout the year within Division from the former Department of its available resource limits. Natural Resources and Environment (DNRE) The Financial Statements presented later in to DOI. Transfers of assets and liabilities this report are prepared in accordance with between the Departments were effected the applicable accounting standards and from 1 January 2003. the Financial Management Act 1994. DOI’s financial statements reflect an operating deficit of $43.7 million which arises mainly from the write off of City Link DOI output performance assets previously recorded as an asset of the

Department. These assets included items Infrastrucutre Balanced Planning & Planning & Policy Environmental Systems described as “Stateworks” such as 0.6% 0.7% landscaping, noisewalls, some exit ramps, Supporting Local Government as well as a number of bridges. In addition 0.9% land that has been leased to Transurban ICT & Multimedia Ports & Intermodal but is now classified as land under road has 0.5% Gateways 1.5% been prescribed a nil value in accordance Transport Safety Regional & Rural with current accounting standards. & Accessibility Transport Services 8.5% 11.0% Discussions are being held with the Metro Transport Regional & Rural Department of Treasury and Finance, Infrastructure Transport Infrastructure the Auditor-General, other States and 23.3% 10.6% the Accounting profession regarding the recognition of the State’s right to receive the Metro Transport Services City Link assets at the end of the concession 42.4% period. It is anticipated that this issue will be resolved prior to 30 June 2004 and an appropriate inclusion will be made for the 2003-04 financial statements.

6 Department of Infrastructure Outcome 1 Public Safety and Security

Improve safety in the road, public transport, marine and energy sectors; reduce the incidence, severity and cost of accidents; and maintain the security of public infrastructure.

annual report 2002–03 7 Public Safety and Security

The broad objectives of this outcome are to: DOI initiatives to support the Public Safety KEY ACHIEVEMENTS outcome also support the Government’s • improve safety on Victoria’s roads Growing Victoria Together commitments and public transport arrive alive! implementation to safe streets, homes and workplaces, • enhance marine safety and the Victorian road toll growing and linking all of Victoria, building • continue to build on Victoria’s already A significant reduction in the State’s road cohesive communities and reducing impressive energy safety record toll has been achieved since the inequalities, and protecting the environment •effectively manage the security risks introduction of campaigns funded under for future generations. in relation to critical infrastructure. the arrive alive! road safety strategy. The Outlined below are some of the highlights A range of strategies and actions have strategy was launched in November 2001 of initiatives developed and implemented been implemented throughout 2002–03 and will run to 2007. It aims to reduce the in 2002-03. Further details relating to achieve these aims. One of particular road toll by addressing key challenges such to specific projects can be found at importance is the Government’s arrive alive! as speed, drink driving and roadside safety. the web address: 2002–2007: Victoria’s Road Safety Strategy, Activities in 2002–03 included: www.doi.vic.gov.au/publictransportsafety which aims to reduce annual death and • implementing a comprehensive serious injury arising from crashes on speed management strategy for Victoria’s roads by 20 per cent by 2007. the metropolitan area • introducing responsible driving legislation with higher penalties for speeding, drink driving and using hand-held mobile phones • piloting permanent 50 km/h speed zones in regional town centres and outer metropolitan townships with high pedestrian activity.

At the end of the first full calendar year of arrive alive! Victoria’s road toll had fallen to 397 (at 31 December 2002), compared to 444 deaths for the 2001 calendar year. This fall was driven by a 25 per cent reduction in road deaths in metropolitan Melbourne, which fell by 61 to 186 fatalities in 2002 – the lowest metropolitan road toll in 50 years.

Minister for Transport, Peter Batchelor receiving his boat operator licence.

8 Department of Infrastructure However, while the metropolitan road toll was brought to an historic low, the road toll in country Victoria grew by 14 in 2002 compared to 2001. A number of additional arrive alive! initiatives will be introduced in 2003–04 in an attempt to stop this concerning trend.

In the first half of 2003 (to 30 June) there were 82 road deaths in the metropolitan area and 105 in the rest of Victoria – a total of 187. There were five fewer fatalities in arrive alive! Station improvements rural Victoria in the first half of 2003 than Alcohol Interlock program in the same period in 2002, and a total Sixty-five of Melbourne’s suburban rail of 29 fewer for the State as a whole. Complex preparatory arrangements were stations have now been upgraded to carried out during 2002–03 to implement Premium Station status. These stations Statewide Accident the Victorian Alcohol Interlock program, provide an increased level of comfort and Blackspot program which came into force in May. The program safety for passengers, with the provision Over 1100 projects have been funded is targeted at certain high-risk drink drivers, of closed-circuit television (CCTV) on the under the $240 million Accident Blackspot to ensure that they do not re-offend. An station, platforms and car park entrances, program since it began in 2000, and the interlock system is fitted to the user’s ignition staffing from first to last train seven days program is now fully allocated. Half of the system, and requires a zero blood alcohol a week, improved passenger waiting total available funds have been allocated reading before the ignition can be switched facilities, and ticket sales and information to projects in rural and regional Victoria. on. The program operates on a user-pays points. Works have commenced to upgrade Of the projects funded, 1,040 were system in which the users lease the interlocks Narre Warren Station to a Premium Station, completed by 30 June 2003, with 540 from a VicRoads-approved supplier. and will be completed in late 2003. of those undertaken during 2002–03. Roving Conductors Safe Travel Taskforce The Monash University Accident Research and Safety Officers The Safe Travel Taskforce (established in Centre carried out an initial evaluation of Another three-year program was negotiated 2000 to provide advice to the Minister) the program based on 198 Blackspot with public transport franchisees to retain continues to review safety issues, identify projects completed to the end of 2001. the 100 Roving Safety Officers who travel strategies to improve the safety and security The results show that casualty crashes have on after-dark suburban trains, and the 100 of public transport users, and coordinate been reduced on average by 17.5 per cent Roving Conductors who travel on the tram the implementation of these strategies at treated sites. The evaluation showed network. These positions were introduced across the transport system. In 2002–03 that the program delivers an overall in 2000 for an initial period of three years the Taskforce undertook a graffiti audit benefit:cost ratio of 4.2. A comprehensive to provide a high level of customer in conjunction with Crime Prevention evaluation study will be commissioned assistance and improved safety for Victoria, and a program of graffiti and at the end of the program. passengers. The extension will guarantee vandalism information-sharing with the the presence of the 200 officers until Magistrates Court was established across at least 30 June 2006. the metropolitan area. A graffiti reduction trial will be implemented on a selected rail corridor in early 2004.

annual report 2002–03 9 Public Safety and Security

Rural School Bus Safety program

2002–03 was the fourth year of the five-year $10 million Rural School Bus Safety Program, through which $2 million has been expended and 16 school bus interchange upgrades completed. Included in the annual expenditure was $650,000 for the treatment of 222 bus stops under the associated Bus Stop Audit Program. At the end of the program, 126 schools will have had the safety and amenity of their bus interchanges improved and more than 500 bus stops will have been upgraded under the associated Bus Stop Audit Program.

Security cameras in taxis

Since November 2002, cameras have been operating in all Melbourne metropolitan and outer suburban taxis Wheelchair safety at railway Rail system safety and in Geelong. Cameras are progressively pedestrian crossings being installed in regional Victorian taxis, The Government is committed to providing although taxis operating in remote areas, The Minister for Transport established the the highest standards of safety possible in rail where servicing, downloading or resetting Wheelchair Safety at Rail Level Crossings and bus services and, in 2002–03, established of cameras is not feasible, are exempt. Taskforce early in 2002 to examine safety an independent safety regulator – the Public All new taxis have cameras installed before issues faced by people with disabilities Transport Safety group – to regulate public they begin operation. at pedestrian railway level crossings. transport safety. A co-regulatory approach to safety has been adopted with industry, to A report of the Taskforce’s deliberations, Port security assess risks and establish safety management including 25 recommendations, was publicly As a result of the acts of terrorism in New systems to control risks. To increase released in April 2002. The recommendations York and Washington DC on 11 September accountability, the public transport safety included the development of national 2001, and a proposal put by the United function is now independent of public standards for the design, engineering and States of America in December 2002, transport franchise management. maintenance of crossings, including a review the International Maritime Organisation and clarification of franchisee arrangements The Government has implemented approved new preventative anti-terrorist regarding maintenance. At the end of a significant number of reforms to rail security measures that apply to international 2002–03, a total of 21 of the operations that will reduce the risk of ships and the port facilities servicing those recommendations had been implemented rail incidents. More than 100 safety actions ships. Australia is bound by its international with the remaining four recommendations have been implemented addressing issues obligations to adopt the new measures, awaiting a consultant’s report and the outcome as wide ranging as the improvement of which will be outlined in an International of inquiries into the two fatal wheelchair education and awareness programs for Ship and Port Facility Security Code. accidents at Nunawading in October 2001 staff, the review of signal systems, the Key features of the new security measures and Noble Park in December 2001. upgrading of driver communications, are the development and implementation further development of driver skills and of Ship Security Plans and Port Facility competencies and enhanced maintenance Security Plans. In Victoria, the Port Facility practices. The Australian Transport Safety Security Plans will cover the commercial Bureau is currently undertaking investigations ports of Melbourne, Geelong, Hastings into recent rail safety incidents and these recommendations will be reviewed and implemented where appropriate.

10 Department of Infrastructure and Portland. Through the Australian Boating Safety Funding program conducted by MSV personnel and local Maritime Group, Victoria is working with waterway authorities at more than 300 boat In 2002–03 the Government allocated the Commonwealth, other States, ship ramps across the State. Each boater who $3 million to the Boating Safety Funding owners and port authorities to implement participated in the program received a program. The program funded a range the new measures. report on the adequacy, condition and of Statewide safety initiatives and handling of their on-board safety equipment. Security in the ports of Geelong, Hastings 85 community groups and waterway and Portland has been reviewed ahead authorities to pursue recreational boating Vessel survey achievements of the introduction of the new international safety initiatives in areas such as education MSV continued to improve the delivery of measures. Formal security risk assessments and training, navigational aids and safety survey services to the owners of domestic have begun, or are about to begin, in the signage, and the provision of search-and- commercial vessels during 2002–03. four commercial ports as a prerequisite rescue vessels for volunteer search and All commercial vessels are now surveyed for the development of port facility and rescue organisations. The program is annually, improving public and workplace port security plans. To meet Australia’s funded from boat operator licensing safety in the commercial marine international obligations, these plans fees, which are being reinvested into environment. Compliance of commercial will need to be approved by the the boating community. Commonwealth by the end of 2003 vessels with statutory requirements has and in place by 1 July 2004. Boat Safety Equipment also been greatly improved by vessel Audit program surveys being undertaken prior to the Recreational boat expiration of certificates of survey, providing Marine Safety Victoria (MSV) conducted operator licensing sufficient time for deficiencies to be audits of the safety equipment carried by corrected prior to renewal of a certificate. Following a successful two-year program more than 4,000 recreational boat owners to introduce recreational boat operator for the first time in the summer of 2002–03. licensing in the State, from 1 February 2003 Boat safety equipment checks were all operators of powered recreational vessels in Victoria must be licensed. Licensing ensures that boat operators have a basic knowledge of waterway rules.

Compliance to date has been extremely high. As at 30 June 2003, more than 100,000 Victorian boat operator licences have been issued, in addition to the 60,000 interstate licences currently held by Victorians.

Funding programs Boating Facilities program In 2002–03, the Government provided $1 million to upgrade recreational boating facilities in Victoria through the Boating Facilities program. The 32 grants awarded in 2002–03 were funded through recreational vessel registration fees, and have been used to upgrade, construct and replace public boat ramps, jetties and other boating facilities, providing a direct benefit to users, improving access in areas of high demand, and providing safer and more efficient access.

annual report 2002–03 11 Public Safety and Security

National transport security

During 2002–03 DOI made significant contributions to national initiatives in transport security through its contribution to intergovernmental policy processes under the Australian Transport Council. DOI particularly contributed to the development of a national transport security strategy, guidelines for transport security measures, and the implementation of the International Ship and Port Facility Security Code.

Protecting critical infrastructure

In 2002–03, DOI worked with Victoria Police and government departments to develop and implement a risk-based approach to protecting critical infrastructure throughout the State. This work will be completed in 2003–04, and will allow government to identify critical infrastructure in the energy Marine oil pollution response Australian Builders Plate and transport sectors and recommend – a national initiative strategies to improve the management MSV manages the Victorian Pollution of security risks. Contingency Plan (VicPlan), which outlines In conjunction with the National Marine measures that need to be taken by Safety Committee, the Victorian Energy safety participating agencies in the event of a Government has taken a leading role in marine pollution incident in Victorian waters. the development of the national standard DOI continued to advise government on VicPlan is integrated with the National Plan Australian Builders Plate. The Australian the framework for regulating the safety of to Combat Pollution of the Sea by Oil and Builders Plate is a key national marine safety electricity and gas production, distribution other Noxious and Hazardous Substances, initiative for recreational boating, providing and use, which is undertaken by the which is underpinned by an a guide for recreational boaters on the Office of the Chief Electrical Inspector intergovernmental agreement. conditions to which their boat is suited, and the Office of Gas Safety. how many people it can safely hold, and Significant oil spills that have required its buoyancy performance. a coordinated response from MSV this financial year include: Most new motor-powered recreational boats built from 1 July 2005 will be required to • September 2002 – Maribyrnong River have the new plate affixed, helping buyers to • February 2003 – Woolamai Beach make an educated decision when purchasing • March 2003 – Mentone Beach. a boat. The Australian Builders Plate was There were 76 marine pollution incidents approved by all Transport Ministers at the reported to MSV during the year, all of which Australian Transport Council in May 2003. were managed in accordance with VicPlan.

12 Department of Infrastructure Outcome 2 Infrastructure Delivery and Management

Deliver cost-effective investment in, and management of, public infrastructure and major government projects in Victoria.

annual report 2002–03 13 Infrastructure Delivery and Management

DOI and its agencies manage transport Under the Government’s Partnerships KEY ACHIEVEMENTS and other infrastructure projects with a Victoria policy, DOI looks to the private combined total estimated investment of sector for the provision of infrastructure Federation Square $16.3 billion, including projects worth where it will deliver value for money and Federation Square opened in late October $3.1 billion for other government agencies. better outcomes than traditional public- 2002. Since opening, it has become A priority for DOI is to deliver these sector investment. Part of any public private Melbourne's top attraction. Federation projects on time, on budget and within partnership is effective management of risk Square attracted 3.1 million visitors in its first agreed scope and quality. by government. Management of six months. During the same period, the Ian Partnerships Victoria projects requires DOI to The Victorian Government’s focus is on Potter Centre – National Gallery of Victoria identify and profile risks, and allocate these economic and social infrastructure. DOI is Australia attracted 1.12 million visitors; the risks appropriately as part of the contract committed to the advancement, through Australian Centre for the Moving Image, arrangements. DOI is enhancing its project the Infrastructure Delivery and Management which aimed for 800,000 visitors in its first planning and management skills, in order to outcome and the Major Projects portfolio, year, attracted more than 700,000 people; ensure best value outcomes for the State. of strategic infrastructure which can attract and 430,000 people used the new and deliver economic and social development DOI infrastructure delivery and management Melbourne Visitor Centre. For further and investment. initiatives contribute to the Government’s information see www.fedsq.com.au Growing Victoria Together priorities. In Major Projects Victoria (MPV) manages and particular, contributions are made to sound State Library of Victoria facilitates key strategic development and financial management, more jobs and construction projects that enhance the The State Library of Victoria is one of the thriving, innovative industries across Victoria, economic and cultural infrastructure of the world's 1,000 most significant buildings of and building cohesive communities and State. MPV provides advice on property the twentieth century. The staged reducing inequalities. development and construction related restoration program balances the need for issues to the Minister for Major Projects and Key achievements in the Infrastructure preserving the heritage building with agencies across government. Consultancy Delivery and Management outcome group, developing significant features for future advice and project management are also including the Major Projects portfolio, in generations. Managed by MPV, this project provided to other areas of the Victorian 2002-03 are outlined below. Further details is funded by Arts Victoria. Government on a cost-recovery basis. relating to MPV projects can be found at the The Domed Reading Room was handed MPV website www.majorprojects.vic.gov.au, back to the State Library in May 2003. and at the website addresses listed beside Works have continued through the year to specific projects. reinstate areas of the site that had been temporarily occupied by the National Gallery of Victoria (NGV), and contract documentation for the next stage, which will include the renovation of Queens Hall, has also begun. For further information see www.slv.vic.gov.au

14 Department of Infrastructure Docklands Studios progressively handed back to the NGV in Australian Synchrotron preparation for an opening date late in 2003. The Department of Industry, Innovation and At a January 2003 workshop for potential For further information see www.ngv.vic.gov.au Regional Development (DIIRD) is MPV’s client users of the Australian Synchrotron, the agency for this project. MPV is responsible Austin Health Redevelopment Government announced a bigger, brighter, for overseeing the studio project’s site and Mercy Hospital for Women better design which will generate light development and construction activities. Relocation (AR/M Project) almost twice as bright as the previous The project is being delivered in accordance proposal and provide capacity for more Victoria's largest joint hospital development, with Partnerships Victoria guidelines by the than 30 beamlines. the AR/M is one of the State’s most developer, Central City Studios, and is significant major projects currently under way. The first phase of community consultation expected to generate an extra $100 million in It will transform the current Austin Health was successfully completed in 2002–03, and film production annually. Construction of the facilities and relocate the Mercy Hospital a core team of international and Australian core studio development began in November for Women from East Melbourne to the technical experts was recruited by Major 2002 and is planned for completion in March Heidelberg site, providing public specialist Projects Victoria to oversee delivery of the 2004. Construction is progressing well, and general obstetric and gynaecology project. Preliminary testing at the Monash with the first contractual milestones for services to Melbourne's north-east. University site was completed, and tenders the development being met. to design and construct the synchrotron The Heads of Agreement for the project was The Government has committed $40 million building were called and shortlisted. The start executed in August, and the main contract for the necessary land purchases and for of construction works is planned for 2003. in September 2002. Planning and design the core studio development. The associated works continued throughout 2002–03. The Expressions of interest in supplying the commercial cluster is to be delivered by Austin and Mercy Hospital towers are injection system – the electron accelerator the developer in stages over the period to expected to be completed by early 2005, and other components at the heart of September 2008. The Studios and associated with full project completion expected by the machine – have also been sought. commercial cluster will provide an important early 2006. The facility is expected to create 2500 focus for the State’s vibrant film and direct and indirect jobs and add $65 million television industry. The co-located hospitals will provide more a year to the Victorian economy, as well as than 500 adult beds, a new emergency further enhancing Victoria’s reputation as National Gallery of Victoria department and intensive care and critical a centre for scientific research. For further redevelopment care units. Additional and refurbished information see www.synchrotron.vic.gov.au Further advancement was made in 2002–03 operating theatres, expanded day on the redevelopment of the NGV on St procedure facilities, and a redevelopment Kilda Road. Exhibition fit-out building works, of acute inpatient mental health services the costume gallery upgrade, and the NGV’s will also be provided. In addition, there famous waterwall, all made considerable will be maternity delivery rooms, neo-natal progress. The building is expected to be intensive care unit cots, outpatient suites and specialty women's health services. annual report 2002–03 15 Infrastructure Delivery and Management

• completion of an analysis of the Melbourne markets potential for Partnerships Victoria redevelopment to deliver value for money outcomes The current sites occupied by the for the redevelopment Melbourne Wholesale Fruit and Vegetable • formulation of enabling legislation that and Fish Markets are in a strategically allows the consolidation of the land at important location between the Port of the Ascot Vale site under one title to Melbourne and the Dynon rail hub. Old, be granted back to the Partnership and under pressure to cope with the Venture as a conditional grant, requirements of evolving food safety following approval by the Minister of requirements, occupational health and the form of the Corporate entity safety, larger transportation vehicles, and • confirmation and review of the RAS additional warehousing demands, the Business Case current markets are swiftly becoming • completion of preliminary capital outmoded. works on site that addressed some of the critical risk issues of conducting In 2002–03, MPV started a study on the the 2002 and 2003 Shows future of the markets to identify the best use • commencement of Site Master- of the site for the State, and new siting and planning and development of the delivery options. Work on this study is Public Sector Comparator model. ongoing, with investigation of potential new sites, stakeholder requirements, costs and Beacon Cove Stage 2 financing options and design issues to take The first stage of redeveloping this approximately12 to 18 months to complete. 30-hectare former industrial site on Yarra Arts Integration Project the waterfront at Port Melbourne was undertaken by the State Government, in The Yarra Arts Integration Project will put in partnership with Australian developer, the place key infrastructure components that Mirvac Group. More than 900 houses and enhance and further develop Melbourne's apartments have been established, bringing reputation as the major centre for arts and thousands of new residents to the area. The culture in Australia. The project will provide a residential area is complemented by a boat new 1,000-seat recital hall and a 500-seat Showgrounds redevelopment harbour, retail and tourism precinct, and a theatre for the Melbourne Theatre Company, The Royal Melbourne Showgrounds are waterfront pedestrian promenade between as well as general urban improvement to the being redeveloped over a three year period Station and Princes Piers. Arts Precinct. Registrations of interest were in a unique joint venture arrangement called early in 2003 for key consultant In June 2002 an independent Advisory between the State and the Royal services. The expected completion date of Committee recommended that further work Agricultural Society of Victoria (RAS). the project is 2007. be completed on the proposed plans for Approval to proceed with the Partnerships the second stage of the project. Throughout Victoria approach was obtained in May 2002–03 the Victorian Government worked 2003, and the project is expected to be with the City of Port Phillip, Mirvac, and completed by Show 2006. local residents to develop a suitable Key achievements to date include: proposal for the development of a pier and marina. • development of Commercial Principles and the form of the Partnership Venture between the State and the RAS

16 Department of Infrastructure Siting waste management Commonwealth Games Former Fishmarket site facilities/soil recycling and Athletes’ Village In December 2002, four developers were treatment facility The development of the Commonwealth short-listed to prepare detailed proposals The establishment of soil recycling and Games Athletes’ Village falls under the for the redevelopment of the former treatment facilities is an essential part of responsibility of the Minister for Fishmarket site at the western end of government policy to phase out disposal Commonwealth Games. MPV is managing Flinders Street. Three developers of prescribed industrial waste to landfill. the tender design and documentation subsequently accepted the invitation to The identification of suitable sites and the process on behalf of the Department for participate in this process. Developers have establishment of modern industrial waste Victorian Communities. Decontamination been encouraged to use innovative and management facilities is a complex and works progressed in 2002–03, and the ecologically sustainable design in creating sensitive matter, and considerable progress scope of the project is currently being their proposals. Active frontages to Flinders was made on this project in 2002–03. resolved through the planning approvals Street and Batman Park, as well as measures process provided under the Commonwealth to prevent overshadowing on the Yarra River Extensive studies were conducted on Games Arrangements Act 2001. are specific requirements for the project. establishment of a soil recycling and The overall post-Games Village project, treatment facility at a site proposed by Removal of the Flinders Street overpass is when completed in 2012, will comprise Gippsland Water at Dutson Downs in an element of this project, with planning 190 houses, 710 apartments and a Gippsland. Community consultation occurred work on the removal of the overpass under 100-bed aged-care hostel. alongside the studies to determine if the way. VicRoads will manage this work in establishment of this facility would impact Melbourne Sports and consultation with the City of Melbourne, on the surrounding environment and local Aquatic Centre Stage 2 public transport operators and neighbouring community. The studies have been completed landholders. and a decision by the Minister for Major The Melbourne Sports and Aquatic Centre Projects on whether to invite Gippsland Water Stage 2 project is another Commonwealth to proceed to the statutory approvals phase Games project under the responsibility of should be made in the next few months.* the Minister for Commonwealth Games. MPV has been managing the design and If Gippsland Water is successful in obtaining documentation process on behalf of DVC. the required approvals, it could be expected Expressions of Interest were invited in May that Victoria’s first soil recycling and 2003, and the project is expected to be treatment facility would be operational by completed in 2005. mid-2004. The Government is committed to delivering a facility that is world’s best practice, environmentally and financially sustainable for industry, and provides long- term responsible management of industrial wastes for the community. *Note: The completed studies showed that establishment of a soil recycling and treatment facility posed no risk to the surrounding environment or local amenity. The Minister for Major Projects, the Hon. Peter Batchelor, announced on 15 July 2003 that Gippsland Water would be invited to proceed to the statutory approvals phase.

annual report 2002–03 17 Infrastructure Delivery and Management

Yarra Precinct Pedestrian Link Urban and Regional Land Enhanced project planning Corporation and Docklands and management in DOI On 5 May 2003 the Government announced Authority – VicUrban its commitment to build a 525-metre The Government is investing in large pedestrian link from the Birrarung Marr In November 2002, the Premier announced and complex projects and DOI has been parkland across the Jolimont rail yards to that the Urban and Regional Land Corporation charged with managing many of these. Yarra Park and the MCG. (URLC) and the Docklands Authority (DA) DOI is enhancing its skills and resources would be merged into a single entity, the Located in the Sports and Entertainment to handle these projects and is now placing Victorian Urban Development Authority, Precinct, which will be the centrepiece for greater emphasis on robust project to be known as VicUrban. This creates a the 2006 Commonwealth Games, the Yarra development, assessment, delivery and the single urban development arm of government Precinct Pedestrian Link will be crucial in management of infrastructure. Strategies which will provide a strong focus and reducing waiting times for pedestrians have been put in place within DOI in 2002- enhanced capability to undertake strategic attending the Games. More importantly, 03 to ensure that expertise is applied across urban renewal projects. it will be designed to contribute to the all project planning and management quality of Melbourne’s public realm, The Victorian Urban Development Authority processes. One of the most significant creating a sense of journey through an Act 2003 was passed on 10 June 2003, and of these is the creation of a Project Review urban landscape that will showcase some it is expected that the VicUrban entity will Committee, chaired by the Deputy Secretary of Melbourne’s greatest assets. The project start early in the new financial year. - Capital; this new position has been is expected to be completed in late 2005. established to oversee all project planning and management processes. Following an evaluation of 12 design options, the Government endorsed a preferred design concept which comprises:

•a pedestrian bridge rising out of the mid-terrace of Birrarung Marr and crossing Batman Avenue • an elevated plaza/pedestrian distribution node in the area near Entrance A to the Tennis Centre with access to Batman Avenue and Melbourne Olympic Park •a pedestrian bridge across the Jolimont railway corridor •a pedestrian bridge across Jolimont Street/Brunton Avenue to land in Yarra Park.

18 Department of Infrastructure Outcome 3 Access and Mobility

Plan and deliver a sustainable public transport system and road network that improves people’s mobility and access to services while managing the externalities of travel demand.

annual report 2002–03 19 Access and Mobility

This outcome aims to improve the quality of life of Victorians by providing them with equitable and efficient transport access to people, places, goods and services. In this, DOI supports a range of the Government’s Growing Victoria Together priorities, including growing and linking all of Victoria, more jobs and thriving, innovative industries across Victoria, and building cohesive communities and reducing inequalities.

During 2002–03, a range of strategies and initiatives were implemented to help achieve this goal. They aimed to:

• better manage the existing road and rail transport system and influence travel demand to increase network capacity and ease traffic congestion • improve the overall quality and safety Victorian Government. In the same month, of public transport services KEY ACHIEVEMENTS the remaining rail franchisees, Connex and • increase public transport patronage Public transport operations Yarra Trams, took up the offer and signed •provide greater levels of equity and interim operating agreements with the choice in terms of travel alternatives Major changes to franchise arrangements Government. • improve mobility and access to for train and tram operations in 2002–03 services in regional and rural Victoria. were successfully managed by DOI, without High standards of public transport service disruption to services. Cost pressures facing delivery were maintained during this period. Several projects that will improve access and the privatised public transport system, due DOI acted to ensure that there were no mobility in regional Victoria, including the mainly to unrealistic assumptions about disruptions to train and tram services during introduction of Regional Fast Rail services revenue and costs made at the time of the transition, and DOI continues to closely and the reopening of country passenger rail franchising in August 1999, led to a review monitor performance levels. Across all lines, are included in the Rural and Regional process conducted jointly by DOI and the public transport services, less than 1 per Development chapter of this report. In Department of Treasury and Finance (DTF) cent of trips were cancelled during 2002–03. addition, important initiatives to improve the during 2002. Following this review of the All four metropolitan train and tram level of safety and security for travellers are public transport franchisees’ position, the operators recorded improvements in covered in the Public Safety and Security Government negotiated with the franchisees Customer Satisfaction Indexes over the four- chapter. to gain a right to terminate franchise year period ending in the March quarter Further details relating to specific projects agreements early in return for additional 2003. The largest gains were by M>Tram can be found at the web addresses listed financial support. and Yarra Trams. beside those projects. National Express Group Australia (NEGA) The Government is currently negotiating chose not to take up the Government’s offer with Yarra Trams and Connex in relation to and in December 2002 it withdrew support the implementation of structural reforms to from its three franchises: M>Tram, M>Train the metropolitan franchises to achieve one and V/Line Passenger. NEGA subsequently metropolitan tram company and one placed its transport services in administration metropolitan train company. Negotiations on 23 December 2002 and returned are expected to be completed by the end responsibility for their management to the of 2003.

20 Department of Infrastructure Public transport rolling stock Ticketing system reform

The program of introducing new and Ongoing reforms to improve the reliability refurbished rolling stock into Melbourne’s of the Metcard automated ticketing system Metlink train and tram network as detailed in the (ATS) at metropolitan train stations and on- As part of the Government’s reforms to franchise agreements continued during board trams and buses proved to be highly the public transport system, in June 2003 2002–03. The last of Yarra Trams’ 36 new successful during 2002–03. ATS equipment the Minister for Transport announced that Citadis trams entered service in August performance improved significantly over this Melbourne's public transport system would 2002. Yarra Trams is also refurbishing period, the result of a program of machine be known as Metlink. Under the Metlink 147 trams and this is expected to be hardening to prevent vandalism and break- banner, Yarra Trams, M>Train, M>Tram, completed by the end of 2003. M>Tram ins, improved maintenance procedures, the Connex and Bus Association Victoria will is committed to introducing 38 new Siemens resolution of significant contractual disputes together provide updated signage, call-centre three-module and 21 five-module Combino and the incorporation of an improved facilities, customer information brochures and trams. As scheduled, 17 of these trams performance measurement regime with online communication to help customers entered service in 2002–03, with the associated incentives and penalties. better use and move around Melbourne's remaining trams to enter service by the multimodal system. Metlink aims to grow An independent audit conducted in late end of 2004. A refurbishment program patronage, make it easier for customers to 2002 confirmed the success of this program. is also being undertaken on M>Tram’s move through the system, and enhance Station ticket vending machine availability 169 B and Z3 trams. the provision of customer information. (fully functional performance) increased from For further information see The first four new Connex X’trapolis trains 72.8 per cent in March 2001 to 92.1 per www.metlinkmelbourne.com.au were delivered in 2002–03, with the entire cent in September–October 2002. Tram and fleet of 29 six-car sets scheduled to be bus ticket machines and validators across all Spencer Street Station delivered by the end of 2004. M>Train is modes also recorded similar improvements redevelopment committed to introducing 31 new six-car in availability. More recent surveys in The consortium Civic Nexus was announced Nexas trains, the first of which was delivered April–May 2003 reported that availability as the successful bidder for the design, in 2002–03. The upgrade of the 187 three- of train station ticket vending machines construction, finance, lease, maintenance car Comeng train sets, including the had further increased to 97 per cent. and operation of the new Transport provision of CCTV and duress buttons, Interchange Facility at Spencer Street Daily tickets on trams has been completed. All new trains are Station on 2 July 2002, and financial fitted with CCTV and duress buttons. The conversion of 465 ticket machines on close was reached on 27 August 2002. trams to enable them to also issue daily The consortium's contractor has developed tickets was completed in September 2002. a detailed construction schedule for Daily tickets are the second most popular approval by all parties to meet the ticket type and the introduction of daily completion deadline of mid-2005. tickets on trams further increased the The project has three components – the convenience of using public transport. transport interchange facility, an associated For further information see rail infrastructure upgrade, and commercial www.doi.vic.gov.au/ticketing property development (including office accommodation and retail and residential development along Spencer Street). Preliminary construction works commenced in late 2002; works completed to date include: • geotechnical investigations for the station foundations • major design to develop the roof construction details and refine the station layouts • track and signalling modifications across the regional platforms • piling work to support the roof columns in the south-east corner of the site.

annual report 2002–03 21 Access and Mobility

Mitcham–Frankston Freeway Hallam Bypass TravelSMART program

The former Scoresby Freeway and The Hallam Bypass approached finalisation A number of travel demand management Eastern Freeway Extension projects were 17 months ahead of schedule and almost initiatives were implemented in 2002–03. combined in September 2002 to create $10 million under budget. The $165 million One of these, TravelSMART, aims to the Mitcham–Frankston Freeway project, bypass, which is expected to be opened encourage people to reduce their a single public-private partnership project to traffic in July, was funded as part of dependency on the car by choosing travel under the Government’s Partnerships the $5 billion Linking Victoria strategy alternatives such as cycling, walking, public Victoria policy. The 40-kilometre freeway to revitalise Victoria’s road, rail and port transport or more efficient car use. Pilot will connect Melbourne's eastern and network. The 7.5 kilometre stretch of programs were delivered during 2002–03 south-eastern suburbs through the Scoresby freeway extends the Monash Freeway in the three components of the program corridor, which is home to more than one from Doveton to the Princes Highway (TravelSMART Workplace, TravelSMART million people and more than 40 per cent at Berwick, and is estimated to provide Communities and TravelSMART Schools), of Melbourne's manufacturing and $600 million worth of savings, primarily and evaluations will be completed in the production activity. consisting of time-travel saving and first half of 2003–04. reduced road accidents over the next Expressions of Interest for the freeway’s The TravelSMART Workplace program 30 years. construction were sought in May 2003 consisted of two pilot projects: and received from two major consortia, Craigieburn Bypass • Better Ways to Work – a partnership representing some of Australia’s biggest program jointly funded by DOI, the construction companies and financiers. The first contract of the $306 million Department of Human Services (DHS), Final responses from the proponents are Federally funded Craigieburn Bypass was Sustainable Energy Authority Victoria due in December 2003. Construction is completed, and works on the remainder of and a range of local councils. The due to begin in 2004, with the freeway the project are under way. The bypass is program helps employers develop fully open to traffic in 2008. expected to deliver more than $1 billion travel plans that set targets for mode over the next 30 years in economic benefits The Southern and Eastern Integrated share to the work site. In the United to Victoria as a result of lower travel times, Transport Authority Act 2003 will come Kingdom, similar travel plans have fewer accidents, fuel savings and reduced into operation on 1 July 2003. The Southern achieved reductions in car travel to vehicle-operating costs. and Eastern Integrated Transport Authority work sites by 8–15 per cent will oversee the project, and manage the Melbourne City Link range of complex legal, commercial and Customer advances were the main technical issues inherent in a project of this achievement for CityLink in 2002-03. size. The Authority will comprise a board Building on the Government agenda to see of five members with outstanding skills further improvements for customer products in the areas of finance, commercial and and services, the Office of the Director, legal issues, planning, design and Melbourne City Link has facilitated the community liaison. introduction of a new product, the Access In April 2003, the Government announced Account. This product has particular appeal its decision to fund the freeway for infrequent users. The number of cash development through tolls. The decision outlets available to customers was also followed the announcement that the State expanded. In addition, customers have faced an extra $1 billion in government benefited from the signing of interoperability subsidies to sustain the public transport agreements between CityLink Melbourne franchisees over the next five years. Limited and all interstate tollroad operators. These agreements alleviate the need for CityLink customers to make separate arrangements for their travel on interstate tollroads.

22 Department of Infrastructure •a workplace project that is pioneering Metropolitan bus service The program includes 44 metropolitan behaviour change methodologies in improvements and 38 rural locations and $18.4 million two of Melbourne’s larger traffic had been expended to the end of 2002–03. More than 20 new bus service initiatives generators: Monash University Work is complete at 62 sites and the were introduced in metropolitan Melbourne (working with first-year students), and remaining 20 sites will be completed by during the year. The new services are part of the Alfred Hospital (working with staff). 30 June 2004. the Government’s Linking the Suburbs For further information see TravelSMART Communities works at initiative and significantly improve access to www.linkingvictoria.vic.gov.au the household level to help individuals schools, shops, businesses and essential identify realistic alternatives to car trips, services and facilities. Suburbs and areas Multi Purpose Taxi Program and provides information and motivation covered by the new services include the The Multi Purpose Taxi Program (MPTP) to try these alternatives. Pilot projects were Berwick corridor, Mornington Peninsula, subsidises taxi trips for Victorians who conducted in 2002–03 in households in the Dandenong, Lilydale, Melton, Laverton, suffer permanent disabilities that prevent cities of Port Phillip, Greater Dandenong, Epping and Greensborough. and Moreland. Similar projects in South them from using mainstream public The Cross-Town Bus Services program – Perth reduced car trips by 14 per cent, transport. The subsidy is 50 per cent of SmartBus – was launched on Blackburn and and increased public transport use by each fare, capped at a maximum of $25 Springvale Roads in August 2002. The 17 per cent, cycling by 61 per cent, per trip. In 2002–03 the program subsidised program involves the development of a and walking by 35 per cent. almost six million trips, taken in specialised cross-town network of premium bus routes wheelchair-accessible taxis and standard The TravelSMART Schools pilot is a by improving frequency, travel times and fleet taxis. The MPTP has been operating curriculum-based project that encourages standard of customer information, and aims for 20 years and currently has 180,000 students in Years 5 and 6 to learn about to significantly improve the quality of members. Membership is based on transport, health and environmental issues. services on major arterial roads by offering prescribed disability conditions, which The project, which was tested at six schools regular, efficient and reliable services must be certified by an applicant’s doctor in Melbourne, helps the broader school between suburbs with connections to before being accepted into the program. community enable children to change railway stations, shopping centres and other how they get to and from school. facilities. The first two SmartBus services Return of W-class trams For further information see have been well received and patronage has City Circle W-class trams operated by Yarra www.travelsmart.vic.gov.au increased by more than 20 per cent. Trams returned to service in mid-2002, and Connecting Transport Services in February 2003 were extended to operate into Docklands. Rectification works on the The five-year $20 million Connecting rest of the W-class tram fleet continued Transport Services program began in during the year, and they will be 1999–2000, and is designed to improve progressively returned to service once the safety and comfort of passengers routes and safety requirements are finalised. transferring between different modes of public transport. Works include new covered walkways, shelters, lighting, signage, passenger information display signs, CCTV security, disability access, landscaping and replacement car parking.

annual report 2002–03 23 Access and Mobility

Box Hill tram extension

The Premier opened the state-of-the-art Box Hill tram extension in May 2003, providing a significant boost to public transport services in Melbourne’s eastern suburbs. The $28 million project provided a 2.2 kilometre extension of the Route 109 line from Mont Albert to Box Hill and features real-time travel information, rubber insulation of tracks to reduce tram noise, and the construction of accessible tram stops along the route. It links the tram network to Melbourne’s largest transport interchange at Box Hill, which services 18 bus routes as well as the Lilydale and Belgrave train lines.

Road and tram track realignment was completed in March 2003 adjacent to the new Victoria Gardens shopping centre in Street. A new central reservation was Craigieburn rail electrification Victoria Street between Burnley Street and constructed for the exclusive use of trams The Government’s $98 million project to Yarra Boulevard as part of the Route 109 with four new tram superstops at Burnley extend the metropolitan rail service from improvements. The works were carried out Street and Yarra Boulevarde to provide Broadmeadows to Craigieburn, building in conjunction with the Victoria Gardens ease of access to trams and a safe waiting new stations at Craigieburn and Roxburgh development to reduce traffic congestion, area for passengers. The works included Park and modifying Broadmeadows Station, improve tram reliability and reduce tram the construction of two traffic lanes in each was initiated during 2002–03. Detailed travel times through this section of Victoria direction to improve the flow of motor planning and consultation was undertaken vehicles, bicycle lanes to provide a safer to determine the scope of the project, and environment for cyclists and extensive investigations with stakeholders carried out landscaping and tree planting. to refine operational requirements for track For further information see layout and to develop legal and commercial www.linkingvictoria.vic.gov.au/tram109 strategies for the required transfer of the Vermont South tram extension railway to the metropolitan network. It is expected that agreements will be in place Following extensive stakeholder consultation and detailed design completed by the and planning throughout 2002–03, project end of 2003. development and preliminary designs are well advanced for the 2.8 kilometre extension Tenders for the Craigieburn Rail of the Route 75 tram line to Vermont South, Electrification project will be called in the due for completion in 2005. Landscape first half of 2004, and the project is and urban design issues were assessed, scheduled for completion in mid-2006. public transport passenger forecasts were Station Pier rehabilitation analysed, and pre-construction activities began, including a detailed feature survey Since 1999 the Government has undertaken of Burwood Highway and a geotechnical a major works program to rehabilitate and testing program. The tram line extension upgrade historic Station Pier. Each cruise includes a bus interchange at Vermont ship visit to Melbourne is estimated to South, where trams will connect with generate an average $1 million in direct and buses to the Knox shopping centre. indirect economic benefits to Victoria, and For further information see the Government’s goal is to develop the www.linkingvictoria.vic.gov.au/vermontsouth pier as a world-class facility to increase cruise-ship visits to Victoria. 24 Department of Infrastructure Works undertaken during 2002–03 included Melbourne) as a result of their upgrading the Customs Hall, refurbishing deployment to the Australian region the gatehouse, and installing additional following the downturn in cruise security cameras. The $4 million upgrade business in Asia. of the TT Line passenger terminal facilities A significant issue during the 2002–03 progressed during the year, including the season was the requirement to provide extension of the existing passenger terminal higher levels of security for visiting cruise Melbourne 2030 and the installation of escalators for ships. Security levels at Station Pier continue – Transport Planning passengers. Planning was also carried out to be reviewed to meet the International for the installation of passenger vehicle DOI was instrumental during 2002–03 in Maritime Organisation security requirements. ramps, with works scheduled to begin in developing Melbourne 2030, the the second half of 2003. This work is Peak Service taxi licences Government’s strategy for growing being funded by revenue from a range of Melbourne over the next 30 years, which DOI began a major initiative to improve the shipping and commercial pier operations. was released by the Premier in October availability of taxis at peak times, with the 2002. Following machinery-of-government release of the first 100 Peak Service taxi Cruise-shipping strategy changes later that year, prime responsibility licences. Tenders for the licences closed in In February 2003, the Government launched for the strategy transferred to DSE, with DOI October 2002; after a detailed selection its new three-year plan to develop the cruise retaining responsibility for transport aspects process, the first of the new taxis started shipping industry, Victorian Cruise Shipping of the strategy. service in January 2003. Fifty new taxis were Strategy – Destination Victoria. Other key in operation at the end of June 2003. Over the next 30 years, Melbourne is achievements in cruise shipping in 2002–03 expected to grow by up to one million The initiative is a significant reform in the include: people and 620,000 households, generating taxi industry and involves the release of up • achieving a third consecutive record an extra three million trips on the city’s road to 600 Peak Service licences over a six-year season with 34 cruise-ship visits and and rail system each day. A key direction in period to meet the high demand for taxis more than 55,000 visitors for the season Melbourne 2030 is to progressively improve during peak periods and late at night. The • securing a second cruise-ship visit to Melbourne’s public transport network to meet new licences permit a taxi to operate regional Victoria (Phillip Island in the challenges of future growth and assist in between 3.00 pm and 7.00 am seven days a January 2003) meeting the Government’s Growing Victoria week and for additional hours during • completing modifications to Station Together target of more than doubling public specified major events. The additional taxis Pier’s International Passenger Terminal transport mode share (from 9 per cent to are highly distinctive, sporting a green roof to meet increasing security requirements 20 per cent of all motorised trips) in the and new (Peak Service) number plates. • hosting two visits by ‘Superstar’ ships metropolitan area by 2020. This is referred in May (the largest cruise ships to visit to as the 20/2020 target for public transport.

annual report 2002–03 25 Access and Mobility

During the year DOI progressed a series of studies to support the Melbourne 2030 strategy. Draft Implementation Plan 6 was developed and released in December 2002, and encapsulates the key transport planning issues for the strategy. The implementation plan aims to:

•provide travel choice and reduce inequalities in access to opportunities • develop a more sustainable transport system by reducing the environmental impacts of transport • make better use of resources by using infrastructure efficiently • improve freight efficiency.

For further information see www.melbourne2030.vic.gov.au

Integrated transport studies

During 2002–03, DOI led and collaborated in a range of integrated transport studies in metropolitan Melbourne, to produce Northern Central City input to metropolitan-wide transport long-term strategies that integrate transport Corridor Strategy planning, to better inform DOI’s future planning and priorities in inner-city public transport planning priorities. A draft strategy for the Northern Central Melbourne and its outer suburbs. For further information see City Corridor is expected to be released Details are provided below. www.doi.vic.gov.au/outereast for comment in August 2003, following Inner West Integrated extensive community and stakeholder North East Integrated Transport Study consultation. Issues considered in the Transport Strategy study include traffic congestion and related The aim of the Inner West Integrated Work is underway by DOI and north-eastern environmental, health and social concerns, Transport Study is the production of a local councils to prepare a joint regional public transport within and feeding through strategy that integrates transport planning strategy for the development and the area, conditions for walking and for this rapidly growing region over the management of the transport network in cycling, and the potential for reduced next 20 years, focusing on all transport the north east suburbs. The outcome of car dependency. modes, including walking and cycling, the study will be a strategy that offers a For further information see and emphasising opportunities for better clear regional framework for transport www.doi.vic.gov.au/innernorth integration between modes and with land- development, priority-setting and investment use policy. Community consultation was Outer Eastern Public over the next 20 years, addresses all transport undertaken during the year and a range of Transport Plan modes, and identifies opportunities for options was developed and evaluated for better integration between modes and land In 2002–03, the Outer Eastern Public inclusion into a draft strategy that is expected use policy. A draft strategy will be released Transport Plan Steering Committee to be released for public comment early in for public comment in 2004. endorsed an Inception Report describing 2004, and finalised later that year. the key public transport issues and For further information see directions for outer eastern suburbs of www.doi.vic.gov.au/innerwest Melbourne, and a community consultation program was completed. A draft plan is being prepared in close consultation with the municipalities involved. This will provide

26 Department of Infrastructure Outcome 4 Connecting Victoria

Deliver an innovative, accessible information and communication technology environment that shares the benefits of new technologies across the community and drives economic growth.

annual report 2002–03 27 Connecting Victoria

Information and Communication MMV supports the Government’s KEY ACHIEVEMENTS Technologies (ICT) are a major contributor Growing Victoria Together outcomes of to gross domestic product (GDP) growth, building cohesive communities and Growing the industries and are vital to the economy both as an reducing inequalities, growing and linking of the future enabler and as an industry in its own right. all of Victoria, government that listens and Investment attraction DOI, through MMV, has a key role in driving leads, and creating more jobs and thriving, the implementation of the Government’s innovative industries across Victoria. Despite the difficult global environment, ICT agenda, Connecting Victoria, which the Victorian Government facilitated a Key achievements in 2002-03 are outlined aims to deliver the benefits of technology series of new ICT investments in the State below. Further details relating to specific to all Victorians. in 2002–03. These investments secured projects can be obtained at the web more than $160 million in new capital addresses listed beside those projects. investment and generated more than 2,000 new jobs. Major investments included:

COMPUTERSHARE GLOBAL OPERATIONS CENTRE Computershare, Australia’s largest homegrown IT company, chose to consolidate its global operations in Melbourne. The Global Operations Centre will be the operational base for Computershare’s share registry, employee plan management, print/mail documents system, shareholder analysis and related functions and businesses, and is a consolidation of the company’s activities around the world, including software teams from Chicago (USA) and Bristol (UK). It is the largest single investment ever secured by a Victorian Government in terms of IT job numbers, and is the biggest single ICT employment relocation ever in Australia. More than 1,200 new jobs and more than $800 million are expected to be added to the Victorian economy over the next five years.

(L-R) Adam Lancman, President of the Game Developers’ Association of Australia IBM ASIA-PACIFIC SOFTWARE and Managing Director Atari Melbourne House, Minister Thomson, Michael Ephraim, SOLUTIONS CENTRE Managing Director Sony Computer Entertainment Australia. The IBM Asia-Pacific Software Solutions Centre, located at the University of Ballarat, will create 300 new high-skilled jobs. IBM’s investment will establish Ballarat as the largest regional ICT centre in Australia, and locating the centre at the university will provide invaluable work experience for IT students. The centre will conduct a range of research and software development services, such as application development, software consulting and technical support for the Asia-Pacific region.

28 Department of Infrastructure Industry development Improving infrastructure and access A range of initiatives to further develop the IT industry were implemented throughout The Government’s Regional Connections 2002–03. Details of these initiatives are policy promotes the development of outlined below. regional and rural communications infrastructure. In 2002–03 a wide range TRADE FAIRS AND MISSIONS of achievements in this field were PROGRAM implemented, details of which are The Government provided assistance for provided below. more than 60 Victorian ICT companies to attend international trade fairs, conferences Customer Access Network and missions in 2002–03, resulting in The Customer Access Network a projected $86 million in exports. Demonstrations Program (CAN) aims to www.mmv.vic.gov.au/tradefairs increase investment in telecommunications INTERACT ASIA/PACIFIC services in regional Victoria. Four consortia MULTIMEDIA FESTIVAL were selected to receive a total of $3 million Victoria's ICT industry Interact Asia/Pacific funding to pilot a range of broadband Multimedia Festival attracted more than services in areas across the State. 79,000 business visitors in September 2002. www.mmv.vic.gov.au/can

ROBERT BOSCH DIODE THE COMPUTER GAME INDUSTRY Digital Building Telecommunications MANUFACTURING PLANT Gameplan: Game On was launched in Access Guideline More than 80 new jobs will be created in February 2003 to continue the Funding was provided to the City of Melbourne, and $20 million will be development of Victoria's computer game Melbourne for the implementation of the invested in the plant. The new investment cluster. Initiatives included staging the Digital River, Digital Building builds on the $33 million Robert Bosch Australian Computer Games Conference Telecommunications Access Guideline. has invested in its Clayton manufacturing and the launch of the world-first Sony The Guideline aims to encourage multiple facility over the past four years. The new PlayStation 2 developer kit program. carrier access to buildings to enhance diode line will effectively increase the The Government also assisted the access to competitive broadband services. manufacturing capacity by 30 per cent, establishment of the Game Developers further growing the value of exports from Association of Australia (GDAA) into this facility. Melbourne; the primary purpose of the GDAA is to increase the profile of the Australian interactive game industry domestically and internationally. www.vic.gov.au/gameplan

INDUSTRY NETWORKS During 2002–03 industry networks were established in microelectronics, photonics and eLearning to promote Victoria’s world- class capabilities. In addition, the Victorian Intel CEO Dr Craig Barrett with Chipskills Expat Network was established to keep postgraduate students at the launch of the Victorian Microelectronics Designers Network. Australians working in ICT in the USA informed about Victoria’s high-tech sector.

DIGITAL MEDIA FUND $2.5 million was allocated to six new Digital Media Fund programs, which will assist the local creative content industry stay at the cutting-edge of multimedia production.

annual report 2002–03 29 Connecting Victoria

Growth Council Wired Connecting Communities Skills.net Development A range of programs to reduce inequality in The fourth and final funding round of Funding was provided to the City of the use of information and communication the Skills.net program was implemented Whittlesea for the development of a technology and help create and strengthen in 2002–03, adding to the more than business and costing model to support communities continued to be delivered 94,000 Victorians who have received the roll-out of broadband into new housing during the year under the Connecting Internet training and access through the estates. The model forms the basis of the Communities policy. Details are program. Examples of projects include the Growth Council Wired Development project, provided below. Cambodian Skills.net Project; Key Solutions an initiative that seeks to aggregate Skills.net project and Gippsland NetAbility. My Connected Community demand for broadband services across DOI also assisted upgrades to public five outer metropolitan councils. My Connected Community provides Internet access terminals located in Victorian Victorian community organisations with Business Centres and the Small Business Commonwealth advocacy training and support to go online, stay Online Shopfront. DOI supported the Victorian Government's in touch and build Internet skills and submission to the Commonwealth experience. To date more than 1,900 e-Gaps Government's Broadband Advisory Group. online communities have been established. The e-Gaps project has established Internet The Broadband Advisory Group report access points in communities throughout subsequently supported Victoria's the State where there were major gaps in recommendation that Commonwealth, Victoria’s public Internet access network. State and Territory governments should In 2002–03 the Government funded three adopt a collaborative approach to regional councils to provide public Internet broadband issues and that a national access, bringing to 30 the number of broadband strategy be established. councils that have been funded to provide this service at 80 locations across Victoria. www.egaps.vicnet.net.au

Building a learning society

A range of initiatives under the Government’s ICT skills and knowledge framework to build a learning society, skills x knowledge=growth, continued to be implemented during 2002–03. Details of initiatives are outlined below. New Realities In 2002–03 the New Realities ICT careers awareness program was extended to more than 11,000 young people and 118 secondary schools; since July 2001 the campaign has reached more than 25,000 young people from more than 225 Victorian secondary schools. The campaign was evaluated and refined in 2002–03 to focus on technology careers and young women and their parents, responding to findings that girls were only half as likely as boys to choose an ICT-related career. www.mmv.vic.gov.au/newrealities

30 Department of Infrastructure ICT Skills Snapshot eCommerce Exhibition Reports were released in November 2002 Projects program and June 2003, providing a valuable analysis The third round of funding under the of the ICT industry with up-to-date eCommerce Exhibition Projects program information on ICT labour market trends was conducted in 2002–03, to support and emerging skills forecasts. The Victorian clusters of Victorian small-to-medium Government is the only government in enterprises in developing innovative Australia to produce a comprehensive set approaches to business-to-business of ICT skills statistics on a regular basis. eCommerce. The material for the ICT Skills Snapshot is www.mmv.vic.gov.au/ecepp drawn from the ICT Skills Tracking and Monitoring System, the only comprehensive Promoting a new style ICT skills tracking system in the country. of government www.mmv.vic.gov.au/snapshot A range of initiatives were implemented PositionMentor in 2002–03 to promote a new style of government, which utilises ICT to the fullest, The PositionMentor initiative provides a and maximises access, learning and value web-based ICT careers reference point, for money in relation to ICT services. Details featuring 25 examples of ICT jobs and are outlined below. information for ICT jobseekers and people ICT Achievers seeking to change careers. Leaders@eGovernment A total of 50 schools were funded in The first three of seven sessions of the Boosting eCommerce 2002–03 through the ICT Achievers program Leaders@eGovernment series were held, to create a new ICT curriculum, which is Details of initiatives from the Government’s aimed at preparing Victorian Government being delivered by the Department of eCommerce policy – Victoria’s eCommerce executives for emerging ICT capabilities and Education and Training. Advantage – implemented during 2002–03 new demands. Sessions were attended by ICT Excellence Fellowships are outlined below. about a quarter of all VPS executives. Under the ICT Excellence Fellowship eCommerce Roadshows program, a total of 80 high-achieving Year More than 1,000 businesses attended 11 students were provided with valuable 34 free, practical and interactive workshops work experience and mentoring by leading and seminars on eCommerce held across ICT companies in 2002–03. The program Victoria in the past year. The Government was delivered by the Department of funded local business associations, councils Education and Training. and Chambers of Commerce to deliver the program. In addition, the Government has established a team of trained eCommerce Advocates to provide a broad range of assistance to businesses – from basic information on eCommerce to identifying and encouraging collaborative eCommerce projects between businesses.

annual report 2002–03 31 Connecting Victoria

Chief Information Officer WHOLE OF GOVERNMENT TPAMS ICT CONTRACTS TPAMS has been established to provide a MMV led the project that resulted in A range of strategic whole-of-government strategic framework for the procurement $33 million being allocated to establish contracts for the supply of ICT were and management of telecommunications a whole-of-government Chief Information negotiated in 2002-03. These contracts services across the whole of the Victorian Officer (CIO). The CIO will be responsible will deliver annual savings to Government Government. The program will: for leading policy and strategy related to worth about $25 million. the use of ICT by government departments •provide a purchasing framework that and major government-funded agencies. WHOLE OF GOVERNMENT meets the Victorian Government’s The role will be established as a function ESERVICES PANEL policy objectives for telecommunications of the Department of Premier and Cabinet A total of 104 companies were appointed •replace a number of existing whole-of- in 2003–04. to a whole-of-Government eServices government telecommunications panel. The panel will simplify the contracts that have run to term. Chief Technology Officer procurement process for contracting The program complements the The Government announced it would ICT services in the public sector. Government's Growing Victoria establish a Chief Technology Officer (CTO), Together framework, which recognises VICTORIA ONLINE who will take a whole-of-government the importance of investing in The Victorian Online Gateway aims to approach to ICT infrastructure, projects telecommunications technology. create the best online access to and contracts, including Victoria Online, In 2002–03, TPAMS established a government for Victorians. The project the Telecommunications Purchasing and procurement Centre of Excellence covering research, design, systems Management Strategy (TPAMS) and to ensure ongoing and sustainable construction and marketing was Project Rosetta. Details are outlined below. procurement of telecommunications developed throughout 2002–03 and is services for the whole of the Victorian scheduled to be launched in 2003–04. Government. The benefits of the Centre for Excellence include more competitive telecommunications pricing leading to savings for government, and the ability to access the latest technology to improve operations. www.mmv.vic.gov.au/tpams

PROJECT ROSETTA Project Rosetta will be a complete and up-to-date directory of contact and other business-related information for all VPS employees. The integrated directory structure has been designed and a request for tender will be put to market in the second half of 2003. www.mmv.vic.gov.au/rosetta

32 Department of Infrastructure Outcome 5 Rural and Regional Development

Boost prosperity and enhance rural and regional communities through the provision of improved transport, energy, and information and communication technology infrastructure and services.

annual report 2002–03 33 Rural and Regional Development

DOI's role in rural and regional e-Gaps, eCommerce Roadshows, and the KEY ACHIEVEMENTS development is to implement integrated eCommerce Exhibition Projects Program transport, energy and ICT solutions that all enhance telecommunications services Regional Fast Rail connect communities across the State, to businesses and the public, reduce The Regional Fast Rail project will provide support economic growth and enhance inequalities in public access to information faster and better rail services between employment and investment opportunities. technology, and provide information Melbourne and Ballarat, Bendigo, Geelong technology training to people in rural Significant initiatives undertaken by DOI and the Latrobe Valley. New trains, travelling and regional areas. in 2002–03 to enhance rural and regional at up to 160 km/h, will deliver more Victoria include progress toward the DOI strategies to support the Rural and frequent and faster services, with greater introduction of Regional Fast Rail services to Regional Development outcome contribute reliability and comfort. The project is the Ballarat, Bendigo, Geelong and the Latrobe to the Government’s Growing Victoria largest and most significant upgrade of Valley, the reopening of country rail lines, Together priorities of growing and linking these lines in more than a century, and is the completion of the Geelong Road all of Victoria, promoting sustainable scheduled for completion in mid-2005. upgrade, and new bus services in rural and development, more jobs and thriving, Infrastructure contracts for this project worth regional Victoria. Details of these projects innovative industries across Victoria, almost $500 million were signed in mid- and others of significance to rural and and building cohesive communities 2002. Construction of the new trains began regional Victoria are outlined below. and reducing inequalities. in 2002–03, as did the installation of a fibre A number of initiatives listed in the Further details relating to specific projects optic network for the new signalling system Connecting Victoria section of this Report can be found at the web addresses listed (see VicTrack – fibre optic cabling roll-out also made a significant contribution to the beside those projects. details below). A major program of market Rural and Regional development outcome. research was conducted in 2002–03, which, The IBM Asia-Pacific Software Solutions with extensive community consultation, Centre in Ballarat, and projects such as will assist in developing the new V/Line CAN, My Connected Community, Skills.net, Passenger timetables. For further information see www.doi.vic.gov.au/fastrail

Geelong Road

This project was completed in November 2002, when the last section of freeway was opened to traffic to operate with a 100 km/h speed limit. The Geelong Road now comprises four lanes in each direction beyond the Western Ring Road at Laverton North, through to the start of the Maltby Bypass at Werribee. Three lanes are provided each way between Werribee and Corio, on Geelong's northern outskirts. Landscape planting started early in 2003 and is expected to continue into the second half of the year, at which time the incident detection system and Drive Time signs located in the urban section of the Geelong Road are scheduled to be commissioned.

34 Department of Infrastructure Country bus services Grovedale Station

The 2002–03 State Budget provided for In late 2002 the Government committed 27 new bus initiatives in rural and regional to constructing a new railway station at Victoria, all of which were successfully Grovedale in Geelong. In May 2003 the implemented by the end of June 2003. State Budget allocated $5 million to be The new services are located across Victoria, spent over the next two financial years for serving locations including Wodonga, the station. The station will be built south Shepparton, Ballarat, Bendigo, Geelong of Geelong adjacent to the main Geelong- and the Latrobe Valley. Warrnambool rail line, to provide direct access to Geelong/Melbourne and In regional Victoria during 2002–03, the Geelong/Warrnambool rail services for Government spent a total of $31.7 million residents of south western Geelong and on country and urban (non-metropolitan) the Surf Coast. bus services, and $9.5 million on long- Calder Highway upgrade distance country bus services operated Geelong Western Bypass to Bendigo under marketing arrangements with V/Line using V/Line livery. The 61 country and In late 2002 a strategic study looking at The Calder Highway is the primary road urban contracted bus operators and the options for a Ring Road around Geelong link between Melbourne and Bendigo, and 13 V/Line marketed operators carry was completed. The study recommended provides access from Melbourne to Mildura, 10.7 million and 400,000 passengers provision of a western bypass of Geelong north-western and north-central Victoria, a year respectively. generally along the existing planning southern New South Wales and the Murray scheme reservation from Broderick Road, DOI is carefully monitoring the need for River west of Echuca. The Carlsruhe section Corio to the Princes Highway, Waurn Ponds. new or improved bus services in regional of the Calder Highway was opened eight It also acknowledged the need for a road Victoria, and is evaluating connecting bus months early, in April 2003. The $50 million link from the Western Bypass at Waurn services for the Regional Fast Rail services. project upgrading a seven kilometre section Ponds to the Surf Coast Highway. of the Highway between the Woodend VicTrack – fibre optic In November 2002, the Premier announced Bypass and the Kyneton Bypass was jointly cabling roll-out the State Government’s commitment of funded by the State and Commonwealth $190 million to build a Western Bypass, governments. For further information see VicTrack is a licensed telecommunications and the intention to seek matching funding www.linkingvictoria.vic.gov.au carrier that provides telecommunications for the project from the Federal Government services to the rail industry. In 2002–03, as a Road of National Importance. Victoria Country passenger rail services VicTrack began the installation of a fibre- is continuing to negotiate with the The reintroduction of country passenger rail optic cable along the Regional Fast Rail Commonwealth to secure the additional services is expected to improve access and corridors to Geelong, Ballarat, Bendigo $190 million needed to fund the project. mobility throughout Victoria for more than and the Latrobe Valley. The cable will be 200,000 regional Victorians, as well as used to facilitate state-of-the-art rail promoting regional development and signalling systems for the Regional tourism. In March 2003 construction started Fast Rail services. on the first two lines to be reopened, Ararat Installation of the cable began in the and Bairnsdale, and commissioning of these metropolitan area in 2002–03, with work services is expected to be achieved in expected to progress into regional areas the second half of 2003. When works are by September 2003. The project will be completed there will be two services completed progressively over the next year. each way every day on both lines.

annual report 2002–03 35 Rural and Regional Development

Goulburn Valley Highway north-east lines. The Government is developed the Victorian Government duplication continuing discussions with Freight Australia submission on the Green Paper, and and other rail users on cooperative continues to discuss development of the The Goulburn Valley Highway duplication arrangements for progressing AusLink proposal with the Commonwealth continued in 2002–03. Construction of the standardisation, track access and other while awaiting the release of the Murchison East Deviation was completed freight development issues. Commonwealth's White Paper. and opened in February 2003. The route for the Shepparton Bypass west of Mooroopna In July 2002 a Planning Scheme Network Tariff Rebate for was announced, and received Federal Amendment was approved, to provide non-metropolitan electricity government approval. Negotiations with for the acquisition of land for the bypass consumers local indigenous groups over cultural reserve. The land has been acquired From April 2002 to March 2003, DOI heritage issues are proceeding to resolve and settlement is in progress. Preliminary administered the $118 million Special the need to modify boundaries in sensitive design work for the bypass is Power Payment (SPP) to non-metropolitan areas, and funding is being sought from substantially complete. households and small businesses, to ensure Federal Government for a habitat AusLink consistency with the average electricity replacement program for the local squirrel bills of metropolitan households and glider population. AusLink is a proposal by the Commonwealth small businesses. to develop an integrated approach to Wodonga Rail Bypass investment in land transport infrastructure. DOI also designed and began administering Planning and development of the Wodonga It proposes the development of an the $57 million Network Tariff Rebate, Rail Bypass project continued during integrated national land transport plan which replaced the SPP in April 2003. 2002–03, although delays were experienced based on national objectives and priorities. The NTR compensates consumers for due to the need to reach agreement with The AusLink Green Paper was released in the structural cost ‘gap’ which arises from Freight Australia and other stakeholders on November 2002 with public comments the higher costs of distributing electricity the standardisation of the north-west and sought by February 2003. DOI has in regional and rural areas (equivalent on average to 5 per cent of electricity bills, or $50 per consumer).

Extending natural gas to regional towns

During 2002–03, DOI, in consultation with DTF and DIIRD, advised government on the policy case for contributing to the cost of natural gas extensions to regional areas that are uncommercial but nevertheless provide public benefits.

In June 2003 the Minister for Energy Industries and Resources and the Minister for State and Regional Development launched the Government's $70 million program to fund extensions of the natural gas network to between 70,000 and 100,000 regional households. The program will be administered by Regional Develop- ment Victoria, with continuing input from DOI. For further information see www.doi.vic.gov.au/energy

36 Department of Infrastructure Outcome 6 Seamless Freight and Logistics System

Plan and deliver public infrastructure and a regulatory regime to improve productivity and safety in the freight and logistics sector, while reducing environmental and amenity impacts caused by the movement of freight.

annual report 2002–03 37 Seamless Freight and Logistics System

KEY ACHIEVEMENTS Port reform implementation

In July 2002, the Government released and responded to Professor Bill Russell’s independent Review of Port Reform in Victoria (completed December 2001), which reviewed the port reforms carried out during the mid-1990s. In its response to the report the Government committed to five key directions and 22 implementation actions.

Implementation is on track, with six key actions completed in 2002–03 and substantial progress made on the remainder. A prime focus was the creation of a new entity to manage the Port of Melbourne – the Port of Melbourne Corporation (POMC) – which came into effect on 1 July 2003. This new corporation, created by the Port Services (Port of Melbourne Reform) Act 2003, will ultimately be responsible for tasks formerly undertaken by the Melbourne Port The key objective of the Seamless Freight million tonnes by 2020. DOI is working Corporation (MPC) and many of those and Logistics System outcome is to increase toward solutions which will make the formerly undertaken by the Victorian the competitiveness and integration of anticipated freight task both achievable Channels Authority (VCA). Victoria’s freight and logistics industry and and economically and environmentally Draft legislation is currently being prepared transport systems, with the ultimate aim of sustainable. to implement the balance of reform reducing costs in the supply chain and DOI initiatives to implement a seamless initiatives to which the Government has sustaining Victoria’s economic growth. freight and logistics system also contribute committed. It is expected that the draft In 2002–03 DOI made significant progress to the Government’s Growing Victoria legislation will be considered by Parliament toward achieving this objective, including Together priorities of growing and linking in the Spring Session 2003. substantial implementation of the Port all of Victoria, and creating more jobs and Reform process (notably the creation of a thriving, innovative industries across Victoria. Rail access to Victoria’s ports new corporation to manage the Port of Key achievements in the Seamless Freight The most recent figures available show that, Melbourne, effective 1 July 2003); the and Logistics System outcome over 2002–03 during 2001–02, the rail mode share of port completion of the Geelong Grain Loop are outlined below. Further details relating freight movements across Victorian project in August 2002; and the completion to specific projects can be found at the web commercial ports was approximately of the Melbourne Freight Hub Masterplan. addresses listed beside those projects. 17 per cent, up from 15 per cent in 2000–01 Currently 340 million tonnes of goods and (in 1996 the figure was 10 per cent). materials are involved in the freight and The Victorian Government, in Growing logistics task. The Victorian freight task is Victoria Together, set a target that 30 per expected to grow by 70 per cent to 580 cent of freight to and from Victoria’s commercial ports should be on rail by 2010. A program to deliver improved rail access to Victoria’s ports has begun.

A significant achievement is the completion of the Geelong Grain Loop project in August 2002. Previously, grain from Western Victoria was delivered to the Geelong

38 Department of Infrastructure export grain terminal by road or exported competitive port and the sustainable via alternative ports at additional cost to management of rapid trade growth. farmers. Over the next three years, DOI will In 2002–03 the MPC in partnership with undertake detailed development planning P&O Ports, opened rail access to P&O’s new and scheduling for the precinct, establish intermodal terminal at West Swanson Dock. appropriate land management and Metropolitan port rail shuttles are also now governance structures and obtain using Patrick’s East Swanson Dock rail commitments from industry stakeholders. terminal. The viability of linking the precinct to intermodal terminals in outer metropolitan The construction of the $13.5 million Corio areas of Melbourne will also be tested. Independent Goods Line will provide an important new connection to Victoria’s Freight and Logistics Strategy standard-gauge network at Geelong. This project will deliver an essential dual-gauge Further development of the Victorian rail link to key port facilities at Corio Quay, Freight and Logistics Strategy was linking them into the national rail network. undertaken throughout 2002–03. The strategy aims to increase the Plans for the construction of a dual-gauge competitiveness and integration of the rail link to Lascelles Wharf at the Port of SmartFreight Project freight and logistics industry, and to Geelong are well advanced. This will consolidate a broad range of the activities A major study undertaken in 2002 for DOI, promote the development of vacant land being undertaken by State and Federal titled the Port of Melbourne Container within the Lascelles Wharf precinct, provide governments, extensive industry and Origin Destination Study, identified many Geelong with an intermodal terminal, and regional consultation, and research into arrangements that currently affect the reduce the cost of import/export using the freight and logistics sector. efficiency of land-based container Lascelles Wharf. movements to and from the Port of Issues to be addressed include efficient and For further information see Melbourne. The SmartFreight project effective intermodal and modal operations, www.doi.vic.gov.au/portsmarine will address inefficiencies through the optimisation of strategic land use adjacent investigation and trialling of options related Melbourne Freight to the freight transport network, freight and to ICT solutions. It is anticipated that Hub Masterplan logistics processes that are environmentally partnerships with private stakeholders will and socially sustainable, and the intended Building on the Melbourne Freight Hub encourage the uptake and implementation role for government. The strategy will Masterplan (completed in May 2002), and of successful pilot programs. provide a framework for infrastructure detailed analysis of developments in major investment, management, policy and The Government has allocated $4 million overseas ports and freight logistics, the pricing decisions for the industry over to the SmartFreight project over four years, government announcement the Melbourne the longer term. starting in 2003–04, under the Science Port@L concept in October 2002. This is a For further information see Technology and Innovation – Second long-term vision for the redevelopment of www.doi.vic.gov.au/transport Generation program. the area, aimed at achieving a more

annual report 2002–03 39 Seamless Freight and Logistics System

Channel deepening Port of Hastings the future, particularly as growth capacity of the Port of Melbourne is progressively The Port of Melbourne is Australia’s leading The potential for development of the tested over the next 20–30 years. container port. It is vital to Victoria’s Port of Hastings was acknowledged by economy that the Port of Melbourne the Government in its July 2002 response The Government is mindful of the remains competitive. If larger ships cannot to the Review of Port Reform in Victoria. environmental sensitivities associated with enter the port, Victoria risks trade diversion Draft legislation is currently being prepared any significant development at Hastings to interstate ports and higher import and to replace the Hastings Port (Holding) and will ensure that the port corporation export costs. The Government has given Corporation (HP[H]C) with a new corporation is required to proceed sensitively in in-principle support to the Channel with a broader charter to plan proactively to accordance with ‘triple bottom line’ Deepening project, subject to satisfying reserve the option of significant future port principles. State and federal environmental processes, development. The legislation is planned to Port of Geelong demonstrated technical feasibility and a be introduced to Parliament during the 2003 – channel management sound financing structure. Spring Session. Key tasks include ensuring that suitable land and access corridors are The Port Services (Port of Melbourne In 2002–03 preliminary reports on the key reserved and that appropriate business Reform) Act 2003 established the new Port components of the Channel Deepening development opportunities are progressed of Melbourne Corporation on 1 July 2003. project (including the Environmental Effects in the short to medium term. The Port of Melbourne Corporation will Statement, the preliminary engineering assume responsibility for the port waters reports for the Yarra services relocation, The Port of Hastings is one of Victoria’s and channels of the Port of Melbourne by and a dredging consultants report) four commercial trading ports, and has the no later than 2 February 2004. This will were finalised. strategic advantage of deep water in the include management of the shared section approaches to its berths. The Review of of the channels near the entrance to Port Port Reform in Victoria recognised that the Phillip Bay, which is used by both Port of Hastings had significant potential for Melbourne and Geelong bound vessels. development as a major container port in After the creation of the new POMC on 1 July 2003, the VCA continues to be responsible for managing the port waters and channels of the Port of Geelong.

It is planned to introduce legislation into Parliament during the 2003 Spring Session to create a successor to the VCA. This new entity will be responsible for holding and arranging for the management of the shipping channels servicing the regional trading ports of Portland, Geelong and Hastings. In particular, it will be responsible for maintaining independent management of the Geelong channels, consistent with the Government’s commitment to the Geelong operators and users. Access to, and pricing of, the shared channels at the entrance to Port Phillip Bay will continue to be regulated by the Essential Services Commission (ESC) to ensure that no disadvantage to Geelong- bound vessels occurs. For further information see www.doi.vic.gov.au/portsmarine

40 Department of Infrastructure Outcome 7 Secure and Sustainable Energy Supply

Provide policy advice and implement programs to deliver an energy supply to the State that is secure and efficient, accessible and affordable, safe and reliable, and increasingly sustainable.

annual report 2002–03 41 Secure and Sustainable Energy Supply

Energy is vitally important to our economy The broad objectives of DOI in relation to a DOI initiatives in relation to a secure and and communities, and the development and secure and sustainable energy supply are to: sustainable energy supply support the implementation of effective energy policies Government’s Growing Victoria Together • establish a framework to facilitate new is a key priority for the Victorian priorities of growing and linking all of energy supplies where required, while Government. The growth in demand for Victoria, promoting sustainable reducing greenhouse gas emissions energy will continue to create pressures development, more jobs and thriving, from energy supply and use and opportunities for new electricity and innovative industries across Victoria, • ensure the adequate management gas supplies, as well as energy efficiency building cohesive communities and of energy security risks and supply and demand management by end users. reducing inequalities, and protecting emergencies in the light of recent the environment for future generations. Investment in energy infrastructure and the terrorism events and Victoria’s For further information see provision of energy services is now experience of supply disruptions www.doi.vic.gov.au/energy undertaken by the private sector. However, • further develop the electricity and the Government continues to have a critical gas markets to ensure they become role in ensuring that investment occurs, and increasingly competitive, efficient KEY ACHIEVEMENTS that energy users benefit from competition and national in their operation, and while retaining access to a safety net of Victorian energy users receive the Competition in energy retailing consumer protections where competition benefits of reform DOI played a key role in introducing is not fully effective. •provide disadvantaged energy users competition in energy retailing for Victorian with adequate consumer protection, households and small businesses. Retail given the essential nature of energy competition for gas consumers was • address the dependence of many introduced in October 2002, following regional Victorians on high-cost energy the introduction of competition in electricity supplies, particularly through in January 2002. extensions of the natural gas network DOI facilitated and oversaw the to regional towns development and implementation of • ensure the safe production, supply appropriate market rules and governance and use of electricity and gas. frameworks. Substantial new systems and DOI plays a central role in advising the processes have been developed to enable Government on energy policy. Major consumers to transfer to retailers of contributions in relation to energy policy are their choice. also made by the Department of Primary As at 30 June 2003, there were 10 energy Industries (DPI) (in facilitating exploration retailers licensed to operate in Victoria, and production of brown coal, oil and gas, and around 9 per cent of electricity and regulating those activities) and the consumers and 5 per cent of gas Sustainable Energy Authority of Victoria consumers had elected to change retailer. (in promoting renewable energy and energy An additional number of consumers had efficiency). DOI also oversees a number of elected to enter into specific contracts statutory bodies that operate and regulate with their existing retailer. the energy markets and plan Victoria’s electricity transmission system.

Energy Industries and Resources Minister, Theo Theophanous and Minister for Agriculture Bob Cameron visiting a wind generator supplying power to an apple farm.

42 Department of Infrastructure Supply security The trial, which was also funded by the Commonwealth Scientific and Industrial DOI contributes to the security of energy Research Organisation and the supply in Victoria by advising government Commonwealth and New South Wales on the statutory mandates and operations of governments, showed that the facility has the National Electricity Market Management significant potential, and work is now under Company (NEMMCO) and the Victorian way to evaluate its commercial viability. Energy Networks Corporation (VENCorp), Consistent with DOI’s advice, the Ministerial which have supply security obligations for Council on Energy has agreed to assess electricity and gas respectively. Other DOI whether a demand management responsibilities include the facilitation of aggregation facility should be established investment in new supplies and demand under the rules governing the National management, and advising government Electricity Market. on responding to supply emergencies (including liquid fuel emergencies) and the Interval meters management of security risks in the energy DOI is awaiting an assessment by the ESC sector. Specific achievements in relation to of the costs and benefits of a roll-out of supply security in 2002–03 are listed below. interval meters to households and small Supply projects businesses, and will advise the Minister of possible responses to the ESC’s decision Two energy supply projects in which DOI on this matter in 2003–04. played a facilitation role were completed Consumer safety net in 2002–03 – the upgrade of Victoria’s Electricity and gas tariffs in Victoria are electricity transmission link with New South subject to the Government’s reserve power Wales, and AGL’s Somerton gas peaking of price regulation, and the terms and generator. DOI also played a key ongoing conditions of supply are approved by the role in facilitating the Basslink interconnection ESC. The safety net applies to all domestic with Tasmania, which is due to be and small business energy users, totalling completed in late 2005. more than 2 million electricity and Maintenance of minimum 1.5 million gas consumers. electricity reserves In 2002–03 the Government acted on DOI liaised with NEMMCO in its successful advice from DOI on the use of government action to ensure that Victoria maintained Risk management power to constrain the tariffs proposed for minimum electricity reserves for the DOI initiated a review of the adequacy of 2003 by two of Victoria’s host energy 2002–03 summer. retailers, Origin Energy and TXU Retail. security risk management by Victoria’s Tariffs proposed by the third host retailer, Demand management energy companies in 2002–03. The review AGL, were assessed as justified, and aggregation facility will be completed in 2003–04 and will accordingly no action was taken. DOI also DOI provided a grant of $100,000 to the inform the administration of the critical prepared and assisted in the passage of Energy Users Association of Australia to trial infrastructure provisions of the Terrorism legislation to extend the consumer safety a demand management aggregation facility. (Community Protection) Act by the Minister net by one year until the end of December Such a facility could create a market where, for Energy Industries and Resources. 2004. The Government will commission a during periods of peak demand, electricity further review during 2004 to inform its consumers could sell their capacity to decision on the scope and coverage of the reduce demand and electricity providers safety net after 2004. could purchase this response as an alternative to increasing supply.

annual report 2002–03 43 Secure and Sustainable Energy Supply

DOI provided advice to the Minister for Powerline relocation Energy Industries and Resources to assist Public interest in placing overhead electricity his decision to direct the ESC to review wires underground for aesthetic and Victorian laws that restrict the market reliability reasons continued to grow in conduct of Victoria’s dominant gas 2002–03. Developments in underground producers (the ‘significant producer technology have provided reasonably priced legislation’ in the Gas Industry Act 1997). options for relocating low voltage The Government will decide its response distribution powerlines underground. to the ESC’s report in 2003–04. Although the costs remain too high for DOI also advised the Minister on a direction widespread undergrounding of overhead to VENCorp to review the Victorian gas spot powerlines, the use of insulated overhead market, to improve the efficiency of the cables has enabled a perceptible market taking into account the growth in improvement in aesthetics and amenity. diversity of supplies, the impact of increased Energy market reform DOI assists communities to enhance and gas-fired electricity generation, and the preserve streetscapes, environmental and DOI played a lead role in developing increasing interaction between the gas and cultural assets, by providing grants under proposed reforms of the national energy electricity markets. VENCorp will report to the Powerline Relocation Scheme to partially market which were agreed by the Ministerial government in 2003–04. fund the relocation of overhead powerlines. Council on Energy in June 2003, and are In 2002–03 a total of 34 grants with a value to be considered by the Council of Greenhouse emissions of $3.2 million were made. Australian Governments (COAG) in DOI, with DSE, began the development August 2003. The reforms aim to improve of policy options to address greenhouse Artist’s impression of powerline relocation, the quality, accountability and timeliness gas emissions from the energy sector before and after. of market governance and regulation, while promoting timely investment in consolidate governance of the energy new energy supplies. A consultation paper, markets under the Ministerial Council on The Greenhouse Challenge for Energy, was Energy, and create two industry-specific released in June 2003 and policy options statutory commissions to undertake rule- will be considered and recommended to making and economic regulation – the government in 2003–04. Australian Energy Market Commission and Australian Energy Regulator respectively. Energy for Victoria

Further reforms to improve consumer A statement of long-term energy policy, participation in the energy markets and Energy for Victoria, was released by the increase the penetration of natural gas then Minister for Energy and Resources in were also developed for consideration by October 2002. Energy for Victoria is an the Ministerial Council on Energy and integrated statement of medium- and COAG in August 2003, along with long-term energy policy objectives. intergovernmental processes to address greenhouse gas emissions from the energy sector. Possible reforms of the framework for developing the national transmission grid were also assessed through 2002–03, and will be considered by the Ministerial Council on Energy in late 2003.

Minister for Energy Industries, Theo Theophanous, and Minister for State and Regional Development, John Brumby, celebrated the completion of powerline undergrounding in Horsham in May.

44 Department of Infrastructure Outcome 8 Organisational Capability Building

Build DOI’s capability and capacity to provide: • high-quality strategic advice •responsive, accessible and efficient services • sound development, assessment and delivery of large public infrastructure projects.

annual report 2002–03 45 Organisational Capability Building

As a consequence of machinery-of- and management of commercial KEY ACHIEVEMENTS government changes in December 2002, agreements that deliver benefits and value responsibilities for energy policy and ICT, for money to the community, managing Corporate governance and responsibility for security of large commercial issues and dealing with DOI’s corporate governance framework infrastructure, were transferred to DOI. major private-sector organisations. ensures that DOI functions effectively and Organisational capability building is central DOI’s initiatives to build organisational ethically. It focuses on leadership, to and underlies the successful capability provide indirect but vital support performance and accountability and high achievements of all of DOI’s outcome to a range of the Government’s Growing standards of professional behaviour. DOI’s groups. Throughout 2002–03 DOI enhanced Victoria Together commitments, including corporate governance framework was its skill-base, provided targeted training and sound financial management, growing and enhanced in 2002–03 by the creation of four development to existing staff, particularly to linking all of Victoria, creating more jobs and subcommittees of the Management relation to public-sector management and thriving, innovative industries across Victoria, Committee, with responsibility for portfolio- project planning and management, and safe streets, homes and workplaces, and wide issues coordination across DOI. The recruited new staff with high-level building cohesive communities and subcommittees are: professional skills. DOI is committed to reducing inequalities. • Finance Subcommittee – oversees achieving government objectives in relation Key achievements in the Organisational DOI’s performance towards meeting to the provision and management of public Capability Building outcome for 2002–03 key financial and budgetary targets infrastructure, specifically the negotiating are outlined below. and increasing DOI’s forward projection capability. • Capital Subcommittee – provides an avenue for the formulation and review of DOI’s capital program, and monitoring of projects under development. • Policy Subcommittee – focuses on high-level policy issues, particularly those with cross portfolio or cross- divisional impacts, and issues with high levels of policy risk. • Planning Subcommittee – advises on DOI’s key priorities, projects and key performance indicators and is largely responsible for the coordination of business and corporate planning.

46 Department of Infrastructure Organisational Capability Building

Creation of Corporate Providing sound corporate • an upgrade of the Oracle financial Resources Division systems and processes system, enabling DOI to move to a multi-organisational environment with The Corporate Resources Division brings During 2002–03 a great deal of work was additional functionality together all of DOI’s major corporate undertaken across DOI to enhance, refine • introduction of an electronic services functions under a single division. and maintain sound corporate systems and recruitment capability, to receive, The core responsibilities of the new Division processes. Significant examples include: process and forward all applications are centred around: • amendment of DOI's Workforce Plan for DOI jobs •providing high-quality corporate to reflect DOI's changing priorities • successful development and services to enable the delivery of and composition following machinery- management of events including government priorities and DOI of-government changes the 17th Annual Transport Ministers' outcomes – supporting DOI • continued implementation of the Conference, Synchrotron Industry Day, business units with budget/financial innovative program to foster Waste Management Forum, Bus management, public affairs, human leadership and development across Maintenance Conference, and resources, IT, property, contract, DOI Greenhouse Policy launch executive and legal services, and • continued availability of training and • implementation of the Contracts providing a range of support development opportunities, Management System, which assists services to Ministers’ offices addressing information technology DOI to track and manage tenders, • continually improving corporate skills training, e-learning, distance streamline the recording process to service delivery – evaluating service education, post-graduate meet government reporting effectiveness, increasing process qualifications, innovation and creativity requirements, and extract efficiency, minimising delivery costs programs, and the practical management information and consolidating systems and application of learning to workplace • strengthening DOI’s commercial and processes issues (total attendance at learning corporate skills by way of strategic • maximising shared services and development opportunities in recruitment of further expertise in opportunities – by identifying and 2002–03 is 1,361; total number in these fields. providing other government agencies 2001–02 was 1,759) with services in order to make best • continued development of the budget use of DOI resources and provide management system implemented in value across government. 2001–02, which enables DOI to streamline the efficiency of financial Significant achievements in 2002–03 for the monitoring and budget development Corporate Resources Division were: • management and development of providing sound corporate systems and intranet, Internet and extranet processes, implementing machinery-of - environments including an innovative government and associated organisational Search facility enabling a single point changes, supporting DOI business priorities, of access to an extensive range of DOI and the provision of support for shared and external information resources services between DOI and other agencies. •review and revision of DOI Registration Details of achievements are listed below. of Interest and Tender documents •review and revision of DOI financial delegations and delegations under the Project Development and Construction Management Act 1994 • successful implementation of new Ministerial correspondence arrangements

annual report 2002–03 47 Organisational Capability Building

Implementing machinery-of- Supporting DOI business Shared services government and associated priorities Considerable effort was expended by organisational changes Support for a broad range of DOI business DOI in 2002–03 to developing a successful Implementing machinery-of-government priorities was provided in 2002–03. In model for delivering shared services and associated organisational changes addition to the provision of IT services to other departments and agencies. provided DOI with significant challenges across DOI for a range of everyday business These services include the provision of after they were announced in December applications, sophisticated IT capabilities IT services to the DVC, and a range of 2002. During the period of change, were provided and supported for complex corporate services such as finance, payroll, corporate services were planned and business applications, specifically in relation records and information management and managed to ensure reliable continuation to monitoring and supporting the franchised administrative services for the Spencer of DOI’s core businesses and support for public transport services. Street Station Authority and the newly the Ministers was maintained, before, during Other support activities for business formed Southern and Eastern Integrated and after the transfer of people, resources priorities during the year include: Transport Authority. and responsibilities between DOI and the • development of the Victorian Urban newly created DSE and DVC, as well as the Development Authority Act 2003, incorporation of the Energy and Security which was passed in Parliament in Division and MMV into DOI. June 2003 • negotiations to ensure that public transport property interests were protected during the redevelopment of Melbourne Central • securing an agreement for online access to VicTrack's Geographic Information Systems (GIS) and property databases • assistance and support provided to the Public Transport Division in relation to public-sector financial benchmarking modelling.

48 Department of Infrastructure Summary of Financial Results

The Department of Infrastructure (DOI) •Urban and Regional Land Environment (DSE). A section of DOI’s comprises the following entities for Corporation Strategic Planning Division also moved which Ministers within the portfolio are to DSE in view of its focus on strategic •Victorian Rail Track Corporation responsible for tabling annual reports land use planning. Strategic planning (VicTrack) (including Rolling (including audited financial statements) for transport sector investments has Stock Holdings Pty Ltd) as at 30 June 2003: been retained. •Victorian Channels Authority • DOI (including Victorian Rail Services The Department for Victorian Pty Ltd; and incorporating the •Victorian Energy Network Communities (DVC) assumed Secretary to DOI, an independent Corporation (VENCorp) responsibility for local government, body corporate created under the and DOI’s Local Government Division The financial statements presented in Project Development and Construction therefore transferred to DVC. this annual report relate strictly to the Management Act 1994. The body Multimedia Victoria moved from the operations of DOI, and include the corporate activities include the Department of Innovation Industry and operations under the body corporate functions of Major Regional Development (DIIRD) to DOI, Secretary to the Department of Projects Victoria (MPV)). and DOI also assumed responsibility for Infrastructure; the Victorian Rail strategic advice on energy policy, which •Docklands Authority Services Pty Ltd, a company wholly was previously in the former Department owned by DOI; and the Director of • Hastings Port (Holdings) Corporation of Natural Resources and Environment Public Transport, an office established (DNRE). •Melbourne Port Corporation by section 8 of the Transport Act 1983. The audited operating deficit for the •Office of Chief Electrical Inspector All other agencies within the portfolio year was $43.709 million (2002 - surplus prepare their own annual reports •Office of Gas Safety of $55.279 million). The operating deficit (including audited financial statements) principally relates to $250.6 million of • Public Transport Corporation and report separately. (abolished 30 June 2003) City Link assets which were created and Machinery of government changes acquired by the State but written off in • Public Transport Ticketing Body announced in December 2002 resulted accordance with Accounting Standards (first reporting period ends in major changes to DOI’s structure. to reflect Transurban’s ‘control’ of these 30 June 2004) The Planning Division, encompassing assets as part of the City Link project. • Roads Corporation (VicRoads) the planning, heritage and building Offset against this write off was funding functions, was relocated to the received for committed expenditures •Spencer Street Station Authority Department of Sustainability and which were not expended at year end.

Financial Results – Controlled Operations 2003 2002 2001 2000 1999 Note $m $m $m $m $m Operating Revenue - appropriations 1 2,442.5 2,406.1 2,316.6 2,182.1 2,118.0 - other revenue 2 291.1 181.1 135.6 147.1 42.1 Total operating revenue 2,733.6 2,587.2 2,452.2 2,329.2 2,160.1 Operating expenses 3 2,777.3 2,531.9 2,377.4 2,222.7 2,151.1 Operating surplus (deficit) 4 (43.7) 55.3 74.7 106.5 29.0 Total assets 5 945.9 927.0 439.2 287.4 150.9 Total liabilities 6 237.2 161.1 139.4 91.8 61.7

annual report 2002–03 49 Summary of Financial Results

Notes: Portfolio agencies 1. ‘Appropriations’ mainly reflects During the year, portfolio agencies funding for rail, road and bus collected some $1,192.5 million (2002 - services and generally remained $891.9 million) of revenue (mainly related to consistent with the previous year. 2. The increase in ‘other revenue’ of motor vehicle registration, stamp duty and $110 million mainly reflects the driver licence fees) on behalf of the payment in lieu of the government, which was remitted directly to performance bond from National the Consolidated Fund. A further $1,064.3 Express of $135 million, an million (2002 - $1,004.3 million) of transport increase of some $15 million of transport and other related accident charges were collected on behalf revenue; offset by the ‘one off’ of the Transport Accident Commission. proceeds from the sale of the These revenue collections do not appear on investment in the National Rail the statement of financial performance of Corporation in the previous year of DOI or its agencies, but are included in $44.6 million. 3. The increase in expenditure the accounts of the other government principally relates to the write off entities for which the funds were collected. of $250.6 million of City Link The net assets of all agencies within the assets which were created and acquired by the State but written portfolio totalled $22.179 billion (2002 - off in accordance with Accounting $21.199 billion), the major agencies being Standards to reflect Transurban’s the Roads Corporation $16.191 billion (2002 ‘control’ of these assets as part of - $15.471 billion), and VicTrack $4.136 the City Link project. billion (2002 - $3.934 billion). Machinery-of- 4. The operating deficit mainly relates to the write off of City Link assets government changes resulted in the transfer referred to above, offset by of the following agencies: Victorian Energy funding received for committed Network Corporation, the Office of Gas expenditures which were not Safety and the Office of Chief Electrical expended at year end. Inspector into the Infrastructure portfolio 5. ‘Total Assets’ remained consistent over the year but significant from the Department of Sustainability and movements occurred in fixed Environment and the transfer of Heritage assets which reduced by $287 Council, Architects Registration Board, million reflecting the write off of Building Commission, and Plumbing the City Link assets and asset Industry Commission to the Department transfers resulting from the machinery of government of Sustainability and Environment from changes; against increases in cash the Infrastructure portfolio. and receivables of $313 million relating to funding received for committed expenditures but not expended at year end. 6. ‘Total Liabilities’ increased by $76 million mainly due to an increase in creditors of $63 million and an advance to Major Projects Victoria of $15.3 million for the Austin Hospital redevelopment.

50 Department of Infrastructure Financial Statements for the year ended 30 June 2003

annual report 2002–03 51 Financial statements for the year ended 30 June 2003

CONTENTS

Accountable Officer’s and Chief Finance Officer’s declaration

Auditor-General’s report

Statement of financial performance

Statement of financial position

Statement of cash flows

Notes to the financial statements

These financial statements cover the Department of Infrastructure, the Secretary to the Department of Infrastructure and the Victorian Rail Services Pty Ltd.

The Department of Infrastructure is a Government Department of the State of Victoria.

Its principal address is: Department of Infrastructure 80 Collins Street, Melbourne Victoria Australia 3000

A description of the nature of the Department’s operations and its principal activities is included in the Report of Operations.

For queries in relation to our financial statements please call 9655 6666, or visit our web site www.doi.vic.gov.au

52 Department of Infrastructure annual report 2002–03 53 54 Department of Infrastructure Statement of financial performance for the year ended 30 June 2003

Notes 2003 2002 $’000 $’000

REVENUE FROM ORDINARY ACTIVITIES Output appropriations 5,6 2,442,455 2,406,086 Revenue from other parties 5 291,108 181,102

Total revenue 2,733,563 2,587,188

EXPENSES FROM ORDINARY ACTIVITIES Rail services 7 997,858 949,113 Road services 811,065 909,922 Bus services 448,584 406,299 Value of assets written down/disposed of 8 259,116 148 Other services and supplies 9 161,911 160,518 Assets transferred to other agencies 10 77 11,669 Capital asset charge 11 20,867 21,914 Employee benefits 12 61,015 58,230 Depreciation and amortisation expense 12 12,698 9,379 Resources provided free of charge 13 4,081 4,717

Total expenditure 2,777,272 2,531,909

Net result for the reporting period (43,709) 55,279

Accumulated surplus transferred to Contributed Capital as part of machinery–of–government 21(b) (412) - Adjustment due to Accounting Standard change (AASB 1028) 21(b) (317) - Net (decrease) increase in asset revaluation reserve 21(c) (7,646) 29,703

Total revenues, expenses and revaluation adjustments recognised directly in equity (8,375) 29,703

Total changes in equity other than those resulting from transactions with Victorian Government in its capacity as owner 21(e) (52,084) 84,982

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

annual report 2002–03 55 Statement of financial position as at 30 June 2003

Notes 2003 2002 $’000 $’000

Current assets Cash assets 14 513,314 261,968 Receivables 15 198,351 138,387 Prepayments 722 1,230 Inventories 16 3,431 3,521 Total current assets 715,818 405,106

Non-current assets Receivables 15 14,248 14,261 Inventories 16 3,829 5,352 Infrastructure, property, plant and equipment 17 202,742 489,856 Intangible assets 18 9,283 10,389 Loans - 2,000 Total non-current assets 230,102 521,858 Total assets 945,920 926,964

Current liabilities Payables 19 203,711 140,480 Provisions for employee benefits 20 6,089 6,761 Total current liabilities 209,800 147,241

Non-current liabilities Provisions for employee benefits 20 10,032 11,734 Loans and advances from Victorian General Government 15,300 - Prepaid lease income 2,047 2,136 Total non-current liabilities 27,379 13,870 Total liabilities 237,179 161,111

Net assets 708,741 765,853

Equity Contributed capital 1(v), 21(a) 508,068 513,096 Accumulated surplus 21(b) 147,743 192,181 Asset revaluation reserve 21(c) 52,930 60,576 Total equity 708,741 765,853

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

56 Department of Infrastructure Statement of cash flows for the year ended 30 June 2003

Notes 2003 2002 $’000 $’000

Cash flows from operating activities Receipts from Victorian Government 2,403,341 2,387,068 Receipts from other entities 77,911 76,927 Payments to suppliers and employees (2,571,861) (2,586,047) Goods and Services Tax recovered from the ATO (Note a and b) 113,924 - Goods and Services Tax paid to the ATO (Note a) (15,498) - Interest received 3,147 2,237 Other revenue 218,074 195,780 Capital asset charge (20,867) (21,914) Net cash inflow from operating activities 30 208,171 54,051

Cash flows from investing activities Payments for property, plant and equipment (including work in progress) (9,459) (16,745) Payments for land held for resale - (1,727) Payments for software (including work in progress) (7,813) (4,127) Advances received from clients/sponsor agencies 146,708 47,262 Disbursements to contractors/agencies (135,021) (38,653) Net cash (outflow) from investing activities (5,585) (13,990)

Cash flows from financing activities Proceeds of capital contribution from Victorian Government 211,882 190,022 Payments to acquire assets on behalf of VicTrack (114,654) (52,876) Payments of capital contribution to State Government (48,300) (109,766) Net cash (outflow) from financing activities 48,928 27,380

Net increase (decrease) in cash held 251,514 67,441 Cash at the beginning of the financial year 261,968 185,190 Transfer from MMV (Note b) 486 - Transfer to DSE and DVC (Note b) (654) - Transfer to from MCLA, MBV and MPV to DOI (Note b) - 9,337 Cash at the end of the financial year 14 513,314 261,968

Note a: Goods and services tax paid to and recovered from the Australian Taxation Office not separately identified in the Statement of Cash Flows for the Year Ended 30 June 2002.

Note b: Legend DOI – Department of Infrastructure DSE – Department of Sustainability and Environment DVC – Department for Victorian Communities MMV – Multimedia Victoria MCLA – Melbourne City Link Authority MBV – Marine Board of Victoria MPV – Major Projects Victoria ATO – Australian Taxation Office

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

annual report 2002–03 57 Index for ‘Notes to the Financial Statements’

Note Page

1 Summary of significant accounting policies 59 2 Output groups of the Department 66 3 Restructuring of administrative arrangements 74 4Major Projects Victoria 76 5 Revenue 77 6 Summary of compliance with annual parliamentary appropriations 78 7 Rail services 80 8Value of assets written down/disposed of 80 9Other services and supplies 81 10 Assets transferred to other agencies 81 11 Capital asset charge 81 12 Result from ordinary activities 82 13 Resources provided free of charge 83 14 Cash assets 83 15 Receivables 84 16 Inventories 84 17 Infrastructure, property, plant and equipment 85 18 Intangible assets 87 19 Payables 87 20 Provisions 87 21 Equity and movements in equity 88 22 Financial instruments 89 23 Ministers and Accountable Officers 91 24 Remuneration of executives 92 25 Remuneration of auditors 93 26 Contingent liabilities 93 27 Contingent assets 97 28 Commitments for expenditure 99 29 Employee benefits 102 30 Reconciliation of the net result for the reporting period to net cash inflow from operating activities 103 31 Consolidation: Victorian Rail Services Pty Ltd (VRS) 104 32 Ex-gratia payments 105 33 Administered Items 105 34 Non-cash financing and investing activities 108 35 Events occurring after reporting date 108

58 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 1. Summary of significant accounting (ii) Director of Public Transport policies The Director of Public Transport (“the Director”) is an office This general-purpose financial report has been prepared established by section 8 of the Transport Act 1983 (“the Act”). in accordance with the Financial Management Act 1994, The Director’s powers and functions are set out in section Australian Accounting Standards, Statements of Accounting 9 of the Act and include responsibility for the general Concepts and other authoritative pronouncements of the administration of the tram and train service contracts Australian Accounting Standards Board, and Urgent Issues provided by private operators under franchise arrangements. Group Consensus Views. It is prepared in accordance with the The Director is part of the Department of Infrastructure. historical cost convention on an accrual basis of accounting, The Director, on behalf of the Crown, has entered into a except for certain assets and liabilities which, as noted, are number of agreements with private operators for periods at valuation. The accounting policies adopted, and the ranging from 10 to 15 years whereby the operation of classification and presentation of items, are consistent with Victoria’s tram and train services transferred from the State- those of the previous year, except where a change is required owned rail corporations to those operators in August 1999. to comply with an Australian Accounting Standard or Urgent These arrangements are referred to as the franchising Issues Group Consensus View. arrangements. The Department has contracted to pay a number of subsidies for public transport services and rail (a) Reporting entity infrastructure assets to be provided by the operators over The financial statements include all the controlled activities of the period of the leases. Further details regarding the Department of Infrastructure. commitments and current renegotiations regarding The reporting entity includes: franchisee arrangements are referred to in note 7, 27 and 28. (i) Machinery-of-government changes The country and metropolitan network infrastructure Machinery-of-government changes announced in existing at the time the franchise agreements were entered December 2002 resulted in major changes to the into in August 1999, were leased by the Victorian Rail Track Department’s structure. The Planning Division, Corporation (VicTrack) under a lease to the Director who encompassing the planning, heritage and building has subleased the infrastructure to the operators for the functions, was relocated to the Department of duration of each franchise. Sustainability and Environment (DSE). A section of DOI’s Strategic Planning Division also moved to DSE in view of In accordance with the contractual provisions and its focus on strategic land use planning. Strategic planning government policy, works undertaken by the private for transport sector investments has been retained. operators to enhance, modify or add to the infrastructure, vests with the Director. The Department of Treasury and The Department for Victorian Communities (DVC) assumed Finance has advised that whilst the Director still maintains responsibility for local government, and DOI’s Local ownership, all rail leasehold improvement infrastructure Government Division therefore transferred to DVC. assets created as a result of capital grants and other Multimedia Victoria moved from the Department of subsidies paid to all franchisees are controlled and Innovation Industry and Regional Development (DIIRD) reported by VicTrack. to DOI, and DOI also assumed responsibility for strategic advice on energy policy, which was previously in the former Formation of Victorian Rail Services Pty Ltd (VRS) Department of Natural Resources and Environment In December 2002 National Express advised that it would (DNRE). withdraw from its train and tram franchises effective from Details of assets and liabilities transferred into and out of 23 December 2002. The Government appointed receivers DOI as at 1 January 2003 and other information relating to and managers to the National Express train and tram machinery-of-government changes are reflected in Note 3. franchises, in order to protect government interests and to ensure continuation of services.

annual report 2002–03 59 Notes to the financial statements for the year ended 30 June 2003

The VRS was formed to assume most of the head office Transactions and balances relating to these administered corporate services functions of National Express Group resources are not recognised as departmental revenues, Australia (NEGA), the parent company of the three expenses, assets or liabilities, but are disclosed in the National Express franchises now in receivership. The sole applicable output schedules (also refer note 33). shareholder of VRS is the Director of Public Transport. As such, the accounts of VRS as at 30 June 2003 have Other administered activities on behalf of parties external been consolidated with DOI in accordance with to the Victorian Government Accounting Standards (refer note 31). The Department has responsibility for transactions and balances relating to administered funds on behalf of third The Government is reviewing options for future franchising parties external to the Victorian Government. Revenues, arrangements. Given its intention to refranchise these expenses, assets and liabilities administered on behalf of operations, no changes have been made to accounting third parties are not recognised in these financial statements treatments for related items in these statements. as they are administered on a fiduciary and custodial basis, (iii) Secretary to the Department of Infrastructure and therefore not controlled by the Department (also refer note 33). In accordance with approval received under the Financial Management Act 1994, the Department of Infrastructure’s Non-current assets (the Department’s) Annual Report and Financial Statements All non-current assets controlled by the Department (including incorporate the ‘Secretary to the Department of Crown land) are reported in the statement of financial position. Infrastructure’ as a body corporate created under the Non-current assets which the Department administers on behalf Project Development and Construction Management Act of the Victorian Government are reported as administered 1994. The body corporate activities include the functions resources (also refer note 33). performed by Major Projects Victoria. All activities are reflected as controlled transactions except project (b) Objectives and funding development and construction management activities for sponsor agencies, and where sales and subsequent The Department’s objectives for the period 1 July to 31 proceeds are received in which case they are reflected December 2002 (being the period prior to machinery-of- as administered transactions (refer note 4). government changes) were: • Public Safety – improve transport and marine safety and (iv) Station Pier – Committee of Management reduce the incidence, severity and cost of accidents and On 17 May 2001, a Committee of Management which incidents is controlled by the Department was formed for the • Regional development – enhance the potential for regional management of the Station Pier area. The Committee’s development and access to services and markets functions include improving, maintaining control, and granting leases over the Station Pier land and buildings. • Seamless freight and logistics system – facilitate the The activities of the Committee are incorporated into development of an integrated and seamless freight and the financial statement of the Department. logistics system that enhances global competitiveness and meets the needs of business Administered resources • Travel mobility and access – deliver a sustainable transport The Department administers but does not control certain system that meets people’s changing access and mobility resources on behalf of the Victorian Government. It is needs accountable for the transactions involving those administered resources, but does not have the discretion to deploy these • Liveable communities – enhance the liveability of resources for achievement of the Department’s objectives. communities across Victoria For these resources, the Department acts only on behalf of the Victorian Government.

60 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

• Local governance – develop a stronger and more effective logistics industry; building the mode share for rail traffic in the local government sector in Victoria that is responsive to State; increasing patronage of public transport; developing community expectations and provides leadership at the secure and sustainable energy markets; and providing better, local level more accessible communication links throughout the State.

• Infrastructure delivery and management – deliver cost A significant contribution is also made to achieving ‘safe effective investment in and management of infrastructure streets, homes and workplaces’ by improving safety on roads, development in Victoria. public transport and Victorian waters, and by providing a safe energy supply. Effective from 1 January 2003, the Department’s objectives were realigned to reflect the machinery-of-government By developing integrated transport solutions and ICT initiative changes. that connect communities across the State, the Department contributes to economic growth, increased employment and • Public Safety – improve transport, marine and energy investment opportunities, and the development of more sector safety and reduce the incidence, severity and cost sustainable and cohesive communities. of accidents and incidents DOI also aims to deliver best practice infrastructure projects • Seamless freight and logistics system – facilitate the and maintenance regimes that achieve positive triple-bottom- development of an integrated and seamless freight and line benefit/cost ratios and meet established timelines, value logistics system that enhances global competitiveness and and quality standards. Through extensive strategic planning, meets the needs of business project scoping, development and delivery practices, and • Access and mobility – deliver a transport system that public consultation processes, the Department works to provides people with the choice to participate in a range achieve government outcomes of sound financial management of activities to meet their changing needs and listening and leading in the community.

• Connected Victorians – deliver innovative, accessible The Department is predominantly funded by accrual-based Information and Communication Technologies (ICT) parliamentary appropriations for the provision of outputs. environment that shares the benefits of new technologies across the entire community and drives economic growth (c) Outputs of the Department

• Rural and regional development – foster prosperous and Information about the Department’s output groups, and the sustainable rural and regional communities through the expenses, revenues, assets and liabilities which are reliably provision of essential transport, ICT and energy attributable to those output groups, is set out in the Output infrastructure Groups Schedule (refer note 2). Information about expenses, revenues, assets and liabilities administered by the • Infrastructure delivery and management – deliver cost- Department are given in the schedule of administered effective investment in and management of, infrastructure expenses and revenues and the schedule of administered development in Victoria assets and liabilities (refer note 33). • Secure and sustainable energy supply – provide policy As a result of the machinery-of-government changes which advice to deliver an affordable, efficient and safe energy took place effective from 1 January 2003, output details reflect supply to the State the actual period of responsibility for DOI for the period to 31 • Organisational capacity building – build the Department’s December 2002 for the old outputs and from 1 January 2003 capability and capacity to deliver high-quality and efficient to 30 June 2003 for the new output structure. services. Further, two of the objectives published in DOI’s 2002-05 DOI has a lead responsibility for delivering the Government’s Corporate Plan have not been included in Note 1(b). They are priorities for ‘growing and linking all of Victoria.’ Several of the Liveable communities and Local governance objectives. the Department’s corporate objectives encompass long-term Two new objectives, Connected Victorians and Secure and strategies aimed at increasing the efficiency, integration and sustainable energy supply, have been added. competitiveness of Victoria’s transport system, freight and

annual report 2002–03 61 Notes to the financial statements for the year ended 30 June 2003

The following outputs were established in DOI as a result point, section 29 provides for an equivalent amount to be of the machinery-of-government changes: added to the annual appropriation. Examples of receipts which can form part of a section 29 agreement are Commonwealth • Energy Policy Services specific purpose grants and the proceeds from the sale •ICT Industry and Community Development of assets.

• eGovernment and ICT policy. Amounts disclosed as revenue are, where applicable, net

The following outputs are no longer undertaken by DOI of returns, allowances and duties and taxes. Revenue is as a result of machinery-of-government changes: recognised for each of the Department’s major activities as follows: • Regional and Rural Strategies (i) Output revenue • Metropolitan Development Strategies Revenue from the outputs the Department provides to • Planning System Development government is recognised when those outputs have been • Planning Operations and Environmental Assessment delivered and the relevant Minister has certified delivery of those outputs in accordance with specified performance • Heritage Conservation criteria. • Regional and Urban Amenity Initiatives (ii) Public Transport Fund • Environmental Strategies and Initiatives All revenue received by the Director of Public Transport is • Local Government Sector Development retained in the Public Transport Fund pursuant to section • Governance Support 11 of the Transport Act 1983. Transport related revenue, including bus and rail revenue, is recognised in the period • Grants Funding for Public Libraries and Other Local to which it is received by the Department (refer note 5). Government Services. Where service obligations overlap financial periods, revenue is deferred and recognised on a basis (d) Acquisitions of assets representative of the delivery of the service obligation. The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given (iii) Commonwealth grants up or liabilities undertaken at the date of acquisition plus Grants payable by the Commonwealth Government are incidental costs directly attributable to the acquisition. recognised as administered revenue when the Department Assets acquired at no cost, or for nominal consideration, are gains control of the underlying assets (refer note 33). initially recognised at their fair value at the date of acquisition. Where grants are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants (e) Revenue recognition are recognised as revenue when the grant is received or All revenue received by the Department is generally required receivable. Conditional grants may be reciprocal or non- to be paid into the consolidated fund. reciprocal depending on the terms of the grant.

Revenue becomes controlled by the Department when it is (iv) Fines and fees appropriated from the consolidated fund by the Victorian As the Department does not gain control over assets Parliament and applied to the purposes defined under the arising from fines and fees, no revenue is recognised. relevant appropriations act. Additionally, the Department is The Department collects these amounts on behalf of permitted under section 29 of the Financial Management Act the Crown. Accordingly, the amounts are disclosed as 1994 to have certain receipts annotated to the annual revenues in the schedule of administered revenues and appropriation. The receipts which form part of a section 29 expenses (refer note 33). agreement are received by the Department and paid into the consolidated fund as administered revenue (note 33). At that

62 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

(v) Other revenue Revaluation decrements are recognised immediately as Revenue from other Departments is recognised when it expenses in the net result, except that, to the extent that a is received. credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the All other amounts of revenue over which the Department asset revaluation reserve. does not gain control are disclosed as administered revenue in the schedule of administered revenues and Revaluation increments and decrements are offset against one expenses. another within a class of non-current assets. During the year certain land leased to Transurban for the City (f) Receivables Link network project and land for roadworks was reclassified as All debtors are recognised at the amounts receivable as they land under roads. In accordance with accounting standards, are due for settlement at no more than 30 days from the date this land has a NIL value and the write-down of its value has of recognition. been treated as an expense.

Collectability of debtors is reviewed on an ongoing basis. (i) Depreciation of physical assets Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised when some doubt Depreciation is calculated on a straight-line basis to write off as to collection exists. the net cost or revalued amount of each depreciable asset (excluding land) over its expected useful life to the Department. (g) Inventories Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for material items. Land for resale, stores, work in progress and finished goods The expected useful lives, which are unchanged from 2001–02, are stated at the lower of cost and net realisable value. Cost are as follows: includes expenditure incurred in acquiring the inventories and bringing them to their existing condition. Net realisable value Asset category Expected useful life (years) is determined on the basis of the Department’s normal selling Buildings 55 return. Expenses associated with marketing, selling and Plant and equipment distribution are deducted to determine net realisable value. Furniture and fittings 3 to 15 (h) Revaluations of non-current assets Computer equipment 3 Computer printers 4 Subsequent to the initial recognition as assets, non-current Office machines 5 physical assets other than plant and equipment are measured Infrastructure assets at fair value. Plant and equipment are measured at cost. Station Pier 30 to 50 Revaluations are made with sufficient regularity to ensure that Road works 55 to 60 the carrying amount of each asset does not differ materially Bridges, structures and tunnels 90 to 115 from its fair value at the reporting date. Revaluations are Sound barriers 55 assessed annually and supplemented by independent Mechanical and electrical equipment 20 assessments, at least every three years. Revaluations are Landscape and urban design 20 conducted in accordance with the Department of Treasury and Finance’s Policy Paper Revaluation of Non-Current Where items of infrastructure, plant and equipment have Physical Assets (also refer note 17). separately identifiable components which are subject to regular replacement, those components are assigned useful Revaluation increments are credited directly to the asset lives distinct from the item of infrastructure assets and plant revaluation reserve, except that, to the extent that an and equipment to which they relate. increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised immediately as revenue in net result.

annual report 2002–03 63 Notes to the financial statements for the year ended 30 June 2003

(j) Leasehold improvements relevant asset, and where they relate to the replacement of a The cost of improvements to or on leasehold properties is component of an asset, in which case the costs are capitalised amortised over the unexpired period of the lease or the and depreciated in accordance with note 1(i). Other routine estimated useful life of the improvement to the Department, operating maintenance, repair costs and minor renewals are whichever is the shorter. Leasehold improvements of office also charged as expenses as incurred. assets are being amortised over 10 years. (p) Goods and services tax systems changes (k) Leased non-current assets Revenues, expenses and assets are recognised net of GST A distinction is made between finance leases which effectively except where the amount of GST incurred is not recoverable, transfer from the lessor to the lessee substantially all the risks in which case it is recognised as part of the cost of acquisition and benefits incident to ownership of leased non-current of an asset or part of an item of expense. The net amount of assets, and operating leases under which the lessor effectively GST recoverable from, or payable to, the Australian Taxation retains substantially all such risks and benefits. Office (ATO) is included as part of receivables or payables in the statement of financial position. The GST component of a The Department has not entered into any finance lease receipt or payment is recognised on a gross basis and the arrangements. amounts paid to and received from the ATO are reflected in Operating lease payments are charged to the statement of the statement of cash flows in accordance with Accounting financial performance in the periods in which they are incurred, Standard AAS 28 Statement of Cash Flows and the Financial as this represents the pattern of benefits derived from the Management Act 1994. leased assets. Costs incurred to update existing systems or to design, develop and implement new systems to deal with the goods (l) Non-current assets constructed by the Department and services tax are charged as expenses as incurred, except The cost of non-current assets constructed by the Department where they result in an enhancement of future economic includes the cost of all materials used in construction, direct benefits and are recognised as an asset. labour on the project and an appropriate proportion of variable and fixed overhead. (q) Employee benefits

(m) Trade and other creditors (payables) (i) Wages, salaries and annual leave These amounts represent liabilities for goods and services Liabilities for wages and salaries and, annual leave provided to the Department prior to the end of the financial expected to be settled within 12 months of the reporting year and which are unpaid. The amounts are unsecured and date are recognised in respect of employees’ services up are usually paid within 30 days of recognition. to the reporting date and are measured as the amounts expected to be paid when the liabilities are settled. (n) Concession fees Liabilities for non-accumulating sick leave are recognised The Administered note 33 discloses concession fee notes when the leave is taken and measured at the rates paid receivable from Transurban of $157.791 million (2002 – or payable. $129.021 million) and the concession fee revenue for the year Impact of change to Accounting Policy: In accordance of $28.77 million (1 March 2002 to 30 June 2002 – $12.016 with Australian Accounting Standards AASB 1028, the million). These amounts are shown in the Administered note to basis of measuring annual leave benefits changed from reflect the fact that the Department manages the Concession 1 July 2002, from current pay rates to the amounts fee notes on behalf of the State. expected to be paid when the liabilities are settled. The impact of the change as a result of the accounting (o) Maintenance and repairs standard change was an increase of $317,000 in the The costs of maintenance of infrastructure, property, plant and provision amount. This increase was reflected against equipment are charged as expenses as incurred, except where accumulated surplus account (also refer note 21). they extend the original useful life to the Department of the

64 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

(ii) Long-service leave phase are considered to be expenses. Costs incurred in The liability for long-service leave expected to be settled building or enhancing a website, to the extent that they within 12 months of the reporting date is recognised as represent probable future economic benefits controlled a current liability in the provision for employee benefits by the Department that can be reliably measured, are and is measured in accordance with (i) above. The liability capitalised as an asset and amortised over the period of for long-service leave expected to be settled more than the expected benefits which vary from three to five years. 12 months from the reporting date is recognised in the (s) Cash provision for employee benefits and measured as the present value of expected future payments to be made For purposes of the statement of cash flows, cash includes in respect of services provided by employees up to the short-term deposits that are readily convertible to cash on reporting date. Consideration is given to expected future hand and are subject to an insignificant risk of changes in wage and salary levels, experience of employee departures value, net of outstanding cheques yet to be presented by and periods of service. Expected future payments are the Department’s suppliers and creditors (see note 14). discounted using interest rates on national government- guaranteed securities with terms to maturity that match, (t) Capital asset charge as closely as possible, the estimated future cash outflows. The capital asset charge is imposed by the Department of Treasury and Finance and represents the opportunity cost of (iii) Superannuation capital invested in the non-current physical assets used in the The amount charged to the statement of financial provision of outputs. The charge is calculated on the carrying performance in respect of superannuation represents amount of non-current physical assets. the contributions made by the Department to the superannuation funds (also refer note 29). (u) Resources provided and received free of charge or for nominal consideration (iv) Employee benefit on-costs Contributions of resources and resources provided free of Employee benefit on-costs, including payroll tax, are charge are recognised at their fair value. Contributions in recognised and included in employee benefit liabilities and the form of services are only recognised when a fair value costs when the employee benefits to what they relate are can be reliably determined and the services would have recognised as liabilities. been purchased if not donated.

(r) Intangible assets (v) Contributed capital Consistent with UIG Abstract 38 Contributions by Owners (i) Software made to Wholly-Owned Public Sector Entities and Accounting Significant costs associated with the acquisition or and Financial reporting Bulletin 39 Accounting for Contributed development of computer software are capitalised where Capital, appropriations for additions to net assets have been the cost exceeds $50,000 (2002 – $50,000) and are designated as contributed capital. Other transfers that are in amortised on a straight line basis over the periods of the the nature of contributions or distributions have also been expected benefit, which varies from three to five years. designated as contributed capital. (ii) Web site costs (w) Rounding of amounts Costs in relation to websites controlled by the Department Amounts in the financial report have been rounded to are charged as expenses in the period in which they are the nearest thousand dollars, or in other cases, to the incurred unless they relate to the acquisition of an asset, nearest dollar. in which case they are capitalised and amortised over their period of expected benefit. Generally, costs in relation to feasibility studies during the planning phase of a web site, and ongoing costs of maintenance during the operating

annual report 2002–03 65 Notes to the financial statements for the year ended 30 June 2003

(x) Comparatives The recognition of right of the State to receive the As a result of machinery-of-government changes effective network asset (the asset) is currently being considered from 1 January 2003 (also refer note 1(a)(i)), activities and by the Accounting Profession and a cross jurisdictional amounts relating to the changes will affect the relevance of government working party but the accounting treatment the comparatives. Refer to note 3 for the details relating to has been deferred until authoritative guidance is available. the changes. Accordingly this asset is not disclosed as at 30 June 2003, Where practicable, comparative amounts are presented pending authoritative guidance or the development of and classified on a basis consistent with the current year. relevant accounting standards on the appropriate treatment in the statement of financial position and statement of The reclassifications to the 2002 figures are as follows: financial performance.

2002 2002 Note 2. Output groups of the Department previous adjusted A description of each output group undertaken by the $’000 $’000 Department during the year ended 30 June 2003 and Statement of Financial Performance – the Department objectives to which these output groups expenses from ordinary activities contribute including those relating to the machinery-of- Other services and supplies 112,662 160,518 government changes effective from 1 January 2003 Resources provided free of charge 594 4,717 (refer note 1(a)(i)), are summarised as follows: Grants paid for community and social benefit 51,669 - Value of assets written down / disposed of - 148 Infrastructure planning and policy Other expenses from ordinary activities 458 - These outputs involve the planned delivery of transport 165,383 165,383 infrastructure and travel management strategies, port development strategies and energy policy services aimed Statement of Financial Position at improving the economic and social capacity of Victoria. Current Liabilities Key elements include integrated transport planning in Payables 142,616 140,480 regional, rural and metropolitan areas; developing a forward Non-current Liabilities infrastructure investment strategy; travel demand management Prepaid lease income - 2,136 initiatives such as the TravelSMART program; initiatives to 142,616 142,616 achieve the Government’s ports policy goals; and the provision of energy policy advice to government to secure a safe, Note 17. Infrastructure, property, plant and equipment sustainable and cost-effective energy supply to the State. Land and buildings These outputs make a significant contribution to the At cost 40,153 36,753 achievement of the following Departmental objectives: At valuation 2002 36,485 39,885 76,638 76,638 • infrastructure delivery and management: deliver cost effective investment in, and management of, infrastructure (y) Right to receive assets development in Victoria An independent private sector entity, has leased land and • rural and regional development: foster prosperous Stateworks from the State and has constructed the city link and sustainable rural and regional communities through network on which it charges tolls to motorists during the the provision of essential transport, ICT and energy concession period. infrastructure The concession period has a nominal term (33.5 years) and • access and mobility: deliver a transport system that at the end of the period, the Stateworks together with the provides people with the choice to participate in a range constructed facilities will be returned to the State. of activities to meet their changing needs

66 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

• public safety: improve transport, marine and energy sector • infrastructure delivery and management: deliver cost safety and reduce the incidence, severity and cost of effective investment in, and management of, infrastructure accidents and incidents development in Victoria

• secure and sustainable energy supply: provide policy • rural and regional development: foster prosperous and advice to deliver an affordable, efficient and safe energy sustainable rural and regional communities through the supply to the State provision of essential transport, ICT and energy infrastructure • seamless freight and logistics systems: facilitate the development of an integrated and seamless freight and • organisational capability building: build the Department’s logistics system that enhances global competitiveness and capability and capacity to deliver high-quality and meets the needs of business efficient services.

• organisational capability building: build the Department’s Balanced planning and environmental systems capability and capacity to deliver high-quality and These outputs involved the provision of a world-class planning efficient services. system that supports development across the State in Prior to machinery-of-government changes, these and other accordance with triple-bottom-line principles, and which is fair, related activities were grouped under the title of Strategic transparent, accountable, cost effective and provides certainty Land Use and Infrastructure Planning essentially focussing on to users. Partnerships between community, local government the planned delivery of land use and infrastructure strategies and business will also characterise the system. aimed to improve the economic and social capacity of Victoria. They also involved facilitation of residential, commercial and Information and communication technologies (ICT) industrial developments, and the provision of urban design, and multimedia heritage, environmental assessment services and programs. As a component of machinery-of-government changes, These outputs made a significant contribution to the ICT and multimedia was included as part of DOI’s new output achievement of the following objectives: structure from 1 January 2003. These outputs focus on a range • Liveable Communities: enhance the liveability of of activities designed to enhance Victoria’s strengths in the key communities across Victoria areas of ICT. In addition to the strong policy and strategy development role, a number of strategic programs are being • Local Governance: develop a stronger and more effective delivered in the areas of ICT infrastructure, industry and local government sector in Victoria that is responsive community development and eGovernment. These activities to community expectations and provides leadership at include the continued implementation of the Government’s the local level. agenda as outlined in the Growing Tomorrow’s Industries As of 1 January 2003, activity under this output was Today, Regional Connections, and Putting People at the transferred to DSE, as part of machinery-of-government Centre strategies. A priority will be finalising and implementing changes. As such, activities under this output are included the Government’s policy on broadband. in the Department’s financial statements for the period Achievements relating to new investments facilitated and 1 July to 31 December 2002 only. announced, and jobs derived from investments facilitated will be reported through the Investment Facilitation and Attraction Supporting local government output of DIIRD. These outputs ensured that there was an effective and accountable system of local government, which is based on These outputs make a significant contribution to the good governance, quality services, effective infrastructure, achievement of the following Departmental objectives: management and community accountability. Delivery of • Connected Victorians: deliver an innovative, accessible outputs required constructive intra-government relations information and communication technology environment and co-ordination to deliver on common outcomes. that shares the benefits of new technologies across the entire community and drives economic growth annual report 2002–03 67 Notes to the financial statements for the year ended 30 June 2003

These outputs made a significant contribution to the Regional and rural transport services achievement of the following objectives: These outputs involve the delivery of quality public transport • Local Governance: develop a stronger and more effective services to regional and rural areas of Victoria through local government sector in Victoria that is responsive to contractual arrangements with private operators. These community expectations and provides leadership at the services include intrastate and interstate rail services, route local level and school bus services. Contracts with private operators are managed to ensure that service provision is in accordance with • Liveable Communities: enhance the liveability of contractually agreed standards and that committed investment communities across Victoria levels for rolling stock and new buses are delivered. • Infrastructure Delivery and Management: deliver cost- These outputs make a significant contribution to the effective investment in and management of infrastructure achievement of the following Departmental objectives: development in Victoria. • rural and regional development: foster prosperous and As of 1 January 2003, activity under this output was transferred sustainable rural and regional communities through the to DVC, as part of machinery-of-government changes. As such, provision of essential transport, ICT and energy infrastructure activities under this output are included in the Department’s financial statements for the period 1 July to 31 December • access and mobility: deliver a transport system that 2002 only. provides people with the choice to participate in a range of activities to meet their changing needs Ports and intermodal gateways • public safety: improve transport, marine and energy sector These outputs involve initiatives to improve the efficiency, safety and reduce the incidence, severity and cost of accessibility and usability of the transport system by addressing accidents and incidents the interfaces of different components of this multifaceted system. They cover the connections between ports, rail and • infrastructure delivery and management: deliver cost road transport and airports in metropolitan, regional and rural effective investment in, and management of, infrastructure areas, and aim to maximise the use of existing transport development in Victoria. infrastructure across the State. Regional and rural transport infrastructure These outputs make a significant contribution to the These outputs involve the development and maintenance of achievement of the following Departmental objectives: regional and rural transport networks by implementing major • seamless freight and logistics systems: facilitate the road projects, regional and rural rail projects and monitoring development of an integrated and seamless freight and the quality of rail infrastructure as defined in the contracts with logistics system that enhances global competitiveness and private operators. They facilitate the movement of goods and meets the needs of business passengers in an efficient and timely manner.

• access and mobility: deliver a transport system that These outputs make a significant contribution to the provides people with the choice to participate in a range achievement of the following Departmental objectives: of activities to meet their changing needs • infrastructure delivery and management: deliver cost- • infrastructure delivery and management: deliver cost effective investment in, and management of, infrastructure effective investment in, and management of, infrastructure development in Victoria development in Victoria • public safety: improve transport, marine and energy sector • rural and regional development: foster prosperous and safety and reduce the incidence, severity and cost of sustainable rural and regional communities through the accidents and incidents provision of essential transport, ICT and energy • rural and regional development: foster prosperous and infrastructure sustainable rural and regional communities through the • organisational capability building: build the Department’s provision of essential transport, ICT and energy capability and capacity to deliver high-quality and efficient infrastructure services.

68 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

• seamless freight and logistics systems: facilitate the These outputs make a significant contribution to the development of an integrated and seamless freight and achievement of the following Departmental objectives: logistics system that enhances global competitiveness • infrastructure delivery and management: deliver cost and meets the needs of business effective investment in, and management of, infrastructure • access and mobility: deliver a transport system that development in Victoria provides people with the choice to participate in a range • public safety: improve transport, marine and energy sector of activities to meet their changing needs safety and reduce the incidence, severity and cost of • organisational capability building: build the Department’s accidents and incidents capability and capacity to deliver high-quality and • seamless freight and logistics systems: facilitate the efficient services. development of an integrated and seamless freight and A review of Vic Roads outputs was conducted during the year, logistics system that enhances global competitiveness and which led to the creation of a new output, Regional Road Projects. meets the needs of business This output merged the two previous outputs, Major Arterial • access and mobility: deliver a transport system that Road Projects and Regional Road Network Maintenance. provides people with the choice to participate in a range Metropolitan transport services of activities to meet their changing needs These outputs involve the delivery of a quality public • organisational capability building: build the Department’s transport service to the metropolitan area through contractual capability and capacity to deliver high-quality and efficient arrangements with private operators. These services include services. rail, tram and routed buses. Contracts with private operators are managed to ensure that service provision is in accordance Transport safety and accessibility with contractually agreed standards and that the committed These outputs involve safety initiatives for road, public investment levels for rolling stock and new buses are delivered. transport and waterway users. This is provided through the application of performance-based standards to regulate These outputs make a significant contribution to the transport providers, and to reduce cost of regulations on achievement of the following Departmental objectives: business, while raising safety and access levels for the • public safety: improve transport, marine and energy community through improved transport regulation, reform, sector safety and reduce the incidence, severity and education, environmental response strategies and prevention cost of accidents and incidents programs. It includes services to improve accessibility and subsidised taxi travel for the disabled. • access and mobility: deliver a transport system that provides people with the choice to participate in a These outputs make a significant contribution to the range of activities to meet their changing needs achievement of the following Departmental objectives:

• infrastructure delivery and management: deliver cost- • public safety: improve transport, marine and energy sector effective investment in, and management of, infrastructure safety and reduce the incidence, severity and cost of development in Victoria. accidents and incidents

Metropolitan Transport Infrastructure • access and mobility: deliver a transport system that provides people with the choice to participate in a range These outputs involve the development and maintenance of activities to meet their changing needs of metropolitan road networks and implementation of major civic and road projects, the management and delivery of • infrastructure delivery and management: deliver cost major public construction and land development projects, effective investment in, and management of, infrastructure and the development of metropolitan rail and tram development in Victoria infrastructure as set out in the contracts with the private • organisational capability building: build the Department’s operators. They deliver major parts of the transport network capability and capacity to deliver high-quality and efficient in the metropolitan area and are aimed at facilitating the services. movement of goods and passengers in an efficient, timely and safe manner to their destinations. annual report 2002–03 69 Notes to the financial statements for the year ended 30 June 2003

Note 2. Output groups of the Department (continued) Output groups schedule – Controlled Revenue and Expenses for the year ended 30 June 2003

Infrastructure Balanced Planning and Supporting Ports and Regional and Planning and Policy Environmental Local Intermodal Rural Transport Systems Government Gateways Services 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

REVENUE FROM ORDINARY ACTIVITIES Output appropriations 16,442 8,618 12,026 51,565 24,087 41,445 50,499 15,096 284,577 275,629 Revenue from other parties - - - 54 - - - - 61,196 71,171 Total revenue 16,442 8,618 12,026 51,619 24,087 41,445 50,499 15,096 345,773 346,800

EXPENSES FROM ORDINARY ACTIVITIES Rail services ------10,095 1,372 113,161 122,332 Road services - - 786 2,527 1,818 5,785 - 331 - - Bus services ------6,371 7,087 173,470 159,639 Value of assets written down/disposed of 4 1 24 19 5 4 8 - 200 1 Other services and supplies 10,265 4,323 7,330 32,696 20,645 30,637 16,850 3,484 10,394 5,752 Assets transferred to other agencies ------18 - - - Capital asset charge 107 544 220 484 19 35 2,865 2,897 1,320 1,780 Employee benefits 5,581 3,980 9,255 17,810 1,754 3,655 2,453 1,756 6,136 5,636 Depreciation and amortisation expense 188 417 866 1,690 64 137 840 747 1,015 966 Resources provided free of charge 2 80 4 10 1 2 854 1,026 93 98 Total expenditure 16,147 9,345 18,485 55,236 24,306 40,253 40,354 18,700 305,789 296,204 Net result for reporting period 295 (728) (6,459) (3,617) (219) 1,192 10,145 (3,604) 39,984 50,596 Accumulated surplus transferred to Contributed Capital as part of machinery–of–government - - (412) ------Adjustment due to Accounting Standard change (AASB 1028) - - (260) - (57) - - - - - Net (decrease) increase in asset revaluation reserve - - (473) 3,400 (105) - - - - - Total revenues, expenses and revaluation adjustments recognised directly in equity - - (1,145) 3,400 (162) - - - - - Total changes in equity other than those resulting from transactions with Victorian Government in its capacity as owner 295 (728) (7,604) (217) (381) 1,192 10,145 (3,604) 39,984 50,596

70 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Regional and Rural Metro Transport Metro Transport Transport Safety ICT and Multimedia Total Transport Infrastructure Services Infrastructure and Accessibility

2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

411,470 422,032 1,020,050 956,579 375,583 423,677 229,397 211,445 18,324 - 2,442,455 2,406,086 -- 227,434 105,834 2,478 4,043 - - - - 291,108 181,102 411,470 422,032 1,247,484 1,062,413 378,061 427,720 229,397 211,445 18,324 - 2,733,563 2,587,188

1,392 1,811 870,313 820,290 1,445 3,308 1,452 - - - 997,858 949,113 279,998 326,252 - - 365,574 401,420 162,889 173,607 - - 811,065 909,922 1 - 268,685 237,312 16 - 41 2,261 - - 448,584 406,299 9 1 1,634 2 257,172 120 35 1 25 - 259,116 148 3,708 12,822 19,580 13,559 3,820 5,886 60,192 51,359 9,127 - 161,911 160,518 35 - - - 24 11,669 - - - - 77 11,669 372 480 3,416 3,989 11,826 11,351 431 354 291 - 20,867 21,914 2,273 5,934 14,663 11,075 5,581 1,897 8,597 6,487 4,722 - 61,015 58,230 3,980 2,006 2,797 2,209 1,371 301 1,448 906 129 - 12,698 9,379 1,620 1,912 294 275 1,179 1,302 32 12 2 - 4,081 4,717 293,388 351,218 1,181,382 1,088,711 648,008 437,254 235,117 234,987 14,296 - 2,777,272 2,531,909 118,082 70,814 66,102 (26,298) (269,947) (9,534) (5,720) (23,542) 4,028 - (43,709) 55,279

------(412) -

------(317) -

- - - - (7,068)26,303 - - - - (7,646)29,703

- - - - (7,068)26,303 - - - - (8,375)29,703

118,082 70,814 66,102 (26,298) (277,015) 16,769 (5,720) (23,542) 4,028 - (52,084) 84,982

annual report 2002–03 71 Notes to the financial statements for the year ended 30 June 2003

Note 2. Output groups of the Department (continued) Output groups schedule – Controlled Assets and Liabilities for the year ended 30 June 2003

Infrastructure Balanced Planning and Supporting Ports and Regional and Planning and Policy Environmental Local Intermodal Rural Transport Systems Government Gateways Services 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 CURRENT ASSETS Cash assets 18 - - 395 - 1,607 2,936 504 68,654 31,408 Receivables 567 115 - 96 - 1,003 600 81 23,980 23,893 Prepayments 3 8 - 48 - 20 8 10 94 146 Inventories ------Total current assets 588 122 - 540 - 2,630 3,544 595 92,728 55,448

NON-CURRENT ASSETS Receivables 311 71 - 257 - 191 374 95 2,057 1,951 Inventories ------Infrastructure, property plant and equipment 903 2,270 - 6,381 - 504 37,770 35,493 4,703 22,694 Intangible assets 9 1,076 - 1,009 - 14 181 707 1,246 1,402 Loans - - - - - 2,000 - - - - Total non-current assets 1,223 3,417 - 7,647 - 2,709 38,325 36,295 8,006 26,047 TOTAL ASSETS 1,811 3,540 - 8,186 - 5,338 41,869 36,890 100,734 81,493

CURRENT LIABILITIES Payables 585 413 - 1,492 - 1,107 1,529 780 31,691 20,641 Provisions for employee benefits 27 663 - 1,976 - 386 59 245 657 610 Total current liabilities 612 1,076 - 3,468 - 1,493 1,588 1,025 32,348 21,251

NON-CURRENT LIABILITIES Provisions for employee benefits 45 1,160 - 3,770 - 676 100 428 1,122 1,068 Loans and advances from Victorian General Government ------Prepaid lease income 11 6 - 23 - 17 24 12 268 314 Total non-current liabilities 56 1,166 - 3,793 - 693 124 440 1,390 1,382 TOTAL LIABILITIES 668 2,242 - 7,261 - 2,186 1,712 1,465 33,738 22,633 NET ASSETS 1,143 1,298 - 925 - 3,152 40,157 35,425 66,996 58,860

72 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Regional and Rural Metro Transport Metro Transport Transport Safety ICT and Multimedia Total Transport Infrastructure Services Infrastructure and Accessibility

2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

51,174 35,935 274,176 125,632 115,989 41,361 367 25,126 - - 513,314 261,968 26,507 2,349 84,349 95,393 28,961 14,815 16,968 642 16,419 - 198,351 138,387 120 159 319 535 100 171 78 133 - - 722 1,230 - - - - 3,431 3,521 - - - - 3,431 3,521 77,801 38,442 358,844 221,561 148,481 59,867 17,413 25,900 16,419 - 715,818 405,106

1,977 1,507 4,730 7,324 3,435 1,613 1,364 1,252 - - 14,248 14,261 ----3,829 5,352 ---- 3,829 5,352 980 5,454 13,302 52,658 135,318 359,961 1,789 4,441 7,977 - 202,742 489,856 246 34 3,392 2,939 660 68 3,520 3,140 29 - 9,283 10,389 ------2,000 3,203 6,995 21,424 62,921 143,242 366,994 6,673 8,833 8,006 - 230,102 521,858 81,004 45,439 380,268 284,483 291,723 426,861 24,086 34,733 24,425 - 945,920 926,964

19,105 8,741 117,919 79,772 20,410 20,272 12,220 7,262 252 - 203,711 140,480 864 704 2,246 1,169 1,089 381 556 627 591 - 6,089 6,761 19,969 9,445 120,165 80,941 21,499 20,653 12,776 7,889 843 - 209,800 147,241

1,475 1,232 3,835 2,046 1,324 256 949 1,098 1,182 - 10,032 11,734

----15,300 -----15,300 - 352 133 915 1,213 250 308 227 110 - - 2,047 2,136 1,827 1,365 4,750 3,259 16,874 564 1,176 1,208 1,182 - 27,379 13,870 21,796 10,810 124,915 84,200 38,373 21,217 13,952 9,097 2,025 - 237,179 161,111 59,208 34,629 255,353 200,283 253,350 405,644 10,134 25,636 22,400 - 708,741 765,853

annual report 2002–03 73 Notes to the financial statements for the year ended 30 June 2003

Note 3. Restructuring of administrative arrangements

Machinery-of-government changes effective from 1 January 2003 The restructuring of Administrative Arrangements (also referred to as machinery-of-government changes) became effective from 1 January 2003. (Also refer note 1(a)(i)).

Net assets assumed by DOI as a result of the transfer of these outputs are recognised in the statement of financial position at the carrying amount of those assets in the transferor department’s statement of financial position immediately prior to transfer.

The net asset transfers are treated as a contribution of capital by the Crown in compliance with the accounting requirements of Urgent Issues Group Abstract 38 Contributions by Owners Made to Wholly-Owned Public Sector Entities and Accounting and Financial Reporting Bulletin No. 39 Accounting for Contributed Capital. Where the transfer to and from DOI resulted in net liabilities, the relevant amount has been treated as an expense and revenue respectively in DOI’s statement of financial performance.

Details of the net asset transfers and net capital contributions by the relevant transferor and transferee departments are provided in the tables under 3(a), 3(b), 3(c) and 3(d) below.

Comparatives are not applicable to the machinery-of-government changes which took place in December 2002.

Outputs which existed in the transferor department prior to 1 January 2003 were subject to change in the transferee department as a result of machinery-of-government changes. As a result, expenses and revenues relating to similar but not exact outputs prior to and after the date of the machinery-of-government change cannot be combined and totalled to correctly reflect expenses and revenues for the full year.

Output movements into DOI 3(a) Treatment of Net Liabilities received 2003 $’000 $’000 In respect of the activities assumed, the following assets and liabilities were recognised by DOI from DSE at the date of transfer: Output – Energy Policy Services Assets Receivables 218 Liabilities Payables (13) Provisions (205) (218) Net Capital Contribution from the Crown -

74 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Output movements into DOI 3(b) Net Capital Contributions from the Crown 2003 $’000 $’000 In respect of the activities assumed, the following assets and liabilities were recognised by DOI from DIIRD at the date of transfer: Output – Information and Communication, Technologies and Multimedia Assets Cash 486 Receivables 887 Buildings 22 Plant and equipment 312 Work in progress 2,566 4,273 Liabilities Provisions (856) Net Capital Contribution from the Crown 3,417

Output movements out of DOI 3(c) Treatment of Net Liabilities relinquished 2003 $’000 $’000 In respect of the activities relinquished, the following assets and liabilities were transferred from DOI to DVC: Output – Local Government Services Assets Cash on hand 1 Plant and equipment 152 153 Liabilities Payables (10) Provisions (692) (702) Net liabilities (treated as a revenue item) (549)

3(d) Net Capital Contributions to the Crown 2003 $’000 $’000 In respect of the activities relinquished, the following assets and liabilities were transferred from DOI to DSE: Output – Balanced Planning and Environmental Systems and part of Strategic Land Use and Infrastructure Planning Assets Cash and investments 654 Receivables 4,102 Land and buildings 31,045 Plant and equipment 1,185 Cultural and intangible assets 774 Work in progress 146 37,906 Liabilities Provisions (5,413) Net Capital Contribution to the Crown 32,493

annual report 2002–03 75 Notes to the financial statements for the year ended 30 June 2003

Note 4. Major Projects Victoria (refer also note 1(a)(iii))

Land Sales The activities of Major Projects Victoria (MPV) includes land sales from nominated property development projects the proceeds from which are remitted directly into the consolidated fund and are therefore reported as administered items in the Departments financial statements (refer note 33 Administered Items). The level of settlements realised on these residential developments and land sales are slowly diminishing as these projects are approaching completion.

Project development and construction management for sponsor agencies MPV, under delegated authority from the ‘Secretary to the Department of Infrastructure’ manages the Government’s interest in delivering major projects, drawing on funds appropriated to sponsor agencies.

Completed projects are handed over to the appropriate sponsor agency responsible for occupancy and use of the asset.

Capital works expenditure undertaken during the reporting period by MPV has been included in the statement of cash flows and in the sponsor agencies’ accounts as either completed works, or works in progress. While the statement of financial performance does not include the income or expenditure of sponsor agencies, the statement of financial position does reflect funds owing for project works and monies held on behalf of sponsor agencies. The following summary represents sponsor agencies where capital expenditures have been undertaken by MPV during the year.

Sponsor agency 2003 Period 5 March 2002 to 30 June 2002 $’000 $’000

Department of Premier and Cabinet 66,870 44,097 Department of Human Services 42,955 - Department of Innovation, Industry and Regional Development 11,778 558 Department of Primary Industries 4,164 - Department of Victorian Communities 1,867 2,606 (previously the Department of Tourism, Sport and the Commonwealth Games) Other 127 - 127,761 47,261* * MPV transferred to DOI from DIIRD on 5 March 2002.

Feasibility studies MPV undertakes feasibility studies and preliminary appraisals on projects requested by government prior to projects being nominated.

76 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 5. Revenue Revenue by source Note Operating Non-operating 2003 2002 2003 2002 $’000 $’000 $’000 $’000

Revenue from government Output appropriations 2,442,455 2,406,086 - - 2,442,455 2,406,086 - -

Revenue from other parties Payment from National Express 26 135,000 - - - Revenue from other Departments 77,911 76,927 - - Transport-related revenue 64,200 55,198 - - Other revenue 8,656 2,126 - - Assets received free of charge 2,057 - - - Proceeds from sale of investment in National Rail Corporation - 44,644 - - Interest --3,284 2,207 287,824 178,895 3,284 2,207 Total revenue 2,730,279 2,584,981 3,284 2,207

annual report 2002–03 77 Notes to the financial statements for the year ended 30 June 2003

Note 6. Summary of compliance with annual parliamentary appropriations The following table discloses the details of the various parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

Appropriation Act Financial

Annual Payments from Section 3(1) Section 29 Section 30 appropriation advance to Treasurer $’000 $’000 $’000 $’000 $’000 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 Controlled Provision for outputs 2,276,491 2,102,715 33,533 81,162 - 2,463 227,266 269,051 10,902 (25,300) Additions to net assets 299,883 210,701 ------(10,902) 25,300

Administered Payments made on behalf of the State 16,720 11,383 8,000 ------

Total 2,593,094 2,324,799 41,533 81,162 - 2,463 227,266 269,051 - -

78 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Management Act 1994 Administrative Arrangement Act 1983

Section 32 Section 35 Machinery–of– Total Parliamentary Appropriations Variance government Authority applied $’000 $’000 $’000 $’000 $’000 $’000 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002

36,994 12,989 3,420 - (7,790) - 2,580,816 2,443,080 2,442,455 2,406,086 138,361 36,994 49,729 6,100 18,021 -19,110 - 375,841 242,101 221,057 192,372 154,784 49,729

----(2,890) - 21,830 11,383 21,526 10,198 304 1,185

86,723 19,089 21,441 - 8,430 - 2,978,487 2,696,564 2,685,038 2,608,656 293,449 87,908

annual report 2002–03 79 Notes to the financial statements for the year ended 30 June 2003

Note 7. Rail services Notes 2003 2002 $’000 $’000

Rail system operating and related payments 476,958 418,493 Grants associated with the capital asset charge 11 501,000 489,000 Interim Operating Agreements payments (note a) 19,900 - Settlement payment to Franchisees (note b) - 41,620 997,858 949,113

Note (a)

In December 2002, the Government signed Interim Operating Agreements with Connex Trains and Yarra Trams to enable them to manage and finance the businesses and to provide for an orderly and timely competitive tender of the metropolitan train and tram businesses. Note (b)

In February 2002, the Government reached an interim agreement with the public transport franchisees for payment to settle various contractual claims and disputes.

Note 8. Value of assets written down / disposed of 2003 2002 $’000 $’000 City Link project assets written off (note a) Stateworks 156,871 - Bridges 47,483 - Land under roads 46,225 - Surplus land 2,888 -

Other 5,649 148

259,116 148

Note (a)

Under sections 38 and 39 of the Melbourne City Link (Miscellaneous Amendments) Act 2000, the Melbourne City Link Authority (MCLA) was wound up on 28 February 2002. Sections 6A and 6B of the Melbourne City Link Act 1995 established the position of the Office of Director, Melbourne City Link and conferred on the Director the statutory functions to manage the City Link arrangements on behalf of the State. The transfer of all assets and liabilities from the former MCLA to the Office of Director, Melbourne City Link took place on 1 March 2002.

The write off of the City Link assets created and acquired by the State, namely Stateworks and Bridges, is required to reflect Transurban’s ‘control’ of these assets as part of the City Link project in accordance with Accounting Standards. Further ‘land under roads’ is deemed to have a nil value under Accounting Standards and accordingly has been written off.

80 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 9. Other services and supplies

Notes 2003 2002 $’000 $’000

Multipurpose taxi program 42,417 39,295 Grants paid for community and social benefits (note a) 36,324 51,669 Administration and information technology 18,868 18,203 Insurance, legal and internal audit fees 11,463 4,681 Grants to other agencies 11,000 - Occupancy 8,293 7,260 Marine services (payment to the Marine Board of Victoria) (note b) - 2,959 Other 33,546 36,451 Total other services and supplies 161,911 160,518

Note (a)

Grants paid for community and social benefits relate to various community activities which generally involve short-term programs for planning, local government, transport, marine safety and other activities. Various benefits have reduced as a result of machinery- of-government changes. Note (b)

Funding to the Marine Board of Victoria to 6 February 2002 (date of abolition).

Note 10. Assets transferred to other agencies 2003 2002 $’000 $’000

Transfer to Melbourne Olympic Parks Trust 77 11,669 77 11,669

Note 11. Capital asset charge Capital asset charge is a cost levied by the Department of Treasury and Finance to reflect the ‘commercial’ cost to the Department if funding for capital purposes had to be borrowed rather than provided by the Government.

For the 2002/03 financial year, the capital asset charge was generally based on 8 per cent of the net written-down value of assets (2002 – 8 per cent).

annual report 2002–03 81 Notes to the financial statements for the year ended 30 June 2003

Note 12. Result from ordinary activities Note 2003 2002 $’000 $’000

Net gains and expenses The net result for the reporting period includes the following specific net gains and expenses:

Expenses Employee benefits Salary and wages 44,708 42,040 Superannuation (excluding salary sacrifice) 4,619 4,046 Annual leave and long-service leave expense 5,922 6,224 Other on-costs (fringe benefits tax, payroll tax and workcover levy) 5,766 5,920 Total employee benefits 61,015 58,230

Depreciation Buildings 106 156 Plant and equipment 3,231 3,177 Infrastructure assets 4,521 1,937 Total depreciation 7,858 5,270

Amortisation Leasehold improvements 1,932 1,562 Intangible assets 2,908 2,547 Total amortisation 4,840 4,109 Total depreciation and amortisation 12,698 9,379

Value of assets written-down/disposed of 8 259,116 148

Rental expense relating to operating leases Minimum lease payments 8,293 7,260

82 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 13. Resources provided free of charge 2003 2002 $'000 $'000

Provided to Spencer Street Station Authority 3,535 4,123 Provided to Heritage Council 546 594 4,081 4,717

Note 14. Cash assets 2003 2002 $’000 $’000 Cash at bank and on hand 18,714 6,295 Funds held in trust Short-term deposits 77,404 44,911 Cash 417,196 210,762 513,314 261,968

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances as above 513,314 261,968 Balances per statement of cash flows 513,314 261,968

Funds held in trust – short-term deposits The deposits are bearing floating interest rates between 4 per cent and 5 per cent (2002 – 4 per cent and 5 per cent)

annual report 2002–03 83 Notes to the financial statements for the year ended 30 June 2003

Note 15. Receivables 2003 2002 $’000 $’000 Current Amounts owing from Victorian Government 151,416 104,878 Other debtors 46,935 33,509 198,351 138,387 Non-current Amounts owing from Victorian Government 11,802 11,424 Other debtors 2,446 2,837 14,248 14,261 Aggregate carrying amount of receivables Current 198,351 138,387 Non-current 14,248 14,261 212,599 152,648

Note 16. Inventories 2003 2002 $’000 $’000

Current Land inventory – at cost 3,431 3,521 3,431 3,521 Non-current Land inventory – at cost 3,829 5,352 3,829 5,352 Aggregate carrying amount of inventories Current 3,431 3,521 Non-current 3,829 5,352 7,260 8,873

The land inventory is owned by the body corporate, Secretary to the Department of Infrastructure. The body corporate activities include the functions performed by Major Projects Victoria.

84 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 17. Infrastructure, property, plant and equipment 2003 2002 $’000 $’000 Land and buildings Land – at cost 1,700 36,753 Land – at independent valuation 2003 52,004 - Land – at independent valuation 2002 39,885 39,885 Land – at independent valuation 2001 36,740 36,740 Land – at independent valuation 2000 - 858 Land – at independent valuation 1999 5,050 13,755 Land – at independent valuation 1998 - 28,867 Land – at independent valuation 1997 - 62,266 135,379 219,124 Buildings – at cost 5,236 6,726 Buildings – at independent valuation 2001 2,875 2,875 Buildings – at independent valuation 1999 -3,258 Less: accumulated depreciation – at cost -(79) Less: accumulated depreciation – at valuation (106) (291) 8,005 12,489 Total land and buildings 143,384 231,613

Infrastructure Infrastructure – at cost 4,622 163,221 Infrastructure - at independent valuation 2001 19,435 19,435 Infrastructure - at independent valuation 1997 - 48,583 Less: accumulated depreciation – at cost (52) (1,001) Less: accumulated depreciation – at valuation (1,287) (937) Total infrastructure 22,718 229,301

Plant and equipment At cost 16,180 20,799 Less: accumulated depreciation – at cost (8,885) (12,914) 7,295 7,885 Leasehold improvement office assets – at cost 15,572 15,228 Less: accumulated amortisation – at cost (7,436) (5,902) 8,136 9,326 Total plant and equipment 15,431 17,211

Work in progress (software and construction) Infrastructure and other assets 21,209 11,393 Total work in progress 21,209 11,393

Heritage assets At cost -20 At independent valuation 1999 - 318 Total Heritage assets - 338 Total net written-down value 202,742 489,856

annual report 2002–03 85 Notes to the financial statements for the year ended 30 June 2003

Note 17. Infrastructure, property, plant and equipment (continued)

Valuations The basis of valuation of land and buildings adopted in 2002 and 2003 is fair value being the current replacement cost of the asset’s remaining future economic benefits. The latest revaluations as at 30 June 2003 and 30 June 2002 were based on independent assessments by the Valuer-General.

The basis of valuation of infrastructure, land and buildings in 2001 is deprival value being the loss an entity would incur if deprived of the service potential embodied in the asset. The valuation was based on independent assessments.

Other infrastructure, land and buildings shown ‘at cost’ or at 1999 valuation is subject to a progressive revaluation over the period commencing as at 30 June 2003 with a completion date of 30 June 2005. The approach in determining which items within the class are revalued in each reporting period is based on an assessment of the age of the asset and the date of the previous revaluation. As a result, the oldest assets that are carried at cost will be revalued in the earlier years of the plan, with the assets previously revalued in 1999, being revalued prior to June 2005.

Plant and equipment is valued at cost (also refer note 1(h)).

Reconciliation Reconciliations of the carry amounts of each class of infrastructure, property, plant, and equipment at the beginning and end of the current financial year are set out below. Freehold Building Plant and Infrastructure Work in Heritage land Buildings leasehold equipment assets progress* assets Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2003 Carrying amount at start of year 219,124 12,489 9,326 7,885 229,301 11,393 338 489,856 Additions - - 853 3,756 2,073 13,571 - 20,253 Disposals/Write-offs (49,903) (30) (172) (89) (204,428) (4,494) - (259,116) Net loss through restructuring (26,697) (4,348) 21 (1,025) - 1,985 (338) (30,402) Revaluation reserve increments/ (decrements) (note 21(c)) (7,068) ------(7,068) Reallocation of WIP - - 40 - 292 (332) - - Depreciation/ amortisation expense - (106) (1,932) (3,232) (4,520) - - (9,790) Transfer to other agencies (refer note 10) (77) ------(77) Transferred to intangible assets - - - - - (914) - (914) Carrying amount at end of year 135,379 8,005 8,136 7,295 22,718 21,209 - 202,742

* Includes software in progress and construction in progress.

86 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 18. Intangible assets 2003 2002 $’000 $’000 Software 15,859 15,019 Less: accumulated amortisation (6,576) (4,630) 9,283 10,389

Note 19. Payables 2003 2002 $’000 $’000 Trade creditors and accruals 202,302 136,015 Unearned/Prepaid income 1,409 4,465 203,711 140,480

Note 20. Provisions 2003 2002 $’000 $’000 Current Employee benefits Annual leave 3,332 3,497 Long-service leave 1,354 1,558 Accrued performance incentive 1,403 1,706 6,089 6,761 Non-current Employee benefits Annual leave 1,421 1,590 Long-service leave 8,611 10,144 10,032 11,734

Aggregate carrying amount of provisions Current 6,089 6,761 Non-current 10,032 11,734 Employee benefits 16,121 18,495

annual report 2002–03 87 Notes to the financial statements for the year ended 30 June 2003

Note 21. Equity and movements in equity 2003 2002 $’000 $’000 (a) Contributed capital Balance 1 July 513,096 - Accumulated surplus at beginning of the financial year transferred to contributed capital - 132,306 Accumulated surplus and reserves transferred to contributed capital as part of machinery–of–government 990 - Net capital contributed upon restructure (refer note 3) (29,076) 359,688 Capital contribution by Victorian Government (appropriation) (refer note 6) 221,057 192,373 Capital contribution by Victorian Government (other) 200 2,593 Capital contributions to agencies within the Infrastructure portfolio * (198,199) (173,864) Balance 30 June 508,068 513,096 (b) Accumulated surplus Accumulated surplus at the beginning of the financial year 192,181 268,936 Accumulated surplus transferred to contributed capital as part of machinery-of-government (412) - Adjustment due to accounting standard change (AASB 1028) (317) - Transfer from asset revaluation reserve on 1 July 2002 - 272 Accumulated surplus on 1 July 2002 transferred to contributed capital - (132,306) Adjusted opening balance at the beginning of the financial year 191,452 136,902 Net result (43,709) 55,279 Balance 30 June 147,743 192,181 (c) Reserves Asset revaluation reserve 52,930 60,576 52,930 60,576 Movements Asset revaluation reserve Balance 1 July 60,576 30,873 Asset revaluation reserve transferred to contributed capital as part of machinery-of-government (578) (272) Adjusted opening balance at the beginning of the financial year 59,998 30,601 Decrement on revaluation of land during the year (7,068) - Increment on revaluation of land during the year - 29,975 Balance 30 June 52,930 60,576 (d) Nature and purpose of reserves Asset revaluation reserve 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(h). (e) Summary of equity Total equity at the beginning of the financial year 765,853 299,809 Net contributions of equity (5,028) 380,790 Total changes in equity recognised in the statement of financial performance (52,084) 84,982 Transfer between asset revaluation reserve and accumulated surplus - 272 Total equity at the end of the financial year 708,741 765,853

* Capital contributions to agencies within the Infrastructure portfolio: Road services 48,300 108,547 Rail services (VicTrack) 149,899 62,067 Marine services -1,219 Other services (former Melbourne City Link land deemed surplus to the City Link project transferred to other entities) -2,031 198,199 173,864 88 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 22. Financial instruments (a) Credit risk exposures The credit risk on financial assets of the Department which have been recognised on the statement of financial position is generally the carrying amount, net of any provisions for doubtful debts. (b) Interest rate risk exposures The Department’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements.

Exposures arise predominantly from assets bearing variable interest rates as the Department intends to hold fixed rate assets to maturity. (c) Interest rate risk exposures

Fixed interest maturing in:

2003 Floating 1 year Over 1 More than Non- Total interest rate or less to 5 years 5 years interest bearing Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash assets 14 96,118 - - - 417,196* 513,314 Receivables 15 - - - - 212,599 212,599 Loans ------96,118 - - - 629,795 725,913

Weighted average interest rate 4.5%

Financial liabilities Payables 19 - - - - 203,711 203,711 - - - - 203,711 203,711

Net financial assets 96,118 - - - 426,084 522,202

Fixed interest maturing in:

2002 Floating 1 year Over 1 More than Non- Total interest rate or less to 5 years 5 years Interest bearing Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash assets 14 51,206 - - - 210,762* 261,968 Receivables 15 ----152,648 152,648 Loans ----2,0002,000 51,206 - - - 365,410 416,616

Weighted average interest rate 4.5%

Financial liabilities Payables 19 ----142,616 142,616 Net financial assets 51,206 - - - 222,794 274,000

*Any interest earned on cash assets held by the Department of Treasury and Finance on behalf of the Department of Infrastructure is accounted for by the Department of Treasury and Finance.

annual report 2002–03 89 Notes to the financial statements for the year ended 30 June 2003

Note 22. Financial Instruments (continued) (d) Net fair value of financial assets and liabilities (i) On-statement of financial position The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Department approximates their carrying amounts.

The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists.

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

2003 2002 Carrying amount Net fair value Carrying amount Net fair value $’000 $’000 $’000 $’000 On-statement of financial position Financial assets Cash assets 513,314 513,314 261,968 261,968 Receivables 212,599 212,599 152,648 152,648 Loans - - 2,000 2,000 725,913 725,913 416,616 416,616 Financial liabilities Payables 203,711 203,711 142,616 142,616 203,711 203,711 142,616 142,616

Net financial assets 522,202 522,202 274,000 274,000

(ii) Off-statement of financial position

The Department has potential financial liabilities which may arise from certain contingencies disclosed in note 26. As explained in that note, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.

90 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 23. Ministers and Accountable Officers In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Names The persons who held the above positions in the Department are as follows:

Minister for Transport; and Minister for Major Projects The Hon. Peter Batchelor MP 1 July 2002 to 30 June 2003

Minister for Energy Industries and Resources The Hon. Theo Theophanous MLC 5 December 2002 to 30 June 2003

Minister for Information and Communication Technology The Hon. Marsha Thomson MLC 5 December 2002 to 30 June 2003

Minister for Local Government The Hon. Bob Cameron MP 1 July 2002 to 5 December 2002

Minister for Ports The Hon. Candy Broad MLC 1 July 2002 to 5 December 2002

Minister for Planning The Hon. Mary Delahunty MP 1 July 2002 to 5 December 2002

Accountable Officer

Prof. Lyndsay Neilson Secretary, Department of 1 July 2002 to 5 December 2002 Infrastructure

Mr Howard Ronaldson Secretary, Department of 5 December 2002 to 30 June 2003 Infrastructure Remuneration Total remuneration received or receivable by the Accountable Officers (excluding Acting Accountable Officers whose remuneration is included in ‘Remuneration of Executives’ – see note 24, in connection with the management of the Department during the reporting period) was in the range: 2003 2002 Income band No. Income band No. $120,000–129,999 1 - - $140,000–149,999 1 - - --$270,000–279,999 1

Remuneration amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. Other transactions (a) Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

(b) The Secretary of the Department is a shareholder in the Revenue Clearing House Pty Ltd and Vic Trip Pty Ltd as the appointed representative of the bus operators with whom the Department has a route bus service contract. The Department’s shareholding is one ordinary share at $1.00 in each company.

(c) The Director of Public Transport is the sole shareholder on behalf of the State in the Victorian Rail Services Pty Ltd (also refer to Note 1(a)(ii) and Note 31)

annual report 2002–03 91 Notes to the financial statements for the year ended 30 June 2003

Note 24. Remuneration of executives The numbers of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.

A factor in executive officer reporting this year has been the implementation of machinery-of-government changes. As a result of these changes, 10 DOI executives moved to DSE and three to DVC. Additionally, four executives came to DOI from the former DNRE and six from DIIRD.

As these changes were effective from 1 January 2003, all executive movements in and out of DOI are reflected in the table below and have resulted in a large number of executives in the reporting period whose total remuneration for the six months to 30 June 2003 is less than $100,000.

Income band Total remuneration Base remuneration 2003 2002 2003 2002 No. No. No. No. Less than $100,000 42 19 47 21 $100,000–109,999 5635 $110,000–119,999 3 8 7 12 $120,000–129,999 9 11 12 12 $130,000–139,999 9856 $140,000–149,999 6351 $150,000–159,999 5444 $160,000–169,999 4120 $170,000–179,999 1302 $180,000–189,999 0116 $190,000–199,999 1232 $200,000–209,999 0130 $210,000–219,999 4300 $220,000–229,999 2100 $230,000–239,999 1000 $240,000–249,999 0011 $250,000–259,999 0000 $260,000–269,999 0000 $270,000–279,999 0100 $280,000–289,999 0000 $290,000–299,999 1000

Total numbers 93 72 93 72 Total amount $10,506,694 $8,815,928 $9,680,228 $8,387,082

92 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 25. Remuneration of auditors

2003 2002 $’000 $’000 Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of the Department’s financial report:

Paid as at 30 June 99 70 Payable as at 30 June 148 170 247 240

Note 26. Contingent liabilities Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government and from legal disputes and other claims against the Government arising from a past event. Contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.

Public transport rail franchise agreements During 1999–2000 the Director of Public Transport, on behalf of the Crown, entered into contractual arrangements with franchisees to operate passenger rail transport services in the State (refer note 1(a)(ii)). The following summarises the major contingent liabilities arising from those arrangements.

Contingent liabilities on early termination or expiry of franchise agreements

New rolling stock lease direct agreements As part of the present franchising arrangements, the franchisee of each passenger rail business has undertaken to provide new rolling stock. Each franchisee is expected to enter into a lease with a third party lessor with respect to this rolling stock. In addition, the Director is expected to enter into rolling stock direct agreements with the respective lessors to protect the State’s interest in the rolling stock. In the event of expiry or on early termination of the franchises the Director can either exercise a right to acquire the new rolling stock at predetermined values or the lease payment obligations are transferred to the Director or a successor franchisee. At 30 June 2003, all five rolling stock direct agreements have been entered. The contingent liability of the Director to take over the lease payments only commences upon delivery of the units of new rolling stock.

In respect to V/Line Passenger a contingent liability no longer exists as the State has taken over as the lessor of 38 new rolling stock units through the establishment of the State owned company Rolling Stock Holdings (Victoria) Pty Ltd.

The Government has appointed receivers and managers to the National Express train and tram franchises, in order to protect government interests and to ensure continuation of services.

The Director has not yet terminated the franchise agreements with National Express. The Director intends to terminate the franchise agreements with National Express upon appointment of successor operators for the businesses concerned. Until the franchise is terminated the rolling stock leases remain the responsibility of the National Express franchises under receivership. However after balance date, on 1 October 2003, the V/Line Passenger franchise was terminated and placed into Government ownership until 29 October 2006.

annual report 2002–03 93 Notes to the financial statements for the year ended 30 June 2003

Other direct agreements The Director is also party to a number of other direct agreements with the providers of key services to franchisees in respect of carrying out their operations. The intention of these agreements is that in the event of a ‘Step-in Event’ occurring or on early termination or expiry of a franchise that the key services will be (at the option of the Director), continued by the providers for the Director or his nominee under the same terms and conditions as the original contract.

Payments on termination On termination of the franchise agreements by expiry or otherwise the Director will have a liability:

• to pay for certain assets and liabilities on the basis set out in the agreements

• for termination value payments in respect of designated rolling stock improvements and capital projects (estimated contingent liability at 30 June 2003 – $113.5 million (2002 – $139.3 million)).

Contingent liability offsets on early termination of franchise agreements (Performance Bonds) With respect to any additional costs arising to the Director on the early termination of a franchise, the franchisee must indemnify the Director for any losses, damages or costs incurred by him as a result of the early termination. If the franchisee does not do so, the Director has the right to draw on the franchisee’s performance bond for the amount of those losses, damages or costs. The Director has utilised this provision to obtain funding of $135 million from the National Express Group as a result of its withdrawal from its train and tram franchises.

Connex and Yarra trams signed Interim Operating Agreements (IOAs) in December 2002. The bonds provided by Yarra Trams ($30 million) and Connex ($50 million) under Settlement Agreements dated March 2002 have been extended to the earlier of 31 December 2003 and termination of their IOA. After the earlier of 31 December 2003 and termination of the IOAs, these bonds will reduce to $15 million for Yarra Trams and $25 million for Connex.

If, on re-franchise, a new franchisee becomes the successor operator, the outgoing franchisee must comply with its obligations to ensure transition to the successor. Where there is default, the Director will have access to the performance bonds of Yarra Trams and Connex until re-franchise.

The Director also has a fixed and floating charge over franchisee assets as security for amounts payable by franchisees.

Contingent liabilities arising from Interim Operating Agreements There are a number of contingent liabilities arising from the IOAs between the Director of Public Transport and Connex and Yarra Trams which were signed in December 2002. These possible liabilities refer to payments to be made by the Director of Public Transport to Connex and Yarra under certain scenarios. These include:

Funding requirements Under the IOAs the Director has agreed to pay specified monthly amounts to the franchisees to assist them in meeting their funding requirements. These specified amounts are based on the forecast funding requirements of the franchisees. If the forecast funding requirements differ to the actual funding requirements then an adjustment is made between the parties to reflect the actual funding requirements of the franchisee.

94 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Insurance If the actual insurance premiums for a quarter are greater than the forecast insurance premiums for that quarter, then the Director must reimburse the franchisee an amount as calculated per the formula in the IOA. The IOAs make provision for the reimbursement to the franchisees with respect to insurance claims where there is a difference between the deductible payable under the original insurance policy and the current insurance policy. The Director will pay 50 per cent of the difference between the new deductible and the original deductible.

Revenue risk sharing The Director must pay to the franchisee an amount calculated by a formula in the IOA representing lower than expected revenue.

Capital investment On the termination of the franchise agreement as a result of a termination event the Director must pay or procure the payment to the franchisee of the early termination values in accordance with the capital projects listed in the IOA.

Other contingent liabilities arising from National Express withdrawal from train and tram franchises The National Express franchisees each granted to the Director charges over the company’s property. The Director appointed receivers to the National Express franchisees and by the Receivership Deed of Indemnity, the Treasurer has agreed to indemnify the receivers for debts properly incurred by them in the course of the receivership.

The Treasurer has also agreed to remunerate the receivers in accordance with the rates set out in the deed.

Contingent liabilities arising from potential changes to existing conditions

Change in Victorian Law Franchisees may make a claim against the Director for any net losses incurred as a result of a change in Victorian Law which directly relates to the franchise business.

Latent defects If a latent defect is identified in any part of the infrastructure which has been leased to the franchisees, and the cost of rectifying the defect is in excess of a threshold amount, then the Director will indemnify the franchisee for the amount by which the cost of the works to rectify the defect exceeds the threshold amount.

Pre-existing contamination The Director has indemnified franchisees from and against all losses, damages, liabilities, actions, suits, claims, demands, costs and expenses of every kind arising from a failure by the Director to clean-up the land as defined in the infrastructure leases entered into with franchisees.

Native title The Director is liable for payments of any valid compensation claim to Native title holders made under the Native Title Act 1993 or other laws relating to Native and Aboriginal title in respect of the land as defined in the infrastructure leases entered into with franchisees.

annual report 2002–03 95 Notes to the financial statements for the year ended 30 June 2003

Net loss provisions On the occurrence of certain events specified in the franchise agreements, including the undertaking of infrastructure works by the State, the franchisees may make a claim against the Director if the franchisee incurs a net loss as a result of those events.

Contingent liabilities relating to the Department as Bus Industry Representative The Secretary of the Department is a shareholder in the Revenue Clearing House Pty Ltd (‘RCH’) and VicTrip Pty Ltd as the appointed representative of route bus operators with whom DOI has a bus service contract.

The RCH Shareholders Agreement and the VicTrip Shareholders Agreement contain several clauses which mean that the State (along with the franchisees) will become liable for additional capital requirements for the RCH and VicTrip to remain solvent and any losses suffered by the RCH and VicTrip.

The MetCard Management Agreement with the RCH contains several clauses in the agreement which mean that the State (along with the franchisees) will become liable for any shortfalls suffered by the RCH in specific circumstances.

Melbourne City Link The key arrangements for Melbourne City Link are set out in the Concession Deed, which has effect from 20 October 1995.

Under the arrangements as set out in the Concession Deed and the legislation, the State is responsible for acquiring and paying for the land necessary for the project to proceed, paying for certain State works and general project costs. It is also subject to certain compensation claims in the event that it can be shown that Transurban’s revenue has been adversely affected by State actions.

While all land has been acquired, the final compensation payable is subject to resolution in some instances.

There is currently an outstanding claim from Transurban relating to an alleged ‘Appendix Event’ and leading to a Material Adverse Effect claim from Transurban in relation to the construction of Wurundjeri Way and widening of the West Gate Freeway. This claim is currently being handled by the documented dispute resolution processes and the Department of Infrastructure is managing the claim for the State. In the first phase of this process, an independent expert has found in favour of the State. However, Transurban has invoked the appeal process leading to the documented arbitration procedures. At the date of this report, the outcome is still outstanding.

As regards to compensation for land acquisitions, some matters remain in the negotiation/determination phase in an effort to agree the ultimate level of compensation for the acquisitions.

National Electricity Code Administrator Under the National Electricity Code Administrator (NECA) Members Agreement, dated 9 May 1996, provides that the maximum amount payable by Victoria on winding up of NECA is $1,285,000. Further, this amount is in addition to any amount payable under the memorandum of association under which NECA was established.

96 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

National Electricity Market Management Company Under the National Electricity Market Management Company (NEMMCO) Members Agreement, date 9 May 1996, provides that the maximum amount to be contributed by Victoria if NEMMCO is wound up is $5,233,050. Further, this amount is in addition to any amount payable under the memorandum of association under which NEMMCO was established.

Details and estimates of other contingent liabilities are as follows: Quantified 2003 2002 $’000 $’000 Legal disputes 6,468 6,147 Personal injury 10 285 Equal Opportunity 250 - 6,728 6,432 Unquantified:

•Two claims relate to legal disputes that are yet to be quantified (2002 – six claims) • One claim relates to a personal injury case that is yet to be quantified (2002 – three claims) • Nil claims relate to equal opportunity cases that are yet to be quantified (2002 – two claim) • One claim relates to an indemnity case that are yet to be quantified (2002 – nil claims).

As at balance date the Department had received a number of notices of delay in connection with the Regional Fast Rail Project, however the Department has rejected all such claims.

Note 27. Contingent assets Contingent assets arise from guarantees, indemnities and other forms of support provided to the Government and from legal disputes and other claims by the Government arising from a past event. Contingent assets by definition are similar to an asset – the distinguishing feature being the uncertainty over the Government’s entitlement.

Public Transport Rail Franchise Agreements During 1999–2000 the Director of Public Transport, on behalf of the Crown, entered into contractual arrangements with franchisees to operate passenger rail transport services in the State. The following summarises the major contingent assets arising from those arrangements:

Contingent assets arising from potential changes to existing conditions

Net gain provisions On the occurrence of certain events specified in the franchise agreements, including the undertaking of infrastructure works by the State, the Director may make a claim against the franchisee if the franchisee incurs a net gain as a result of those events.

Contingent assets arising from Interim Operating Agreements

Interim Operating Agreements offsets The Director will be entitled to payments from the franchisees if the funding requirements and insurance costs are lower than expected and where revenue is greater than expected.

annual report 2002–03 97 Notes to the financial statements for the year ended 30 June 2003

Contingent assets arising from Early Termination of Franchise Agreements (Also refer to Note 26)

Performance bonds The Director will be entitled to call upon performance bonds if the franchisee does not indemnify the Director for any losses, damages or costs incurred by him as a result of early termination.

Payments on termination If on termination of the franchise agreements by expiry or otherwise there is a net liability, the franchisee will have a liability to pay the Director.

98 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 28. Commitments for expenditure The following commitments have not been recognised as liabilities in the financial statements.

2003 2002 $’000 $’000 Capital and other related commitments Commitments contracted for at the reporting date but not recognised as liabilities, payable: Within one year 483,468 217,185 Later than one year but not later than 5 years 175,471 434,267 Later than 5 years -- Capital commitments (inclusive of GST) 658,939 651,452 less: GST recoverable (59,904) (54,943) Capital commitments (exclusive of GST) 599,035 596,509

Included in the commitments above are projects undertaken by Major Projects Victoria for the following sponsor agencies (also see note 4):

2003 2002 $’000 $’000 Department of Health and Services 167,771 13 Department of Premier and Cabinet 31,661 78,012 Department of Innovation, Industry and Regional Development 1,917 416 Department of Primary Industries 1,142 - Office of Commonwealth Games 666 - Infrastructure Portfolio 567 723 Melbourne and Olympic Parks Trust 5- Department of Tourism, Sport and the Commonwealth Games - 1,706 Capital commitment (inclusive of GST) 203,729 80,870 Less: GST recoverable (18,521) (7,352) Capital commitments (exclusive of GST) 185,208 73,518

Rail and bus commitments The Department has entered into a number of contracts with private operators for periods of up to 15 years to provide Victoria’s tram, train and bus services. Under the terms of these agreements, the Department provides subsidies for transport services and capital commitments.

The estimates for rail and bus commitments have been calculated as at 30 June 2003 based on these existing contracts.

A number of major issues exist in respect to the rail contracts that will significantly impact on existing contracts and commitments. These issues are discussed as follows:

Withdrawal of National Express In early December 2002 National Express advised that it would withdraw from its train and tram franchises effective from 23 December 2002. The Government appointed receivers and managers to the National Express train and tram franchises, in order to protect government interests and to ensure continuation of services.

annual report 2002–03 99 Notes to the financial statements for the year ended 30 June 2003

Despite there being a termination event for National Express, the Director has not yet terminated the franchise agreements with National Express. The Director intends to terminate the franchise agreements with National Express upon appointment of successor operators for the businesses concerned.

In particular it is intended that the V/Line Passenger franchise will be terminated and the V/Line franchise has been placed into government ownership effective from 1 October 2003 to 29 October 2006.

As the National Express franchises are still in place as at 30 June 2003, the Department has included the commitments associated with the existing National Express franchise agreements in the table below.

A Deed of Company Arrangement was signed by the State and the administrators in July 2003 which required the State to make a $20 million contribution towards the outstanding debts of National Express creditors. Any impact from the Deed of Company Arrangement and changes in the franchising arrangements will be determined over the coming year.

In relation to the employees of National Express franchises an assurance has been provided by the Government that all accrued benefits (including annual leave, sick leave, long-service leave and public holidays) and existing conditions (including superannuation) of the staff of each business will be protected and that all existing Enterprise Agreements, awards and other agreements (including agreements on staffing levels) will be honoured.

Franchise reform process In 2002 a Franchise Review Task Force was established to review the train and tram franchise arrangements. The review highlighted significant financial problems with the franchises and the need for the State to contribute additional funding to ensure the delivery of existing services. Under IOAs established with Connex and Yarra franchises the Government agreed to provide additional funding up to the end of December 2003, with a government option for a further 12 month extension of the Agreement. The additional funding under the IOAs has been included in commitments up to December 2004.

The IOA also agreed to release Yarra and Connex from making payments in respect of accrued employee leave benefits up to a capped amount.

Over the period of the IOA the Government will reform the existing metropolitan train and tram franchises with the intention to establish one train and one tram franchise.

Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable:

Rail and bus commitments 2003 2002 $’000 $’000 Non-discounted Non-discounted Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 545,746 399,200 Later than one year but not later than 5 years 1,691,090 1,478,300 Later than 5 years 2,487,800 2,690,500 Rail commitments (inclusive of GST) 4,724,636 4,568,000 less: GST recoverable (427,740) (415,300) Rail commitments (exclusive of GST) 4,296,896 4,152,700 Representing: Non-cancellable operating leases 4,296,896 4,152,700

100 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

The increase in rail commitments between 2002 and 2003 mainly relates to: revised rolling stock arrangements including the commitment to nine additional trains for the V/Line Passenger services, accrued employee leave benefits, contribution towards the Deed of Company Arrangements for the National Express franchises and additional payments under IOAs.

Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable:

2003 2002 $’000 $’000 Non-discounted Non-discounted Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 513,500 482,822 Later than one year but not later than 5 years 2,076,900 2,175,170 Later than 5 years 154,300 584,702 Commitments (inclusive of GST) 2,744,700 3,242,694 less: GST recoverable (249,500) (294,790) Bus commitments (exclusive of GST) 2,495,200 2,947,904 Representing: Non-cancellable operating leases 2,495,200 2,947,904

The reduction in commitments for bus service contracts reflects 12 months payments under existing contracts, revised forecasts for bus commitments and additional services contracted during the year. 2003 2002 $’000 $’000 Operating leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within one year 11,063 8,776 Later than one year but not later than 5 years 24,020 28,208 Later than 5 years -- Commitments (inclusive of GST) 35,083 36,984 less: GST recoverable (3,085) (3,358) Commitments (exclusive of GST) 31,998 33,626 Future minimum lease payments expected to be received in relation to non-cancellable sub-leases of operating leases 6,843 452

2003 2002 $’000 $’000 Outsourcing commitments Commitments under outsourcing contracts at the reporting date but not recognised as liabilities, payable: Within one year 973 938 Later than one year but not later than 5 years 964 1,607 Later than 5 years -- Commitments (inclusive of GST) 1,937 2,545 less: GST recoverable (176) (231) Commitments (exclusive of GST) 1,761 2,314

annual report 2002–03 101 Notes to the financial statements for the year ended 30 June 2003

Note 29. Employee benefits 2003 2002 $’000 $’000 Employee entitlement liabilities Provision for employee benefits Current (note 20) 6,089 6,761 Non-current (note 20) 10,032 11,734 Aggregate employee entitlement liability 16,121 18,495

Employee numbers No. No. Number of employees at reporting date 748 870

As explained in note 1(q)(ii), the amounts for long-service leave are measured at their present values. The following assumptions were adopted in measuring present values: 2003 2002 $’000 $’000 (a) Long-service leave Weighted average rates of increase in annual employee benefits to settlement of the liabilities 4.75% 6.90% Weighted average discount rates 4.73% 5.66% Weighted average terms to settlement of the liabilities 15 years 15 years Government Employees' Superannuation Funds No liability is recognised in the statement of financial position for the Department’s share of the State’s unfunded superannuation liability. The State’s unfunded superannuation liability has been reflected in the financial statements of the Department of Treasury and Finance.

However, superannuation contributions for the reporting period are included as part of employee benefits in the statement of financial performance of the Department.

The name and details of the major employee superannuation funds and contributions (including salary sacrifice contributions) made by the Department are as follows:

Fund Contribution Contribution Contribution Contribution for the year for the year outstanding at outstanding at year end year end 2003 2002 2003 2002 $$$$ State Superannuation Scheme – revised and new 1,582,360 1,918,275 144,300 - Victorian Superannuation Fund 4,313,626 3,437,576 - - Victorian Water Superannuation Fund 98,284 131,772 - 43,283 Transport Superannuation Fund 276,553 250,070 - 21,462 Various other 657,614 469,474 1,987 5,826 Total 6,928,437 6,207,167 146,287 70,571

The bases for contributions are determined by the various schemes.

All employees of the Department who are members of Government Superannuation Funds are entitled to benefits on retirement, disability or death. These Funds provide defined lump sum benefits based on years of service and final average salary. The above benefits are provided via either defined benefit schemes or accumulated fund schemes.

The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to payments made for years ended 30 June.

There were no loans made by the Superannuation Funds to the Department during the year.

102 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 30. Reconciliation of the net result for the reporting period to net cash inflow from operating activities 2003 2002 $’000 $’000 Net result for the reporting period (43,709) 55,279

Value of assets written down / disposed of 259,116 148 Depreciation and amortisation 12,698 9,379 Net asset transfers free of charge (2,529) 11,669

Change in operating assets and liabilities, net effects from restructuring: (Increase)/decrease in receivables and debtors (56,354) (27,504 ) Increase/(decrease) in payables and operating liabilities 36,178 3,464 Increase/(decrease) in other provisions 2,353 1,614 (Increase)/decrease in prepayments 508 2 Increase/(decrease) in prepaid income (90) - Net cash inflow/(outflow) from operating activities 208,171 54,051

annual report 2002–03 103 Notes to the financial statements for the year ended 30 June 2003

Note 31. Consolidation: Victorian Rail Services Pty Ltd (VRS) (Also refer to Note 1(a)(ii))

The Victorian Rail Services Pty Ltd (VRS) is a wholly-owned government company with the Director of Public Transport being the sole shareholder. In accordance with Accounting Standards the statement of financial performance, statement of financial position and cash flows of VRS (as follows, after eliminations) have been consolidated with DOI’s financial statements at 30 June 2003 for the period 9 January 2003 to 30 June 2003:

30 June 2003 (after eliminations) $$ Assets Cash 752,336 Trade debtors 1,553,375 Other receivables 358,481 Prepayments 9,625 Unlisted equity – shares in companies (1) Total assets 2,673,816

Liabilities Trade creditors 1,247,924 Payroll accruals 313,561 Accruals 89,984 GST payable 22,347 Total liabilities 1,673,816 Net assets 1,000,000 Revenue Refunds and reimbursements 5,553,713 Interest received 9,619 Other 29,657 Total revenue 5,592,989 Expenses Computer and communications 2,294,002 Salaries 2,216,912 Property expenses 278,540 Superannuation 167,002 Payroll tax 112,590 Sales and marketing 79,190 Redundancy 71,001 Insurance 10,915 Workers compensation 9,809 Grants (1,000,000) Contractors (10,000) Other 363,028 Total expenses 4,592,989 Net result for the period 1,000,000

104 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Note 32. Ex-gratia payments The Department made the following ex-gratia payments: 2003 2002 $’000 $’000 Ex-gratia payments -1

Note 33. Administered items In addition to the specific Departmental operations which are included in the statement of financial position, statement of financial performance and statement of cash flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues included taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered liabilities include government expenses incurred but not yet paid. Administered assets include government revenues earned but not yet collected.

The following provides brief details of Concession Fee Notes (see note 1(n)) referred to in the Administered tables below:

Concession Fee Notes are received by the Department on behalf of the State from Transurban in consideration for Transurban’s obligation to pay concession fees. These Notes are accounted for in the manner normally applicable to such financial instruments, namely on a discounted basis to net present value as follows:

2003 2002 $’000 $’000 Face value of concession fee notes 700,454 604,854 Less discount for future value 542,663 475,833 Present value of concession fee notes receivable 157,791 129,021

A dispute exists between Transurban and the Australian Tax Office (ATO) on the treatment of deductibility of concession fees for tax purposes. In the event that Transurban is successful in its challenge, the present value of the Notes would be enhanced, and a reversal of the downward revision of the accounting estimate which occurred in 2001 would be required (also refer to note 27).

Administered contingent asset

Concession fees A dispute exists between Transurban and the ATO on the treatment of deductibility of concession fees for tax purposes. In the event that Transurban is successful in its challenge, the concession fee values would be enhanced. Therefore the amount of the concession fee to be taken up as a contingent asset is $65.1 million.

annual report 2002–03 105 Notes to the financial statements for the year ended 30 June 2003

Note 33. Administered Items (continued)

Infrastructure Planning Balanced Planning and Supporting Ports and Intermodal Regional and Rural and Policy Environmental Systems Local Government Gateways Transport Services 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 Full Year Jul - Dec Jul - Dec Full Year Full Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 ADMINISTERED REVENUE Appropriations - payments made on behalf of the State 8,000 - - - 13,52610,198 - - - - Natural disaster funding - - - - 93 1,992 - - - - Commonwealth grants - - - - 171,819325,978 - - - - Revenue from disposal of assets ------Interest income ------Fees and other income - - 456 815 - - 70,614 1,661 - - Assets received free of charge ------24,576 Concession fees received free of charge ------Concession fee increment (see previous page) ------Total operating revenue 8,000 - 456 815 185,438 338,168 70,614 1,661 - 24,576

ADMINISTERED EXPENSES Payments made on behalf of the State 8,000 - - - 13,526 10,198 - - - - Natural disaster expenditure - - - - 93 1,992 - - - - Commonwealth grants on-passed to local government - - - - 171,819325,978 - - - - Commonwealth grants paid into the consolidated fund ------Asset sale proceeds and other income paid into the consolidated fund - - 456 789 - - 70,614 1,503 - - Assets transferred free of charge ------44,643 Loss on investments sold ------15,033 Total operating expenditure 8,000 - 456 789 185,438 338,168 70,614 1,503 - 59,676

REVENUE LESS EXPENSES - - - 26 - - - 158 - (35,100)

ADMINISTERED ASSETS Cash and receivables - - - - - 8,097 6,397 - - - Concession fee notes receivable (see previous page) ------TOTAL ASSETS -----8,0976,397-- -

ADMINISTERED LIABILITIES Creditors and accruals - - - - - 7,919 6,397 - - - Amounts owing to other departments ------TOTAL LIABILITIES -----7,9196,397-- -

106 Department of Infrastructure Notes to the financial statements for the year ended 30 June 2003

Regional and Rural Metro Transport Metro Transport Transport Safety ICT and Total Transport Infrastructure Services Infrastructure and Accessibility Multimedia 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 Full Year Full Year Full Year Full Year Jan - Jun $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

------21,52610,198 241 ------334 1,992 159,215 135,769 - - 45,423121,144 17,721 10,477 - - 394,178593,368 3,469 - - - - (982) - - - - 3,469 (982) - - 83 (2) ------83 (2) - - - 9,228 18,873 (109) 1,601 - - - 91,54411,595 - - - - - 16,420 - - - - - 40,996 -- -- -117,005 - - - - - 117,005 - - - - 28,77012,016 - - - - 28,77012,016 162,925 135,769 83 9,226 93,066 265,494 19,322 10,477 - - 539,904 786,186

------21,52610,198 241 ------334 1,992

------171,819325,978

159,215 135,769 - - 45,423121,144 17,721 10,477 - - 222,359267,390

3,469 - 83 8,939 16,037 - 1,601 - - - 92,26011,231 ------44,643 ------15,033 162,925 135,769 83 8,939 61,460 121,144 19,322 10,477 - - 508,298 676,465

---287 31,606 144,350 ----31,606109,721

- - 10,399 8,751 19,284 15,048 - - - - 36,08031,896

- - - - 157,791129,021 - - - - 157,791129,021 --10,399 8,751 177,075 144,069 ----193,871 160,917

- - 12,467 8,760 ------18,86416,679 - - 86,415 87,252 ------86,41587,252 --98,88296,012------105,279 103,931

annual report 2002–03 107 Notes to the financial statements for the year ended 30 June 2003

Note 34. Non-cash financing and investing activities 2003 2002 $’000 $’000

Restructuring of administrative arrangements (also refer note 3) (28,358) 350,330

(28,358) 350,330

Note 35. Events occurring after reporting date

Abolition of the Public Transport Corporation The Transport (Further Amendment) Act 2001 provided for the Public Transport Corporation (PTC) to be wound-up on 30 June 2003 and DOI to be its successor-in-law effective from 1 July 2003.

The financial effect of the transfer of PTC’s assets and liabilities will therefore be recognised in the 2003/04 year.

The major assets and liabilities assumed by DOI on 1 July 2003 are as follows:

$’000 Assets Cash at bank and in short-term deposits 33,828 Plant and equipment (including XPT train at WDV) 17,850 Debtors and other 331 52,009

Liabilities Provisions for claims (Note a) 3,013 Provisions for employee benefits 261 3,274 Net assets (treated as contributed capital) 48,735

Note (a)

The provision for claims of $3.0 million includes public liability claims of $1.7 million comprising $1.4 million for all active claims plus an allowance of $0.3 million for a proportion of archived claims. This provision for public liability claims has been determined on a consistent basis with the previous years.

108 Department of Infrastructure Statutory Authorities

annual report 2002–03 161 Statutory authorities

Docklands Authority MAB’s NewQuay Visitors and events Under the powers of the Docklands MAB NewQuay’s retail precinct was opened Major waterfront events held at Docklands Authority Act 1991, the Docklands Authority to the public by the Premier in November in 2002–03 attracted more than 250,000 was established in 1991 to promote, 2002. The launch featured the precinct’s visitors. They included the Summer Boat encourage and facilitate the development of waterfront restaurants, cafes and bars during Show, international food events ‘Around the Melbourne’s Docklands area, and charged an extended public festival that successfully World in 80 Dishes’ and ‘The World’s with completing its involvement in the showcased the precinct as well as the general Longest Lunch’, and a New Year’s Eve development by 31 December 2005. Docklands waterfront lifestyle. Waterfront Concert at NewQuay. The The Docklands Authority was also required precinct also secured another major sporting Batman’s Hill to plan and deliver to the community an event with the announcement by the integrated and successful world-class Construction by the Folkestone/Leighton Premier in July 2002 that Docklands had waterfront place to visit and in which to Joint Venture in its gateway site at 700 Collins been chosen as a leg in the 2005–06 Volvo work and live. Street is well under way. The Bureau of Ocean Yacht Race. This event will assist Meteorology and Medibank Private are key Melbourne Docklands in gaining exposure Under the powers of the Victorian Urban tenants for the $130 million building, which to an international audience and inject an Development Authority Act 2003, on comprises 31,000 square metres of office estimated $26 million into the Victorian 1 August 2003 the Authority’s space and 2,400 square metres of retail economy. responsibilities were subsumed with the space. Completion is expected in 2004. merger of the Docklands Authority and the Construction began on PanUrban’s Public transport/Collins Street Urban and Regional Land Corporation into $180 million ‘Watergate’ development on the extension the Victorian Urban Development Authority, corner of Bourke Street West and Stadium The Collins Street bridge extension was VicUrban. Drive, which comprises 339 apartments in two opened in November 2002. The 500-metre Melbourne Docklands is a project of towers with water and city views, together extension by Theiss Constructions was made strategic significance to Victoria. It is a large with retail and commercial space. possible by a Government commitment of urban renewal, makes a contribution to the $38 million creating a seamless continuation Victoria Harbour State’s economic, social and cultural of the existing Collins Street with tramlines, development, and also has a role creating The Outline Development Plan for of Lend generous pavements and specially designed the future ‘face’ of our capital city for Lease’s 30-hectare, $1.8 billion site was plane-tree planters. citizens and visitors alike. Significant approved. The plan includes 2,100 residential Other public transport initiatives in 2002–03 achievements in 2002–03 are outlined apartments, 250,000 square metres of include the launch of the Docklands public below. commercial space, 20,000 square metres of transport plan, the introduction into retail and entertainment facilities, open space, Waterfront City Docklands of two new tram routes servicing trams; and boating berths. The historic or linking to the suburbs as well as the free In November 2002 the Premier announced meeting of Bourke and Collins Streets also City Circle Tram, and the introduction of a that Lewing Developments (a consortia of will occur in the precinct, creating a ‘Times ferry service from NewQuay to Federation ING and the Lewis Land Group) had won Square’ meeting place and altering Square. the Government’s approval to develop the Melbourne’s 165-year old fixed grid system. 19-hectare entertainment/retail site Significant construction progress was Apartment market Waterfront City. Waterfront City is scheduled achieved for the National Bank building in Statistics compiled by the Docklands to be 75 per cent complete by the the precinct, a modern office campus for Authority in relation to the Docklands Commonwealth Games in 2006, and has 3,500-plus staff. apartment market showed the following committed to reach the Authority’s highest Comtechport results. To May 2003, 2,714 Docklands level of environmentally sustainable apartments have been sold – 49 per cent development (ESD) certification. Digital Harbour at Comtechport, a dedicated owner occupied and 51 per cent investment Construction has started for the precinct, IT precinct on La Trobe Street, started the properties. Annual average capital growth which has an investment value of almost construction of Stage 1A, the ‘Innovation was 5.4 per cent, annual average rental yield $1 billion and features a component of Building’. The project is supported by a was 4.5 per cent, with investment properties affordable housing and a giant $40 million Commonwealth Government Federation virtually fully let at 3.2 per cent. observation wheel. Fund grant of $22.5 million.

162 Department of Infrastructure Sustainability •provided input to a number of MPC owns and manages the land within workshops and formal meetings to the Port of Melbourne and plans and The Minister for Major Projects launched the inform discussions on port matters coordinates port developments in the Melbourne Docklands ESD Guide, requiring generally and particularly on strategic interests of the providers and users of port developers of residential or commercial matters related to the Port of Hastings services and the port community. It adopts a developments in Docklands to meet a base and other Victorian ports strategic focus to port development by level of ESD during the design process. • satisfied environmental obligations facilitating improved transport links to and The guide, which provides a way to measure under the Port Management from the port and cost-effective logistics ESD in buildings, was a finalist in the United Agreement solutions for cargo owners and shipping Nations Association of Australia World • complied with all relevant government lines. Environment Day Awards 2003. policies On 12 March 2003, by Order of the Public urban art • exceeded annual revenue targets due Governor in Council, MPC was declared to greater port activity. The Minister for Major Projects announced a reorganising body and a Board was the winners of a major public art Priorities for 2003–04 established to facilitate the abolition of MPC competition to design a masterplan of and guide the development of a new port The key priorities for the HP(H)C in 2003–04 public art integrating Harbour Esplanade, corporation (the Port of Melbourne will be to: the main promenade linking all parts of Corporation [POMC]) on 1 July 2003. Docklands. The winning proposals are being • work with the Government to achieve Key achievements in 2002–03 progressively commissioned over the next its stated aims and objectives for three to four years, and installed with the port reform •Twelfth consecutive year of trade growth, with total trade up 11 per completion of each stage of the Harbour • assist the Government in a review of cent to a record 54.6 million revenue Esplanade public waterfront areas. Two new the charter, structure and resourcing of tonnes (24.7 million mass tonnes). pieces were added to the Docklands ‘art the HP(H)C with a view to properly gallery’ – Silence by sculptor Adrian equipping it to plan and provide for •Total container throughput up Mauricks at MAB NewQuay and Heartland the potential future role of the Port of 12.1 per cent to 1.6 million TEU by artist Karen Casey at Mirvac’s Yarra’s Hastings in the Victorian port and (twenty-foot equivalent unit). Edge. Webb Bridge, a cycling and freight logistics system •A study completed in July 2002 found pedestrian bridge linking Yarra’s Edge to •revise or replace the Corporate Plan the Port of Melbourne supports Docklands Park, was barged into place in to give effect to possible review around 80,000 jobs and contributes November 2002 and is nearing completion outcomes or new legislative nearly $5.4 billion every year to the and launch. requirements Victorian economy – around Hastings Port (Holding) • develop a strategic land-use plan to 3.5 per cent of Victoria’s estimated Corporation inform government and local Gross State Product. organisations of the future expansion •A $20 million rail track and terminal Hastings Port (Holding) Corporation of the Port of Hastings facility, built by P&O Trans Australia (HP[H]C) is a body corporate established • develop a community engagement with rail access provided by MPC, with perpetual succession pursuant to the strategy which will ensure the launched by the Minister for Transport Port Services (Amendment) Act 1997. involvement of local government and in February 2003. The facility returns Enabling legislation for HP(H)C received community groups. rail access to the Swanson Dock West Royal Assent on 5 November 1997. HP(H)C terminal. holds certain property, rights, liabilities and Melbourne Port Corporation • An $11 million Australian Customs obligations connected with the Port of Role and responsibilities Service container scanning facility was Hastings, Westernport, Victoria. opened in the Port of Melbourne in Until 30 June 2003 Melbourne Port November 2002 – the first of its kind Key achievements in 2002–03 Corporation (MPC) was a State Government to be operated in an Australian port. In the financial year 2002–03 the HP(H)C: owned business enterprise, established on •A $3.1 million upgrade was 1 February 1996 with objectives and •established an office in the town of undertaken at Appleton Dock to functions as defined in the Port Services Hastings to provide an opportunity for enable the facility to better Act 1995. increased interaction between HP(H)C accommodate a wide range of vessels. and the community of stakeholders

annual report 2002–03 163 Statutory authorities

• MPC established a 12-month National Electricity Market installed. Safety switches are now partnership with Landcare on 1 July Management Company installed in 56 per cent of Victorian 2002 to support MPC’s approach to premises. NEMMCO is the market and system environmental management. • The certificate of electrical safety operator for the National Energy Market • $1.15 million project to landscape system provides for a constant review (NEM). It provides information to assist the Webb Dock East completed. of workmanship and worker market to identify opportunities for •A 2 per cent increase in customer competency; 5 per cent increase in the investment. satisfaction was measured by MPC’s use of certificates of electrical safety, 2002 Customer Survey. National Electricity Code resulting from increased acceptance by electrical workers and the community. Priorities for the Port of Administrator •Trained safety observers (known as Melbourne Corporation in The National Electricity Code Administrator ‘spotters’) who watch for potential 2003–04 (NECA) administers, enforces and amends hazards when working near overhead the National Electricity Code, which governs •Effective transition and integration of power lines are integral to the success the operation of the NEM. the land and maritime functions of the of the ‘No Go Zone’. Some 300 predecessor organisation. NEMMCO and NECA are companies people were trained as ‘spotters’ and •Progress preparation for channel established under Corporation Law and their a further four companies were trained deepening in Port Phillip Bay and the annual reports are published under that and authorised to provide such Yarra River. legislation. These bodies are not statutory training on the OCEI’s behalf. • Enhance market intelligence to meet authorities for which the Minister for Energy Priorities for 2003–04 competitive pressures while optimising Industries and Resources is directly market share. responsible; however, under the NEM • The safety switch program will be • Comprehensive review of the pricing Agreement, to which Victoria is a party, the further enhanced to increase the framework, including innovative Minister in each jurisdiction nominates a number of Victorian properties pricing structures in the context of a member to the boards of NEMMCO and protected by safety switches. 10-year plan of capital investment. NECA and annually endorses their •A voluntary home safety inspection • Improve customer relationships with corporate plans. program will be developed and stevedores, shipping lines and other implemented. port users and work with port Office of the Chief Electrical • Recommendations resulting from the businesses to facilitate port capacity Inspector post-implementation review of the growth opportunities and effective The Office of the Chief Electrical Inspector certificate of electrical safety system integration of near-port freight (OCEI) operates under the Electricity Safety will be implemented. facilities. Act 1998. It is a technical electrical regulator • Further consideration will be given to • Develop long term integrated responsible for ensuring the safe supply extend the ‘No Go Zone’ program to planning framework for port-related and use of electricity in Victoria. It also those industries most at risk. logistics infrastructure, optimal use for encourages efficient use of the electricity in Office of Gas Safety port land and targeted capital Victoria through the energy labelling of investment including off-port certain electrical appliances. The Office of Gas Safety is a statutory intermodal facilities, transport corridors authority operating under the Gas Safety Key achievements for 2002–03 and integrated business systems. Act 1997, with responsibility for gas safety • No electrical fatalities recorded for the within the community and the gas industry. second consecutive year. This is achieved by setting and enforcing • Lowest electrical fatality rate of all gas safety measures and standards for the Australian States, Territories and industry and maintaining public and industry New Zealand. awareness of gas safety requirements. • Extensive research indicates that Key achievements 2002–03 90 per cent of all electricity-related deaths and serious accidents in • Eleven successful prosecutions domestic premises could have been undertaken in the Magistrates Courts prevented if safety switches were and before the Plumbing Industry

164 Department of Infrastructure Commission relating to breaches of • Support the Office's communication • examine and evaluate alternative the Gas Safety Act 1997, Gas Safety strategies by a significant update of ticketing systems Regulations and related matters under the web site. •procure and manage an amended or the Building Act 1993. • Participate in a review of the Office's new ticketing system • Conducted two gas safety awareness role and responsibilities within the •procure and manage ticketing systems campaigns on the theme ‘Always Treat framework of the Emergency for other public transport services, Gas With Respect’. The program Management Crisis Team. including regional services, as directed gained high recognition amongst gas by the relevant Minister consumers and won an Award of Merit Public Transport Corporation • consult with the public transport from the International Association of The Public Transport Corporation (PTC) was operators with respect to the Business Communicators. formed in July 1989 to operate trains, trams operators’ requirements for ticketing •Presentations given to 59 industry and and buses in the Melbourne metropolitan systems. related groups (TAFE apprentices, area, passenger services in rural Victoria, The Order which established the PTTB local councils, plumbers) on topics and freight services. provides for the creation of a Board of the ranging from consumer gas safety and The PTC ceased to be a provider of freight PTTB, comprising a Chairperson and not technical information/regulations to services from 1 July 1997, and of passenger less than one and not more than four other issues of greenhouse gas emissions. transport services from 1 July 1998. directors. Section 5(8) of the Order • Inspection program of more than The primary role of the PTC became the appointed Peter Harris, Executive Director – 2,000 sites throughout Victoria to provision of maintenance and other services Public Transport Division in DOI, as the sole assess the safety of pre-1997 industrial to the passenger operators and other director and Chairperson of an interim liquid petroleum gas (LPG installations) customers and the progressive outsourcing Board for a period of 90 days commencing nearing completion, to provide a solid or transfer of responsibility for these 17 June 2003, or until the Governor in foundation for the future LPG safety activities. Council appoints a replacement Board. regime. • The two-year program to inspect all An administrator was appointed to the PTC Roads Corporation of Victoria natural gas/LPG installations and on 23 December 1999 with the objective of (Vicroads) appliances (excluding privately-owned winding up the PTC. The PTC was wound Role caravans and cabins) in Victoria's up on 30 June 2003, and the Secretary of 709 caravan parks nearing completion; DOI is the successor at law to the assets and VicRoads serves the community by compliance generally high and faults liabilities remaining in the PTC at the time. managing Victoria’s road system and its use as an integral part of the overall transport readily correctible. Public Transport Ticketing Body •Two new safety cases for transmission network. Under the State Owned Enterprises (State pipelines were accepted, bringing a Achievements in 2002–03 total of gas company safety cases in Body – Public Transport Ticketing Body) operation to 29, involving 27 Order 2003, made pursuant to section 14 of • The Responsible Driving Package that companies – natural gas transmission, the State Owned Enterprises Act 1992, the introduced tougher penalties for drink distribution and retail and LPG. Public Transport Ticketing Body (PTTB) came driving, speeding and other unsafe into existence on 17 June 2003. practices was implemented to improve Priorities for 2003–04 safety outcomes for Victorians. The particular purposes for the • Carry out a major independent review The driver licensing system was establishment of the PTTB are to enable it of the gas safety regime, including the updated as part of this package. to be substituted for the PTC in relation to inter-relationships and dependence on •Victoria’s first alcohol interlocks were all Automated Ticketing (AT) arrangements, others such as the Plumbing Industry installed in the vehicles of re-licensed and to ensure the ongoing development Commission, WorkCover and DPI. drink drivers, requiring these drivers to and improvement of the Victorian public • Expand the scope of both the summer record a zero blood alcohol reading transport ticketing system. and winter gas safety awareness before their vehicle will start. campaigns in partnership with other The functions of the PTTB are to: authorities, major gas companies and • administer the AT arrangements in appliance manufacturers/distributors. place of the PTC

annual report 2002–03 165 Statutory authorities

• More than 1,000 of the 1,115 projects •Work will begin on upgrading sections Spencer Street Station approved for the Statewide Blackspot of Greensborough Highway (Plenty Authority program were completed, as part of Road Bridge), Moorooduc Highway The Spencer Street Station Authority (the the Victorian Government’s arrive (Towerhill Road to Frankston–Flinders Authority) began operations on 1 July 2000 alive! Road Safety Strategy. Road), and Thompsons Road under the Rail Corporations and Transport • The $270 million upgrade of the (Dandenong Valley Highway to Acts (Amendment) Act 1999. Specific Geelong Road was completed and Western Port Highway) as part of the objectives for the Authority include: opened to traffic, ensuring a safer and $100 million Outer Metropolitan Road more comfortable journey for Program to address urgently needed • to manage the precinct and the commuters, commercial vehicles and road duplication projects and other development, or redevelopment, of recreational travellers. road upgrades, improve safety and the precinct for transport and related • The Murchison East Deviation on the relieve traffic congestion in purposes, including commercial Goulburn Valley Highway was opened Melbourne’s growth corridors. obligations to traffic almost 12 months early, • The construction of the Craigieburn • to monitor the requirements and likely delivering safer and more effective Bypass and the upgrade of the future requirements for transport travel for road users by bypassing a Calder Highway will continue. The facilities at the precinct number of dangerous spots on the old construction of the Pakenham Bypass • any other functions conferred on the route. is expected to start by June 2004. Authority by the Rail Corporations and • An Advisory Council for Road-based • The Hallam Bypass will open to traffic Transport Acts (Amendment) Act 1999 Public Transport was established to in July 2003, 17 months early and $10 or any other Act. advise the Minister for Transport and million under budget. The Hallam Key achievements in 2002–03 VicRoads to ensure that the needs of Bypass is the first major road project in road-based public transport are Victoria to treat stormwater that runs The Authority expanded its responsibilities prominent in all aspects of road and off the road surface, protecting habitat as the station manager, by adding luggage traffic management. for native wildlife and achieving high- handling and the Green Star parcel • The devastating bushfires of summer standard water quality for creeks and business. The Authority has a major role in 2003 caused $3.1 million damage to rivers flowing into Port Phillip Bay. liaising with all stakeholders, with particular 11 arterial roads and four bridges, with • The Victorian Government has initiated emphasis on ensuring that the travelling an additional cost of $1.6 million a review of the State's road legislation public can move through the station estimated for other recovery works. to provide a more modern legislative precinct with minimal risk and discomfort. VicRoads installed variable message framework for road management. The following achievements took place in signs, repaired roads, removed trees, The Road Management Bill will be 2002–03: and managed the reopening of roads. introduced into Parliament late in 2003 • first sod turned for the project • Laws were introduced to support the to be effective from 1 July 2004. •relocation of the Authority’s Corporate enforcement of the ‘chain of •A new strategy for the management of Office and DOI Project Management responsibility’ for the road transport Melbourne arterial roads and their use Office to one office in Transport House industry. The chain of responsibility will will be developed to provide direction • accreditation as an approved rail improve road safety by making all for the development of integrated facility operator was achieved parties in the transport chain, not just road management programs and • information and customer service drivers, accountable for unlawful longer-term planning priorities. It will facilities were expanded to include practices in road transport. provide a strong focus on the key luggage check-in objectives of the Government’s Priorities for 2003–04 • the Customer Service team was Melbourne 2030 strategy, including expanded to accommodate peak •A number of road and motorcycle improvements to road-based public passenger flow due to platform safety initiatives under the transport, the provision for expected changes during construction Government’s arrive alive! Road Safety growth in freight and encouraging •the Public Display Suite which Strategy will be implemented cycling and walking. provided information on the including the installation of School redevelopment of the project was Safety Speed Zones. opened by Transport Minister Peter Batchelor with a family open day event

166 Department of Infrastructure • the model of the new station was planned residential project. Record Dandenong Stockyards taken to various regional areas to residential sales have been achieved on this The URLC has entered into a development provide information to rural project and planning has been finalised for agreement with council to redevelop the passengers the town centre. former Dandenong Saleyards land and • Minister for Education Lynne Kosky Aurora adjoining VicTrack land as a Transit Cities launched an educational curriculum kit project. The planning process is under way for school children on public transport. The Epping North site, Aurora, will be a and discussions with stakeholders and major new residential development. residential developers are progressing. Priorities for 2003–04 Approximately 634 hectares in size, the •project delivery project will create a sustainable community Swan Hill • increased patronage at stations and boast a reclaimed water system. Works have begun on the redevelopment of • establishment of partnerships in Detailed planning is being undertaken with the 150 hectare Tower Hill site. The area will regional areas relevant authorities and work is being done become the primary residential area for • further development of customer with builders to achieve an innovative Swan Hill for the next two decades, with a service delivery. housing development. strong emphasis on environmental Urban and Regional Land Officer sustainability. Corporation The development of the 400 hectare Officer Victorian Channels Authority The URLC was a Victorian Government project in outer metropolitan Melbourne Role Business Enterprise operating under the was announced in May 2003. The site will provisions of the Urban and Regional Land be developed as a sustainable community The VCA is responsible for the commercial Corporation Act 1997. The Corporation had which will eventually be home for more than shipping channels and navigation aids in a Board appointed by the Minister in 10,000 people. Victorian port waters and, on behalf of the consultation with the Treasurer, and a staff of Valley Lake State Government, for the emergency and 61. As a result of the passing in Parliament distress coastal radio service. It also Valley Lake is the redevelopment of the of the Victorian Urban Development operates a one-stop-shop service to the former Niddrie Quarry. The site is 47 Authority Act 2003 in June 2003, the URLC, shipping industry, with 24-hour commercial hectares and is expected to yield together with the Docklands Authority, shipping control and coordination of approximately 798 dwellings. Bulk became part of VicUrban, the Government’s services including pilotage, tugs and lines earthworks are under way to make the site new sustainable urban development agency. boats as well as customs and quarantine. suitable for residential development, with VicUrban will continue and build on the approximately 90 per cent of structural fill The VCA has approximately 70 customers, URLC’s innovations in residential complete. the agents and owners of vessels who use development. its services. These owners and agents are The URLC undertook comprehensively Lancaster Gate charged according to the gross tonnage planned major residential developments in Lancaster Gate is the redevelopment of the (GT) of their vessels for the use of channels, greenfields areas as well as facilitating the former Larundel Hospital site in Bundoora. navigation aids, shipping control and other redevelopment of difficult sites in the The 25 hectare development includes a associated services. Income is derived established urban area and more recently residential, village and mixed-use precinct. almost entirely from this charge. had expanded its activities to include cities Construction has begun and planning Following the creation of the POMC from in regional Victoria. VicUrban is taking on approval for the remainder of the site is 1 July 2003, staff, assets and operations of the URLC’s roles as a major residential being finalised. the VCA were transmitted to the new developer, as well as having expanded Central Creek Grasslands POMC. functions, and will continue all URLC projects. Central Creek Grasslands is located in Key achievements in 2002–03 Reservoir. Six hectares have been developed Key achievements in 2002–03 •Major maintenance dredging of for residential use and the remaining nine Melbourne and Geelong shipping Cairnlea hectares reserved as grasslands of State channels and South Channel in significance. Works have been completed Cairnlea is the former Albion Explosives southern Port Phillip was conducted and two successful auctions were held in Factory at Deer Park. The URLC is between December 2002 and January June 2003. developing the 460 hectare site as a master

annual report 2002–03 167 Statutory authorities

2003. The work was effected under • planning and directing the • Under its obligations as the monopoly external contract and was the first such augmentation of the Victorian provider of shared electricity campaign for six years. electricity transmission system transmission network services in • The detailed investigations into the •providing information and other Victoria, VENCorp applied to the proposed deepening of the main services to facilitate decisions for ACCC in April 2002 for a revenue commercial shipping channels investment and the use of resources in determination. Following an intensive servicing the Port of Melbourne the gas and electricity industries. regulatory approvals process, the continue to progress well, with work ACCC approved VENCorp’s revenue VENCorp administers the NTR Scheme, continuing on the environmental, cap in December 2002. which ensures consistency between the technical and financial complexities • VENCorp’s 2002–03 financial electricity bills of consumers in outer associated with the project. performance was better than budget suburban, regional and rural areas and those The completed Environment Effects across all areas. The surplus in the of consumers in the metropolitan area. It Statement is due to be placed on statutory electricity segment resulted also has operational and communications public display in 2004. in reduced charges for 2003–04, while responsibilities during gas and electricity • The Transition Steering Committee has the surplus in the statutory gas emergencies. overseen the formation of the POMC segment resulted in a 5 per cent by 1 July 2003 as part of complex Key achievements for 2002–03 reduction in VENCorp’s commodity exercise to both create a new • Played a major role in the introduction tariff rate for 2003–04. corporation and transmit the people, of gas Full Retail Contestability in Priorities for 2003–04 assets and operations from the MPC Victoria in October 2002. • Continue to meet all VENCorp’s and VCA. The Steering Committee is • Completion of the 400 MW responsibilities as the: focused on ensuring the transition Snowy–to–Victoria interconnection in - system operator for the Victorian continues in a timely and effective December 2002, on time and below gas transmission network manner and that the transmission of budget. - manager and developer of the the VCA business happens smoothly. • Successfully administered (on behalf of Victorian wholesale gas market the State Government) the SPP Victorian Energy Networks - system planner providing planning Scheme which ensured consistency Corporation (VENCorp) services for the gas and electricity between the electricity bills of industries Role and responsibilities consumers in outer suburban, regional -provider of gas Full Retail and rural areas. VENCorp’s role includes responsibility for: Contestability functions. • Administered the NTR scheme, which • Continue VENCorp’s preparedness to •providing a safe, secure and reliable replaced the SPP from April 2003. meet all operational and supply of gas, and managing activities • VENCorp’s revised Access communications responsibilities during to minimise risk during major gas Arrangements were approved by the gas and electricity emergencies. emergencies Australian Competition and Consumer • Complete the gas market Pricing and • scheduling the injection and Council (ACCC) in December 2002. Balancing Review, undertaken by withdrawal of gas throughout the The arrangements effectively maintain VENCorp at the direction of the transmission system the previous terms and conditions for Minister for Energy Industries and •providing timely and accurate access to Victoria’s principal gas Resources, by the end of March 2004. information to market participants on transmission system. •Progress VENCorp’s ‘fourth line’ pricing, gas demands and forecasts • The ACCC approved VENCorp’s project to increase the capacity of the • monitoring compliance with gas application for the reauthorisation of electricity transmission link between Market Rules and managing the Rule the Market and System Operation the Latrobe Valley and Melbourne for change process Rules for 10 years until 31 December completion by December 2004. • maintaining gas Full Retail 2012. Contestability functions • Assist the State Government to •providing planning services to the gas address issues in relation to the industry national energy market reform process. • Administer the NTR Rebate Scheme.

168 Department of Infrastructure VicTrack • Continued to play a significant role in Other bodies and committees major transport initiatives, including Role and responsibilities Other bodies and committees utilised by managing land acquisitions for the DOI and its Minister for advice include: VicTrack owns all of Victoria’s rail and tram regional fast rail, gauge fixed infrastructure (including land), apart standardisation and Wodonga Bypass Australian Maritime Group from the Spencer Street Station Precinct, projects, and upgrading stations in Australian Maritime Safety Authority privately-owned sidings and certain tourist preparation for the reintroduction of Boating Industry Association lines. The majority of the infrastructure is passenger services to Ararat and leased to the Director of Public Transport, Bairnsdale. City Circle Tram Promotions who in turn subleases the infrastructure to • On 30 June 2003, VicTrack acquired Electric Line Clearance Consultative various train and tram operators and access the shares in the Rollingstock Holdings Committee providers. VicTrack’s primary role is to grow group of companies. These companies Equipment Advisory Committee and add value to the network and property were established to facilitate the assets under its custodianship and seek and manufacture and subsequent leasing Hazardous Waste Siting Advisory Committee develop commercial opportunities in the of country passenger rail vehicles. National Marine Safety Committee facilities management and • Funded a $9 million program to telecommunications sectors. upgrade the rail line between Geelong Public Transport Access Committee Key achievements for 2002–03 and Warrnambool. Public Transport Customer Charter Committee • Continued to invest in public safety, Priorities for 2003–04 Public Transport Heritage Advisory Council project managing the Government’s • Completion of the project to install level-crossing-upgrade program and fibre optic to Traralgon and Geelong, Victorian Motorcycle Advisory Council participating in development of a new and substantially progress fibre-optic Victorian Bicycle Advisory Council lower-cost solution for remote works to Bendigo and Ballarat. Victorian Electrolysis Committee crossings. An annual program was • Continue to be involved in a number commenced to upgrade a number of of major transport initiatives, including Victorian Rail Freight Advisory Council pedestrian rail crossings. transit cities developments and land Victorian Road Freight Advisory Council • As one of the largest landowners in acquisitions for the regional fast rail Victoria, VicTrack continued to address and Wodonga Bypass projects. Victorian Sea Freight Industry Council its environmental obligations, • Continue the program to restore including remedial action to correct heritage stations and rail facilities. problems resulting from past practices. Major upgrade works planned for • Continued the program to restore Creswick, Kangaroo Flat, Malmsbury, heritage-listed rail assets, with St Arnaud, Seymour, Warragul, restoration works undertaken at Wangaratta, Bridgewater, Werribee, Minyip, Manangatang, Rosedale and Sunbury, Ballarat and Maryborough. Malmsbury. • Continue a number of significant • Continued to pursue and develop commercial initiatives, including value-adding initiatives, including new development of air space at Toorak commercial leases, air space Road, South Yarra and redevelopment developments and the maximisation of of the Thornbury tram depot. outdoor advertising revenue. • Improve infrastructure facilities at • Facilitated the $6.5 million various locations, including the refurbishment of the Bendigo construction of new pedestrian Workshops site, which has been subways at Sale, Morwell and leased to Empire Rubber as part of Lynbrook, the refurbishment of their expanded operations in this Elsternwick Station, the construction of regional centre. a new station at Grovedale and improving the concourse at Flinders Street Station.

annual report 2002–03 169 DOI’s Whistleblowers Protection Policy

Whistleblowers Protection Act 2001 – Procedures January 2002 Contents

1. DOI philosophy 172

2. Purpose of these procedures 172

3. Objects of the Act 172

4. Definitions of key terms 172

4.1 Improper conduct 172

4.2 Corrupt conduct 172

4.3 Detrimental action 172

5. The reporting system 173

5.1 Contact persons within DOI 173

5.2 Alternative contact persons 173

5.3 Making disclosures about persons other than DOI employees 173

6. Roles and responsibilities 173

6.1 All DOI employees and officers 173

6.2 Protected disclosure coordinator 173

6.3 Investigator 174

6.5 Welfare manager 174

7. Confidentiality 174

8. Collating and publishing statistics 174

9. Receiving and assessing disclosures 175

9.1 Has the disclosure been made in accordance with Part 2 of the Act? 175

9.2 Has the disclosure been made to the appropriate person? 175

9.3 Does the disclosure contain the essential elements of a protected disclosure? 175

9.4 Is the disclosure a public interest disclosure? 175

10. Investigations 175

10.1 Introduction 175

10.2 Terms of reference 176

10.3 Investigation plan 176

10.4 Natural justice 176

10.5 Conduct of the investigation 176

10.6 Referral of an investigation to the Ombudsman 176

10.7 Reporting requirements 177

170 Department of Infrastructure 11. Action taken after an investigation 177

11.1 Investigator’s final report 177

11.2 Action to be taken 177

12. Managing the welfare of the whistleblower 177

12.1 Commitment to protecting whistleblowers 177

12.2 Keeping the whistleblower informed 178

12.3 Occurrence of detrimental action 178

12.4 Whistleblowers implicated in improper conduct 178

13. Management of the person against whom a disclosure has been made 178

14. Criminal offences 179

15. Review 179

annual report 2002–03 171 DOI’s Whistleblowers Protection Policy

1. DOI philosophy 3. Objects of the act 4.2 Corrupt conduct The Department of Infrastructure (DOI) is The Whistleblowers Protection Act 2001 Corrupt conduct means: committed to the aims and objectives of the facilitates and encourages the making of • conduct of any person (whether or not Whistleblowers Protection Act. It does not disclosures of improper conduct by public a public official) that adversely affects tolerate improper conduct by its staff, nor officers and public bodies. The Act provides the honest performance of a public the taking of reprisals against those who protection to whistleblowers who make officer’s or public body’s functions come forward to disclose such conduct. disclosures in accordance with the Act, • the performance of a public officer’s and establishes a system for the matters DOI recognises the value of transparency functions dishonestly or with disclosed to be investigated and rectifying and accountability in its administrative and inappropriate partiality action to be taken. management practices and supports the • conduct of a public officer, former making of disclosures which reveal corrupt 4. Definitions of key terms public officer or a public body that conduct, conduct involving a substantial amounts to a breach of public trust mismanagement of public resources or There are three key concepts in the • conduct by a public officer, former conduct involving a substantial risk to public reporting system. These are; public officer or a public body that health and safety or the environment. • improper conduct amounts to the misuse of information or material acquired in the course of DOI will take all reasonable steps to protect • corrupt conduct the performance of their official people who make such disclosures from any • detrimental action. functions, or detrimental action in reprisal for the making 4.1 Improper conduct •A conspiracy or attempt to engage in of the disclosure. It will also afford natural the above conduct. justice to the person who is the subject of A disclosure may be made about improper the disclosure. conduct by a public body or public official. Examples of corrupt conduct Improper conduct means conduct that is 2. Purpose of these corrupt, a substantial mismanagement of •A public officer takes a bribe or procedures public resources, or conduct involving receives a payment other than his or These procedures establish a system for substantial risk to public health or safety or her wages or salary in exchange for reporting disclosures of improper conduct or to the environment. The conduct must be the discharge of a public duty. detrimental action by DOI or its employees. serious enough to constitute, if proved, a •A public officer favours unmeritorious The system enables such disclosures to be criminal offence or reasonable grounds for applications for positions or permits made to the Protected Disclosure dismissal. by friends and relatives. Coordinator. Disclosures may be made by •A public officer sells confidential any DOI staff member, contractor or by Examples of improper conduct information. members of the public. •To avoid closure of a town’s only These procedures are designed to industry, an environmental health 4.3 Detrimental action complement normal communication officer ignores or conceals evidence The Act makes it an offence for a person to channels between managers and staff. of illegal dumping of waste. take detrimental action against a person in Staff are encouraged to continue to raise • An agricultural officer delays or reprisal for a protected disclosure. appropriate matters at any time with their declines imposing quarantine to allow Detrimental action includes: manager. As an alternative, staff may make a financially distressed farmer to sell • action causing injury, loss or damage a disclosure of improper conduct or diseased stock. • intimidation or harassment detrimental action, under the Act, in •A building inspector tolerates poor • discrimination, disadvantage or accordance with these procedures. practices and structural defects in the work of a leading local builder. adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action.

172 Department of Infrastructure Examples of detrimental action Person who is the subject Person/body to whom the •A public body refuses a deserved of the disclosure disclosure must be made promotion of a person who makes a Employee of a public body other than DOI That public body or the Ombudsman disclosure. •A public body demotes, transfers, Member of Parliament (Legislative Assembly) Speaker of the Legislative Assembly isolates in the workplace or changes the duties of a whistleblower due to the making of a disclosure. Member of Parliament (Legislative Council) President of the Legislative Council •A person threatens, abuses or carries out other forms of harassment directly Councillor The Ombudsman or indirectly against the whistleblower, Chief Commissioner of Police The Ombudsman or Deputy Ombudsman his or her family or friends. •A public body discriminates against Member of the police force The Ombudsman, Deputy Ombudsman the whistleblower or his or her family or Chief Commissioner of Police and associates in subsequent applications for jobs, permits or tenders. The Ombudsman Victoria Furthermore, they should protect and Level 22, 459 Collins Street maintain the confidentiality of a person they Melbourne Victoria 3000 know or suspect to have made a disclosure. 5. The reporting system Internet: 6.2 Protected Disclosure http://www.ombudsman.vic.gov.au 5.1 Contact person within DOI Coordinator Email: Disclosures of improper conduct or [email protected] The Protected Disclosure Coordinator will: detrimental action by DOI or its employees, Telephone: (03) 9613 6222 • be a contact point for general advice may be made to the following: Toll-free: 1800 806 314 about the operation of the Act for any Protected Disclosures Coordinator 5.3 Making a disclosure about person wishing to make a disclosure Department of Infrastructure persons other than DOI about improper conduct or Level 14, Nauru House employees detrimental action 80 Collins St •receive all phone calls, emails and The table here sets out where a DOI Melbourne 3000 letters from members of the public employee or other person, may make a Phone: (03) 9655 8776 or employees seeking to make disclosure about persons other than All correspondence, phone calls and emails a disclosure employees of DOI. from internal or external whistleblowers • make arrangements for a disclosure to must be referred to the Protected Disclosure 6. Roles and responsibilities be made privately and discreetly and, Coordinator. if necessary, away from the workplace 6.1 All DOI employees and •receive any disclosure made orally or Where a person is contemplating making a officers in writing (from internal and external disclosure and is concerned about whistleblowers) approaching the Protected Disclosure All DOI employees and officers are • commit to writing any disclosure Coordinator he or she can call the Protected encouraged to report known or suspected made orally Disclosure Coordinator and request a incidences of improper conduct or • impartially assess the allegation and meeting in a discreet location away from detrimental action in accordance with these determine whether it is a disclosure the workplace. procedures. made in accordance with Part 2 of the All employees of DOI have an important 5.2 Alternative contact Act (that is, ‘a protected disclosure’) role to play in supporting those who have • impartially assess each disclosure to A disclosure about improper conduct or made a legitimate disclosure. They must determine whether it is a public detrimental action by DOI or its employees, refrain from any activity that is, or could be interest disclosure may also be made directly to the perceived to be, victimisation or harassment Ombudsman: of a person who makes a disclosure.

annual report 2002–03 173 DOI’s Whistleblowers Protection Policy

• take all necessary steps to ensure the • advise the whistleblower of the identification of the person who is the identity of the whistleblower and the legislative and administrative subject of the disclosure in any particulars identity of the person who is the protections available to him or her included in an annual report. subject of the disclosure are kept • listen and respond to any concerns The Protected Disclosure Coordinator will confidential of harassment, intimidation or ensure all files, whether paper or electronic, •refer all public interest disclosures to victimisation in reprisal for are kept in a secure room and can only be the Ombudsman making disclosure accessed as necessary by the investigator or • be responsible for carrying out, or • ensure the expectations of the welfare manager (in relation to welfare appointing an investigator to carry whistleblower are realistic. matters). All printed material will be kept in out, an investigation referred to the The Welfare Manager will be appointed by files that are clearly marked as a public body by the Ombudsman the Protected Disclosure Coordinator on a Whistleblower Protection Act matter, and • be responsible for overseeing and case by case basis. DOI’s Employee warn of the criminal penalties that apply to coordinating an investigation where Assistance Program may also be utilised to any unauthorised divulging information an investigator has been appointed appoint a suitably qualified Welfare concerning a protected disclosure. All • appoint a welfare manager to support Manager independent to DOI. electronic files will be produced and stored the whistleblower and to protect him on a stand-alone computer and be given or her from any reprisals 7. Confidentiality password protection. Backup files will be • advise the whistleblower of the DOI will take all reasonable steps to protect kept on floppy disc. All materials relevant to progress of an investigation into the identity of the whistleblower. an investigation, such as tapes from he disclosed matter; Maintaining confidentiality is crucial in interviews, will also be stored securely with • establish and manage a confidential ensuring reprisals are not made against a the whistleblower files. filing system whistleblower. • collate and publish statistics on Documents relevant to a whistleblower disclosures made The Act requires any person who receives matter must not be emailed and all phone • take all necessary steps to ensure the information due to the handling or calls and meetings must be conducted in identity of the whistleblower and the investigation of a protected disclosure, not private. to disclose that information except in certain identity of the person who is the 8. Collating and publishing limited circumstances. Disclosure of subject of the disclosure are kept statistics confidential information in breach of section 22 • liaise with the Secretary of DOI. constitutes an offence that is punishable by The Protected Disclosure Coordinator will a maximum fine of 60 penalty units ($6000) establish a secure register to record the 6.3 Investigator or six months imprisonment or both. information required to be published in the annual report, and to generally keep The investigator will be responsible for The circumstances in which a person may account of the status of whistleblower carrying out an internal investigation into a disclose information obtained about a disclosures. The register will be confidential disclosure that has been made or where the protected disclosure include: Ombudsman has referred a matter to the and will not record any information that may • where exercising the functions of public body. An investigator may be a identify the whistleblower. the public body under the Act person appointed from within DOI or a The register will contain the following • when making a report or consultant engaged by the Protected information: recommendation under the Act Disclosures Coordinator for that purpose. • when publishing statistics in the •the number and types of disclosures 6.4 Welfare manager annual report of a public body made to public bodies during the year The welfare manager is responsible for • in criminal proceedings for certain • the number of disclosures referred to looking after the general welfare of the offences in the Act. the Ombudsman for determination as to whether they are public interest whistleblower. The welfare manager will: However, the Act prohibits the inclusion of disclosures • examine the immediate welfare and particulars in any report or recommendation • the number and types of disclosed protection needs of a whistleblower that is likely to lead to the identification of matters referred to the public body by who has made a disclosure and seek the whistleblower. The Act also prohibits the the Ombudsman for investigation to foster a supportive work environment

174 Department of Infrastructure •the number and types of disclosures 9.3 Does the disclosure contain • has taken, is taking or proposes to referred by the public body to the the essential elements of a take detrimental action in reprisal for Ombudsman for investigation protected disclosure? the making of the protected • the number and types of disclosure. To be a protected disclosure, a disclosure investigations taken over from the must satisfy the following criteria. If the protected disclosure coordinator public body by the Ombudsman concludes that the disclosure amounts to a • the number of requests made by a • Did a natural person (that is, an public interest disclosure, he or she will: whistleblower to the Ombudsman to individual person rather than a take over an investigation by the corporation) make the disclosure? 1. notify the person who made the public body • Does the disclosure relate to conduct disclosure of that conclusion • the number and types of disclosed of a public body or public officer 2. refer the disclosure to the Ombudsman matters that the public body has acting in their official capacity? for formal determination as to whether it is declined to investigate • Is the alleged conduct either improper indeed a public interest disclosure. • the number and types of disclosed conduct or detrimental action taken If the protected disclosure coordinator matters that were substantiated upon against a person in reprisal for making concludes that the disclosure is not a public investigation and the action taken on a protected disclosure? interest disclosure, he or she will: completion of the investigation • Does the person making a disclosure • any recommendations made by the have reasonable grounds for believing 1. notify the person who made the Ombudsman that relate to the public the alleged conduct has occurred? disclosure of that conclusion body. The Protected Disclosure Coordinator will 2. advise that person that he or she may determine whether the disclosure is a request the public body to refer the 9. Receiving and assessing protected disclosure and whether the disclosure to the Ombudsman for a formal disclosures disclosure is a public interest disclosure. determination as to whether the disclosure is a public interest disclosure, and that this 9.1 Has the disclosure been made Where a disclosure is assessed not to be a request must be made within 28 days of the in accordance with Part 2 of protected disclosure, the matter does not notification. the Act? need to be dealt with under the Act. The Where a disclosure has been received, the Protected Disclosure Coordinator will decide In either case, the protected disclosure Protected Disclosure Coordinator will assess how the matter should be responded to. coordinator will make the notification and whether the disclosure has been made in the referral within 14 days of the conclusion 9.4 Is the disclosure a public accordance with Part 2 of the Act and is, being reached by the public body. interest disclosure? therefore, a protected disclosure. Notification to the whistleblower is not Where a disclosure has been received and necessary where the disclosure has been 9.2 Has the disclosure been made determined to be a protected disclosure, made anonymously. to the appropriate person? the Protected Disclosure Coordinator will For the disclosure to be responded to by determine whether the disclosure amounts 10. Investigations DOI, it must concern an employee or officer to a public interest disclosure. This 10.1 Introduction of DOI. If the disclosure concerns an assessment will be made within 45 days of Where the Ombudsman refers a protected employee, officer or member of another the receipt of the disclosure. disclosure to DOI for investigation, the public body, the person who has made the In reaching a conclusion as to whether a protected disclosure coordinator will disclosure must be advised of the correct protected disclosure is a public interest appoint an investigator to carry out the person or body to whom the disclosure disclosure, the protected disclosure investigation. should be directed. (See the table in 5.2). If coordinator will consider whether the the disclosure has been made anonymously, The objectives of an investigation will be to: disclosure shows, or tends to show, that the it should be referred to the Ombudsman. public officer to whom the disclosure • collate information relating to the relates: allegation as quickly as possible. This may involve taking steps to • has engaged, is engaging or proposes protect or preserve documents, to engage in improper conduct in his materials and equipment or her capacity as a public officer, or

annual report 2002–03 175 DOI’s Whistleblowers Protection Policy

• consider the information collected • asked to clarify any matters •all proceedings must be carried out and to draw conclusions objectively •provide any additional material he or fairly and without bias. Care should be and impartially she might have. taken to exclude perceived bias from • maintain procedural fairness in the the process The investigator will be sensitive to the treatment of witnesses and the person • the investigator must be impartial in whistleblower’s possible fear of reprisals and who is the subject of the disclosure assessing the credibility of the will be aware of the statutory protections • make recommendations arising from whistleblowers and any witnesses. provided to the whistleblower. the conclusions drawn concerning Where appropriate, conclusions as to remedial or other appropriate action. 10.4 Natural justice credibility should be included in the investigation report. 10.2 Terms of reference The principles of natural justice will be followed in any investigation of a public Before commencing an investigation, the 10.5 Conduct of the investigation interest disclosure. The principles of natural protected disclosure coordinator will draw The investigator will make justice concern procedural fairness and up terms of reference and obtain contemporaneous notes of all discussions ensure a fair decision is reached by an authorisation for those terms by the chief and phone calls, and all interviews with objective decision maker. Maintaining executive officer. The terms of reference will witnesses will be taped. All information procedural fairness protects the rights of set a date by which the investigation report gathered in an investigation will be stored individuals and enhances public confidence is to be concluded, and will describe the securely. Interviews will be conducted in in the process. resources available to the investigator to private and the investigator will take all complete the investigation within the time DOI will have regard to the following issues reasonable steps to protect the identity of set. The protected disclosure coordinator in ensuring procedural fairness: the whistleblower. Where disclosure of the may approve, if reasonable, an extension of • the person who is the subject of the identity of the whistleblower cannot be time requested by the investigator. disclosure is entitled to know the avoided, due to the nature of the The terms of reference will require the allegations made against him or her allegations, the investigator will warn the investigator to make regular reports to the and must be given the right to whistleblower and his or her welfare protected disclosure coordinator who, in respond. (This does not mean the manager of this probability. turn, is to keep the Ombudsman informed person must be advised of the It is in the discretion of the investigator to of general progress. allegation as soon as the disclosure is allow any witness to have legal or other 10.3 Investigation plan received or the investigation has representation or support during an commenced) interview. If a witness has a special need for The investigator will prepare an • if the investigator is contemplating legal representation or support, permission investigation plan for approval by the making a report adverse to the should be granted. protected disclosure coordinator. The plan interests of any person, that person will list the issues to be substantiated and should be given the opportunity to 10.6 Referral of an investigation describe the avenue of inquiry. It will put forward further material that may to the Ombudsman address the following issues: influence the outcome of the report The protected disclosure coordinator will • What is being alleged? and that person’s defence should be make a decision regarding the referral of an • What are the possible findings or fairly set out in the report investigation to the Ombudsman where, on offences? •all relevant parties to a matter should the advice of the investigator: • What are the facts in issue? be heard and all submissions should • the investigation is being obstructed • How is the inquiry to be conducted? be considered by, for example, the non-cooperation • What resources are required? •a decision should not be made of key witnesses, or until all reasonable inquiries have At the commencement of the investigation, • the investigation has revealed conduct been made; the whistleblower should be: that may constitute a criminal offence. • the investigator or any decision maker •notified by the investigator that he or should not have a personal or direct she has been appointed to conduct interest in the matter being the investigation investigated

176 Department of Infrastructure 10.7 Reporting requirements The report will be accompanied by: ensuring whistleblowers are protected from direct and indirect detrimental action, The protected disclosure coordinator will • the transcript or other record of any and that the culture of the workplace is ensure the whistleblower is kept regularly oral evidence taken, including tape supportive of protected disclosures informed concerning the handling of a recordings being made. protected disclosure and an investigation. • all documents, statements or other exhibits received by the officer and The protected disclosure coordinator The protected disclosure coordinator will accepted as evidence during the will appoint a welfare manager to all report to the Ombudsman about the course of the investigation. whistleblowers who have made a protected progress of an investigation. disclosure. The welfare manager will: Where the investigator’s report is to include Where the Ombudsman or the an adverse comment against any person, • examine the immediate welfare and whistleblower requests information about that person will be given the opportunity to protection needs of a whistleblower the progress of an investigation, that respond and his or her defence will be fairly who has made a disclosure and, information will be provided within 28 days included in the report. where the whistleblower is an of the date of the request. employee, seek to foster a supportive The report will not disclose particulars likely work environment 11. Action taken after an to lead to the identification of the • advise the whistleblower of the investigation whistleblower. legislative and administrative 11.1 Investigator’s final report 11.2 Action to be taken protections available to him or her At the conclusion of the investigation, the If the Protected Disclosure Coordinator is • listen and respond to any concerns investigator will submit a written report of satisfied that the investigation has found of harassment, intimidation or his or her findings to the protected that the disclosed conduct has occurred, he victimisation in reprisal for making disclosure coordinator. The report will or she will recommend to the Secretary to disclosure contain: DOI the action that must be taken to • keep a contemporaneous record of all • the allegation/s prevent the conduct from continuing or aspects of the case management of • an account of all relevant information occurring in the future. The protected the whistleblower including all contact received and, if the investigator has disclosure coordinator may also recommend and follow-up action rejected evidence as being unreliable, that action be taken to remedy any harm or • ensure the expectations of the the reasons for this opinion being loss arising from the conduct. whistleblower are realistic. formed The protected disclosure coordinator will All employees will be advised that it is an • the conclusions reached and the basis provide a written report to the DOI offence for a person to take detrimental for them Ministers, the Ombudsman and the action in reprisal for a protected disclosure. • any recommendations arising from the whistleblower setting out the findings of the The maximum penalty is a fine of 240 conclusions. investigation and any remedial steps taken. penalty units ($24,000) or two years If the investigator has found that the imprisonment or both. The taking of Where the investigation concludes that the conduct disclosed by the whistleblower has detrimental action in breach of this provision disclosed conduct did not occur, the occurred, recommendations made by the can also be grounds for making a disclosure protected disclosure coordinator will report investigator will include: under the Act and can result in an these findings to the Ombudsman and to investigation. • the steps that need to be taken by the whistleblower. DOI to prevent the conduct from Detrimental action includes: continuing or occurring in the future 12. Managing the welfare of • causing injury, loss or damage • any action that should be taken by the whistleblower • intimidation or harassment DOI to remedy any harm or loss 12.1 Commitment to protecting •discrimination, disadvantage or arising from the conduct. This action whistleblowers adverse treatment in relation to a may include bringing disciplinary person’s employment, career, proceedings against the person DOI is committed to the protection of profession, trade or business responsible for the conduct, and genuine whistleblowers against detrimental (including the taking of disciplinary referring the matter to an appropriate action taken in reprisal for the making of action). authority for further consideration. protected disclosures. The protected disclosure coordinator is responsible for

annual report 2002–03 177 DOI’s Whistleblowers Protection Policy

12.2 Keeping the whistleblower 12.4 Whistleblowers implicated in The Protected Disclosure Coordinator will informed improper conduct thoroughly document the process including recording the reasons why the disciplinary or The protected disclosure coordinator will If a person who makes a disclosure is other action is being taken, and the reasons ensure the whistleblower is kept informed of implicated in misconduct, DOI will handle why the action is not in retribution for the action taken in relation to his or her the disclosure and protect the whistleblower making of the disclosure. The protected disclosure, and the time frames that apply. from reprisals in accordance with the Act, disclosure coordinator will clearly advise the The whistleblower will be informed of the the Ombudsman’s guidelines and these whistleblower of the proposed action to be objectives of an investigation, the findings procedures. DOI acknowledges that the act taken, and of any mitigating factors that of an investigation, and the steps taken by of whistle blowing should not shield have been taken into account. DOI to address any improper conduct that whistleblowers from the reasonable has been found to have occurred. The consequences flowing from any involvement 13. Management of the person whistleblower will be given reasons for in improper conduct. Section 17 of the Act against whom a disclosure decisions made by DOI in relation to a specifically provides that a person’s liability has been made protected disclosure. All communication for his or her own conduct is not affected by DOI recognises that employees against with the whistleblower will be in plain the person’s disclosure of that conduct whom disclosures are made must also be English. under the Act. However, in some supported during the handling and circumstances, an admission may be a 12.3 Occurrence of detrimental investigation of disclosures. DOI will take mitigating factor when considering action all reasonable steps to ensure the disciplinary or other action. If a whistleblower reports an incident of confidentiality of the person who is the The Secretary will make the final decision on harassment, discrimination or adverse subject of the disclosure during the the advice of the Protected Disclosure treatment that would amount to detrimental assessment and investigation process. Coordinator as to whether disciplinary or action taken in reprisal for the making of the Where investigations do not substantiate other action will be taken against a disclosure, the welfare manager will: disclosures, the fact that the investigation whistleblower. Where disciplinary or other has been carried out, the results of the •record details of the incident action relates to conduct that is the subject investigation, and the identity of the person • advise the whistleblower of his or her of the whistleblower’s disclosure, the who is the subject of the disclosure will rights under the Act disciplinary or other action will only be taken remain confidential. • advise the Protected Disclosure after the disclosed matter has been The protected disclosure coordinator will Coordinator or the Secretary to the appropriately dealt with. DOI of the detrimental action. ensure the person who is the subject of any In all cases where disciplinary or other action disclosure investigated by or on behalf of a The taking of detrimental action in reprisal is being contemplated, the Secretary to the public body is: for the making of a disclosure can be an DOI must be satisfied that it has been • informed as to the substance of the offence against the Act as well as grounds clearly demonstrated that: for making a further disclosure. Where such allegations • the intention to proceed with detrimental action is reported, the protected •given the opportunity to answer disciplinary action is not causally disclosure coordinator will assess the report the allegations before a final decision connected to the making of the as a new disclosure under the Act. Where is made disclosure (as opposed to the content the protected disclosure coordinator is • informed as to the substance of any of the disclosure or other available satisfied that the disclosure is a public adverse comment that may be information) interest disclosure, he or she will refer it to included in any report arising from • there are good and sufficient grounds the Ombudsman. If the Ombudsman the investigation, and has that would fully justify action against subsequently determines the matter to be a • his or her defence set out fairly in any non-whistleblower in the same public interest disclosure, the Ombudsman any report. circumstances may investigate the matter or refer it to If the allegations in a disclosure have been • there are good and sufficient grounds another body for investigation as outlined in investigated, and the person who is the that justify exercising any discretion to the Act. subject of the disclosure is aware of the institute disciplinary or other action. allegations or the fact of the investigation, the protected disclosure coordinator will

178 Department of Infrastructure formally advise the person who is the 15. Review subject of the disclosure of the outcome These procedures will be reviewed annually of the investigation. to ensure they meet the objectives of the DOI will give its full support to a person Act and accord with the Ombudsman’s who is the subject of a disclosure where guidelines. the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the Secretary of DOI will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.

14. Criminal offences

DOI will ensure staff appointed to handle protected disclosures and all other employees are aware of the following offences created by the Act:

1. It is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units ($24,000) or two years imprisonment or both.

2. It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units ($6,000) or six months imprisonment or both.

3. It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

4. It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

annual report 2002–03 179 DOI contact information

Department of Infrastructure 80 Collins Street, Melbourne Victoria Australia 3000 Telephone: (03) 9655 6666 International: + 61 3 9655 6666 Facsimile: (03) 9655 6752 International: + 61 3 9655 6752 Internet: www.doi.vic.gov.au Postal address PO Box 2797Y, Melbourne Victoria Australia 3001

180 Department of Infrastructure Appendixes

annual report 2002–03 109 APPENDIXES

Output Performance Measures

Machinery-of-government changes DOI’s 2002–03 report of output announced in December 2002 resulted in performance measures does not include any major changes to DOI’s structure. The Local of the outputs which were transferred to Government Division was transferred to other departments. The full-year targets and DVC. The Planning Division, encompassing actuals for these outputs are reported in the the Planning, Heritage and Building DSE and DVC 2002–03 annual reports. functions, was transferred to DSE. A section The following outputs were transferred to of the Strategic Planning Division was also DOI as a result of the machinery-of- transferred to DSE in view of its focus on government changes: Energy Policy strategic land-use planning, while strategic Services; ICT Industry and Community planning for transport sector investments Development; and eGovernment and ICT has been retained by DOI. The former Ports Policy. An internal output review during the portfolio was incorporated into the year resulted in the four ICT-related outputs Transport portfolio. reported in DIIRD’s section of the 2002–03 The changes also included the transfer of Budget Paper 3 being merged into the two responsibility for MMV from DIIRD to DOI outputs listed above. and the transfer of responsibility for Energy In addition, the following outputs were Policy from the former DNRE to DOI. developed to reflect DOI’s altered As a result of these changes, the following organisational structure: Infrastructure outputs are no longer undertaken by DOI: Strategies, and Travel Management Regional and Rural Strategies; Metropolitan Initiatives. Development Strategies; Planning System The 2002–03 published targets and full-year Development; Planning Operations and actual results are presented in this report for Environmental Assessment; Heritage all DOI output measures as at 30 June 2003, Conservation; Regional and Urban Amenity including those that transferred from other Initiatives; Environmental Strategies and departments during the year. Initiatives; Local Government Sector Development; Governance Support; and Grants Funding for Public Libraries and Other Local Government Services.

110 Department of Infrastructure Infrastructure Planning and Policy (a)

These outputs involve the planned delivery of transport infrastructure and travel management strategies, port development strategies and energy policy services aimed at improving the economic and social capacity of Victoria. Key elements include integrated transport planning in regional, rural and metropolitan areas; developing a forward infrastructure investment strategy; travel demand management initiatives such as the TravelSmart program; initiatives to achieve the Government’s ports policy goals; and the provision of energy policy advice to government in order to secure a safe, sustainable and cost-effective energy supply to the State.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Infrastructure strategies(a) Produce strategies for regional, rural and metropolitan Victoria by working collaboratively across government with other development agencies and consultatively with the community to develop planning frameworks, infrastructure priorities and implementation processes. Quantity Metropolitan subregional land-use and transport strategies commenced number 2 1 Quality Projects completed against agreed plans and time frames per cent 100 99 Timeliness Metropolitan subregional land-use and transport strategies commenced date Dec. 2002 July 2002 Cost Total output cost $ million 2.8 1.5

Travel management initiatives(a) Review travel demand management and transport policies and practices to manage travel demands in urban and rural areas. Quantity TravelSmart Pilot Program number 1 1 Cost Total output cost $ million 4.7 3.5

Port development strategies Develop, manage and monitor the implementation of strategies and initiatives created to deliver the Government’s port policy goals. These services aim to improve the policy/regulatory framework for efficient and safe operation of ports and effective medium and long-term transport logistics. In addition, land-use planning ensures ongoing competitiveness of these critical trade gateways. Quantity Port reform per cent complete 50 60 Channel deepening – detailed investigations per cent complete 60 60 Quality Projects completed against agreed plans and time frames per cent 100 100 Timeliness Channel deepening – detailed investigations progressed to agreed stage date June 2003 June 2003 Cost Total output cost $ million 1.9 3.1

annual report 2002–03 111 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Energy policy services(b) Provision of policy advice to deliver government objectives for a secure and cost effective energy supply to the State. Quantity Major strategic policy advice to the Government number 4 4 Strategic policy briefings to Portfolio Minister number 200 212 Exercise strategies for electricity and gas supply emergencies number 2 2 Quality Powerline relocation grants approved number 20 19 Ministerial satisfaction with policy advice received from the Division per cent 85 87.5 Compliance with criteria for approval of powerline relocation grants per cent 100 100 Responses to Ministerial correspondence delivered within agreed timelines per cent 80 81.25 Timeliness Key deliverables and projects managed on time – in line with planned and agreed project timetable 95 96 Cost Total output cost $ million 6.9 8.2

Source: Department of Infrastructure Notes: (a) This output classification was renamed and two new outputs were created to reflect machinery-of-government changes that resulted in the DOI’s strategic land-use planning function moving to DSE. These outputs reflect a full year’s activity and cost for the strategic transport planning function, which remained at DOI as at 30 June 2003. (b) This output transferred to DOI from the former DNRE during 2002–03.

ICT and Multimedia(a)

These outputs focus on a range of activities designed to enhance Victoria’s strengths in the key areas of information and communication technologies (ICT). In addition to the strong policy and strategy development role, a number of strategic programs are being delivered in the areas of ICT infrastructure, industry and community development and eGovernment. These activities include the continued implementation of the Government’s agenda as outlined in the Growing Tomorrow’s Industries Today, Regional Connections and Putting People at the Centre strategies.

Achievements relating to new investments facilitated and announced, and jobs derived from investments facilitated will be reported through the Investment Facilitation and Attraction output of DIIRD.

112 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

ICT industry and community development(a) Delivers policy advice and projects to grow a global ICT industry in Victoria and to promote the uptake of ICT across the economy. Also involves the development, contract management and monitoring of ICT community development projects designed to promote effective use of ICT in the community. Quantity Minimum ICT community development projects under way or completed number 7 7 Investment recruitment projects(b) number 100 114 Export development projects(b) number 30 41 ICT skills projects under way or completed number 6 6 Projects underway or completed to increase business use of IT and electronic commerce number 8 8 Post implementation review completed number 1 1 Quality Assessment of quarterly monitoring reports for ICT community development grant agreements undertaken per cent 100 100 Timeliness Payments made according to contracts, provided ICT community development grant recipients meet contract terms per cent 100 100 Cost Total output cost $ million 17.0 12.6 eGovernment and ICT policy(a) Delivers policy advice and projects in respect of eGovernment, government voice and data networks, and Statewide ICT infrastructure and services. Quantity Projects relating to eGovernment under way or completed number 9 9 Regional ICT projects assessed number 5 5 Minimum regional access projects under way or completed number 5 5 Policy reviews conducted number 1 1 eGovernment telecommunications/data infrastructure projects under way or implemented number 8 8 eGovernment infrastructure policy reviews completed number 1 1 Quality Advice meets quality standards per cent 100 100 Cost Total output cost $ million 18.3 14.1

Source: Department of Infrastructure (a) These outputs transferred to DOI from DIIRD as a result of machinery of government changes. (b) Represents the average number of projects being undertaken at any one time.

annual report 2002–03 113 APPENDIXES

Output Performance Measures

Ports and Intermodal Gateways These outputs involve initiatives to improve the efficiency of the transport system by addressing the interfaces of different components of this multi- faceted system. They cover the connections between ports, rail and road transport and airports in metropolitan, regional and rural Victoria.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Ports and intermodal freight Supply services to initiate, develop, manage and monitor a range of infrastructure strategies and projects designed to promote efficient, seamless transfers between road, rail and sea modes and to reduce costs to shippers.

Geelong Port Rail Access(a) per cent 100 5(b) Quantity (Lascelles Wharf) Freight and Logistics Strategy completed per cent 100 95 Melbourne Freight Hub Masterplan completed per cent 100 100 Quality Projects completed in accordance with agreed project specification per cent 100 95 Timeliness Projects completed within agreed time frames per cent 100 66(b) Cost Total output cost $ million 2.2 4.8

114 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Passenger interchange development Deliver improved accessibility and ease of use of road, rail, sea passenger, and air travel interchange facilities for the community that will encourage mobility and sustained growth in the utilisation of the State’s transport infrastructure by domestic and international travellers. This output is delivered through a combination of government and private operator resources. Quantity Cruise ship visits number 25 31(c) Cruise ship days in port number 28 39(c) Cruise ship visitor days number 39 200 46 500(c) Redevelopment of Spencer Street Station (Partnership Victoria) per cent complete 25 20(d) Rural modal interchange upgrade program implementation per cent complete 80 80 Metropolitan modal interchange upgrade program implementation per cent complete 100 100 Quality Projects completed against agreed plans and time frames per cent 100 100 Timeliness Redevelopment of Spencer Street Station: Construction commenced date Sept. 2002 Aug. 2002 Cost Total output cost $ million 22.6 35.6

Source: Department of Infrastructure (a) In 2002–03 this measure related only to the Lascelles Wharf Rail Connection. The Geelong Port Rail Access project has since been expanded to include other projects. (b) Toll GeelongPort, which owns and manages the Port of Geelong, requested and was granted a six month deferment of the Lascelles Wharf Rail Connection project so that it could review the project scope in the light of projected changes in trades across Lascelles Wharf. The business case for the project will be reassessed on the basis of the revised scope and rail traffic projections. (c) Due to changing market forces, more cruise ships called in Melbourne during the 2002–03 season than were forecast at the beginning of the season. (d) The consortium’s contractor has revised its construction methodology and adopted an amended project program. This program will meet the original completion deadline.

annual report 2002–03 115 APPENDIXES

Output Performance Measures

Regional and Rural Transport Services These outputs involve the delivery of quality public transport services to regional and rural areas of Victoria through contractual arrangements with private operators. These services include intrastate and interstate rail services, route and school bus services. Contracts with private operators are managed to ensure that service provision is in accordance with contractually agreed standards and that committed investment levels for rolling stock and new buses are delivered.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Country/Interstate rail services Manage the contractual arrangements with private operators for the delivery of quality rail passenger and associated road coach services to regional and rural areas of Victoria. Contractual performance standards are reflected in the performance measures for the delivery of the output. Quantity Total kilometres timetabled million 11.2 11.3 Services delivered per cent 99.6 99.5 Maintain freight gates for the provision of Fast Track and Charity Services number of locations 28 28 Quality Customer satisfaction threshold score 76 75.1 Services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 93.5 93.7 Passengers carried million 8.2 8.1 Rolling stock plans provided and agreed per cent 100 100 Number of claims against total general Fast Track consignments per cent 0.4 0.4 Cost Total output cost $ million 117.3 119.4

116 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Country bus services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contractual service standards and implement initiatives for new rural bus services, air-conditioning and lowering rural student fares to a Statewide standard of 50 per cent of the adult fare. Quantity Total kilometres timetabled million 17.3 17.4 Timetabled bus services delivered per cent 99 99 Quality Passengers carried million 11.7 10.9 Air-conditioned buses in service per cent 17 17 Timeliness Services within 5 minutes of timetable per cent 95 95 Cost Total output cost $ million 48.2 47.1

School bus services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contract service standards and implement approved initiatives for School Bus Services including two-way emergency communication, air-conditioning on bus replacements, flashing lights, and first-aid kits and training. Quantity Kilometres scheduled million 33.4 33.4 Timetabled bus services delivered per cent 99 99 Quality Air-conditioned school buses in service per cent 17.5 19 School bus safety program delivered – interchange upgrade per cent 80 90 Safety Program – communications/flashing lights per cent 98 100 Timeliness Services within 5 minutes of timetable per cent 99 99 Cost Total output cost $ million 136.1 137.7

Source: Department of Infrastructure

annual report 2002–03 117 APPENDIXES

Output Performance Measures

Regional and Rural Transport Infrastructure These outputs involve the development and maintenance of regional and rural transport networks by implementing major road projects, regional and rural rail projects and monitoring the quality of rail infrastructure as defined in the contracts with private operators. They facilitate the movement of goods and passengers in an efficient and timely manner.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Regional public transport passenger and freight development Ensure delivery of the Government’s commitment to regional and rural transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators. Quantity Projects continuing in 2002–03: number 4 4 - reopening of Mildura, Bairnsdale, Ararat and Leongatha country rail lines - regional fast rail infrastructure - Wodonga rail bypass - rail gauge standardisation Quality Ensure that Freight Australia measures Track Ride Quality Index number times per year 4 4 (passenger lines only) Ensure that Freight Australia meets Ride Quality specification on all passenger lines per cent compliance 100 100 Timeliness Projects provided within agreed budget and time frames (where government funded) per cent 100 85(a) Cost Total output cost $ million 38.5 12.4

118 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Regional road projects(b) Reduce travel time, lower transport operating costs, and upgrade the quality of roads with respect to safety and increased access through improved road transport links. Completion of major road projects to regional centres, adding new roads and paving, strengthening bridges, intersection improvements and road alignment, completing regional arterial road projects and improving road transport links to regional and rural centres. Quantity Road assistance grants announced(c) number 34 34 Projects commencing: number 1 1 - Calder Highway (Kyneton–Faraday section) Projects continuing: number 3 2(d) - Calder Highway (Carlsruhe) - Calder Highway (Kyneton–Faraday section) - Hume Highway (Albury–Wodonga Bypass) Projects to be completed: number 2 3(d) - Geelong Road - Goulburn Valley Highway (Murchison East) Road projects completed covering duplications and overtaking lanes km 6.4 7.6 Bridge strengthening and replacement: - Projects completed number 21 17(e) - Projects in progress number 5 7(e) - Projects commencing number 22 20(f) Road improvements (including intersections and realignments): - projects completed number 30 20 - projects in progress number 4 4 - projects commencing number 26 19 Quality Stakeholder satisfaction with grants administration(c) per cent 85 85 Projects delivered in accordance with agreed scope and standard per cent 100 100 Timeliness Programmed works >$5 million completed on time per cent 100 100 Projects delivered in accordance with government-approved program per cent 100 83 Cost Total output cost $ million 200.0 167.7

annual report 2002–03 119 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Regional road network maintenance Provision of maintenance for declared rural arterial roads, including pavement, bridges, roadside, and traffic facilitation components, covering routine and periodic maintenance, rehabilitation, and operational supervision of tasks/projects. Quantity Lane – km of network maintained km 40 200 40 195 Sq. metres resurfaced (’000 m2) 11 700 11 588(g) Bridges treated (periodic maintenance and rehabilitation) number 275 288(h) Quality Network to intervention levels per cent 90 90 Network >4.2 IRI per cent 10.6 10.6 Network >5.3 IRI per cent 2.7 2.7 Smooth travel exposure per cent 92 92 Bridges mass limited per cent 3 3.6 Bridges with Level 4 defects per cent 3.4 3.4 Timeliness Annual program completed per cent 100 100 Cost Total output cost $ million 156.3 156.6

Source: Department of Infrastructure Notes: (a) Progress on the Wodonga Rail Bypass is dependent on negotiations with the Commonwealth and New South Wales governments. Progress on Rail Gauge Standardisation is subject to negotiations with Freight Australia and other stakeholders. (b) A review of VicRoads’ regional road project outputs was conducted during the year. This led to the creation of a new output: Regional Road Projects. This output merged the two previous outputs: Regional Arterial Road Links and Major Regional Road Projects. (c) These measures moved to this output following the transfer of the former ‘Grants Funding for Public Libraries and Other Local Government Services’ output to DVC. (d) Calder Highway – Carlsruhe completed ahead of schedule. (e) Two projects in original 2002–03 completion target will now continue due to the impact of bush fires and planning permit delays; two other projects are yet to commence due to contractor unavailability. (f) Two municipal projects on Woolsthorpe–Heywood Road are yet to commence. (g) Delivery of program completed, unit shortfall due to acceleration of high priority projects in 2001–02 that were included in the 2002–03 target. (h) Thirteen additional low-cost projects (<$3,000) were completed.

120 Department of Infrastructure Metropolitan Transport Services These outputs involve the delivery of a quality public transport service to the metropolitan area through contractual arrangements with private operators. These services include rail, tram and routed buses. Contracts with private operators are managed to ensure that service provision is in accordance with contractually agreed standards and that the committed investment levels for rolling stock and new buses are delivered.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Metropolitan train services Manage the contractual arrangements with private operators for the delivery of quality metropolitan train services. Contractual performance standards are reflected in the performance measures for the delivery of outputs. Quantity Total kilometres timetabled million 16.8 16.8 Services delivered per cent 99.4 99.6 Quality Customer satisfaction index score 71 71.3 Passengers carried million 133.5 133.8 Services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 96.5 96.9 Rolling stock plans provided and agreed per cent 100 100 Cost Total output cost $ million 560.8 570.1

Metropolitan tram services Manage the contractual arrangements with private operators for the delivery of quality metropolitan tram services. Contractual performance standards are reflected in the performance measures for the delivery of outputs. Quantity Total kilometres timetabled million 22 22 Service delivery per cent 99 99.6 Quality Customer satisfaction index score 71 71.6 Passengers carried million 132 134.7 Services completing journey per cent 97.4 99.2 Services departing a monitoring point no more than 59 seconds before and less than 5 minutes 59 seconds after timetable: - 2nd monitoring point per cent 95 91.2 - 2nd last monitoring point per cent 72 68.1 Rolling stock plans provided and agreed per cent 100 100 Cost Total output cost $ million 275.2 322.9

annual report 2002–03 121 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Metropolitan bus services Manage the contractual arrangements with private operators for the delivery of quality metropolitan bus services in accordance with the contractual service standards and implementation of approved initiatives for new bus services, including new weekday evening and weekend Metropolitan bus services and air-conditioning on bus replacements. Quantity Kilometres scheduled million 72.4 73.5(a) Timetabled bus services delivered per cent 99 100 Quality Customer satisfaction index score 69 71.9 Passengers carried million 92.5 93.9 Air-conditioned and low-floor route buses in service per cent 17.1 26(b) Timeliness Services within 5 minutes of timetable per cent 95 91.9 Cost Total output cost $ million 270.1 282.6

Source: Department of Infrastructure Notes: (a) The increase in kilometres scheduled is the result of bus service enhancements on 25 routes. (b) New service initiatives implemented in 2002–03.

122 Department of Infrastructure Metropolitan Transport Infrastructure and Public Development Projects These outputs involve the development and maintenance of metropolitan road networks and the implementation of major civic and road projects, the management and delivery of major public construction and land development projects, and the development of metropolitan rail and tram infrastructure as set out in the contracts with the private operators. They provide major parts of the transport network in the metropolitan area and aim to facilitate the movement of goods and passengers in an efficient, timely and safe manner to their destinations.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Metropolitan public transport development Provide enhanced transport networks planning capacity to ensure delivery of the Government’s commitment for metropolitan public transport infrastructure development and to monitor the quality of rail infrastructure as set out in the contracts with the private operators. Quantity Franchise maintenance account funds fully allocated to defined maintenance and renewal works per cent 100 100 Quality Ensure franchisee asset management plans are provided number 4 4 Ensure franchisee asset management reports are provided number 4 4 Temporary speed restrictions due to track condition in the metropolitan area no more extensive than that which existed at franchise commencement number 4 4 Timeliness Feasibility studies for proposed works within agreed time frames and budgets per cent 100 100 Cost Total output cost $ million 10.3 5.4

Major metropolitan road projects Deliver projects to improve the performance of Melbourne’s arterial road network by carrying out large-scale projects addressing network discontinuities and bottlenecks aimed to improve access, decrease travel time, and reduce transport costs. Quantity Projects to commence: number 1 0(a) - Scoresby Freeway Projects continuing: number 4 2(a) - Craigieburn Bypass - Hallam Bypass - Eastern Freeway extension - Scoresby Freeway Projects to be completed: number 2 2 - Geelong Road - Eastern Freeway (Park and Ride) Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Projects delivered in accordance with original planned completion date per cent 100 100 Cost Total output cost $ million 108.8 109.9

annual report 2002–03 123 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Metropolitan arterial road links Deliver projects to improve the performance of Melbourne’s arterial road network by carrying out projects addressing deficiencies and bottlenecks through the provision of new link roads and intersection improvements aimed at improving access, decreasing travel time, increasing residential amenity and reducing transport costs, particularly in the outer suburbs. Quantity Noise barriers retrofitted(b) km .. 0.9 Road projects covering duplications and overtaking lanes: - projects completed lane km 25 32(c) - projects in progress lane km 26 23(c) - project commencing lane km 3 3 Bridge strengthening and replacement: - projects completed number 4 3(d) - projects in progress number .. .. - projects commencing number 2 2 Pavement widening (including shoulders) - projects completed lane km .. .. - projects in progress km .. .. - projects commencing km .. .. Road improvements (including intersections and realignments): - projects completed number 2 1(e) - projects in progress number 1 2(e) - projects commencing number 1 1 Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Projects delivered in accordance with government-approved program per cent 100 80(f) Cost Total output cost $ million 148.0 161.6

124 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Metropolitan road network maintenance Provision of the annual maintenance program for declared metropolitan arterial roads, including pavement, bridges, roadside and traffic facility components, covering routine and periodic maintenance, rehabilitation and operational management tasks. Quantity Lane – km of network maintained km 10 520 10 510 Sq. metres resurfaced m2 (’000) 2 500 2 505 Bridges treated (periodic maintenance and rehabilitation) number 86 91(g) Quality Network to intervention levels per cent 90 90 Network >4.2 IRI per cent 12.9 12.9 Network >5.3 IRI per cent 4.6 4.6 Smooth travel exposure per cent 91 91 Bridges mass limited per cent 3 3.7 Bridges with Level 4 defects per cent 1.4 1.4 Timeliness Annual program completed per cent 100 100 Cost Total output cost $ million 154.2 158.6

annual report 2002–03 125 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Major public construction and land development Management and delivery of nominated public construction and land development projects, the coordination of development projects and associated feasibility studies. Quantity Project management: - Beacon Cove number 1 1 - Parkville number 1 1 - Congress Centre number 1 1 Project feasibility studies conducted number 5-10 5 Quality Projects delivered comply with agreed plans per cent 100 100 Timeliness Hazardous waste siting: - Stage 2 public consultation process commenced for soil recycling facility date June 2003 June 2003 - facilitate establishment of soil recycling facility date Dec. 2002 Dec. 2002 Commonwealth Games Athletes’ Village: Evaluation of proposals date Sept. 2002 Sept. 2002 Bundoora Land Development: - opening of Stage 2 display village date Dec. 2002 June 2003(h) Jolimont/Eastside Rationalisation Program: settlement of outstanding land sales date Dec. 2002 (i) Kensington Banks Residential Program: sales of final land parcels date Dec. 2002 (j) Cost Total output cost $ million 3.0 0.4

Source: Department of Infrastructure Notes: (a) The Eastern Freeway Extension and the Scoresby Freeway project have been combined into one project: the Mitcham-Frankston Freeway. (b) This measure moved to this output following the transfer of the former ‘Environmental Strategies and Initiatives’ output to DSE. (c) Increase related to completion of Melton Highway project (1.4 km) which was carried over from 2001–02 and Hutton Road (5.4 km) was originally scheduled for completion in 2003–04 but is ahead of schedule and was completed in 2002–03. (d) Macedon Street, Sunbury delayed due to late issuing of work permit by Heritage Victoria and delays in reaching indemnity agreement with Freight Australia. (e) Eltham-Yarra Glen Road project will not be completed due to delay in issuing of planning permit. (f) Two projects not completed due to delay in issuing of planning permit. (g) A large number of smaller bridge treatment works were undertaken in 2002–03, with higher value works to be treated in 2003–04. (h) Extended negotiations with the purchaser of the site resulted in delays to the project. (i) Settlement deferred with Victorian Civil and Administrative Tribunal at present. (j) Negotiations ongoing, with sales to continue over the next 12 months.

126 Department of Infrastructure Transport Safety and Accessibility These outputs involve safety initiatives for road, public transport and waterway users and include services to improve accessibility and subsidised taxi travel for the disabled. This is provided through the application of performance-based standards to regulate transport providers, and to reduce the cost of regulations on business, while raising safety and access levels for the community through improved transport regulation, reform, education and prevention programs.

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Taxi, hire car and tow truck regulation Administer, regulate and monitor taxis, hire cars, special purpose vehicles, restricted hire cars, tow trucks and the driving instructor industry and ensure public transport safety standards are maintained and advanced through the implementation of new initiatives. Quantity Taxis audited number 13 000 10 957(a) Tow truck licence transactions number 420 533 Tow truck driver authorities issued number 1 100 1 049 Commercial passenger vehicle licence transactions: - taxis number 1 200 1 683(b) - others number 350 335(c) Commercial passenger vehicle driver certificates issued number 14 000 14 045 Driver certificates, authorities and instructor applications: suspensions, revocations and refusals number 180 146 Driver instructor authorities processed number 450 307 Quality Taxis and tow trucks conform to quality standards per cent >94 83 Taxi service complaints investigated number 600 715(d) Tow Truck Allocation Centre calls answered within 45 seconds per cent 96 97 Successful criminal prosecutions per cent 96 89(e) Appeals dismissed: driver certificates, authorities and instructor applications per cent 94 97 Timeliness Preliminary investigation of serious taxi service complaints completed within 10 working days per cent 88 96 Cost Total output cost $ million 4.0 3.1

annual report 2002–03 127 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Accessible transport initiatives Provide access for the disabled to transport facilities by monitoring obligations under the Disability Discrimination Act 1992 (Cwth), programs of the private operators and implementation of direct government funded initiatives. This includes the Multi Purpose Taxi Program of subsidised taxi services for the disabled. Quantity Taxi trips: - passenger only number (‘000) 5 400 5 136 - with wheelchair number (‘000) 500 500 Applications assessed number 26 500 26 092(f) Customer telephone enquires number (‘000) 50 72 Number of transport access sites treated number 300 312(g) Quality Projects delivered to agreed scope or standard per cent 100 100 Timeliness Applications completed within 10 working days per cent 96 98 Works completed within agreed time frames per cent 100 100 Cost Total output cost $ million 51.8 49.0

Accident black spots Deliver an agreed program of remedial actions to upgrade identified high accident black spot and black length areas of roads to reduce the cause of regular severe road accidents that have high social costs to the community. Quantity Projects to be completed number 454 501(h) Quality Projects completed to agreed scope and standard per cent 100 100 Timeliness Programmed work to be completed in accordance with agreed time frames per cent 100 100 Cost Total output cost $ million 104.0 87.1

128 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Traffic and road use management improvements Provide and undertake low-cost traffic improvement projects and services including traffic priority signalling and information services, incident management, and the administration of road freight regulatory reform for greater efficiency of freight movement. Quantity Traffic management projects number 15 11 Road user improvement projects number 145 147 Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Program works completed within agreed time frames per cent 100 100 Cost Total output cost $ million 22.7 30.4

Vehicle and driver regulation Provision of a vehicle registration and driver licensing service to provide a framework covering the integrity of the road-user environment, ensuring the registration of trained drivers, roadworthy vehicles, and the ability to easily trace missing vehicles. Quantity New driver licences issued number (’000) 103 113 Driver licences renewed number (’000) 485 488 New vehicle registrations issued number (’000) 451 444 Vehicle registrations renewed number (’000) 3 905 3 772 Vehicle registration transfers number (’000) 873 875 Vehicle and driver information requests processed number (’000) 1 555 1 454 Quality User satisfaction with registration and licensing per cent >90 87 Currency of registration and licensing records per cent 99 98 Timeliness Customers served within 10 minutes in licensing and registration offices per cent >80 82 Average time to answer central calls seconds <30 38 Cost Total output cost $ million 87.6 96.0

annual report 2002–03 129 APPENDIXES

Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Road safety initiatives and regulation Provision of a safety program that embraces two main areas, road user education and the upgrading of aspects of the road infrastructure system that have proved dangerous. Quantity Road Safety Projects number 66 54(i) Quality Projects completed within specified scope and standards per cent 100 100 Timeliness Programmed works completed within agreed time frames per cent 100 79 Cost Total output cost $ million 45.8 46.8

Public transport safety initiatives and regulation Maintain and advance public transport safety standards through the implementation of new initiatives and operator accreditation systems. Quantity Safety initiatives: - unannounced audits number 120 142 - bus mechanical inspections number 50 50 Quality Audit observations closed out by next compliance audit per cent 100 100 Non-conformances/compliances closed out within two months per cent 100 86 Material changes to accreditation responded with feedback within two weeks per cent 100 100 Timeliness Audits carried out: rail (within 12 months) per cent 100 99 Audits carried out: bus (within 24 months) per cent 100 100 Follow up of critical defect notices within five days per cent 90 95 Review of responses of inquiry within six weeks per cent 90 95 Cost Total output cost $ million 3.8 4.8

.

130 Department of Infrastructure Major outputs/deliverables Performance measures Unit of measure 2002–03 target 2002–03 actual

Marine safety initiatives and regulation Develop and administer the policy/regulatory framework for the safe and efficient operation of commercial and recreational vessels in Victorian waters and implement a range of programs and initiatives designed to achieve the Government’s marine safety objectives. Facilitate the marine pollution response system and ballast water and hull fouling regime to prevent pests entering coastal waters. Quantity Vessel compliance with registration requirements per cent 100 89(j) All personal watercraft operators and operators under 21 years licensed per cent 100 83(k) Audit compliance with Recreational Boating Regulations: - boats audited per cent 5 5.7 - waterways audited per cent 10 27(l) Commercial vessels surveyed number 1 500 1 409(m) Marine operators’ certificates issued number 300 521 Safety audits performed on commercial vessels number 150 135 Oil pollution response capability to react within four hours of reporting per cent 100 100 for small spills(n) coastal coverage Quality Reported oil pollution incidents responded to and resolved(n) per cent 100 100 Projects completed against statutory requirements and specifications per cent 95 95 Timeliness Fully accessible system for Recreational Boat Operator licensing in place (all operators aged 21 years and over) date 1 Feb. 2003 1 Feb. 2003 Capital grant for Boating Safety Fund Program per cent 100 21.5(o) Cost Total output cost $ million 9.8 14.1

Source: Department of Infrastructure Notes: (a) Variance from 2002–03 target reflects the redirection of resources into touting issues at Melbourne Airport and complaint investigations. (b) Higher than anticipated number of licence transactions due to a number of taxi assignments expiring and then being renewed. (c) Implementation of new legislation caused fewer applications to be processed. (d) Increase in the number of investigations into service complaints is due to the implementation of a more accessible and comprehensive recording and monitoring system, set up during 2001–02 by the Victorian Taxi and Tow Truck Directorate. (e) This measure was introduced in 2002–03 and an initial stretch target was set but not achieved. (f) Variance from 2002–03 target due to the introduction of amended application forms which require details of both an applicant’s disability and functional mobility. (g) Target exceeded due to additional sites which had disability access initiatives installed. (h) Includes projects carried forward from 2001–02 and early completion of some projects originally targeted for completion during 2003–04. (i) Three projects delayed, two projects discontinued and seven projects (including five rail crossing treatments) in progress nearing completion. (j) This measure is impacted by external factors that are beyond DOI’s control. For the 2003–04 year, the target has been revised (>90 per cent) to better reflect this and the achievement of staged improvements in compliance levels. (k) Given that the licensing arrangements are new and that licensing levels are also affected by external factors outside DOI’s control, a revised measure and target has been developed for the 2003–04 year. (l) 2002–03 target exceeded due to additional inspections undertaken by the Marine Safety Inspectorate, and audits conducted by Waterway Managers following reviews of zoning and operating rules, and navigation aids and signage. (m) Lower-than-anticipated outcome reflects cyclical and seasonal factors which affect the availability of vessel fleet for survey. (n) These measures moved to this output following the transfer of the former ‘Environmental Strategies and Initiatives’ output to DSE. (o) The 2002–03 Boating Safety Funding Program was not announced until June 2003, which delayed the approval and payment of grants to recipients.

annual report 2002–03 131 APPENDIXES

Legislation administered as at 30 June 2003

As at 30 June 2003, the following legislation was administered by the Minister for Transport, the Minister for Major Projects, the Minister for Energy Industries and the Minister for Information and Communication Technology.

Acts administered by Melbourne City Link Act 1995 Road Safety Act 1986 the Minister for Transport This Act ratifies the Agreement between This Act provides for the registration of Border Railways Act 1922 the State and Transurban relating to motor vehicles, licensing of drivers, offences the construction and operation of the involving alcohol or other drugs and other This Act ratifies an agreement between the Melbourne City Link; gives the State certain provisions regulating the operation and States of Victoria and New South Wales powers in relation to land affected by the use of motor vehicles. as to the construction, maintenance project; gives the Link Corporation certain and operation of railway lines and the Transport Act 1983 powers in relation to roads in the project construction and maintenance of bridges area; and empowers the fixing, charging This Act establishes and sets out the across the Murray River. and collection of tolls in relation to the functions and powers of DOI in relation Chattel Securities Act 1987 use of vehicles in toll zones. to transport matters, the Public Transport Corporation and the Roads Corporation. Part 3 (the remaining provisions are National Rail Corporation The Act provides for the licensing of administered by the Minister for Consumer (Victoria) Act 1991 commercial vehicles and for various Affairs). This Act makes provision for security This Act approves and gives effect offences. The Act also governs railway interests in motor vehicles, trailers and to an agreement made between the and tram safety. vessels, including registration of interests. Commonwealth and the States of Victoria, Very Fast Train (Route Local Government Act 1989 New South Wales, Queensland and Western Investigation) Act 1989 Clauses 4 and 9(3) of Schedule 11 and Australia relating to the establishment and The purpose of this Act is to facilitate the section 123, in so far as it relates to the operation of the National Rail Corporation investigation of a route for a very fast train revocation of local laws made pursuant Limited. linking Melbourne with other centres within to the powers conferred by those clauses Public Transport Competition or outside the State. by reason of section 207 of the Act. Act 1995 Crown Land (Reserves) Act 1978 (This Act is otherwise administered by This Act provides for the accreditation of the Minister for Local Government and passenger bus operators and implements Only in so far as it relates to the land shown the Attorney-General). a system of service contracts for route as Crown Allotment 18, section 12, City of Port Melbourne, Parish of Melbourne South This Act provides generally for matters service operations. as shown on Original Plan No. 119746-A to do with local government in Victoria. Rail Corporations Act 1996 lodged in the Central Plan Office – The provisions administered by the Minister The main purpose of this Act is to establish (LA/32/0012) known as Station Pier. for Transport relate to traffic control. Victorian Rail Track, the Spencer Street (The remaining provisions are administered Station Authority and V/Line Passenger by the Minister for Planning and the Minister Corporation. It also provides a rail access for Finance). regime, and confers certain powers on rail and tram operators.

132 Department of Infrastructure Land Act 1958 Port Services Act 1995 Urban and Regional Land In so far as it relates to the exercise of Except for: Corporation Act 1997 power relating to the leases and licences This Act establishes the Urban and Regional Sections 45–57, 59–63 and 119–123 (these under Subdivisions 1 and 2 of Division 9 Land Corporation to develop residential and provisions are administered by the Minister of Part 1 in respect of the land described other land in Victoria on a commercial basis. for Finance). as Allotment 18 of Section 12 City of Port Melbourne Parish of Melbourne South, Sections 25, 27–29, 96, 99–108, 124–125 Acts administered by the being the land in Certified Plan No. 119746 and all of Schedule 1 except clauses 4, 6(1) Minister for Energy Industries and (2) (these provisions are administered lodged in the Central Plan Office of DSE, Electricity Industry Act 2000 known as Station Pier. by the Treasurer). This Act regulates the Victorian electricity This Act establishes the Melbourne Port (This Act is otherwise administered by supply industry. The Act requires persons Corporation, Hastings Port (Holding) the Attorney-General, the Minister for who generate, transmit, distribute, supply Corporation and the Victorian Corrections, the Minister for Finance, or sell electricity to obtain a licence from the Channels Authority. the Minister for Health, and the Minister ESC, or a licence exemption. Key provisions for Planning). Westernport include a consumer safety net for domestic Marine Act 1988 (Crib Point Terminal) Act 1963 and small business customers in the transition to effective retail competition. This Act establishes the Director of Marine This Act assists the development and Safety and provides for the objects, powers operation of a petroleum terminal at Crib Electricity Safety Act 1998 Point by providing for certain existing and and functions of the Director. The Act also This Act regulates the safety of electricity new easements, and clarifying the status of provides for registration of vessels, regulation supply and use in Victoria, and the efficiency existing agreements relating to the pipeline of the operation of vessels, offences involving of electrical equipment. The Act establishes running from the terminal site to Dandenong. alcohol, prevention of pollution of State the Office of the Chief Electrical Inspector waters, the adoption of certain international Acts administered by the as the regulator for these purposes. conventions, enforcement of various offences Minister for Major Projects through the issue of marine infringement Fuel Emergency Act 1977 notices and for other matters. Docklands Authority Act 1991 This Act sets out Ministerial powers to preserve and allocate fuel supplies during Pollution of Waters by Oil and This Act establishes the powers and proclaimed fuel emergencies. Noxious Substances Act 1986 functions of the Docklands Authority. Except for sections 30 and 47, which are Project Development and Gas Industry Act 2001 jointly administered with the Minister for Construction Management This Act regulates the Victorian gas industry. Environment; and sections 8, 9, 10, 11, 12, Act 1994 The Act requires persons who distribute or 13, 18, 19, 20, 21, 22, 23, 23B, 23D, 23E, Parts 5 (except to the extent that it relates sell gas to obtain a licence from the ESC, 23G, 23J, 23K, 23L and 24E (which are to the exercise of powers and functions or a licence exemption. The Act continues administered by the Minister for under Part 9A of the Planning and the Victorian Energy Networks Corporation, Environment). Environment Act 1987), 5A and 8. the independent system operator for the Victorian gas wholesale market. Key This Act provides for the protection of the (The remainder of the Act is administered provisions include a consumer safety net for sea and other waters from pollution by oil by the Premier, except Parts 4 and 7 and domestic and small business customers in and other noxious substances. section 46, which are administered by the the transition to effective retail competition. Minister for Planning).

This Act facilitates the delivery of infrastructure projects and establishes the Secretary to DOI as a body corporate.

annual report 2002–03 133 APPENDIXES

Legislation administered as at 30 June 2003

Gas Pipelines Access (Victoria) Acts administered by the Act 1998 Minister for Information and Communication Technology This Act provides for the regulation of third party access to natural gas pipeline systems. There are no Acts currently administered The Act is part of a national scheme which by this Minister. gives effect to the National Third Party Access Code for Natural Gas Pipeline Acts passed Systems. The ‘lead legislation’ is the Gas during 2002–03 Pipelines Access (South Australia) Act 1997. Minister for Transport Gas Safety Act 1997 Road Safety (Responsible Driving) This Act regulates the safety of gas supply Act 2002 and use in Victoria. The Act establishes the Office of Gas Safety as the regulator Transport (Highway Rule) Act 2002 for these purposes. Road Safety (Heavy Vehicle Safety) National Electricity (Victoria) Act 2003 Act 1997 Southern and Eastern Integrated This Act regulates the National Electricity Transport Authority Act 2003 Market. The Act is part of a national scheme Transport (Miscellaneous which gives effect to the National Electricity Amendments) Act 2003 Law. The ‘lead legislation’ is the National Electricity (South Australia) Act 1996. Port Services (Port of Melbourne Reform) Act 2003 Nuclear Activities (Prohibitions) Act 1983 Minister for Major Projects This Act prohibits uranium mining in Victoria, Victorian Urban Development and the construction or operation of certain Authority Act 2003 nuclear facilities in Victoria, including nuclear reactors and nuclear power reactors. Minister for Energy Industries The Act also regulates the possession Energy Legislation (Consumer of certain nuclear materials, and assists the Protection and Other Commonwealth in meeting its international Amendments) Act 2003 nuclear non-proliferation objectives. Minister for Information and State Electricity Commission Communication Technology Act 1958 No Acts passed during 2002–03 Section 107. (This Act is otherwise administered by the Treasurer).

Section 107 preserves the electricity theft and tampering provisions in the Electricity Light and Power Act 1958.

134 Department of Infrastructure Budget Portfolio Outcomes

The Budget Portfolio Outcomes statements provide a comparison of the actual financial results for all entities within the Infrastructure budget portfolio with the forecasts published in Budget Paper No. 3 – 2003-04 Budget Estimates.

The statements reflect the machinery-of- government changes which were effective from 1 January 2003 (refer to Note 1 (a) (i) of the 2002-03 Financial Statements for details).

The statements are prepared on a consolidated basis. Entities are consolidated within a budget portfolio when 50 per cent or more of their funding is received through appropriations and they are directly accountable through Ministers to Parliament. The entities included in the statements are:

Department of Infrastructure

VicRoads

Heritage Council Victoria (1 July 2002 to 31 December 2002)

Financial transactions and balances are classified into either controlled or administered in accordance with AAS 29 Financial Reporting by Government Departments and as agreed with the Treasurer for the purposes of Budget Paper No. 3.

Budget Portfolio Outcomes statements are not prepared on the same basis as DOI’s financial report and are not subject to audit by the Victorian Auditor-General’s Office.

annual report 2002–03 135 APPENDIXES

Budget Portfolio Outcomes

Statement of Financial Performance

2002–03 2002–03 Variation Variation budget (a) actual ($ million) ($ million) % ($ million) Revenue from ordinary activities Output appropriations 2 542.8 2 442.5 (3.9) (100.3) Resources received free of charge 0.0 7.8 – 7.8 Sale of goods and services 101.1 130.2 28.8 29.1 Commonwealth grants 0.0 0.0 – 0.0 Taxes 48.1 50.5 4.9 2.4 Fines 2.0 1.9 (4.0) (0.1) Other revenue and revenue from other parties 135.9 (17.5) (112.9) (153.4) 2 829.9 2 615.3 (7.6) (214.6)

Expenses from ordinary activities Employee benefits 223.6 286.3 28.1 62.7 Depreciation and amortisation 241.1 259.4 7.6 18.3 Resources provided free of charge –––– Grants and other payments 553.1 585.7 5.9 32.6 Capital asset charge 105.0 68.3 (35.0) (36.7) Supplies and services 1 523.0 1 482.4 (2.7) (40.6) Other expenses from ordinary activities 0.0 4.1 – 4.1 Borrowing costs 8.3 7.6 (8.1) (0.7) 2 654.1 2 693.8 1.5 39.7 Result from ordinary activities 175.8 (78.5) (144.7) (254.3)

Loss from extraordinary items Net result for the reporting period 175.8 (78.5) (144.7) (254.3) Net increase in asset revaluation reserve 0.0 611.0 – 611.0 Total revenues, expenses and revaluations recognised directly in equity –––– Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 175.8 532.5 202.9 356.7

Note:

(a) The 2002–03 budget has been adjusted for machinery-of-government changes for the period 1 January 2003 to 30 June 2003.

136 Department of Infrastructure Statement of Financial Position

2002–03 2002–03 Variation Variation budget (a) actual ($ million) ($ million) % ($ million) Current assets Cash assets 85.7 59.9 (30.1) (25.8) Other financial assets 35.0 64.0 83.1 29.1 Receivables 70.9 81.9 15.5 11.0 Inventories 7.4 8.2 10.8 0.8 Prepayments 2.9 2.3 (20.7) (0.6) Total current assets 201.9 216.3 7.2 14.4

Non-current assets Receivables 336.9 583.0 73.1 246.1 Inventories 5.4 3.8 (29.6) (1.6) Other financial assets 3 621.7 3 736.3 3.2 114.6 Property, plant and equipment 13 278.7 13 266.3 (0.1) (12.4) Intangible assets 10.4 9.3 (10.7) (1.1) Other 0.3 0.0 (100.0) (0.3) Total non-current assets 17 253.4 17 598.8 2.0 345.3 Total assets 17 455.3 17 815.1 2.1 359.8

Current liabilities Payables 302.9 335.3 10.7 32.3 Provisions 58.4 61.1 4.7 2.7 Other 20.3 10.9 (46.4) (9.4) Total current liabilities 381.6 407.3 6.7 25.6

Non-current liabilities Interest bearing liabilities 0.0 15.3 0.0 15.3 Provisions 439.7 489.0 11.2 49.3 Other 0.5 4.9 880.0 4.4 Total non-current liabilities 440.2 509.2 15.7 69.0 Total liabilities 821.8 916.5 11.5 94.6 Net assets 16 633.5 16 898.7 1.6 265.2

Equity Contributed capital 14,750.5 14,660.0 (0.6) (90.5) Reserves 2,192.5 2,803.5 27.9 611.0 Accumulated surplus (309.5) (564.9) 82.5 (255.4) Total equity 16 633.5 16 898.7 1.6 265.2

Note:

(a) The 2002–03 budget has been adjusted for machinery-of-government changes for the period 1 January 2003 to 30 June 2003.

annual report 2002–03 137 APPENDIXES

Budget Portfolio Outcomes

Statement of Cash Flows

2002–03 2002–03 Variation Variation budget (a) actual ($ million) ($ million) % ($ million) Cash flows from operating activities Receipts from government 2 538.8 2 177.7 (14.2) (361.1) Receipts from other entities 213.3 235.5 10.4 22.2 Payments for supplies, grants and employees (2 292.8) (2 272.9) (0.9) 19.9 459.3 140.3 (69.5) (319.0) Interest received 0.4 4.0 902.5 3.6 Other revenue 62.5 164.6 163.4 102.1 Capital asset charge (105.0) (68.3) (35.0) 36.7 Borrowing cost expenses (8.3) (7.6) (8.1) 0.7 Net cash flow inflow from operating activities 408.7 233.0 (43.0) (175.7)

Cash flows from investing activities Payments for property, plant and equipment (550.6) (316.8) (42.5) 233.8 Proceeds from sale of property, plant and equipment 10.1 17.0 68.7 6.9 Payments for investments ...... (Repayments of) loans by other entities - (26.1) - (26.1) Net cash flow (outflow) from investing activities (540.5) (325.9) (39.7) 214.6

Cash flows from financing activities Net proceeds from capital contribution by State Government 131.8 51.7 (60.7) (80.1) Net proceeds from borrowings - 15.3 - 15.3 Net cash inflows (outflows) from financing activities 131.8 67.0 (49.1) (64.8) Net increase (decrease) in cash held - (25.9) - (25.9) Cash held at the beginning of the financial year 85.7 85.7 - - Cash held at the end of the financial year 85.7 59.8 (30.2) (25.9)

Note:

(a) The 2002–03 budget has been adjusted for machinery-of-government changes for the period 1 January 2003 to 30 June 2003.

138 Department of Infrastructure Administered Items Statement 2002–03 2002–03 Variation Variation budget (a) actual ($ million) ($ million) % ($ million) Administered revenue Appropriations made on behalf of State 13.8 21.5 55.8 7.7 Resources provided free of charge –––– Special appropriations –––– Sale of goods and services 3.7 1.1 (70.3) (2.6) Commonwealth grants 438.9 394.2 (10.2) (44.7) Other grants – 0.3–– Taxes 1 023.5 1 083.8 5.9 60.3 Fines 3.5 6.4 82.9 2.9 Fees 26.6 16.1 (39.5) (10.5) Other revenue 2.8 89.1 3 082.5 86.3 Total administered revenue 1 512.8 1 612.5 6.6 99.7

Administered expenses Expenses on behalf of the State 1.4 0.0 (100.0) (1.4) Grants and other payments 184.3 193.7 5.1 9.4 Other expenses from ordinary activities 0.0 0.2 – 0.2 Payments into the Consolidated Fund 1 313.7 1 386.9 5.6 73.2 Total administered expenses 1 499.4 1 580.8 5.4 81.4 Revenue less expenses 13.4 31.7 136.5 18.3

Administered assets Cash assets 7.8 7.2 (7.1) (0.6) Receivables 168.6 188.8 12.0 20.2 Other financial assets –––– Inventories –––– Prepayments –––– Property, plant and equipment (0.1) 0.0 – 0.1 Intangible assets –––– Other –––– Total administered assets 176.3 196.0 11.2 19.7

Administered liabilities Payables 18.5 15.2 (17.7) (3.3) Interest bearing liabilities –––– Provisions –––– Amounts owing to other departments –––– Other 87.2 92.2 5.7 4.9 Total administered liabilities 105.7 107.4 1.6 1.7

Note:

(a) The 2002–03 budget has been adjusted for machinery-of-government changes for the period 1 January 2003 to 30 June 2003.

annual report 2002–03 139 APPENDIXES

Staff profile

A significant factor affecting the staff profile this year has been the machinery-of-government changes. DSE gained staff from DOI's former Planning, Heritage and Building Division and parts of the former Strategic Planning Division. DVC gained staff from DOI's former Local Government Division. DOI also gained staff from DNRE (Energy and Security), and staff from DIIRD (MMV).

Those gains and losses resulted in a net overall loss of staff from DOI, which is reflected in the figures below.

Staff profile as at 30 June 2003

Variation Variation Variation Actual from prev. Actual from prev. Actual from prev. FTE Class male year female year total year total

EO-1 1 0 0 0 1 0 1 EO-2 22 +2 1 -2 23 0 23 EO-3 27 -4 12 0 39 -4 37.6 VPS5 148 +19 69 +2 217 +21 214.3 VPS4 84 -24 75 -17 159 -41 156.4 VPS3 86 -37 81 -17 167 -54 165.2 VPS2 46 -6 85 -24 131 -30 125.8 VPS1 5 -5 6 -9 11 -14 11

Total staff 419 -55 329 -67 748 -122 734.3

Executives as at 30 June 2003

Continuing executives Special projects Total Male Female Vacancy Male Female Vacancy Class No. Var. No. Var. No. Var. No. Var. No. Var. No. Var

EO-1 1 1 2 EO-2 20 +3 -2 6 +4 3 +1 1 -1 30 EO-3 23 -6 10 4 +4 3 2 1 -5 43

Total 44 -3 10 -2 11 8 6 +1 3 1 -6 75

Executive positions reconciliation 2003 2002

Executives with remuneration more than $100,000 51 53 Add Executives employed with total remuneration below $100,000 42 19 Total as per Financial Statements 93 72 Add Vacancies 12 10 Accountable Officer 1 1 Less Separations -31 -6

Total executive positions at 30 June 2003 75 77

140 Department of Infrastructure Statutory Authorities Executive Numbers

Agency Executives at 30 June 2003

Organisation Reporting Dept. 2003 Change 2003 2002 Female Male vacant Female Male vacant

Docklands Authority DOI DOI 2 5 -4 -4 Melbourne Port Corporation DOI DOI 2 12 1 +2 +1 Office of Gas Safety DOI DNRE 3 +1 Office of the Chief Electrical Inspector DOI DNRE 5 Public Transport Corporation DOI DOI 1 -2 Spencer Street Station Authority DOI DOI 2 1 +1 +1 Urban and Regional Land Corporation DOI DOI 1 5 +1 -1 VicRoads DOI DOI 11 52 2 +3 -2 Victorian Channels Authority DOI DOI 3 1 Victorian Energy Networks Corporation DOI DNRE 1 17 +1 +1 Victorian Rail Track DOI DOI 4

Total 19 108 4 +6 -3 -4

Grand total 127 +3

annual report 2002–03 141 APPENDIXES

Industrial Relations

DOI has successfully fostered a partnership A total of 10 WorkCover claims were Staff Consultative Committee between itself, its agencies, the Government accepted for 2002–03. DOI has worked The role of the Staff Consultative and unions based on a consultative closely with a new insurer to ensure effective Committee was reviewed, the result of approach to workplace relations. Significant occupational rehabilitation and risk which will be a revitalised forum for organisational change required to build management strategies are developed to encouraging and promoting workplace DOI’s organisational capability has been meet the new legislative requirements relations based on communication and achieved successfully through staff introduced in July 2002. DOI’s cooperation in 2003–04. The committee will willingness and a cooperative and Implementation Plan under the whole-of- play an important role as the eyes and ears consultative approach between DOI and the government WorkCover Improvement of DOI in considering the impact of a new Community and Public Sector Union. Strategy has provided a focus for future Enterprise Agreement in 2003, improvements to health and safety systems Nil time was lost in 2002–03 through implementation of a new career structure in DOI. industrial disputes. and further organisational change within DOI’s Employee Assistance Program has DOI. Occupational Health and Safety been utilised by staff over the year and is reporting considered an effective early intervention Reviewing personal grievances DOI is committed to proactive management strategy that has contributed to reducing DOI’s Grievance Policy ensures that staff of individual and organisational health and stress claims and addressing other work have an avenue for redress against wellbeing and ensuring that exposure to place issues. treatment they see as unfair for risks are minimised. Selecting on merit unreasonable. The Employee Relations DOI has a wide range of occupational health Branch continues to work proactively with DOI’s Anti-discrimination Policy and and safety (OH&S) policies and procedures employees and line managers to resolve Guidelines ensure that all employment in place, underpinning its commitment to workplace issues as they arise and without decisions are based on merit. Merit and OH&S. This has ensured that there were no the need for formal grievance. equity principles are enshrined in DOI’s major health and safety incidents for the Recruitment Policy and Guidelines. Upholding public conduct year. DOI’s Ethics at Work and Managing Diversity Organisational health initiatives provided to Managing and valuing diversity policies and the Public Sector Code of staff such as vision testing and influenza DOI’s core organisational values include Conduct are integral to the way DOI staff vaccinations have targeted specific issues in valuing its people’s diversity and respecting conduct business. the DOI office environment in order to each other’s diverse knowledge, skills and reduce risks of injury, illness and WorkCover abilities. DOI employees regularly use the People management practices claims. suite of flexible workplace programs and All DOI People Management policies are Regular hazard audits of DOI workplaces policies and there is explicit available online to staff and are made were conducted over the year to ensure acknowledgement of the need for available to new staff as part of their staff are not being exposed to unnecessary individuals to balance work and personal induction. DOI has an online performance risks in the office. All first-aiders were priorities. planning system to assist individual staff with provided with the opportunity to undertake DOI aims to create an organisational culture performance work plan development and to refresher training in cardio-pulmonary in which there is tolerance, acceptance and ensure work plans are relevant and in line resuscitation. awareness of cultural diversity. DOI with business objectives. Evacuation and emergency procedures are participates in community initiatives and continually reviewed and improved in celebrations of culture such as NAIDOC consultation with DOI Wardens. The Week and Victorian Cultural Diversity Week, Wardens received refresher training regularly and has made a firm commitment to the to ensure the effectiveness of evacuation prevention of racial and religious intolerance and emergency procedures. and vilification.

142 Department of Infrastructure National Freedom of Internal Audit Competition Information Committee Policy

The Freedom of Information Act 1982 gives DOI’s Audit Committee was established DOI has complied with the requirements the public a right of access to documents to oversee and advise on matters of of National Competition Policy and is held by government departments. accountability, areas of risk and internal continuing to report to the DTF as required controls affecting the operations of the regarding implementation. For the period 2002–03, DOI received 335 department. applications. Of these requests, 141 were from Members of Parliament, nine from the DOI’s Internal Audit Charter defines the role media and the remainder was from the of the committee as assisting the DOI general public. Of the total requests Secretary and Minister in fulfilling their received by DOI, 25 went to Internal responsibilities for: Review, with two progressing to the appeal •maintaining a system of internal stage at the Victorian Civil and control Administrative Tribunal (VCAT). • fostering DOI’s ethical environment Access to documents (as defined in section •reviewing DOI’s accounting and 5 of the Act) may only be obtained through reporting practices, and written request as detailed in section 17 of • any other matters referred to the Freedom of Information Act 1982, it by DOI. addressed to: Members of the Committee are: Peter Freedom of Information Manager Lewinsky (Chair), Ian Gaudion, Peter Harris Department of Infrastructure and Bob McDonald. Mr Lewinsky and Mr GPO Box 2797Y Gaudion are independent members, Mr Melbourne, Victoria 3001 Harris and Mr McDonald are departmental Telephone (03) 9655 6380 members. Email: [email protected] DOI fosters an environment that encourages management to utilise audit services as a management tool, as well as to assist in the development and application of appropriate risk management strategies. DOI’s audit services are provided by RSM Bird Cameron.

annual report 2002–03 143 APPENDIXES

Consultants

The following table lists the consultants engaged in 2002–03 where the cost of the engagement exceeded $100,000.

Total approved Expenditure Forecast project 2002–03 expenditure Consultant Project ($ GST incl) ($ GST incl) ($ GST incl) Bovis Lend Lease Feasibility Analysis for Redevelopment of Melbourne Markets 130 000 0 130 000 Dalsey Pty Ltd Financial Analysis of Federation Square Management 198 000 91 720 106 280 KPMG Update Business Case on Melbourne Exhibition and Convention Centre Expansion 168 085 149 775 18 310 4tel Pty Ltd ICT for Public Transport Strategy Phase 1 225 000 0 225 000 Indec Consulting Project Director – Bus Contracts Task Force 325 600 325 600 0 Indec Consulting Audit and Report of Franchisees Maintained Rolling Stock 364 320 364 287 33 KPMG Corporate Market Sounding Process – Public Transport Franchising 124 824 124 824 0 Finance (Aust) Pty Ltd L E K Consulting Review of Patronage – Revenue and Revenue Company Issues 1 485 000 1 768 250 -283 250 Maunsell Australia Pty Ltd IDG – Double Stack Access in South Eastern Australia – Financial – Economic – Social and Environmental Evaluation 214 280 93 705 120 575 Maunsell McIntyre Pty Ltd Metropolitan Train Plan – Project Management 109 090 101 715 7 375 Ove Arup Pty Ltd Change management in rail accredited activities 90 000 159 827 -69 827 Parsons Brinckerhoff Australia Pty Ltd Review of Security Risk Management in Victoria's Energy Industries 302 656 302 656 0 Root Projects Victoria Royal Agricultural Show Business Case Development 525 662 120 262 405 400 Saturn Corporate Resources Pty Ltd Energy Policy Development 110 000 68 750 41 250 Sinclair Knight Merz IDG – Melbourne CBD South West Precinct Transport Management Strategy Study 130 000 130 000 0 Sinclair Knight Merz Research Wheelchair Safety at Rail Level Crossings 110 000 110 000 0 The Boston Consulting Group Information Technology - Development of a Whole of Victorian Government Infrastructure strategy 1 361 360 62 205 1 299 155 Trinitas P/L Policy Research and Advice – Development of the e-government implementation strategy 103 636 20 480 83 156

In addition, 58 consultancies costing less than $100,000 were engaged at a total cost of $1,404,148.

The responses for 2002–03 reflect the fact that 76 of the various professional service contracts entered into by DOI during the relevant period, met all three of the tests for classification as a consultancy.

These are the criteria DOI is required to apply in identifying consultant engagements for inclusion in its Annual Report.

Disclosure of Major Contracts Compliance

The Department has disclosed all contracts The disclosed contracts can be viewed on greater than $10 million in value which it www.tenders.vic.gov.au/contracts entered into in 2002-03.

144 Department of Infrastructure Whole-of-government reporting framework – Aboriginal Affairs

The information below outlines the Westgate Memorial – a requirement is Archaeologist who will: initiatives under way within DOI in relation contained within this project briefing that •provide information on the precise to Aboriginal Affairs. the original owners of the land (the Cullin location of known Aboriginal Cullin people) be identified and recognised. 1. Key DOI commitments archaeological sites in the area and relating to the Victorian Melbourne Museum – the Aboriginal mark their boundaries on the ground Indigenous community community managing the Aboriginal • survey for Aboriginal archaeological section of the museum provided a briefing sites in areas proposed for the The key commitment for DOI in relation to for the physical form of the store in which construction of new access roads, the Victorian Indigenous community is its to contain secret sacred stored objects. associated staging/storage areas and Indigenous Employment Strategy. DOI is in other ground disturbing activities Commonwealth Games Village Site – in the early stages of implementing a three- required for oil clean up operations. making the site selection for the year Indigenous Employment Plan, which Commonwealth Games Village Site, has been developed within the framework VicRoads the issue of Native Title was considered. of the whole-of-government Indigenous In consultation with AAV, the Aboriginal A report to MPV from DNRE (dated June Employment Strategy coordinated by Heritage Council (AHC) and local 2001) states that the Native Title at the Aboriginal Affairs Victoria (AAV). Indigenous communities, VicRoads has Royal Park site in Parkville is extinguished developed protocols and agreements for 2. Community consultation and by a previous exclusive possession act the management of Native Title and engagement with occurring prior to 23 December 1996. indigenous cultural heritage matters that Indigenous communities Marine Safety Victoria arise during the planning and construction Indigenous community consultation of road projects. The AAV and AHC provide MSV is responsible for ensuring effective processes and arrangements for engaging VicRoads with advice and assist consultative response to oil pollution incidents in State with Indigenous communities are in place processes with respect to Native Title and waters. Through the development of for MSV and for VicRoads, which are the cultural heritage. Generally cultural heritage Regional Marine Pollution Contingency agencies which have the most significant policy is driven by AAV, and Native Title plans, MSV has put arrangements in place degree of consultation with Indigenous policy by the Department of Justice. for designated Control Agencies to be organisations and communities in the appointed to respond to incidents within VicRoads also works with a number of Infrastructure portfolio. Consideration of their areas of responsibility. Aboriginal bodies in the fields of Native Indigenous issues is also undertaken by Title and cultural heritage as follows: MPV when deciding on the siting of AAV is required to be notified at the earliest Native title infrastructure projects. opportunity in the event of the occurrence (or likelihood of occurrence) of oil pollution • Mirimbiak Nations Aboriginal Major Projects Victoria incidents where it is considered that oil will Corporation Hazardous Waste Siting Project – the impact on the shoreline (necessitating • Native title claimant groups (including studies undertaken during site selection for foreshore clean-up action). Responsibility Yorta Yorta Nation Aboriginal the Hazardous Waste Siting project have for contacting AAV rests with MSV or the Corporation) taken into account Aboriginal and cultural agency controlling the response, in the • local indigenous stakeholders, values. These values must be satisfied for event of such an occurrence. including traditional owner groups the duration of the project. The role of AAV in oil spill clean-up (for example, Wathaurong Aboriginal Co-operative, Wurundjeri Tribe Land State Netball and Hockey Centre – MPV operations is to advise on actions required Compensation and Cultural Heritage consulted with the former Department of to minimise the risk of ground-disturbing Council). Natural Resources and Environment (DNRE activities contravening State and – now DSE) on whether the project site Commonwealth Aboriginal heritage Cultural heritage featured any Native Title issues or sites of protection legislation. On notification, • local Aboriginal cooperatives significance. AAV will alert the designated Oil Spill •AAV Aboriginal Cultural Heritage program regions • Mirimbiak Nations Aboriginal Corporation.

annual report 2002–03 145 APPENDIXES

Whole-of-government reporting framework – Aboriginal Affairs

VicRoads has established protocols for communities. It specifically targets 4. Performance measures and consultation between VicRoads and local technologically disadvantaged members of outcomes for Indigenous Aboriginal communities and stakeholders at the community, including Aboriginals. strategies a regional level, to discuss issues with the Skills.net •Wur-cum-burra Indigenous local indigenous groups when they arise as Skills.net is a community-based program to Employment Strategy. Target – part of VicRoads project planning processes. provide affordable Internet access to people eight positions in three years Planning studies take into consideration who wouldn’t otherwise have access. Four • DOI review of recruitment processes archaeological sites of Aboriginal or Indigenous groups (Yorta Yorta Aboriginal and employment support systems. European significance, and independent Corporation, Songlines Music Aboriginal Target – recruitment and retention heritage and archaeological studies and Corporation, Djeetgun Kurnai Aboriginal of Indigenous employees investigations are conducted for major Corporation and Allinjarra Aboriginal • continued provision of Indigenous projects in accordance with corporate Association) have been funded under the cultural awareness training. Target – guidelines. Skills.net program, and nine other DOI staff in relevant work areas are 3. Specific key indigenous organisations have been funded to deliver provided with appropriate Indigenous projects/initiatives/ Skills.net to a variety of target groups, cultural awareness training. strategies and links with including Aboriginals. This program 5. Forward Indigenous Growing Victoria Together contributes to the Growing Victoria practices Together outcomes of ‘Growing and linking Listed below are the key DOI projects all of Victoria’ and ‘Building cohesive Apart from the implementation of its which impact on the Indigenous community, communities and reducing inequalities’. Indigenous Employment Strategy (in line together with their links to Growing with the the Wur-cum-burra Indigenous Victoria Together. My Connected Community Employment Strategy), in the forthcoming My Connected Community is an initiative of Wur-cum-burra – Indigenous year DOI and its agencies will continue to: Employment Strategy the Victorian Government’s Connecting Communities policy, the main objective of • meet its obligations under Native Title Under its three-year Indigenous which is to encourage community groups and cultural heritage legislation, Employment Plan, DOI is committed to located in Victoria to create their own online • foster links with AAV, the AHC and employ, retain and provide meaningful communities. The program offers other Indigenous groups in the fields career opportunities for the target number participating groups a variety of free, easy of Native Title and cultural heritage of eight Indigenous employees. The Wur- to use web-based services which they can • consult with local Aboriginal cum-burra Strategy and its implementation use to communicate with existing members communities and stakeholders at a across the public sector is consistent with and like-minded communities across the regional level to discuss issues that the Government’s emphasis on world. The Yorta Yorta Aboriginal may arise as part of project planning reconciliation and will have a positive impact Corporation has been funded under My processes. on several key Growing Victoria Together Connected Community, and eight other outcomes including: ‘Promoting Rights and organisations have been funded to deliver Respecting Diversity’, ‘Building Cohesive My Connected Community to a variety of Communities and Reducing Inequalities’ and disadvantaged groups, including ‘Valuing and Investing in Lifelong Aboriginals. The delivery of this initiative is Education’. consistent with the Growing Victoria Connecting Victoria Strategy Together commitments to ‘Build faster, The Victorian Government’s Information and better, more accessible transport and Communication Strategy Connecting communication links’, and to ‘Enhance Victoria commits the Government to community participation and engagement in ensuring that all Victorians, including cultural activities’. disadvantaged groups such as Aboriginals, are able to enjoy the benefits of online technology. Connecting Communities is the Government’s framework for using technology to create and strengthen

146 Department of Infrastructure Whole-of-government reporting framework – Multicultural Affairs

The activities undertaken by DOI to support Connecting Victoria Strategy for an indefinite period, provided the Victorians from non-English-speaking licence is in English or is accompanied by an The Government’s ICT Strategy Connecting backgrounds are outlined in detail below. English translation. This applies even if age Victoria commits the Government to or other eligibility requirements to obtain a ensuring that all Victorians are able to 1. Key DOI commitments licence or permit in Victoria are not met. enjoy the benefits of online technology. Human Resource Issues Implemented through DOI’s MMV, Translation services Connecting Communities is the Government’s DOI is committed to respecting cultural Translation services are offered throughout framework for using technology to create diversity in the workplace, and in all its VicRoads’ Call Centres and the Registration and strengthen communities. Connecting dealings with stakeholders and the and Licensing Network. Translators are Communities specifically targets community. DOI has in place a range of present at information evenings and are technologically disadvantaged members Human Resources policies, guidelines and engaged as needed throughout projects. strategies to foster and support diversity of the community including non-English- in the workplace, including the Policy for speaking background Victorians. Information available in languages other than English Managing and Valuing Diversity, Policy VicRoads and Guidelines for the Prevention of Human Resource issues •brochures, which are produced in Discrimination and Policy and Guidelines multiple languages when there are VicRoads has in place policies and guidelines for Racial and Religious Tolerance. significant numbers of non-English- on Equal Employment Opportunity (EEO) These policies ensure the provision of equal speaking people who may be which promote tolerance and harmony in employment opportunities in DOI for all affected by a project or activity the workplace and discourage racism. Victorians, regardless of gender, culture, • media releases including Ministerial Training programs are provided to reinforce religious background or other differences. announcements on new initiatives or non-discriminatory behaviour. VicRoads has They facilitate the creation and maintenance project developments are sent to a policy of employment on merit, and its of an organisational culture of awareness, multicultural newspapers graduate program has ensured that its acceptance and respect of diversity. • newsletters produced by VicRoads workforce is reasonably diverse. are distributed to community groups, In addition to the policies and guidelines arrive alive! including ethnic groups. The outlined above, DOI will continue to Road Safety Strategy newsletters publicise the availability implement a range of initiatives to support of multicultural information telephone and foster a culturally diverse workplace. The arrive alive! Road Safety Strategy aims numbers These include: to reduce death and serious injuries for all • multicultural information lines with road users, including ethnic and Indigenous •reviewing grievance and anecdotal recorded messages, and options to groups. Road safety issues are communicated performance management issues to speak to a project team representative to ethnic groups through mass media ascertain issues perceived as arising via an interpreter are available for the campaigns and a wide range of brochures from intolerance of difference, duration of major projects in languages other than English. • analysis of issues taken by individuals • fact sheets developed for major to tribunals such as VCAT, Australian Licensing issues projects and distributed to residents Industrial Relations Tribunal and the VicRoads recognises licences from 20 and traders are translated into Human Rights and Equal Opportunity countries that have similar licensing community languages. Commission relating to intolerance of requirements to Victoria, including those in difference, and the European Union, Canada, USA, Japan, •reviewing recruitment policy and Norway and Switzerland. Licence holders practice, to ensure DOI is capturing from these countries are only required to the broadest possible group of pass a knowledge test on Victorian road law. potential employees. As a signatory to the United Nations Convention on Road Traffic, Australia has agreed to recognise the validity of the driver licences of other signatory countries. In Victoria a driver who is not a permanent resident may drive on an overseas licence

annual report 2002–03 147 APPENDIXES

Whole-of-government reporting framework – Multicultural Affairs

2. Links to Growing Victoria • licensing information broadcast and Other initiatives Together advertised on ethnic radio stations Initiatives to raise community awareness of • licensing information sessions held at The initiatives to support Victorians from the potential impacts of road works is ethnic community clubs and non-English-speaking backgrounds provided undertaken with all affected local residents associations by DOI and its agencies have significant and stakeholders before and during • an increase in the availability of links to the Growing Victoria Together construction for major projects. These licence tests in languages other than framework in the following areas: initiatives include: English from four to eight, with •growing and linking all of Victoria interpreter assistance available • telephone messages in key languages • building cohesive communities and •group licence testing at club premises • information brochures with reducing inequalities. available for members of ethnic clubs multilingual translations and associations •promotion of interpreter services. 3. Community consultation/ • Victorian Recreational Boating Safety engagement 4. Specific key Handbook available in eight projects/initiatives Public Transport Advisory languages other than English Committees • engagement of consultants to Customer Service Charters determine the penetration of the DOI’s Public Transport Division consults The public transport franchise operators’ licensing message to all Victorians widely with stakeholders on transport Customer Service Charters detail their (including non-English-speaking issues by way of advisory committees. commitment to passengers travelling on communities). The advisory committees comprise their public transport services. The Charters consumers and specialists from user VicRoads are under review and will shortly be groups and industry, and provide advice Road network issues available, on request, in 13 languages – that contributes to the delivery of a safe, Arabic, Croatian, French, Italian, Japanese, VicRoads ensures that communities with efficient and effective public transport Macedonian, Maltese, Mandarin, Polish, special cultural and language needs are system. Siberian, Spanish, Turkish and Vietnamese. consulted on issues relating to the road Recreational boat operator network. Communication strategies for Multilingual Information Line major projects include actions to inform licensing The Multilingual Information Line (MIL) is a and encourage input from stakeholders, As of 1 February 2003, all operators of telephone service established by DOI as a such as local residents, including those mechanically powered watercraft are vehicle to reach its multicultural audience. from non-English-speaking backgrounds. required to hold a Victorian Boating Licence. The MIL allows information relating to DOI In the lead-up to full licensing, a major Road safety issues projects to be recorded and accessed in 13 communications strategy was implemented languages – Arabic, Cantonese, Croatian, VicRoads conducts publicity campaigns to to make all Victorian boaters aware of the Greek, Italian, Macedonian, Polish, Russian, highlight key road safety issues using ethnic licensing requirements and testing Serbian, Spanish, Turkish, Vietnamese media and community relations activities. processes. and English. A wide range of road safety materials are To facilitate the provision of adequate provided in ethnic languages. VicRoads information regarding the licensing consults with the Royal Children’s Hospital requirements to all Victorians, including Safety Centre Ethnic Peer Presenters, the those from non-English-speaking Victorian Multicultural Commission and backgrounds, the following initiatives were the network of Community Road Safety implemented: Councils and local government about •production and dissemination of two ethnic road safety issues. major licensing bulletins with multilingual components

• advertising of details in several ethnic newspapers

148 Department of Infrastructure Whole-of-government reporting framework – Multicultural Affairs

Harmony Day and Cultural VicRoads Public transport – quantitative Diversity Week A number of initiatives were funded through performance measures On 21 March 2003 DOI celebrated VicRoads’ Registration and Licensing • availability of the Public Transport Harmony Day, an initiative which was program in 2002–03, including: Customer Service Charters in 13 widely promoted throughout DOI. novice driver kits languages Harmony Day is a Commonwealth Kits containing both the Road to Solo • availability of the MIL, which allows initiative that began in 1999, which Driving and Getting There From L’s to P’s information relating to DOI projects provides Australians with an opportunity Handbooks are printed in 12 different to be recorded and accessed in to think about our community’s success languages. The kits clearly outline 13 languages as a multicultural society, and to re-commit Victorian road rules and offer road-craft • improved public transport complaints to continuing tolerance, goodwill and advice to novice and all other drivers. handling processes understanding among all groups. • improved access to information on knowledge tests public transport for non-English- Skills.net Learner Permit and Probationary Licence speaking customers. tests have been adapted to incorporate Skills.net is a community-based program to 20 languages, allowing tests to be provide affordable Internet access to people Recreational boat operator conducted in participants’ native who wouldn’t otherwise have access to the licensing – quantitative languages. Boat Operator Licence Internet. Skills.net is a Connecting Victoria performance measures tests are also available in eight initiative. More than 20 multicultural • approximately 1,000 people have languages other than English. support and community organisations have requested and received the Victorian been directly funded under the Skills.net interpreter services Recreational Boating Safety Handbook program, and more than 20 other community VicRoads provides translator services in languages other than English organisations have been funded to deliver through the Victorian Interpreting and • 550 people have undertaken the boat Skills.net to a variety of target groups, Translation Services (VITS) to all test operator licence test in languages including people from non-English- applicants. VITS provide services in up other than English speaking backgrounds: to 92 languages. Approximately 3,350 • overall feedback from ethnic groups interpreter-assisted tests are performed has been very supportive of the My Connected Community annually. An interpreter service is also provision of the Victorian Recreational My Connected Community is an initiative of available for applicants wishing to obtain Boating Safety Handbook and the the Victorian Government's Connecting their Boat Operator Licence. Processes associated licence test in eight Communities policy, funded by the are also in place for identifying and languages other than English. Government and coordinated by VICNET. utilising multilingual telephone staff in Connecting Communities The main objective of My Connected addition to utilising VITS where necessary. Community is to encourage community Performance is measured in terms of groups located in Victoria to create their 5. Performance assessment percentage uptake by target groups, own online communities. My Connected Performance indicators – including non-English-speaking Community offers participating groups a Human Resources issues background Victorians. variety of free, easy to use web-based Performance indicators continue to be services which they can use to communicate developed to measure the success of with existing members and like-minded Human Resource policies to foster and communities across the world. support diversity in the workplace. These include the delivery of diversity and cultural awareness programs, and the monitoring of complaints relating to discrimination and racial and religious tolerance and of any official complaints of discriminatory or vilificatory behaviour not being upheld. DOI reports its findings to the Office of Public Employment on an annual basis.

annual report 2002–03 149 APPENDIXES

Whole-of-government reporting framework – Multicultural Affairs

6. Forward priorities Performance measures Melbourne Public Transport Plan It is proposed to develop performance measures through the analysis of statistics As part of the Government’s Melbourne from the Computerised Licence Testing 2030 strategy and its target to achieve a System to measure pass rates of foreign public transport mode share of motorised language tests for driver licences, learner trips of 20 per cent by 2020, an integrated permits and boat operator licences against Melbourne Public Transport Plan is being English tests. This will allow VicRoads to prepared with plans covering buses, trains measure the success of interpreter assisted and trams. The aim of the Melbourne Public tests, foreign language handbooks and Transport Plan is to improve transport foreign language tests. services (and access to those services) in Melbourne, and to better link them with Human Resource issues urban and residential development. A Research and Development Project has Public Transport Industry been approved for 2003–04 to investigate Ombudsman the diversity of VicRoads staff and investigate how increased diversity can improve business All public transport customers will shortly outcomes. The project will: have the opportunity to consult with a Public Transport Industry Ombudsman • measure the diversity of VicRoads staff (PTIO) who will be appointed later in 2003. and benchmark the result against Customers will be able to refer issues to the 'best practice' organisations, PTIO for investigation if they are dissatisfied • investigate how 'best practice' with the initial handling of a complaint. organisations use the diversity of their staff to improve business outcomes Connecting Communities • make recommendations on how It is expected that the Connecting VicRoads can increase the diversity of Communities policy and programs will its staff and use this diversity to be reviewed in 2003–04 and options on improve business outcomes. future directions provided to government In 2003–04, VicRoads will also continue to: for consideration. • enforce its policies and guidelines on VicRoads EEO, harassment and the Road Safety Program investigation of misconduct by VicRoads’ proposed Road Safety program employees which discourage racism, for 2003–04 includes the continuation of the and promote tolerance and harmony child restraint campaign directed at ethnic • base the employment of staff on merit communities. and actively pursue a culturally diverse workforce.

150 Department of Infrastructure Whole-of-government reporting – Women’s Policy

The information below outlines the 2. Specific key pre-natal leave, and one week paid initiatives under way within DOI during projects/initiatives paternity leave. DOI staff also have 2002–03 in relation to women. unlimited access to their sick leave DOI sponsored the following initiatives in entitlements for use as carers leave. 1. Community Consultation 2002–03, which support the Government’s undertaken in the financial Growing Victoria Together commitment to Women in Marine Transport year 2002–2003 building cohesive communities and reduce Scholarship inequalities, growing and linking all of Traditionally, both the public and private Public Transport Advisory Victoria, and safe streets, homes and sectors of the ports and marine and Committees workplaces. transport logistics industries have recruited DOI’s Public Transport Division consults Work and Family Balance and trained men into senior management widely with stakeholders on transport issues, roles. While more women are now Work and Family Balance was the theme of by way of advisory committees, which undertaking courses relevant to these Occupational Heath and Safety week at DOI comprise consumers and specialists from industries, there are still relatively few in 2002. The week featured a program of user groups and industry, and provide women involved in management positions initiatives highlighting the importance of advice that contributes to the delivery of a or positions which may lead to management nutrition, managing stress, fitness and safe, efficient and effective public transport roles in the future. In 2002, DOI funded the other aspects of work/family life. system. Female representation on Public Women in Marine Transport Scholarship Transport Advisory Committees ranges School holiday program ($10,000 a year), which aims to encourage from 15 per cent to 40 per cent. DOI runs a work-based School Holiday women into management positions within Customer Satisfaction Survey program for its staff during Christmas and these industries. The public transport Customer Satisfaction term holidays, and subsidises the costs of Connecting Victoria Strategy the program by its staff. DOI has been Survey is an ongoing survey to provide The Victorian Government’s Information recognised as an ‘Employer of Choice’ quarterly measures of customer satisfaction and Communication Strategy Connecting due to its School Holiday Program, and with the services provided by the public Victoria commits the Government to its program model has been taken up by transport operators. The survey is telephone- ensuring that all Victorians, including other Victoria government agencies (DHS based with respondents selected randomly disadvantaged groups such as women, and Victoria Police). from the electronic White Pages from are able to enjoy the benefits of online postcodes within public transport catchment Flexible work arrangements technology. Connecting Communities is areas. The metropolitan survey includes DOI has committed itself to the consideration the Government’s framework for using around 8,500 respondents annually, while of flexible working arrangements, including technology to create and strengthen the regional survey (V/Line Passenger working from home. Assistance is provided communities. It specifically targets train and coach) includes around 1,700 to management and staff by the Human technologically disadvantaged members respondents annually. The survey includes Resources Branch in establishing working of the community, including women. both male and female respondents of all from home and other flexible working The following Internet access and training ages (16 years and over). arrangements. programs specifically target women: Regional Fast Rail Child Care information service Skills.net A key element of the Regional Fast Rail Child Care Information service and advice is Skills.net is a community-based program to project is the redevelopment of the V/Line provided to DOI staff on the DOI Human provide affordable Internet access to people Passenger timetable, which is being Resources intranet site. who wouldn’t otherwise have access. Three undertaken in consultation with communities women’s groups (The Centre Inc, along the lines to ensure the new timetable Provision of paid leave Kensington Women’s Group Childcare is better matched to travel needs. DOI (as with all Victorian government Association and Echuca Neighbourhood departments) has in place the following House) have been funded under the leave provisions (in addition to paid annual recreation leave and paid sick leave): 12 weeks paid maternity leave, one week paid

annual report 2002–03 151 APPENDIXES

Whole-of-government reporting – Women’s Policy

Skills.net program, and more than 30 other Connecting Transport Services aims to significantly improve the quality of organisations have been funded to deliver services on major arterial roads by offering The $20 million Connecting Transport Skills.net to a variety of target groups, regular, efficient and reliable services Services program which started in including women. between suburbs with connections to 1999–2000 is a five-year program designed railway stations, shopping centres and other My Connected Community to improve the safety and comfort for facilities. The first two SmartBus services My Connected Community is an initiative of passengers transferring between different have been well-received and patronage the Victorian Government’s Connecting modes of public transport. Works include has increased by more than 20 per cent. Communities policy. The main objective of new covered walkways, shelters, lighting, this program is to encourage community signage, passenger information display NightRider bus services signs, CCTV security, disability access, groups located in Victoria to create their NightRider bus services are provided on landscaping and replacement car parking. own online communities. The program Friday and Saturday nights to provide offers participating groups a variety of free, Safe Travel Taskforce late-night public transport from the City easy-to-use web-based services which they of Melbourne to the following outlying The Safe Travel Taskforce established in can use to communicate with existing suburbs: Bayswater, Craigieburn, Croydon, 2000 to provide advice to the Minister, members and like-minded communities Dandenong, Eltham, Epping, Frankston, continues to review safety issues, identify across the world. Three women’s Melton, St Albans, Sunbury and Werribee. organisations (Working Women’s Health, strategies to improve the safety and security Womensport and Recreation Victoria, and of public transport users, and coordinate the 3. Forward priorities implementation of these strategies across YWCA Victoria) have been funded under My Melbourne Public Transport Plan Connected Community, and 30 other the transport system. The taskforce includes organisations have been funded to deliver representatives from DOI, the Department As part of the Government’s Melbourne My Connected Community to a variety of of Justice, the Victorian Taxi Directorate, 2030 strategy and its target to achieve a disadvantaged groups, including women. Victoria Police, Bus Association Victoria, public transport mode share of motorised transport operators and unions. trips of 20 per cent by 2020, an integrated Roving Conductors and Peak Service taxi licences Melbourne Public Transport Plan is being Safety Officers prepared with plans covering buses, trains Another three-year program was negotiated DOI began a major initiative to improve and trams. The aim of the Melbourne Public with public transport franchisees to retain the availability of taxis at peak times, with Transport Plan is to improve transport the 100 Roving Safety Officers who travel on the release of the first 100 Peak Service services (and access to those services) in after-dark suburban trains, and the 100 taxi licences. Tenders for the licences closed Melbourne, and to better link them with Roving Conductors who travel on the tram in October 2002; after a detailed selection urban and residential development. network. These positions were introduced in process, the first of the new taxis began service in January 2003. Fifty new taxis Public Transport Industry 2000 for an initial period of three years to Ombudsman provide a high level of customer assistance were in operation at the end of June 2003. and improved safety for passengers. The The new licences permit a taxi to operate All public transport customers will shortly extension will guarantee the presence of the between 3.00 pm and 7.00 am seven days have the opportunity to consult with a PTIO 200 officers until at least 30 June 2006. a week and for additional hours during who will be appointed later in 2003. specified major events. The additional taxis Customers will be able to refer issues to the Station improvements are highly distinctive, sporting a green roof PTIO for investigation if they are dissatisfied Sixty-five of Melbourne’s suburban rail and new (Peak Service) number plates. with the initial handling of a complaint. stations have now been upgraded to SmartBus Premium Station status. These stations provide an increased level of comfort and The Cross-Town Bus Services Program – safety for passengers, with the provision of SmartBus – was launched on Blackburn and CCTV on the station, platforms and car park Springvale Roads in August 2002. The pilot entrances, staffing from first to last train program involves the development of a seven days a week, improved passenger cross-town network of premium bus routes waiting facilities, and ticket sales and by improving frequency, travel times and information points. standard of customer information. SmartBus

152 Department of Infrastructure Whole-of-government reporting – Youth

The information below outlines the NightRider bus services are provided on and in some cases construction of new bus initiatives under way in DOI in relation to Friday and Saturday nights to provide late- interchanges. young people. night public transport from the City of Safe Travel Taskforce Melbourne to the following outlying 1. Key Departmental suburbs: Bayswater, Craigieburn, Croydon, The Safe Travel Taskforce has been Commitments Dandenong, Eltham, Epping, Frankston, established to review safety issues, identify The key Departmental commitments for Melton, St Albans, Sunbury and Werribee. strategies to improve the safety and security of public transport users, and coordinate the the DOI in relation to Respect: The Student Concessions Government’s Vision for Young People implementation of these strategies across are the provision of safe and accessible Concession fares are available to children the transport system. The Taskforce includes public transport services, and the issue of under the age of 15 years and to students representatives from DOI, the Department road safety. Through Multimedia Victoria, in possession of a Primary/Secondary or of Justice, the Victorian Taxi Directorate, DOI is also responsible for the Government’s Tertiary Student Concession Card. Victoria Police, transport operators and commitment to ensuring that all Victorians, Primary/Secondary Student card holders are unions. entitled to purchase heavily discounted half including young people, are able to enjoy SmartBus the benefits of online technology. Current yearly or yearly student passes for travel on As part of an innovative program known initiatives are listed below. the metropolitan public transport network and major country bus networks. Date to as SmartBus, a range of new and improved Roving Conductors and Date tickets for travel on the V/Line country bus services have been introduced along Safety Officers network are also available to holders of the Springvale and Blackburn Roads in Another three-year program was negotiated Primary/Secondary Concession Card. The Melbourne’s eastern and south-eastern with public transport franchisees to retain Tertiary Concession card entitles students suburbs. The program includes an increased the 100 Roving Safety Officers who travel on attending tertiary institutions to purchase number of services, upgraded bus stops, after-dark suburban trains, and the 100 concession tickets. new low-floor buses, and timetable improvements with better connections Roving Conductors who travel on the tram Safety on Trains network. These positions were introduced in to tram and train services. Implementation of closed circuit television 2000 for an initial period of three years to New Bus Services provide a high level of customer assistance (CCTV) and passenger duress alarms on all New bus services have recently been and improved safety for passengers. The suburban trains is being implemented on between introduced between Vermont extension will guarantee the presence of the an ongoing basis and will be completed South and Knox City Shopping Centre and 200 officers until at least 30 June 2006. by 2005, in accordance with the franchise obligations and as new rolling stock is between Cranbourne and Frankston. New Station Improvements progressively delivered. bus services between Melton, Bacchus Marsh and Sydenham, Diamond Creek and Sixty-five of Melbourne’s suburban rail Rural School Bus Safety Program stations have now been upgraded to Eltham are intended to be introduced in the Premium Station status. These stations A five year program of measures to improve 2003–2004 financial year. the safety of school bus users in regional provide an increased level of comfort and Bus Replacement Program safety for passengers, with the provision of areas was introduced in 2000. The program Under the Bus Replacement Program, closed-circuit television (CCTV) on the includes the installation of warning lights 880 new buses that meet the accessibility station, platforms and car park entrances, and emergency communication on school requirements of the Disability Discrimination staffing from first to last train seven days a buses contracted to DOI. It also includes Act and Disability Standards for Accessible week, improved passenger waiting facilities, measures to improve the safety and comfort Public Transport are to be introduced in and ticket sales and information points. of rural primary and secondary students at interchanges. Works carried out under the Victoria over four years from 2001–2002. NightRider Bus Services interchange component of the program are On average, 90 metropolitan and 24 country wide-ranging and include construction of route buses and 100 contracted school bus shelters and covered walkways, road buses are replaced each year. Victoria’s bus improvement works to increase bus safety, replacement program has progressed well

annual report 2002–03 153 APPENDIXES

Whole-of-government reporting – Youth

and our fleet has already met the 25 per My Connected Community 2. Links to Growing Victoria cent accessibility target required by 2007 My Connected Community is an initiative of Together outlined in the Disability Standards for the Victorian Government's Connecting The delivery of transport initiatives is Accessible Public Transport. Communities policy, funded by the Victorian consistent with the Government’s GVT arrive alive! Government and coordinated by VICNET. commitment to growing and linking all of Road Safety Strategy The main objective of My Connected Victoria, by upgrading the public transport Community is to encourage community system by providing faster, better and more The arrive alive! Road Safety Strategy aims groups located in Victoria to create their accessible transport services. The public to reduce death and serious injuries for all own online communities. My Connected transport and road safety initiatives also road users and specifically targets high-risk Community offers participating groups a support the target of creating safer streets, groups such as young people. Other road variety of free, easy to use Web-based homes and workplaces. safety programs which target young services which they can use to communicate people include: Connecting Communities is the with existing members and like-minded Government’s framework for using • Keys Please program, to encourage communities across the world. technology to create and strengthen increased supervised driving as a communities. It specifically targets learner driver, skills x knowledge = growth technologically disadvantaged members • Ls to Ps publication and Web site to skills x knowledge = growth is the of the community, including young people, support supervised driving as a learner, Government’s framework for ensuring an thereby supporting the creation of more •Traffic Safety Education program in adequate supply of information and cohesive communities and reducing schools, and communications technology (ICT) skilled inequalities within those communities. • Review of the Graduated Driver people in the Victorian economy. skills x Licensing System. knowledge = growth was informed by the 3. Community Consultation/ Connecting Victoria Strategy ICT Skills Taskforce, comprising members of Engagement the ICT industry and the education sector. The Victorian Government’s Information The following projects within this initiative Customer Satisfaction Survey and Communication Strategy Connecting specifically target young people: The Customer Satisfaction Survey is an Victoria commits the Government to • New Realities – ICT careers ongoing survey to provide quarterly ensuring that all Victorians, including awareness campaign measures of customer satisfaction with the disadvantaged groups such as young • ICT Achievers Program services provided by the public transport people, are able to enjoy the benefits of • ICT Excellence Fellowships. operators. The survey is telephone-based, online technology. Connecting Communities with respondents selected randomly from is the Government’s framework for using In 2001 and 2002, more than 23,000 Year the electronic White Pages from postcodes technology to create and strengthen Nine and Ten students received a New within public transport catchment areas. communities. It specifically targets Realities presentation. 50 schools delivered The metropolitan survey includes around technologically disadvantaged members of the ICT Achievers Program in 2002 in Years 8,500 respondents annually, while the the community, including young people. Nine and Ten, and 50 Year 11 students regional survey (V/Line Passenger train were awarded ICT Excellence Fellowships Skills.net and coach) includes around 1,700 in 2002. Skills.net is a community-based program to respondents annually. The survey includes provide affordable Internet access to people Youth Employment Scheme both male and female respondents of all ages (16 years and over). who wouldn’t otherwise have access. A wide DOI has in place a robust and successful range of organisations include young Youth Employment Scheme (YES), providing people as one of the target groups for their traineeships to approximately 35 young Skills.net project. people per year. VicRoads is also a strong supporter of the YES program, and in 2002–2003 provided 32 traineeships to young people.

154 Department of Infrastructure Whole-of-government reporting – Youth

Public Transport Advisory • Improved access to late night and 5. 2003–04 Priorities Melbourne Committees peak period taxi services. Public Transport Plan •Affordable travel provided to students DOI’s Public Transport Division consults As part of the Government’s Melbourne and passengers under 15 years of widely with stakeholders on transport issues 2030 strategy and its target to achieve a age, and to students in possession by way of Advisory Committees, which public transport mode share of motorised of a Primary/Secondary or Tertiary comprise consumers and specialists from trips of 20 per cent by 2020, an integrated Student Concession Card. user groups and industry, and provide Melbourne Public Transport Plan is being advice that contributes to the delivery of a Quantitative performance prepared with plans covering buses, trains safe, efficient and effective public transport measures and trams. The aim of the Melbourne Public system. The aim of the Public Transport Transport Plan is to improve transport • 100 Roving Safety Officers are now Advisory Committees is to provide advice services (and access to those services) in travelling on after dark metropolitan to the Government and to public transport Melbourne, and to better link them with rail services and 100 Roving operators that contributes to the delivery urban and residential development. Conductors are travelling on the of a safe, efficient and effective public tram network. Public Transport Industry transport system. • 80,000 passengers are using the Ombudsman NightRider bus services each year. Regional Fast Rail Public transport customers will shortly have • New bus services have been A key element of the Regional Fast Rail the opportunity to consult with a Public introduced. project is the redevelopment of the V/Line Transport Industry Ombudsman (PTIO) who • School bus interchange improvements Passenger timetable, which is being will be appointed later in 2003. Customers completed at more than 100 sites at a undertaken in consultation with communities will be able to refer issues to the PTIO for cost of $7.6 million. along the lines to ensure the new timetable investigation if they are dissatisfied with • School buses contracted to DOI now is better matched to travel needs. the initial handling of a complaint. equipped with satellite telephones. Road safety • All new school buses and 80 per cent VicRoads Market testing is conducted for major road of the existing fleet are now equipped VicRoads will continue to: safety campaigns and initiatives. Local with flashing lights. • target high-risk groups such as youth community information sessions engage • 65 metropolitan stations have now through the arrive alive! Road Safety youth groups and obtain direct feedback. been upgraded to Premium status. Strategy to reduce death and serious • 46,500 Primary/Secondary and injuries for all road users including 4. Performance Assessment 68,000 Tertiary Student Concession initiatives such as: cards issued each year. Customer Satisfaction Survey – Keys Please program DOI’s Customer Satisfaction Survey is Road safety – Road to Solo Driving and Getting undertaken on a quarterly basis to assess Performance measures for road safety There From L’s to P’s Handbooks, the levels of satisfaction of the travelling comprise: and support for supervised driving public with the services provided by the as a learner • Safer driving behaviour. public transport operators. The results of –Traffic Safety Education program in • Reductions in road crashes involving this survey enable DOI and the transport schools, and young people. operators to identify and monitor issues of • engage youth groups in market concern to the travelling public. Connecting Communities testing major road safety campaigns Qualitative performance measures Performance is measured in terms of and initiatives and involve young percentage uptake of target groups, people in local community information • Improved safety, increased level of including young people. and feedback sessions. customer comfort and higher levels of customer assistance provided. Youth Employment Scheme • Access to new and improved Both DOI and VicRoads will continue to bus services. support YES.

annual report 2002–03 155 APPENDIXES

Whistleblowers Protection Act 2001

Report pursuant to section 104 of the Act •The number of requests by for the year 1 July 2002 to 30 June 2003 complainants to have their disclosures investigated by the Ombudsman due • The number and types of disclosures to their dissatisfaction with the way made to DOI: NIL DOI is investigating the matter (the • The number of disclosures referred circumstances are set out in section by DOI to the Ombudsman (to 74 of the Act): NIL determine whether they are public • The number and types of disclosed interest disclosures): NIL matters that DOI has declined to • The number and types of disclosures investigate: NIL referred to DOI by the Ombudsman: NIL • The number and types of disclosed matters that were substantiated on • The number and types of disclosures investigation and the action taken on referred by DOI to the Ombudsman completion of the investigation: NIL to investigate: NIL • Any recommendations of the • The number and types of investigations Ombudsman under the Act that of disclosures taken over by the relate to DOI: NIL Ombudsman from DOI: NIL

Other available information

The Directions of the Minister for Finance, • details of changes in prices, fees, •a list of major committees sponsored pursuant to the Financial Management Act charges, rates and levies charged by the DOI, the purpose of each 1994, requires a range of information to be by DOI committee and the extent to which prepared in relation to the financial year. • details of major external reviews the purpose has been achieved. This material is itemised below and, where carried out on DOI Requests for information should be not published in this report, is retained by • details of major research and directed to: the accountable officer and can be made development and development available to Ministers, Members of activities undertaken by DOI Mr Lawrie Tooher Parliament and the public on request, • details of overseas visits, including Director, Executive and Legal subject to the limitations of the Freedom a summary of the objectives and Department of Infrastructure of Information Act 1982. outcomes of each visit Level 15, Nauru House 80 Collins Street • declarations of pecuniary interests • details of major promotional, public Melbourne Victoria Australia 3000 completed by all relevant DOI officers relations and marketing activities for the year ended 30 June 2003 undertaken by DOI to develop • details of shares held by senior community awareness of DOI and officers as nominees or held the services it provides beneficially in a statutory authority • details of assessments and measures or subsidiary undertaken to improve the occupational • details of publications produced by health and safety of employees DOI and where the publications can •a general statement on industrial be obtained relations within DOI and details of time lost through industrial accidents and disputes

156 Department of Infrastructure Building Act Compliance

The Directions of the Minister for Finance require this Annual Report to include a statement on the extent of compliance with the building and maintenance provisions of the Building Act 1993, for publicly owned buildings controlled by DOI. DOI does not own or control any government buildings.

annual report 2002–03 157 APPENDIXES

Compliance Index

The Annual Report of DOI is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index has been prepared to facilitate identification of compliance with statutory disclosure and other requirements.

Clause Disclosure page

Report of Operations

Charter and purpose 9.1.3 (i) (a) Manner of establishment and Ministers v, vi, 1 9.1.3 (i) (b) Objectives, functions, powers and duties 1 9.1.3 (i) (c) Nature and range of services provided v, vi, 1

Management and structure 9.1.3 (i) (d) (i) Name of Chief Executive Officer 3 9.1.3 (i) (d) (ii) Names of senior office holders and brief description of responsibility 3-5 9.1.3 (i) (d) (iii) Chart setting out organisational structure 2 9.1.3 (i) (e) Workforce data and application of merit and equity principles 47, 140, 142 9.1.3 (i) (f) Application and operation of FOI Act 1982 143

Financial and other information 9.1.3 (ii) (a) Summary of financial results with previous four year comparatives 49, 50 9.1.3 (ii) (b) Summary of significant changes in financial position 49, 50 9.1.3 (ii) (c) Operational and budgetary objectives and performance against objectives 66-73, 110-131 9.1.3 (ii) (d) Major changes or factors affecting achievement 110-131 9.1.3 (ii) (f) Details of consultancies over $100,000 144 9.1.3 (ii) (g) Details of consultancies under $100,000 144 9.1.3 (ii) (h) Extent of compliance with Building Act 1993 157 9.1.3 (ii) (i) Statement of availability of other information 156 9.1.3 (ii) (k) Statement on Competition Policy 143 9.8.2 (i) Occupational Health and Safety reporting 142 Other Whole-of-government reporting: Aboriginal Affairs 145,146 Multicultural Affairs 147-150 Women’s Policy 151,152 Youth 153-155 Whistleblowers legislation response 156 Whistleblowers Protection Policy 170-179

Financial statements Preparation 9.2.2 (ii) (a) Statement of preparation on an accrual basis 59 9.2.2 (ii) (b) Statement of compliance with Australian Accounting Standards and associated pronouncements 59 9.2.2 (ii) (c) Statement of compliance with accounting policies issued by the Minister for Finance 59

158 Department of Infrastructure Compliance Index

Statement of financial performance 9.2.2 (i) (a) Statement of financial performance for the year 55 9.2.3 (ii) (a) Operating revenue by class 55, 77-79 9.2.3 (ii) (b) Investment income by class 55, 77 9.2.3 (ii) (c) Other material revenue by class including sale of non-goods assets and contributions of assets 55, 77 9.2.3 (ii) (d) Material revenues arising from exchanges of goods or services 55, 77 9.2.3 (ii) (e) Depreciation, amortisation or diminution in value 55, 82 9.2.3 (ii) (g) Financing costs 55, 81 9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assets 86, 88 9.2.3 (ii) (i) Auditor-General’s fees 93

Statement of financial position 9.2.2 (i) (b) Statement of financial position for the year 56

Assets 9.2.3 (iii) (a) (i) Cash at bank or in hand 56, 83 9.2.3 (iii) (a) (ii) Inventories by class 56, 84 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors 56, 84 9.2.3 (iii) (a) (iv) Other assets, including prepayments 56 9.2.3 (iii) (a) (vi) Property, plant and equipment 56, 85, 86 9.2.3 (iii) (a) (vii) Intangible assets 56, 87

Liabilities 9.2.3 (iii) (b) (iii) Trade and other creditors 56, 87 9.2.3 (iii) (b) (v) Provisions, including employee entitlements 56, 87

Equity 9.2.3 (iii) (c) (i) Contributed capital 56, 88 9.2.3 (iii) (c) (ii) Accumulated surplus 56, 88 9.2.3 (iii) (d) Reserves, and transfers to and from reserves 56, 88

Statement of cash flows 9.2.2 (i) (c) Statement of cash flows for the year 57, 103

Notes to the financial statements 9.2.2 (i) (d) Ex-gratia payments 105 9.2.3 (iv) (b) Contingent liabilities 93-97 9.2.3 (iv) (b) Contingent assets 97, 98 9.2.3 (iv) (c) Commitments for expenditure 99-101 9.2.3 (iv) (d) Government grants received or receivable and source 55, 78, 79, 88, 106, 107 9.2.3 (iv) (e) Employee superannuation funds 102 9.4.2 Transactions with responsible persons and their related parties 91 9.10 Consistency of Budget and Departmental Reporting 135-139

annual report 2002–03 159 160 Department of Infrastructure