ANNUAL REPORT 2005–06

DEPARTMENT OF INFRASTRUCTURE iii

Published by Department of Infrastructure 80 Collins Street, Melbourne

www.doi.vic.gov.au

© State Government of Victoria 2006

This publication is copyright. No part may be reproduced by any process except in accordance with the Provisions of the Copyright Act 1968

Authorised by the Victorian Government, 80 Collins Street, Melbourne

ISSN 1441-4805

Printed by Penfold Buscombe, 181 Forster Road, Mount Waverley Contents iv

Abbreviations vi

The year in review Transmittal letter vii Secretary’s foreword viii Melbourne 2006 Commonwealth Games xii Meeting our transport challenges xv

About the Department 1 Vision, mission and values 3 Infrastructure portfolios 4 Organisational structure 8 Departmental executive management 11 Policy and strategic framework 15 Chief Finance Offi cer’s executive summary 19

Outcomes Report Outcome 1: Public safety and security 21 Outcome 2: Infrastructure delivery and management 39 Outcome 3: Access and mobility 59 Outcome 4: Connected Victoria 79 Outcome 5: Rural and regional development 93 Outcome 6: Effi cient movement of freight 107 Outcome 7: Secure and sustainable energy supply 117 Outcome 8: Integrated policy development 129 Outcome 9: Organisational capability building 141

Financial Statements 149

DOI ANNUAL REPORT 2005–06 v

Appendixes 227 Statutory authorities 229 Statutory authorities’ executive numbers 246 DOI people profi le 247 Employee relations 249 DOI Audit Committee 251 Budget portfolio outcomes 252 Output performance measures 257 Better Roads Victoria Trust Fund 280 Environmental performance report 281 Whole-of-Government reporting 284 Indigenous affairs 284 Multicultural affairs 291 Women’s affairs 296 Youth affairs 298 Legislation (administered as at 30 June 2006) 302 Whistleblowers Protection Act 2001 306 Freedom of Information 307 Victorian Industry Participation Policy 308 National Competition Policy Compliance 309 Building Act Compliance 309 Disclosure of Major Contracts Compliance 310 Consultancies 310 Major Publications 311 Information available on request 312 Disclosure Index 313 DOI Contact Information 315 Abbreviations vi

Please note: Where the term ‘the Government’ appears throughout this report, it refers specifi cally to the Victorian Government.

AAV Aboriginal Affairs Victoria MTC Melbourne Theatre Company AEMC Australian Energy Market Commission MUARC Monash University Accident Research Centre AER Australian Energy Regulator NECA National Electricity Code Administrator AIFRS Australian Equivalents to International NEM National Electricity Market Financial Reporting Standards NEMMCO National Electricity Market Management Company AMES Australian Multicultural Education Services NSW New South Wales ARTC Australian Rail Track Corporation NTS New Ticketing Solution BIF Broadband Innovation Fund OCEI Offi ce of the Chief Electrical Inspector CALD culturally and linguistically diverse OCIO Offi ce of the Chief Information Offi cer CCTV closed-circuit television OGS Offi ce of Gas Safety CEO Chief Executive Offi cer OH&S Occupational Health and Safety CML CityLink Melbourne Ltd OPE Offi ce of Public Employment CPRD Capital Planning and Review Division PIAP Public Internet Access Program CSI Customer Satisfaction Index POHC Port of Hastings Corporation CTO Chief Technology Offi cer POMC Port of Melbourne Corporation DDA Disability Discrimination Act 1992 PPD Planning and Policy Division DE&T Department of Education and Training PPP Public Private Partnership DIIRD Department of Industry, Innovation PPPS PPP Solutions and Regional Development PTS Public Transport Safety DHS Department of Human Services PTSV Public Transport Safety Victoria DSL Digital Subscriber Line PV Partnerships Victoria DOA Development and Operations Agreement R&D research and development DOI Department of Infrastructure RACV Royal Automobile Club of Victoria DPC Department of Premier and Cabinet RASV Royal Agricultural Society of Victoria DPI Department of Primary Industries RFID radio frequency identifi cation DSE Department of Sustainability and Environment RFR Regional Fast Rail DTF Department of Treasury and Finance RMF Regional Management Forum DUKC dynamic under keel clearance RMS Royal Melbourne Showgrounds DVC Department for Victorian Communities RTBU Rail, Tram and Bus Union ECI Enhanced Crash Investigation SCSA Southern Cross Station Authority ED Executive Director SEES Supplementary Environment Effects Statement EES Environment Effects Statement SEITA Southern and Eastern Integrated Transport Authority EMS Environmental Management System SET science, engineering and technology EPA Environment Protection Authority SME small-to-medium enterprise ESC Essential Services Commission SSC Shared Services Centre ESV Energy Safe Victoria TAC Transport Accident Commission ETIS Energy Technology Innovation Strategy TEU twenty-foot-equivalent units FM Facility Management TJH Theiss John Holland FRC Full Retail Contestability TNSP Transmission Network Service Provider FTE full-time equivalent TPAMS Telecommunications Purchasing FTTH fi bre to the home and Management Strategy GST Goods and Services Tax TPWS Train Protection Warning System HRM Human Resources Management TTA Transport Ticketing Authority ICT Information and Communication Technology UK United Kingdom IDC Interdepartmental Committee USA United States of America IRI International Roughness Index VAGO Victorian Auditor-General’s Offi ce ITS intelligent transport systems VENCorp Victorian Energy Networks Corporation KAMCO Keane Australia Micropayment Consortium Pty Ltd VET vocational education training KPI Key Performance Indicator VicRoads Roads Corporation of Victoria LPG liquid petroleum gas VicTrack Victorian Rail Track Corporation MAPT Multi Agency Policy Team VicUrban Victorian Urban Development Authority MCE Ministerial Council on Energy VIPP Victorian Industry Participation Policy MIL Multilingual Information Line VPS Victorian Public Service MMV Multimedia Victoria VRCA Victorian Regional Channels Authority MOU Memorandum of Understanding VRET Victorian Renewable Energy Target MPTP Multi Purpose Taxi Program VRS Victorian Rail Services Pty Ltd MPV Major Projects Victoria WAC Wauthaurong Aboriginal Cooperative MRET Mandatory Renewable Energy Target YES Youth Employment Scheme MSV Marine Safety Victoria

DOI ANNUAL REPORT 2005–06 vii 2005–06 Annual Report

4 October 2006

Peter Batchelor MP Minister for Transport

John Lenders MP Minister for Major Projects

Theo Theophanous MLC Minister for Energy Industries and Resources

Marsha Thomson MLC Minister for Information and Communication Technology

80 Collins Street Melbourne Victoria 3000

Dear Ministers

Annual Report 2005–06

In accordance with the provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Infrastructure’s Annual Report for the year ended 30 June 2006.

Yours sincerely

Howard Ronaldson Secretary Department of Infrastructure Secretary’s foreword viii

This has been an extremely hectic year for the At the time of writing, DOI has completed Department of Infrastructure (DOI). The Department infrastructure works on the four RFR corridors and its people have risen to the challenge, and in between Melbourne and Geelong, Ballarat, Bendigo many cases achieved beyond expectations. and the Latrobe Valley. This unprecedented infrastructure renewal program has resulted in In particular, DOI’s collective expertise in delivering a quantum leap forward in the quality of the rail major infrastructure projects and managing infrastructure and rolling stock on Victoria’s main transport services was demonstrated by the regional rail corridors. It leaves a long-term legacy excellent performance of facilities, transport and to the State and will provide regional commuters security services provided for the Melbourne 2006 with better services and greater comfort and safety. Commonwealth Games. The new V/Line timetable, incorporating the improved RFR services, has been launched providing over 400 The Department ensured the timely completion of vital additional services every week to regional Victoria, Games infrastructure including the Athletes’ Village with services targeted to meet commuters’ needs. and Stage 2 of the Melbourne Sports and Aquatic Centre development. In close collaboration with The release in May 2006 of Meeting Our Transport Games organisers and transport providers Connex, Challenges: Connecting Victorian Communities Yarra Trams, V/Line Passenger and bus operators, the was the culmination of extensive policy development capacity of the public transport system was boosted to and planning across the Department and portfolio. carry around 25 per cent more passengers due to the This substantial commitment sets down the extra demand from Games patrons and participants. Government’s long-term strategy for addressing Victoria’s transport challenges over the next 25 years. Over the 12 days of the Games, around 35,000 It commits $10.5 billion of Government expenditure additional public transport services were provided on new works and services, over 10 years. Key and an additional 1.8 million people were transported commitments include vital improvements to transport to Games events. Around 90 per cent of people safety, increases in rail capacity and the provision surveyed by Metlink rated public transport to the of signifi cantly improved bus services to the outer- events as ‘good’ or ‘excellent’ — a measure of the metropolitan suburbs and regional areas. outstanding success of this major collaborative effort. Similarly, VicRoads effectively managed the arterial The importance of continuing to improve the safety road network to enable the effi cient movement of and security of Victoria’s public transport system was on-road public transport, athletes, offi cials, media recognised during the year with the establishment of and VIPs during the hectic Games period. Public Transport Safety Victoria (PTSV) in August 2005 as a specialist body within DOI. The Rail Safety Act DOI has delivered major infrastructure improvements 2006, which is the forerunner of national efforts in rail that will benefi t Victorians for many years to come. safety legislation and regulation, was enacted and from They range from transforming Spencer Street Station 1 August 2006, PTSV came under a new independent into the landmark Southern Cross Station, to long- statutory offi ce: the Director, Public Transport Safety. term ‘once-in-a-generation’ infrastructure upgrades The new Transport Legislation (Safety Investigations) such as the vastly improved safety systems delivered Act 2006 established the position of Chief Investigator, through the Regional Fast Rail (RFR) project. Transport and Marine Safety.

DOI ANNUAL REPORT 2005–06 ix

The Government’s Telecommunications Purchasing Further key achievements for DOI and its portfolio and Management Strategy (TPAMS) is now statutory bodies during 2005–06 included: 99 per cent complete. • The EastLink Project continued ahead of For the fi rst time the Victorian Government has adopted schedule and is on track for completion in 2008. a whole-of-government approach to purchasing and managing its telecommunications services. • Victoria continued to lead Australia in achieving a reduction in the road toll, with 6.9 deaths This consolidation has increased the Government’s per 100,000 population during the 2005 purchasing power by more than $200 million over fi ve calendar year compared to 8.4 for the rest years and generated approximately $200 million worth of Australia. The fi nal road toll for the 2005–06 of new investment in telecommunications infrastructure fi nancial year was 322, eight below the arrive throughout the State, including the roll-out to alive! target of 330. regional communities of Digital Subscriber Line (DSL) technology. By year end, 78,000 voice, mobile, data • Complementary strategies were implemented and managed telephony services had been migrated to increase safety at railway crossings, including to new contracts under the Government’s improved upgraded safety protection at 96 railway telecommunications purchasing arrangements. The crossings and the ‘Don’t Risk It’ level crossing initiative has provided greater cost effi ciency and safety campaign, launched in November 2005. enabled the provision of broadband data services to government departments and schools to support the • Work on the Australian Synchrotron in Clayton delivery of better services across Victoria. continued on schedule in line with plans to hand the facility over to the operator in April 2007. Victoria also provided strategic leadership nationally in establishing benchmark energy policy, regulation • The $305 million Craigieburn Bypass opened and supply improvements. This included the in December 2005 and signifi cant progress development of the Victorian Renewable Energy was made on other major Victorian road links Target (VRET) scheme as a key component of the including the Tullamarine-Calder Interchange; State’s renewable energy strategy. The scheme will the Goulburn Valley Highway duplication through encourage greater use of renewable energy sources Arcadia; the Albury-Wodonga Hume Freeway and increase Victoria’s capacity to contribute to upgrade; the Calder Freeway upgrade; and the signifi cant reductions in greenhouse gas emissions Deer Park, Pakenham and Geelong bypasses. over the longer term. • Public transport patronage grew signifi cantly. Within DOI, a substantial effort was made to improve After adjusting for the spike due to the recruitment and development programs and place Commonwealth Games, underlying patronage greater emphasis on looking after the well-being of growth is estimated to have been 4.9 per cent our workforce. DOI’s achievements in promoting over the 12 months for metropolitan public greater work/life balance were recognised at a transport. Over the same period, metropolitan national level when the Department was ranked trains experienced extremely strong growth among Australia’s top 25 ‘Best Practice’ organisations in patronage (9.4 per cent, excluding in the 2006 National Annual Benchmarking Survey Commonwealth Games patrons), thought to conducted by Managing Work/Life Balance be driven in part by increases in petrol prices. International and leading business publisher CCH Australia. The survey involved 410 private, public and non-profi t organisations. x

• The Dynon Port Rail Link project was launched On a personal level, I was pleased to continue my in April 2006. The project is jointly funded by the involvement with the Gippsland Regional Management Federal and Victorian governments and will build Forum. This initiative is assisting in bringing benefi ts a road overpass to eliminate a level crossing to the region by promoting a joined-up government on Footscray Road and provide additional rail approach to, among other things, strategic planning, capacity within the Port of Melbourne precinct. public safety, water management, and economic and community development. Each region in the State is • Improvements involving almost 60 bus routes have championed by a departmental Secretary. been completed in 18 municipalities under the four-year metropolitan bus service improvement DOI’s primary focus in the coming year will continue program announced in the 2005–06 State Budget. to be on planning and delivering the majority share The improvements include the introduction of new of the Government’s infrastructure program. The routes, extended weekday operating hours on Government’s 2006–07 State Budget allocated more existing services, and the introduction of services than half its $4.9 billion TEI (total estimated investment) on weekends and public holidays. in new asset investments to DOI for delivery. The Department’s four-year capital expenditure program • Victoria’s policy and regulatory framework is set to double over the next four years. for mitigating energy consumer hardship was strengthened during the year with Intensive planning has commenced for the the development and implementation of implementation of Meeting Our Transport Challenges, recommendations from the Committee of Inquiry including preliminary planning for a package of into Financial Hardship of Energy Consumers. improvements along the Monash-West Gate corridor and design work for strengthening the West Gate Bridge. • In late 2005, the Government released the Victorian Government ICT Industry Plan Signifi cant activity over the next 12 months 2005–2010, detailing its ongoing commitment will include: to support the local ICT industry. • continued, timely progress on the • The Victorian Education and Research Network EastLink Project (VERN) was launched in June 2006. This is a new fi bre optic network delivering super-fast • completion and opening the redeveloped Royal ‘broadband’ services to university campuses Melbourne Showgrounds for the 2006 Royal across Victoria. The state rail authority, VicTrack, Melbourne Show in September is providing access to its 517 km fi bre optic network (also used to provide signalling for the • trialling the new public transport ticketing Regional Fast Rail project) for the delivery of solution and commencing to install VERN services. new ticketing equipment throughout Melbourne and regional Victoria • The TravelSmart Program delivered the largest community-based travel behaviour change project • commencing construction of the ever undertaken in Australia, covering 45,000 Dynon Port Rail Link households in the cities of Maribyrnong and Moonee Valley in Melbourne’s inner north-west. • commissioning Australia’s fi rst synchrotron facility

DOI ANNUAL REPORT 2005–06 xi

• introducing more rail services running to the The year ahead will continue to pose major challenges new timetables on the Regional Fast Rail and as DOI works on the largest transport infrastructure metropolitan corridors program in Victoria’s history. As the size of our delivery task burgeons, our need for appropriately • preparing legislation for the Victorian Renewable skilled people will also intensify. This imperative Energy Target scheme comes in the face of a national skills shortage, with increasing demand for highly-skilled people who can • releasing a draft Green Paper on Carbon Trading plan, design, construct and project manage across the private and public sectors. DOI is positioning • completing the Supplementary Environment itself to manage this and other challenges in the year Effects Statement for channel deepening for ahead. the Port of Melbourne I would like to express my thanks and admiration • development of a large-scale demonstration to our people and portfolio colleagues for their electricity plant that uses next-generation, continued dedication to delivering the Government’s brown coal technology, as part of the Energy projects and programs, and for their attention to all Technology Innovation Strategy other aspects of DOI’s broad policy, service delivery and corporate support operations. • progressing construction of the new Melbourne Convention Centre, as well as the Melbourne Recital Centre and MTC Theatre, all of which are scheduled to open in 2009

• commence construction of the Melbourne Howard Ronaldson Rectangular Stadium Secretary Department of Infrastructure • commencing a needs assessment, led by Sir Rod Eddington, to assess transport needs in Melbourne’s East-West corridor

• continuing to develop policies and projects that mitigate key congestion hot spots on the State’s road and public transport systems

• commencing work on the $73 million freight upgrade of the Mildura rail corridor (subject to the release of AusLink funds)

• progressing work on the Wodonga Bypass, with relocation of services and detailed design work already under way. Melbourne 2006 Commonwealth Games xii

The staging of the Commonwealth Games in The lead-up strategy began with information Melbourne drew on, and extended, DOI’s wealth of campaigns to help ease congestion during Games experience in transport, major projects and security. events by advising Melbourne’s usual 650,000 commuters to plan journeys to arrive ahead of time The role played by the Department in the lead-up to, and, where possible, travel outside peak times. More and during the Games from 15–26 March 2006, was than 35,000 additional public transport services were critical to the spectacular success of the city’s delivered during the Games. As events unfolded, largest-ever combined sporting and cultural event. additional services were provided to ensure that crowding was kept to a minimum. Connex delivered Public transport and road management more than 3,750 additional services, Yarra Trams operated nearly 17,000 additional services, and more Public transport carried the bulk of the spectator than 15,000 additional route bus services operated. traffi c associated with Commonwealth Games sporting and cultural events. An additional 1.8 million To help deliver people as close as possible to the people — around 25 per cent more than normal venues, spectator buses operated throughout the — used Victoria’s public transport system during Games, carrying around 45,000 people including the Games, representing approximately four million 800 wheelchair passengers. V/Line boosted its additional trips made on trains, trams and buses operations by 10 per cent to transport spectators during the 12-day event. from rural and regional Victoria to the Games, providing an additional 224 services. To ensure that the signifi cant transport challenge was met, a high level of cooperation was required Melbourne’s taxis also entered the spirit of the between DOI, transport providers and the Offi ce of Games, contributing to the festive appearance Commonwealth Games Coordination (OCGC), a of the city by displaying fl ags with the Games division of the Department of Victorian Communities logo and colours on their aerials. The Victorian Taxi (DVC). Complex transport and traffi c requirements Directorate provided input into the production of associated with Games events and the demand of a special booklet for the taxi industry to support huge crowds tested all parties. VicRoads managed the drivers in providing the best possible service to arterial road network and the introduction of exclusive Games patrons. ‘Games Lanes’, which were critical for the safe and effi cient movement of athletes, offi cials, media and DOI’s Public Transport Division (PTD) was heavily VIPs, as well as facilitating the movement of on-road involved in planning for and delivering Games-time public transport and providing for Melbourne’s normal transport. In addition to working in their professional transport needs. capacity, staff from PTD and other DOI divisions also worked as volunteers in the fi eld.

DOI ANNUAL REPORT 2005–06 xiii

The focus was on ensuring people arrived at sporting Major Projects venues on time. The reliability of services and keeping cancellations to a minimum was therefore critical. DOI’s role in delivering new and upgraded major Connex cancelled less than 0.2 per cent of services, infrastructure projects was also critical to the success while V/Line recorded only eight cancellations during of the Games. Major Projects Victoria (MPV), a division the Games period. Yarra Trams and bus operations of DOI, managed the design, documentation, tendering also provided an extremely reliable service for and construction processes for three Commonwealth Games patrons. Games projects on behalf of OCGC.

The success of this huge collaborative effort Construction of the Athletes’ Village was completed was demonstrated by the vast numbers of Games in January 2006, more than six weeks before the patrons who chose to take up the free public opening ceremony. The low-rise, medium-density transport options. Metlink surveys showed that the development is located on a 20-hectare site in highest recorded mode share for public transport of Parkville. The Village was home to about 5,800 80.5 per cent was for the athletics at the Melbourne athletes and offi cials from 71 nations during the Cricket Ground on 23 March. 12-day event.

Metlink surveys also asked how people rated their Once the athletes and offi cials left Melbourne, work experience getting to the Games by public transport. began to convert the Village into a new inner-city Around 90 per cent of people rated public transport suburb called Parkville Gardens. A large part of as ‘good’ or ‘excellent’, a testimony to the additional the development has been retrofi tted and the fi rst services and staff on hand to move people effi ciently to permanent residents moved into their homes in and from Games venues. The operational success of September 2006. the transport and traffi c services provided was refl ected This new urban precinct will ultimately comprise a in media reports and feedback from the public. mix of social and private housing, an aged care facility No signifi cant incidents or problems were reported on and community infrastructure, including a child care the rail or road network during the Games. Flow-on centre, community centre and playground. It will benefi ts from the Games include improved closed-circuit feature up to 1,000 new dwellings, of which 200 television (CCTV) at public transport facilities, plans to will be social housing, when it is complete in 2011. extend Melbourne’s train and tram services to operate The development will also include an additional later on Friday and Saturday nights, and ongoing 2.5 hectares of parkland. enhancements to the management of the road network. Stage 2 of the development of the Melbourne Sports and Aquatic Centre (MSAC) was offi cially opened by Victorian Premier Steve Bracks, in December 2005. The new outdoor competition pool was a great success for the State Swimming Championships and the Australian Swimming Trials in early 2006, as well as for the Commonwealth Games in March. It attracted headlines as a ‘fast pool’ when records were broken during the fi rst rounds of offi cial competition. xiv

The Stage 2 development created a new 50-metre Security outdoor competition pool with a permanent 3,000 seat grandstand (a further 7,000 temporary tiered The Commonwealth Games security effort was seats were installed for the Games), additional offi ce a major focus for 2005–06, providing the State space for sporting associations and the Melbourne with an invaluable opportunity to prepare for a School of Sport and Recreation Management, a real-life scenario. hydrotherapy pool, a multi-storey car park and Detailed security assessments were undertaken additional change rooms. The Stage 2 development for key railway stations, tram stops and related public was offi cially opened to the public in early July 2006. areas, and prioritised measures were carried out The new William Barak Bridge was also delivered by to mitigate public transport security risks. Real and MPV in preparation for the Games. Images of the new desktop exercises were staged to test and refi ne 525-metre pedestrian bridge were beamed around the readiness of emergency management systems the world as it was featured in the last stages of the to respond to emergencies. These included a major women’s and men’s marathons, which were televised emergency response exercise in the City Loop in during the Games. December 2005.

The new bridge, which links the city to Melbourne’s DOI’s Energy and Security Division consulted with the main sporting precinct, also features an artwork of electricity operator for central Melbourne in relation to voices from around the Commonwealth. The bridge the security of supply during the Games. was in constant use during the Games by people A test of security readiness for the Games occurred attending events at the MCG and other venues in when the Federal and State governments participated the sports and entertainment precinct, and served in the National Counter-Terrorism Committee’s as a major link to the cultural events program in jurisdictional exercise, ‘Mercury 05’. This comprised a Birrarung Marr. set of discussions and deployments which culminated DOI coordinated a public Open Day in December in an exercise on 17 October 2005 in which DOI 2005 to showcase some of these projects and other participated. The latter exercise involved activating the sporting venues built or upgraded for the Games State Crisis Centre. across the metropolitan area. Overall, preparing for the 2006 Commonwealth The event drew a huge crowd of over 25,000 people Games provided DOI with invaluable opportunities across four venues: the MCG, the State Netball and to increase and improve its capability and expertise Hockey Centre (SNHC), the Athletes’ Village and MSAC. across a number of important portfolios. This legacy from the Melbourne 2006 Commonwealth Games will benefi t Victorians well into the future.

DOI ANNUAL REPORT 2005–06 xv Meeting our transport challenges

The historic Meeting Our Transport Challenges: Melbourne’s crosstown transport network will be Connecting Victorian Communities statement was boosted by the injection of $1.4 billion over the next released in May 2006, providing the Government’s 10 years to expand the network of SmartBus routes, strategic direction in transport underpinned by an supported by major improvements to local bus unprecedented $10.5 billion over 10 years. services. These extended bus services will connect with the rail network to create a grid of public transport The statement responds to strong economic growth routes within and between suburbs across the city. across the State, which has resulted in people making Four major new orbital SmartBus route extensions more trips and seeking greater mobility for personal, through Melbourne’s northern and western suburbs work and business reasons. Population growth in and the inner city will be completed. A 22 per cent provincial Victoria and Melbourne’s outer suburbs, increase in local bus services will be delivered over an aging population and the impact of car use on the next four years. the liveability of some local communities have also led to an increased demand for public transport. The Government will inject $2 billion over the next 10 years to increase the capacity of Melbourne’s To ensure that Victoria has the capacity to meet rail network to address the growing demand for changing transport needs — and manage future train travel. economic, social and environmental challenges — the Government is establishing the Meeting A further investment of $1.8 billion over 10 years Our Transport Challenges Reserve, allocating will deliver major improvements to Melbourne’s train $5.9 billion to the Reserve over the next 10 years. and tram services, supporting increasing demand in growing areas and encouraging greater use of public The Government will also conduct a comprehensive transport. Improvements starting in 2006–07 include review of transport legislation, with the aim of reforming extending the operating hours of the metropolitan and modernising the legislation to ensure it supports train and tram network on Friday and Saturday nights Victoria’s current and future needs. A new position and updating metropolitan train network management of Coordinator General of Infrastructure has been systems. In the longer term, the commitment provides established (and took effect from August 2006), to for the replacement and expansion of the city’s train improve the coordination and integration of transport and tram fl eet. and land use planning and policy. Regional Victorians will benefi t from an additional investment of $510 million over the next 10 years in transport services and infrastructure across provincial Victoria. The funding will provide better regional bus services and connections, new and refurbished trains, a freight upgrade of the Ballarat to Mildura rail line (subject to AusLink funding), a new phase of the Rural School Bus Program, and taxi service improvements in regional communities. xvi

An investment of $1.3 billion over 10 years will fund The Government will also continue to give rail and a major program of arterial road projects, including road safety and security the highest priority by the Western Highway-Deer Park Bypass, to improve investing $1.1 billion over 10 years in new projects connections across Melbourne’s growing outer to improve safety across Victoria’s transport network. suburbs. A further $690 million is committed to major upgrades of regional arterial roads and bridges These major investments and new projects will across provincial Victoria. build a transport system that maintains Victoria’s liveability and helps us manage our sustainable The Government has announced a $1 billion package growth responsibly. for the Monash-West Gate corridor to maintain it as an effi cient route across Melbourne. A needs assessment The result will be better travel choices for all of Melbourne’s east-west corridor is timed to start Victorians and proper planning and delivery of in late 2006, to develop options to address future transport infrastructure for future generations. transport demand.

To promote behaviour change, $135 million will be invested over 10 years to encourage greater use of public transport and to encourage more Victorians to walk and cycle for their short, local trips.

The Government will invest $710 million over 10 years in a range of projects to promote better urban planning, improve access to Victoria’s transport network and create better community connections. These initiatives include making public transport more accessible to people with disabilities and problems with mobility, increasing the amount of ‘Park and Ride’ car parking facilities available near public transport hubs and improving metropolitan transport interchanges.

DOI ANNUAL REPORT 2005–06 2

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.

DOI ANNUAL REPORT 2005–06 3 Vision, mission and values

Vision Values

To be a department that delivers the Government’s These values are the platform for our actions at DOI Growing Victoria Together vision by providing and highlight the commitment to professionalism innovative and integrated strategic advice to deliver the maintained by DOI people. best possible infrastructure and services for Victorians. Teamwork Mission We acknowledge and support our shared goals. We openly cooperate and communicate our The purpose of DOI is to lead, in collaboration with knowledge and we share our expertise and stakeholders and the community, strategic planning, information within our work units across DOI, integration, development and management of transport, individually and organisationally. energy policy, information and communication technology, major projects, freight and logistics Diversity and the safety and security of critical infrastructure. We value our people’s diversity. We respect, recognise and help cultivate each other’s diverse We are committed to carrying out our role in a way that knowledge, skills and capabilities. is economically, socially and environmentally sustainable.

We do this by: Integrity We are ethical, accountable and transparent in our • linking the transport system of road, rail, air dealings with colleagues, stakeholders and clients. and sea channels to promote economic and social development through increased mobility Commitment and access, and a more cost-effective freight We are committed to the provision of high-quality and logistics sector services and are responsive to the changing demands of the community, government and other stakeholders. • promoting effi cient and integrated transport services across different modes while managing Innovation road and freight traffi c growth, in order to We support lifelong learning and fl exibility, and address the needs of the travelling public encourage innovation to provide solutions and and industry achieve and deliver the right outcomes. • delivering the Government’s major transport infrastructure investment projects

• providing strategic policy advice, analysis and support to government, our stakeholders and communities in the areas of energy policy, information and communication technology, and transport systems

• delivering a wide range of other major projects on behalf of government departments and agencies.

Department of Infrastructure Vision, mission and values Infrastructure portfolios 4

Transport portfolio

Incorporating public transport, ports and marine, and roads, the Transport portfolio covers:

• transport policy and planning • road system development and maintenance • rail and road freight and logistics • contract and lease arrangements for train, tram, route bus, school bus and ferry services and infrastructure • regulation of taxi, hire car, accident towing and driving instruction industries Peter Batchelor MP • regulation of public transport and road safety Minister for Transport • accessible transport services and facilities • traffi c system management • driver licensing and vehicle registration • management of the Government's City Link contract • management of large and complex transport infrastructure projects crucial to State development (for example, EastLink, Southern Cross Station redevelopment) • development, planning and policy for Victoria's ports • freight and logistics planning and infrastructure • marine safety and pollution response • sea passenger infrastructure • cruise shipping • management of Port Phillip Bay shipping channels.

Statutory authorities • Roads Corporation of Victoria (VicRoads) • Public Transport Ticketing Body (Transport Ticketing Authority—TTA) • V/Line Passenger Corporation (V/Line Passenger) • Victorian Rail Track Corporation (VicTrack) • Southern Cross Station Authority (SCSA) • Port of Hastings Corporation (POHC) • Port of Melbourne Corporation (POMC) • Southern and Eastern Integrated Transport Authority (SEITA) • Victorian Regional Channels Authority (VRCA)

DOI ANNUAL REPORT 2005–06 5

Major Projects portfolio

The Major Projects portfolio plans, manages and facilitates key infrastructure and land development and construction projects which enhance the economic and cultural infrastructure of the State. Major projects underway in Victoria during 2005–06 contributed to infrastructure in the following areas:

• arts and culture • business, industry and innovation • history and heritage • hospitals and health services

John Lenders MP • new homes and communities Minister for Major Projects • public spaces and venues • sport and recreation.

Projects managed by Major Projects Victoria (MPV) but nominated under the Commonwealth Games Arrangements Act 2001 and where the Minister for Commonwealth Games is responsible included:

• Commonwealth Games Athletes’ Village • Melbourne Sports and Aquatic Centre Stage 2 redevelopment • Yarra Precinct Pedestrian Link

Statutory authority • Victorian Urban Development Authority (VicUrban)

Department of Infrastructure Infrastructure portfolios 6

Energy Industries portfolio

The Energy Industries portfolio is responsible for ensuring the delivery of secure, affordable and safe energy to Victorian consumers and businesses, and that the supply and use of energy is increasingly sustainable. DOI is continuing to develop energy markets and regulatory arrangements that deliver:

• competitive prices and service levels for households and businesses • an effective safety net for consumers in the transition to competition • timely investment in new energy supplies • increasingly reliable energy networks

Theo Theophanous MLC • safety in the production, transport and use of energy Minister for Energy • the more effi cient use of energy Industries and Resources • lower greenhouse emissions from energy supply and use over time.

Statutory authorities • Energy Safe Victoria (ESV) • Victorian Energy Networks Corporation (VENCorp) • National Electricity Market Management Company (NEMMCO)* • Australian Energy Market Commission (AEMC)* • Australian Energy Regulator (AER)*

* National market authorities overseen by the Council of Australian Governments’ (COAG) Ministerial Council on Energy (MCE). The Minister for Energy Industries is Victoria’s representative on the MCE.

DOI ANNUAL REPORT 2005–06 7

Information and Communication Technology portfolio

The Information and Communication Technology (ICT) portfolio includes responsibility for:

• developing strategies to grow the ICT sector in Victoria • ICT industry investment attraction • improving ICT infrastructure and access • encouraging uptake of ICT by Victorian businesses • ensuring Victorians have the skills required by the ICT industry • providing internet training and access to the Victorian community Marsha Thomson MLC • whole-of-government purchasing arrangements for telecommunications services Minister for Information and Communication • using ICT to transform the way government delivers its services. Technology

Parliamentary Secretary for Infrastructure

The Parliamentary Secretary for Infrastructure provides policy support to DOI Ministers in relation to:

• taxi administration and reform • tow-truck regulation • bus reform • sustainable transport • channel deepening project.

Carlo Carli MP Parliamentary Secretary for Infrastructure

Department of Infrastructure Infrastructure portfolios Organisational structure 8

DOI Divisions and emergency management across the DOI portfolio, in particular for the transport and energy sectors. During 2005–06, there were 11 divisions that contributed to the achievement of the Department’s The Victorian Government’s role in the provision nine core outcomes. of energy services has evolved considerably over the past two decades of energy industry reform. Capital Planning and Review Victoria’s energy industry is mainly privately owned. Capital Planning and Review Division (CPRD) is responsible for reviewing and monitoring the Freight, Logistics and Marine Department’s portfolio of major road, rail, ports, IT The effi cient movement of freight and commercial traffi c and infrastructure projects across the project lifecycle. on Victoria’s roads, rail and port systems is essential for the State’s continued economic growth and prosperity. CPRD plays a key role in helping to ensure that project proposals have a sound business case and are The Freight, Logistics and Marine Division is accurately scoped and costed, that projects approved responsible for delivering the Government’s policy for implementation are responsibly managed, are agenda for the ports, maritime, freight and logistics delivered on time and on budget, and achieve their sectors in partnership with other agencies, industry social and economic goals. Risk identifi cation is an stakeholders and the community, and for the effective important focus of CPRD. management of marine safety. It encourages better use of Victoria’s freight network, improved planning CPRD has developed a ‘knowledge centre’ for the for freight growth and works to overcome critical development and implementation of best-practice bottlenecks through infrastructure investment. project development, management and project governance guidelines, methodologies, reporting Infrastructure Projects frameworks, policies and practices, providing The Infrastructure Projects Division (IPD) is intellectual leadership in these areas. responsible for the development and delivery of major rail infrastructure projects within the Government’s Corporate Resources policy framework of Growing Victoria Together, which The Corporate Resources Division is responsible includes the Linking Victoria program. Following for the delivery of a range of core internal services, the completion of the main infrastructure works for including human resources, contract and risk the RFR project, IPD assumed responsibility for the management, legal and executive services, information remainder of the project in July 2006. technology, management of public affairs, property, and budget and fi nance. These services provide the Major Projects Victoria operations platform for DOI to achieve its objectives. Victoria’s major infrastructure projects contribute to the State’s economy by generating employment, investment, Energy and Security manufacturing and contracting opportunities. Energy is an essential service on which our lifestyle, economy and well-being depend. Through the Energy Major Projects Victoria (MPV) is the Victorian and Security Division, DOI works with the gas and Government’s leading provider of project management electricity industries to ensure that Victorians enjoy a and development services for construction projects safe, secure, affordable and sustainable energy supply. and complex property development, and the lead agency for Building One Victoria. This division’s responsibilities include the development of energy markets and a framework for sustainable energy investment, and coordinating security risk

DOI ANNUAL REPORT 2005–06 9

Multimedia Victoria Public Transport Multimedia Victoria (MMV) works with other government PTD’s role, as the Government-appointed custodian bodies to implement the Government’s Connecting of Victoria’s public transport system, is to manage Victoria policy, which aims to bring the benefi ts of contractual and regulatory relationships (with Connex, technology to all Victorians. It is responsible for: V/Line Passenger, Yarra Trams, bus operators and others) effectively to meet the Government’s • encouraging advanced use of ICT in the objectives for public transport. PTD works closely Victorian economy with other parts of government, councils, and external community groups to achieve this. • improving ICT infrastructure and access, in particular broadband telecommunications PTD has a key role to play in facilitating the development and implementation of major projects • providing internet access, training and relevant which either enhance the public transport system or content to the Victorian community impact on it at the margins.

• developing strategies to grow the ICT sector Public Transport Safety Victoria in Victoria During 2005–06, Public Transport Safety Victoria (PTSV) was an independent specialist group within DOI • whole-of-government purchasing arrangements that reported directly to the departmental Secretary on for telecommunications services and other transport safety issues.* PTSV is responsible within a ICT products and services. co-regulatory framework, for the safety accreditation Multimedia Victoria also works closely with the ICT of rail and bus organisations throughout Victoria, and industry, community groups, education and training for developing and implementing appropriate safety providers and the wider business community. management systems. Compliance is monitored through a rigorous system of audits and inspections. Planning and Policy * On 1 August 2006, the Rail Safety Act 2006 The Planning and Policy Division is responsible for came into effect, introducing a more robust developing integrated policies and strategic plans for accreditation and regulatory framework and a range infrastructure and transport services, ICT and energy of contemporary compliance options. The Act has policy that will deliver the Government’s infrastructure established the independent statutory offi ce of objectives and targets. the Director, Public Transport Safety. PTSV is the administrative group that supports this new offi ce. The Division coordinates the TravelSmart travel behaviour change program, which aims to encourage Regional Fast Rail Victorians to choose more sustainable forms of transport, such as public transport, walking This project group is responsible for the delivery of and cycling. the Regional Fast Rail Project. The project will provide faster and better rail links between Melbourne and It is also accountable for developing appropriate Geelong, Ballarat, Bendigo and the Latrobe Valley methodologies and managing the strategic and in the biggest upgrade of these main regional lines higher level corporate and business planning, and in 120 years. With the project nearing completion this performance reporting functions for the Department. division was combined with IPD in July 2006.

Department of Infrastructure Organisational structure STATUTORY STATUTORY BODY Urban Victorian Development Corporation (VicUrban) Major Projects Projects Major Victoria Sweeney Sean Director Executive 10 Carlo Carli MP Infrastructure Parliamentary Secretary for Infrastructure Projects**** Frank Tait Director Executive Authority Authority Alf Smith - Capital Integrated Transport Southern and Eastern Deputy Secretary STATUTORY BODIES STATUTORY Southern Cross Station Capital Planning Review and Moody Gail Director Executive John Lenders MP Lenders John Minister for Major Projects Marine SafetyMarine Victoria Freight, Logistics Freight, Marine and Rogan John Director Executive STATUTORY STATUTORY BODIES Port of Melbourne Corporation Regional Victorian Authority Channels Hastings of Port Corporation Alan Osborne Alan Safety Victoria* Safety Public Transport STATUTORY STATUTORY BODIES Rail Victorian Track Corporation (VicTrack) Public Transport Body Ticketing Ticketing (Transport Authority) V/Line Passenger/ Corporation Passenger) (V/Line Public Transport Betts Jim Director CEO ORGANISATIONAL CHART AS AT 30 AUGUST 2006 30 AUGUST CHART AS AT ORGANISATIONAL David Anderson David Peter Batchelor MP Victoria (VicRoads) Victoria Minister for Transport for Minister Roads Corporation of Coordinator Coordinator of General Infrastructure ** Sussex Meredith Ian McCallum Ian and Marine Safety * Chief Investigator Transport Transport Investigator Chief Shared Services Shared Centre Corporate Corporate Resources McDonald Bob Director Executive Secretary Howard Ronaldson Howard Marsha Thomson MLC Thomson Marsha Minister Information for and Communication Technology Communication Planning and Policy and Planning Robinson John Director Executive DEPARTMENT OF INFRASTRUCTURE OF DEPARTMENT National market authorities overseen by Council of Australian Governments’ Ministerial Council on Energy (MCE). The Minister for Energy Industries is Victoria’s representative on MCE.the During 2005–06, Pat Kelly was Executive Director of Infrastructure Projects Division (IPD) and Frank was Tait Executive Director of Regional Fast Rail (RFR) Division. for works infrastructure main the of completion Following RFR, the two divisions were combined in July 2006, with Frank as Tait Executive Director. * Effective from 1 August 2006 ** 2006 August in Commenced *** **** Director Len Gainsford Len Multimedia Victoria Multimedia Straw Randall Director Executive Audit Committee Audit and Assurance and Audit Minister for Energy Energy for Minister Theo Theophanous MLC Theophanous Theo Industries and Resources Energy and and Energy Security Bolt Richard Director Executive STATUTORY BODIES VictoriaEnergy Safe Energy Victorian Networks Corporation Australian Energy Market Commission*** Australian Energy Regulator*** Electricity National Management Market Company***

DOI ANNUAL REPORT 2005–06 11 DOI executive management

Howard Ronaldson this, he was employed in teaching and research Secretary at the University of Melbourne, which included Howard was appointed Secretary of DOI in economic modelling and forecasting. Alf holds the December 2002. He brings vast experience in following qualifi cations: B.Com. (Hons.), University negotiating complex commercial arrangements between of Melbourne, Dip. Ed., University of Melbourne, the private sector and government and providing M.A. (Econ.) (Hons.), University of Melbourne and strategic policy advice. His early career included a he studied at the University of Southampton while senior position in a private company. After joining completing his Ph.D in Economics. the Victorian Government, Howard held executive positions in the Department of Innovation, Industry Jim Betts and Regional Development (DIIRD), Department of Director, Public Transport Division Premier and Cabinet (DPC) and became the Director Jim Betts took up his position as the Victorian of Gaming, the Director of Crown Lands and the Government’s Director of Public Transport in November Director of Housing. He was the Chief Operating 2004. As Director, he oversees train, tram, bus and taxi Offi cer of DOI from May until December 2002. Prior operations throughout Victoria, and heads up DOI’s to this appointment, he was the Chief Executive and Public Transport Division, with a staff of approximately Under Treasurer of the Department of Treasury, ACT. 400 people. Jim has extensive experience in commercial Howard holds the following qualifi cations: B.Ec., Grad. and policy development, particularly in public Dip. Accounting and Finance, Monash University and transport, with the Australian and UK governments. has a MBA from the University of Melbourne. Jim graduated from Oxford in 1987 with a BA in Dr Alf Smith modern history and then from Imperial College, Deputy Secretary – Capital London University in 1988 with a management Alf was appointed DOI’s Deputy Secretary — Capital science degree. He worked with the UK Government in September 2003. He has direct line responsibility in roles such as Assistant Private Secretary to the for all capital projects being developed or under Secretary of State for Transport and Policy Adviser construction within the Department’s portfolio. in the Railways Directorate. There he advised on the This involves overseeing and coordinating the privatisation of the UK passenger railways and led the development of new projects and monitoring the development of the UK Government’s railway policy. progress of projects during delivery. Alf also maintains close liaison with SEITA in its delivery of EastLink. Arriving in Victoria in 1998, Jim undertook the role of Director, Transport Reform in the Department Prior to becoming the Deputy Secretary — Capital, of Treasury and Finance (DTF). In June 2000, Jim Alf was the Deputy Director of the Franchise Review undertook the role of Assistant Director in the Project Task Force. He provided policy and commercial advice Development and Commercial Division of DTF where on the public transport franchise agreements and was he was a senior advisor to Government on major rail involved in negotiation with the franchisees. Alf was and health projects. also responsible for overseeing the administrative and fi nancial functions of the Task Force. Alf became well In 2002, as Deputy Director of the Franchise Review known throughout DOI while in his earlier role of Chief Taskforce, Jim led extensive negotiations with private Executive Offi cer of Melbourne CityLink Authority and operators within the Victorian rail industry, creating the Director of Melbourne CityLink. fi nancial stability and developing pathways for the re-franchising of the passenger rail network. In 2003, Prior to his work on the CityLink project, Alf spent Jim led, as Deputy Director of Public Transport, the 12 years working in a range of policy areas in various negotiation of new franchise agreements with Connex government departments, including DPC. Prior to and Yarra Trams and the creation of Metlink.

Department of Infrastructure DOI executive management 12

Richard Bolt in Victoria and adding value to national policy matters Executive Director, Energy and Security on rail safety regulation. Richard Bolt has been the Victorian Government’s principal adviser on energy policy since 2001. He is Graham has extensive expertise in safety currently the Executive Director of DOI’s Energy and management and accident investigation in both the Security Division. Richard also plays a coordinating aviation and rail industries, with previous roles at role in energy matters across Government. Qantas Airways, the Bureau of Air Safety Investigation, and within the rail industry. He provided expert advice Richard’s previous professional roles include Director to safety regulators, public inquiries and private- of Electricity Regulation of Victoria’s Essential Services sector organisations in regard to safety management Commission, political researcher and advisor in the and human factors, and has numerous international Australian Senate, and an engineer with the former publications based on his work. His qualifi cations State Electricity Commission of Victoria. include a B.Sc., a Masters Degree in Organisational Psychology (M.Psych) from Curtin University and James Cain a Ph.D from the University of Otago, in the area of Executive Director, Major Projects Victoria transport safety management. (until March 2006) Patrick Kelly James was appointed to the position of Executive Director, Infrastructure Projects Executive Director, Major Projects Victoria (MPV) (until July 2006) in August 2001. Pat Kelly is an electrical engineer and Fellow of Engineers Australia, with over 40 years experience in Prior to his appointment to MPV, James worked in railways and major projects. the private sector for over 10 years with Lend Lease Corporation in a variety of roles. In 1998, he was After qualifying in 1970 with a Diploma in Electrical appointed General Manager of Bovis Lend Lease for Engineering and later, with a Graduate Diploma in Victoria, South Australia and Tasmania. James has Business Administration, Pat worked in maintenance, broad experience in the property, project design and design, testing and commissioning, divisional and construction fi elds in a range of sectors including business management, project management and government, commercial, retail, health and industrial. railway operations. For four years he was the General James holds the following qualifi cations: B. Building, Manager responsible for all train operations in the (Melbourne), and a MBA (Australian School of State and management of country road coaches. Management).

Pat has held a number of roles with various Dr Graham Edkins government and private sector rail operators. Executive Director, Public Transport Safety Victoria His project experience includes the estimation (until December 2005) of the cost of the Melbourne Underground Loop Graham was appointed to the position of Executive electric traction systems; preparation of the business Director, Public Transport Safety in May 2003 with case, and subsequent delivery, of the fi rst phase of overall responsibility for the safety accreditation the Jolimont Decentralisation Project in 1989; and and regulation of rail, tram and bus services within contract and bid management in private industry. the State of Victoria. In addition, his role provided specialist independent safety advice to the Secretary In July 2006, following the merger of the Infrastructure of DOI and Minister for Transport. Graham led the Projects and RFR divisions, Pat was appointed Public Transport Safety Group in implementing a more Deputy Director, Public Transport Rail Strategy in contemporary approach to transport safety regulation Public Transport Division.

DOI ANNUAL REPORT 2005–06 13

Bob McDonald Chad Pappas Executive Director Corporate Resources Chief Finance Offi cer

Bob has held the position of Executive Director Chad has been with DOI for fi ve years and took Corporate Resources since December 2002. The over as Chief Finance Offi cer in December 2003. Corporate Resources Division brings together all the His Corporate Finance team play an enabling role major corporate services functions of the Department. across the DOI portfolio to ensure high standards of fi nancial management, including compliance with Bob’s key areas of responsibility include human Accounting Standards and government directions. resources, communications and public affairs, contract services and risk management, information Chad has worked across the Victorian Government technology services, executive and legal services, over the past 10 years, and before arriving at DOI was fi nancial management and analysis, corporate systems at the Department of Treasury and Finance where he and processes, including DOI’s web environments, was Assistant Director in the Budget Division. Prior to knowledge and information management and DOI’s that he worked at the departments of Human Services property management responsibilities. and Justice. Chad worked in publicity and legal services before his career in government. As Executive Director, Bob is also responsible for the Shared Services Centre, established in November Chad is a CPA, with a Bachelor of Economics, 2005, which provides Information Technology a Grad. Dip. Accountancy, and a Grad. Dip. services to four State Government departments. Applied Finance and Investment.

Before being appointed to his present role, Bob John Robinson held the position of Chief Finance Offi cer from April Executive Director, Planning and Policy 1997. Bob is a graduate of Monash University with a John was appointed Executive Director of Planning Bachelor of Economics degree and is a fellow of the and Policy Division in November 2004. This Division Australia Society of Certifi ed Practising Accountants. is responsible for integrated strategic planning and policy for infrastructure and transport services. Gail Moody Executive Director, Capital Planning John has held senior policy roles in government and Review Division for more than 10 years. Previous positions include: Gail was appointed to the role of Executive Director Executive Director, Energy, with the (former) Victorian of the Capital Planning and Review Division (CPRD) Department of Natural Resources and Environment; in October 2004. The Division is responsible for General Manager, Microeconomic Reform and reviewing and monitoring the development and Infrastructure, for the South Australian Treasury; and delivery of the portfolio’s capital program. Director, Energy Policy, for the Victorian Treasury. John holds qualifi cations in economics, B.Ec. (Hons.) Gail has held senior positions in the former Public and M.Ec. Transport Corporation, primarily for delivering major projects, and in DOI for strategic planning and project delivery. Gail holds a Bachelor of Civil Engineering degree and Master of Engineering Science (Transport Planning) degree and is a Fellow of Engineers Australia.

Department of Infrastructure DOI executive management 14

John Rogan Sean Sweeney Executive Director, Freight, Logistics and Marine Acting Executive Director, Major Projects Victoria John was appointed to the position of (until August 2006*) Executive Director, Freight, Logistics and Marine Sean was appointed to the position of Acting Executive in September 2003. Director, Major Projects Victoria (MPV) in March 2006 following the departure of James Cain. John has held senior executive roles in the public sector for 18 years, in a range of departments Sean worked in the private sector for more than including Treasury; Attorney-General’s Offi ce; 20 years holding senior positions within a major Planning and Development; Arts, Sport and Tourism; project management consultancy. Sean has broad and Infrastructure in Victoria, as well as Transport experience in the property, design, management and in New South Wales. John holds degrees in Arts, construction fi elds, working on projects in Australia, Law (Hons) and Commerce from the University New Zealand, the USA and Europe. Sean has an of Melbourne, and a Masters degree in Public honours degree in Engineering (Auckland NZ). Administration from Harvard University. * Sean was appointed Executive Director of MPV Thomas Sargant in August 2006. Acting Director, Public Transport Safety Victoria (from December 2005) Frank Tait Thomas was appointed to the position of Director, Executive Director, Regional Fast Rail Public Transport Safety in December 2005, following (until July 2006) the departure of Dr Graham Edkins. Frank Tait assumed the position of Executive Director, Regional Fast Rail in November 2003. Thomas has extensive expertise in rail infrastructure He has been responsible for delivering the management and operational matters in the rail infrastructure component of the project, comprising industry with previous roles at National Express and four design and construct contracts that, combined, V/Line Passenger. His prior experience was in the have modernised 500 kilometres of regional railway private sector, primarily in the construction industry line and installed a fully automatic signalling system. where he developed skills in the development and implementation of management system structure and Frank has extensive experience in the rail freight management. He is a Chartered Professional Engineer industry and has managed large and complex whose qualifi cations include a Batchelor of Civil organisations. He managed V/Line’s freight business Engineering (BCE) and a Masters Degree in Business and all diesel rail operations within the State and Administration (MBA). was General Manager Intermodal at the National Rail Corporation. He was also Chief Executive Offi cer Randall Straw of the City of Stonnington. Frank’s undergraduate Executive Director, Multimedia Victoria qualifi cation is in Aeronautical Engineering from RMIT. He also completed his MBA at RMIT. Randall Straw has responsibility for ICT policy and strategy across Victoria. Multimedia Victoria’s key role Following completion of the main infrastructure works for is the consideration of longer term ICT issues across the RFR project, a decision was made to combine the the government, business and the community. Infrastructure Projects and RFR divisions. From mid-July 2006, Frank became Executive Director of the new IPD. Randall has an extensive background in ICT policy, planning and implementation with a number of Victorian public sector agencies over the past 25 years.

DOI ANNUAL REPORT 2005–06 15 Policy and strategic framework

POLICY CONTEXT GROWING VICTORIA TOGETHER — KEY GOALS

Greater public participation and more accountable government

High High Building A fairer Protecting the Effi cient More Growing Sound quality, quality friendly, society that environment use of quality jobs and linking fi n a n c i a l accessible education confi dent reduces for future natural and thriving, all of Victoria management health and and and safe disadvantages generations resources innovative community training communities and respects industries services for lifelong diversity across learning Victoria Social goals Environmental goals Economic goals

Key Policy and Strategy Frameworks

Linking Melbourne Victorian Victoria Ports Melbourne: Energy for 2030: Planning A Fairer Connecting Government ICT Strategic Metropolitan Victoria for Sustainable Victoria Victoria Industry Plan Framework Transport Plan Growth 2005–2010

Broadband arrive alive! Meeting our Victoria: Moving forward: Building One Framework: 2002–2007: Transport Leading the Making Provincial Victoria Victoria Pathway to Victoria’s Road Challenges Way the Best Place to Live the Future Safety Strategy

Key Challenges

Delivering Improving Maintaining Enhancing infrastructure Managing peak Promoting mobility and Increasing and enhancing the quality of projects demands on economic growth access to the focus the framework services over on time, on the metropolitan and enhancing services in on security for investment which DOI has budget and to road and rail Victoria’s rural and requirements in energy responsibility agreed scope networks competitiveness regional Victoria and quality

DOI Outcomes

Public safety and security Infrastructure delivery and management Access and mobility

Connected Victoria Secure and sustainable energy supply Effi cient movement of freight

Rural and regional development Organisational capability building Integrated policy development

DOI Outputs

ICT policy, programs Infrastructure planning, Public safety and security Public transport services and infrastructure delivery and management

Department of Infrastructure Policy and strategic framework 16

Policies and Strategies Linking Melbourne: Metropolitan Transport Plan DOI is focused on delivering the Victorian The Linking Melbourne: Metropolitan Transport Plan Government’s key priorities. These are detailed in the (MTP) is a comprehensive plan for the management major policy statements and decisions of government. and development of Melbourne’s transport system. This annual report draws together DOI’s contribution It reinforces and supports the Government’s strategic towards these government policy directions. It details framework for managing land use and transport DOI’s achievements, issues and performance over the contained in Melbourne 2030: Planning for 2005–06 fi nancial year. Sustainable Growth.

Growing Victoria Together Full details of the MTP can be found at: Growing Victoria Together was fi rst launched www.linkingvictoria.vic.gov.au in November 2001 and expressed the Victorian Government’s broad vision for the future. Growing Meeting our Transport Challenges: Connecting Victoria Together linked the then major issues of Victorian Communities importance to Victorians, the priority actions to be Meeting Our Transport Challenges delivers the taken across government and measures used to show Government’s plan to build a world class transport progress. The framework was refreshed in March 2005 system over the next 25 years, supported by an to refl ect progress and Victoria’s changing environment unprecedented commitment of $10.5 billion over of challenges and opportunities. It will enable Victoria 10 years. This plan supports the Metropolitan to build on its achievements to date and track progress Transport Plan by providing a substantial program to 2010 and beyond. of investment in transport infrastructure and a strong framework which can be built on as new needs Key goals and measures to which DOI makes a and challenges arise. signifi cant contribution are: Full details of Meeting Our Transport Challenges • more quality jobs and thriving, innovative can be found at: www.linkingvictoria.vic.gov.au industries across Victoria

• growing and linking all of Victoria Melbourne 2030: Planning for Sustainable Growth • effi cient use of natural resources Melbourne 2030: Planning for Sustainable Growth • building friendly, confi dent and safe communities (2002) presents the Government’s vision and long-term • greater public participation and more plan for ensuring that Melbourne’s growth is managed in accountable government. ways that are economically, socially and environmentally sustainable. One of the features of Melbourne 2030 Full details of Growing Victoria Together can be is the encouragement of development in and around found at: www.dpc.vic.gov.au activity centres that are connected by the Principal Public Transport Network and fed by local public transport services. Melbourne 2030 also provides for better links with regional areas, including Geelong, Ballarat, Bendigo and the Latrobe Valley.

Full details of Melbourne 2030: Planning for Sustainable Growth can be found at: www.melbourne2030.vic.gov.au

DOI ANNUAL REPORT 2005–06 17

A Fairer Victoria Full details of The Greenhouse Challenge for Energy A Fairer Victoria sets out the actions the Government and Victorian Greenhouse Strategy Action Plan Update will take to improve access to services, reduce barriers can be found at: www.greenhouse.vic.gov.au to opportunity, strengthen assistance for disadvantaged groups and places, and ensure that people get the help Moving Forward: Making Provincial Victoria they need at critical times in their lives. the Best Place to Live, Work and Invest Released in November 2005, Moving Forward Full details of A Fairer Victoria can be found at builds on the turnaround in regional Victoria over www.dpc.vic.gov.au the past six years. It provides support for regional communities to meet new challenges and capture Victoria: Leading the Way opportunities for growth. (Economic Statement April 2004) Victoria’s recent strong economic performance has Full details of Moving Forward: Making Provincial been facilitated through strategic investments in Victoria the Best Place to Live, Work and Invest people, innovation and infrastructure. can be found at: www.business.vic.gov.au Victoria: Leading the Way is the Government’s action plan to position Victoria to meet signifi cant Victorian Ports Strategic Framework external challenges and maintain its leading The Victorian Ports Strategic Framework economic performance. (November 2004) provides a framework for the future development of Victoria’s four commercial trading Key actions for DOI in Victoria: Leading the Way are: ports at Melbourne, Hastings, Geelong and Portland. • deepening the channel to the Port of Melbourne The Framework aims to provide clarity for local industry about the Government’s commitment to the ports and • improving land access to the Port of Melbourne to ensure that future growth plans are considered in • building better supply-chain links relation to the wider interests of the community.

• maintaining our low-cost energy advantage. Full details of the Victorian Ports Strategic Framework can be found at: www.doi.vic.gov.au/portsmarine Full details of Victoria: Leading the Way can be found at: www.dpc.vic.gov.au arrive alive! 2002–2007: Victoria’s Road Safety Strategy The Greenhouse Challenge for Energy and Victorian Greenhouse Strategy The Victorian Government’s road safety strategy, Action Plan Update arrive alive! 2002–2007, identifi es and addresses a range of road safety challenges. The goal is to reduce In December 2004, the Government released road deaths and serious injuries by 20 per cent over a position paper on reducing greenhouse gas a fi ve-year period. emissions from the energy generation sector: The Greenhouse Challenge for Energy. In April 2005, Full details of arrive alive! 2002–2007: Victoria’s Road the Government released the Victorian Greenhouse Safety Strategy can be found at: Strategy Action Plan Update. The Update details www.arrivealive.vic.gov.au recent developments in State, national and international greenhouse policy settings.

Department of Infrastructure Policy and strategic framework 18

Broadband Framework: Victorian Government ICT Pathway to the Future Industry Plan 2005–2010 The April 2005 Broadband Framework builds on Released in December 2005, the Victorian Government the achievements of the Government’s Regional ICT Industry Plan 2005–2010 aims to further develop Connections — a better state of communications Victoria’s high-performing ICT industry. The Government strategy. The Framework will ensure that the believes that fostering a strong ICT production sector Government continues its strategic use of broadband in delivers direct value to the State through signifi cant areas with the potential to deliver the greatest benefi ts employment, revenue and exports. An innovative local to Victorian businesses, communities and households. ICT industry can also support leading-edge use of ICT by all Victorian industry, helping to improve effi ciency Full details of the Broadband Framework can be and productivity. found at: www.mmv.vic.gov.au/broadband Full details of the Victorian Government ICT Industry Connecting Communities: Plan 2005–2010 can be found at: the second wave www.mmv.vic.gov.au In 2001, as part of its Connecting Victoria strategy, the Victorian Government announced Connecting DOI Outcomes Communities. This was a framework for using technology to create and strengthen communities Each DOI Division makes a signifi cant contribution to and ensure all Victorians could access the the achievement of the Department’s nine outcomes: opportunities being generated by the internet. Released in December 2004, Connecting • Outcome 1: Public safety and security Communities: the second wave acknowledges • Outcome 2: Infrastructure delivery that there is still an important role for government and management in assisting these Victorians. This ongoing role involves continuing support for existing public use • Outcome 3: Access and mobility internet access infrastructure, ensuring basic skills • Outcome 4: Connected Victoria can be acquired by groups facing particular barriers • Outcome 5: Rural and regional development and encouraging the development of more relevant and useful content. • Outcome 6: Effi cient movement of freight

• Outcome 7: Secure and sustainable Full details of Connecting Communities can be found energy supply at: www.mmv.vic.gov.au • Outcome 8: Integrated policy development

• Outcome 9: Organisational capability building

These key achievements are detailed under each outcome in the next section of the report.

DOI ANNUAL REPORT 2005–06 19 Chief Finance Offi cer’s executive summary

In 2005–06, DOI’s operating result shows an DOI’s contribution to road-related infrastructure is increase of approximately $12 million from included in the operating payments made for road 2004–05. The operating revenue includes services and via contributed capital (see Note 19c) to predominantly appropriations for the provision VicRoads and SEITA. The related road infrastructure of outputs to government and after deducting the assets and liabilities, consistent with the treatment cost of operations, the Department has a surplus for rail assets and liabilities, are reported in these of $232 million. The surplus is primarily due to agencies’ fi nancial statements. revenue received in the year to meet commitments entered into for infrastructure projects. Major Projects Victoria, a division in DOI, has also played a signifi cant role in the delivery of many of Victoria’s Grants and payments to service providers dominated large capital projects, which this year included the DOI’s operating expenses, with the next largest Commonwealth Games Athletes’ Village. This year’s category being the cost of the Department’s staff, fi nancial statements include a post-balance date event which is refl ected in the payment of employee (Note 37) which identifi es that the responsibility for the benefi ts. Rail payments (train and tram) of Athletes’ Village will transfer to DOI on 1 September approximately $1.5 billion, and bus services 2006. MPV’s activities are disclosed in Note 27 and of $0.5 billion, represent the payments to the show expenditure and commitments on behalf of public transport service providers. Road services sponsor departments. The related assets and liabilities of approximately $0.8 billion relate to payments are not refl ected in DOI’s accounts as these are reported made to VicRoads and SEITA for the provision in the sponsor agencies’ fi nancial statements. of road services. Also included in the notes to the accounts Note 2 of the Financial Statements provides more (Note 32 Administered items) are details of the detail of the Department’s expenditure on the outputs fi nancial implication of CityLink Concession Deed supplied to Government under the categories: Public arrangements. DOI reports this as administered, Safety and Security; ICT Policy, Programs and as the responsibility for accounting for the Infrastructure; Infrastructure Planning, Delivery and CityLink Concession Deed lies with VicRoads. Management; and Public Transport Services. Further details of the transaction can be found in the VicRoads 2005–06 Annual Report. The major structural change within the organisation during 2005–06 has been the establishment of the The Operating Statement includes revenue received Shared Services Centre (SSC). The creation of the by DOI as payments for outputs delivered. The delivery SSC combined the information technology areas of DOI’s outputs is measured against agreed output from DOI and the Department of Sustainability and targets and the Treasurer certifi es revenue based on Environment into a single entity within DOI. As a the level of performance. In 2005–06, DOI managed its result some assets and liabilities were transferred and outputs within its available resource limits. this has been identifi ed in Note 3: Restructuring of Administrative Arrangements. The Financial Statements presented later in this report are prepared in accordance with the applicable DOI’s capital spend, which includes the RFR project accounting standards and the Financial Management and Craigieburn Rail Project is again signifi cant. Act 1994. They strictly relate to the operations of DOI It should be noted that these assets are transferred and include the operations under the body corporate by way of equity (see Note 19) to VicTrack, as the ‘Secretary to DOI’, the Offi ce of the Director of Public entity responsible for reporting the State’s rail Transport, the Offi ce of Public Transport Safety and infrastructure assets. the Shared Services Centre.

Department of Infrastructure Chief fi nance offi cer’s executive summary 20

All other agencies and corporations prepare their own annual reports (including audited fi nancial statements) and report separately.

The following table shows the fi nancial results for DOI over the past six years.

2006 2005 2004 2003 2002 2001 $m $m $m $m $m $m

Operating revenue – appropriations 3,311.6 2,800.7 2,504.0 2,442.5 2,406.1 2,316.6 – other revenue 305.5 236.4 540.1 291.1 181.1 135.6 Total operating revenue 3,617.1 3,037.1 3,044.1 2,733.6 2,587.2 2,452.2 Operating expenses 3,384.7 2,816.3 3,390.2 2,777.3 2,531.9 2,377.4 Operating surplus (defi cit) 232.4 220.8 (346.1) (43.7) 55.3 74.8 Total assets 1,343.2 1,161.7 1,058.6 945.9 927.0 439.2 Total liabilities 622.6 607.9 612.4 237.2 161.1 139.4 Net assets 720.6 553.8 446.2 708.7 765.9 299.8

The total assets and total liabilities for the years ending 2004 and 2005 have been restated to comply with the reporting requirements of the Australian Equivalents to International Financial Reporting Standards (AIFRS).

DOI ANNUAL REPORT 2005–06 1 OUTCOME 1 PUBLIC SAFETY AND SECURITY

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

DOI ANNUAL REPORT 2005–06 23 Outcome 1: Public safety and security

Growing Victoria Together vision Caring Communities

Growing Victoria Together goals Building friendly, confi dent and safe communities

DOI output group Public Safety and Security

DOI outputs

• Public Transport Safety and Regulation • Road Safety and Regulation • Vehicle and Driver Regulation • Marine Safety Regulation • Infrastructure Security and Emergency Management • Energy Policy Services

Safe, reliable infrastructure and services are vital to safety infrastructure and systems. Government Victoria’s future economic prosperity and liveability. initiatives in recent years have also led to a substantial DOI implements programs and provides services drop in crime on and around public transport. aimed at reducing the number of deaths and serious injuries that occur on the State’s roads; on and Measures in the Government’s Growing Victoria around public transport; at ports and on waterways; Together framework for demonstrating improvements and from the production, distribution or use of gas in public safety are: and electricity. • Crime will be reduced by 5 per cent from 2003 Victoria continues to be recognised nationally and to 2008 and Victorians will feel safer. internationally as a leader in the area of road safety. The State’s road toll in the 2005 calendar year was • Annual deaths and serious injuries from road one of the lowest on record and around one third crashes will be reduced by 20 per cent over of the toll in 1970 (refer Figure 1). Since the the period 2002 to 2007. introduction of the Government’s arrive alive! strategy in 2002, deaths on Victorian roads have The Government’s 10-year action plan for Victoria’s dropped by 17 per cent. This is a result of the transport system, Meeting Our Transport Challenges, combined effects of targeted investments in road released in May 2006, commits $1.1 billion in new and roadside safety infrastructure, behavioural projects to improve safety across Victoria’s transport improvements and enforcement. network. The plan aims to retain Victoria’s position of having one of the safest transport systems in the While Victoria has a safe public transport system, world, with an ongoing commitment to improving rail the growth in transport demand, ageing infrastructure safety and reducing the personal, community and and an increased risk of terrorist activity, all contribute economic costs of road accidents. to the need to constantly maintain and upgrade

Outcome 1 Public safety and security 24

These improvements will be achieved by: The development of security policy for the transport, energy and ICT portfolios was a signifi cant • undertaking a long-term program of assignment for DOI in 2005–06. Against the backdrop investment in safety assets across the of planning for the unique security requirements of the State’s transport network Melbourne 2006 Commonwealth Games, the terrorist bombings in Madrid and London have illustrated the • introducing new, safer technologies necessity for Victoria to escalate its efforts to improve and practices where warranted security risk planning in public transport.

• adopting a more robust regulatory approach The effective management of security risks and to monitor risks and working with transport emergencies by providers of critical infrastructure operators to minimise risks services, and by DOI, is of central importance, given their potentially large impact on the community. • improving security risk planning throughout The actions of governments and infrastructure the transport network to address the potential owners and operators need to be well-coordinated threat of terrorism to be most effective.

• continuing to place a high priority on road safety. DOI’s main achievements in 2005–06 towards improving the safety and security of Victorians Similarly, the ongoing work of Marine Safety Victoria are outlined in the following pages. and the establishment of Public Transport Safety Victoria and Energy Safe Victoria in August 2005, Further details about specifi c safety initiatives being provide DOI with greater capacity to monitor, regulate undertaken by DOI can be found at: and improve safety across major infrastructure www.doi.vic.gov.au/transport sectors in the State. www.doi.vic.gov.au/publictransportsafety www.marinesafety.vic.gov.au www.esv.vic.gov.au www.arrivealive.vic.gov.au

Figure 1. Victorian Road Toll

1200

1000

800

600

400 Number of Deaths

200

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year Source: Transport Accident Commission

DOI ANNUAL REPORT 2005–06 25

Key achievements Figure 2. Cost of Victoria's Serious Casualty Crashes Road safety $3,500 $3,180 $3,047 $3,000 $2,926 During 2005–06, VicRoads continued to implement $2,800 $2,670 arrive alive! 2002–2007 Victoria’s Road Safety $2,500 Strategy in conjunction with the Department $2,000 of Justice, the Transport Accident Commission (TAC) and Victoria Police. $1,500

2005 A$ (million) $1,000 For the 2005 calendar year, Victoria delivered the best road safety record in Australia, with 6.9 deaths $500 per 100,000 population compared to 8.4 for the rest $0 of Australia. 2001–02 2002–03 2003–04 2004–05 2005–06 Financial Year The State’s road toll for 2005–06 fi nancial year was 322 — eight below the arrive alive! target of 330. Figure 3. Victoria's Serious Injuries

Victoria’s approach to road safety has delivered the 7,000 6,816 6,804 6,607 three lowest yearly road tolls in Victoria’s history 6,258 in 2003, 2004, and 2005. 6,000 5,959

5,000 5,116 VicRoads’ road safety activities during 2005–06 included: 4,000

3,000 • developing and implementing projects under two consecutive $130 million and $110 million 2,000

Safer Roads Infrastructure programs, with funding Number of serious injuries 1,000 fully allocated to 365 projects focused on run-off- road crashes. At the end of 2005–06, 63 projects 0 had been completed and 18 commenced, with 2001–02 2002–03 2003–04 2004–05 2005–06 arive alive! target a total expenditure of approximately $114 million. Financial Year All projects are expected to be completed by Figure 4. Victoria's Road Toll December 2007 500 • completing 114 blackspot projects funded under 450 451 State and Federal blackspot programs, including 400 366 $2.3 million worth of road improvements along 350 333 335 322 330 17 high risk motorcycle routes in consultation 300

with the Victorian Motorcycle Advisory Council 250

200 • developing a new Graduated Licensing System 150 which will come into effect from July 2007 Number of fatalities 100

50

0

2001–02 2002–03 2003–04 2004–05 2005–06 arive alive! target Financial Year

Outcome 1 Public safety and security DANIEL PRZYCHODZKI 26

Program Engineer, Traffi c and Roads, RACV

• completing the Enhanced Crash Investigation I work in the Public Policy department at the (ECI) Project — the fi rst of its kind in Australia. RACV. My main role is advocacy around safe VicRoads engaged the Monash University mobility for our 1.4 million members. Accident Research Centre to undertake detailed examinations of the roads and vehicles involved It was important for us to be involved in the in 81 serious injury crashes in Victoria, as well Enhanced Crash Investigation (ECI) project as interviewing road users who were involved to bring our knowledge and expertise to the in the collisions investigation panels. I was there to represent RACV members, but importantly to also • assisting in the preparation of the full legislation contribute as a professional engineer. that allowed permanent random roadside saliva testing to detect drug driving I was a representative on about 10 ECI panels in the metropolitan area. The strength of • implementing a Driver Rewards Scheme to the project was that it brought together, for reward drivers for safe driving behaviour. the fi rst time, a very broad cross section of The Scheme offers a 25 per cent discount on stakeholders: the RACV, road authorities such the cost of licence renewal to drivers who incur as VicRoads (which commissioned the study), no demerit points or who have not incurred a the Victorian Ambulance Service, Victoria Police serious traffi c-related offence in the three years and road safety councils, to discuss the causes before receiving their renewal notice. of serious injury crashes. Personally, I found it enlightening to hear the views of the ambulance Through Meeting Our Transport Challenges, and police offi cers as to the causes of the the Government is building on its road safety incidents. The discussions were open and frank; achievements with a $600 million commitment over it was good that everyone had the opportunity 10 years to reduce the number and severity of road to contribute. crashes through the next generation of the successful arrive alive! road safety strategy. There were two main themes from the investigations: fatigue, especially in the outer metropolitan areas, and also the road side environment. In particular, there seemed to be many crashes caused by simple errors that resulted in a crash into an unforgiving roadside. Although members of the general public seem to be aware of the dangers of fatigue, they fail to consider the management of roadside dangers such as trees and poles.

Only through continuing these discussions and having all the stakeholders together will we be able develop the best solutions to reduce serious injury crashes.

DOI ANNUAL REPORT 2005–06 27

Public transport safety A further 76 pedestrian and road/rail crossings were upgraded during the year under the Regional Fast Rail Safer railway crossings project, resulting in signifi cant safety increases Although level crossing fatalities represent less than for Victoria’s busiest rail passenger routes. one per cent of road fatalities, their potential severity makes railway crossing safety an important priority In all, a total of 161 Victorian railway crossings for the Government. have been upgraded since 2000, and design or construction has commenced on a further 24 In the 2005–06 State Budget, the Government allocated road/rail crossings and 23 pedestrian crossings. $10.8 million over four years, on top of the annual investment of up to $3 million, for the Level Crossing In November 2005, the Government launched the Upgrade Program. The Government has also allocated ongoing ‘Don’t Risk It’ level crossing safety campaign $11.3 million to the Railway Pedestrian Crossing to warn people of the dangers at level crossings and Protection Upgrade Program from 2002–03 to 2006–07, encourage safe behaviour. in addition to an annual allocation of $2.125 million DOI is undertaking a comprehensive survey of all from 2006–07. The Meeting Our Transport Challenges 3,132 road/rail and pedestrian crossings in Victoria to action plan allocates a further $208.7 million over the help identify railway ‘blackspots’ and provide the basis next 10 years to accelerate railway crossing safety. for prioritising which crossings will be upgraded, A suite of complementary strategies is being using the Australian Level Crossing Assessment implemented to increase safety at railway Model (ALCAM) method of risk assessment. crossings, including: Field surveys began in the metropolitan area in mid-December 2005 and will take around two years • upgraded safety protection to complete. Approximately 500 crossing surveys had been completed by the end of June 2006. • a community education campaign Draft Disability Access Standards for Pedestrian • a systematic, statewide approach to identifying Rail Level Crossings have been developed in and prioritising level crossing upgrades consultation with rail operators, and organisations and individuals representing the interests of people • a commitment to grade separation of with a disability. Three prototype crossings have been some crossings. trialled to determine their compliance with legislation and suitability for the community. A change to the The level of safety protection was upgraded at accreditation arrangements for rail organisations will 20 rail crossings during 2005–06 under the Railway be prepared for their agreement early in 2006–07. Pedestrian Crossing Protection Upgrade Program This will allow them to formally incorporate the and the Level Crossing Upgrade Program, comprising standards into their safety management systems, eight road/rail crossings and 12 pedestrian railway implementing the standards across Victoria. crossings. For the list of upgraded crossings and This is expected to take place by October 2006. planned upgrades see www.doi.vic.gov.au/transport

Outcome 1 Public safety and security 28

Figure 5. Offences on public transport 1997–98 to 2005–06

16,000

14,000

12,000

10,000

8,000 Number

6,000

4,000

2,000

0

1997–98 1998–99 1999–00 2000–01 2001–02 2002–03 2003–04 2004–05 2005–06*

Financial year

*Provisional fi gures for 2005–06 sourced from Victoria Police website in August 2006.

Safety audits Personal safety on public transport During 2005–06, safety compliance by public Upgraded closed-circuit television (CCTV) equipment transport operators was monitored through a was installed at central business district (CBD) stations system of rigorous audits and inspections and in time for the Commonwealth Games. All new and through accident investigations. refurbished trains are fi tted with duress buttons and CCTVs, and all new Combino trams are fi tted with Through its specialist team in Public Transport Safety internal cameras to help drivers monitor what is Victoria (PTSV), DOI also monitored the degree happening within the passenger compartment and to which safety-related recommendations and passengers boarding and alighting around door areas. corrective actions were implemented by operators. The introduction of the Transport Safety Audit The Government has provided greater security and Accreditation System (TSAARS) software package shelter at Blackburn, Boronia, Broadmeadows, has enabled a more integrated and consistent Croydon, Laverton, St Albans and Sunshine stations. approach to accreditations, audits and investigations. Connex has introduced Safety Zones at 57 locations across the train network and is installing improved lighting on and around station platforms and station car parks.

DOI ANNUAL REPORT 2005–06 29

The Government also implemented new laws during Trials of a supplementary system that requires drivers 2005–06 in relation to personal safety and amenity to press a button within a specifi ed timeframe when on buses, trains, trams and taxis as part of a holistic no other monitored activity has occurred were review of transport legislation. The new laws resulted in completed on the Comeng train fl eet in 2005–06. the development of a range of improved and reordered The Government has committed $37 million under offences aimed at improving passenger safety and the Meeting Our Transport Challenges action plan to amenity, primarily on the public transport network. deploy this supplementary vigilance system across The offences are located in the Transport Act 1983, the the entire metropolitan fl eet. An $11 million tender Transport (Conduct) Regulations 2005, the Transport for deployment to the Comeng fl eet has been let to (Passenger Vehicles) Regulations 2005 and the Innovonics Limited and commenced in August 2006, Transport (Taxi-cab) Regulations 2005. for completion by July 2007. Regional passenger trains already have a similar system in operation. Provisional Victoria Police statistics show an 8 per cent drop in reported crime in and around The $95 million Country Train Safety System project public transport (including taxis) in 2005–06 has delivered increased safety standards by installing compared with 2004–05. Crime against the person a Train Protection Warning System (TPWS) that fell by 6 per cent, theft of motor vehicles dropped detects trains travelling at excessive speeds or failing 12.7 per cent and theft from motor vehicles declined to stop, and automatically applies the train’s brakes if by 1.9 per cent. Overall, crime against property required. Trackside equipment has been installed on fell by 1 per cent. Reported crime in and around RFR corridors and fi tted to the V/Line Passenger train public transport has dropped by 45.1 per cent since fl eet. Activation of TPWS equipment on the train fl eet 1997–98, and by 33.2 per cent since 2001–02. will be progressively implemented during the third quarter of 2006. Train safety and communications The Government also allocated $4 million across the The train vigilance system in use on the metropolitan 2004–05 and 2005–06 fi nancial years for an interim train network is designed to detect driver alertness upgrade of the metropolitan train radio system, which through continuous pressure on a lever or foot pedal, was completed and will extend the life of the radio and automatically apply the train’s brakes if the driver system for four to fi ve years. becomes incapacitated.

An investigation of Victorian vigilance systems following New rail safety legislation the New South Wales Waterfall train accident found One of the outcomes of DOI’s extensive review that there is a small risk that a train driver could of Victoria’s regulatory safety regime is the become incapacitated without activating the vigilance Rail Safety Act 2006, the fi rst stand alone rail safety system. In 2004, the Government consequently statute for Victoria. The Act sets out a more robust allocated $6.4 million to trial and investigate an regulatory framework including performance-based improved vigilance system on all metropolitan trains. safety duties for rail infrastructure managers, rolling stock operators, contractors and rail safety workers; an enhanced accreditation regime; and a range of contemporary compliance options.

Outcome 1 Public safety and security PAM USHER 30

Managing Director, Invicta Bus Group, Lilydale

The Act established the independent statutory Invicta Bus Group is the sixth largest bus operator offi ce of the Director, Public Transport Safety. The in Victoria and provides bus services to the Transport Legislation (Safety Investigations) Act Mooroolbark, Ringwood, Croydon and Bayswater 2006 establishes the position of Chief Investigator, areas. We are currently accredited to operate Transport and Marine Safety. by Public Transport Safety Victoria (PTSV).

During 2005–06, considerable effort went into This year we’ve been involved in PTSV’s preparing for the implementation of the legislation initiative to develop a training DVD called the and raising awareness within the rail industry about Drivers’ Guide to Bus Door Safety. Despite the new legislative requirements. The Act came advances in mechanical safety systems, bus into effect on 1 August 2006 and was developed door safety is an ongoing issue for the industry. ahead of the timetable for the Council of Australian Bus operators can use this DVD to maintain Governments’ national rail safety legislation. awareness of the issue among their drivers.

Staff education and training We were one of the fi rst bus operators in Victoria to develop and implement a computer- PTSV has developed an integrated education based, integrated safety management system. program that provides its staff with the necessary The system allows us to look up past faults skills to meet the complex demands of working for a or service requirements and other details modern safety regulator. The Diploma of Government for a particular bus. It can trace records back was developed during 2005–06 to increase staff three years, and ensures that we have all the expertise, particularly in the area of compliance documentation required for our yearly PTSV and investigation activities. safety audit.

An inaugural Transport Technology course, We are also very serious about training, and designed to familiarise staff with railway safety is a key component of this. Our training infrastructure, rail technologies, rail operations, and incorporates industry changes as they happen, railway management, was attended by 120 people. and we are often among the fi rst companies This two-day course was also made available to other to adopt new technologies and ideas. government agencies such as the National Transport Commission, and will be offered on a regular basis The biggest issue for the bus industry over to those needing an introduction to the rail industry. the next two years will be the expected rapid growth associated with the Government’s Review of current bus legislation announcement of increased funding for the Consistent with the process that produced the bus industry. We will need many more drivers, Rail Safety Act 2006, DOI is also undertaking a review mechanics and support staff. of the bus and bus safety legislation, with the aim of improving regulation and safety performance It’s really important that we don’t see ourselves of the bus sector. as being in isolation. Being proactive and building good relationships with PTSV and other industry participants is so important. As an accredited operator, potential incidents involving safety are always on our minds — but our commitment to training and safety systems delivers good, safe drivers and safe operations.

DOI ANNUAL REPORT 2005–06 31

Transport, energy and ICT security • contributed to the development of national strategies for the protection of critical Transport, energy and information and infrastructure services communication technology are essential to the effective functioning of our economy and society, • assessed and, where necessary, improved and to increasing the wealth of Victorians. Recent preparedness for incidents that threaten international terrorism events have prompted the critical infrastructure and response and Government to increase its focus on the management recovery capabilities of security risks and, in particular, the protection of critical infrastructure and the safety of the public. • led the development of the Council of Australian Governments (COAG) National In 2005–06, DOI strengthened and broadened its role Code of Practice for Closed Circuit Television as a developer and facilitator of security policy and for Mass Passenger Transport awareness. Engaging other agencies, departments, governments and industry, DOI advised on the • facilitated ongoing compliance by Victorian mitigation and management of terrorist incidents port and maritime service providers and offshore affecting transport, energy and ICT infrastructure. platform operators with the Commonwealth Maritime Transport and Offshore Facilities During the year, DOI: Security Act 2003.

• ensured that declared essential services within Public transport security transport and energy sectors under Part 6 The Government is taking action to protect people of the Terrorism (Community Protection) (TCP) and critical public transport infrastructure from Act 2003 complied with the Act’s requirements, security threats. In addition to the above measures, and recommended that additional transport security activities during 2005–06 specifi cally operators be declared to be subject to Part 6 targeted at the public transport sector included:

• contributed to a review leading to amendments • Project Trident — an ongoing program of of the TCP Act and educated declared essential emergency response training and exercises services about the amendments commenced, involving operators, and emergency and health services. A police inspector was • contributed to the development and seconded to DOI to develop the program. implementation of State counter-terrorism plans and arrangements, including for the • The ‘See Something, Say Something’ security 2006 Commonwealth Games awareness campaign was launched in September 2005 and refreshed in early 2006. The campaign encourages public transport passengers to report suspicious activity to public transport staff and Victoria Police.

Outcome 1 Public safety and security 32

• The Department contributed to national Commonwealth Games security leadership on transport security policy through The Commonwealth Games security effort was participation on the Standing Committee on a major focus for 2005–06. Detailed vulnerability Transport — Transport Security Working Group, assessments were undertaken for key railway including the implementation of initiatives from stations, tram stops and related public areas, and the COAG Special Meeting on Counter-Terrorism prioritised measures were carried out to mitigate in September 2005. public transport security risks.

• An expert-led review of security risk management Desktop and fi eld exercises were staged to test in Victoria’s transport industries was completed, and refi ne the readiness of emergency management the fi ndings of which provided the basis for systems to respond to emergencies, including DOI’s priority security upgrades for critical the major emergency response, ‘Exercise Dowling 6’, transport infrastructure. in the City Loop in December 2005.

• Coordination of security and emergency The Federal and State Governments participated management functions was expanded in the National Counter-Terrorism Committee’s through participation in portfolio and jurisdictional exercise, ‘Mercury 05’. The exercise whole-of-government crisis decision-making comprised a set of discussions and deployments forums, including participation in the State which culminated in a fi eld exercise on 17 October Crisis Centre and expanding DOI’s security 2005 and involved activating the State Crisis Centre. and emergency management staffi ng function. DOI’s Energy and Security Division consulted with the electricity operator for central Melbourne concerning the security of supply during the Games.

DOI ANNUAL REPORT 2005–06 33

Marine safety Boating fatality and injury research In May 2004, MSV engaged Monash University’s Recreational boating fatalities Accident Research Centre (MUARC) for a Four recreational boating fatalities occurred on three-year period to undertake a Marine Safety Victoria’s waterways during 2005–06. This is the Research Strategy that investigates a series of issues lowest number of recreational boating fatalities related to marine safety. The work program includes recorded in Victoria for the past 15 years. compiling annual marine incident and injury profi les, in addition to analysing boating injury and hospitalisation Despite there being a 30 per cent increase in the data. The evaluation reports have been developed and number of registered powered vessels in Victoria will be published and made available in late 2006. over the past 15 years, the average level of fatalities has been declining (refer Figures 6, 7 and 8). MUARC is also working on a study that investigates the causes of serious injuries arising from water-skiing This indicates that the boating safety measures — which is currently responsible for more than half introduced across the State have had a signifi cant of the reported serious injuries from recreational impact in reducing the number of boating fatalities boating — as well as conducting an observational in the recreational boating community. study into the wearing of personal fl otation devices.

Figure 6. Recreational Boating Fatalities in Victoria

18 17 16 16

14 14

12 12 11 11 11 11 10 10 10

8 88 Number 7 77 6 6

4 4

2

0 1989–90 1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–00 2000–01 2001–02 2002–03 2003–04 2004–05 2005–06 Financial year

Outcome 1 Public safety and security 34

Figure 7. Recreational Vessel Registration in Victoria

160,000 160,000

155,200

150,000 150,544 146,028 143,959

140,000 139,001

134,641 Number 130,668 130,000 129,274 129,302 126,717 128,407 128,016 125,695 124,626 120,000 119,049

110,000 107,406

100,000 1989–90 1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–00 2000–01 2001–02 2002–03 2003–04 2004–05 2005–06 Financial year

Figure 8. Recreational Boating Fatalities/100,000 Registered Vessels

18

16 15.83

14 13.44

12 11.23 10

8.68 8.51 8.57 8 8.34 7.73 Number 7.43 7.31 6 6.12 5.47 5.48 5.04 4.77 4.51 4

2.50 2

0 1989–90 1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–00 2000–01 2001–02 2002–03 2003–04 2004–05 2005–06 Financial year

DOI ANNUAL REPORT 2005–06 35

Marine and lifejacket regulations The offi cers’ roles include delivering lectures and New marine and lifejacket safety regulations were seminars on boating safety to boating and fi shing introduced in Victoria on 1 December 2005. clubs around the State on a regular basis. In 2005–06, 71 boating safety seminars were presented and 3,655 These new regulations were developed in response boating safety equipment audits were conducted. to numerous recommendations by the Victorian State The offi cers have played a pivotal role in educating Coroner. Their preparation involved an extensive boaters about the new life jacket regulations. consultation and review process with stakeholders and the public. The Personal Watercraft Courtesy Rider program was in operation for its seventh year over the boating The new regulations include: season, targeting popular jet-ski locations around the State. This program aims to reduce the number of • a requirement to wear a life jacket on powerboats incidents and complaints related to the use of jet-skis up to and including 4.8 metres while under way by encouraging safe and courteous behaviour. There were 638 audits undertaken on personal watercraft • a requirement to wear a life jacket on some during the year, compared to 384 in 2004–05. larger vessels at times of heightened risk (such as at night, boating alone and crossing Boating Safety and Facilities Program an ocean bar) The 2005–2006 Boating Safety and Facilities Program allocated $5.1 million in grants to improve • a new range of safety standards for life jackets boating safety and facilities across Victoria. providing boaters with a wider range of jackets Across the State, 71 groups received funding for 111 to choose from. projects which aim to make boating safer and more accessible for all Victorians. Boating safety programs

MSV’s Boating Safety Offi cers continued to provide The Government has continued to partner with boating safety education to recreational boaters local organisations and community groups to across the State through the Safe Boating Program. collaboratively fund the upgrade and development of boating infrastructure across the State. The The offi cers: grants program is funded through licensing fees and vessel registration. More than $21.5 million • provide Victoria’s recreational boaters has been allocated to recreational boating facilities with expert safety advice and safety initiatives since 2001–02. • conduct vessel and boat safety equipment checks Funding in the 2005–06 program was allocated to provide safety education and training, search • inspect waterway navigation aids and and rescue vessels, navigation aids and boating safety signage. safety signage, and to upgrade or build boat ramps and jetties. They continue to play a key role in providing an interface with the recreational boater at boating destinations across the State.

Outcome 1 Public safety and security 36

Completed infrastructure projects include the Energy safety installation of new boat ramps at Lake Eildon, Wood Wood on the Murray River, the Loddon River Energy Safe Victoria (ESV) is the safety regulator at Bridgewater, and the upgrade of Patterson River for electricity and gas in Victoria. It was established boat launching facility and Anthony’s Nose boat ramp in 2005, following the merger of the Offi ce of the at Dromana. Chief Electrical Inspector (OCEI) and the Offi ce of Gas Safety (OGS). ESV is responsible for: Other completed projects include: providing a vessel to the Hastings Yacht Club for use in its Sailability • developing and enforcing safety standards Program; upgrading navigation aids throughout Port • licensing tradespeople and auditing their work Phillip and Western Port bays; providing protective gear for Eildon Fire Brigade to undertake search and • certifying the safety and energy effi ciency rescue operations; purchasing six canoes, paddles of appliances and lifejackets for the 1st Newborough Scout Group; • conducting public education campaigns. and new outboard motors for Volunteer Marine Rescue, Mornington. During 2005–06, DOI:

Coastal navigational aids • maintained oversight accountability for MSV continued to manage the maintenance of critical ESV to ensure the regulator complied with coastal navigational aid infrastructure to ensure the statutory obligations and continued to meet safe navigation of vessels on Victoria’s coastal waters. Government objectives Remote monitoring on six isolated coastal navigational • developed the next steps in the merger of the aids was installed during 2005–06 to ensure the OCEI and the OGS, particularly the harmonisation proper operation of lights. of the two pieces of legislation that underpin ESV Marine oil pollution response • in conjunction with ESV, ensured that public and MSV manages the Victorian Pollution Contingency industry awareness of gas and electricity safety Plan (VicPlan), which outlines measures that must requirements was maintained and improved. be taken by participating agencies in the event of a marine pollution incident in Victorian waters.

MSV received 71 reports of marine pollution incidents during the year (eight less than in 2004–05), all of which were managed in accordance with VicPlan.

DOI ANNUAL REPORT 2005–06 37

Major priorities for 2006–07 Public transport safety

Road safety • The program to upgrade railway crossings in Melbourne and provincial Victoria will increase • VicRoads will continue to implement the Safer in 2006–07 with further funding under Meeting Roads Infastructure and Blackspot programs. Our Transport Challenges and the RFR program. A comprehensive survey of all railway crossings • Preparations will be completed for implementing in Victoria will provide the basis for prioritising the Graduated Licensing System in July 2007. which crossings will be upgraded and how.

• The Safer Vehicles Strategy will be updated, • An extra 30 authorised offi cers will support new with a major focus on working with other road late-night train services on Friday and Saturday safety partners, including the RACV and TAC, nights, and up to 26 additional staff will attend to communicate the benefi ts of new technologies premium stations. Increasing the number of in avoiding crashes. premium stations from 67 to 74 will commence in 2006–07.

• A new train vigilance system for the Comeng train fl eet will be deployed in the coming year. A new train vigilance system will also be trialled on Siemens and X’Trapolis trains.

• Replacement of the Metrol train control computer system will begin in 2006–07, and work will commence on the replacement of the existing metropolitan train radio system with a new digital system.

• The suite of programs designed to enhance DOI’s capacity to regulate public transport safety in Victoria will be further developed. DOI recognises the need for staff working in the new regulatory environment to be multi-skilled.

• A review of bus management maintenance systems (MMS) has commenced addressing changes in technology and safety requirements and will establish maintenance guidelines.

Outcome 1 Public safety and security 38

Security Marine safety

• DOI will develop and implement further outcomes • A robust and effective marine incident in preparedness and training in response to the investigations regime will be developed review of security risk management across the and introduced. land transport sector. • The 2006–07 Boating Safety and Facilities • Business continuity management planning will Program will fund recreational boating safety be undertaken within DOI and the Department and facilities projects across the State. will contribute to similar planning activities across Government. • The existing research framework will be expanded to encompass the development • Further counter-terrorism and public transport of policy, legislation and safety interventions security packages will be introduced by targeting and their effectiveness. asset-improvement programs, where appropriate, to provide security improvements. • The Port and Waterway Management governance arrangements on Port Phillip Bay will be extended • Approved security measures within public to cover waterways throughout Victoria. transport will be developed and implemented, and the National Code of Practice for CCTV Energy safety will be selectively applied. With Victoria’s recent record of strong safety outcomes, an ongoing priority is to maintain existing high standards and prevent complacency in the community on the major potential risks associated with electricity and gas usage in the home and in the workplace.

• Safety regulation will be strengthened to focus on reducing serious injury and property damage from the conveyance and use of energy. This will build on previous successes.

• In conjunction with ESV, DOI will ensure that public and industry awareness of gas and electricity safety requirements is maintained and improved.

DOI ANNUAL REPORT 2005–06 2 OUTCOME 2 INFRASTRUCTURE DELIVERY AND MANAGEMENT

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

DOI ANNUAL REPORT 2005–06 41 Outcome 2: Infastructure delivery and management

Growing Victoria Together vision

Thriving Economy Vibrant Democracy

Growing Victoria Together goals

Growing and linking all of Victoria More quality jobs and thriving, innovative industries across Victoria Sound fi nancial management

DOI output groups

ICT Policy and Programs Infrastructure Planning, Delivery and Management

DOI outputs

• eGovernment Infrastructure • Public Transport Infrastructure Development • Road System Management • Public Construction and Land Development

Delivering major infrastructure projects for Victoria on Together, these two major initiatives underpin the time, on budget and to the required scope and quality Growing Victoria Together vision and are helping to is a top priority for DOI. create new jobs, reduce business costs and open up new opportunities for all Victorians. They support Through Building One Victoria, launched in June the key planning and transport policy frameworks 2005, the Government is building economic and outlined in Melbourne 2030 and the Melbourne social infrastructure across the State to make Victoria Transport Plan. a more competitive and fairer society. The sheer scale of the Government’s forward The Government’s major transport statement infrastructure investment program, with the – Meeting Our Transport Challenges – released in combination of existing projects and those May 2006, outlines additional investment of $10.5 announced during 2005–06 under the Building One billion in transport infrastructure projects that will be Victoria and Meeting Our Transport Challenges delivered over the next 10 years. strategic investment programs, poses major challenges for DOI and its statutory bodies in the years ahead (refer to Figure 9).

Outcome 2 Infrastructure delivery and management 42

Figure 9. DOI Capital Expenditure $ Billion In its 2005–08 Corporate Plan, the Department (2002–03 to 2009–10) sets down key performance indicators (KPIs) for delivering a minimum of 80 per cent of specifi ed key 5 projects within +/- 10 per cent of agreed budget 4 and agreed time, and 90 per cent within +/- 10 per cent of agreed scope. The Corporate Plan also 3 lists expected completion dates for 47 projects,

2 including the Commonwealth Games Athletes’ Village, $ (billion) Craigieburn Bypass and the Southern Cross Station 1 Redevelopment, which were substantially completed

0 during the year. Most of the projects listed are not due last 4 years next 4 years for completion until 2006 and beyond.

Achievements during 2005–06 in delivering and Major Projects Victoria (MPV), a division of DOI, is managing major infrastructure projects are reported in responsible for planning and delivering a wide range the following pages. Further details about MPV projects of large projects, many of which come under the can be found at www.majorprojects.vic.gov.au auspices of other State Government client agencies. Transport infrastructure projects can be found at MPV advises the Government on complex property www.doi.vic.gov.au development and construction projects and is allocated projects with requirements that are beyond VicRoads, the Southern and Eastern Integrated the management capabilities of other agencies. Transport Authority (SEITA), Southern Cross Station MPV was responsible for overseeing the successful Authority (SCSA) and VicUrban contribute to this delivery of key Commonwealth Games infrastructure Outcome by delivering road projects and managing during the year. the State’s road network, delivering the Southern Cross Station, and managing urban development The Infrastructure Projects Division (IPD) is a projects, respectively. Highlights of their reports signifi cant delivery agent of DOI, responsible for the appear under this Outcome and more detail is development and delivery of major rail infrastructure provided in the Statutory Authorities section of projects within the Government’s policy framework of this report. Growing Victoria Together, which includes the Linking Victoria program.

Several selected infrastructure projects are being delivered in conjunction with the private sector, under the Government’s Partnerships Victoria (PV) policy. Recent PV projects include EastLink, Southern Cross Station and the Melbourne Showgrounds redevelopment.

DOI ANNUAL REPORT 2005–06 43

Key achievements Delivering infrastructure across Government Improving project planning and delivery Australian Synchrotron Projects of the size and complexity handled by DOI The Australian Synchrotron will be a major new take time to develop and deliver. During 2005–06, facility for pioneering scientifi c and industrial research. DOI revised and expanded guidelines defi ning the It will help scientists achieve better results faster documentation and evidentiary standards applied across the spectrum of research and design (R&D), to developing business cases for projects. The including biotechnology and drug design, medical guidelines also step-through the development and research and diagnosis, advanced manufacturing and review processes for major projects. DOI provides minerals technology. early expert assistance to project managers and developers, encourages peer review and has A synchrotron is a powerful machine that circulates implemented intensive training sessions to signifi cantly electrons travelling at nearly the speed of light. improve the quality of business cases to support It produces intense beams of light a million times effi cient project development and timely delivery. brighter than sunlight to probe the physical structure of materials down to the level of atoms and molecules. Consequently, major capital project proposals are more accurately scoped and costed and their risks During 2005–06, work on the Australian Synchrotron more credibly assessed and understood. This enables in Clayton continued, in line with plans to hand the DOI to establish realistic delivery schedules for projects facility over to the operator in April 2007. from the outset, and gives the Department a greater ability to marshal resources and coordinate delivery MPV is delivering the project on behalf of the client schedules aligned with the capacity of the construction agency, the Department of Innovation, Industry and market. The result is an increased likelihood that Regional Development (DIIRD). A nationally agreed suite projects are delivered on time and budget. of initial beamlines is being funded through Australia’s fi rst-ever partnership to create a major national platform In addition to improving project planning and for frontline research and development. Partners development processes, DOI has given equal attention include the Queensland, Western Australian, and to improving project delivery and has signifi cantly New Zealand governments and leading Australian increased its capital reporting capability. This has not universities and research organisations. only enhanced the regular reviews of fi nancial, risk and schedule data for individual projects, but also Milestones achieved include: DOI’s ability to map its infrastructure profi le over time and across the entire portfolio. Delivery performance • installation of, and substantial progress has also been supported by organisational change, toward commissioning, the injection system additional staffi ng and training and skills development. that produces the electron beams

• installation of, and substantial progress on commissioning, the booster synchrotron that accelerates the electron beams to almost the speed of light

Outcome 2 Infrastructure delivery and management 44

• installation of the storage ring, which produces The Stadium, located on the Edwin Flack Field, will the powerful synchrotron light that is captured be a landmark building situated in a parkland setting by beamlines and used for experiments adjacent to other world class facilities such as the Lexus Centre, Vodafone Arena, Melbourne Park • placement of orders for fi ve of the fi rst nine Function Centre and Rod Laver Arena. Its design will beamlines (the design of four more enable the seating capacity to be expanded to 25,000 is well advanced). seats as required.

Redeveloping the Austin and Mercy hospitals The Stadium will become the new home for As reported last year, MPV is responsible for delivering organisations like Melbourne Victory and Melbourne Victoria’s largest-ever hospital redevelopment project. Storm and will fi ll a missing link in Melbourne’s The relocation of hospital services into the new sporting infrastructure. buildings has allowed the upgrade of existing Austin The newly scoped stadium is expected to be Health building infrastructure to continue. Work is completed in 2009, with some elements potentially now underway to provide new theatres, day surgery being completed earlier. and recovery facilities, and to refurbish the existing central sterilising department. Work continues on the construction of the purpose-built, 55-bed mental health Royal Melbourne Showgrounds facility. This Health Services facility is being project The iconic Royal Melbourne Showgrounds is being managed by MPV as part of the overall redevelopment redeveloped in a joint venture arrangement between project and is scheduled to start admitting patients in the State and the Royal Agricultural Society of late 2006. Victoria (RASV).

The remaining components of the project continue This exciting redevelopment respects the traditions to be progressively planned and implemented, with and heritage of the Showgrounds, while incorporating overall completion scheduled for the end of 2007. new buildings that are in keeping with existing infrastructure and creating adaptable facilities for Melbourne Rectangular Stadium staging the Show and other events in the future. In April 2006, the Premier announced the construction Construction began in early 2005 and several of a spectacular new 20,000-seat international football facilities were completed for the 2005 Royal and rugby stadium, to be built in the Melbourne and Melbourne Show. At the end of 2005–06, the Olympic Park sports and entertainment precinct. heritage-listed Public Stand was under renovation and several new buildings were under construction, MPV is responsible for delivering this project in including the RASV’s new headquarters in the partnership with the Department for Victorian Town Square Pavilion, the Grand Pavilion and a Communities (DVC) and the Melbourne and major new exhibition space along Epsom Road. Olympic Parks Trust.

The new venue will be completed before the 2006 Royal Melbourne Show in September.

DOI ANNUAL REPORT 2005–06 45

Melbourne Convention Centre Princes Pier (Beacon Cove) In its April 2004 economic statement, Victoria: The Beacon Cove Stage 2 project at Princes Pier in Leading the Way, the Government announced plans Port Melbourne is now complete, with Mirvac fi nishing for a world class convention centre to be built beside all 99 apartments and nine beachfront townhouses. the existing Melbourne Exhibition Centre, on the banks of the Yarra River. The major highlight of the project has been the commissioning of the new beach at Beacon Cove, The major development will include a 5,000-seat between Princes Pier and the existing Sandridge convention centre, a fi ve-star Hilton hotel, an offi ce Beach. The new beachfront and promenade give the and residential tower, a riverfront retail promenade, project an important public realm contribution and a premium-brand homemaker retail complex and have been well received by the local community. a revitalised Maritime Museum. The last phase of the project is the restoration The Premier announced Multiplex/Plenary Consortium of Princes Pier, which represents an important link as the successful tenderer for the Convention Centre with Victoria’s wartime and immigration past. The contract in February 2006. The remaining development restoration of the pier will create a new community will be fi nanced privately as a component of the asset that will serve as a multipurpose waterfront public-private partnership under the Partnerships venue for community events and an accessible Victoria model. destination for recreational boating in an informal pedestrian waterfront precinct. This project will provide Melbourne with the largest convention and exhibition precinct in the southern It is proposed to restore a major section of the hemisphere. The Convention Centre is also the world’s pier and retain reference to the entire 580 metre fi rst six-star rated convention centre. long structure by retaining the piles as a sculptural centrepiece. The partial demolition and restoration Financial close was achieved on 24 May 2006 and of the deck is due to commence once approval construction work began in early June. The formal is received from Heritage Victoria. All works are commencement of on-site works was acknowledged expected to be completed in early 2008. at a ceremony in June involving the Premier, the Lord Mayor of the City of Melbourne, and the Minister Restoration of the pier will complement the new for Tourism. developments at Beacon Cove, which include the new beach, cafés, fi ve-star restaurants, a medical The new Convention Centre is set to open for centre, gymnasium, light rail direct to the city and business in 2009. Six major international conventions a central port for cruise ships and passenger ferries. have already been secured, bringing a total of more than 14,000 delegates to Melbourne and providing economic benefi ts valued at over $80 million for the Victorian economy.

Outcome 2 Infrastructure delivery and management PROFESSOR ROB LEWIS 46

Director, Monash Centre for Synchrotron Science

State Library of Victoria redevelopment The Australian Synchrotron development is one of the best projects of this nature that Restoration of the State Library of Victoria building I have ever been involved with. entered its sixth stage with the letting of a construction management contract to Hansen Yuncken Pty Ltd in I worked at the synchrotron in Britain and January 2005. It is expected that principal construction moved to Melbourne in 2002 to work at will be completed by December 2006. Monash University and assist in the scientifi c side of developing the Australian Synchrotron. The fi rst component of the current project — the café I’ve been working closely with the delivery team and bookshop space — opened to the public in May from Major Projects Victoria (MPV). 2006. The second element of Stage 6, consisting of Swinburne Levels 4 and 5 and the Pendulum Staircase, This project has been characterised by a was handed over to Library management in June 2006. great deal of cooperation and unanimity of purpose, which is unusual because you usually The project architects, Ancher Mortlock and Wooly, end up with turf wars between the different have been awarded the Lachlan Macquarie award stakeholders pursuing their own interests. for Heritage Buildings by the Royal Australian Institute of Architects, in recognition of the design excellence Working with the people from MPV has been a demonstrated in the redevelopment of such an iconic very positive experience. Scientists usually want Melbourne building. to drive these projects, but now I can see there is a major leadership role for a dedicated project The State Library of Victoria is listed as one of manager in large scientifi c projects like this. the world’s 1,000 most signifi cant buildings of the MPV’s project manager for the Synchrotron is twentieth century, owing to its early use of reinforced fl exible, but doesn’t get distracted by scientists concrete technologies. constantly changing their minds, and, as a result, we stay on track. Former Fish Market Site/Flinders Street overpass The Synchrotron project was only announced in The Flinders Street overpass — an eyesore in 2001 and here we are in 2006 and we’ve almost Melbourne’s CBD for many years — has been got it working. For a project of this scale to have removed to create a new intersection at Flinders happened in that timeframe is incredible. and King Streets. This project was completed in December 2005. I think it’s got a lot to do with the ‘can-do’ attitude I’ve noticed in Australia. I have struck problems The Government’s commitment to removing the that would have stymied us in England, but here overpass was the fi rst stage in the redevelopment we have just breezed through them. of the North Bank Precinct. With the overpass removed and an active frontage to Flinders Street I’m still in a state of shock about it, to the extent created, the redevelopment of the former fi sh market that I became an Australian citizen earlier this site can now proceed. The redevelopment includes year on the basis of my experience working 2 a 2,500m extension of the existing Melbourne on this project. It’s been so good that I want Aquarium and a ‘mixed-use’ commercial and retail to stay in this country. And my citizenship development of the old fi sh market site between Kings ceremony was in a pub — that could only Way and Spencer Street. Work on the extension of the happen in Australia! Melbourne Aquarium commenced in April 2006, as substantial services and trunk infrastructure needed to be relocated. The operators of the Melbourne

DOI ANNUAL REPORT 2005–06 47

Aquarium are aiming to have the extended Aquarium Managing industrial waste open in time for the 2007 Christmas holiday period. Disposing of industrial wastes in landfi ll is an unsustainable practice. In accordance with the The Government and the City of Melbourne have Government’s Industrial Waste Management Policy, been working in close partnership on this project. MPV has been managing the establishment of new world-class prescribed industrial waste facilities, Melbourne Recital Centre and MTC Theatre including a soil recycling facility and a long-term The Melbourne Recital Centre and Melbourne Theatre containment facility. Company (MTC) Theatre project includes the creation of four new arts spaces: The process of selecting suitable sites for such facilities has been complex and sensitive, and • the 1,000-seat Dame Elisabeth Murdoch Hall, requires signifi cant consultation with key a world class recital hall for chamber music stakeholders, including the Department of Sustainability and Environment (DSE) and the • a 150-seat salon for more intimate Environment Protection Authority (EPA). musical performances

• a 500-seat theatre for the Melbourne Theatre Soil recycling Company (MTC) Gippsland Water was chosen from a number of proponents as the preferred provider to establish • a rehearsal studio and home-base for the MTC. a world’s best practice soil recycling and treatment This new infrastructure will further enrich Melbourne’s facility at Dutson Downs. reputation as Australia’s arts and cultural capital. The facility will use a range of recycling and treatment The development will comprise two buildings, technologies to process soils from a variety of sites, which will be co-located on the one site. However, including petrol stations, former gasworks and each venue will have its own distinct identity. They industrial sites. It will be built in stages, depending on will be built adjacent to the Victorian College of the market demand. Construction of Stage 1, which is Arts on the block bound by Dodds Street, Southbank capable of treating contaminated soils, will commence Boulevard and Sturt Street in Southbank. later in 2006.

Bovis Lend Lease was appointed as the head Gippsland Water will subsequently lodge applications contractor to construct the new recital centre and with the EPA for Stages 2 and 3. These stages will theatre. Construction of the two venues, designed provide a wider range of treatment options that can by Melbourne architects, Ashton Raggatt McDougall, be introduced according to the needs of the land commenced in mid-2006, with the venues due to development industry. open for business in 2009.

Outcome 2 Infrastructure delivery and management 48

Long-term containment Melbourne Wholesale Markets Social, economic and environmental assessments When Melbourne’s current Wholesale Fruit and are continuing into the potential impact of establishing Vegetable Markets were built in Footscray in 1969, Victoria’s fi rst industrial waste containment facility only a few hundred businesses operated at the at Nowingi in the State’s north-west. The site is on site. The markets are now home to 2,700 registered unreserved Crown land between Ouyen and Mildura business users, employing around 7,000 people, and has large in-built buffers. and space is at a premium.

Once operating, the containment facility will safely The Premier announced in May 2005 that the store solid prescribed industrial wastes that cannot markets would move from Footscray to Epping otherwise be avoided, reused or recycled. Known in 2010. The relocation will free up strategically as Category B prescribed industrial wastes, these important land within the Port of Melbourne precinct substances are created during the manufacture to accommodate new freight and transport facilities. of everyday products such as cars, clothing, whitegoods, plastics, paints and farm chemicals. While this project is being managed directly by the Department of Primary Industries (DPI), MPV An Environment Effects Statement (EES) was played a major role in the Epping site acquisition, exhibited in late 2005 and 1,750 submissions were planning scheme amendment development and received from the public. The EES documented tender development. This is in preparation for in detail the potential environmental, social and MPV’s role as development manager following economic impacts of the proposal. fi nancial close of the project.

In February 2006, the Minister for Planning appointed The site acquisition process has commenced an independent panel to review the EES and the and the State is in possession of the Epping site. submissions and to make recommendations on The planning scheme amendment preparation the suitability of developing a long-term containment is well underway and is expected to be approved facility at the Nowingi site. The panel report will be within project timelines. The relocation will be provided to the Government in late 2006. undertaken using the Partnerships Victoria model.

Before the development can proceed, the facility must meet EPA requirements.

DOI ANNUAL REPORT 2005–06 49

Kew Residential Services redevelopment Now that the Games are over, the Village is being The Government announced the redevelopment converted into a long-term residential project, forming of the former Kew Cottages site in May 2001. a new inner-city suburb called Parkville Gardens. This Since 2005, the project has been transferred to new urban precinct will ultimately comprise a mix of MPV to provide project management services to the social and private housing an aged care precinct and Minister for Community Services. This major disability community infastructure, including a child care facility, services project has already delivered its off site community centre and playground. It will feature component of 73 houses that were proposed for over 1,000 new dwellings of which 200 will be social 360 former residents of Kew Residential Services housing, when it is complete in 2011. The development into the wider community. A further 20 houses will will also include an additional 2.5 hectares of parkland. be built on the site for 100 residents with intellectual The fi rst part of this work is stripping out all the disabilities as part of the on-site redevelopment. temporary structures used for the Games and refi tting The development plan for the site was submitted the houses and apartments for their new owners. in June 2005. MPV facilitated extensive consultation New residents started moving into the Village in with Boroondara Council and the local community September 2006. The second part of the project is on the development plan, which was approved by the construction of a wall of medium-rise apartments the Minister for Planning in March 2006. Construction along the City Link freeway. Social infrastructure for of the new houses for residents remaining on site the development will also be established, including an has commenced. aged care facility, a child care centre, public transport access, and a playground. The on-site redevelopment is a six-year project and is expected to be completed by 2012. A range of environmental features are also being commissioned and are aimed at substantially reducing Commonwealth Games infrastructure power and water consumption. Commissioning commenced in July 2006 and will occur progressively Major Projects Victoria managed the design, through the Village up to April 2007. The Village documentation, tendering and construction Wetlands, an important environmental feature, was processes of three Commonwealth Games opened to the public in June 2006. projects on behalf of DVC. Melbourne Sports and Aquatic Centre Stage 2 Athletes’ Village The Stage 2 development of the Melbourne Sports Construction of the Melbourne 2006 Commonwealth and Aquatic Centre (MSAC) was offi cially opened by Games Athletes’ Village was completed in January the Premier in December 2005 in preparation for the 2006, more than six weeks before the Games. Commonwealth Games.

The Village is a low-rise, medium-density The new facility was an outstanding success for the State development located on a 20-hectare site in Parkville. Swimming Championships and the Australian Swimming It was home to about 5,800 athletes and offi cials from Trials in January and February, as well as for the 71 nations during the Games period. The Athletes’ Commonwealth Games in March. It immediately attracted Village was a tremendous success and feedback from headlines proclaiming it as a ‘fast pool’ when records athletes during the Games was very positive. John were shattered soon after the opening of the new venue. Devitt, Chef de Mission of the Australian Commonwealth Games team reported: “It’s the best village the Australian team has ever stayed in”.

Outcome 2 Infrastructure delivery and management 50

The Stage 2 development has created a new Public transport infrastructure 50-metre outdoor competition pool with a permanent 3,000-seat grandstand (an extra 7,000 temporary Southern Cross Station seats were installed for the Games), additional offi ce Southern Cross Station was substantially completed space for sporting associations (Sports House), before the Melbourne 2006 Commonwealth Games, with which will also house the Melbourne School of Sport the delivery of platform upgrades, passenger concourses, and Recreation Management, an additional pool for glass facades, unique POD offi ce accommodation hydrotherapy, a multi-storey car park and additional and the relocation of the coach terminal, as well as the change rooms and ancillary facilities. architectural highlight of the Station’s wave roof.

It also provides a legacy for future generations who Working in partnership with private consortium Civic can swim in the same pool where Australia’s women’s Nexus, the Southern Cross Station Authority was able swimming squad secured their biggest ever medal to rapidly develop the world-class transport interchange tally in the history of the Commonwealth Games. to revitalise the west end of Melbourne’s CBD.

The offi cial public opening of the Stage 2 development Formerly known as ‘Spencer Street Station’, the by the State Sport Centre’s Trust was held in July interchange was renamed in December 2005 and 2006. MSAC will also be used for water polo at the became known as Southern Cross Station, to coincide FINA World Swimming Championships in March 2007. with the unveiling of the massive 30-metre-long grand entrance on Spencer Street. William Barak Bridge The new William Barak Bridge was delivered by Since the Games, the Authority has worked closely MPV in preparation for the Commonwealth Games. with Civic Nexus and Melbourne City Council to The bridge was opened to the public by the Premier develop the perimeter of the station with taxi ranks, on 23 December 2005. ‘kiss and ride’ car parking spaces, loading zones and parking for people with disabilities. A new platform The bridge was a signifi cant feature in the marathon tram stop on Spencer Street was also completed during the Games, hosting part of the last leg of the as part of the Government’s Think Tram initiative, to men’s and women’s events. It was also heavily used improve safety and reliability. during the Games by people attending events at the Melbourne Cricket Ground and other venues in the The Station has set the standard in modern design, sports and entertainment precinct, and was a key link passenger information technology, Disability to the cultural events program in Birrarung Marr. Discrimination Act 1992 (DDA) station access, security systems and public address systems. Most importantly, on a local level, passengers are enjoying the benefi ts of this world-class transport hub.

DOI ANNUAL REPORT 2005–06 51

The fi nal phase of the Southern Cross Station Dandenong Rail Corridor project will involve the development of commercial With rail and feeder bus services near capacity components, including retail and food outlets and the in the Dandenong Rail Corridor, and continuing new offi ce accommodation at 664 Collins Street. urban development in Melbourne’s south-east, the Government is planning to expand the rail corridor’s Further details can be found in the SCSA report in the capacity to meet patronage demand. A third rail track Statutory Authorities section of this publication. is to be constructed between Caulfi eld and Springvale as a fi rst stage of the project. The precise scope of Rail infrastructure projects the project is currently being developed.

Craigieburn Rail Project During 2005–06, technical investigations and Craigieburn is an area experiencing rapid and consultations supported project defi nition and extensive urban growth, and the provision of development. The project team engaged technical quality public transport to the area is a priority specialists to assist in defi ning the project, including for the Government. preliminary design work and service planning.

The project to extend electrifi ed metropolitan train Following design and defi nition, tenders for the services from Broadmeadows to Craigieburn is well fi rst phase of works will be invited during 2007–08, under way. In addition to frequent electrifi ed services with works expected to commence on the section from the Craigieburn growth area to Melbourne’s between Caulfi eld and Springvale in 2008–09. CBD, the Craigieburn Rail Project will provide a new railway station at Roxburgh Park and will upgrade the Flinders Street Station existing station at Craigieburn to a premium station. The Government and Connex are working to ensure the long-term future of Victoria’s well-known During 2005–06, a trunk communications cabling Flinders Street Station through a number of capital project cleared the way for the realignment of the works projects. existing broad gauge rail track, the installation of new overhead traction and signalling systems and Preliminary infrastructure works — part of a construction of the stations. $15.5 million rehabilitation of the station’s concourse — began in November 2004. The main works to In January 2006, Thiess and Westinghouse Rail address the deterioration of steel work and concrete Systems Australia were announced as the contractors arch slabs below the station’s deck commenced for the main works and signalling works, respectively. in January 2005 and were completed in December Thiess commenced construction work along the 2005, two months ahead of schedule and $2 million 10-kilometre project site and Westinghouse started under budget. detailed design of the signalling works in January 2006. Train travellers have been observing progress of the works along the track and at the Craigieburn and Roxburgh Park stations.

The new metropolitan services will commence in the second half of 2007.

Outcome 2 Infrastructure delivery and management 52

Works under an additional $10.6 million renewal Works completed at East Richmond Station in package were partially complete at the end December 2005 included: of 2005–06: • repainting the station, including the pedestrian • Refurbishment of platforms 10, 12 and 13, underpass and platforms including new escalators and a lift, was • installing tactile ground surface indicators and completed on schedule in March 2006. non-slip surfaces on access ramps

• Cleaning of the exterior façade of the building • minor repairs and resurfacing. was completed in March 2006. At the end of 2005–06, similar works were under • Repair and waterproofi ng of the station’s way at the following stations: Carnegie, East Malvern, administrative building roof has commenced. Eltham, Essendon, Highett, Huntingdale, Laverton, Newport and Werribee. • Repair of existing damage in the subways due to water leakage, prevention of further damage The other stations to be refurbished are: Collingwood, and preservation of the heritage-classifi ed wall Epping, Glen Waverley, Hartwell, Mount Waverley, tiles has commenced. North Richmond, Ringwood and South Kensington.

Station Refurbishment Program EastLink Project — station upgrades Nineteen railway stations are being refurbished as As part of the EastLink Project, $20 million has been part of a $10 million program to revitalise key stations allocated to upgrade Dandenong, Heatherdale, across the metropolitan system. The program will be Kananook and Noble Park railway stations to provide completed by October 2006. an integrated road and public transport solution in the Mitcham to Frankston corridor. The upgrades include: Richmond Station received a facelift in time for the Commonwealth Games, with $1.25 million • improved lighting and station security in works completed by Connex in March 2006. • refurbished station buildings Improvements included: • easier and safer pedestrian access • repainting the station, including platforms, • more car parking entrance areas, thoroughfares and underpasses • improved passenger information services • painting murals along the Brunton Avenue and Stewart Street entrances • new signs.

• tile and ramp cleaning Detailed planning and design of the upgrade works • installing non-slip surfaces on stairs has been fi nalised and construction contracts will be awarded by the end of 2006. Increased public • minor repairs and resurfacing. transport patronage and improved accessibility are expected as a result of the upgrades, which are scheduled for completion by mid-2008.

DOI ANNUAL REPORT 2005–06 53

Regional rail renewal and construction works are in progress throughout In 2005–06, the Government, together with Pacifi c the entire 39 kilometres of new road, which extends National — the leaseholder of Victoria’s intrastate between the Eastern Freeway at Donvale and the rail network — undertook $60 million worth of works Mornington Peninsula and Frankston freeways on the country passenger rail network. The upgrade at Seaford. Earthworks have commenced on the included sleeper replacement, bridge reconstruction Ringwood and Dandenong Bypasses. and the renewal of signalling equipment. Tunnel excavation proceeded effi ciently during This followed the signifi cant investment already 2005–06, with TJH using specially imported road provided by the Government for the RFR project, headers or the traditional drill and blast technique, which upgraded 500 kilometres (22 per cent) of the and a breakthrough is expected well before December 1,700 kilometres of track comprising the regional 2006. Earthworks have reached 60 per cent passenger network. completion, and in several areas asphalt pavement works have commenced. Several bridges are A full report on the RFR project is provided in complete and in use and another 57 are presently Outcome 5: Rural and regional development. underway in the largest bridge building program ever undertaken in Victoria.

Road infrastructure The high quality architecture and urban design which will be a feature of EastLink is already visible EastLink Project on the noise walls and the retaining walls near the EastLink is one of the most exciting and challenging overpasses of key arterial roads. Development of road infrastructure projects in Victoria’s history. the tolling system is being undertaken by the It is the largest single urban road project yet Spanish fi rm, SICE, with resources deployed in undertaken in Australia, and is currently the most both Madrid and Melbourne. Trials will commence signifi cant Public Private Partnership (PPP) in the in Madrid during 2006–07. nation, involving a capital expenditure of $2.5 billion. The EastLink Operations Centre beside the EastLink is being managed by SEITA. The project is Maroondah Highway at Ringwood is starting to on target for completion in 2008. take shape and should be ready for occupation by ConnectEast in early 2007. SEITA’s display The design and construct contractor, Thiess John centre in the Brandon Park Business Park has Holland (TJH), engaged by the Concessionaire, proven successful, hosting many visitors, including ConnectEast, has recruited extensively and community groups. The display has enabled the established a highly capable workforce of more than public to gain an increased level of understanding 2,200 people. Design is now well advanced of the works and the public private partnership delivery achievements.

Outcome 2 Infrastructure delivery and management JACKIE BARRY 54

Project Director, Major Projects Victoria, Royal Melbourne Showgrounds Other major road projects Redevelopment VicRoads continued to plan and deliver major I’ve been working on the redevelopment of improvements to the State’s road network during the Royal Melbourne Showgrounds for the 2005–06, including opening the $305 million past two years since moving back from London. Craigieburn Bypass in December 2005. Signifi cant I started as commercial manager and now I’m progress was made on the Deer Park, Pakenham the project director. and Geelong bypasses; duplicating the Goulburn Valley Highway through Arcadia; and upgrading Working on the Showgrounds redevelopment the Tullamarine-Calder Interchange, the Calder has been a wonderful way for me to re-settle Freeway and the Hume Freeway. myself into Melbourne life. I really enjoy being involved in the changing face of the city. In addition to the major Victorian road links above, VicRoads completed seven and progressed 18 outer The Showgrounds are such an iconic part of metropolitan road projects and completed 43 and Melbourne and the new facility is so different progressed 23 regional road development projects. from the old. The design solution, which combines old buildings with new and creates The Government has announced a $1 billion package lots of open, green spaces, really works and for the Monash-West Gate corridor to maintain it as an effi cient route across Melbourne. A needs assessment will support the Show’s growth for another of Melbourne’s east-west corridor is timed to start 150 years. A highlight for me has been to see in late 2006, to develop options to address future heritage buildings like Centenary Hall and the transport demand. Public Grand Stand refurbished and restored.

Further details about VicRoads’ 2005–06 Being a joint venture between the Government achievements can be found in their report in the and the Royal Agricultural Society adds a Statutory Authorities section of this publication. different dimension to the project. This project For a full report, refer to VicRoads 2005–06 is having a huge impact on the Society, so Annual Report which is available on its website successful delivery is also about bringing www.vicroads.vic.gov.au them along with you and achieving the change together. That’s been the biggest challenge — keeping everyone working together.

The project has such a diverse range of requirements, that many different specialists have had to come together to help make this happen. The teamwork has been fantastic.

Seeing all the plans and maps actually turn into buildings and form the revitalised Showgrounds has been an amazing and very positive experience. I am very much a city person, and I think the Royal Melbourne Show will continue to be important for Victorians because it helps bring the country to the city.

DOI ANNUAL REPORT 2005–06 55

ICT infrastructure Telstra, as the Government’s broadband supplier, is upgrading over 600 exchanges across the state Telecommunications Purchasing to service Government’s needs. This is resulting in and Management Strategy (TPAMS) around 150 towns being able to access business TPAMS was established to provide a strategic grade broadband services for the very fi rst time, framework for the procurement and management 20 towns being able to access ADSL services for the of telecommunications services across the whole fi rst time and mobile broadband services being made of the Victorian Government that would: available in Bendigo and Seymour.

• improve Government’s telecommunications Optus, the Government’s fi xed voice supplier, is purchasing power also investing in broadband infrastructure to service Government’s needs and has already provided • foster competition competitive broadband services to more than 40 • improve the telecommunications connectivity towns as part of the TPAMS contract. of Government For further information, see • facilitate new telecommunications infrastructure, www.mmv.vic.gov.au/TPAMS especially in regional Victoria.

During 2005–06, TPAMS focused on fi nalising service Rosetta transition and considerable effort also went into managing ongoing supplier performance and forward The implementation of Project Rosetta continued planning. To date, TPAMS has migrated approximately during 2005–06, to provide the Government with 78,000 voice, mobile, data and managed telephony a secure, fl exible, electronic directory service. services to new contracts under the Government’s Rosetta delivers a synchronised whole-of-Victorian- improved telecommunications purchasing Government (WoVG) directory infrastructure to each arrangements. This represents 99.3 per cent of department. All departments implemented their all services planned for transition. enterprise level directory during the year.

This major initiative has enabled the Government to aggregate its telecommunications spend and use its purchasing power to negotiate a better deal for Government. It has also resulted in spin-off benefi ts of almost $200 million worth of telecommunications infrastructure investment into Victoria.

As a result, more than 3,300 government offi ces are being provided with high speed broadband access, including 1,600 Victorian schools which are being provided with fi bre optic broadband. (Refer to adjacent maps.)

Outcome 2 Infrastructure delivery and management

57

Major priorities for 2006–07 Public transport infrastructure

Delivering infrastructure • Work on the Craigieburn Rail Project will across Government continue, with the fi rst metropoliton services due to commence in the second half of 2007. • The Australian Synchrotron is scheduled to open in the fi rst half of 2007. • Design and planning work will continue on a number of major rail capacity projects under • Construction of the new 55-bed Austin Mental Meeting Our Transport Challenges, on Health Facility is anticipated to be completed by the Dandenong line between Caulfi eld and late 2006. The overall Austin Redevelopment and Springvale, on the Hurstbridge line between Mercy Hospital project is due for completion by Clifton Hill and Westgarth, and on the Sydenham the end of 2007. line between Sunshine and West Footscray.

• A builder for the Melbourne Rectangular Stadium • Timetable adjustments will provide extra morning will be selected by the end of 2006. Construction peak and shoulder peak services on the is anticipated to commence in early 2007. Broadmeadows, Dandenong, Sydenham and Werribee lines, and extra evening shoulder peak • The Melbourne Convention Centre Development services on the Dandenong and Sydenham lines. project commenced construction in June 2006, with the fi rst conferences to be held in the new • A new 2007 timetable will be developed, facility in 2009. enabling extra services to be added in peak periods. This will be made possible by minor • Construction of the Melbourne Recital Centre infrastructure works. and Melbourne Theatre Company project commenced in July 2006 and is targeted to be • North Melbourne Railway Station will be upgraded open for business in 2009. to cater for the anticipated increase in passengers and improve amenity to support this strategic hub for passengers, with works expected to begin in the second half of 2006–07.

• Construction contracts for the $20 million upgrade of Dandenong, Heatherdale, Kananook and Noble Park railway stations are expected to be awarded by the end of 2006. The upgrades are scheduled for completion by mid-2008 as part of the EastLink Project.

Outcome 2 Infrastructure delivery and management 58

• The $10 million Station Refurbishment Program • Upgrades to Victoria’s regional roads will will be completed by October 2006, with continue, including the Bass Highway duplication, Collingwood, Epping, Glen Waverley, Hartwell, Midland Highway widening, Princes Highway Mount Waverley, North Richmond, Ringwood East realignment and South Gippsland and South Kensington stations joining the Highway realignment. 11 stations at which works are already complete or under way. • Design work will begin for strengthening the West Gate Bridge. • The Director of Public Transport will be made a Referral Authority under the Planning and ICT infrastructure Environment Act 1987, so that major land use development proposals can be appropriately TPAMS considered and planned in terms of public As part of TPAMS, the Chief Technology Offi ce transport provision. This provides a signifi cant (CTO) will fi nish implementing the remaining TPAMS opportunity to improve public transport outcomes, data services sites. The CTO will also concentrate better integrate land use and transport planning, on delivering additional and previously unplanned and further the objectives of Melbourne 2030. The benefi ts of between $3 million and $5 million over proposal will be implemented by an amendment to three years by rationalising some departmental all Victorian Planning Schemes. telecommunication services and procuring lower cost internet services for all government departments. Roads infrastructure

• Work on the Eastlink Project will continue, including tunnellling, earthworks, bridge building, and trials of the new tolling system.

• VicRoads will continue the delivery of major infrastructure projects including the Monash-West Gate improvement package; Deer Park, Pakenham and Geelong bypasses; duplicating the Goulburn Valley Highway through Arcadia; and upgrading the Tullamarine-Calder Interchange, Calder Freeway and the Hume Freeway at Albury-Wodonga.

• Better connections for Melbourne’s growing suburbs will continue to be developed through road improvements under the Outer Metropolitan Arterial Road Program.

DOI ANNUAL REPORT 2005–06 3 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.

DOI ANNUAL REPORT 2005–06 61 Outcome 3: Access and mobility

Growing Victoria Together vision Thriving Economy

Growing Victoria Together goals

Growing and linking all of Victoria More quality jobs and thriving, innovative industries across Victoria

DOI output groups

Public Transport Services Infrastructure Planning, Delivery and Management

DOI outputs

• Integrated Metropolitan Public Transport Services • Rural and Regional Public Transport Services • Specialist Transport Services • Integrated Transport Planning and Policy • Public Transport Infrastructure Development • Road System Management • Traffi c and Transport Management

A reliable and accessible transport network is essential This Outcome reports on the overall performance for sustaining Victoria’s and Melbourne’s high standard of the public transport system; initiatives that were of liveability into the future. These transport links are implemented to improve access to, and the reliability also vital for supporting economic development and of, trains, trams and buses; improvements in the taxi maintaining the State’s competitiveness. industry; and initiatives designed to improve transport access for people with disabilities. Strong economic growth, combined with an expected population increase of around one million in the next VicRoads makes a signifi cant contribution to this 25 years, means the Government needs to encourage Outcome by continuing to develop and manage the more effi cient use of Victoria’s core transport State’s road network. VicRoads’ key achievements for infrastructure, while addressing the pressures generated 2005–06 are summarised in the Statutory Authorities by more traffi c and growing demand for travel. section in this report. More detail about its activities is available in VicRoads’ 2005–06 Annual Report or at www.vicroads.gov.au

Outcome 3 Access and mobility 62

Some projects reported under this outcome were Rapidly growing patronage is contributing positively under way during 2005–06 as part of the $5 billion towards the Government’s Growing Victoria Together Linking Victoria program which, until the launch of target of 20 per cent of metropolitan motorised trips the $10.5 billion Meeting Our Transport Challenges being taken on public transport by 2020. long-term plan in May 2006, had been the biggest transport program in Victoria’s history. Major infrastructure upgrade projects, such as the RFR Project, the EastLink Project and the Meeting Our Transport Challenges outlines a development of Southern Cross Station, will program of investment in transport infrastructure and substantially improve the access and mobility services that will shape Victoria’s transport system of Victorians living in and outside the metropolitan into the future. Specifi c commitments in Meeting area. These projects are reported in other sections Our Transport Challenges will commence in 2006–07 of this report (RFR — Outcome 5, EastLink and and be reported in next year’s annual report. Southern Cross Station — Outcome 2).

Actions outlined in Meeting Our Transport Challenges build on the direction, strategies and priorities provided in the Linking Melbourne: Metropolitan Transport Plan (MTP), which was released in November 2004. These core policy frameworks and action plans lay the foundations for ensuring that public transport continues to meet the changing needs of Victorians. They will contribute to continuing the growth in public transport patronage.

During 2005–06, overall public transport patronage in Victoria grew by 4.9 per cent (not including the additional volumes carried during the Commonwealth Games). Patronage on metropolitan trains, in particular, rose by 9.4 per cent during 2005–06.

Improving patronage for, and the reliability and punctuality of trains, trams and buses continues to be a major priority for DOI, in partnership with public transport operators Connex, Yarra Trams, bus companies and V/Line Passenger, and with VicRoads in managing the State’s road network.

DOI ANNUAL REPORT 2005–06 63

Key achievements information campaigns playing a key role in altering travel patterns. There were also signifi cantly reduced Initiatives specifi cally aimed at improving access traffi c volumes along key routes within Games and mobility for people living in country Victoria precincts, particularly Swan Street (around are reported under Outcome 5: Rural and 30 per cent reduction), providing a high level of Regional Development. service for Games needs. Positive reports from the media and the community about the lack of Public transport traffi c congestion during the Games contrasted with negative commentary anticipating poor traffi c Commonwealth Games conditions before the Games. The staging of the Melbourne 2006 Commonwealth Games in March required tremendous cooperation Public transport carried the bulk of the spectator on the part of DOI, transport providers and Games traffi c associated with the Games, with mode organisers to manage complex Games-time transport share to the inner Games venues reported at and traffi c requirements and meet the demand between 70 and 80 per cent. Over the 12 days of generated by huge crowds attending sporting events the Games, Victoria’s public transport services carried and other Games-related activities. an additional 1.8 million people (around 150,000 people each day) to Games events. This represents Traffi c volumes in inner Melbourne were on average around four million additional trips on public transport fi ve per cent lower than normal, but with signifi cant for the duration of the Games (refer Figure 10). Around variation between routes and times of day. This 90 per cent of people surveyed by Metlink rated reduction was due only in part to the school holidays, public transport to the events as ‘good’ or ‘excellent’ with effective Commonwealth Games community — a measure of the outstanding success of the

Figure 10. Total public transport passengers during the Commonwealth Games period

750,000

Additional Commonwealth Games public transport passengers

500,000 Passengers

250,000

Normal levels of public transport passengers

0 Fri 17 Fri 24 Sat 18 Sat 25 Tue 21 Tue Thu 16 Thu 23 Sun 19 Sun 26 Mon 20 Wed 15 Wed Wed 22 Wed

Date (March 2006)

Outcome 3 Access and mobility TRACEY GALEA 64

Business Manager, Business Financial and Advisory Branch, Corporate Resources Division and DOI collaborative effort to plan and operate Games-time Commonwealth Games volunteer public transport services. I wanted to really live the whole Commonwealth Victoria’s 856,000 Seniors Card holders were offered Games experience, so I left behind my desk job free public transport in the lead-up to the Games. and volunteered every day. I was mostly based This involved providing Seniors Card holders with in Fairfi eld, helping with transport to the Lawn eight days of free travel on metropolitan trams, trains Bowls Centre. and buses, and on local regional bus services, from 5 to 12 March 2006, as well as fi ve days of free We would start at 7.00am to meet the early regional travel on V/Line services. risers and work through until around 4.00pm, or I’d work the night shift from 2.00pm to The State Government provided all Commonwealth 11.00pm. We were moving up to 4,000 people Games ticket holders with free travel on metropolitan a day between trains and buses. From one train public transport services on the date of the you could easily fi ll up six buses with people, event shown on their Games ticket. Furthermore, so at times you had hundreds of people waiting, in partnership with V/Line, discounted V/Line fares and our job was to keep them happy. It was were provided to Games ticket holders. This meant very hot and many of them were elderly or that regional Victorians paid no more than $10 to get with small children. I was on my feet and talking to and from Melbourne for their event. The discount for 95 per cent of the time, so it was also was available for travel on the day of, or the day physically exhausting. before or after the event (or series of events), to cater for people staying overnight. When I had the megaphone I would do a bit of stand-up comedy, which is usually not my Commonwealth Games volunteers, and employees forte, but it just came naturally at the time. of the Melbourne 2006 Commonwealth Games People’s gratitude for our friendly customer Corporation and OCGC were also provided with free service was overwhelming and it was a little public transport in March 2006 to support their work embarrassing at times that they were so thankful for the Games. and appreciative; that sort of thing just doesn’t happen very often in your life. During the Commonwealth Games: I just loved it. I didn’t feel pressured at all, • Approximately 75 per cent of spectators because I was in such a positive mood and if chose public transport to get to and from you maintained your own sense of enthusiasm Games venues. and happiness, then it did actually calm people. The sense of camaraderie among my fellow DOI • More than 35,000 additional public transport volunteers and the staff and contractors from the services were delivered. bus companies was something I’ll never forget.

• Connex, Yarra Trams and V/Line extended The entire time was just a huge celebration. services until approximately 12.30 am, and It was sunny, the city looked gorgeous, the around 1.30 am on opening and closing people were friendly and I felt so pleased to ceremony days, and more than 60 additional be a part of it all. suburban and city route bus services were provided in the early hours of the morning, providing suburban connections from the last trains and trams.

DOI ANNUAL REPORT 2005–06 65

• Connex operated more than 3,750 additional The Victorian Taxi Directorate (VTD) also worked services across the Games period, representing closely with OCGC to produce a booklet for the a 20 per cent service increase, including taxi industry entitled Drive Guide for Taxis, Hire increased evening service frequencies and Cars, Charter Buses and Tow-trucks to support running six-carriage trains all day, every day the industry in providing excellent service to to increase train capacity. Commonwealth Games patrons. The booklet included details and maps of Games events, venues • Yarra Trams operated nearly 17,000 additional and taxi ranks. OCGC printed fl ags with the Games services, including extra timetabled services logo and colours for taxi aerials, making taxis more and special shuttle services to major venues, visible to customers and contributing to the festive a 33 per cent service increase overall. appearance of the city.

• More than 15,000 additional route bus services The TravelSmart Program targeted households in the operated over the Games period, representing vicinity of three Commonwealth Games venues: the a service increase of more than 10 per cent. Melbourne Sports and Aquatic Centre, Melbourne Spectator buses also operated throughout the Cricket Ground and Telstra Dome. More than 3,200 Games, helping to deliver people as close as households received information about walking, cycling possible to the Games venues. and catching public transport in their area, and many received simple incentives to choose sustainable travel • NightRider buses provided an all-night service options both during and after the Games. on every night of the Games for revellers who continued celebrating into the night. Hourly Public transport performance NightRider services operated on every night Patronage of the Games, rather than only on Friday and Public transport experienced very strong growth Saturday nights, and services on opening and in patronage in 2005–06. Patronage growth from closing ceremony nights and weekends were 2004–05 to 2005–06, including additional demand boosted to a half-hourly frequency. during the Commonwealth Games, is estimated to be 6 per cent for metropolitan public transport • V/Line operated an additional 224 services, overall (train: 11.2 per cent; tram: 4 per cent; and bus: including extended operating hours and stable). After adjusting for the patronage spike caused additional late-night services, representing by the Commonwealth Games, underlying patronage a 10 per cent service increase. growth is estimated at 4.9 per cent for metropolitan transport overall (train: 9.4 per cent; tram: 2.9 per • V/Line experienced record patronage levels, cent; and bus: stable) (refer Table 1). The metropolitan with 75 per cent more passengers than in the train mode has been experiencing signifi cant growth, equivalent weeks last year. Of the extra 150,000 thought to be driven by increases in petrol prices. trips on V/Line services, more than 100,000 were by people taking advantage of the $10 return The Department has reviewed its measurement ticket offer to travel to Games events. methodologies for estimating patronage across all metropolitan public transport modes. A new, more accurate methodology for estimating metropolitan bus patronage, consistent with that used for train

Outcome 3 Access and mobility 66

Table 1. Estimated growth in metropolitan public transport patronage from 2004–05 to 2005–06

Estimated underlying patronage growth (excluding additional patronage associated Mode Estimated patronage growth with the Commonwealth Games)

Metropolitan buses Stable Stable Metropolitan trains 11.2% 9.4% Trams 4.0% 2.9% All metropolitan public transport 6.0% 4.9%

and tram patronage since 2004–05, was introduced unprecedented levels of patronage. Construction in 2005–06. Bus patronage growth was stable in work at Flinders Street and Southern Cross Stations 2005–06, with the Government’s investment of during the year had some impact on Connex’s ability $10.5 million in new bus service initiatives during the to deliver services on time. year anticipated to have an impact from the 2006–07 fi nancial year. Tram services Service delivery by Yarra Trams during 2005–06 has For regional train and coach services, there was an been excellent, with cancellations of only 0.3 per cent increase in patronage of 4.6 per cent from 2004–05 of scheduled services. Punctuality improved during to 2005–06. This represents a signifi cant recovery the year, with an average of 82.9 per cent of services from the patronage levels during service disruptions running on time across the network and an average that resulted from work on major projects such as ‘at destination’ result of 72.7 per cent. the Southern Cross Station development and the impact of temporary line closures due to the RFR Measured in terms of total passenger-weighted project. Regional rail patronage can be expected to minutes of delay, Yarra Trams’ performance has increase again after the introduction of the new V/Line consistently been over 30 per cent better than timetable in September 2006. Patronage on under the Public Transport Corporation in 1998. regional buses — including country, urban and This good level of performance has been achieved V/Line-marketed bus services — increased by during a period of signifi cant change throughout 5.4 per cent in 2005–06. the tram network, including increasing volumes of car traffi c, route amalgamations and extensions Metropolitan train services to existing services. Following measures to counter the adverse impact of driver shortages in 2004–05, metropolitan train Metropolitan bus services reliability has improved from an average of 1.3 per Metropolitan bus services have maintained levels cent of scheduled services cancelled in 2004–05 of performance consistent with previous years. to 0.9 per cent in 2005–06. On average, 93.9 per cent of services were on time and only 0.1 per cent of services were cancelled The punctuality of Connex services in 2005–06 over the year. was 93.0 per cent compared with 93.9 per cent in 2004–05. The network is now experiencing

DOI ANNUAL REPORT 2005–06 67

Country train and coach services Compensating passengers Over the past two and a half years, V/Line Passenger’s Connex raised its compensation threshold for performance has been adversely affected by RFR service delivery from 95 per cent to 98 per cent from works and by major works at Southern Cross Station 1 July 2005, and both Connex and Yarra Trams have which reduced the availability of platforms. Speed introduced a two-tier threshold arrangement for restrictions were placed on the north-eastern, eastern passenger compensation. Customer compensation and southern corridors due to track condition and work continues to be calculated on a system-wide basis on RFR projects. Connex network delays, especially for both operators. No change has been made to in the eastern corridor, have also impacted adversely the V/Line passenger compensation code. on operational performance. Metropolitan tram services exceeded the specifi ed The percentage of V/Line services that operated minimum performance standards throughout on time in 2005–06 was 83.5 per cent compared 2005–06 and Yarra Trams was therefore not required to to 85.1 per cent in 2004–05. V/Line’s ability to compensate passengers during the year. Metropolitan deliver services is still good, with only 1 per cent train services exceeded performance standards in of services cancelled. While punctuality is important, all months of 2005–06 except February 2006, during reliability is valued highly by V/Line customers which metropolitan train performance fell below the because of the signifi cant impact on passengers 92 per cent punctuality threshold and eligible Connex if services are cancelled. customers were able to claim compensation. V/Line was required to provide compensation throughout

Table 2. Public Transport Customer Satisfaction Monitor results from 2004–05 to 2005–06

Mode 2004–05 2005–06 Survey question

Overall, are you satisfi ed or dissatisfi ed with Metropolitan buses 69.2 68.4 the service on your bus route?

Overall, are you satisfi ed or dissatisfi ed with Metropolitan trains 65.4 64.4 the train service on your line?

Overall, are you satisfi ed or dissatisfi ed with Metropolitan trams 71.2 70.3 the tram service on your line?

Overall, are you satisfi ed or dissatisfi ed with V/Line trains and coaches 70.5 70.5 V/Line train and coach services?

Overall, are you satisfi ed or dissatisfi ed with Taxis 64.1* 64.4 Melbourne’s taxi services?

*April to June quarter 2005 only

Outcome 3 Access and mobility 68

2006 due to punctuality falling below the 92 per cent Overall customer satisfaction for metropolitan threshold. However, service delivery exceeded the (train, tram, bus and taxi) and regional (train and 96 per cent threshold on all corridors over the year. coach) public transport remains in the range ‘somewhat satisfi ed’ to ‘very satisfi ed’. Customer Compensation arrangements did not apply for satisfaction with metropolitan train and V/Line March 2006, as it would have been unreasonable services has stabilised after the decreases recorded to apply these standards when much greater pressure from 2003–04 to 2004–05. Overall satisfaction with was being placed on the transport system during metropolitan trams and buses remained relatively the Commonwealth Games. stable (refer Table 2).

Customer satisfaction Public transport ticketing system reliability The Director of Public Transport commissions Melbourne’s Automated Ticketing System performed monthly customer satisfaction surveys to measure well during the year, with the performance of ticket whether operators are providing the quality of service vending machines at railway stations exceeding customers expect. A sample of people is randomly contractual targets. Vending and validating machines selected from electronic telephone directories in on buses also performed well. Equipment on trams areas where train, tram, bus and coach services showed room for improvement and Yarra Trams is operate. Metropolitan taxis were added to the regular working with Metlink and OneLink on measures monthly surveys in the June quarter 2005. to better identify and respond to malfunctions.

Interviewees are asked to indicate their usual public Fare box transport usage and state their level of satisfaction Metropolitan fare box revenue for 2005–06 with specifi c aspects of public transport, as well grossed $464 million, an increase of 8.1 per cent as the service overall. These responses are given on the previous year, taking into account fare a score of between 0 and 100 according to the increases introduced on 1 January 2006. Fare box following scale: growth is higher than overall patronage growth due to reductions in fare evasion that were achieved Totally satisfi ed 100 during 2005–06. The stronger growth in metropolitan Very satisfi ed 80 train patronage relative to the other modes is also Somewhat satisfi ed 60 likely to have had an impact, as metropolitan train Somewhat dissatisfi ed 40 passengers are more likely to travel across multiple Very dissatisfi ed 20 fare zones and therefore need to purchase higher Totally dissatisfi ed 0 cost multi-zone tickets.

Table 3. Estimated metropolitan fare evasion levels 2005 to 2006

Time period Train (%) Tram (%) Bus (%) All modes (%)

First half 2005 13.5% 19.4% - -

Second half 2005 10.8%15.3%16.1%13.6%

First half 2006 10.6% 13.1% 9.9% 11.5%

DOI ANNUAL REPORT 2005 DOI ANNUAL REPORT 2005–06–06 69

Reducing fare evasion Metropolitan train service improvements Although fare evasion in Melbourne cost around The Government, Connex, V/Line and the Rail, $50 million in the past year, strategies to combat fare Tram and Bus Union (RTBU) have worked together evasion on public transport are working, with more on a range of actions to overcome an acute shortage people paying their way. A Metlink survey of more of train drivers, which was causing cancellations than 35,000 passengers carried out between April and impacting on train reliability. This effort has and June 2006 showed that fare evasion across all resulted in 110 new drivers graduating from training three modes of public transport has fallen from 13.6 between April 2004 and June 2006 (47 of whom per cent to 11.5 per cent. This follows a signifi cant graduated in 2005–06). Cancellations due to driver reduction in fare evasion recorded in the latter half shortages are now rare. of 2005 across trams and trains (refer Table 3). Reductions in fare evasion were achieved through In an effort to reduce crowding on the network, from a combination of legislative changes, advertising July 2005 Connex introduced additional train services campaigns, additional staff, design changes at key on some lines. stations and better performing ticketing equipment. Following commissioning of 58 new three-car Metropolitan bus service improvements X’Trapolis trains on the metropolitan train network Buses are an integral part of the public transport by December 2004, and 62 new three-car Siemens network for people living and working in Melbourne’s trains delivered by February 2005, a further 10 three- suburbs. In recognition of this, the Government car Siemens trains were purchased under an option committed $39 million over four years for metropolitan contract and delivered progressively into service bus service improvements and service planning in between October 2005 and January 2006, ahead the 2005–06 State Budget. Improvements include of the contracted date of June 2006. This brings the introduction of new routes, extended weekday the total to 130 new three-car trains that have been operating hours on existing services, and the introduced on the metropolitan train network since introduction of services on Saturdays, Sundays December 2002, offering improved comfort and and public holidays. safety for passengers.

Improvements involving almost 60 bus routes A pre-Commonwealth Games graffi ti cleanup was have been completed under this program in the undertaken on the 2.5 kilometre rail corridor between following municipalities: Banyule, Boroondara, Flinders Street, and Richmond and Jolimont stations Cardinia, Casey, Darebin, Hume, Frankston, — Melbourne’s busiest sections of railway line. The Greater Dandenong, Hobsons Bay, Manningham, corridor is used by 200,000 commuters each week Maribyrnong, Melbourne, Moonee Valley, Mornington, day and thousands more visitors travelled past while Whittlesea, Wyndham, Yarra and Yarra Ranges. in Melbourne attending the Games. The project was part of a $1 million campaign that also included community volunteers and young offenders on community-based orders removing graffi ti at Flinders Street and Jolimont Stations and from a number of public transport assets, including bridges and retaining walls in and around the CBD.

Outcome 3 Access and mobility 70

Metropolitan tram service improvements New, accessible platform stops were constructed in: The Government is actively addressing the need • Collins Street, at Elizabeth Street and between to improve tram journey times and reliability through Russell and Exhibition streets a series of initiatives as part of the $30 million Think Tram program. Work is focusing on inner sections of • Bourke Street, as part of the redevelopment selected priority routes: 19, 48/75, 55, 59, 86, 109, of Bourke Street Mall 112 and St Kilda Road routes, and includes:

• Flinders Street, as part of the project to remove • modifying traffi c lights at some locations to the Flinders Street overpass. give greater priority to trams

• providing a physical separation between Knox Transit Link trams and traffi c Knox Transit Link — a $42.6 million new integrated bus and tram service incorporating the Vermont • enabling quicker boarding and alighting times South Tram Extension and extending all the way by constructing platform stops, which also to Knox City — commenced services in July 2005. provide accessibility for people with a disability The new service incorporates improved bus services • better enforcement of existing road rules and offers residents better access between the and more information to motorists about eastern suburbs and inner Melbourne. Establishing how to share roads with trams the new transit link required:

• paving the road red at selected tram stops • extending the Route 75 tramline by about to make them more visible to motorists. three kilometres along Burwood Highway from Blackburn Road to Vermont South Think Tram works on the Route 19 (Sydney Road) service have resulted in travel time savings of up to • constructing a new transport interchange 5 per cent. opposite the Vermont South shopping centre

Melburnians are now enjoying more accessible and • doubling the frequency of buses comfortable tram services, with around 90 per cent of Yarra Tram’s fl eet either new or refurbished. A total • constructing 10 new accessible platform tram of 95 modern, low-fl oor trams are in service, including stops with shelters 36 Citadis trams and 59 Combino trams. In addition, Yarra Trams refurbished 327 older trams, with a • providing extra bus stops between Vermont further 24 trams to be refurbished by August 2006. South and Morack Road, and upgrading other The refurbishments are in addition to the completed bus stops as required. works to improve the safety and reliability of Melbourne’s historic W-class tram fl eet.

In 2005–06, the Yarra Tram operations centre was linked with VicRoads’ traffi c control centre and cameras to better manage road incidents and congestion.

DOI ANNUAL REPORT 2005–06 71

Figure 11. Box Hill Station: Validations by week (comparisons between fi rst 23 weeks of 2005 and 2006)

50,000

2006

40,000 Barrier closure implemented 30,000

2005

Ticket validations 20,000

10,000

0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Week

Public transport ticketing Sunday Saver ticket New ticketing solution The Sunday Saver ticket was launched in April 2005 The Transport Ticketing Authority (TTA) continued and provides all-day travel on Sundays for just $2.50 to manage all aspects of the State’s interest in the across all metropolitan travel zones and on all modes existing public transport ticketing system, and to of transport. prepare for the delivery and operation of the New This ticketing initiative contributed to a 20 per cent Ticketing Solution (NTS). increase in patronage on Sundays from April 2005 A $494 million contract was awarded to Kamco in July to March 2006 compared with the same period in 2005 to develop, implement and operate the NTS over the previous year. By 30 June 2006, more than the next 12 years. Detailed documentation was prepared 2.3 million Sunday Saver tickets had been sold. for the NTS design and operational requirements which, The Sunday Saver has dramatically decreased together with the tender specifi cations, form the basis the cost of travel, particularly for customers travelling for the solution’s development. long distances—a family of fi ve can now travel from A critical milestone was achieved, in the successful Zone Three to the city for less than the cost of an development of the ‘end-to-end’ software prototype, Adult Zone 1+2+3 Daily. The Sunday Saver has been which will allow application of local NTS business designed to encourage use of public transport at rules. This achievement will enable the solution a time when surplus capacity is available. to be ‘fi t for purpose’ and delivered on time. Most Station design trials international projects do not achieve this end-to- During 2006, three stations — Box Hill and South end connectivity until a much later stage. Access Yarra stations and the Lonsdale Street entrance of agreements were entered into with all operators, Parliament Station — were redesigned to improve meaning installation works can proceed in revenue protection and safety, by enabling staff in accordance with the agreed schedule. the customer service centre to assist customers on both sides of the ticket barriers. This allows the ticket barriers to remain closed, without the need for dedicated barrier staff.

Outcome 3 Access and mobility 72

This initiative has signifi cantly increased revenue and New V/Line monthly ticket passenger safety. The number of validations at Box Monthly V/Line tickets were introduced on 1 January Hill (refer to Figure 11 showing changed validations 2006, offering greater economy on the weekly fare in the weeks before and after redesign of the station and giving customers the option of paying less up entrance at Box Hill) and South Yarra stations front than for 10-week date-to-date tickets. The tickets has doubled since the new arrangements were offer unlimited travel between an origin and destination implemented. International research indicates that for an entire month for the cost of 20 days’ travel. keeping barriers closed can also increase safety on stations by denying entry to non-ticket holders. New ticketing laws Research shows at least one in 10 passengers The barrier closure at Box Hill was implemented in have not paid their fare or not paid the proper late January 2006 (week 4 on Figure 11) and has fare, costing taxpayers over $50 million a year. seen a dramatic increase in the number of validations This money could otherwise be spent on improving compared to the same period the previous year. public transport services. Growth in validations in the fi rst 23 weeks of 2006 compared to the equivalent period in 2005 was The Government developed major new ticketing law 68 per cent. changes during 2005–06 in the Transport Legislation (Further Miscellaneous Amendments) Act 2005 and Ticket barriers now remain closed at the fi ve City the Transport (Ticketing) Regulations 2006. Loop stations and at Box Hill, Richmond and South Yarra stations for most of the day. This approach The Government invited public comment during the will be progressively extended to other stations in year on the draft Transport (Ticketing) Regulations to the network. Already, the majority of rail passengers make public transport ticketing laws clearer and help start or end their journey at a station with monitored to discourage fare evasion. Seventeen submissions fare gates. This has signifi cantly decreased fare were received. The regulations came into force on 31 evasion on the train network. July 2006.

V/Line tickets valid for metropolitan travel In addition, the Government implemented other In April 2006, V/Line tickets became valid, at no extra legislative changes relating to: cost, for travel in the metropolitan zone of origin or departure. They are also valid on local bus networks • infringements in Ballarat, Bendigo, Geelong, Moe, Morwell and • name and address powers Traralgon, where this is the origin or destination. • conduct offences

For example, a Day Return ticket from Geelong to • other criminal offences relating to ticketing, Melbourne provides unlimited V/Line travel between such as forgery. Geelong and Melbourne on that day, as well as unlimited travel on the Geelong Transit System and The Government offered a fi ne amnesty period from Metcard ticketed services in Zone 1. 1 February to 31 May 2006 during which PERIN court and warrant fees and costs were waived and people These changes are expected to boost V/Line with unpaid fi nes, including those for fare evasion, patronage, and are the precursor to full integration only had to pay the original fi ne and an administration which will occur when the new ticketing solution cost. The amnesty was offered ahead of tough new is implemented. sanctions introduced from 1 July 2006.

DOI ANNUAL REPORT 2005–06 73

Public transport access for • All bus stops have been audited for compliance people with a disability and programs are being implemented to meet Almost 20 per cent of Victorians have a disability, and the milestones. this fi gure is expected to increase in the years ahead. Public transport plays a vital role in providing access • 367 wheelchair-accessible taxis are operating to employment and other activities for people with in Victoria. disabilities or restricted mobility. The Public Transport Access Committee continues to The Government, in collaboration with transport provide advice on access for people with disabilities operators, has made considerable progress in meeting across all modes of public transport, and is consulted the Commonwealth Disability Discrimination Act 1992 on the design and development phases on all new (DDA) requirements for accessible public transport. public transport projects.

The fi rst DDA milestone is 25 per cent compliance Metlink projects with the Act by 31 December 2007, and the second is Wayfi nding signage 55 per cent by 31 December 2012. The scope of work The Government is providing $28 million for improved to meet these milestones has been identifi ed and signage under the Public Transport Partnerships that programs are established: commenced in April 2004. Metlink is rolling out new, clear, consistent signage across the metropolitan • Metropolitan trains are DDA-compliant, with the train, tram and bus network to assist passengers in exception of 12-three car Hitachi trains, which will navigating the public transport system. The new signs be retired well ahead of the 2032 100 per cent replace earlier signage which had different logos compliance milestone. and designs. They are easy-to-follow and colour- coded — blue for train, green for tram and orange • Connex is implementing annual works programs for bus — and help to improve connectivity between to improve compliance at metropolitan stations transport modes. in accordance with the milestones. New signage was installed at railway stations and • On completion of the current order of 38 VLocity tram stops by 30 June 2006, and signage at bus trains, country trains will be 89 per cent compliant. stops will be completed in early 2008. Signage at Heatherdale and Kananook railway stations will • Regional stations have been audited for be delivered in conjunction with the station upgrade compliance and programs are being developed works as part of the EastLink Project. for implementation by V/Line Passenger to meet the milestones. Journey planner Metlink has developed a multi-modal, web-based • 95 low-fl oor, accessible trams (23 per cent public transport journey planner to help passengers of the tram fl eet) are now in operation. plan journeys using trains, trams and buses in metropolitan Melbourne and on V/Line train and coach • 103 wheelchair-accessible, DDA-compliant tram services in regional Victoria. The journey planner stops have been built, with more planned. allows customers to nominate their origin, destination, time of travel and travel preferences. It then provides • Nearly 50 per cent of metropolitan buses and a number of travel options from which the customer over 40 per cent of country route buses are can choose and print a detailed itinerary. already compliant, with over 90 new low-fl oor, accessible buses being introduced each year.

Outcome 3 Access and mobility 74

The journey planner was introduced in the Metlink Travel on Christmas Day Call Centre in time for the Commonwealth Games and New Year’s Eve and was launched publicly on the Metlink website The Government, in partnership with Connex, Yarra in April 2006. It replaces a simple train trip planner Trams and bus operators, again provided free travel with limited functionality. Further developments to the on metropolitan train, tram, bus and NightRider bus journey planner will be introduced in the second half services on Christmas Day 2005, and on services of 2006, including regional bus services and more from 3 pm on New Year’s Eve to around 8 am on features for users. New Year’s Day.

Advertising campaigns On New Year’s Eve, trains and trams operated Metlink’s ‘Pay Your Way, Buy a Ticket’ fare all-night services. Around 230 extra train services compliance campaign, launched in June 2005, was were provided, and additional customer service refreshed and re-run in October 2005. The campaign personnel worked to help customers who were communicated the message that passengers have an unfamiliar with the system. NightRider bus obligation to other passengers to pay. services ran half hourly instead of at the normal hourly intervals, and taxis delivered service levels Using humour, television commercials conveyed a comparable to those in the previous year. number of scenarios where fare evaders in orange t-shirts are doing things to repay paying passengers, Because of this initiative, approximately 200,000 such as helping in the garden and at the offi ce. people chose to leave their cars at home and The scenarios and humour followed through to print, used trains, trams or buses to travel to and from radio, outdoor and on-transport materials. Sweeney the popular 2005 New Year’s Eve celebrations in Research indicated that the recall of the campaign Melbourne’s CBD. The free travel initiative builds on was 78 per cent. the Transport Accident Commission’s road safety public education programs and is consistent with the The Metlink ‘Value Metcard’ campaign, launched in Government’s arrive alive! road safety strategy. April 2005, was re-run in November 2005. Featuring pop art and using print and radio advertisements, the Public Transport Ombudsman campaign promoted multi-trip tickets and encouraged The Government and transport operators are customers to pre-purchase their Metcards. committed to ensuring that public transport users Metlink’s ‘BATBYGOBSTOPL *Buying a ticket have access to appropriate avenues for resolving before you get on board saves time or problems complaints about services. later’ campaign was specifi cally aimed at educating Since its establishment in July 2004, the Offi ce passengers to pre-purchase their Metcards off-site. of the Public Transport Ombudsman has received Running in January and February 2006, the campaign about 2,000 complaints, and is averaging about included television, radio and press advertisements, 90 cases per month. Most have been satisfactorily outdoor media and point-of-sale material distributed resolved without the need to resort to formal to retail agents prior to the start of the campaign. mediation. The Public Transport Ombudsman ensures that customers receive appropriate responses to the issues they have raised.

DOI ANNUAL REPORT 2005–06 75

Smoking bans The issuing of 100 new peak service taxi licences Following amendments to the Transport Act and brings total peak service taxis to 300. Applications Regulations, smoking was banned under covered for another 100 licences closed in mid-July 2006. areas at railway station platforms and tram and bus An additional 100 peak service taxi licences will shelters in Victoria from March 2006. An advertising be issued each year to bring the total to 600 peak campaign informing commuters and the community service taxis. of the new law included posters, features in commuter Major reforms to the process of buying and selling newsletters, newspaper advertisements, and signs taxi licenses commenced in March 2006 with the in and around railway stations. licensing of taxi licence brokers by the Bendigo Stock Exchange. The reforms make the process of buying Cycle Connect and selling taxi licences more transparent. The Cycle Connect initiative aims to encourage See www.bsxtaximarket.com.au for details. commuters to ride to railway stations by providing safe and secure cycle storage facilities. Under Regional taxi services review Phase 2 of this program, 200 new bicycle lockers In August 2005, the Government announced a were installed at railway stations during 2005–06 review of taxi services in regional Victoria. The aim — 160 at 22 metropolitan stations and 40 at seven of the review was to assess their fi nancial viability, regional commuter stations. These complement investigate costs and fi nancial returns to operators the 250 lockers installed under Phase 1 in 2004–05. who provide wheelchair-accessible services, and recommend sustainable measures to improve the There are now a total of 1,071 bicycle lockers at viability of these businesses to meet regional taxi railway stations — 943 at metropolitan stations transport requirements. and 128 at regional stations. The new lockers were jointly funded through DOI ($151,000), the Federal In response to the review, the Government has Government’s Cycle Connect initiative ($264,000) implemented a package of measures to address and in-kind contributions by DOI and project the fi nancial hardship faced by many regional taxi partners Connex and V/Line ($152,000). operators, including:

Taxi and hire car service improvements • providing fi nancial assistance for purchasing Industry reforms wheelchair-accessible taxis to maintain services DOI achieved some major milestones in the taxi to people with a disability industry this year including completion of many of the initiatives under a 17-point program of taxi • increasing business support to help regional and hire car reforms. operators make the most of opportunities to grow their business within their communities These reforms, fi rst announced by the Government in 2002 following a National Competition Policy • encouraging greater operational fl exibility by review, are nearing completion. The major objective of empowering operators to establish core operating the reforms was to build sustainable and professional hours in consultation with the local community taxi and hire car industries, and to moderate taxi licence prices.

Outcome 3 Access and mobility 76

• introducing fl exibility around the fare structure employment, education, day-training, volunteering or to enable operators to compete for additional fi nancial hardship can still apply for a higher subsidy. business, but with the metered fare remaining The remaining one-third of members are exempt from the maximum charge the subsidy cap due to the nature of their disability.

• reducing the burden of taxi licence fees To ensure mobility-impaired Victorians are getting and charges. high-quality, sensitive service from the industry, the Government has introduced specialised training for ‘Totem’ signs drivers who operate wheelchair-accessible taxis. Twenty-six taxi ‘totem’ signs were installed around the city and suburbs in time for the 2006 The Government has allocated $500,000 to subsidise Commonwealth Games. The totems feature a solar- training for drivers of wheelchair-accessible taxis in powered light that lights up at night to alert drivers the practical and professional conduct required to that a passenger is waiting. provide a service that is sensitive to the needs of people with a disability. A successful pilot program The totems have been designed in conjunction with with 18 drivers was conducted by Geelong Radio taxi industry representatives, local councils and Cabs and Taxi Industry Training Victoria, a subsidary disability groups to ensure that they meet the needs company of the Victorian Taxi Association, in May of passengers and drivers and include: 2006. Following the success of the pilot, the program will be implemented across Victoria. • a button-activated, solar-powered light to alert passing taxis to waiting passengers, Drivers of wheelchair-accessible taxis in the with instructions in tactile text and Braille metropolitan area must complete the lifting and for customers with a visual impairment restraining element of the course in Wheelchair- Accessible Taxi Services by 30 November 2006. • a list of taxi services and booking numbers The entire course must be completed by 30 November available in the local area, including booking 2007. Drivers who have previously completed the numbers for wheelchair-accessible taxis Scope (formerly the Spastic Society) wheelchair course will not be required to complete the course, but may • a map of the area with a ‘you are here’ indicator do so if they wish. Non-metropolitan operators and drivers will also need to complete the entire new course • the Customer Charter for the Victorian by the end of November 2007. Once the above dates Taxi Service, identifying customers’ rights have passed, it will be an offence for non-wheelchair and responsibilities accredited drivers to drive a wheelchair-accessible taxi, even if transporting people not in wheelchairs. • information about connecting train, tram and bus services where relevant. Increased compliance monitoring An additional seven taxi compliance offi cers were Helping people with disabilities recruited in September 2005, increasing the visibility The Multi Purpose Taxi Program helps Victorians and presence of VTD staff actively policing vehicle with severe and permanent disabilities use taxis at a and service standards in the fi eld. more affordable rate. In 2005-06, the annual subsidy cap for the program, which applies to two thirds of members, was increased from $565 to $1,000, and the trip cap for all members was increased from $25 to $30. Subsidy-capped program members who have exceptional transport needs because of health,

DOI ANNUAL REPORT 2005–06 77

Major priorities for 2006–07 Metropolitan train service improvements

Public transport ‘Premium station’ upgrades Cross-town and local buses A $27.7 million commitment over 10 years to upgrade a further seven stations in Melbourne to premium A 10-year, $1.4 billion bus program, part of Meeting status, will commence in 2006–07. Those stations Our Transport Challenges, will commence upgrading to be upgraded include: Bell (Epping line), Burnley more than 250 existing bus routes to provide at least (Belgrave line), Darling (Glen Waverley line), Mentone hourly services until 9.00 pm every day of the week. (Frankston line), Nunawading (Belgrave line), Upfi eld Selected major or high-patronage routes will also be (Upfi eld line) and Watsonia (Hurstbridge line). upgraded to a minimum half-hourly frequency during peak periods on weekdays. Up to 26 new staff will be hired across the premium station network to support the new A number of local area bus reviews will also be premium stations. In addition, Craigieburn Railway conducted in conjunction with local councils and bus Station will be upgraded to premium status as part operators to ensure their funding is allocated to areas of the Craigieburn Rail Project. of highest priority.

SmartBus Park and Ride facilities Under Meeting Our Transport Challenges, the Park and Ride facilities enable passengers to SmartBus network will be extended along four orbital combine a private car trip with a public transport trip, routes, providing cross-town links in the inner, middle expanding the catchment area of the public transport and outer suburbs of Melbourne. The fi rst priority in network and potentially diverting long car trips onto 2006–07 will be commencement of development public transport. works for Stage 2 of the ‘Red Orbital’ route. extending the existing Mordialloc to Box Hill route to Altona Around 1,000 additional car spaces will be provided through Doncaster, Heidelberg, Preston, Coburg, beside the metropolitan and V/Line rail networks in Essendon and Sunshine. Construction works will the next two years, with a further 4,000 spaces to begin in 2007 and services will commence in 2009. be created over the next 10 years, under a $90 million Over the next six years SmartBus services will begin a Park and Ride program announced under Meeting sequenced development along the Green, Yellow Our Transport Challenges. and Blue Orbital routes. Train driver training and recruitment More and better train and tram services The Government has committed $15.4 million towards Commencing in late 2006, under Meeting Our training new train drivers over the next three years. Transport Challenges, the Government will extend This will help to reduce cancellations and improve the operating hours of the metropolitan train and tram the reliability of services in the future. The training will networks on Friday and Saturday nights with two prepare another 180 drivers to work on Victoria’s train additional services on most lines. The last trains will network by 2008 — 120 on the metropolitan network leave the city between 1.00 am and 1.25 am. and 60 new drivers for the regional network.

Outcome 3 Access and mobility 78

Graffi ti removal Public transport access for people Following the success of the project to remove graffi ti with a disability on the Flinders Street to Richmond and Jolimont rail In May 2006, the Government announced funding corridors, the Government has pledged another of $250 million for a 10-year program of projects to $1 million to address public transport graffi ti over the improve the accessibility of metropolitan train and next 12 months. The program will focus on removing tram services, regional and metropolitan bus services graffi ti along the Flinders Street to North Melbourne and V/Line Passenger services. rail corridor and from key public transport assets, including signal boxes and bridges, across the In 2006–07, improvements under the program will metropolitan network. begin and include:

• Metropolitan train services: access paths, Public transport ticketing ramps, surfaces, handrails and grab rails, stairs and tactile ground surface indicators (TGSIs). The New Ticketing Solution will undergo a substantial development and testing regime including pilot testing • Tram services: upgraded platform tram stops in 2006–2007. A comprehensive transition program is built primarily in medians, more accessible rolling being developed to enable a smooth migration from stock, tram rights of way, wide safety zones the OneLink ticket system to the NTS during 2007. where traffi c impact would be minimal, and some upgraded platform stops in high-use locations. The Government is committed to improving the mobility of Victorian Seniors and will introduce a • Bus services: access paths, new surfaces and number of measures to deliver signifi cant travel TGSIs at bus stops. savings to Seniors on public transport.

• V/Line Passenger services: access paths, As part of a $33.6 million 10-year program ramps, waiting areas, surfaces, handrails and announced in Meeting Our Transport Challenges, grab rails, lighting, furniture and fi ttings. from 27 August 2006, Victorian Seniors will be entitled to: The program supplements other projects, such as Southern Cross Station, Think Tram, SmartBus, • travel on V/Line concession fares any time Metlink signage and information, and the new of the day, any day of the week, bringing the smartcard ticketing solution, all of which integrate metropolitan and regional concessions for DDA compliance requirements. Seniors into line

• free travel on Sundays within Melbourne and local services in major regional areas

• two, rather than one, free off-peak travel vouchers per year. Each voucher can be exchanged for two Single V/Line tickets, a Day Return V/Line ticket or a Daily Metcard.

DOI ANNUAL REPORT 2005–06 4 OUTCOME 4 CONNECTED VICTORIA

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

DOI ANNUAL REPORT 2005–06 81 Outcome 4: Connected Victoria

Growing Victoria Together vision

Thriving Economy Vibrant Democracy

Growing Victoria Together goals

Growing and linking all of Victoria More quality jobs and thriving, innovative industries across Victoria Sound fi nancial management

DOI output group ICT Policy and Programs

DOI outputs

• eGovernment Infrastructure • ICT Policy and Programs

The information and communication technology (ICT) The Government continues to support the ICT sector continues to grow and now contributes around industry to achieve the vision set down in its 5 per cent of Australia’s Gross Domestic Product. Growing Tomorrow’s Industry Today policy, released Victoria’s ICT industry currently has a turnover of more in 2001. In December 2005, the Government than $22.9 billion per annum, and employs almost renewed its commitment by releasing the Victorian 76,500 Victorians, or approximately 30 per cent of Government ICT Industry Plan 2005–2010, which the total Australian ICT employment fi gure (reference: combines the views of a broad range of stakeholders Whitehouse Consulting statistics). to create a strategic plan for the continued vibrancy of the ICT sector in Victoria. The Plan identifi es new During 2005–06, more than 1,000 new ICT jobs initiatives and programs that will support industry were generated and over $115 million worth of capital growth in: ICT investment was attracted to Victoria. ICT exports worth over $230 million were facilitated. • export and investment

• government procurement DOI, through Multimedia Victoria (MMV), has a key role in implementing the Victorian Government’s • workforce development and collaboration. ICT agenda, Connecting Victoria, which aims to deliver the full benefi ts of technology to the State. In April 2006, the Government released its Victorian life sciences statement: Healthy Futures: delivering MMV contributes to the Government’s Growing better health, research and jobs for Victorians, which Victoria Together objectives through policies reinforces its commitment to strengthening Victoria’s which build cohesive communities and reduce world-class medical research facilities, improving disadvantage; grow and link all of Victoria; enhance the health of all Victorians and creating new industries fi nancial management and savings across the and jobs. Government; and create more jobs and thriving, innovative industries across Victoria.

Outcome 4 Connected Victoria 82

Key actions for DOI in this statement will be pursued by MMV. They are:

• the establishment of e-Research centres in Parkville, Clayton, Bundoora and Werribee

• Victoria’s membership in round three of the Australian Partnership for Advanced Computing (APAC) program.

Full details about Healthy Futures can be found at www.business.vic.gov.au

In its Moving Forward: Making Provincial Victoria the Best Place to Live, Work and Invest action plan (November 2004), the Government outlines its strategies to increase job opportunities and populations in rural and regional Victoria, deliver infrastructure and support local councils in managing growth. One of the key actions for DOI is to improve regional broadband access in the Grampians and Loddon Mallee regions.

Key achievements in ICT during 2005–06 are outlined in the following pages. Further details relating to specifi c projects can be obtained at the web addresses listed throughout this Outcome.

DOI ANNUAL REPORT 2005–06 83

Key achievements • The South-West Alliance of Rural Health’s Virtual Services Project will aid the delivery of specialist Broadband health care services from multiple health care agencies to remote and rural communities via a Broadband Framework broadband network. The project will implement The Broadband Framework was released in April virtual reception, virtual assessment, clinical 2005, and outlines the Government’s agenda for monitoring and virtual communication (for the using the most up-to-date broadband technologies deaf community) in south-west Victoria, (total and fostering the development of broadband services cost of project $2.8 million). and infrastructure, particularly in regional areas. • The Yarra Valley eRich Learning Environment The Framework is based on three principles: Project aims to improve student engagement and performance by embedding ICT in the teaching • strategic use of broadband to deliver and learning practices of a community of Yarra community benefi ts Valley schools (seven secondary colleges, 40 primary schools and one special school), which • supporting market solutions are connected via broadband, (total cost of • complementing federal responsibilities. project $12.7 million).

In June 2006, the proportion of Victorians who • The Far East Gippsland Learning Pathways had access to basic level broadband services Project will allow over a thousand students (ADSL or cable) was 92.86 per cent. within the ten participating schools to access www.mmv.vic.gov.au/broadband a range of high quality curriculum via broadband and videoconferencing technologies, thus Broadband Innovation Fund expanding subject choice, and promoting The Broadband Innovation Fund (BIF) aims to student retention into post-secondary education, accelerate the roll-out of broadband to government (total cost of project $2.1 million). agencies in health, education and other key sectors. • The Regional Mobile Digital Mammography It is improving business effi ciency and service delivery Project will improve the quality of regional and encouraging high bandwidth data services in breast screening services through the use of regional communities. A number of BIF projects wireless networks to connect the Breast Screen continued in 2005–06: Victoria mobile screening van and regional • The Hume Regional Broadband Digital Imaging assessment centre, enabling rapid transmission Project is using broadband to link seven public and diagnosis of digital mammography images, hospitals across nine sites, and allowing doctors (total cost of project $9.1 million). and specialists to access patient x-rays and confer without having to travel across north-east Broadband Access Offi ce Victoria. (Total cost of project $5.7 million). The Government’s Broadband Access Offi ce (BAO) was launched in mid-2005 and is an information website for residents, small businesses, communities, local councils, investors and others wanting to get broadband services. The BAO

Outcome 4 Connected Victoria PETER KERSHAW 84

Parks Victoria Ranger in Charge, Traralgon, Key Sites – Baw Baw NP, Tarra Bulga NP, website is continually updated with the latest Morwell NP, Moondarra and MT Worth information regarding broadband in Victoria, State Parks, Walhalla Historic Area including government initiatives and research. www.mmv.vic.gov.au/broadband As a ranger in charge, I keep watch on 30,000 hectares of national park, fi ve park rangers and TPAMS infrastructure two fi eld offi cers. Some of the offi ces are quite remote so the internet is an important tool for Nearly $200 million of new investment in my team to share information. telecommunications infrastructure in Victoria has been facilitated through TPAMS. The biggest improvements we’ve seen with the upgrade to broadband have been for As a result, more than 3,300 government offi ces places like the offi ce at Erica. The difference throughout the State are being provided with high has been huge for rangers in these remote speed broadband access. This includes 1,600 areas. On a dial-up connection it could take Victorian schools, which are being provided with offi ces like these an hour to download an e-mail fi bre optic broadband. attachment; it was just impossible. The Government’s broadband supplier, Telstra, is The internet has also been useful from a upgrading over 600 exchanges across the state, safety point of view for the park rangers and giving around 150 towns access to business grade our visitors. We regularly use the internet to broadband services for the very fi rst time. Another search for product information and to download 20 towns will be able to access ADSL services for the chemical safety data sheets. Every morning, fi rst time and mobile broadband services are being in winter, we log onto the snow report website made available in Bendigo and Seymour. and lodge a report on the conditions in our Optus, the Government’s fi xed voice supplier, has snow area at Mount St Gwinear. This used to already provided competitive broadband services to be such a slow process, but now we can more than 40 towns as part of the TPAMS contract. quickly give people advance information about the road conditions and snow depths. Further information about TPAMS is reported under Outcome 2 and can also be found at It’s faster and we get things done much more www.mmv.vic.gov.au/TPAMS effi ciently these days, which means the rangers and fi eld offi cers can spend more time working Aurora productively both indoors and outdoors and less time feeling frustrated. MMV and the Government’s urban development agency, VicUrban, in partnership with Whittlesea City Parks Victoria’s broadband upgrade Council, supported the Aurora project to investigate was made possible through the Victorian commercial models for deployment of ‘fi bre to the Government’s Telecommunications home’ (FTTH) in new housing estates. The successful Purchasing and Management Strategy, tender for a commercial solution to provide FTTH in which has restructured whole-of-government the Aurora estate in Melbourne’s outer north-east is telecommunications demand to create almost due to be announced in the fi rst half of 2006–07. $200 million worth of infrastructure investment www.mmv.vic.gov.au/broadband across the State.

DOI ANNUAL REPORT 2005–06 85

e-Research Victorian Partnership for Advanced Computing New funding of $1 million also covered Victoria’s Victoria’s e-Research initiative aims to develop membership in the third round of the Australian advanced ICT or Grid Infrastructure (GI) to boost Partnership for Advanced Computing (APAC) Victoria’s research capability in sciences. Grid program to ensure ongoing priority access to the computing (‘the grid’) is becoming an essential national supercomputer in Canberra and APAC’s tool in e-Research, playing an increasingly critical e-Research programs. role in scientifi c breakthroughs.

The grid is vital for providing better access to research ICT industry data, increasing opportunities for collaboration and ICT Industry Plan 2005–2010 ensuring that the benefi ts of research are realised more quickly. In late 2005, the Government released the Victorian Government ICT Industry Plan 2005–2010 (the Victorian Education and Research Network Plan), describing its ongoing commitment to support the local ICT industry. The Plan comes after a The Victorian Education and Research Network period of recovery and consolidation in the industry (VERN), a new optic fi bre network delivering and provides a fresh basis for ICT industry and super-fast broadband services to university government activity for the medium term. campuses across Victoria, was launched in June 2006. The Plan outlines a range of new initiatives under six broad strategies: VERN is a collaborative project supported by Victoria’s nine universities, the CSIRO, and the Victorian and • assisting local ICT companies to be more Federal governments. The Victorian Government’s successful exporters and bringing more contribution consists of an arrangement with the ICT investment into the State state rail authority, VicTrack, to provide access to its $21.5 million, 517 km fi bre optic network, also used to • encouraging the Victorian ICT industry to provide signalling for the RFR project. Roll-out of the become more collaborative, for example infrastructure program is underway throughout regional through the formation of clusters Victoria and is due to be completed by early 2008. • facilitating better links between local ICT e-Research Centre companies and businesses in other industry The new e-Research centres at Parkville, sectors, including government Clayton/Synchrotron, Bundoora and Werribee will enable better and more collaborative research • fostering an environment for leading edge practices, by providing life sciences researchers in ICT research and development and innovation these precincts with greatly enhanced collaborative tools and connections to science instruments, data • helping to ensure that Victorian businesses repositories and high performance computing and have access to the ICT skills they need analysis capabilities. • ensuring that the Victorian ICT industry has access to world-class infrastructure and services.

Outcome 4 Connected Victoria 86

The Plan also committed to a new suite of policies for ICT Mission to India the procurement of ICT in government. These policies, In late October/early November 2005, the Minister affecting levels of liability, insurance and intellectual for ICT, led a delegation to India to attend that property ownership, provide the local industry with country’s most important ICT trade show, greater incentive and lower costs when tendering BangaloreIT. Key outcomes included: for government business. In particular, the Victorian Government is the fi rst government in Australia to • the opening of the Victorian Government reverse the default position on intellectual property, Business Offi ce in Bangalore allowing contractors to retain ownership of intellectual property developed under contract, and greater • the announcement that Value Chain Integration freedom to commercialise. would create up to 100 new jobs in Victoria

Trade Events and Export Assistance Program • Business Intelligence Technologies announced a $5 million distribution arrangement with MphasiS, The ICT Trade Events and Export Assistance an Indian-listed global business Program (Trade Fairs) came into effect in October 2005, doubling the amount of funding available • Bravura Solutions Limited announced its entry to assist Victorian small-to-medium enterprises into the Indian fi nancial services market via a (SMEs) to enter export markets and to help raise Bangalore offi ce and key distributors. awareness of export opportunities. ICT Mission to Japan More than 207 trade fair grants were provided In April 2006, the Minister for ICT led a mission to Victorian ICT companies, enabling them to to Japan to follow through on the success of the attend international trade fairs, conferences and Aichi World Expo held there in 2005. A delegation missions in 2005–06. This resulted in a projected of 21 organisations and over 26 individuals from $202.9 million in additional exports. the Victorian ICT sector participated, including www.mmv.vic.gov.au/tradefairs representatives from electronic games, eLearning, radio frequency identifi cation (RFID) and business Major events attended by Victorian ICT SMEs included software. Key outcomes included: trade shows in London (BETT 2006), Los Angeles (OFC and E3), and Hannover (CeBIT). The Minister • Box Hill Institute of TAFE is in discussions for Information and Communication Technology, regarding the provision of technical training in Marsha Thomson, also led three missions during the English to Japanese company staff. 2005–06 year, to India, Japan and Israel. • iFocus consolidated and extended its relationship with a major Japanese automobile manufacturer.

• MediaNet Productions formed a business relationship with a Japanese computer games publisher.

DOI ANNUAL REPORT 2005–06 87

• Tantalus Interactive announced a partnership • the formation of key business relationships with major Japanese publisher Kemco to including: commercial relationships — SIAG develop an innovative new racing title for the Commerce Solutions and dbMotion; strategic Nintendo Dual Screen platform. relationships — NICTA with Mekorot Water and Waterfronts; and research relationships • Clarinox Technologies appointed a Japanese — with Hadassah University Medical Centre, agent and is in discussions with a number Jerusalem College of Technology and of major players in relation to its embedded defence-related businesses. middleware software. Investment Attraction • iCrystal and Victorian Machine Vision are both The Government facilitated a series of new exploring opportunities in relation to tracking ICT investments in the State in 2005–06. These of livestock using RFID. investments secured more than $115 million in new capital investment and generated more than • Hardcat secured two new customers 1,000 new jobs. They included: — both have signed purchase agreements.

EMC • i4 software is being evaluated by a key potential Multibillion dollar global information management client. A Japanese company has been identifi ed and storage company, EMC Corporation, announced to assist with localisation of its product. it will expand its Victorian presence with 50 new jobs. The expansion will create new positions within • Yellowfi n software is being evaluated by at EMC’s Software Development Group in Melbourne least three companies interested in partnering. over the next 12 months, growing its total workforce ICT Mission to Israel in Victoria to 200. Minister Thomson also led an ICT industry mission CA comprising nine companies to Israel in April 2006. This American multinational announced plans The visit aimed to capitalise on the relationship to create up to 50 new positions at its Corporate between Israel and Victoria around VisTech, Centre of Excellence for Security. CA already a joint commercialisation fund, as well as exploring employs about 150 Victorians in its research and possible technology transfers and joint ventures. development laboratories in Mooroolbark and Key outcomes included: Richmond and is undertaking groundbreaking • the creation of up to 50 new jobs by Ness, an work in the eSecurity fi eld. Israeli ICT services company planning to expand Ness into Victoria Israeli ICT services company, Ness, committed • a strategic alliance between Victorian business to create its Australia – New Zealand headquarters Lochard and Israel’s Transtech to collaborate in Melbourne, creating 50 new jobs, following the both technically and commercially for the Minister’s visit to Israel in April. The company will global aviation market, especially on future service clients in the corporate and government airport technology sectors from its new offi ce. www.mmv.vic.gov.au/InvestInVictorianICT

Outcome 4 Connected Victoria 88

Clusters ICT Research and Development During 2005–06, a specialist cluster was established As part of the ICT Industry Plan 2005–2010, the in eLearning. More than 450 SMEs now participate in Government reinforced its commitment to assisting Government-facilitated clusters. To date, 11 clusters a fl ourishing ICT R&D community. The Plan aims to have been established, including computer games, maintain Victoria’s national leadership in R&D, which Victoria.Net, Open Source, RFID, ITS, Enterprise Java, accounts for around $303 million per year, or 36 per microelectronics and photonics. cent of the Australian total. www.mmv.vic.gov.au/ICTIndustry Many of Australia’s top ICT R&D spenders are based ICT Workforce Development in Victoria, including Telstra, NEC, Siemens, Robert The development of a high quality and capable ICT Bosch Australia, CA, Satyam, InfoSys, and Daintree workforce continued to be a Government priority in Networks. In 2006, CA announced it will be increasing 2005–06. With the ICT industry well into recovery its already substantial R&D investment in Victoria to and demand for ICT workers starting to exceed add a further 50 jobs to its local laboratories. supply in some areas, there is again the possibility of a future skills shortage. The Government has also allocated $19 million to the National ICT Australia (NICTA) Victoria The Victorian Government ICT Industry Plan 2005– Research Laboratory to double its ICT R&D capability. 2010 outlined new initiatives to help improve the These funds will be matched by Federal Government alignment of ICT courses with industry needs funding. This investment, which will leverage up to and to encourage more students to enrol for ICT $107 million from federal and industry sources, will be courses. Two of these initiatives are noted below: used to expand the node’s capability and to employ a further 80 high-level researchers and engineers. ICT Careers In May 2006, the Minister for ICT hosted an ICT Connecting Communities skills advisory group meeting at which industry and education stakeholders agreed to implement In December 2004, as part of Connecting a joint, coordinated strategy to boost ICT enrolments Communities: the second wave, the Government in 2007. To be rolled out in the fi rst half of 2006–07, committed an additional $9 million over four years to this will include a series of information sessions across support a range of initiatives aimed at increasing ICT the State to inform students, teachers and parents uptake by technologically disadvantaged communities. about the value of studying ICT. Programs under this commitment continued to be Industry/Education Collaboration implemented in 2005–06: During 2005–06, the Government also announced support for the establishment or expansion of • The $3.5 million Public Internet Access Program ‘industry-based learning’ programs in Victoria’s (PIAP) seeks to ensure that community-based universities and TAFE colleges. The programs free or affordable public internet access continues provide new opportunities for ICT students to to be provided to disadvantaged Victorians who secure an industry placement as part of their studies, would not otherwise have such access. Under increasing the relevance of their training to business PIAP, funding is provided to organisations to and giving them experience of the work environment. upgrade their existing computer equipment and/or subsidise their internet connection costs. Both of these pilot programs will be evaluated in 2006–07.

DOI ANNUAL REPORT 2005–06 89

• There were two funding rounds during the • The WellCONNECTED pilot project provided year, resulting in 88 organisations sharing laptops at home to improve the educational total funding of $560,000. A third PIAP funding and social outcomes of young people who round was in progress at the end of the fi nancial experience periods of absence from school year, and further funding rounds are scheduled due to a chronic medical condition. The project for 2006–07. was a partnership between the Government, www.mmv.vic.gov.au/communityprograms the Royal Children’s Hospital Education Institute and Telstra Countrywide. • The My Connected Community program aims to stimulate the development of online interest Concluding in August 2005, the project groups and encourages community groups involved 20 students undertaking the Victorian located in Victoria to create their own online Certifi cate of Education (VCE) or Victorian communities. During the year, the Government Certifi cate in Applied Learning (VCAL) across committed an additional $1.9 million to this 10 secondary schools. Eighty-six teachers highly successful program. In a fi fth funding completed the training. round, an additional 20 community organisations received a total of $400,000 and over 400 online Of the 17 students who were able to complete the communities were established. project, 13 achieved satisfactory VCE results and www.mmv.vic.gov.au/MyConnectedCommunity three successfully completed VCAL. Feedback from teachers, parents and students indicated • The Skills.net Roadshow was extended and that participation in the project contributed continued to target communities experiencing signifi cantly to each student’s achievement. ongoing disadvantage. In particular, this www.mmv.vic.gov.au/WellCONNECTED initiative targets people who have not been able to, and will not, gain access and skills eGovernment through a technology-enabled education sector or workplace. Working as a mobile internet Chief Technology Offi ce classroom that travels around Victoria, it assists The Chief Technology Offi ce (CTO) is responsible community groups by providing introductory for the procurement, implementation and the internet training and links new internet users to operation of whole-of-government ICT projects, local services where they can obtain ongoing products and contracts. Initiatives that the CTO public internet access. is currently managing include Victoria Online, TPAMS, Project Rosetta, the eServices Panel, Signifi cant results were achieved during 2005–06 the PC and Notebook Equipment Panel and Data by providing internet training to more than 1,400 Centre Services. people across 64 local government areas. www.mmv.vic.gov.au/SkillsnetRoadshow The CTO also administers a number of major whole-of-government contracts. The CTO works closely with the Offi ce of the Chief Information Offi cer (OCIO) in the Department of Premier and Cabinet (DPC) to ensure policy directions with Government ICT are consistent and translated effectively into practice. Details of initiatives implemented in 2005–06 are outlined below.

Outcome 4 Connected Victoria 90

TPAMS Rosetta TPAMS was established to provide a strategic The implementation of Project Rosetta continued framework for the procurement and management during 2005–06, and will provide the Government of telecommunications services across the whole with a secure, fl exible, electronic directory service. of the Victorian Government that would: Rosetta will deliver a synchronised, whole-of-Victorian- Government (WoVG) directory infrastructure to each • improve Government’s telecommunications Victorian Government department. An environment purchasing power of consistent and accurate data will generate benefi ts such as lowering administration costs and increasing • foster competition security and productivity. All departments implemented • improve telecommunications connectivity their enterprise level directory during the year. of Government www.mmv.vic.gov.au/Rosetta • facilitate new telecommunications infrastructure, eServices Panel especially in regard to regional Victoria. The eServices Panel has streamlined ICT procurement The implementation of TPAMS during 2005–06 and has leveraged a WoVG approach to competitive focused on fi nalising service transition, and market rates since its establishment in 2003. A panel considerable effort also went into managing of over 200 approved suppliers simplifi es the process ongoing supplier performance and forward planning. of securing ICT services in the Public Sector, reduces TPAMS has transitioned approximately 78,000 voice, overheads for Government, creates effi ciencies in mobile, data and managed telephony services to tendering and negotiations, reduces costs to the ICT date. This represents 99.3 per cent of all services industry and supports SMEs in gaining access to planned for transition. Government business.

TPAMS has increased Government’s purchasing In 2005–06, the CTO released a Request for Tender power by more than $200 million over fi ve years (RFT) to re-establish and improve the panel. It is the and led to approximately $200 million worth of new fi rst tender to adopt the Government’s new policies investment in telecommunications infrastructure in allowing contractors to retain ownership of intellectual Victoria including the roll-out to regional communities property they develop for the Victorian Government. of DSL technology. Since the panel’s inception in 2003, almost 1000 projects, with a combined value of around $50million As a result, enhanced communications connectivity have been awarded. has been delivered throughout the Victorian www.mmv.vic.gov.au/eServicesPanel Government by the near-completion of a common broadband data network infrastructure that provides improved services at a lower cost to Government. www.mmv.vic.gov.au/TPAMS

DOI ANNUAL REPORT 2005–06 91

PC and Notebook Equipment Panel Victoria Online In 2005–06, MMV established a PC and Notebook Victoria Online is the fastest way to fi nd government Equipment Panel, making early use of the State information and services. It is a specialised website Purchasing Contract Framework. For the fi rst time, the or ‘portal’ that helps citizens and businesses fi nd the Government now has a comprehensive panel that will information and services that exist on government eventually replace existing departmental agreements websites, and provides links directly to them. and will save government up to $20 million over the Its directory and powerful search engine enable next fi ve years through volume purchasing. Victorians to easily fi nd and access information and services from federal, state and local government. The PC and Notebook Equipment Panel provides a During 2005–06, a number of improvements were framework that will enable Government to standardise made to the site including: its fl eet of PCs and notebooks and reduce the different types of standard operating environments • browse function enhancements, enabling and their associated costs to departments. The easier and more successful information contract assures that both metropolitan and regional discovery for all users offi ces will receive value for money and high quality services, and also includes provisions for the • improved user interface to provide quicker environmentally-friendly disposal of old PCs and access to the most popular information notebooks at the end of their useful life. and services www.mmv.vic.gov.au/PCandNotebookPanel • the development of a Victoria Online Data centre consolidation project Thesaurus to improve search consistency. In late 2005, a contract was established to consolidate The Thesaurus recently won the Sir Rupert numerous Government data centres into just two Hamer Records Management Award for facilities. Cost savings have been achieved through Innovation and Excellence. aggregated purchasing power and the initiative has improved Government systems reliability and www.vic.gov.au availability. This initiative underpins other emerging standardisation opportunities across the Government.

Outcome 4 Connected Victoria 92

Major priorities for 2006–07

DOI, through Multimedia Victoria, will:

• continue to develop and implement strategies to leverage outcomes for Victoria from the Federal Government’s Connect Australia programs

• develop the model for the roll-out of next generation broadband networks (NGN) and applications more broadly across Victoria

• implement commitments made under the Government’s Moving Forward and Healthy Futures statements in relation to regional next generation broadband, telecommuting, and e-research initiatives

• implement the Victorian Government ICT Industry Plan 2005–2010 initiatives and programs including:

– ICT Skills Awareness Campaign

– Emerging Markets Strategy

• develop a whole-of-government approach to bridging the digital divide

• fi nalise the implementation of the remaining TPAMS data services sites and identify additional benefi ts by rationalising some telecommunication services and procuring internet services

• re-establish the eServices Panel.

DOI ANNUAL REPORT 2005–06 5 OUTCOME 5 RURAL AND REGIONAL DEVELOPMENT

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

DOI ANNUAL REPORT 2005–06 95 Outcome 5: Rural and regional development

Growing Victoria Together vision Thriving Economy

Growing Victoria Together goals

Growing and linking all of Victoria More quality jobs and thriving, innovative industries across Victoria

DOI output groups

Public Transport Services ICT Policy, Programs and Infrastructure Infrastructure Planning, Delivery and Management

DOI outputs

• Rural and Regional Public Transport Services • eGovernment Infrastructure • ICT Policy and Programs • Integrated Transport Planning and Policy • Public Transport Infrastructure Development • Road System Management • Freight, Logistics, Ports and Marine Development • Energy Policy Services

In June 2005, for the fi rst time this decade, the annual Victoria, with a 7.2 per cent increase over this period population growth rate in regional Victoria was greater in the total number of regional rail services available. than the metropolitan growth rate of 1.3 per cent. Nearly 1.4 million people — more than one in four The Geelong, Ballarat, Bendigo and Latrobe Valley Victorians — now live in rural and regional Victoria. rail corridors have been signifi cantly upgraded to accommodate new Regional Fast Rail services To support this population growth and associated between these regional centres and Melbourne. development in provincial Victoria, DOI provides Improved signalling and a new train safety system integrated transport, energy and ICT infrastructure have been installed along each corridor to enable and services to communities across the State. The more trains to operate on the system and travel at regional rail network, in particular, is being upgraded faster speeds. as part of an unprecedented renewal of regional transport infrastructure. Similarly, country passenger rail services are being returned to regional centres, with Ararat and Since 1999, there has been a signifi cant increase Bairnsdale services already resumed. Upgrade in the effi ciency and accessibility of public transport in options for the Mildura and Leongatha rail corridors were further developed during 2005–06.

Outcome 5 Rural and regional development 96

In its Provincial Statement, Moving Forward In addition to delivering road upgrades, VicRoads — Making Provincial Victoria the Best Place to contributed to the effi ciency of the road network Live, Work and Invest, released in November 2005, through its $230 million road and bridge maintenance the Government committed $50.8 million towards program. In 2005–06, 94 per cent of travel in regional signifi cant improvements to public transport in rural Victoria was on smooth roads and 99 per cent of the and regional areas of the State. network remained accessible to high productivity freight vehicles. Greater emphasis is being placed on joined-up initiatives across Government departments and Key achievements for VicRoads are reported in agencies, in association with local communities, Outcomes 1 and 2, and in the Statutory Authorities to respond to social, economic and environmental section in this report. For a full report, refer to needs in rural and regional areas. VicRoads Annual Report 2005–06 which is available on its website www.vicroads.vic.gov.au As part of the Government’s new approach to identifying and responding to local issues outlined In addition to road freight projects undertaken by under the Fairer Victoria Action Plan, each VicRoads, DOI’s activities to improve the effi ciency departmental Secretary has been given a specifi c of the entire transport chain, from the centres of region to ‘champion’ by engaging with the local production to their markets, are reported under communities and facilitating cross-government Outcome 6: Effi cient movement of freight. cooperation. DOI’s Secretary, Howard Ronaldson, is the champion for the Gippsland Region and DOI’s activities in the areas of Energy Policy and 2005–06 was the fi rst full year of operation of the ICT are also helping to reduce the divide between Gippsland Regional Management Forum. city and country by ensuring that people living in rural and regional areas have comparable access to ICT During 2005–06, DOI also continued to work on the services and infrastructure, including broadband, Transport Connections Program and the rural and and more equitable access to energy supplies. regional Multi Agency Policy Team, to develop better ways of delivering transport services in country Victoria. Major ICT initiatives such as TPAMS have reduced The Transport Connections Program helps to identify telecommunications costs across the Government by cost-effective opportunities to maximise transport $200 million, freeing up funds to deliver new programs options in areas where people’s choices are often limited. into rural and regional areas. The Strategy has also led to the provision of new telecommunications VicRoads makes a substantial contribution to the infrastructure throughout the State. Rural and Regional Development outcome through developing and managing Victoria’s road network. The Government’s Electricity Network Tariff and Gas In 2005–06 VicRoads completed the Craigieburn Heater rebates are aimed at making the energy costs Bypass and made signifi cant progress on other for non-metropolitan Victorians comparable with major Victorian road links including the Deer Park, those of consumers living in metropolitan Melbourne. Pakenham and Geelong bypasses, duplicating Other initiatives, such as extending natural gas to the Goulburn Valley Highway through Arcadia and more country Victorian towns, and encouraging the upgrading the Tullamarine-Calder Interchange, Calder development of renewable energy businesses such Freeway and Hume Freeway at Albury-Wodonga. as wind farms, are also bringing greater investment, VicRoads also completed 43, and progressed 23, employment and cheaper energy prices to rural and regional road development projects and completed regional centres. 113, and progressed 14, regional road safety infrastructure projects.

DOI ANNUAL REPORT 2005–06 97

Key achievements Work was substantially completed on the new V/Line statewide timetable following an extensive process Public Transport of consultation and customer research. In response to this feedback, the timetable provides more frequent Regional Fast Rail services in a better mix of stopping, semi-express and The Regional Fast Rail (RFR) project involves express services. It also features improved departure modernising long-neglected rail infrastructure and arrival times and more seating on peak services. between Melbourne and Ballarat, Bendigo, Geelong and the Latrobe Valley to provide a secure future for Coach services were revised during 2005–06 to regional rail services. connect with the new rail timetable and provide better local access in centres and smaller towns. Together with 38 new VLocity trains, a new train safety system and a new timetable providing more Regional service improvements services when people want to travel, the project will provide higher standards of connectivity, safety, Moving Forward initiatives reliability and comfort. In November 2005 the Government committed $50.8 million for improved regional public transport The RFR project represents the biggest upgrade of services across the state under the plan: Moving regional rail in Victoria for 120 years. Modern regional Forward: Making Provincial Victoria the Best Place rail services will promote regional development and to Live, Work and Invest. These include: job growth and make regional centres more attractive places to live, work and invest. • improved urban bus services in Ballarat, Bendigo, Geelong, Shepparton, Wodonga, the Latrobe The track and civil works were completed on all Valley and other centres, where applicable, four lines during 2005–06, and the new automatic to provide integrated services and improved signalling system and safety upgrades at level connections to the revitalised rail services to crossings were completed on the Ballarat, Bendigo and from Melbourne and Geelong lines. • bus service improvements in several regional Completing the major works on these lines enabled centres where there has been rapid population new VLocity trains to enter service at existing speeds growth or a long-standing need for improved on 22 December 2005 on the Ballarat line and, services, including Ararat, the Bellarine Peninsula, on 3 and 24 February 2006 respectively, on the Echuca, Kyneton, Mildura, Portland, Shepparton, Geelong and Bendigo lines. the Surf Coast, Wangaratta and Wodonga

Final signalling works have now been completed • new services for remote communities including on the Latrobe Valley line. Donald, Jeparit, Sea Lake and Woomelang

The new fully computer-controlled signalling system • major new ‘Parkway’ developments on each will provide improved reliability and train control along of the fi ve regional rail corridors into Melbourne the upgraded corridors and enable more frequent at Drouin, Lara, Wallan and on the Ballarat and services to operate. Bendigo lines. Parkways provide free, secure car parking; covered walkways; proximity to During the year, 28 VLocity trains were delivered into major highways; quicker, more reliable travel service, after extensive testing and driver training. The times; and cheaper costs in comparison to trains have been well received by V/Line customers. driving the entire journey.

Outcome 5 Rural and regional development KATE VALLENCE 98

V/Line Commuter, Geelong to Melbourne

During 2005–06, local bus service improvements I’ve been commuting from Geelong to Melbourne, were implemented in Ballan, Ballarat, Daylesford, where I work, for almost two years. Geelong, and Mt Egerton, and detailed planning was completed for the remaining initiatives to be The new VLocity trains are so modern and introduced in the second half of 2006. comfortable and since the track works have been completed, the ride is also a lot smoother. New V/Line timetable The seating is more spacious than in the old locomotive trains. They are also more effi cient A new V/Line timetable was developed after a when it comes to pulling in and out of stations, considerable amount of analysis, extensive customer so the trip feels much more continuous. research, and community consultation following a draft released in December 2004. I was a commuter before any of this work was done and now it is just a far more enjoyable To be launched in September 2006, the new experience. From what I’ve experienced timetable better refl ects the needs of workers, travelling overseas, our new trains are very students and other travellers and provides: modern and are on a par with the best there is in other parts of the world. Anyone who • 401 extra services a week to and from comes to Victoria and travels out of Melbourne regional centres on one of these new trains is going to be • express services during peak periods thoroughly impressed. and semi-express services to ensure stops As a commuter, one of the most important at key locations aspects for me is punctuality — having the • faster travel times on trains capable of speeds trains run on time — and so far the VLocity up to 160 kilometres per hour trains are doing really well in this regard on the Geelong line. I talk to a number of my fellow • increased frequency and extended hours commuters and we are all looking forward to the of service introduction of the new timetable with its faster and better services and to leaving the delays • easier to understand timetables and frustrations of the past behind.

• more convenient travel with better bus service connections.

The integrated rail and coach timetable will be introduced on RFR corridors once the new train safety system has been fully activated and train drivers have been trained. In the case of the Latrobe Valley line, it will be at the completion of the signalling upgrade and the testing and driver training period.

DOI ANNUAL REPORT 2005–06 99

New ways of delivering services Marshall Railway Station Three trial initiatives using innovative bus services Services to the new $5.8 million Marshall Railway were introduced in 2005–06: Station in Geelong began in April 2005. In late September 2005, another four services each A demand-responsive Mallacoota–Genoa bus service weekday were extended to originate or terminate at commenced on 15 December 2005, providing the new station, making a total of 58 services a week. access to V/Line bus services for the remote East Gippsland township of Mallacoota. Local input from From Monday to Saturday, the station offers bus the Transport Connections Project was important in connections to Barwon Heads, Belmont, Deakin identifying this opportunity. University, Grovedale, Highton, Ocean Grove and Waurn Ponds, providing access to train services A new Burrumbeet–Ballarat bus service, providing for people living and working in Geelong’s growing access for small townships west of Ballarat to the southern suburbs and nearby Surf Coast communities. city centre, local shopping centres and rail services, commenced on 23 January 2006. The Overland services DOI led negotiations with Great Southern Railway Again through the Transport Connections program, (GSR), operators of The Overland train from DOI assisted Bass Coast Shire Council with a Melbourne to Adelaide, to redefi ne the train’s role successful trial of a bus service between Cowes and in Victorian public transport. Wonthaggi. The service will become a full-time service under the Moving Forward plan for provincial Victoria. The Overland was formerly an overnight service from Melbourne. Since February 2006, it operates to a New evening services were introduced to Seymour daylight timetable, providing attractive travel times in January 2006, providing a 7.30 pm service for for the regional Victorian centres of Horsham and commuters to Seymour and an additional late evening Ararat and surrounding communities. Patronage from service to Melbourne. Horsham has increased by more than 200 per cent and is continuing to grow steadily. Over 30 regional school bus routes were reviewed to maximise the performance of the regional school A $2.4 million refurbishment of The Overland train bus network. Little-used services were withdrawn carriages will also be undertaken, and will offer and new services added to meet demand in growing customers new seating, café and lounge cars. regional centres. Work will continue in 2006–07 to fully include The Overland in Victoria’s fares system and to Sherwood Park Railway Station better integrate services along its route. The new Sherwood Park Station at Deakin University, Warrnambool, was opened in February 2006. The Melbourne–Sydney XPT services new services depart Sherwood Park for Melbourne on In association with the Government of NSW, the XPT Friday evenings at 5.45 pm and return on Sunday night train fl eet that provides Melbourne–Sydney services at 10.02 pm, providing students and staff with another will receive a $35.8 million refurbishment, including transport choice and allowing students to travel to and repainting, new interior furnishings for all carriages from Melbourne and Victoria’s south-west coast on and upgrades to refreshment and toilet facilities the weekends. The Government contributed almost and to the trains’ twin power cars. During 2006–07, $1.1 million toward the construction of the new railway signifi cant improvements to the XPT’s timetable station and Deakin University contributed $60,000. will offer travellers along the line a wider choice of travel times.

Outcome 5 Rural and regional development 100

Mildura and Leongatha The Bendigo counter-peak service, with connecting public transport services bus services to Latrobe University Bendigo Campus, An additional train service to Swan Hill, with a Bendigo TAFE and Bendigo Hospital commenced in connecting coach service to Mildura, commenced late February 2006. at the start of April 2006, providing improved public transport services while restoration options A major upgrade was completed at Bendigo Railway are developed on the Mildura railway line. Service Station in December 2005, creating a landmark bus improvements associated with this initiative include: interchange. Long-distance buses are now using the facility and town buses will make greater use of the • improved services for Boort and Quambatook, interchange with the introduction of the new V/Line including Friday evening services aimed at timetable in September 2006. meeting the needs of young people Regional infrastructure works in 2005–06 also • simplifi ed and improved services for Manangatang, included the upgrade of 11 shelters in the Ballarat providing regular access to Swan Hill urban network, with procurement of another 18 shelters under way. • a trial of day-return services to Swan Hill from Balranald New and refurbished trains

• later evening services to Swan Hill on Fridays The thirty-fourth of 38 new VLocity trains was delivered on 9 June 2006, with the remaining four • a trial Sunday service from Boort to Pyramid Hill trains to be progressively delivered by the end of with train connections. September 2006. The trains won a 2005 Australian Design Award in the Automotive and Transport A scoping study for the restoration of passenger category for excellence in Australian product design rail services to Leongatha has commenced. and innovation. Assessments on the road and pedestrian crossings are currently being conducted. In November 2005, as part of the Moving Forward statement for provincial Victoria, a $13 million program Ballarat and Bendigo services to re-fi t the majority of V/Line’s regional fl eet of For the fi rst time in the history of the Ballarat and locomotive-hauled carriages and Sprinter rail cars was Bendigo railway lines, trains from Melbourne arrived announced. The two-year program will be completed in these cities before 9.00 am with the introduction by the end of 2006–07 and involves fi tting the fl eet with of counter-peak trains on these lines. new soft furnishings, upgraded toilets and washrooms and a fresh exterior livery to complement the new The Ballarat counter-peak service, with connecting VLocity trains. This will give V/Line rail passengers Trainlink bus services to Ballarat Hospital, Stockland improved standards of comfort and amenity. Wendouree Shopping Centre and the University of Ballarat, commenced in mid-January 2006.

DOI ANNUAL REPORT 2005–06 101

Free travel during the festive season Transport infrastructure

The Government again provided free travel on all Country Train Safety System V/Line services on Christmas Day 2005 and on Safety is an absolute priority in public transport, services after 3.00 pm on New Year’s Eve 2005. and the 2005–06 budget allocated funds for a train Regional passengers were also able to travel home protection system to ensure compliance with signals for free on the fi rst service on each line on New Year’s on the RFR lines. The Country Train Safety System Day 2006. To help Victorians visit their family and project will deliver increased safety standards on friends on Christmas Day, V/Line ran 14 additional the RFR lines by fi tting a system known as the Train services on the day. Protection Warning System (TPWS).

V/Line services during Games Sensors have been fi tted at 600 locations along the Travelling to Commonwealth Games events was RFR corridors. These sensors detect trains travelling made easier for people living in rural and regional at excessive speeds or failing to stop and trigger Victoria with the introduction of a fl at $10 return the safety system. TPWS equipment has also been ticket for people with Games tickets. This meant installed in the V/Line Passenger fl eet to communicate that a person could travel from anywhere in the with the trackside units and automatically apply the State to see a Games event in Melbourne, and return train brakes if required. home, for a maximum cost of $10. The discount applied to travel on the day of, or the day before or The TPWS equipment is operational on the Ballarat, after the specifi c sporting event or events, to enable Bendigo and Geelong corridors and installation on the country residents to stay overnight in Melbourne. Latrobe corridor is scheduled for completion in the second half of 2006. TPWS equipment fi tted to the V/Line also operated an additional 224 services, V/Line fl eet will be progressively activated to provide including extended operating hours and additional a fully-integrated operational safety system during the late-night services. third quarter of 2006.

As a result, V/Line experienced record patronage Wodonga Rail Bypass levels, carrying 75 per cent more passengers than in The Government has completed the acquisition of the equivalent weeks last year. Of the extra 150,000 land for the Wodonga Rail Bypass and is relocating trips on V/Line services, more than 100,000 were by sewer and water main services in order to facilitate people taking advantage of the discounted fares to construction. Detailed engineering design is under way. travel to Games events. Commercial negotiations are also progressing with Victoria’s 856,000 Seniors Card holders were offered track lessees Pacifi c National and the Australian Rail free public transport in the lead-up to the Games, Track Corporation. including free regional travel on V/Line services on 4, 7, 8, 9 and 11 March 2006, and free travel on local, The project involves constructing a fi ve kilometre regional bus services from 5 to 12 March 2006. double-track rail bypass of Wodonga and includes a new Wodonga Station and a new log terminal at Barnawartha. The bypass will improve safety and amenity in Wodonga and help to improve the effi ciency of freight and passenger services between Victoria and New South Wales.

Outcome 5 Rural and regional development 102

The Victorian Government has committed a further An example of Transport Connections in action is the $55 million to the project, bringing its total investment ‘Valley to the City’ pilot project in the Alpine Shire. to $85 million. Federal funding of $20 million has The project team identifi ed an overlap between a been committed and additional AusLink funding is public route bus service and a community transport being sought. service run by the local health care agency. These services both ran on the same day, from Mt Addressing local transport needs Beauty to Wodonga and Albury. To remove this duplication, it was agreed that the route bus would Transport Connections Program reserve a number of seats for health service clients. Recognising the additional needs of these clients, the The Transport Connections Program was established route bus operator also agreed to pick up passengers in 2003 to trial community-based responses to the on demand and included new stops at hospitals access and mobility needs of isolated areas. Nine and other health specialists. The service was also pilot projects were funded for a three-year period, extended to an extra day per week. eight of these in rural and regional Victoria and one in a metropolitan interface area. This program is For a relatively small amount of additional public to be extended and expanded under Meeting Our investment, the community now has a more frequent Transport Challenges (there referred to as ‘Flexible and responsive bus service. There has been an Transport Solutions’). increase in average daily patronage, and improved cooperation on local transport issues. It has also freed Transport Connections aims to make better use up the community bus to be used for other purposes. of existing local transport resources through new and coordinated approaches. Improved An independent review of Transport Connections, communication and cooperation between local conducted during 2005–06, indicated that the transport service providers — community transport, program had: public transport and taxi operators — is seen as an important feature of this process. Similarly, as there • improved the provision of information about are areas where public transport is not a realistic transport options option, projects have been encouraged that seek sustainable alternatives to addressing transport • improved access to community services needs. Local responses have included: and activities

• promoting existing transport services • led to better coordination among local agencies and subsidies • improved the range and nature of transport • developing local demand-responsive services options in most pilot project areas.

• improving coordination of community transport services

• adjusting public bus routes to better meet passenger requirements.

DOI ANNUAL REPORT 2005–06 103

Access and mobility in rural and regional areas Championing Gippsland The second stage of the Multi-Agency Policy Team Under the Government’s social policy action plan, (MAPT) project on access and mobility in rural and A Fairer Victoria: Creating Opportunity and Addressing regional areas was established and completed in Disadvantage, regional management forums have 2005 and 2006. It focused on developing solutions been established to assist with the integration and to systemic access and mobility issues faced coordination of programs and services across State by people living in Victoria’s rural and remote and local governments. To support this initiative communities and Melbourne’s interface areas, departmental Secretaries have taken on roles as using an across-Government approach. The project ‘champions’ of joined-up action in each of the regions. was jointly sponsored by the Secretaries of DOI and Department of Human Services (DHS), with DOI’s Secretary, Howard Ronaldson, is the Champion DOI as the lead agency. Several other Government of the Gippsland Region. In this role, Howard is departments also contributed to the project. convenor of the Gippsland Regional Management Forum (RMF), which was established in 2005 to Most of the Policy Team’s recommendations facilitate joined-up initiatives and improved service will be pursued through initiatives outlined in the delivery in the region. Meeting Our Transport Challenges statement, such as improvements to taxi services, the provision The Gippsland RMF comprises state government of more demand responsive services, and changes regional managers and the chief executive offi cers to regulations, and the expansion of the Transport of the six municipal councils in the region. During Connections Program (launched as ‘Flexible the year, membership was expanded to include Transport Solutions’). representatives from the Country Fire Authority, Aboriginal Affairs Victoria and the Gippsland The project has been instrumental in strengthening Integrated Natural Resources Forum. cross-government linkages and working relationships, which was particularly demonstrated In 2005–06, Gippsland RMF members collaborated in the development of the Transport Connections to resolve priority issues for which integrated planning Program and other demonstration projects, such and service delivery were identifi ed as critical to as the recently announced joint project known as achieving effective outcomes. Achievements in the the Gippsland School Bus Flexibility Project, to be priority areas of sustainable development, improved undertaken by DOI and the Department of Education transport access and safety, integrated planning and and Training. It has also led to more effective neighbourhood strengthening included: transport solutions, with better rural and regional access outcomes. • launching a joint Victoria Police-V/Line Bicycle Patrol to enable police to undertake bicycle The MAPT project’s research and fi ndings have been patrols in seven towns between Drouin and important in raising awareness about rural access Traralgon using V/Line services issues and barriers to fl exible transport solutions in other government processes, contributing to the • improving the links between local and state Essential Service Commission’s Review of Taxi Fares governments and the water sector regarding and the Government’s Country Taxi Review. key water issues, including Gippsland Lakes management and sustainable water strategies, with a workshop planned in 2006–07 to establish a Gippsland Water Strategy

Outcome 5 Rural and regional development 104

• contributing to the development of the Gippsland Economic growth and Regional Development Strategy, which will provide community development an integrated approach to addressing economic, Natural Gas Extension Program social and environmental issues in the region The Natural Gas Extension Program is a $70 million investment by the Government that provides fi nancial • addressing the aspirations outlined in the East support to projects that connect regional areas to Bairnsdale Community Building Project through the reticulated gas network. DOI provides policy a joined-up approach across 14 Government support and advice to Regional Development departments and agencies in partnership with Victoria (RDV) on its implementation of this important the East Gippsland Shire Government initiative.

• developing a joined-up initiative to improve As at 30 June 2006, 34 towns were announced employment outcomes for indigenous residents, as recipients of funding support for extensions, including those at Lake Tyers Aboriginal Trust. and construction work had already commenced in Yarra Glen, Wandin, Seville, Seville East, Woori Energy — access and equity Yallock, Yarra Junction, Launching Place, Wesburn, Millgrove, Bairnsdale, Paynesville, Somers, Balnarring, Network Tariff Rebate St Andrews Beach, Hurstbridge, Creswick, Port Fairy The Government’s Electricity Network Tariff Rebate (which includes parts of Koroit), Woodend, Macedon, scheme was extended for a period of three years from Gisborne and New Gisborne. 1 April 2005 and therefore continued to be applied during 2005–06. Interval meters In 2005–06, DOI commissioned a study to investigate The scheme is designed to eliminate the difference the potential benefi ts of moving to advanced between the annual bills of rural, regional and outer (electricity) meters with enhanced functions, as part suburban electricity consumers using up to the of the Essential Services Commission’s (ESC) average level of electricity usage of comparable program to replace existing meters with time- consumers in the metropolitan area. With the interval meters. A range of features were examined, exception of some high volume, small business highlighting rural and regional electricity consumers consumers, above-average use of electricity is as benefi ting greatly from the potential for improved not subsidised under this program. quality of supply monitoring, remote meter reading and tariff fl exibility. Gas Heater Rebate More information about DOI’s work to roll-out interval Rural and regional energy costs have been further meters in Victoria is reported in Outcome 7: mitigated by a $2.5 million Gas Heater Rebate that Secure and sustainable energy supply. pays up to $1,000 to help non-metropolitan Victorians replace ineffi cient electric and wood heaters with environmentally friendly gas, saving up to 70 per cent on energy bills.

DOI ANNUAL REPORT 2005–06 105

Revisions to the retail price path ICT Access Rural electricity consumers benefi ted further from cuts in distribution prices in 2006 under the ESC’s Regional telecommunications electricity distribution price determination for A number of initiatives listed under the Outcome 4: 2006–10. The price determination triggered a Connecting Victoria section of this report also made renegotiation of the Government’s retail price path a signifi cant contribution to development in rural by the Minister for Energy Industries, which resulted and regional Victoria during the year. Initiatives such in signifi cant reductions in consumer bills. as TPAMS, the Broadband Innovation Fund, and Connecting Communities programs — including Energy Technology Innovation Strategy (ETIS) My Connected Community, the Public Internet Access The Victorian Energy Technology Innovation Strategy program, and the Skills.net Roadshow, all enhance (ETIS) was fi rst outlined in the Greenhouse Challenge information and communication technology services for Energy position paper, which was launched in to businesses and the public, reduce inequalities in December 2004. It aims to provide coordinated public access to information technology, and provide support for pre-commercial energy and energy-related information technology training to people in rural and technologies across the research, development, regional areas. demonstration and commercialisation (RDD&C) supply chain. While the Department of Industry, Innovation Regional initiatives for 2005–06 included: and Regional Development (DIIRD) has managed the ETIS process, DOI has provided leadership to maintain • TPAMS was negotiated successfully, which has Victoria’s low-cost energy advantage as we move resulted in Victorian Government departments’ towards a carbon-constrained future. telecommunications costs being almost $200 million lower over the next fi ve years, assuming the The strategy provides a commitment to the same pattern of use. This makes the introduction development of clean brown coal technologies of new programs, such as the provision of fi bre which will support ongoing investment in the optic broadband for schools, possible. Latrobe Valley region. • In addition, nearly $200 million worth of ICT See Outcome 7: Secure and sustainable energy infrastructure, which will be delivered across Victoria, supply, for more information on the ETIS. has been facilitated through TPAMS. This includes upgrades to over 600 exchanges across the state Renewable Energy Technologies by the Government’s broadband supplier, Telstra, The Government is strongly committed to growing the which will give around 150 towns access to business renewable energy sector, recognising that renewables grade broadband services for the fi rst time. Another can reduce greenhouse gas emissions and provide 20 towns will be able to access ADSL services for a sustainable supply of energy. Since renewable the fi rst time. The Government’s fi xed voice supplier, technologies, particularly wind, operate most Optus, has already provided competitive broadband effectively outside city and suburban areas, they also services to more than 40 towns as part of the provide for substantial investment in rural and regional TPAMS contract. Further information about TPAMS areas of Victoria. is reported under Outcomes 2 and 4.

More information about DOI’s work to promote • The series of Spend/Demand — renewable energy technologies in Victoria is reported Telecommunications in Regional and in: Outcome 7: Secure and sustainable energy supply. Rural Victoria reports provided profi les of telecommunications demand and expenditure throughout rural and regional Victoria.

Outcome 5 Rural and regional development 106

Major priorities for 2006–07 Transport Connections will be led by the Department of Victorian Communities (DVC), while DOI, the Public Transport Department of Human Services (DHS) and the Department of Education and Training (DE&T) New V/Line train and coach timetable will act as sponsors of the program. The Government’s investment in new trains and improved rail infrastructure in regional Victoria will be Regional tourism infrastructure realised with the introduction of the new V/Line train and coach timetable in September 2006. Improved Hepburn Spa Bathhouse connections of bus and coach services will be The Hepburn Spa Bathhouse is a much-loved tourist reviewed to widen the range of destinations served destination that has been recently listed on the and improve the reliability of long distance travel. Victorian Heritage Register. Joint funding from the State and Federal Governments and Hepburn Shire Rural School Bus Safety Council is underpinning the redevelopment of the The Government is investing a further $18.6 million facility to meet the increased demands of health- over 10 years, commencing in 2006–07, to upgrade orientated tourists. MPV is responsible for delivering additional sites under Stage 2 of this program. the redevelopment.

V/Line safety upgrade ICT Access The Government has committed $8.2 million towards fi tting 85 N-, S- and Z-class locomotive-hauled trains Regional telecommunications in V/Line’s fl eet with safety-door mechanisms that During 2006–07, DOI, through Multimedia Victoria, will: prevent the doors from being opened by passengers while the train is moving. This fi t-out will begin in • continue to develop and implement strategies to 2006–07 and be delivered over two years. leverage outcomes for Victoria from the Federal Government’s Connect Australia program Wodonga Rail Bypass • implement commitments made under the Work on the Bypass is in progress with relocation Government’s Moving Forward and Healthy of services and detailed design underway. Futures statements in relation to regional next-generation broadband, telecommuting, Addressing transport needs and e-research initiatives

Transport Connections Program • develop the model for the roll-out of next Following the success of the pilot Transport generation broadband networks (NGN) and Connections projects, an expanded program was applications more broadly across Victoria recently announced as a component of the Meeting Our Transport Challenges statement. • develop a Digital Divide Strategy — a whole- of-government approach to bridging the digital The new Transport Connections Program will divide. This will involve building a more effective support up to 30 projects over the next four years. and coordinated suite of activities focused Communities in rural and regional Victoria will be on internet access and training. At the centre targeted, with metropolitan interface municipalities of the work will be the existing Connecting also eligible for support. As well as increasing the Communities: the second wave policy number of local projects underway, funds will also framework released by the Minister for ICT be made available to implement fl exible transport in late 2004. services and other minor infrastructure works that improve local access and mobility.

DOI ANNUAL REPORT 2005–06 6 OUTCOME 6 EFFICIENT MOVEMENT OF FREIGHT

Plan and deliver infrastructure and a regulatory regime to improve effi ciency and safety in the freight and logistics sector while reducing environmental and community impacts caused by the movement of freight.

DOI ANNUAL REPORT 2005–06 109 Outcome 6: Effi cient movement of freight

Growing Victoria Together vision Thriving Economy

Growing Victoria Together goals

More quality jobs and thriving, innovative industries across Victoria Growing and linking all of Victoria

DOI output group Infrastructure Planning, Delivery and Management

DOI outputs

• Integrated Transport Policy and Planning • Freight, Logistics, Ports and Marine Development • Traffi c and Transport Management • Road System Management

The freight and logistics sector contributes The growth in world trade is expected to drive approximately 13 per cent of Victoria’s Gross State up container traffi c through the Port of Melbourne Product. It is the third largest industry sector in the to more than two and a half times current levels State and directly employs 110,000 people. As the by 2020. The Port currently handles over $70 billion economy grows, the demand for more effi cient and in trade annually and is a major contributor to the cost-effective freight transport services is increasing. Victorian economy. More than 98 per cent of Victoria’s exports and imports are transported by sea. The size of the freight task facing the State is expected to continue growing signifi cantly. Freight volume is The Australian Council for Infrastructure Development expected to grow by 70 per cent (to around 580 million cites deepening the channels to the Port of Melbourne tonnes) by 2020. The freight task (tonne-kilometres) is as Australia’s most valuable infrastructure project, with expected to grow by 80 per cent over the same period. the potential to add $14.8 billion to GDP by 2030. The Government’s Victoria: Leading the Way Economic The Linking Melbourne: Metropolitan Transport Plan, Statement, identifi es the project as a major strategic released in late 2004, outlined the Government’s initiative for securing the Port’s status as Australia’s intention to make the best use of existing freight premier container port. Based on projected shipping and logistics infrastructure and to invest where trends, deepening the channels is expected to necessary to overcome critical bottlenecks and to maintain the international competitiveness of the Port develop the transport system to support industry for at least another 30 years. and economic growth.

Outcome 6 Effi cient movement of freight 110

Channel deepening is supported by Government There is also a commitment to upgrade the subject to environmental approvals. Mildura rail line to allow greatly improved freight services to north-west Victoria. Trial dredging in Port Phillip Bay was completed during 2005-06, and the Port of Melbourne These projects will commence in 2006–07 and Corporation (PoMC) continued work on the be reported next year. Supplementary Environmental Effect Statement (SEES), which is due for release by the end of 2006. VicRoads contributes to the effective fl ow of freight and commercial traffi c by managing and developing The Government set a target in its Growing Victoria the arterial road network and other major road freight Together policy framework of achieving a 30 per links. VicRoads’ key achievements are reported in the cent share of freight tonnage transported to and from Statutory Authorities section of this report. The Port of Victoria’s commercial ports by rail. In the 1990s, the Melbourne and Port of Hastings corporations, and the port rail modal share was approximately 10 per cent. Victorian Regional Channels Authority, also contribute By 2004–05, the rail modal share of port freight had to this Outcome and report their achievements for the increased to around 17 per cent. year in the Statutory Authorities section.

The Government’s primary focus has been on improving rail access to the ports to increase the capacity and cost-effectiveness of rail freight as an option for importers and exporters. This has led to a number of signifi cant planning and infrastructure projects, including the Melbourne Port@L strategy, Dynon Port Rail Link, improved rail access to the Port of Geelong, and development of the Wodonga Rail Bypass. The grade separation of Footscray Road from the direct rail lines to Swanson and Appleton docks, as part of the Dynon Port Rail Link project, will provide additional rail capacity essential for the Government’s rail-freight target to be met.

Meeting Our Transport Challenges commits funding to several key infrastructure projects that will improve rail freight links including upgrades of critical arterial road infrastructure and other congestion-reducing initiatives. A major focus will be on improving the road links between east and west Melbourne through a $1 billion Monash-West Gate improvement package, including strengthening works on the West Gate Bridge.

DOI ANNUAL REPORT 2005–06 111

Key achievements Mildura rail corridor upgrade

Rail access regime Following the return of passenger rail services to Ararat and Bairnsdale in 2004, the Government In July 2004, the Government announced that it allocated funding in the 2005–06 State Budget for would reform the Victorian Rail Access Regime investigations on the Mildura corridor. to facilitate third party access to the Victorian intrastate rail network. These investigations revealed that the rail line to Mildura fell into alarming disrepair following the The reform was enacted during 2005 and 2006. closure of the Vinelander service in 1993 and Following passing of the Transport Legislation privatisation of the infrastructure. The rail line now (Further Amendments) Act 2005 in May 2005, requires substantial investment, even to maintain the Pricing Order and the Declaration Orders were freight operations. gazetted, and the remaining unproclaimed sections of the Act were enabled on 1 January 2006. The new As the fi rst major step towards returning passenger legislation amended the Rail Corporations Act 1996 rail services to Mildura, the Government announced to promote above rail competition on the Victorian in May 2006 that it will undertake a $73 million intrastate rail network by enabling third-party access freight upgrade on the Mildura corridor, $53 million to the network. of which is State funded and $20 million of which is subject to the release of AusLink funding from The new access regime provides for as-of-right the Federal Government. prices and other terms and conditions under which train operators are able to use the country intrastate A project agreement is being negotiated between rail network. It introduces a workable third-party DOI and the infrastructure lessee, Pacifi c National, access regime in Victoria and is intended to promote and works to upgrade the line are expected to competition in rail freight services, and effi cient pricing commence later in 2006–07. of, and fair access to, rail infrastructure and services. The freight upgrade is scheduled for completion During the fi rst half of 2006, access providers within two years and will focus on creating a faster, submitted their proposed terms and conditions more reliable rail link suitable for 80 km/h freight to the Essential Services Commission (ESC). The train operations. This will improve rail operations, ESC sought submissions from interested parties, reducing costs to customers and making rail more including DOI, before considering its response. The competitive with road. ESC rejected the providers’ proposed terms and conditions and established revised arrangements Signifi cant investment must occur to rehabilitate to apply for the next three years. Pacifi c National is the track before standardisation is viable. Sleepers appealing the ESC determination. to be installed as part of the upgrade will be gauge convertible, compatible with future standardisation.

Outcome 6 Effi cient movement of freight IAN WATT 112

Head of the Australian delegations to UN/CEFACT

Channel Deepening – trial dredging As Head of the Australian delegations to UN/CEFACT (United Nations Centre for Trade The Port of Melbourne Corporation is expected to Facilitation and Electronic Business) it is my complete its Supplementary Environmental Effects role to highlight the advantage that the Centre’s Statement by the end of 2006. products and services could be to Australian business and Government. Conversely, I also Trial dredging commenced in early August 2005 help to determine the contribution that Australia and was completed ahead of schedule at the end can make to the development of the Centre’s of the following month. The trial successfully met its products and services. objectives and was completed within its $32 million budget. All costs were met by the PoMC. Other DOI is one of the fi rst organisations to use the signifi cant milestones achieved to date, include: UN/CEFACT guidelines to develop a detailed supply chain model. By developing the Port • completion of a Study Design Report to provide of Melbourne supply chain model, DOI has a basis for developing the SEES documentation taken the lead nationally, positioning itself as a best-practice organisation in this regard. • development of a new, more robust, risk management framework for the project A supply chain model maps the end-to-end lifecycle of a supply process. In the case of the • completion of the channel design process Port of Melbourne, it provides a detailed, multi- for the project to be used as the basis of the layered outline of how processes, stakeholders project defi nition for the SEES. and technology interact. Mapping a supply chain requires the model developers to engage Once completed, the SEES will be publicly exhibited with a cross-section of businesses and trading for at least six weeks. Following this, an independent partners and provides a common hymn book panel will be appointed and public hearings held. for all to sing from. By increasing understanding and awareness of the supply chain, the model The project will then be subject to State and Federal can be used as a business improvement tool. Government approvals.

I am also a member of UN/CEFACT’s The full fi ndings from the trial dredging are being business reference group for Global Supply subjected to peer-review and consideration by the Chain Reference Model and Harmonisation. project’s independent expert group as part of the In this group, we are mapping the international SEES process. The fi ndings are being published on trade supply chain and we are using the Port the PoMC website. of Melbourne model as an example of using a world’s best-practice approach. The model has been received with much enthusiasm and support, both internationally and nationally. Working with people who are progressing these standards is very enjoyable, and I believe the result has lasting value to the Australian community.

DOI ANNUAL REPORT 2005–06 113

Smart Freight Among its high profi le supporters, the Model is now being used nationally by the Australian Customs The Smart Freight initiative seeks to lift the level Service as a part of its offi cer training and education of information and communications technology used programs, while internationally, the United Nations in the container import/export process, promote Centre for Trade Facilitation and Electronic Commerce sharing of (non-commercial) information and thereby (UN/CEFACT) plans to use the Model as the basis for improve the effi ciency of supply chains. a global supply chain reference model.

Port supply chain model Melbourne Port@L The Port of Melbourne Supply Chain Model was commissioned as part of the Smart Freight project Melbourne Port@L is an initiative to develop a long- to help the Government and industry fi nd ways to term strategic framework for integrating the Port of improve effi ciency and reduce congestion at the Melbourne and the adjacent Dynon rail terminals Port of Melbourne. This is done through mapping into a cutting-edge intermodal precinct catering for the import and export processes at the Port, the effi cient movement of freight between transport demonstrating how and where stakeholders in modes (ie. road, rail and sea). the chain interact, the transactions which take place and the technology used. A ‘consultation draft’ of the Melbourne Port@L Strategy is expected to be released in conjunction By improving awareness and understanding of the with the PoMC’s draft Port Development Plan, Port’s supply chain, the Model can assist decision in August 2006. making by relevant businesses and stakeholders and identify areas for increased effi ciency across The Melbourne Port@L Strategy will be a key driver the import and export process. in the transformation of the Port of Melbourne and Dynon areas and is central to realising the DOI’s development of the Supply Chain Model was Government’s freight policies and strategies, a fi rst for the Australian freight and logistics sector including the Growing Victoria Together target and the result is attracting international attention. of achieving 30 per cent port-rail mode share.

The Port of Melbourne Supply Chain Model is currently being demonstrated to government, industry and educational institutions. It is an excellent training reference for students and new entrants to the freight and logistics sector; provides a cost-effective, value-adding architectural map of the supply chain to small and medium enterprises; and helps port users and operators identify opportunities for process re-engineering, integration or automation.

Outcome 6 Effi cient movement of freight 114

Dynon Port Rail Link Port of Hastings — planning study

In April 2006, the Federal Minister for Transport and The Victorian Ports Strategic Framework, published Regional Services and Victoria’s Minister for Transport in November 2004, identifi es the Port of Hastings launched the jointly funded Dynon Port Rail Link project. — with its natural deep water, land availability and proximity to Melbourne’s south east — as The Federal Government is committing $110 million the preferred port to be developed for container in AusLink funding to the project, which will build operations once the Port of Melbourne reaches a road overpass to eliminate a level crossing on capacity beyond 2030. Footscray Road. The PoMC is also contributing funds to the project. The single, dual gauge track that The Meeting Our Transport Challenges action plan crosses busy Footscray Road currently provides the recognises the strategic importance of identifying and only rail access into the Port of Melbourne. securing future transport corridors, including freight corridors, to the Port of Hastings. The improved rail link that will result will increase the amount of rail freight that can be carried into the Port, In July 2005, the Port of Hastings Corporation, boosting effi ciency and reducing traffi c congestion on in partnership with DOI, commenced a major land Footscray Road. use and transport corridor access planning study for the Port. Tenders for the rail design were invited in early June 2006. Tender documentation for construction is being An initial round of public consultation on port developed and will be released in the second half of development and transport corridor options 2006. Detailed work is also well advanced on land was completed in early 2006. acquisition and leasehold issues. A draft report with recommended approaches is expected to be released for a further round of consultation later in 2006.

DOI ANNUAL REPORT 2005–06 115

Economic impact studies Major priorities for 2006–07

In the Victorian Ports Strategic Framework, the Rail freight infrastructure improvements Government identifi ed the need for all Victorian ports to promote improved communication and In 2006–07: understanding between Victoria’s commercial trading ports, their communities and industry stakeholders. • the freight upgrade of the Mildura-Geelong During the year, the Port of Portland Pty Ltd and DOI rail line will be advanced jointly sponsored a Port of Portland Economic Impact Study (EIS) to more fully understand the economic • work will begin on the Geelong rail access impact of the Port on the Glenelg Shire, the State project, with delivery works expected to of Victoria and Australia. This study built on the commence in the second half of 2006–07. successful work of the Geelong Economic Impact Study, launched by the Minister for Transport in Channel Deepening September 2005. The Portland EIS was launched by Parliamentary Secretary for Infrastructure, Mr Carlo The Channel Deepening SEES will be completed and Carli MP, in March 2006. publicly exhibited. Key milestones include:

The EIS found that the Port of Portland now handles • environmental studies for the Channel Deepening trade approaching four million tonnes annually, Project, scheduled to be completed by with an estimated value in 2004–05 of $1.2 billion. December 2006 It generates a signifi cant level of economic activity in Portland as a gateway to international markets. • public exhibition of the SEES, anticipated for early 2007. Geelong Port Rail Access Melbourne Port@L The Geelong Port Rail Access project aims to improve rail connections to the Port of Geelong and increase The Melbourne Port@L Strategy will be rail share of port-related transport tasks, in line with completed following a public consultation period the goals set in Growing Victoria Together. and implementation will commence.

The project comprises two elements: Ongoing development of Victorian ports

• North Geelong track modifi cations — to provide • The tender process for the Dynon Port Rail improved standard gauge access to the Geelong Link project will be fi nalised and construction grain loop will commence.

• Corio Independent Goods Line — to provide • A draft Port of Hastings Land Use and standard gauge access to the Incitec Pivot Transport Strategy will be completed and and Midway sidings. released for public comment.

DOI and Pacifi c National have worked together to • A revised draft of the Geelong Port Land agree on a revised scope for the project which meets Use Strategy will be completed and released all operational requirements. for public comment.

Outcome 6 Effi cient movement of freight 7 OUTCOME 7 SECURE AND SUSTAINABLE ENERGY SUPPLY

Provide policy advice and implement programs to deliver a safe and reliable energy supply to the State that is effi cient, affordable and increasingly sustainable.

DOI ANNUAL REPORT 2005–06 119 Outcome 7: Secure and sustainable energy supply

Growing Victoria Together vision Thriving Economy

Growing Victoria Together goals

Effi cient use of natural resources More quality jobs and thriving, innovative industries across Victoria

DOI output group Infrastructure Planning, Delivery and Management

DOI output

• Energy Policy Services

Secure, sustainable and affordable energy supplies Signifi cant growth in the demand for energy, are critical to achieving continued growth in the particularly peak electricity demand, is expected Victorian economy. Sound advice and effective to continue. Between 2006 and 2010, demand implementation of policy is pivotal to meeting the for electricity is projected to rise by 1.4 per cent long-term energy objectives of Government. per annum and by 1.9 per cent per annum for gas (including gas for gas-fi red electricity generation). In 2005–06, DOI’s Energy and Security Division met and responded to a number of important To ensure that energy supply will meet demand challenges facing the energy sector. Much of the in the future, the Government facilitates a number energy work in DOI builds on foundations that have of demand-side response initiatives, but remains been laid in recent years. Victoria’s energy retail focused on attracting new investment in secure, market has become increasingly competitive and low-cost and reliable energy supplies. At the same effi cient, and is now one of the most competitive in time, planning for increased capacity needs to the world. Complementary and innovative energy account for an increased pressure to reduce the consumer protections have been developed and level of greenhouse gas emissions from coal-fi red will be further strengthened in 2006–07. power stations.

A more effi cient national regulatory framework DOI is therefore increasing efforts to reduce Victoria’s for energy networks and markets continues to be greenhouse emissions by driving investment towards developed under the June 2004 COAG Australian renewable and other low-emission generating Energy Market Agreement. Major achievements in technologies, while maintaining secure and 2005–06 to begin the new national regime will be competitively priced energy supplies. Victoria worked followed in 2006–07 by the development of a with other States and Territories to develop a possible national gas wholesale market and a national design for a national emissions trading scheme, and regime for energy distribution and retailing. the Victorian Energy Technology Innovation Strategy (ETIS) is an initiative that will provide coordinated

Outcome 7 Secure and sustainable energy supply 120

support for pre-commercial energy and energy-related technologies. Furthermore, in 2005–06, DOI completed the design for a Victorian Renewable Energy Target (VRET) Scheme — a market-based measure to achieve Victoria’s renewable energy targets.

A major transformation of consumer demand (‘demand-side’) for energy is also underway. In addition to the development of an active retail market, a fi ve-year roll-out of advanced (electricity) metering infrastructure and two-way communications will be largely planned in 2006–07.

This Outcome reports the main achievements during 2005–06 towards securing and extending Victoria’s energy resources, reducing harmful greenhouse gas emissions, regulating the energy sector, and protecting consumers.

DOI’s efforts to improve safety in the production, transportation and use of energy are reported under Outcome 1: Public safety and security, and initiatives aimed at assisting energy consumers and industries in country Victoria are reported under Outcome 5: Rural and regional development.

DOI ANNUAL REPORT 2005–06 121

Key achievements Also, throughout 2005, DOI led the negotiations which culminated in an agreement on 6 September Investment and sustainability 2005 with International Power, the owners of Hazelwood Power Station in the Latrobe Valley, Electricity generation based on brown coal has to cap its greenhouse gas emissions. and will continue to play a central role in meeting Victoria’s energy needs. Nonetheless, this form of Energy – greenhouse policy electricity generation is the major source of Victoria’s greenhouse gas emissions. National emissions trading scheme

A core aim of energy policy is to facilitate effi cient Victoria is working with the other states and territories and sustainable investment to maintain Victoria’s to establish a national emissions trading scheme, which competitiveness, while reducing greenhouse gas will provide a sound framework and economic signal emissions over time. This will require a substantial for commercialising lower-emission power sources. transformation in Victoria’s energy base over coming In 2005–06, the inter-jurisdictional National Emissions decades towards low-emission technologies based Trading Taskforce (NETT) was established to consider on diverse fuels such as brown coal, gas and the design and implementation of a national emission renewables. Industrial processes; residential, trading scheme. Victoria, through DOI, DSE, DPC commercial and industrial buildings; appliances and Department of Treasury and Finance (DTF), and equipment will also need to become more collaborated with the NETT in the development of energy effi cient. a draft green paper, which was released early in Low electricity prices in Victoria mean that the 2006–07 for endorsement by the governments of State has a substantial competitive advantage in the States and Territories. attracting energy-intensive industries. However, changes to our energy base and fuel mix have the potential to affect prices and the impact of carbon-refl ective pricing on trade-exposed industries needs to be adequately addressed.

In 2005–06, DOI undertook a range of projects to reduce greenhouse gas emissions and increase the effi ciency of the electricity system, while maintaining energy security and price competitiveness. These included:

• a National Emissions Trading Scheme

• the Victorian Renewable Energy Target

• an Energy Effi ciency campaign

• an Energy Technology Innovation Strategy

• an examination of demand-side management opportunities.

Outcome 7 Secure and sustainable energy supply MARIANNE LOUREY 122

Director, Energy Investment and Sustainability, DOI’s Energy and Security Division Victorian Renewable Energy Target When I started my new role as Director in late The Victorian Renewable Energy Target (VRET) 2005, I was expecting to be faced with many scheme is a market-based measure and a key interesting challenges, as the Government was component of Victoria’s renewable energy strategy. implementing major policy initiatives to prepare The principal purpose of the VRET scheme is to for climate change by reducing greenhouse encourage the generation of additional electricity from gas emissions in the stationary (non-transport) renewable energy sources (such as wind, solar, hydro- energy sector. electricity, biogas and biomass) and achieve signifi cant However, I thought that I would have some reductions in greenhouse gas emissions over the time to settle into my new role before the action short-to-medium term. It is also designed to increase began. On my fi rst day, the Premier announced Victoria’s capacity to contribute to deep, longer-term that the Government would be examining options cuts in greenhouse emissions at a manageable pace. for the design of a market-based scheme to • Over 100 stakeholders participated in a forum enable it to meet its renewable energy targets. held by DOI in December 2005 to canvass key This was defi nitely a baptism by fi re! issues and options for a market-based scheme I was fortunate to be working with a great for Victoria. Following the forum, submissions team of people, and we launched into a period were received from stakeholders including of frenetic activity. We considered submissions electricity generators and retailers, peak bodies from a wide range of stakeholders to help and environmental groups. The submissions design the Victorian Renewable Energy were considered in the development of the Target Scheme. This made the project more VRET scheme. intellectually stimulating as we assessed all the • DOI also released the issues paper: ‘Driving options to ensure that the design of the scheme Investment in Renewable Energy in Victoria: most appropriately balanced these interests. options for a Victorian market-based measure’, There is scientifi c consensus that climate and considered submissions. change is happening. There is no magic bullet • The design for the VRET scheme was completed to reduce greenhouse gas emissions from the in June 2006. The Victorian Renewable Energy stationary energy sector — we are therefore Bill was drafted and introduced into Parliament pursuing a range of policy initiatives to ensure in July 2006. that we are prepared for a carbon-constrained future. The development of a commercially Through VRET, the Government aims to have competitive renewable energy industry is just 10 per cent of Victoria’s electricity consumption one path being pursued. sourced from renewable resources. Progress in this area stalled during 2005–06 following the Most importantly, this project has been Commonwealth Government’s decision not to challenging and rewarding as we seek the best extend the Mandatory Renewable Energy Target long-term outcome that will prepare Victorians (MRET). The Victorian Government is continuing for living in a future with less carbon-based its push to achieve this 10 per cent target, but this energy resources. is likely to happen over a longer time frame than previously anticipated.

DOI ANNUAL REPORT 2005–06 123

In line with this target, the Government is aiming to Energy Technology Innovation Strategy foster the development of up to 1,000 megawatts of The Victorian Energy Technology Innovation Strategy wind energy production facilities in environmentally (ETIS) is an initiative that was fi rst outlined in the acceptable locations. By June 2006, installed and Greenhouse Challenge for Energy position paper commissioned capacity amounted to 104 megawatts, launched in December 2004. with an additional 30 megawatts installed and awaiting commissioning and 461 megawatts with ETIS aims to help Victoria maintain its low-cost planning approval. energy advantage through the development of new technologies for the energy sector. The strategy Energy saving campaign provides coordinated support for pre-commercial Energy effi ciency is a key element of the Government’s energy and energy-related technologies across approach to reducing greenhouse gas emissions. the research, development, demonstration and In order to achieve widespread and sustained commercialisation (RDD&C) supply chain. energy effi ciency, public awareness is vital. DOI and DIIRD jointly chair the Interdepartmental In 2005, the Government announced its intention Committee (IDC) that is overseeing the to develop a major communications campaign implementation of ETIS. about saving energy. • During 2005–06, proposals for a large scale Subsequently, the You have the power: Save demonstration project for new brown coal Energy campaign has been developed by an technology were received and assessed inter-departmental working group comprising by an independent expert panel, following policy representatives from DOI, Sustainability detailed due diligence regarding technical Victoria (SV) and DSE. The campaign aims to raise and commercial viability. community awareness about climate change and encourage households to save more energy by • Until a research body is established to replace introducing a number of cost-effective measures. the Cooperative Research Centre (CRC) for Clean Power from Lignite, DIIRD is coordinating The fi rst phase of the campaign, with supporting two Science Technology and Innovation (STI) communication materials, was launched in June competitive grant processes; one for brown 2006. DOI completed benchmark research into coal and one for renewable energies. To date, current public knowledge, attitudes and behaviour $4 million has been provided in fellowships to in relation to energy saving, in preparation for enable continued research into brown coal, campaign evaluation. and a further $12 million has been allocated to the STI grant process.

• In addition to ETIS, the Government is also providing $2.2 million to support construction of a pre-commercial plant demonstrating a coal drying technology known as mechanical thermal expression. Construction work on the mechanical thermal expression project at the Loy Yang bench in the Latrobe Valley commenced in late June 2006.

Outcome 7 Secure and sustainable energy supply 124

Demand-side management opportunities Alcoa Aluminium Demand-side management (DSM) is the ability of Alcoa Aluminium consumes a substantial share of electricity users to respond to variations in electricity Victoria’s total electricity supply, and its operations prices. There is a high potential for improved demand- require a planning approach that is aligned with the side response and energy effi ciency that is not yet Government’s energy policy. realised within the commercial and industrial sectors. Innovative approaches need to be considered to DOI, with Regional Development Victoria (RDV), stimulate the greater take-up of these opportunities held discussions with Alcoa during the year to by energy users. better understand the company’s future plans for its smelting operations, and to address the fi nancial, In 2005–06, DOI initiated a number of measures environmental and energy security implications to realise the opportunities for increased system of these plans, as well as the company’s overall effi ciency that DSM activities can provide, including: contribution to the Victorian economy.

• participating in a Ministerial Council for DOI and RDV collaborated to analyse Alcoa’s Energy (MCE) inter-jurisdictional working expansion and the associated energy options and group that examined the market and technical environmental impacts. barriers to DSM Energy market reform • contributing to the development and completion of Australia’s deliverable tasks to the International Victoria, and DOI in particular, has a leading role in Energy Agency (IEA) ‘Task XIII’ working group, national energy market reform. which was established to examine and benchmark demand-side response opportunities among the In 2005–06, DOI worked to strengthen competition 12 participating countries and investment in the Victorian and national energy markets, primarily through the national energy • undertaking a review to examine the potential market reform program of the Ministerial Council of standby generators, as well as other load- on Energy (MCE). shedding and load-shifting opportunities, as part of an exercise to identify DSM opportunities DOI had a signifi cant role in amending the COAG across Victorian Government departments. Australian Energy Market Agreement to provide for a single national approach to regulating open access to energy networks and developing a framework for national regulation of energy distribution and retailing.

DOI ANNUAL REPORT 2005–06 125

The Department also: • The Department worked with the ESC to establish an effective regulatory framework for distribution • led the development of the MCE decision and on-selling of energy by intermediaries to on the national gas pipelines access regime consumers in multiple occupancy sites, such as and commissioning of expert advice for a body corporate in the case of apartment towers. developing a common approach to access pricing for electricity and gas transmission • A liquid petroleum gas (LPG) retail code was and distribution networks fi nalised and launched in 2005, and the fi ve largest Victorian LPG retailers have voluntarily • led the implementation of the National Gas undertaken to comply with the code. Emergency Response Protocol Advanced metering infrastructure • advised on and managed the commissioning of the statutory review of the operations of the In 2005–06, DOI commissioned a study to investigate Victorian Energy Networks Corporation (VENCorp). the potential benefi ts of moving to electricity meters with enhanced functions, as part of the ESC’s Retail markets program to replace existing meters with time-interval meters. The study considered a range of options, Government policy is designed to enhance effi ciency comparing the benefi ts and costs of different and innovation in the supply of energy services communication technologies, and examined the through competition, and, where competition is not business case for rolling out the meters under effective, through regulation. DOI is committed to a shorter time-frame than had previously been ensuring that competitive energy markets deliver the mandated by the ESC. Government’s economic, social and environmental goals, while retaining a climate that encourages Electricity consumers stand to benefi t from increased further private investment. tariff fl exibility through more transparent price signals which, in turn, will enhance the potential of demand- • Victoria’s policy and regulatory framework side management and energy effi ciency measures. for mitigating energy consumer hardship was strengthened during the year with DOI also co-sponsored a project with distribution the development and implementation of businesses to examine technical enhancements to recommendations from the Committee of Inquiry be captured as part of the ESC’s roll-out of interval into Financial Hardship of Energy Consumers. meters, and implemented recommendations arising from the project. • DOI re-negotiated the four-year price path agreement with retailers in light of the Essential Services Commission’s (ESC) Electricity Distribution Business Price Review.

Outcome 7 Secure and sustainable energy supply 126

Security of supply Statutory appointments

As mentioned earlier, the demand for energy, DOI advises the Minister on a number of statutory particularly peak electricity demand, is expected to appointments to bodies that operate and regulate increase in coming years. the Victorian and national energy markets transmission systems. DOI monitors the adequacy of electricity and gas supply capacity on an ongoing basis to assess These bodies include: Energy Safe Victoria (ESV), whether market incentives are encouraging suffi cient VENCorp, NEMMCO, the Australian Energy Market investment to meet demand growth. The maintenance Commission (AEMC) and the Australian Energy schedules of owners and operators of electricity and Regulator (AER). gas facilities are monitored to make sure they are adequate and do not jeopardise supply security. The Minister solely appoints members to ESV (and its subcommittees) and to VENCorp, and A suffi cient electricity supply was secured for participates with other jurisdictions on appointments the 2005–06 summer via the NEMMCO Reserve to the national statutory bodies. Trader facility. DOI also facilitated negotiations with NEMMCO and National Grid to obtain additional In 2005–06, DOI managed and provided advice to the capacity from the Basslink interconnector ahead of its Minister on the following appointments: entry into full commercial service. • the Director of Energy Safety to ESV Memorandums of Understanding were developed • members to the Electrical Line Clearance and ratifi ed in relation to the management of national Consultative Committee gas and liquid fuel supply emergencies that affect multiple jurisdictions. • directors to the Board of VENCorp • directors to the Board of NEMMCO. Grants programs

DOI’s Energy and Security Division was involved in overseeing substantial grants programs, including the Network Tariff Rebate, the Powerline Relocation Grants Scheme, ETIS (run by DIIRD), and the High Effi ciency Gas Heater Rebate (delivered by Sustainability Victoria). It also contributed to the administration of the Natural Gas Extension Program, run by RDV.

A review of the Powerline Relocation Grants Scheme and a subsequent audit, were conducted in 2004–05 and 2005–06. While both reports generally endorsed the current scheme, they suggested a number of potential enhancements. Their recommendations will be assessed and implemented in 2006–07.

DOI ANNUAL REPORT 2005–06 127

Major priorities for 2006–07 Alcoa Aluminium • Advice will be provided to Government to Energy — greenhouse policy assist in the decision about whether to agree to a Memorandum of Understanding (MOU) Victorian Renewable Energy Target with Alcoa, and if so, on what terms. Regulations will be developed to support the Victorian Renewable Energy Bill for the VRET scheme, including • Subject to conclusion of a MOU, DOI and establishing a State Scheme Administrator to RDV will negotiate the binding agreements. administer the relevant legislation, its enforcement and monitor compliance. Energy market reform

Energy Technology Innovation Strategy • The national framework for regulating energy Through the ETIS interdepartmental committee (IDC), distribution and retailing will be completed. opportunities will be investigated for establishing a world class research capability in brown coal, which • DOI will contribute to national policy for will continue and expand on work undertaken by the developing the national gas market and will CRC for Clean Power from Lignite. provide advice on the national review of investment and reliability incentives in the Energy saving campaign National Electricity Market (NEM). • Research and qualitative evaluation will be conducted into the campaign, and fi ndings will Retail markets support the later stages of the campaign. • A new legislative framework and associated • DOI will participate in an IDC to develop a policy guidance will be provided for the summer phase of the campaign (for late 2006) development and implementation of retailer and long-term plan for subsequent years of the ‘best-practice’ energy hardship policies. campaign (to 2008). • Following new budget allocations, arrangements will be developed to give Demand-side management opportunities hardship consumers increased access to • The recommendations of a DSM report sponsored Government support programs. by the MCE Demand Side Response working group will be considered and implemented.

• An Australian ‘roadmap’ for DSM will be completed as part of work undertaken by the IEA’s Task XIII working group examining benchmark demand-side response opportunities among 12 participating countries.

• DOI will initiate a roll-out of DSM measures that can be identifi ed and adopted across Victorian Government departments.

Outcome 7 Secure and sustainable energy supply 128

Advanced metering infrastructure (AMI)

A functionality and performance specifi cation will be drafted for the interval meters to be deployed under the AMI project and a series of trials will be coordinated among industry participants to assess appropriate AMI technologies.

Security of supply

• The adequacy of security risk management in the energy industry will be periodically assessed and effi cient improvements in the protection of critical energy infrastructure will be initiated through consultation with owners and operators.

• Advice and assistance will be given in the development of water policy to ensure that its potential impacts on electricity generation are fully considered.

• DOI will contribute to the fi rst comprehensive review of reliability standards and setting in the NEM since the market commenced.

DOI ANNUAL REPORT 2005–06 8 OUTCOME 8 INTEGRATED POLICY DEVELOPMENT

To provide coordination within the portfolio, with other departments and agencies and to manage relations with other governments to achieve policy objectives within transport, energy and ICT consistent with the overall planning strategies and other policies of the Victorian Government.

DOI ANNUAL REPORT 2005–06 131 Outcome 8: Integrated policy development

Growing Victoria Together vision

Thriving Economy Vibrant Democracy

Growing Victoria Together goals

Growing and linking all of Victoria Greater public participation and more accountable Government

DOI output group Infrastructure Planning, Delivery and Management

DOI output

• Integrated Transport Policy and Planning

DOI aims to provide timely, credible and objective DOI has continued to actively engage with other policy advice and analysis to support the Government Government departments, agencies and external in the areas of energy policy, information and stakeholders to address policy challenges that communication technology and transport systems. cross over into other portfolios and jurisdictions. In doing so, the Department is responsive to the Government’s policy priorities outlined in major These interactions encompass planning for planning strategies and other policies. growth areas; new subdivision guidelines that refl ect sustainable transport principles; and The breadth of the Department’s functions TravelSmart programs with local municipalities, means effective coordination of policy advice and schools and workplaces. development is important to ensure it: DOI has participated in the successful Transport • is aligned with policy settings Connections Program, which has demonstrated that access for local communities can be improved • meets the core objectives of the portfolio if agencies work together to provide better information • is evidence-based and integrated and coordinate services in more fl exible ways. The expanded Transport Connections Program (named • is effi ciently prepared. ‘Flexible Transort Solutions’ in Meeting Our Transport Coordinated advice is articulated through many forms Challenges) will apply this experience more broadly across DOI — in briefi ngs for Ministers, policy reviews, across the State from 2006–07, and will be covered reports on progress against performance measures, in more detail in next year’s annual report. project reviews and integrated strategies such as DOI’s 2005–08 Corporate Plan identifi es the portfolio the Metropolitan Transport Plan and Meeting Our outcomes that will contribute to the Government’s Transport Challenges. priorities over the three years to 2008. These outcomes

Outcome 8 Integrated policy development 132

are closely aligned with the policy objectives defi ned in Growing Victoria Together, Victoria: Leading the Way, Melbourne 2030, the Metropolitan Transport Plan and A Fairer Victoria.

The Corporate Plan reports on organisational performance, implications and issues for the plan period and spells out the strategies to be adopted to address the numerous policy challenges facing the Infrastructure portfolio. Key performance indicators (KPIs) are included against each outcome area in the plan to measure progress. Reports on performance are prepared for the Management Committee on a quarterly basis.

Achievements during 2005–06 are outlined in the following pages.

DOI ANNUAL REPORT 2005–06 133

Key achievements Melbourne 2030

Meeting Our Transport Challenges Melbourne 2030 is the Government’s 30-year strategy for land use and transport planning in The development of Meeting Our Transport Melbourne. By 2030, Melbourne is expected to Challenges involved a considerable policy and grow by up to one million people and an estimated program coordination process with several agencies 620,000 households, generating an extra three million and departments through 2005–06. The scale of the trips per day on the city’s road and transit systems. planning and project development activity refl ected the scale of this unprecedented funding commitment DOI has a signifi cant role in the implementation of of $10.5 billion over the next 10 years. In particular, the transport aspects of the strategy and is facilitating DOI worked closely with central agencies to confi rm development in some Transit Cities. Meeting the policy groundwork and priority programs Our Transport Challenges is a refl ection of the incorporated in this major statement on transport. development of priorities defi ned in the Metropolitan Transport Plan and set down in Melbourne 2030. The policy groundwork for this statement was outlined in the major transport plan released by the During 2005–06, DOI continued to coordinate the Minister for Transport in 2004: Linking Melbourne: transport planning and policy aspects of Melbourne Metropolitan Transport Plan. This earlier policy 2030, contributing to strategic planning for the fi ve statement presents an integrated set of objectives, growth areas – Casey/Cardinia, Hume, Melton, key challenges, strategies and priority action areas Whittlesea and Wyndham. for the metropolitan transport system. This culminated in the release of A Plan for The projects outlined and funded in Meeting Our Melbourne’s Growth Areas by the Premier and Transport Challenges lay a strong foundation to Minister for Planning in 2005. This plan includes sustain Victoria’s and Melbourne’s liveability and initiatives to better manage growth in these areas economic performance into the future. It is not an by providing more opportunities for business exhaustive list, but provides a platform from which and industry to locate closer to transport and by this and future governments can respond to expediting the provision of transport infrastructure challenges and growth as they emerge. and services to such areas. Two of the plan’s initiatives were the establishment of a Growth DOI prepared a framework to improve the integration Areas Authority and the preparation of a State between programs for arterial roads, freight, and Development Contributions Plan. DOI has been train, tram and bus service improvements that was actively working with DSE on the transport and consistent with the Meeting Our Transport Challenges accessibility aspects of these initiatives, which and Melbourne Transport Plan objectives. are expected to be implemented during 2006–07.

The Department began implementing the plan A key direction in Melbourne 2030 is to make more and is working with DTF, DPC and other agencies activities accessible by short trips to activity centres and stakeholders to formalise performance reporting and by public transport. DOI has worked with local to the community on progress. government and DSE to prepare structure plans for activity centres, and continues to participate in several structure planning processes at key activity centres.

Outcome 8 Integrated policy development GAVIN MAK 134

Policy Offi cer, DOI’s Planning and Policy Division and a Victorian Public Service Draft guidelines are in preparation to help local Graduate Program alumni councils and developers meet the requirements of Melbourne 2030, which call for integrated transport I chose DOI as my graduate program home planning for major developments. department because I had studied economics and law and thought it would be a good area For further information see to develop these skills. www.melbourne2030.vic.gov.au It’s a 12 month program — you spend four months each in three departments, starting Maintaining Mobility in your home department. So my fi rst The Maintaining Mobility project is assisting with four months were with DOI, then I went to development of the Government’s response to the the Victorian Competition and Effi ciency problems faced by older Victorians who have to Commission. While there I assisted with the give up driving or decide it is time to do so. This is transport congestion inquiry. For my third in response to the Parliamentary Inquiry into Road placement, I went to the Essential Services Safety for Older Road Users (2003). Commission, working in the rail regulation team. In both these placements I was involved One of the Inquiry’s recommendations was in projects related to DOI’s activities. It helped that policy should be developed that helps reinforce knowledge I had learnt at DOI in Victorian drivers through the transition from driving a different setting and gave me some to non-driving. DOI has convened a specialist exposure to interdepartmental relationships. working group that comprises representatives from It was really helpful to get that perspective. Government and relevant external organisations to guide the Department’s work on the project. I came back to DOI in January and time has really fl own, which highlights the engaging Recommendations about ways to raise awareness nature of the work. I am currently assisting and amend existing programs to provide more with the development of the AusLink Melbourne support for older people during their transition Urban Corridor Strategy and the COAG to non-driving will be available later in 2006–07. Infrastructure Report. These projects provide me with a valuable opportunity to develop a Integrated Transport Studies clearer understanding of the transport issues and challenges facing Melbourne and Victoria. During 2005–06, DOI progressed a number of integrated transport studies within Melbourne. DOI is a great place to work, as the people are The major studies included: nice and they really care about your welfare and personal development. It is a very genuine and North East Integrated Transport Study individual thing, not just lip service. Once, when DOI led this study of Melbourne’s north-eastern I was sick, my supervisor rang me at home to suburbs to assess the regional transport needs of make sure I was alright; that said a lot to me. the area. The study was undertaken in partnership with local councils, VicRoads and DSE, and aims to provide a regional framework for transport development, priority-setting and investment over the next 20 years for all transport modes. Opportunities for better integration between modes and land-use policy were also considered.

DOI ANNUAL REPORT 2005–06 135

Issues for consideration by the study were identifi ed Meeting Our Transport Challenges provides a through an initial round of public consultation, signifi cant long-term response to expand rail capacity, as well as analysis of travel patterns and transport east-west transport capacity and address congestion system performance, both now and within the study on the Monash-West Gate Corridor. time horizon. Travel analysis and transport modelling have been completed. Mornington Peninsula Access and Mobility Study A draft strategy report was released for public This study of the access and mobility needs of the comment in July 2006. In 2006–07, DOI, state Mornington Peninsula is being led by Mornington Shire agencies and local councils will consider public Council. DOI is providing support to the study together comments on the draft report and fi nalise the strategy. with Frankston City Council, DSE and VicRoads.

Inner West Integrated Transport Study The fi ndings of the study will underpin the This study, led by DOI, examined regional transport development of a plan, due for release by the end needs to around 2020 for Melbourne’s inner western of 2006, to address the region’s transport needs suburbs — the area covering the municipalities of over the next 25 years. It will maximise the effective Hobsons Bay, Maribyrnong and Moonee Valley. use of the existing transport system and identify The study drew to a close in May 2006 with the options where the Government and local councils release of Meeting Our Transport Challenges, can work in partnership to improve transport which incorporates a number of the signifi cant infrastructure and services. recommendations and actions for improving the road and rail network in the inner west. Actions being TravelSmart Program implemented include: TravelSmart encourages people to reduce their • TravelSmart programs in the cities of Hobsons reliance on car travel and to use alternatives, such Bay, Maribyrnong and Moonee Valley as walking, cycling, catching public transport and car pooling. The program aims to achieve a sustained • bicycle lockers at railway stations under the change in personal travel behaviour, to reduce the Cycle Connect program amount of travel made as single-occupant car trips and to increase the use of more sustainable modes • freight rail improvements in Tottenham of transport.

• upgrading the Calder-Tullamarine TravelSmart engages with students, employees and Freeway interchange residents through projects that focus on schools, universities, workplaces and communities. These • structure planning for the Highpoint, Footscray projects are delivered by DOI, with signifi cant and Moonee Ponds principal activity centres involvement from other organisations.

• bus service improvements. Communities The study, and parallel work on planning for During 2005–06, TravelSmart delivered the largest growth areas as part of the implementation of community-based travel behaviour change project ever Melbourne 2030, has been instrumental in providing undertaken in Australia, covering 45,000 households the information for metropolitan-scale network in the cities of Maribyrnong and Moonee Valley in investigations into the capacity constraints for road Melbourne’s inner north-west. This project was the and rail in the region. fi rst to be delivered as a formal partnership with local government, and is being independently evaluated.

Outcome 8 Integrated policy development 136

TravelSmart supported 12 small-scale travel to approximately 70 per cent (refer Figure 12). Data behaviour change projects delivered by councils, from the 1999 Victorian Activity and Travel Survey with funding from the Victorian Greenhouse Strategy indicated that children being driven to school and the Australian Greenhouse Offi ce. In 2005–06, accounted for 18 per cent of peak traffi c in Melbourne. for the fi rst time, TravelSmart incorporated a capacity (Of these school trips 39 per cent are single purpose building program for council offi cers alongside journeys — from home to school to home.) delivery of the local government projects. With support from DOI, 33 schools across Schools metropolitan and regional Victoria have implemented TravelSmart’s Schools program aims to divert a School Travel Plans since 2003, including 10 in percentage of car trips to schools towards more 2005–06, and a further 12 plans are under sustainable alternatives such as walking, cycling development. All schools that implemented a travel and public transport. plan reported reductions in car trips of more than fi ve percent, with an average decrease of 15 per cent Between 1974 and 2003, travel to school by car as and some reductions of up to 33 per cent. a percentage of all trips to schools tripled, from 22.6

Figure 12. Travel to School in Victoria 1974–2003

70%

60%

50%

40%

30% Percentage

20%

10%

0%

† †

1974* 1984* 1994*

1974*

1984*

1994*

1974*

1984* 1994*

1974*

1984* 1994* 1974* 1984* 1994*

1974* 1984* 1994*

1999†

2003‡

1999†

2003‡

1999† 2003‡

1999† 2003‡

1999

2003‡ 1999 2003‡

Train Bus Tram Car Walk Other

Year and mode of transport

Legend: * 1974 — Journey to Work and Journey to School, August 1974, Australian † 1999 – Victorian Activity and Travel Survey 1998–99 Bureau of Statistics, Canberra (released April, 1976) ‡ 2003 – TravelSmart School Travel Planning Pilot results of baseline * 1984 – Travel to Work, School and Shops, Victoria, October 1984, survey before school travel planning (70.9 per cent of Australian Bureau of Statistics, Victoria (released June 1985) primary school trips were by car, 68.4 per cent of primary and secondary combined) * 1994 – Travel to Work, School and Shops, Victoria, October 1994, Australian Bureau of Statistics (released August 1995)

DOI ANNUAL REPORT 2005–06 137

Commonwealth Games enabled local councils to invest in the development — Communities and Workplaces of high quality maps that connect seamlessly with TravelSmart also established a partnership with the other councils across the metropolitan area. These Commonwealth Games during the year. TravelSmart maps are also available to the general public through Communities and Workplaces programs were council information centres, student information developed with the aim of, fi rstly, capitalising on centres, bicycle shops and Information Victoria. the anticipated higher levels of walking, cycling and public transport usage during the Games, Over the past year, TravelSmart continued to work with and, secondly, building a legacy of travel behaviour councils to add to the collection of TravelSmart maps. change that would persist after the Games. These are now available for: Banyule, Boroondara, Darebin, La Trobe University, Maribyrnong, Melbourne, Commonwealth Games Communities targeted Melbourne University, Monash University, Moonee households surrounding key Games venues. More than Valley, Victoria University and Yarra. 3,200 households actively participated in the project, resulting in modest increases in cycling trips and public TravelSmart also helped the Auckland Regional transport travel overall for the areas surveyed. Transport Authority, the City of Brisbane and the City of Ballarat produce maps and cycling information Around 11,000 employees, drawn from 37 workplaces in 2005–06. in Melbourne’s CBD were also engaged through TravelSmart Workplaces in the period leading up For further information, see to the Games. Green transport plans (GTPs) were www.travelsmart.vic.gov.au completed for 11 of these sites, with the balance under development. GTP actions focus on increasing Regional and metropolitan atlas projects walking and cycling for employees who live within two and fi ve kilometres of their workplace. These plans DOI provided information and maps as part of DSE’s typically include the development of corporate health 2005 Regional Matters and Metropolitan Atlas 2006 programs, which use two new web-based programs, publications. These valuable resources, available called WalkSmart and CycleSmart, to support the in book form and via the DSE website, illustrate the uptake of more active forms of transport. changing nature of Victoria.

TravelSmart Maps DOI’s portfolio responsibilities of transport, energy, and information and communication technology are TravelSmart maps have been developed to support represented among the maps and charts, which travel behaviour change projects. The maps use describe movements in important drivers for growth a traditionally recognisable Melway base with the and living conditions, including population; resource colours modifi ed to emphasise sustainable modes consumption; infrastructure and assets; service of transport. levels; and changes in environmental conditions, land uses and energy choices among others. The TravelSmart team coordinates the process in collaboration with a large number of local councils. These maps are produced using the combined skills of designers, cartographers and transport planners, and local community knowledge. The system has

Outcome 8 Integrated policy development RUTH AHCHOW 138

Policy Analyst, DOI’s Planning and Policy Division and a Victorian Public Service AusLink Graduate Program alumni

All of the states and territories are working with I was excited when I found out that my graduate the Federal Government to prepare 24 ‘corridor home department would be DOI. The fi rst thing strategies’. These strategies will guide the Federal I did was meet with some of my new colleagues Government’s funding of road and rail projects from to hear about what different people were doing 2009–10 under the AusLink framework. in the team.

The strategies seek to establish agreement on the main For my fi rst placement, outside DOI, I went to challenges, defi ciencies and strategic priorities in the Consumer Affairs Victoria. I didn’t even know corridors. The corridor strategies of interest to Victoria it existed before going there. At Consumer include Melbourne Urban, Melbourne-Adelaide, Affairs I wrote a paper on self-regulation and Melbourne-Brisbane, Melbourne-Geelong, Melbourne- helped with governance obligations. My next Sydney, Melbourne-Mildura and Melbourne-Sale. placement was at the Department of Treasury and Finance in the revenue policy group. While Substantial work was completed on the fi rst fi ve of the there I researched different revenue sources corridor strategies in 2005–06, and all are on target to and helped prepare for the Heads of Treasury be completed by mid–2007. meeting. These placements were great, as I got to work on a variety of tasks and within different Melbourne Integrated Transport Model departments and jurisdictions.

DOI uses a multi-modal, multi-period transport model The highlight of my graduate year was being to estimate the impact of alternative transport policy able to go to the Australian Roads Summit in and project options and growth on the city’s transport Sydney, where I was exposed to a number of system performance. This Melbourne Integrated important issues and heard the views of leading Transport Model (MITM) is continually updated with delegates from all over Australia. It was a big the latest demographic projections and views on learning curve for someone who had only been network and travel behaviour parameters, and is being in transport for a couple of weeks. enhanced with a dedicated freight movement module. Apart from placements, the graduate program The MITM has continued to provide information to offers a whole year of development opportunities. support decision making including: There are courses and activities to prepare us for working in the public service, including • estimating the costs of congestion time management and presentation skills and a mentoring program. It was a rewarding • planning for new railway stations experience and I still keep in contact with many • planning growth area transport networks of the people I met in my graduate year. • supporting integrated transport studies I enjoy working at DOI as I constantly have • assessing the performance of critical road links the opportunity to be challenged and develop under growth conditions. skills across a number of areas. I get to work on everything from congestion and climate change to AusLink Corridor studies — the variety is stimulating.

DOI ANNUAL REPORT 2005–06 139

Integrating transport policy Also during 2005–06, DOI participated in a Multi-Agency Project Team (MAPT) which examined During 2005–06, DOI’s Secretary, Howard Ronaldson, the barriers to improving mobility and accessibility continued to chair the Standing Committee on in regional areas. The work strengthened Transport’s (SCOT) Rail Group, which facilitates cross-government links and contributed to a national approach to addressing issues for the the establishment of the expanded Transport rail sector requiring national cooperation. DOI also Connections Program and the Gippsland School Bus participated in other SCOT groups, including those Flexibility Project. The latter is a joint demonstration considering urban congestion management issues project between DOI and the Department of Education and developing revised guidelines for the appraisal and Training, which addresses local issues while of transport projects. The guidelines are on target contributing to the development of policy and more to be completed in 2006. fl exible contracts for service providers.

DOI provided a submission to the Victorian MAPT research and fi ndings have been important Competition and Effi ciency Commission (VCEC) in raising awareness about rural access issues for its inquiry into managing transport congestion, and barriers to fl exible transport solutions in other and supported VCEC with data and modelling outputs government processes, such as the Essential indicating peak period traffi c levels on particular Service Commission’s Review of Taxi Fares, Melbourne routes in the future. DOI’s Country Taxi Review, and DVC’s Community Bus Grant appraisal. Through DOI, Victoria is participating in the Standing Committee on Transport’s Urban Congestion Management Working Group (UCMWG), which is coordinating a review of congestion nationally.

DOI is coordinating Victoria’s preparation of an infrastructure report, as requested of all jurisdictions by COAG. In February 2006, COAG also asked the States to review their port regulation (DOI is participating in this review), and commissioned the Productivity Commission to review road and rail pricing (DOI contributed to the whole-of- government submission to this inquiry).

Outcome 8 Integrated policy development 140

Major priorities for 2006–07 • oversee the new Local Area Access Demonstration Program. This program will provide funding for In 2006–07, DOI will: municipalities to develop and deliver small-scale infrastructure projects to improve access to • work closely with other relevant jurisdictions activity centres, community services and other to ensure that the AusLink corridor strategies local attractions, and support the increased use are completed to a high quality standard of sustainable transport alternatives such as walking, cycling and public transport. The program • offer technical support to VCEC as it completes aims to develop a better understanding of the its fi nal report into transport congestion. impacts that local improvements can have on DOI will then assist in the preparation of the access and travel behaviour. Government’s response to the report TravelSmart will continue: • support the National Transport Commission’s reform of regulations applying to the road, • Workplace Green Transport Plans rail and intermodal facility sectors, to promote • School Travel Plans greater effi ciency and national consistency • University campus activities • work with other Victorian, Federal and interstate • TravelSmart local government grant projects. agencies to deliver the COAG reform agenda for both transport and energy. This will particularly focus on the COAG review of urban congestion, the development and implementation of a road and rail harmonisation program, and providing a report to COAG on the establishment of a fully national electricity transmission grid and on structural issues impeding electricity sector competition in Australia

DOI ANNUAL REPORT 2005–06 9 OUTCOME 9 ORGANISATIONAL CAPABILITY BUILDING

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

DOI ANNUAL REPORT 2005–06 143 Outcome 9: Organisational capability building

Building organisational capability is essential if DOI However, building organisational capability involves is to achieve results to a consistently high standard more than just the development of the DOI workforce. across all its corporate outcomes. The Department is also working to develop and implement a range of standards, processes and It is important that the skills of individuals, and systems that will enable it to better manage the the effi ciency of the organisation as a whole, organisation’s assets. are continually improved so that DOI’s workforce can successfully deliver projects and objectives. Continuously improving DOI’s people, processes Identifying future workforce needs and designing and systems will provide the skills and methods the appropriate programs to meet them will enable organisation needs to deliver future commitments, DOI to develop the capability of its workforce to such as the $10.5 billion program outlined in Meeting deliver the Government’s huge forward program Our Transport Challenges. of infrastructure and services. For this reason, ‘capability building’ was identifi ed as a key driver Key achievements during 2005–06 relating to the within the DOI People Strategy 2004–06, with a focus Organisational Capability Building outcome are on deepening the skills-base of all DOI people. reported in this section of the report.

The Department recruits quality individuals who have specialist and general skill sets, and provides them with individually targeted learning and development opportunities.

Considerable importance is placed on retaining these staff; creating a diverse, fl exible and healthy work environment; and carrying out strategic planning to identify future workforce needs.

A major emphasis during 2005–06 was on providing learning and development programs in management development, policy development, and project planning.

Outcome 9 Organisational capability building 144

Key achievements ‘Best-practice’ in work/life balance DOI was recognised during the year as being Strengthening workforce capabilities one of Australia’s best employers when it comes to working to improve the work/life balance and During 2005–06, DOI developed a range of programs health and well-being of its people. to enhance the organisation’s ability to deliver its core outcomes and objectives. These programs include: The Department was ranked in Australia’s top 25 ‘Best-Practice’ organisations in the 2006 Implementing DOI’s People Strategy National Annual Benchmarking Survey conducted The Department’s People Strategy 2004–06 aims by Managing Work/Life Balance International in to build organisational capability, motivate people to conjunction with leading business publisher CCH achieve, and improve people management practices Australia. There were 410 participants in the survey, throughout the organisation. Specifi c achievements representing employers from the public, private and in 2005–06 included: not-for-profi t sectors.

• developing a Capability Framework to underpin Human resource management recruitment, performance management and The Human Resources Management Branch learning activities implemented a ‘business partnering’ model during the year, with dedicated Human Resource • introducing a range of leadership and Managers and Human Resource Advisors assigned management development programs for middle to support specifi c areas across the Department. management (176 participants) and executive This has enabled the Branch to provide a greater levels (42 participants) level of tailored human resource account management services, which in turn has enhanced • conducting a DOI-wide rotation scheme and mutual understanding of people management a revised mentoring program (48 participants) activities and practices. supported by executive-level mentors

• establishing a Graduate Rail Engineer and Corporate support Graduate Generalist Engineer Program with A comprehensive review of the extent, value and opportunities to undertake post graduate complexity of procurement and contract management studies in specialist areas. activities was undertaken across the organisation. The purpose of the review was to identify the specifi c competencies needed, the personnel involved, and the requirements for training and development. The review fi ndings will be used to support the ongoing development of DOI people involved in procurement.

DOI ANNUAL REPORT 2005–06 145

The Department achieved a signifi cant fi nancial Supporting business priorities milestone with the completion of the 2004–05 fi nancial statements in accordance with the new The application of new business solutions to timelines introduced by the Department of Treasury DOI divisions involved: and Finance (DTF). DOI also provided assistance to its portfolio agencies to meet the revised timelines. • delivering a streamlined reporting solution for capital projects, reducing the time and Risk management effort required to prepare standardised capital project reports A corporate risk management policy was put in place early in the year, accompanied by a corporate risk • developing solutions to support MSV’s business management framework and a register of the strategic requirements, with a focus on the operational risks that could adversely affect performance against needs of a mobile workforce. Consequently, DOI’s key outcomes. MSV now follows the Australian ‘best-practice’ approach to the management and reporting The Department introduced a policy and a framework of marine safety incidents for the prevention of fraud and corruption, which were launched through the corporate intranet. • implementing a new fi nancial system module to assist project managers with their accounting DOI gave high priority to developing an enterprise requirements. The new module enables project Business Continuity Plan, identifi ed critical areas managers to better understand and manage of risk and developed plans to deal with them. project budgets and expenditure, as well as providing improved overall reporting on projects. Commonwealth Games support The system has been implemented in the DOI people supported the Melbourne 2006 Infrastructure Projects Division and will gradually Commonwealth Games, both as volunteers and be implemented for all major projects. in offi cial capacities. The Public Transport Division played a major role in ensuring the effi cient and safe movement of people around Melbourne and between Games venues. A large number of DOI people participated as volunteers in a range of positions and contributed their knowledge and skills to the success of the Games.

Outcome 9 Organisational capability building APHRODITE HATZILADAS 146

Diversity Coordinator, Human Resources Branch

Information Privacy Act 2000 (Vic) I am the fi rst Diversity Coordinator to be appointed in DOI, and I think that indicates Signifi cant changes were made within DOI during the importance we are now placing on 2005–06 to strengthen its capacity to comply with the encouraging greater diversity in our workforce. Information Privacy Act 2000 (Vic) (the IP Act), and If you have good staff and you want to keep to address specifi c areas of concern. A governance them, and you want to attract more good project and a refreshed Privacy Policy were launched people, then you have to be creative in the to direct the implementation of an awareness work arrangements that you can offer them. raising program, and the development of internal audit tools and compliance systems. In addition, a Two years ago I became pregnant and that strategic training program for internal stakeholders really helped to clarify my personal views about was implemented. The governance project is being work/life balance options. Without the ability delivered to the whole of DOI by the Executive and to work one day a week from home I wouldn’t Legal Branch in Corporate Resources Division have been able to return to full-time work.

Initiatives in DOI’s Diversity Plan include Improving corporate processes, encouraging more women to apply for systems and knowledge leadership roles; creating a fl exible working environment; and employing people from diverse Chief Information Offi cer backgrounds such as the indigenous community In 2005–06, the position of Chief Information Offi cer or people with disabilities. The best thing (CIO) was created within DOI to focus on improving about our People Strategy and the associated business and systems solutions, and to provide Diversity Plan is that they are based on extensive appropriate governance for departmental ICT activities. research and consultation inside and outside the Department. I think that’s why our programs In conjunction with that appointment, a series of reviews have really been embraced by staff. was undertaken to enhance, refi ne and maintain sound corporate systems and processes. As a result, Since we’ve been rolling out the Diversity a number of initiatives were implemented including: Plan I’ve certainly sensed a change in people’s attitude — there’s a real sense of moving • improving ICT security from internal and external forward. Many more staff are interested in threats through a program of works accessing fl exible work options and we’ve had a tremendous response to our lunch-time health • developing a Procurement Competencies and wellbeing activities. Framework in the context of DOI

A highlight for me was when DOI was judged • ensuring that the Department develops a high last year as being in the top 25 organisations level of skill in the application of risk management across Australia for the quality of our work/life in project delivery balance program.

It’s really exciting to be involved in such proactive programs that are helping people to enjoy their work, and their lives outside work, much more.

DOI ANNUAL REPORT 2005–06 147

• introducing a fi nancial code of practice which IT Shared Services Centre identifi es the values, ethics and behaviour During 2005–06, DOI hosted the establishment of expected by all DOI people whenever they are an ICT Shared Services Centre (SSC) arrangement dealing with fi nancial matters and issues for the Victorian Government, in partnership with the OCIO in the Department of Premier and Cabinet • delivering a process across the Department to (DPC) and four initial partnering departments (DOI, oversee the transition and implementation of DSE, DPI and DVC). the current Australian accounting standards to the Australian Equivalent International Financial The core purpose of the SSC is to deliver high value Reporting Standard (AIFRS); ICT services to the participating departments to support their business outcomes. • completing the proof of concept and agreement to implement DOI’s electronic document and The following examples highlight some of the activities records management system and records that were undertaken within the shared services framework, to manage electronic and hardcopy framework during 2005–06: corporate documents in a single repository — TRIM Context • a Machinery of Government Change was enacted on 1 November 2005. IT staff from DSE and DOI, • DOI became an early adopter in the roll-out of along with a transition team, joined to form the the new TPAMS voice and telecommunication SSC within DOI capabilities, resulting in improved operations across government and reduced operating costs. • the SSC now supports approximately 8,000 desktop customers, of whom about 1,500 belong to DOI

• governance arrangements were put in place to allow the four participating departments, chaired by the OCIO at DPC, to guide the joint venture

• the SSC completed its ‘transition’ and opened for business in July 2006, offering services from a combined Service Catalogue

• improvements to the effectiveness, processes and services provided by the SCC are underway to attract, and prepare for the inclusion of, other Victorian Government departments.

Outcome 9 Organisational capability building 148

Major priorities for 2006–07

In 2006–07, DOI aims to build upon its existing capability by continuing to focus on developing the organisation’s people, processes and systems. Priorities will include:

• completing the DOI People Strategy 2006–08 as the next phase of human resource planning. The strategy will focus on developing a workforce that will enable DOI to deliver key future objectives, such as the 10-year transport improvement program in Meeting Our Transport Challenges. This will be done by continuing to recruit skilled individuals and providing relevant, quality training and development to all DOI people

• continuing to improve existing controls and systems across the Department to ensure that work output consistently meets the highest quality standards

• improving processes to manage departmental documentation and records and further enhancing fi nancial and IT systems

• providing early and continuous assessment of projects, to ensure they are accurately costed and managed to minimise potential risks, and that the most effi cient planning and delivery options are chosen

• sharing relevant systems and support services between DOI and other government agencies.

DOI ANNUAL REPORT 2005–06 FINANCIAL STATEMENTS

DOI ANNUAL REPORT 2005–06 151 Contents

Accountable Offi cer’s and Chief Finance Offi cer’s Declaration 152 Auditor-General’s Report 153 Operating statement 154 Balance sheet 155 Statement of recognised income and expense 156 Cash fl ow statement 157 Index for ‘Notes to the Financial Statements’ 158 Notes to the Financial Statements 159–226

These fi nancial statements cover the Department of Infrastructure, the Secretary to the Department of Infrastructure and the Shared Services Centre.

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

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 fi nancial statements please call (03) 9655 6666, or visit our web site www.doi.vic.gov.au

Financial Statements Accountable Offi cer’s and Chief Finance Offi cer’s Declaration 152

DOI ANNUAL REPORT 2005–06 153 Auditor General’s Report

Financial Statements Operating statement for the fi nancial year ended 30 June 2006 154

2006 2005 Notes $’000 $’000

Income Output appropriations 4 3,311,570 2,800,742 Special appropriations 4 1,570 1,114 Other income 5 303,968 235,283 Total income 3,617,108 3,037,139

Expenses Grants, payments to service providers and other payments 6 3,244,738 2,672,969 Employee benefi ts 7 78,668 63,485 Depreciation and amortisation expense 8 25,315 23,241 Value of assets written down/disposed of 9 18,301 29,515 Capital asset charge 16,557 9,929 Assets transferred to other agencies free of charge 10 1,088 17,184 Total expenses 3,384,667 2,816,323

Net result for the period 19(c) 232,441 220,816

The above operating statement should be read in conjunction with the accompanying notes.

DOI ANNUAL REPORT 2005–06 155 Balance sheet as at 30 June 2006

2006 2005 Notes $’000 $’000

Current assets Cash and cash equivalents 11 741,598 589,119 Receivables 12 338,050 334,441 Prepayments 2,856 695 Inventories 13 7,889 7,507 1,090,393 931,762 Land assets held for sale 1(o) 876 - Total current assets 1,091,269 931,762

Non-current assets Receivables 12 2,284 2,045 Infrastructure, property, plant and equipment 14 219,212 204,125 Intangible assets 15 30,445 23,759 Total non-current assets 251,941 229,929

Total assets 1,343,210 1,161,691

Current liabilities Payables 16 385,287 353,556 Loans and advances from Victorian General Government 5,759 15,300 Provisions for employee benefi ts 17 19,767 18,095 Lease liabilities 26 13,526 15,695 Other provisions 18 3,105 - Total current liabilities 427,444 402,646

Non-current liabilities Provisions for employee benefi ts 17 2,284 1,674 Other provisions 18 188,928 187,600 Lease liabilities 26 2,067 14,050 Prepaid lease income 1,845 1,912 Total non-current liabilities 195,124 205,236 Total liabilities 622,568 607,882

Net assets 720,642 553,809

Equity Contributed capital 1(v), 19(a) 371,426 439,255 Asset revaluation reserve 19(b) 74,286 72,065 Accumulated surplus 19(c) 274,930 42,489 Total equity 720,642 553,809 Contingent assets and liabilities 24, 25 Commitments from expenditure 28

The above balance sheet should be read in conjunction with the accompanying notes.

Financial Statements Statement of recognised income and expense for the fi nancial year ended 30 June 2006 156

2006 2005 Notes $’000 $’000

Gain on property revaluation 19(b) 2,221 2,115 Net income recognised directly in equity 2,221 2,115 Net result for the period 232,441 220,816

Total recognised income and expense for the period 234,662 222,931

The above statement of recognised income and expense should be read in conjunction with the accompanying notes.

DOI ANNUAL REPORT 2005–06 157 Cash fl ow statement for the fi nancial year ended 30 June 2006

2006 2005 Notes $’000 $’000

Cash fl ows from operating activities Receipts from Victorian Government 3,301,149 2,784,917 Receipts from other entities 171,627 115,014 Payments to suppliers and employees (2,508,444) (2,182,913) Payments of grants and transfer payments (924,529) (781,092) Goods and Services Tax recovered from the Australian Taxation Offi ce 177,811 174,923 Goods and Services Tax paid to the Australian Taxation Offi ce (15,953) (22,224) Interest received 3,441 3,185 Other income 122,441 109,942 Capital asset charge (16,557) (9,929) Net cash provided by (used in) operating activities 30 310,986 191,823

Cash fl ows from investing activities Payments for property, plant and equipment (including work in progress) (30,269) (15,831) Payments for land held for resale - (1,038) Payments for intangibles (including work in progress) (13,541) (4,427) Advances received from clients/sponsor agencies 242,951 315,582 Disbursements to contractors/agencies (244,022) (299,405) Net cash provided by (used in) investing activities (44,881) (5,119)

Cash fl ows from fi nancing activities Proceeds of capital contribution from Victorian Government 267,647 301,347 Payments of capital contribution to VicTrack (258,079) (320,415) Payments of capital contribution to State Government (99,559) (55,418) Repayment of borrowings (10,000) - Proceeds from borrowings 2,110 1,185 Repayment of fi nance liabilities (16,320) (126) Transfer from Yarra River Maritime Reserve Committee of Management 575 - Transfer to Port of Melbourne Corporation - (1,988) Net cash provided by (used in) fi nancing activities (113,626) (75,415)

Net increase in cash held 152,479 111,289 Cash at the beginning of the fi nancial year 589,119 477,830 Cash at the end of the fi nancial year 11 741,598 589,119

Financial instruments 20 Non-cash fi nancing and investing activities 33

The above cash fl ow statement should be read in conjunction with the accompanying notes.

Financial Statements Index for 'Notes to the Financial Statements' 158

Note Page

1 Summary of signifi cant accounting policies 159 – 165 2 Output groups of the Department 166 – 176 3 Restructuring of administrative arrangements 177 – 178 4 Summary of compliance with annual parliamentary and special appropriations 179 – 180 5 Other income 181 6 Grants, payments to service providers & other payments 181 7 Employee benefi ts 181 8 Depreciation and amortisation expense 182 9 Value of assets written down/disposed of 182 10 Assets transferred to other agencies free of charge 183 11 Cash and cash equivalents 183 12 Receivables 184 13 Inventories 184 14 Infrastructure, property, plant and equipment 185 – 188 15 Intangible assets 189 16 Payables 189 17 Provisions for employee benefi ts 190 18 Other provisions 191 19 Equity and movements in equity 192 20 Financial instruments 193 – 194 21 Ministers and Accountable Offi cers 195 22 Remuneration of executives 196 23 Remuneration of auditors 197 24 Contingent assets 197 25 Contingent liabilities 198 – 200 26 Finance leases 201 27 Major Projects Victoria 202 – 204 28 Commitments for expenditure 205 – 208 29 Superannuation funds 209 30 Reconciliation of the net result for the period to net cash fl ows from operating activities 210 31 Consolidation: Victorian Rail Services Pty Ltd 211 32 Administered items 212 – 217 33 Non-cash fi nancing and investing activities 218 34 Annotated receipts agreements 218 35 Trust account balances 219 36 Impacts of the adoption of Australian equivalents to International Financial Reporting Standards 220 – 225 37 Subsequent events 226

DOI ANNUAL REPORT 2005–06 159 Note 1. Summary of signifi cant accounting policies

Statement of compliance Accounting policies are selected and applied in a manner which ensures that the resulting fi nancial This general purpose fi nancial report has been information satisfi es the concepts of relevance and prepared on an accrual basis in accordance with reliability, thereby ensuring that the substance of the the Financial Management Act 1994, Australian underlying transactions or other events is reported. accounting standards including the Australian equivalents to International Financial Reporting The Department changed its accounting policies on Standards (‘AIFRS’) and Urgent Issues Group 1 July 2004 to comply with AIFRS. The transition to Interpretations. AIFRS is accounted for in accordance with AASB 1 ‘First-time Adoption of Australian equivalents to Basis of preparation International Financial Reporting Standards’, with The fi nancial report has been prepared based on 1 July 2004 as the date of transition. The impact historical cost convention, except for the revaluation of the transition from previous generally accepted of certain non-current assets and fi nancial accounting principles (GAAP) to AIFRS is disclosed instruments. Cost is based on the fair value of the in note 36. consideration given in exchange for the asset. The Department has also elected to apply Accounting In the application of AIFRS, management is required Standard AASB 2005–4 and 2005–6 ‘Amendments to to make judgments, estimates and assumptions Accounting Standards’ (June 2005), even though the about the carrying values of assets and liabilities that standards are not required to be applied until annual are not readily apparent from other sources. The reporting periods beginning on or after 1 January 2006. estimates and associated assumptions are based on historical experience and other factors that are The accounting policies set out below have been believed to be reasonable under the circumstance. applied in preparing the fi nancial statements for Actual results may differ from these estimates. the year ended 30 June 2006, the comparative information presented in these fi nancial statements for The estimates and underlying assumptions are the year ended 30 June 2005, and in the preparation reviewed on an ongoing basis. Revisions to of the opening AIFRS balance sheet at 1 July 2004, accounting estimates are recognised in the period the Department’s date of transition, except for the in which the estimate is revised if the revision affects accounting policies in respect of fi nancial instruments. only that period or in the period of the revision and The Department has not restated comparative future periods if the revision affects both current and information for fi nancial instruments, including future periods. derivatives, as permitted under the fi rst-time adoption transitional provisions. Judgments made by management in the application of AIFRS that have signifi cant effects on the current fi nancial statements and estimates with a signifi cant risk of material adjustments in the next year are disclosed throughout the notes in the fi nancial statements.

Financial Statements 160

(a) Reporting entity The SSC exists to provide ICT services to multiple The fi nancial statements include all the controlled departments by merging two former ICT functions activities of the Department. and establishing the SSC as a ‘best practice’ shared services provider. The reporting entity includes: Administered resources (i) Director of Public Transport The Department administers but does not control The Director of Public Transport (‘the Director’) is an certain resources on behalf of the Victorian offi ce established by section 8 of the Transport Act Government. It is accountable for the transactions 1983 (‘the Act’). The Director’s powers and functions involving these administered resources, but does are set out in section 9 of the Act and include not have the discretion to deploy these resources responsibility for the general administration of the for the achievement of the Department’s objectives. tram and train service contracts provided by private For these resources, the Department acts only on operators under partnership arrangements. The behalf of the Victorian Government. Administered Director is part of the Department. resources are accounted for using the accrual basis of accounting. (ii) Secretary to the Department of Infrastructure Transactions and balances relating to these In accordance with approval received under the administered resources are not recognised as Financial Management Act 1994, the Department’s departmental revenues, expenses, assets or liabilities annual report and fi nancial statements incorporate and are disclosed in the applicable output schedules the ‘Secretary to the Department of Infrastructure’ (refer note 32). as a body corporate created under the Project Development and Construction Management Act Other administered activities on behalf of parties 1994. The body corporate activities include the external to the Victorian Government functions performed by Major Projects Victoria. All The Department has responsibility for transactions activities are refl ected as controlled transactions and balances relating to administered funds on except project development and construction behalf of third parties external to the Victorian management activities for sponsor agencies, and Government. Revenues, expenses, assets and where sales and subsequent proceeds are received, liabilities administered on behalf of third parties are in which case they are refl ected as administered not recognised in these fi nancial statements as they transactions (refer note 27). are administered on a fi duciary and custodial basis, and therefore not controlled by the Department (iii) Shared Services Centre (SSC) (refer note 32). On 1 November 2005, the Shared Services Centre Non-current assets was established and responsibility transferred from the Department of Sustainability and Environment to All non-current assets controlled by the Department the Department of Infrastructure in accordance with (including Crown land) are reported in the balance the Financial Reporting Directions No.2 under the sheet. Non-current assets which the Department Financial Management Act 1994. administers on behalf of the Victorian Government are reported as administered resources (refer note 32).

DOI ANNUAL REPORT 2005–06 161

(b) Objectives and funding Revenue becomes controlled by the Department The Department’s objectives includes safe, effi cient when it is appropriated from the Consolidated Fund by transport, energy, information and communication the Victorian Parliament and applied to the purposes technology services and infrastructure as they are defi ned under relevant appropriations act. Additionally, fundamental to the State’s economic wellbeing. The the Department is permitted under section 29 of Department must deliver high-value infrastructure the Financial Management Act 1994 to have certain and services to stimulate economic growth and receipts annotated to the annual appropriation. The Victoria’s competitiveness in accordance with the receipts which form part of a section 29 agreement Government’s triple-bottom-line objectives. The are received by the Department and paid into the Department is predominantly funded by accrual- Consolidated Fund as administered revenue (note 32). based parliamentary appropriations for the provision At that point, section 29 provides for an equivalent of outputs. amount to be added to the annual appropriation. Examples of receipts which can form part of a section (c) Outputs of the Department 29 agreement are receipts from sales of products and Information about the Department’s output groups, services, Commonwealth specifi c purpose grants, and the expenses, revenues, assets and liabilities Municipal Council special purpose grants and the which are reliably attributable to those output groups, proceeds from the sale of assets. is set out in the Output Groups Schedule (refer note 2). Information about expenses, revenues, assets Amounts disclosed as revenue are, where applicable, and liabilities administered by the Department are net of returns, allowances and duties and taxes. provided in the schedule of administered expenses Revenue is recognised for each of the Department’s and revenues and the schedule of administered major activities as follows: assets and liabilities (refer note 32). (i) Output appropriations (d) Acquisitions of assets Revenue from the outputs the Department provides All acquisitions of assets are measured at the to government is recognised when those outputs acquisition date at the cost of acquisition. Cost have been delivered and the relevant Minister has of acquisition is the purchase consideration plus certifi ed their delivery in accordance with specifi ed incidental costs directly attributable to the acquisition. performance criteria.

Assets acquired at no cost, or for nominal (ii) Special appropriations consideration, are initially recognised at their fair value Under section 213A(4) of the Transport Act 1983, at the date of acquisition. revenue related to administrative costs associated (e) Revenue recognition with ticket infringements is appropriated to the All revenue received by the Department is generally Department. required to be paid into the Consolidated Fund.

Financial Statements 162

(iii) Public Transport Fund (f) Receivables All revenue received by the Director of Public All debtors are recognised at the nominal amounts Transport is retained in the Public Transport Fund due at the time of service delivery. Settlement of these pursuant to section 11 of the Transport Act 1983. amounts is required within 30 days from invoice date. Transport-related revenue, including bus and rail revenue, is recognised in the period to which it is The collectability of receivables is assessed received by the Department (refer note 5). Where periodically with provision being made for service obligations overlap reporting periods, revenue impairment. All known bad debts were written-off is recognised in the reporting period in which the as at 30 June 2006. service is delivered if it is reciprocal. (g) Revaluation of non-current assets (iv) Commonwealth grants Non-current physical assets measured at fair value are revalued with suffi cient regularity to ensure that Grants payable by the Commonwealth Government the carrying amount of each asset does not differ are recognised as administered revenue when the materially from its fair value. This revaluation process Department gains control of the underlying assets on normally occurs every three to four years for assets behalf of the State (refer note 32). Where grants are with useful lives of less than 30 years or six to eight reciprocal, revenue is recognised when performance years for assets with useful lives of 30 or greater years. occurs under the grant. Non-reciprocal grants are recognised as revenue when the grant is received or Revaluation increments are credited directly to equity receivable. Conditional grants may be reciprocal or in the revaluation reserve, except, to the extent that an non-reciprocal depending on the terms of the grant. increment reverses a revaluation decrement in respect of that class of asset previously recognised as an (v) Fines and fees expense in the net result, the increment is recognised As the Department does not gain control over assets as income in determining the net result. arising from fi nes and fees, no revenue is recognised. Revaluation decrements are recognised immediately The Department collects these amounts on behalf of as expenses in the net result, except, to the extent the Crown. Accordingly, the amounts are disclosed that a credit balance exists in the revaluation reserve as revenues in the schedule of administered revenues in respect of the same class of assets, they are and expenses (refer note 32). debited to the revaluation reserve.

(vi) Other revenue Revaluation increments and decrements relating Revenue from other departments is recognised to individual assets within a class of property, plant when it is received. Interest income is recognised and equipment are offset against one another within when it is earned. that class but are not offset in respect of assets in different classes. All other amounts of revenue over which the Department does not gain control are disclosed as Revaluation reserves are transferred to accumulated administered revenue in the schedule of administered surplus on derecognition of the relevant asset. revenues and expenses.

DOI ANNUAL REPORT 2005–06 163

(h) Depreciation of non-current assets Lease payments are apportioned between fi nance Depreciation is calculated on a straight-line basis to charges and reduction of the lease liability so as to write off the net cost or re-valued amount of each achieve a constant rate of interest on the remaining depreciable asset (excluding land) over its expected balance of the liability. Finance charges are charged useful life to the Department. Estimates of remaining directly against income. useful lives are made on a regular basis for all assets, with annual reassessments for material items. The Finance lease assets are amortised on a straight-line expected useful lives, which are unchanged from basis over the estimated useful life of the asset. 2004–05, are as follows: Operating lease payments are recognised as an Expected useful expense on a straight-line basis over the lease term. Asset category life (years)

Buildings 55 Incentives received on entering into operating leases are recognised as liabilities. Leased payments are Plant and equipment allocated between rental expense and reduction of Furniture and fi ttings 3 to 15 the liability. Computer equipment 3 Computer printers 4 (k) Non-current assets constructed Offi ce machines 5 by the Department Motor vehicles 3 The cost of non-current assets constructed by the Department includes the cost of all materials used Infrastructure assets in construction, direct labour on the project and an Bridges, structures and tunnels 90 to 115 appropriate proportion of variable and fi xed overhead. Mechanical and electrical equipment 20 (l) Intangible assets (i) Leasehold improvements Intangible assets are recognised at cost. Costs The cost of improvements to or on leasehold incurred subsequent to initial acquisition are properties is amortised over the unexpired period capitalised when it is expected that additional future of the lease or the estimated useful life of the economic benefi ts will fl ow to the Department. improvements to the Department, whichever is the Intangible assets with fi nite useful lives are amortised shorter. Leasehold improvements of offi ce assets are on a straight-line basis over the assets’ useful life. amortised over 10 years. Amortisation begins when the asset is available for (j) Leased assets use, that is, when it is in the location and condition Leases are classifi ed as fi nance leases when the necessary for it to be capable of operating in the lease transfers substantially all the risks and rewards manner intended by management. The amortisation of ownership from the lessor to the lessee. All other period and the amortisation method for an intangible leases are classifi ed as operating leases. asset with a fi nite useful life are reviewed at least at the end of each annual reporting period. Assets held under fi nance leases are recognised as assets of the Department at their fair value or, if lower, In addition, an assessment is made at each reporting at the present value of the minimum lease payments, date to determine whether there are indicators that each determined at the inception of the lease. The the intangible asset concerned is impaired. If so, corresponding liability to the lessor is included in the the assets concerned are tested as to whether their balance sheet as a fi nance lease obligation. carrying value exceeds their recoverable amount.

Financial Statements 164

Costs associated with the development of internal- (n) Cash and cash equivalents use computer software are capitalised where they Cash and cash equivalents comprise cash on hand exceed $500,000 and are amortised on a straight-line and cash in banks and investments in money market basis over the periods of expected benefi t, which instruments, net of outstanding bank overdrafts. Bank varies from three to fi ve years. overdrafts are shown within borrowings in current liabilities in the balance sheet. Costs in relation to web sites controlled by the Department are charged as expenses in the period (o) Land assets held for sale in which they are incurred unless they relate to Land assets are classifi ed as held for sale if their the acquisition of an asset, in which case they carrying amount will be recovered through a sale are capitalised and amortised over their period of transaction rather than through continuing use. expected benefi t. Generally, costs in relation to This occurs only when the sale is highly probable feasibility studies during the planning phase of a web and the asset is expected to be completed within site, and ongoing costs of maintenance during the one year from the date of classifi cation. operating phase are considered to be expenses. Costs incurred in building or enhancing a web site, Land assets, held for sale are measured at the lower to the extent that they represent probable future of carrying amount and fair value less selling costs economic benefi ts controlled by the Department and are not depreciated. that can be reliably measured, are capitalised as an (p) Trade and other creditors (payables) asset and amortised over the period of the expected Payables are recognised when the Department benefi ts which vary from three to fi ve years. becomes obliged to make future payments resulting (m) Impairment of assets from the purchase of goods and services. Intangible assets not yet available for use are tested (q) Provisions for impairment. All other assets are assessed annually Provisions are recorded when the Department has for indications of impairment, except for: a present obligation, either legal or constructive as a result of past event. The amounts recognised as • fi nancial assets (refer note 1(f)); and provisions relating to the dismantling and removal of • land assets held for sale or disposal assets and restoration of land are included in the cost (refer note 1(o)). of the assets.

If an indicator of impairment exists, the Department (r) Employee benefi ts determines whether the asset is impaired, ie when (i) Wages, salaries, annual leave, sick leave and the asset’s carrying amount exceeds its recoverabe long service leave amount. The asset’s recoverable amount is Provision is made for benefi ts accruing to employees established as the higher of the assets fair value less in respect of wages and salaries, annual leave, long costs to sell and depreciated replacement cost. service leave, and sick leave when it is probable that settlement will be required and they are capable of An asset impairment is recognised immediately in the being measured reliably. operating statement, unless the asset is carried at a revalued amount. Impairment loss on a revalued asset is offset against the available asset revaluation reserve of the relevant asset class.

DOI ANNUAL REPORT 2005–06 165

Provisions made in respect of employee benefi ts The net amount of GST recoverable from, or payable expected to be settled within 12 months, are measured to, the taxation authority is included as part of at their nominal values using the remuneration rate receivables or payables. expected to apply at the time of settlement. (t) Capital asset charge Provisions made in respect of employee benefi ts The capital asset charge is imposed by the which are not expected to be settled within 12 Department of Treasury and Finance and represents months are measured as the present value of the the opportunity cost of capital invested in the non- estimated future cash outfl ows to be made by the current physical assets used in the provision of Department in respect of services provided by outputs. The charge is calculated on the carrying employees up to reporting date. amount of non-current physical assets.

(ii) Superannuation (u) Resources provided and received free of charge or for nominal consideration The amount charged to the operating statement Contributions of resources and resources provided in respect of defi ned benefi t plan superannuation free of charge or for nominal consideration are represents the contributions made by the Department recognised at their fair value. Contributions in the form to the superannuation plan in respect to the of services are only recognised when a fair value can current services of current staff of the Department. be reliably determined and the services would have Superannuation contributions are made to the plans been purchased if not donated. based on the relevant rules of each plan. (v) Contributed capital The Department does not recognise any defi ned Consistent with UIG Interpretation 1038 Contributions benefi t liability in respect of the superannuation plan by Owners Made to Wholly-Owned Public Sector because the Department has no legal or constructive Entities and FRD 2 Contributed Capital, as issued obligation to pay future benefi ts relating to its under the Financial Management Act 1994, employees; its only obligation is to pay superannuation appropriations for additions to net assets have been contributions as they fall due. The Department of designated as contributed capital. Other transfers that Treasury and Finance administers and discloses the are in the nature of contributions or distributions have State’s defi ned benefi t liabilities in its fi nancial report. also been designated as contributed capital.

(s) Goods and services tax (w) Rounding of amounts Revenues, expenses and assets are recognised Amounts in the fi nancial report have been rounded net of the amount of goods and services to the nearest thousand dollars or, in other cases, to tax (GST), except: the nearest dollar.

• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

• for receivables and payables which are recognised inclusive of GST.

Financial Statements Note 2. Output groups of the Department 166

A description of each output group undertaken Public Transport Services by the Department during the year ended These outputs involve overseeing the delivery 30 June 2006 and the departmental and government of quality, sustainable and cost-effective passenger outcomes to which these output groups relate are train, tram and bus services to metropolitan summarised as follows: Melbourne and rural and regional Victoria, in partnership with operators and in accordance with Output groups contractual arrangements.

Public Safety and Security These outputs aim to continue the improvement in the These outputs contribute to the achievement of the delivery of, and access to, public transport services key government outcome of safe streets, homes and and to increase the overall mobility of Victorians. The workplaces. This is done by delivering initiatives and outputs help to protect the environment by increasing regulatory activities that improve safety in the public public transport patronage, thereby reducing the transport, road, marine and energy sectors and reliance on private motor vehicles. The Government reduce the frequency, severity and cost of accidents works in partnership with operators to achieve these and incidents. It also covers activities aimed at output aims. Contracts with operators are managed to maintaining the security of critical infrastructure ensure that the services provided meet contractually- and the preparedness to respond to emergencies agreed standards and that the committed investment involving this infrastructure. levels for rolling stock and buses are delivered.

Reducing the State’s road toll is a high priority for These outputs also include the provision of school the Government. A key measure of success will bus services and managing the Multi Purpose Taxi be a 20 per cent reduction in serious injuries and Program, which provides subsidised taxi services for deaths from 2002 to 2007. This equates to saving 80 people unable to use other forms of public transport. lives and avoiding 1,300 serious injuries each year. Key departmental outputs to achieve this outcome Information and communication technologies (ICT) Policy, Programs and Infrastructure include continuing to implement arrive alive! road safety initiatives to change road user behaviour, and These outputs provide the Government with strong improving the quality of road infrastructure through policy and development guidance in relation to initiatives such as the Safer Road Infrastructure information and communication technologies (ICT), Program. Regulatory measures to ensure private and and implementing a range of targeted industry and commercial vehicles are appropriately registered and community programs, and state-wide infrastructure. driven also contribute to achieving this outcome. They also deliver cost-effective long-term investment in, and management of, government ICT infrastructure. Similar regulatory frameworks and initiatives are in place to improve safety on trains and trams, and on The Government has determined to take a more the State’s waterways relating to both commercial strategic approach to ICT and to achieve whole- and private recreational vessels. There has also been of-government standardisation in eGovernment increasing emphasis on addressing the security of infrastructure and services by implementing the critical infrastructure. Putting People at the Centre strategy.

DOI ANNUAL REPORT 2005–06 167

The eGovernment Infrastructure output contributes improve service quality and timeliness for rail travel to this by delivering major infrastructure initiatives between Melbourne and four major regional centres, such as the Telecommunications Purchasing and extend the metropolitan tram network, reopen country Management Strategy and Project Rosetta, Victoria passenger rail lines, improve strategic arterial road links Online and Data Centre Consolidation, which enable and establish a major freeway linking the city’s south- the Government to take a leadership role in using ICT eastern suburbs. to transform its operations. Within the Public Construction and Land The Government is committed to connecting more Development output, the Department assesses the Victorians to the internet and other new technologies, feasibility of infrastructure development options and improving the skills and effectiveness of the business coordinates the delivery of a variety of transport- environment and promoting the advanced use of ICT related infrastructure projects. These are in addition to across the State. a large number of other, non-transport-related, major construction projects that are funded through other The ICT Policy and Programs output supports government departments and which are delivered these goals by continuing to implement the by Major Projects Victoria as a service to the host Government’s agenda as outlined in Growing departments and agencies. The latter projects are not Tomorrow’s Industries Today, Regional Connections, reported in the Department’s output statements. and Connecting Communities second wave. The output undertakes a range of programs designed to The Energy Policy Services output provides policy promote growth in Victorian ICT industries, and also and program support to deliver a safe and reliable manages relations with the Federal Government to energy supply to the State, and to further the achieve ICT policy objectives. Government’s goal of increasing the use of renewable energy sources. Infrastructure Planning, Delivery and Management Departmental outcomes These outputs involve providing the Government with strategic policy and development guidance in relation 1. Public safety and security: Improve safety in to integrated transport planning and the State’s energy the road, public transport, marine and energy supply, implementing targeted industry and community sectors and reduce the incidence, severity and programs, and delivering cost-effective, long-term cost of accidents; and maintain the security of investment in, and management of, public infrastructure public infrastructure. and major government projects in Victoria. 2. Infrastructure delivery and management: The Government is committed to building better, Deliver cost-effective investment in, and more accessible transport links for the State. This management of, public infrastructure includes increasing the use of public transport and and major government projects in Victoria. strengthening the connections between our ports, industry and agricultural centres. These outputs deliver 3. Access and mobility: Plan and deliver a a combination of strategic road and rail infrastructure sustainable public transport system and improvements to manage congestion and improve the road network that improves people’s mobility movement of people and goods throughout Victoria. and access to services while managing the They also encompass infrastructure projects that will externalities of travel demand.

Financial Statements 168

4. Connected Victoria: Deliver an innovative, Government outcomes accessible information and communication technology environment that shares the benefi ts 1. More quality jobs and thriving, innovative of new technologies across the community and industries across Victoria drives economic growth. 2. Growing and linking all of Victoria 5. Rural and regional development: Boost prosperity and support rural and regional 3. Protecting the environment for future generations communities through the provision of 4. Sound fi nancial management. improved transport, energy, and information and communication technology infrastructure 5. Building friendly confi dent and safe communities and services.

6. Greater public participation and more 6. Effi cient movement of freight: Plan and deliver accountable government infrastructure and a regulatory regime to improve effi ciency and safety in the freight and logistics 7. High quality accessible health and sector while reducing environmental and community services community impacts caused by the movement of freight. 8. High quality education and training for lifelong learning 7. Secure and sustainable energy supply: Provide policy advice and implement programs to deliver a 9. A fairer society that reduces disadvantage safe and reliable energy supply to the State that is and respects diversity effi cient, affordable and increasingly sustainable. 10. Effi cient use of natural resources 8. Integrated policy development: To provide coordination within the portfolio, with other departments and agencies and to manage relations with other governments to achieve policy objectives within transport, energy and ICT consistent with the overall planning strategies and policies of the Victorian Government.

9. Organisational capability building: Build DOI’s capability and capacity to provide high-quality, strategic advice; responsive, accessible and effi cient services; and sound development, assessment and delivery of large public infrastructure projects.

DOI ANNUAL REPORT 2005–06 169 Note 2. Output groups of the Department (continued)

Output groups schedule — controlled income and expenses for the year ended 30 June 2006

Public ICT Policy, Public Safety Transport Programs & and Security Services Management 2006 2006 2006 $’000 $’000 $’000

Income Output appropriations 110,170 2,082,622 39,548 Special appropriations - 1,570 - Other income 3,469 242,654 3,454 Total income 113,639 2,326,846 43,002

Expenses Grants, payments to service providers and other payments 96,930 2,160,382 31,035 Employee benefi ts 12,167 31,672 10,215 Depreciation and amortisation expense 1,358 19,265 1,629 Value of assets written down/disposed of 212 245 33 Capital asset charge 174 14,896 109 Assets transferred to other agencies free of charge - - 66 Total expenses 110,841 2,226,460 43,087 Net result for the period 2,798 100,386 (85)

Output groups schedule — statement of recognised income and expense for the year ended 30 June 2006

Gain/(loss) on property revaluation - - - Net income recognised directly in equity - - - Net result for the period 2,798 100,386 (85) Total recognised income and expense for the period 2,798 100,386 (85)

* These amounts relate to activities of the Shared Services Centre undertaken for departments other than DOI.

Financial Statements 170

Infrastructure, Planning, Delivery & Total Output Other - Non Management Groups Attributable * TOTAL 2006 2006 2006 2006 $’000 $’000 $’000 $’000

1,079,230 3,311,570 - 3,311,570 - 1,570 - 1,570 25,112 274,689 29,279 303,968 1,104,342 3,587,829 29,279 3,617,108

932,127 3,220,474 24,264 3,244,738 21,639 75,693 2,975 78,668 1,776 24,028 1,287 25,315 17,811 18,301 - 18,301 1,378 16,557 - 16,557 1,022 1,088 - 1,088 975,753 3,356,141 28,526 3,384,667 128,589 231,688 753 232,441

2,221 2,221 - 2,221 2,221 2,221 - 2,221 128,589 231,688 753 232,441 130,810 233,909 753 234,662

DOI ANNUAL REPORT 2005–06 171 Note 2. Output groups of the Department (continued)

Output groups schedule — controlled income and expenses for the year ended 30 June 2005

Infrastructure Ports & Planning & ICT & Intermodal Policy Multimedia Gateways 2005 2005 2005 $’000 $’000 $’000

Income Output appropriations 18,800 42,800 23,700 Special appropriations - - - Other income 100 2,204 - Total income 18,900 45,004 23,700

Expenses Grants, payments to service providers & other payments 12,104 34,290 19,662 Employee benefi ts 6,039 8,972 1,492 Depreciation and amortisation expense 212 2,493 851 Value of assets written down / disposed of 1 9,545 24 Capital asset charge 19 59 1,571 Assets transferred to other agencies free of charge - - - Total expenses 18,375 55,359 23,600 Net result for the period 525 (10,355) 100

Output groups schedule — statement of recognised income and expense for the year ended 30 June 2005

Gain/(loss) on property revaluation - - (9,298) Net income recognised directly in equity (9,298) Net result for the period 525 (10,355) 100 Total recognised income and expense for the period 525 (10,355) (9,198)

Financial Statements 172

Regional & Regional & Transport Rural Transport Rural Transport Metro Transport Metro Transport Safety & Services Infrastructure Services Infrastructure Accessibility TOTAL 2005 2005 2005 2005 2005 2005 $’000 $’000 $’000 $’000 $’000 $’000

403,000 356,500 1,308,742 492,500 154,700 2,800,742 - - 1,114 - - 1,114 6,356 - 201,666 21,649 3,308 235,283 409,356 356,500 1,511,522 514,149 158,008 3,037,139

369,246 313,386 1,383,117 398,498 142,666 2,672,969 5,733 1,566 22,367 6,567 10,749 63,485 3,662 1,898 10,631 1,222 2,272 23,241 347 88 2,865 14,767 1,878 29,515 1,490 102 3,510 2,862 316 9,929 17,184 ----17,184 397,662 317,040 1,422,490 423,916 157,881 2,816,323 11,694 39,460 89,032 90,233 127 220,816

- - - 8,484 2,929 2,115 - - - 8,484 2,929 2,115 11,694 39,460 89,032 90,233 127 220,816 11,694 39,460 89,032 98,717 3,056 222,931

DOI ANNUAL REPORT 2005–06 173 Note 2. Output groups of the Department (continued)

Output groups schedule — Controlled assets and liabilities for the year ended 30 June 2006

Public ICT Policy, Public Safety Transport Programs and and Security Services Infrastructure 2006 2006 2006 $’000 $’000 $’000

Current assets Cash and cash equivalents 178 338,019 158 Receivables 11,338 256,180 6,403 Prepayments 26 1,759 5 Inventories - - - Land assets held for sale - - - Total current assets 11,542 595,958 6,566

Non-current assets Receivables 293 866 210 Infrastructure, property plant and equipment 3,328 75,551 864 Intangible assets 4,379 12,970 12,123 Total non-current assets 8,000 89,387 13,197

Total assets 19,542 685,345 19,763

Current liabilities Payables 4,095 203,914 2,318 Loans and advances from Victorian General Government - - - Provisions for employee benefi ts 2,378 8,214 2,388 Lease liabilities 263 13,102 19 Other provisions - 3,105 - Total current liabilities 6,736 228,335 4,725

Non-current liabilities Provisions for employee benefi ts 273 865 196 Other provisions 1 180,165 - Lease liabilities 735 903 97 Prepaid lease income - - - Total non-current liabilities 1,009 181,933 293 Total liabilities 7,745 410,268 5,018

Net assets 11,797 275,077 14,745

* These amounts relate to activities of the Shared Services Centre undertaken for departments other than DOI.

Financial Statements 174

Infrastructure Planning, Delivery & Total Output Other - Non Management Groups Attributable TOTAL 2006 2006 2006 2006 $’000 $’000 $’000* $’000

403,243 741,598 - 741,598 52,011 325,932 12,118 338,050 95 1,885 971 2,856 7,889 7,889 - 7,889 876 876 - 876 464,114 1,078,180 13,089 1,091,269

915 2,284 - 2,284 137,660 217,403 1,809 219,212 973 30,445 - 30,445 139,548 250,132 1,809 251,941

603,662 1,328,312 14,898 1,343,210

167,546 377,873 7,414 385,287 5,759 5,759 - 5,759 5,565 18,545 1,222 19,767 142 13,526 - 13,526 - 3,105 - 3,105 179,012 418,808 8,636 427,444

853 2,187 97 2,284 8,762 188,928 - 188,928 331 2,067 - 2,067 1,845 1,845 - 1,845 11,791 195,027 97 195,124 190,803 613,835 8,733 622,568

412,859 714,477 6,165 720,642

DOI ANNUAL REPORT 2005–06 175 Note 2. Output groups of the Department (continued)

Output groups schedule — Controlled assets and liabilities for the year ended 30 June 2005

Infrastructure Ports & Planning & ICT & Intermodal Policy Multimedia Gateways 2005 2005 2005 $’000 $’000 $’000

Current assets Cash and cash equivalents 20 799 3,183 Receivables 962 537 1,019 Prepayments - - - Inventories - - - Total current assets 982 1,336 4,202

Non-current assets Receivables - - - Infrastructure, property plant and equipment 347 1,138 254 Intangible assets 5 8,258 9 Total non-current assets 352 9,396 263

Total assets 1,334 10,732 4,465

Current liabilities Payables 161 564 221 Loans and advances from Victorian General Government - - - Provisions for employee benefi ts 1,663 2,127 587 Lease liabilities 35 40 - Total current liabilities 1,829 2,731 808

Non-current liabilities Provisions for employee benefi ts 131 224 50 Other provisions - - - Lease liabilities 747 836 33 Prepaid lease income - - - Total non-current liabilities 878 1,060 83 Total liabilities 2,707 3,791 891

Net assets (1,373) 6,941 3,574

Financial Statements 176

Regional & Regional & Transport Rural Transport Rural Transport Metro Transport Metro Transport Safety & Services Infrastructure Services Infrastructure Accessibility TOTAL 2005 2005 2005 2005 2005 2005 $’000 $’000 $’000 $’000 $’000 $’000

74,709 55,475 298,073 156,457 403 589,119 40,646 44,994 162,473 55,009 28,801 334,441 96 - 584 15 - 695 - - - 7,507 - 7,507 115,451 100,469 461,130 218,988 29,204 931,762

- - 2,045 - - 2,045 16,775 1,388 26,574 153,373 4,276 204,125 3,407 107 9,258 137 2,578 23,759 20,182 1,495 37,877 153,510 6,854 229,929

135,633 101,964 499,007 372,498 36,058 1,161,691

44,561 4,527 224,560 66,060 12,902 353,556 - - - 15,300 - 15,300 1,406 1,383 5,310 2,879 2,770 18,095 2,354 40 12,556 42 628 15,695 48,321 5,950 242,426 84,281 16,300 402,646

124 87 567 189 302 1,674 - - 187,600 - - 187,600 769 813 4,936 891 5,025 14,050 - - - 1,912 - 1,912 893 900 193,103 2,992 5,327 205,236 49,214 6,850 435,529 87,273 21,627 607,882

86,419 95,114 63,478 285,225 14,431 553,809

DOI ANNUAL REPORT 2005–06 177 Note 3. Restructuring of administrative arrangements

(i) The Shared Services Centre (SSC) was established within the Department of Infrastructure with certain assets and liabilities being transferred from Department of Sustainability and Environment (DSE) to the Department of Infrastructure on 1 November 2005.

Movements into the Department Treatment of net capital contribution received from DSE 2006 $’000 The following assets and liabilities were recognised by the Department of Infrastructure at the date of transfer:

Assets Plant and equipment 2,407

Liabilities Employee benefi ts (1,179) Net capital contribution 1,228

(ii) Responsibility for the Yarra River Maritime Reserve Committee of Management was transferred from the Melbourne Convention and Exhibition Trust (MCET) on 7 June 2006.

Movements into the Department Treatment of net assets received from MCET 2006 $’000 The following assets and liabilities were recognised by the Department of Infrastructure at the date of transfer:

Assets Cash at bank 575 Land 6,220 Building 1,424

Liabilities Loan (459) Net assets (treated as a revenue item) 7,760

Financial Statements 178

(iii) On 1 February 2005 the Station Pier Committee of Management was abolished and responsibility transferred to the Port of Melbourne Corporation as a result of the Parliament passing the Transport Legislation Amendment Act 2004 on 15 December 2004.

Movements out of the Department Treatment of net assets given to Port of Melbourne Corporation 2005 $’000

The following assets and liabilities were recognised by the Port of Melbourne Corporation at the date of transfer: Station Pier Committee of Management

Assets Cash at bank 1,988 Plant and equipment 7 Land 9,400 Infrastructure 20,112 Net capital contribution 31,507

DOI ANNUAL REPORT 2005–06 Note 4. Summary of compliance with annual 179 parliamentary and special appropriations

(a) Summary of compliance with annual parliamentary appropriations

The following table discloses the details of the various annual 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 Management Act 1994

Payments from Annual Appropriation Advance to Treasurer Section 29 Section 30

2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Controlled Provision for outputs 3,054,627 2,713,528 2,932 - 300,760 256,247 (6,106) (56,402) Additions to net assets 349,653 303,497 - - - - 6,106 47,402

Administered Payments made on behalf of the State 35,900 ------9,000 Total 3,440,180 3,017,025 2,932 - 300,760 256,247 - -

(1) The variance is primarily related to agreed changes in committed projects being delivered in the next fi nancial year.

b) Summary of compliance with special appropriations

Authority Purpose Appopriations applied 2006 2005 $’000 $’000 Section 213A (4) of the Refund passenger transport companies the administrative costs Transport Act 1983 associated with ticket infringements 1,570 1,114

Financial Statements 180

Financial Management Act 1994

Total Parliamentary Section 32 Section 35 Authority Appropriations Applied Variance (1)

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

70,027 46,613 51,402 - 3,473,642 2,959,986 3,311,570 2,800,742 162,072 159,244

56,610 32,025 37,289 29,625 449,658 412,549 268,550 320,022 181,108 92,527

- - - - 35,900 9,000 35,900 9,000 - - 126,637 78,638 88,691 29,625 3,959,200 3,381,535 3,616,020 3,129,764 343,180 251,771

DOI ANNUAL REPORT 2005–06 181 Note 5. Other income

2006 2005 $’000 $’000

Income from other departments 175,283 111,444 Transport-related income 111,933 111,756 Assets received free of charge 7,702 - Interest 3,451 3,191 Other income 5,599 5,344 Recognition of bus shelters - 3,548 Total other income 303,968 235,283

Note 6. Grants, payments to service providers and other payments 2006 2005 $’000 $’000

Rail system operating and related payments 806,432 702,983 Grants associated with the capital asset charge 777,363 599,030 Total rail services 1,583,795 1,302,013

Road services 854,401 725,494 Bus services 538,731 494,263 Grants to other agencies 106,868 19,159 Administration and information technology 39,566 21,554 Multi purpose taxi program 36,082 34,028 Grants paid for community and social benefi ts 17,504 14,614 Occupancy 10,498 8,347 Insurance legal and internal audit fees 3,803 3,375 Finance costs 2,663 4,200 Other payments 50,827 45,922 Total grants, payments to service providers and other payments 3,244,738 2,672,969

Note 7. Employee benefi ts 2006 2005 $’000 $’000

Salary and wages 57,870 45,284 Annual leave and long-service leave expense 7,928 8,499 Superannuation (excluding salary sacrifi ce) 6,340 5,243 Other on-costs (fringe benefi ts tax, payroll tax and workcover levy) 6,530 4,459 Total employee benefi ts 78,668 63,485

Financial Statements Note 8. Depreciation and amortisation expense 182

2006 2005 $’000 $’000

Depreciation Buildings 474 397 Infrastructure assets 163 583 Plant and equipment 4,823 3,563 Vehicles - 58 Total depreciation 5,460 4,601

Amortisation Leasehold improvements 3,405 2,362 Leased equipment 10,768 10,768 Leased vehicles 340 135 Intangible assets 5,342 5,375 Total amortisation 19,855 18,640

Total depreciation and amortisation 25,315 23,241

Note 9. Value of assets written down/disposed of 2006 2005 $’000 $’000

Land 9,197 6,745 Buildings - 440 Plant and equipment 44 699 Leased vehicles 489 - Previous project expenditure capitalised 7,912 7,924 Revaluation write down of Goninan train - 1,969 Impairment write down for land held for sale 189 - Total infrastructure, property, plant and equipment 17,831 17,777 Intangibles 470 11,738 Total value of assets written down/disposed of 18,301 29,515

DOI ANNUAL REPORT 2005–06 183 Note 10. Assets transferred to other agencies free of charge

2006 2005 $’000 $’000

Transfer to City of Yarra 1,022 - Transfer to Department of Justice 37 - Transfer to Department of Sustainability & Environment 29 - Transfer to VicTrack - 17,184 Total assets transferred to other agencies free of charge 1,088 17,184

Note 11. Cash and cash equivalents

2006 2005 $’000 $’000

Cash at bank and on hand 16,652 33,022 Funds held in trust – cash 674,946 506,097 – short term deposits 50,000 50,000 Total cash and cash equivalents 741,598 589,119

The above fi gures are reconciled to cash at the end of the fi nancial year as shown in the cash fl ow statement as follows: Balances above 741,598 589,119 Balances as per cash fl ow statement 741,598 589,119

Short term deposits

The deposits are bearing fl oating interest rates between 5% and 6% (2005 – 4% and 5%).

Financial Statements Note 12. Receivables 184

2006 2005 $’000 $’000

Current Amounts owing from Victorian Government 257,459 246,849 Other debtors 80,591 87,592 Total current receivables 338,050 334,441

Non-current Amounts owing from Victorian Government 2,284 - Other debtors - 2,045 Total non-current receivables 2,284 2,045

Note 13. Inventories

2006 2005 $’000 $’000

Land inventory – at cost 7,889 7,507 Total inventories 7,889 7,507

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. Refer note 1(a)(ii).

DOI ANNUAL REPORT 2005–06 185 Note 14. Infrastructure, property, plant and equipment

2006 2005 $’000 $’000

Land and buildings Land - at cost 47,375 25,091* Land - at independent valuation 2006 9,815 - Land - at independent valuation 2005 39,135 39,135* Land - at independent valuation 2004 37,640 37,640 Land - at independent valuation 2003 - 18,911 133,965 120,777 Buildings - at independent valuation 2005 4,168 2,745 Buildings - at independent valuation 2004 3,627 3,627 Less: accumulated depreciation (861) (389) 6,934 5,983 Total land and buildings 140,899 126,760

Infrastructure Infrastructure - at independent valuation 2005 4,035 3,548 Less: accumulated depreciation (164) - Total infrastructure 3,871 3,548

Plant and equipment Plant at cost 25,975 20,924 Less: accumulated depreciation (15,993) (11,906) 9,982 9,018 Leasehold improvement offi ce assets – at cost 19,055 17,404 Less: accumulated amortisation (14,964) (11,751) 4,091 5,653 Total plant and equipment 14,073 14,671

Leased equipment Leased equipment – at cost 107,685 107,685 Less: accumulated amortisation (99,609) (88,840) Total leased equipment 8,076 18,845

Leased vehicles Leased vehicles – at cost 3,176 1,601 Less: accumulated amortisation (394) (143) Total vehicles 2,782 1,458

Work in progress Infrastructure and other assets 49,511 38,843 Total work in progress 49,511 38,843

Total net written down value 219,212 204,125

*The 2005 comparative has been restated between the two lines to refl ect the correct classifi cation between land ‘at cost’ and land ‘at valuation’. The total amount is not changed.

Financial Statements 186

Valuations The basis of valuation of land, buildings and infrastructure is fair value, which is market value for land and buildings and depreciated replacement cost for infrastructure assets and is based on an independent assessment by the Valuer-General. Where an independent assessment by the Valuer-General has been used, the fi nancial year in which the assessment was made is also disclosed.

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 and keeping in line with the current Department of Treasury and Finance revaluation policy of revaluing at least every fi ve years.

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

DOI ANNUAL REPORT 2005–06 187

Reconciliation

Reconciliations of the carrying amounts of each class of infrastructure, property, plant, and equipment at the beginning and end of the current fi nancial year are set out below.

Infrastructure Freehold land Buildings assets $’000 $’000 $’000 Carrying amount at 1 July 2004 118,712 9,291 20,695 Additions 14,875 - - Disposals/write-offs (refer note 9) (6,745) (420) - Depreciation/amortisation expense (refer note 8) - (397) (582) Net revaluation increments/decrements 668 1,447 - Transfer by way of contributed capital (10,671) - (20,113) Assets received free of charge (refer note 5) - - - Assets given free of charge (refer note 10) - - - Transfers between classes 3,938 (3,938) - Transfers to intangibles - - - Recognition of bus shelters - - 3,548 Classifi ed as held for sale - - - Carrying amount at 1 July 2005 120,777 5,983 3,548 Additions 14,100 - 486 Disposals/write-offs (refer note 9) (9,197) - - Depreciation/amortisation expense (refer note 8) - (474) (163) Net revaluation increments/decrements 2,221 - - Transfer by way of contributed capital 2,053 - - Assets received free of charge (refer note 5) 6,220 1,425 - Assets given free of charge (refer note 10) (1,022) - - Transfers between classes - - - Transfers to intangibles - - - Recognition of bus shelters - - - Classifi ed as held for sale (1,187) - - Balance at 30 June 2006 133,965 6,934 3,871

* Vehicles includes leased motor vehicles from VicFleet

Financial Statements 188

Plant and Building Leased Work in equipment leasehold equipment Vehicles* progress Total $’000 $’000 $’000 $’000 $’000 $’000 8,382 7,531 29,613 19,619 44,866 258,709 4,905 504 - 1,185 30,509 51,978 (698) (20) - (1,969) (7,924) (17,776) (3,564) (2,362) (10,768) (193) - (17,866) - - - - - 2,115 (7) - - - (342) (31,133) ------(17,184) - (17,184) ------(28,266) (28,266) - - - - - 3,548 ------9,018 5,653 18,845 1,458 38,843 204,125 3,489 1,843 - 2,097 18,580 40,595 (44) - - (489) (7,912) (17,642) (4,823) (3,405) (10,769) (340) - (19,974) - - - - - 2,221 2,407 - - - - 4,460 1 - - 56 - 7,702 (66) - - - - (1,088) ------(1,187) 9,982 4,091 8,076 2,782 49,511 219,212

DOI ANNUAL REPORT 2005–06 189 Note 15. Intangible assets

2006 2005 $’000 $’000 Software (at cost) 27,134 20,422 Less: accumulated amortisation (17,004) (11,666) 10,130 8,756 Work in progress 20,315 15,003 Total intangible assets 30,445 23,759

Reconciliation of movements Carrying amount at start of the year 23,759 7,067 Transfer from work in progress - 28,266 Additions 12,498 5,539 Disposals/write downs (refer note 9) (470) (11,738) Amortisation for the year (refer note 8) (5,342) (5,375) Carrying amount at end of the year 30,445 23,759

Note 16. Payables

2006 2005 $’000 $’000 Creditors and accruals 214,901 175,112 Trust fund creditors and accruals 163,252 175,043 Unearned/prepaid income 7,134 3,401 Total payables 385,287 353,556

Financial Statements Note 17. Provisions for employee benefi ts 190

2006 2005 $’000 $’000

Current Annual leave 6,972 6,851 Long-service leave 11,736 10,286 Accrued performance incentive 1,059 958 Total current provisions for employee benefi ts 19,767 18,095

Non-current Long-service leave 2,284 1,674 Total non-current provisions for employee benefi ts 2,284 1,674

Employee entitlements

2006 2005 $’000 $’000

Current All annual leave and long service leave (LSL) entitlements representing 7+ years of continuous service - Short-term employee benefi ts, that fall due within 12 months after the end of the period measured at nominal value 6,854 6,379 - Other long-term employee benefi ts that do not fall due within 12 months after the end of the period measured at present value 12,913 11,716 19,767 18,095

Non-current Long service leave representing less than 7 years of continuous service measured at present value 2,284 1,674 2,284 1,674

DOI ANNUAL REPORT 2005–06 191 Note 18. Other provisions

2006 2005 $’000 $’000

Current Provision for the employee entitlements of rail operators 3,105 -

Non-current Provision for the employee entitlements of rail operators1 177,650 167,704 Provision for ‘Onelink’ agreed claims 2 8,761 17,034 Provision for public liability claims 3 1,565 1,922 Provision for dismantling property, plant & equipment 909 909 Other 43 31 Total non-current 188,928 187,600

Total other provisions 192,033 187,600

1 The State has agreed to assume responsibility for the employee entitlements of the employees of the Public Transport Operators as at 18 April 2004. 2 The Government has agreed to settlement for various claims in relation to the Transport Ticketing System owed by the ‘Onelink’ company. 3 As successor in law of the former Public Transport Corporation, the provision for public liability claims was transferred to the Department on 1 July 2003. This provision is for all active claims of public liability on public transport infrastructure owned by the former Public Transport Corporation, the former National Express rail operator, the Department and for VicTrack where an indemnity has been provided by the Director of Public Transport.

Financial Statements Note 19. Equity and movements in equity 192

2006 2005 $’000 $’000

(a) Contributed capital Balance at the beginning of the fi nancial year 439,255 554,557 Capital contributed upon restructure (refer note 3) 1,228 - Capital contribution by Victorian State Government (refer note 4) 268,550 320,022 Capital contribution by Victorian State Government (other) 2,053 - Capital contributions to agencies outside the Infrastructure portfolio (170) (5,100) Capital contributions to agencies within the Infrastructure portfolio * (339,490) (430,224) Balance at the end of the fi nancial year 371,426 439,255

(b) Reserves Asset revaluation reserve 74,286 72,065 74,286 72,065

Asset revaluation movements Balance at the beginning of the fi nancial year 72,065 69,950 Increment on revaluation of land during the year 2,221 668 Increment on revaluation of freehold buildings during the year - 1,447 Balance at the end of the fi nancial year 74,286 72,065

(c) Accumulated surplus/ (defi cit) Balance at the beginning of the fi nancial year 42,489 (178,327) Net result for the reporting period 232,441 220,816 Balance at the end of the fi nancial year 274,930 42,489

Total equity at the end of the fi nancial year 720,642 553,809

* Capital contributions to agencies within the Infrastructure portfolio: Rail services (VicTrack) 258,079 320,415 Road services (VicRoads) 40,200 19,500 Public Transport Ticketing Body (TTA) 35,128 10,500 Port of Melbourne Corporation 6,083 39,108 Road services (SEITA) - 32,681 Rail services (VLine) - 5,450 VicUrban - 2,570 Total capital contributions to agencies within Infrastructure portfolio 339,490 430,224

DOI ANNUAL REPORT 2005–06 193 Note 20. Financial instruments

(a) Credit risk exposures The credit risks on fi nancial assets of the Department which have been recognised in the balance sheet 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 fi nancial statements.

Exposures arise predominantly from assets bearing variable interest rates as the Department intends to hold fi xed-rate assets to maturity.

Floating Non-interest interest rate bearing Total 2006 Notes $’000 $’000 $’000 Financial assets Cash and cash equivalents 11 59,816 681,782* 741,598 Receivables 12 - 340,334 340,334 59,816 1,022,116 1,081,932

Weighted average interest rate 5.6% Financial liabilities Payables 16 - 385,287 385,287 Lease liabilities 26 15,593 - 15,593 15,593 385,287 400,880 Net fi nancial assets 44,223 636,829 681,052

Floating Non-interest interest rate bearing Total 2005 Notes $’000 $’000 $’000

Financial assets Cash and cash equivalents 11 80,351 508,768* 589,119 Receivables 12 - 336,486 336,486 80,351 845,254 925,605 Weighted average interest rate 5.5%

Financial liabilities Payables 16 - 353,556 353,556 Lease liabilities 26 29,745 - 29,745 29,745 353,556 383,301 Net fi nancial assets 50,606 491,698 542,304

* 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.

Financial Statements 194

(c) Fair value of fi nancial assets and liabilities

(i) On-Statement of balance sheet The net fair value of cash and cash equivalents and non-interest bearing monetary fi nancial assets and fi nancial liabilities of the Department equals their carrying amounts.

(ii) Off-Statement of balance sheet The Department has potential fi nancial assets and liabilities which may arise from certain contingencies disclosed in note 24 and 25. As explained in that note, contingent liabilities by defi nition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.

DOI ANNUAL REPORT 2005–06 195 Note 21. Ministers and Accountable Offi cers

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 positions of Ministers and Accountable Offi cers in the Department are as follows:

Minister for Transport Peter Batchelor MP 1 July 2005 to 30 June 2006 Minister for Major Projects John Lenders MP 1 July 2005 to 30 June 2006 Minister for Energy Industries and Resources Theo Theophanous MLC 1 July 2005 to 30 June 2006 Minister for Information and Communication Technology Marsha Thomson MLC 1 July 2005 to 30 June 2006 Secretary, Department of Infrastructure Howard Ronaldson 1 July 2005 to 30 June 2006

Remuneration

Total remuneration received or receivable by the Accountable Offi cers (excluding Acting Accountable Offi cers whose remuneration is included in ‘Remuneration of Executives’ (refer to note 22) in connection with the management of the Department during the reporting period) was in the range:

2006 2005 Income Band No. Income Band No. $350,000 – $359,999 1 $330,000 - $339,999 1

Remuneration amounts relating to Ministers are reported in the fi nancial 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.

Financial Statements Note 22. Remuneration of executives 196

The numbers of executive offi cers, other than Ministers and the Accountable Offi cer and their total remuneration during the reporting period are shown in the fi rst two columns in the table below in their relevant income bands. The base remuneration of executive offi cers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, pay in lieu of leave payments, redundancy payments and retirement benefi ts.

Income Band Total Remuneration Base Remuneration 2006 2005 2006 2005 No. No. No. No. Less than $100,000 24 26 25 28 $100,000–109,999 1 2 4 1 $110,000–119,999 2 2 2 4 $120,000–129,999 3 3 4 4 $130,000–139,999 4 3 5 6 $140,000–149,999 8 3 9 7 $150,000–159,999 7 5 7 3 $160,000–169,999 5 8 5 4 $170,000–179,999 3 2 3 5 $180,000–189,999 4 3 3 4 $190,000–199,999 2 2 5 2 $200,000–209,999 6 6 4 1 $210,000–219,999 3 4 - 5 $220,000–229,999 3 1 - - $230,000–239,999 1 2 3 1 $240,000–249,999 1 3 2 1 $250,000–259,999 1 - - 1 $260,000–269,999 2 1 1 - $270,000–279,999 - - - - $280,000–289,999 1 1 - - $290,000–299,999 1 - - - Total numbers 82 77 82 77 Total amount $11,297,977 $10,459,867 $10,578,301 $9,450,304

DOI ANNUAL REPORT 2005–06 197 Note 23. Remuneration of auditors

Audit fees paid or payable to the Victorian Auditor-General’s Offi ce for audit of the Department’s fi nancial report: 2006 2005 $’000 $’000

Paid as at 30 June 2006 68 100 Payable as at 30 June 2006 201 161 Total remuneration of auditors 269 261

The Auditor-General’s Offi ce has not provided the Department any other services.

Note 24. Contingent assets

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

Public Transport Rail Partnership Agreements

The Director of Public Transport, on behalf of the Crown, entered into new contractual arrangements to operate rail transport services in the State operative from 18 April 2004. The following summarises the major contingent assets arising from those arrangements.

Contingent assets on early termination or expiry of the partnership agreement With respect to additional costs arising to the Director on the early termination or expiry, the transport operator must indemnify the Director for any losses, damages or costs incurred by him as a result of the termination. If the transport operator does not do so, the Director has the right to draw on the transport operator’s performance bond totalling $115 million for the amount of the losses, damages or costs.

Access charge adjustment Should the access charge regime for train rail access be reset, then the Director may receive income in respect of any increased rate as a result of the reset. The Director is also required to reimburse the operator’s reasonable costs incurred in renegotiating the access charges.

Contingent assets arising from litigation The Department has initiated proceedings to recover clean-up costs associated with marine pollution incidents from various entities.

Profi t sharing The Director is entitled to receive payment from franchisees should franchisee profi ts exceed defi ned thresholds.

Financial Statements Note 25. Contingent liabilities 198

Contingent liabilities arise from guarantees, New ticketing system start-up: The State is obligated indemnities and other forms of support provided by to pay any additional labour costs associated with the Government and from legal disputes and other the training and deployment of staff in relation to the claims against the Government arising from a past establishment of the new ticketing system. event. Contingent liabilities by defi nition are similar to a liability – the distinguishing feature being the Access charge adjustment uncertainty over the Government’s obligation. Should the access charge regime for train rail access be reset, then the Director is obligated to make payment to the operator in respect of any increased Public Transport Rail cost as a result of the reset. Partnership Agreements The Director is also required to reimburse the The Director of Public Transport, on behalf of the operator’s reasonable costs incurred in renegotiating Crown, entered into new contractual arrangements the access charges. to operate rail transport services in the State operative from 18 April 2004. The following summarises the Regional Fast Rail major contingent liabilities arising from The Director is required to meet the incremental costs those arrangements. incurred by Connex associated with the introduction Contingent liabilities arising of Regional Fast Rail. during the partnership period There are a number of contingent liabilities arising Connex and Mainco indemnity from the New Partnership Agreements between the The Department has indemnifi ed Connex and Mainco Director of Public Transport and Connex and Yarra (including agents and contractors) against any loss Trams which were signed on 19 February 2004. caused by Regional Rail Link while undertaking These possible liabilities refer to payments to be made Regional Fast Rail works within the Connex network. by the Director of Public Transport to Connex and Yarra Trams should certain events occur: VicTrack and Southern Cross Station Authority indemnity Farebox risk sharing: The Director is obligated to The Director indemnifi es VicTrack and the Southern make payments should farebox receipts fall below Cross Station Authority from any claim brought by the defi ned thresholds. operators under the Infrastructure Lease.

New ticketing revenue guarantee payment: Contingent liabilities on early termination or expiry of partnership agreement Operators have an option to elect to permanently Partnership assets move to a Revenue Guarantee Payment Regime To maintain continuity of services, the Director, should implementation matters or new ticket fare at early termination or expiry of the partnership structures associated with the introduction of the new arrangements, will: ticketing system cause a real reduction in the farebox. The Revenue Guarantee Payment will be based on • for new rolling stock — either acquire the new the prior period’s farebox, including an estimate for rolling stock at predetermined values or have patronage growth and infl ation. Under the above the lease payment obligations transferred to the arrangement, the Director is liable for the difference Director or a successor partner. between actual farebox received and the guaranteed revenue amount. • for partnership assets — either purchase the assets or have the assets transferred to the successor.

DOI ANNUAL REPORT 2005–06 199

Unfunded Superannuation On 1 October 2003, V/Line Passenger Pty Ltd, At the early termination or expiry of the contract, the a company under a Deed of Company Arrangement, Director will assume any unfunded superannuation was purchased by V/Line Passenger Corporation, amounts (apart from contributions the operator is a statutory authority and has reverted to required to pay over the contract term) to the extent government ownership. that the State becomes the successor operator.

Contingent liabilities arising from potential Country Train Safety System changes to existing conditions Country Train Safety Systems is the project under Change in Victorian Law: Operators may make a which the Train Protection and Warning System claim against the Director for any net losses incurred is generally being installed. The Director of Public as a result of a change in Victorian Law which directly Transport has indemnifi ed Pacifi c National (Country relates to the operator’s business. Track Access Provider) against all costs associated with the Train Protection and Warning System. Latent Defects: The Director is responsible for leased infrastructure defects above a threshold amount. National Electricity Code Administrator Pre-existing Contamination: The Director is responsible for all costs associated with pre-existing The National Electricity Code Administrator (NECA) contamination clean-up. The Director also indemnifi es Members Agreement, dated 9 May 1996, provides the operator from and against all losses, damages, that the maximum amount payable by the state actions suits, claims, demands, costs and expenses of Victoria on winding up of NECA is $1,285,000. associated with pre-existing contamination. Further, this amount is in addition to any amount payable under the memorandum of association under Native Title: The Director is liable for payments of any which NECA was established. valid compensation claim to native title holders made under any Native Title Law in respect of the land NECA Directors have been provided an indemnity defi ned in the infrastructure leases entered into with against liability for actions taken by the Directors the operators. as part of the energy market reform program. The Treasurer authorised the Minister for Energy Industries Contingent liabilities arising from National to sign the deed on behalf of the State of Victoria Express receivership and asked that the Department monitor and report In December 2002, the Government appointed the contingent liability as part of its annual fi nancial receivers and managers to the National Express train statements. The indemnity is for seven years from the and tram partnerships, in order to protect government date each director leaves offi ce. interest, ensure continuation of services up to the commencement of new partnership arrangements and deal with any subsequent termination issues.

The Treasurer, under the Receivership Deed of Indemnity, has agreed to indemnify the receivers for debts properly incurred by them in the course of receivership. The Treasurer has also agreed to remunerate the receivers in accordance with the rates set out in the deed.

Financial Statements 200

National Electricity Market Management Company

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:

2006 2005 Quantifi ed: $’000 $’000 Legal disputes 3,393 - Personal injury 1,003 200 4,396 200

DOI ANNUAL REPORT 2005–06 201 Note 26. Finance leases

Leasing arrangements

Finance leases relate to motor vehicles with lease terms of 3 years and the Onelink arrangement, which expires during 2006/07. The Department has options to purchase the vehicles at the conclusion of the lease agreements.

With the implementation of the AIFRS, the Department of Infrastructure has determined that the contractual arrangement for the supply and management of the current automated ticketing system should be classifi ed as a fi nance lease. Accordingly, the note contains information on the obligations remaining under the current Onelink contract.

Finance lease liabilities

Minimum future Present value of minimum lease payments future lease payments 2006 2005 2006 2005 $’000 $’000 $’000 $’000

Not longer than 1 year 14,409 18,308 13,526 15,695 Longer than 1 year and not longer than 5 years 2,216 14,868 2,067 14,051 Minimum lease payments* 16,625 33,176 15,593 29,746 Less future fi nance charges (1,032) (3,430) - - Present value of minimum lease payments 15,593 29,746 15,593 29,746

Included in the balance sheet as: Current liabilities 13,526 15,695 Non-current liabilities 2,067 14,051 15,593 29,746

*Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.

Financial Statements Note 27. Major Projects Victoria 202

Land sales

The activities of Major Projects Victoria (MPV) include land sales from nominated property development projects, the proceeds from which are remitted directly into the consolidated fund and are disclosed as administered items in the Department’s fi nancial statements (refer note 32 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. Refer also note 1(a)(ii).

Capital works expenditure undertaken during the reporting period by MPV has been included in the cash fl ow statement and in the sponsor agencies’ accounts as either completed works or works in progress. While the operating statement does not include the income or expenditure of sponsor agencies, the statement of fi nancial position does refl ect 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:

2006 2005 Sponsor agency $’000 $’000

Department of Victorian Communities 101,857 66,322 Department of Innovation, Industry and Regional Development 59,543 102,959 Department of Human Services 36,343 108,596 Department of Primary Industries 19,960 22,936 Department of Premier and Cabinet 16,685 9,254 Department of Treasury and Finance 4,650 - Other 3,912 353 242,950 310,420

DOI ANNUAL REPORT 2005–06 203

The following outlines the commitments undertaken by MPV on behalf of sponsor agencies which are disclosed in the notes to their fi nancial statements:

2006 2005 $’000 $’000

Department of Victorian Communities* 37,740 105,898 Department of Innovation, Industry and Regional Development 27,923 47,146 Department of Human Services 24,963 32,215 Department of Premier and Cabinet 5,233 22,028 Department of Primary Industries 2,261 207 Department of Justice 563 - Department of Treasury and Finance - 1,612 Capital commitment (inclusive of GST) 98,683 209,106 Less: GST recoverable (8,971) (19,010) Capital commitments (exclusive of GST) 89,712 190,096

* Includes Offi ce of Commonwealth Games

Royal Melbourne Showgrounds Redevelopment Joint Venture Agreement

As part of MPV’s activities, MPV it has been engaged as the Project Manager for the Redevelopment of the Showgrounds on behalf of the Department of Primary Industries (DPI), a project designated as a nominated project under the Project Development and Construction Management Act 1994 (the Act). Pursuant to the ACT, the Secretary to the Department of Infrastructure hassigned a number of agreements in relation to the Showgrounds Redevelopment Joint Venture (the ‘joint venture’). The joint venture was established between the State Government of Victoria and the Royal Agricultural Society of Victoria (RASV) to redevelop the Royal Melbourne Showgrounds (RMS) and deliver on the Government’s $100.7 million commitment to safeguard the showgrounds as a major showcase for Victorian agriculture and to support links between the city and rural and regional areas. A further $7.9 million funding is to be contributed to the costs, including the relocation of a creche to the western non-core land and RMS and remediation for contamination.

The joint venture agreement came into effect on 30 June 2005, the date on which all conditions attaching to the joint venture arrangements were achieved by both joint venture participants. An incorporated joint venture entity, the Showgrounds Nominees Pty Ltd, has been established to hold the assets of the joint venture operation on behalf of the joint venture participants. An unincorporated joint venture entity has also been established for the purpose of carrying out the joint venture project on behalf of the participants.

Financial Statements 204

A Non-Core Development Agreement was signed on 5 April 2006 for the redevelopment of the eastern non-core land. A state support deed for the non-core land has also been signed under which the State agrees to support certain payment obligations of RASV as specifi ed in prescribed sections of the Non-Core Development Agreement.

A Development and Operations Agreement (DOA) to deliver the project under the Partnership Victoria (PV) framework was fi nalised in June 2005. Under the DOA, PPP Solutions (PPPS) is the provider of the construction services to be completed by August 2006 and the Facility Management (FM) services over a 25-year period. The PPPS construction and maintenance service fee schedule refl ects the 25-year duration of the DOA. The joint venture is responsible, among other things for the payments and contributions from the joint venture participants including RASV contributions to service fees and to the Asset Replenishment Fund.

Upon the completion of the DOA, the core land leased to PPPS will expire and the joint venture will take title of the buildings and facilities.

While the Secretary to the Department signed the agreements, the Department of Primary Industry (DPI) is the entity, which on behalf of the State, has a 50 per cent equity and voting interest in the operations of Showgrounds Nominees Pty Ltd and a 50 per cent interest in the unincorporated joint venture. Accordingly, accountability and the fi nancial reporting responsibility rests with DPI. DPI will refl ect its 50% share of joint venture assets, liabilities, expenditure and revenue in its fi nancial statements. The State has agreed to support the RASV with respect to certain obligations of the RASV which may arise out of the operations of the joint venture agreement. The extent of these obligations cannot be fi nancially quantifi ed until such time as those support obligations eventuate.

DOI ANNUAL REPORT 2005–06 205 Note 28. Commitments for expenditure

The following commitments have not been recognised as liabilities in the fi nancial statements:

2006 2005 $’000 $’000

Capital and other related commitments Commitments contracted for at the reporting date but not recognised as liabilities, payable: Within one year 133,867 105,024 Later than one year but not later than 5 years 62,716 33,573 Later than 5 years - - Commitments (inclusive of GST) 196,583 138,597 less: GST recoverable (17,871) (12,600) Commitments (exclusive of GST) 178,712 125,997

Rail and bus commitments

The Department has entered into a number of contracts with private operators 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 2006 based on these existing contracts.

In February 2004, the Government announced new partnership arrangements to deliver the metropolitan tram and train system. The Government signed contracts with Yarra Trams to operate the total metropolitan tram network and with Connex to operate the total metropolitan train network. The new partnership arrangements have reduced risk for the operators and also provide for greater State protection regarding performance and obligations.

In addition to the train and tram arrangements, a new industrywide body, Metlink, which is responsible for providing and overviewing networkwide ticketing, marketing, information and complaints handling services, commenced operations. Metlink mainly subsumes the functions of the Revenue Clearing House, VicTrip and the Melbourne Passenger Growth Initiative but also takes on additional responsibilities.

The new partnership arrangements are effective from 18 April 2004 and operate for approximately a fi ve-year period to 30 November 2008. The State has an option to extend the partnership period for a period of no less than six months and ending no later than 31 May 2010.

Financial Statements 206

The partnership commitments have been calculated on the basis of the contract period up to 30 November 2008.

V/Line Passenger rail services reverted to government control with a new partnership arrangement established for the period from 1 October 2003 to 29 October 2006. This arrangement has been extended to 31 December 2009.

2006 2005 $’000 $’000 Rail commitments 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 1,010,008 879,420 Later than one year but not later than 5 years 2,434,898 2,084,017 Later than 5 years 1,414,563 1,554,422 Rail commitments (inclusive of GST) 4,859,469 4,517,859 less: GST recoverable (441,770) (410,714) Rail commitments (exclusive of GST) 4,417,699 4,107,145 Representing: Non-cancellable operating leases 4,417,699 4,107,145

Comparisons of the rail commitment at 30 June 2006 with the prior year reveals the following changes:

• rail commitments have expired one additional year since 30 June 2005

• VLine Passenger arrangement extended to 31 December 2009

• additional funding for accessible public transport in Victoria

• Metropolitan train safety communications system

DOI ANNUAL REPORT 2005–06 207

2006 2005 $’000 $’000 Bus commitments 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 596,321 558,873 Later than one year but not later than 5 years 604,266 1,110,387 Later than 5 years 16,109 31,582 Commitments (inclusive of GST) 1,216,696 1,700,842 Less: GST recoverable 110,609 (154,622) Bus commitments (exclusive of GST) 1,106,087 1,546,220 Representing: Non-cancellable operating leases 1,106,087 1,546,220

Comparisons of the bus commitment at 30 June 2006 with the prior year reveal the following changes:

• bus commitments have expired one additional year since 30 June 2005

• funding for additional metropolitan and country bus services

Negotiations on arrangements expiring in December 2007 have commenced, new arrangements should be in place over the next 18 months.

Financial Statements 208

2006 2005 Leases $’000 $’000 Commitments for minimum lease payments in relation to non-cancellable leases are payable as follows: Within one year 11,158 9,616 Later than one year but not later than 5 years 54,018 10,979 Later than 5 years 195,207 - Commitments (inclusive of GST) 260,383 20,595 Less: GST recoverable (23,671) (1,872) Commitments (exclusive of GST) 236,712 18,723 Future minimum lease payments expected to be received in relation to non-cancellable sub-leases of operating leases 52 468

2006 2005 Outsourcing commitments $’000 $’000

Commitments under outsourcing contracts at the reporting date but not recognised as liabilities, payable: Within one year 430 1,280 Later than one year but not later than 5 years 213 854 Later than 5 years - - Commitments (inclusive of GST) 643 2,134 Less: GST recoverable (58) (194) Commitments (exclusive of GST) 585 1,940

DOI ANNUAL REPORT 2005–06 209 Note 29. Superannuation funds

Government employees’ superannuation funds

No liability is recognised in the balance sheet for the Department’s share of the State’s unfunded superannuation liability. The State’s unfunded superannuation liability has been refl ected in the fi nancial statements of the Department of Treasury and Finance.

However, superannuation contributions for the reporting period are included as part of employee benefi ts in the operating statement of the Department.

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

Contribution Contribution Contribution Contribution outstanding outstanding for the year for the year at year end at year end 2006 2005 2006 2005 Fund $ $ $ $

State Superannuation Scheme — revised and new 2,543,492 2,608,004 - - Victorian Superannuation Fund 6,936,078 4,411,935 - - Victorian Water Superannuation Fund 34,097 40,643 - - Transport Superannuation Fund 400,328 403,586 - - Various other 1,203,520 1,047,858 - - Total 11,117,515 8,512,026 - -

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 benefi ts on retirement, disability or death. These funds provide defi ned lump sum benefi ts based on years of service and fi nal average salary. The above benefi ts are provided via either defi ned benefi t 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.

Financial Statements Note 30. Reconciliation of the net result for the period to net cash fl ows from operating activities 210

2006 2005 $’000 $’000

Net result for the period 232,441 220,816 Value of assets written down/disposed of 18,301 29,515 Depreciation and amortisation 25,315 23,241 Net assets free of charge (6,673) 17,184 Recognition of bus shelters - (3,548) Change in operating assets and liabilities, net effects from restructuring: (Increase) in receivables and debtors 4,835 (7,216) (Decrease)/increase in payables and operating liabilities 36,563 (102,364) Increase in other provisions 2,432 14,182 Decrease/(increase) in prepayments (2,161) 80 (Decrease) in prepaid income (67) (67) Net cash from operating activities 310,986 191,823

DOI ANNUAL REPORT 2005–06 211 Note 31. Consolidation: Victorian Rail Services Pty Ltd

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 Australian accounting standards, the operating statement of VRS are as follows (after eliminations) has been consolidated into the Department’s fi nancial statements at 30 June 2005:

30 June 2005 (after eliminations) $

Income Interest received 42,916 Other 26,777 Distribution of assets by liquidator1 (1,054,301) Total income (984,608)

Expenses Liquidator fees 9,569 Staff related costs 766 Other operating expenses2 5,057 Total expenses 15,392

Net result for the period (1,000,000)

There are no current year results as the VRS was liquidated prior to 30 June 2005 and therefore there is also no balance sheet comparative.

1 The amounts included represent the fi nal distribution of funds remaining in the company after the liquidators have extinguished all obligations to creditors. This amount was paid by the liquidators and received by the Department on 1 June 2005. 2 Included in Other operating expenditure is an amount for the Audit fees for the 2005 Annual Report. These fees have been recognised as revenue and expense as they will be paid by the Department on behalf of VRS. There is no obligation by VRS or the liquidators to repay this amount to the Department.

Financial Statements Note 32. Administered Items 212

Infrastructure Public ICT Policy, Planning, Public Safety Transport Programs and Delivery & and Security Services Infrastructure Management TOTAL 2006 2006 2006 2006 2006 $’000 $’000 $’000 $’000 $’000

Administered income Vehicle registration fees 679,609 - - - 679,609 Driver licences 63,619 - - - 63,619 Stamp duty 545,339 - - - 545,339 Other licence fees and permits 19,738 - - - 19,738 Commonwealth grants 13,425 - - 286,543 299,968 Appropriations - payments made on behalf of the State - - - 35,900 35,900 Concession fees (refer next page) - - - 57,042 57,042 Fees and other income 22,866 14,870 - 873 38,609 Revenue from disposal of assets 12 138 - 724 874 Natural disaster funding - - - 10,710 10,710 Interest income - - - 311 311 Total administered income 1,344,608 15,008 - 392,103 1,751,719

Administered expenses Taxes paid into consolidated fund 1,329,224 - - 161,985 1,491,209 Commonwealth grants paid into the consolidated fund 13,425 - - 286,543 299,968 Payments made on behalf of the State - - - 35,900 35,900 Asset sale proceeds and other income paid into the consolidated fund 1,960 14,061 - 1,136 17,157 Natural disaster expenses - - - 10,710 10,710 Total administered expenses 1,344,609 14,061 - 496,274 1,854,944 Income less expenses (1) 947 - (104,171) (103,225)

Administered assets Funds held in trust - 2,084 - 11,665 13,749 Cash and receivables - 430 - 7,004 7,434 Concession fee notes receivable - - - 219,589 219,589 Total administered assets - 2,514 - 238,258 240,772

Administered liabilities Creditors and accruals - 3,487 - 11,665 15,152 Amounts owing to other departments - 82,702 - - 82,702 Prepaid lease income - - - 6,600 6,600 Total administered liabilities - 86,189 - 18,265 104,454

DOI ANNUAL REPORT 2005–06 213 Note 32. Administered Items (continued)

Infrastructure Ports & Planning & ICT & Intermodal Policy Multimedia Gateways 2005 2005 2005 $’000 $’000 $’000

Administered income Vehicle registration fees - - - Driver licences - - - Stamp duty - - - Other licence fees and permits - - - Commonwealth grants - - - Appropriations - payments made on behalf of the state 9,000 - - Concession fees (refer next page) - - - Fees and other income 21 - 2,207 Income from disposal of assets - - - Natural disaster funding - - - Interest income - - - Total administered income 9,021 - 2,207

Administered expenses Taxes paid into consolidated fund - - - Assets transferred free of charge - - - Commonwealth grants paid into the consolidated fund - - - Payments made on behalf of the State 9,000 - - Asset sale proceeds and other income paid into the consolidated fund 21 - 2,207 Natural disaster expenses - - - Total administered expenses 9,021 - 2,207 Income less expenses - - -

Administered assets Funds held in trust - - 4,215 Cash and receivables - - 134 Concession fee notes receivable - - - Total administered assets - - 4,349

Administered liabilities Creditors and accruals 50 53 4,349 Other - -- Concession fee note liabilities - - - Total administered liabilities 50 53 4,349

Financial Statements 214

Regional & Regional & Metropolitan Transport Rural Transport Rural Transport Metro Transport Transport Safety & Services Infrastructure Services Infrastructure Accessibility TOTAL 2005 2005 2005 2005 2005 2005 $’000 $’000 $’000 $’000 $’000 $’000

----645,352 645,352 ----68,155 68,155 ----553,387 553,387 ----19,619 19,619 - 74,340 - 156,788 21,978 253,106 - - - - - 9,000 -- - 128,760 - 128,760 - - 9,205 15,762 21,405 48,600 - - - 490 - 490 - 1,800 - - - 1,800 - - 301 - - 301 - 76,140 9,506 301,800 1,329,896 1,728,570

----1,305,716 1,305,716 ------74,340 - 156,788 21,978 253,106 - - - - - 9,000

- - 9,506 18,338 2,202 32,274 - 1,800 - - - 1,800 - 76,140 9,506 175,126 1,329,896 1,601,896 - - - 126,674 - 126,674

- 1,744 6,294 159 3,252 15,664 - 56 229 6,181 - 6,600 - - - 328,739 - 328,739 - 1,800 6,523 335,079 3,252 351,003

- 1,996 4,122 3,062 3,335 16,967 - - 83,687 - - 83,687 - - - 10,806 - 10,806 - 1,996 87,809 13,868 3,335 111,460

DOI ANNUAL REPORT 2005–06 215 Note 32. Administered Items (continued)

CityLink contingent asset CityLink subsequent events

The Melbourne CityLink Concession Deed contains Deductibility of the concession fees compensable enhancement provisions that enable On 20 July 2006, the High Court of Australia the Victorian Government to claim 50 per cent of determined a dispute between CML and the additional revenue derived by CityLink Melbourne Australian Taxation Offi ce in respect of deductibility Limited (CML) as a result of certain events that for taxation purposes of concession fees payable by particularly benefi t CityLink including changes to the CML to the Victorian Government. adjoining road network. The High Court confi rmed the 2004 ruling handed On 20 May 2005, the Victorian Government lodged down by the full bench of the Federal Court that the a compensable enhancement claim relating to works concession fees are tax deductible as an ongoing to improve the traffi c fl ow on the West Gate Freeway cost of operating the CityLink. between Lorimer and Montague Streets. The claim remains outstanding at the certifi cation date of the The impact of this decision has been incorporated fi nancial report. into the valuation methodology used to estimate the present value of concession notes held by the CityLink contingent liability Victorian Government as at 30 June 2006.

An outstanding claim exists from CML pursuant to Assignment of concession notes the Melbourne CityLink Concession Deed, relating On 26 July 2006, CML, Transurban Infrastructure to an alleged material adverse effect in respect of Management Limited (TIML) and the Victorian the construction of Wurundjeri Way and certain other Government entered into an agreement to assign roads in the Docklands area. In accordance with all concession notes held by, and due to be issued the Concession Deed, the claim was referred to an to, the Victorian Government to CML and TIML for a independent expert who has determined in favour of defi ned payment stream totalling $614.254 million. the Victorian Government. CML has now referred the This payment stream recognises the deductibility of claim to arbitration. the concession fees for taxation purposes by CML. Enforceability of this agreement is dependent upon all The Corporation is defending this claim on behalf of outstanding matters being fi nalised and the passing the Victorian Government and is unable to assess by Parliament of amendments to the Melbourne the likelihood of the success of the claim at the CityLink Act 1995. certifi cation date of the fi nancial report. The discount interest rate implicit in this payment stream has been used to estimate the present value of the concession notes held by the Victorian Government as at 30 June 2006.

The fi nancial transactions resulting from this agreement are yet to be confi rmed.

Financial Statements 216

2006 2005 $’000 $’000

CityLink income CityLink concession notes income: Additional issued notes 25,457 18,013 Restatement increment 15,968 - Fair value increment 14,910 16,902 Revaluation increment - 96,346 Total CityLink concession notes income 56,335 131,261 CityLink redevelopment income 4,206 194

Total CityLink income 60,541 131,455

CityLink expenses CityLink concession notes revaluation decrement 3,500 - Net loss on assignment of CityLink concession notes - 2,695 Total CityLink expenses 3,500 2,695

CityLink assets CityLink concession notes receivable: Face value of notes 682,000 547,178 Less: Discount for future value (462,411) (380,424) Present value of concession notes receivable 219,589 166,754 CityLink receivables - 161,985 Total CityLink assets 219,589 328,739

CityLink liabilities Deferred CityLink redevelopment income 6,600 10,806 Total CityLink liabilities 6,600 10,806

2006 $’000

Reconciliation of the face value of the City Link concession notes receivable Face value at the beginning of the year 547,178 Additional issued notes 95,600 Restatement increment 39,222 Face value at the end of the year 682,000

Reconciliation of the present value of City Link concession notes receivable Present value at the beginning of the year 166,754 Additional issued notes 25,457 Restatement increment 15,968 Fair value increment 14,910 Less: Revaluation decrement (3,500) Present value at the end of the year 219,589

DOI ANNUAL REPORT 2005–06 217

The Victorian Government and the Transurban The fi nancial transactions in 2004-05 resulting from Group entered into the following agreements on these agreements have been disclosed in this note as 9 June 2005: CityLink receivables of $161.985 million (consideration for the assignment of notes and minimum revenue • Deed of Assignment which provides for the benefi t), CityLink redevelopment revenue of $0.194 Government to assign to the Transurban Group million (minimum revenue benefi t) and deferred concession notes having an aggregate face value CityLink redevelopment revenue of $10.806 million. of $305.254 million where CML receives a tax deduction for the concession fees or $344.476 During 2005-06, payment of the $150.985 million as million where the concession fees are not tax consideration for the assignment and the $11.000 deductible. The consideration for this assignment million for the minimum revenue benefi t reduced is $150.985 million, settled in two instalments, CityLink receivables to nil. Recognition of the $100.817 million on 1 July 2005 and $50.168 construction progress relating to the Tullamarine- million on 30 June 2006. Calder Redevelopment project resulted in $4.206 million being recognised as revenue, reducing • Tullamarine-Calder Redevelopment Deed deferred CityLink redevelopment revenue by a which provides for the redevelopment of the corresponding amount. interchange between the Tullamarine and the Calder Freeways. The Deed provides for the Victorian Government and CML to equally share in the net CityLink revenue uplift which will result from the redevelopment with a minimum revenue benefi t of $11.000 million for the Victorian Government to be paid on 1 July 2005. The total revenue impact will be determined for the period from six months after completion of the redevelopment to the end of the CityLink concession period. Should the redevelopment not be completed by 30 June 2011, the Victorian Government is required to repay the minimum revenue benefi t together with interest. In the event the minimum revenue benefi t is repaid, the Victorian Government will be free to pursue a compensable enhancement claim for half of the toll revenue uplift resulting from the redevelopment of the interchange.

Financial Statements Note 33. Non-cash fi nancing and investing activities 218

2006 2005 $’000 $’000

Restructuring of administrative arrangements 1,228 29,519 Acquisition of property, plant and equipment by means of fi nance leases 2,097 1,185 Total non-cash fi nancing and investing activities 3,325 30,704

Restructuring of administrative arrangements Details with respect to the restructuring of administrative arrangements are set out in Note 3.

Acquisition of property, plant and equipment by means of fi nance leases The acquisitions relate to motor vehicles purchases under fi nance leases.

Note 34. Annotated receipts agreements

The following is a listing of Section 29 Annotated Receipt Agreements approved and applied by the Treasurer

2006 2005 $’000 $’000

User charges, or sales of goods and services Replacement of registration label charge 791 934 Station Pier user charges - 2,207

Commonwealth specifi c purpose payments Road Project Grants – ALTD 286,544 191,528 Interstate road transport registration charges 13,425 11,578 Total annotated receipts agreements 300,760 206,247

DOI ANNUAL REPORT 2005–06 219 Note 35. Trust account balances

The following is a listing of trust account balances relating to trusts accounts controlled and administered by the Department:

Cash and investments as at 30 June 2006 2006 2005 $’000 $’000

Controlled trusts Better Roads Victoria Trust Account 382,594 210,661 Public Transport Fund 336,602 343,822 Treasury Trust Fund 5,750 1,614 Total controlled trusts 724,946 556,097

Administered trusts Treasury Trust Fund 13,904 15,763 Public Service Commuters Club Trust (153) (99) Total administered trusts 13,751 15,664

Financial Statements Note 36. Impacts of the adoption of Australian equivalents to International Financial Reporting Standards 220

The Department changed its accounting policies With certain exceptions, the Department has adopted and fi nancial reporting to comply with the Australian AIFRS and recorded transactions that are reported Equivalents to International Financial Reporting in the fi nancial report as though AIFRS had always Standards (AIFRS) in accordance with Accounting applied. This also extends to any comparative Standard AASB 1 ‘First-time Adoption of Australian information included within the fi nancial report. Equivalents to International Financial Reporting Most AIFRS accounting policy adjustments apply Standards’ with 1 July 2004 as the date of transition. retrospectively and are made against accumulated funds as at the 1 July 2004 opening balance sheet Under AIFRS, there are requirements that apply date for the comparative period to a set of full AIFRS specifi cally to not-for-profi t entities that are not compliant fi nancial reports for the period ending consistent with the requirements of International 30 June 2006. Financial Reporting Standard. The Department is established to achieve the objectives of government An explanation of how the transition from superseded in providing services free of charge or at prices policies to AIFRS has affected the Department’s signifi cantly below their cost of production for the operating statement, balance sheet and cash fl ow collective consumption by the community, which statement is set out in the following tables and the is incompatible with generating profi t as a principal notes that accompany the tables. objective. Consequently, where appropriate, the Department applies the paragraphs that are in the Australian accounting standards that are applicable to not-for-profi t entities.

DOI ANNUAL REPORT 2005–06 221

Effect of AIFRS on the balance sheet as at 1 July 2004

Effect of Superseded transition to policies AIFRS AIFRS Note $’000 $’000 $’000

Current assets Cash assets 477,830 - 477,830 Receivables 295,165 - 295,165 Prepayments 775 - 775 Land inventory 6,469* - 6,469 Total current assets 780,239 - 780,239

Non-current assets Receivables 12,594 - 12,594 Property, plant and equipment (i) 228,822 29,886 258,708 Intangible assets 7,067 - 7,067 Total non-current assets 248,483 29,886 278,369

Total assets 1,028,722 29,886 1,058,608

Current liabilities Payables 358,988 - 358,988 Loans & advances from Victorian General Government 15,300 - 15,300 Provisions for employee entitlements (ii) 6,137 (479) 5,658 Lease liabilities (iv) 48 13,874 13,922 Total current liabilities 380,473 13,395 393,868

Non-current liabilities Provisions for employee entitlements (ii) 10,970 1,005 11,975 Other provisions (i) 175,059 909 175,968 Prepaid lease income 1,979 - 1,979 Lease liabilities (iv) 361 28,278 28,639 Total non-current liabilities 188,369 30,192 218,561 Total liabilities 568,842 43,587 612,429 Net assets 459,880 (13,701) 446,179

Equity Contributed capital 554,557 - 554,557 Asset revaluation reserve (iii) 103,712 (21,741) 81,971 Accumulated surplus (i)(ii)(iii)(iv) (198,389) 8,040 (190,349) Total equity 459,880 (13,701) 446,179

*Previously this item was split between current and non-current assets. This presentation is now consistent with current reporting requirements.

Financial Statements 222

Effect of AIFRS on the operating statement for the fi nancial year ended 30 June 2005

Effect of Superseded transition policies to AIFRS AIFRS Note $’000 $’000 $’000

Income Output appropriations 2,800,742 - 2,800,742 Special appropriations 1,114 - 1,114 Other income 235,283 - 235,283 Total income 3,037,139 - 3,037,139

Expenses Grants, payments to service providers & other payments (iv) 2,686,842 (13,873) 2,672,969 Employee benefi ts (ii) 62,970 515 63,485 Depreciation and amortisation expense (i) 12,382 10,859 23,241 Value of assets written down/disposed 29,515 - 29,515 Capital asset charge 9,929 - 9,929 Assets transferred to other agencies free of charge 17,184 - 17,184 Total expenses 2,818,822 (2,499) 2,816,323

Net result for the period 218,317 2,499 220,816

DOI ANNUAL REPORT 2005–06 223

Effect of AIFRS on the balance sheet as at 30 June 2005

Effect of Superseded transition to policies AIFRS AIFRS Note $’000 $’000 $’000

Current assets Cash assets 589,119 - 589,119 Receivables 334,441 - 334,441 Prepayments 695 - 695 Land inventory 7,507* - 7,507 Total current assets 931,762 - 931,762

Non-current assets Receivables 2,045 - 2,045 Property, plant and equipment (i) 185,098 19,027 204,125 Intangible assets 23,759 - 23,759 Total non-current assets 210,902 19,027 229,929

Total assets 1,142,664 19,027 1,161,691

Current liabilities Payables 353,556 - 353,556 Loans & advances from Victorian General Government 15,300 - 15,300 Provisions for employee entitlements (ii) 17,054 1,041 18,095 Lease liabilities (iv) 206 15,489 15,695 Total current liabilities 386,116 16,530 402,646

Non-current liabilities Provisions for employee entitlements (ii) 1,674 - 1,674 Other provisions (i) 186,691 909 187,600 Prepaid lease income 1,912 - 1,912 Lease liabilities (iv) 1,261 12,789 14,050 Total non-current liabilities 191,538 13,698 205,236 Total liabilities 577,654 30,228 607,882

Net assets 565,010 (11,201) 553,809

Equity Contributed capital 439,255 - 439,255 Asset revaluation reserve (iii) 105,827 (33,762) 72,065 Accumulated surplus (i)(ii)(iii)(iv) 19,928 22,561 42,489 Total equity 565,010 (11,201) 553,809

* Previously this item was split between current and non-current assets. This presentation is now consistent with current reporting requirements.

Financial Statements 224

Explanatory notes (i) Property, plant and equipment When an asset is initially recognised, AASB 116 ‘Property, Plant and Equipment’ requires the capitalisation of costs of dismantling and removing an asset and restoring the site on which the asset was created, together with the recognition of a provision at present value, where the time value of money is material, in accordance with AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets’. The provision resulting from the adoption of AIFRS relates to leasehold improvements of accommodation leases where the time value of money is immaterial. These costs (and the related provisions) were not recognised under Australian GAAP and the Department currently expenses such costs as they are incurred. Consequently, there will be an increase in depreciation expense as a result of the increase in the carrying amounts of assets.

2005 2004 $’000 $’000

OneLink lease (WDV)* 18,845 29,613 Dismantling provision (WDV)** 182 273 Total 19,027 29,886

* Depreciation on OneLink for 2004–05 was $10.768 million ** Depreciation on Dismantling provision for 2004–05 was $0.091 million

DOI ANNUAL REPORT 2005–06 225

(ii) Employee benefi ts (iv) Onelink lease arrangements Under the existing Australian accounting standard, On adoption of AIFRS, the lease held by the employee benefi ts such as wages and salaries, Department in relation to provision of the existing annual leave and sick leave are required to be ticketing system has changed to be reported as a measured at their nominal amount regardless of fi nance lease as defi ned in AASB 117 ‘Leases’. whether they are expected to be settled within 12 months of the reporting date. On adoption of Other – fi nancial instruments AIFRS, AASB 119 ‘Employee Benefi ts’ requires a The Department has elected to apply the fi rst-time distinction to be made between short-term and adoption exemption available under AASB 1 ‘First-time long-term employee benefi ts and for these liabilities Adoption of Australian Equivalents to International to be measured at nominal amounts and at present Financial Reporting Standards’ to defer the date value respectively. AASB 119 defi nes short-term of transition of AASB 139 ‘Financial Instruments: employee benefi ts as those that fall due wholly within Recognition and Measurement’ until 1 July 2005. twelve months after the end of the period in which Accordingly, there will be no quantitative impacts the employees render the related service. Therefore, on the balance sheet as at 1 July 2004 and 30 June liabilities for employee benefi ts such as wages and 2005 and the profi t and loss for the year ended salaries, annual leave and sick leave are required 30 June 2005. to be measured at present value where they are With the exception of receivables and payables, not expected to be settled within 12 months of the the majority of fi nancial assets and liabilities held by reporting date. the Department are valued on the balance sheet (iii) Asset revaluation reserves at market value with changes in value taken to the The Department has reviewed the use of the asset profi t and loss. The Department has also entered revaluation reserve and has elected to move any reserve into derivative contracts for investment and risk created for assets no longer held by the Department management purposes. At the time of preparing this into accumulated surplus. This change is consistent with note, the Department has been unable to quantify the AASB 116 ‘Property, Plant and Equipment’. nature and fi nancial effect of the assets and liabilities arising from these contracts.

Financial Statements Note 37. Subsequent events 226

Commonwealth Games Village

As of 1 September 2006 the responsibility for the management and development of the Commonwealth Games Village will be transferred from the Secretary of the Department of Victorian Communities to the Secretary of the Department of Infrastructure. Assets and liabilities associated with the village will be transferred as from this date and will be refl ected in the 2006–07 fi nancial statements.

Melbourne Convention Centre Project

As part of the Melbourne Convention Centre Project, two parcels of land will transfer from the Melbourne Convention and Exhibition Trust to the Department of Infrastructure.

Country Rail

The Department is negotiating a new contract commitment relating to the non-metropolitan rail infrastructure.

DOI ANNUAL REPORT 2005–06 APPENDIXES

DOI ANNUAL REPORT 2005–06 229 Statutory authorities

Energy Safe Victoria • ESV continued the work of the OCEI and OGS in assisting the electricity and gas industries ESV, Victoria’s independent electricity and gas safety to address the technical and engineering skills and technical regulator, is responsible shortage. ESV, in association with a production for ensuring the safe and effi cient supply and use company, initiated a television series entitled of electricity and gas for all Victorians. ESV was ‘Careers Corner’ to interest young people in formed in August 2005 following a merger of the considering careers in the energy industry. OCEI and the OGS, and is accountable to the Minister for Energy Industries and Resources. • Audits and investigations were conducted to mitigate the practice of importers of appliances ESV is required to carry out activities in accordance and equipment attempting to circumvent the with the functions and objectives specifi ed in the requirements of the Electricity Safety Act 1998. Energy Safe Act 2005. This includes the regulation of safety and technical compliance for both • ESV continued its successful administration electricity and gas in regards to supply, installations — on behalf of the Victorian Government — of and appliances. the energy effi ciency and Minimum Energy Performance Standards (MEPS) program. Key achievements in 2005–06: • Integration of the people and functions • ESV continued to operate Victoria’s co- of the merged regulator, ESV, was regulatory gas safety case regime which included successfully completed. conducting 41 safety case audits as part of the fi ve year audit cycle — inherited by ESV from • The voluntary electrical Home Safety Inspection OGS — and to address specifi c risks relevant at Scheme was formally introduced with the the time to each sector of the gas industry. screening of television commercials in late 2005. • ESV contributed extensively to national standards • Following three electrocutions early in 2006 work on pipelines, gas networks, appliance resulting from trucks contacting overhead installation code, appliance standards and gas powerlines on Victorian rural properties, ESV quality standards. initiated a large communication campaign using regional television, radio and newspapers to • ESV is represented on a COAG body — the highlight the danger of overhead powerlines and Electricians, Air Conditioning and Refrigeration the need to ‘Look Up And Live’. Mechanics Action Group — charged with developing a framework for the introduction of • An overall review of electricity and gas safety the mutual recognition of electrical qualifi cations awareness programs and strategies was across all Australian states and territories. undertaken to ensure cost-effective and timely communications. New television commercials • Forty-one successful prosecutions were were produced promoting the Home Safety completed under the Electricity Safety Act. Inspection Scheme, the need to take care when A total of seven successful gas related cooking and the need for gas appliances to be prosecutions were also initiated. serviced every two years.

Appendixes Statutory authorities 230

Major priorities for 2006–07: seeking to grow trade in bulk and break-bulk cargoes. • Preventing serious incidents and fatalities, The current trade mix includes around four million particularly the incidence and consequences of tonnes per year of steel and petroleum products with contact with infrastructure and other potential over 180 ship visits. incidents involving electrical and gas installations POHC supervises the Port Management Agreement and appliances. with Toll Ports who operate the port on a day to • Addressing the effectiveness of the legislative day basis. and regulatory framework in terms of delivery of POHC is responsible for guiding the future development safety outcomes, fairness and cost-effectiveness of the port to become an economically, socially and of administration. environmentally sustainable facility. POHC seeks to • Ensuring acceptable benefi ts are delivered for facilitate relationships with the port operator and the industry, the community and other stakeholders wider community and to add value where possible. from the merger of the gas and electricity safety If directed by Order of the Governor-in-Council, POHC is and technical regulation. able to act as port operator or channel operator for any • Addressing and preventing an imbalance period during which there may not be an agreement in between the demand for skilled electrical and force for operation of the port or channels. gas workers and the availability of workers who are adequately trained and skilled and competent Key achievements in 2005–2006 in safe working practices. • Progress was made on the development of the Port of Hastings Land Use and Transport • Addressing consultation and communication Strategy with public exhibition of draft options for with stakeholders to facilitate understanding of, new port precincts, berthing options and road and commitment to, appropriate safety and and rail transport corridors. POHC is working compliance actions. with DOI and consultants, Maunsell Australia, to undertake the background trade forecasting, • Ensuring ESV has the most appropriate port development options, traffi c corridor, structures and processes to optimise delivery of environment and social assessments required to required activities, including the application of produce the draft Strategy. cost-effective technological solutions. • Community responses to the draft development www.esv.vic.gov.au options resulted in more than 90 written submissions, with general support for Port of Hastings Corporation development to occur to the north of Hastings township. Further public exhibition is proposed The POHC was formed in January 2004. The during 2006–2007 prior to the Strategy being Chairman and Directors of the Board are appointed submitted to Government for consideration. by Government. • The POHC community Engagement Strategy With the launch of the Victorian Ports Strategic was continued, to ensure widespread access to Framework in November 2004 the Port of Hastings POHC planning and development information. was identifi ed as the preferred location for expansion Information is now available to the community via into container trades when capacity at the Port of the POHC website, community newsletters and Melbourne is reached. In the meantime Hastings is media releases.

DOI ANNUAL REPORT 2005–06 231

• During January 2006, POHC supported the Port of Melbourne Corporation successful trial of ship-to-ship transfer of petroleum product by Anzon Australia Limited at The Port of Melbourne is Australia’s largest and the Crib Point Jetty with prospects for longer-term busiest container port, handling 38 per cent of the operations from October 2006. nation’s container trade. It is also one of Australia’s largest general cargo ports. • POHC provided consent to Trafi gura Services Australia Pty Ltd to develop their existing import Over 30 container shipping lines, as well as a number operation to include export of petroleum product of other general and bulk cargo carriers, make almost via the Crib Point facility. The enhancement 3,400 ship calls a year to Melbourne. provides scope for future trade increases. The port is situated at the north of Port Phillip Bay. It is • POHC complied with its annual audit program serviced by more than 100 nautical miles of shipping and met the expectations of the Audit Committee channels and fairways between the Port Phillip Heads with respect to internal policies and procedures. and berths located on the Yarra and Maribyrnong rivers, Williamstown, and Station Pier, Port Melbourne. • POHC satisfi ed environmental obligations under the Port Management Agreement and complied Key achievements in 2005–06 with all relevant government policies. • The POMC invested more than $80 million during the year on a wide range of infrastructure Major priorities for 2006–07 projects in the port. • Work with the Government to achieve its stated aims and objectives for the Port of Hastings • Container throughput increased to over within the network of Victorian commercial ports. 1.93 million TEU (Twenty-foot Equivalent Units) – a record for the port. • Finalise the Port of Hastings Land Use and Transport Strategy to inform government and • The 2005–06 cruise ship season was also a local organisations of the future development of record for Victoria with 37 ship visits staying the Port of Hastings 45 days between October 2005 and April 2006. Visitor numbers exceeded 85,000. • In conjunction with Toll Ports, enhance the Port of Hastings Marketing Plan to promote the port and • The Channel Deepening Project trial dredging its facilities to increase trade through the port. program was successfully completed and the preparation of the Supplementary Environment • Execute documentation with Toll for the next Effects Statement considerably progressed. fi ve year option (1/7/2007-30/6/2012) of the Port Management Agreement. • POMC’s Safety and Environment Management Plan was implemented and a Whole of Port Health, For more information please visit Safety and Environment Committee established. www.portofhastings.vic.gov.au www.tollports.com.au • A Community Cornerstone Partnership was established with SpiritWest Services (the community arm of the Western Bulldogs) fostering relationships with western suburbs’ communities.

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Major priorities for 2006–07 Southern and Eastern Integrated • Complete, exhibit and start the public inquiry for Transport Authority the Channel Deepening Project Supplementary SEITA was established by the Southern and Eastern Environment Effects Statement, and develop the Integrated Transport Authority Act 2003, as a single- formal business case for the project. purpose statutory authority to facilitate delivery of • Complete the formal consultation process Australia’s largest urban road project, EastLink, on associated with the Port Development Plan and behalf of the State. gain Government approval of the plan. Its role and responsibilities are described in the • Work towards achieving the Government’s legislation and these functions are to: 30 per cent rail share target for freight traffi c to • facilitate timely delivery of the EastLink Project, the port, as well as trucking effi ciency measures. • ensure compliance with contractual and • Upgrade security and safety programs legislative requirements through capital investment of more than • engage with the community and stakeholders $2 million in the port’s security infrastructure and enhance the port’s Safety and Environment • manage government processes. Management System. Key achievements in 2005–06: • Implement the Corporation’s Marketing Plan to SEITA is presently delivering Australia’s largest urban secure current trade levels, grow market share road project and the largest PPP yet undertaken in in contestable trade regions, and improve the this country. performance and quality of port services and logistics. Implement the Cruise Ship Strategy and In November 2004, ConnectEast, the Concessionaire develop a marketing plan with Tourism Victoria. achieved fi nancial close and has the responsibility to build, own and operate EastLink for 38 years and then • Implement the Community Relationship Strategy, transfer the project to the Victorian Government. continue the management and remediation of contaminated port land, and complete the Port Environs Plan.

For more information please visit www.portofmelbourne.com.au

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EastLink involves the construction of 17 interchange Extensive engagement with the community was and 89 bridges, 1.6 kilometres of twin three-lane undertaken by the three major organisations, SEITA, tunnels, fi ve pedestrian overpasses and 40 kilometres ConnectEast and Thiess John Holland. Issues that of shared user paths. arose as a consequence of construction activities were addressed and resolved. SEITA engaged in It will include a completely electronic tolling system widespread community consultation and ensured required to be fully interoperable with all other that relevant brochures and information on the project electronic toll roads in Australia. were distributed to over 400,000 properties along the corridor. SEITA also established a centre at its offi ce In delivering this project, the Government determined in the Brandon Business Park to meet the public that there would be no restrictions to the current interest in the project. More than 1,400 people visited road network, future development of the network or the Display Centre in the three-month period after its implications on transport policies. opening in early April 2006.

Following early design, physical works commenced The project is on schedule for completion in late March 2005. Since then, the design and by late 2008. construct contractor, Thiess John Holland, has commenced construction along the entire 39 Major priorities for 2006–07: kilometres of EastLink and commenced work on both Notwithstanding the excellent progress to date, bypasses. extensive civil engineering work is still required to complete the project. Development of the tolling Outstanding progress was achieved in 2005–06, system by the Spanish sub-contractor, SICE, in particular: wide-ranging electrical and mechanical works and commissioning is required to ensure all works meet • earthworks (seven million cubic metres) the specifi ed standards and that this new roadway — 60 per cent complete integrates with the road network in a seamless manner. • bridges — 10 completed and 40 under construction www.seita.com.au

• tunnels — 60 per cent of the top heading excavated

• tunnel ventilation buildings — 60 per cent erected

• EastLink Operations Centre and maintenance buildings — building frameworks erected

• pre-cast yard at Morwell — 40 per cent of concrete elements manufactured.

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Southern Cross Station Authority • The Southern Cross Station achieved a high level of customer service, safety and effi ciency during The SCSA is responsible for overseeing the the Commonwealth Games in March 2006. The Southern Cross Station redevelopment project station was a key transport hub for the Games, and managing the station’s operation and facilities and featured two large Commonwealth Games during construction. This includes providing banners promoting the message ‘The new stars of appropriate facilities, services and accessibility the Southern Cross’ for the duration of the Games. to the Victorian community. • Futher improvements were introduced at the Key achievements in 2005–06 station with the installation of new plasma • Strong progress was achieved on the station screens carrying V/Line information. redevelopment, with key milestones including the completion of platform upgrades, the wave roof, Major priorities for 2006–07 glass facades, POD offi ce accommodation and • Ensure a seamless transition of management passenger concourses. responsibility from the Authority to Civic Nexus and the immediate ongoing success of the • The station was renamed Southern Cross Station station as a public transport facility. in December 2005, with Victorian Premier Steve Bracks announcing the name change to coincide • Introduce a best-practice monitoring and audit with the unveiling of the grand new entranceway regime to facilitate the process of ensuring to the station on Spencer Street. Civic Nexus meets its operational and asset management responsibilities into the future. • High-quality customer service continued to be delivered by the blue-vested customer service • Ensure excellent customer service and passenger team at the station. Customer service positions information continue during and following the were extended until June 2007 to help people handover of station operations to Civic Nexus. navigate the new station. • Ensure the effective management of the broader • The coach terminal partially opened in its new Southern Cross Station precinct outside the undercover location between Bourke and area leased to Civic Nexus, including facility Lonsdale Streets, providing a greater level of management, lease management, commercial service and amenities for station users. rights and capital projects.

• Emergency management procedures and overall • Continually improve risk management to ensure readiness for security alerts were strengthened station incidents are minimised and to ensure in advance of the Commonwealth Games, with adequate funding and sound fi nancial management several emergency management exercises to meet contractual and transitional obligations. undertaken to test readiness.

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Transport Ticketing Authority Major priorities for 2006–07: • Rigorous testing of the software and end-to-end The TTA was established in 2003 to manage all processes under load, prior to implementing in aspects of the State’s interest in the existing public the pilot area. transport ticketing system, and to procure and oversee delivery and operation of the New Ticketing • Piloting of the solution to ensure the integrated Solution (NTS). software, hardware and support services and system are fully tested and operational before Key achievements in 2005–06: roll-out across the State. • A $494 million contract was awarded to Kamco in July 2005 to develop, implement and operate • Commencement of installation of around 20,000 the NTS over the next 12 years. units of new equipment across metropolitan and regional Victoria on railway stations, trams, tram • Kamco mobilised rapidly to acquire international superstops, buses, bus interchanges and all bus and local staff and resources based in Melbourne. and tram depots.

• Detailed documentation of the NTS design and • Establishing channels to distribute up to two operational requirements was achieved. Together million durable, plastic cards and accurately load with the tender specifi cations, these form the the respective concession entitlements for about basis for the solution’s development. 50 per cent of public transport users.

• The end-to-end software prototype was • New channel establishment to allow regular value successfully developed, which will allow top-ups on cards, including via vending machines, application of local NTS business rules. This retail outlets, online internet arrangements, a new achievement represents a critical element in call centre and automatic debit from customers’ ensuring that the solution will be ‘fi t for purpose’ bank accounts (‘auto re-load’). and delivered on time. Most international projects do not achieve this end-to-end connectivity until • Establishing a state-wide customer a much later stage. communication and information program to facilitate rapid migration to smartcards, operator • Access agreements were entered into with all staff training and change management programs. operators, enabling installation works to proceed in accordance with the program. • Fully integrated management of the transition to the new solution from the incumbent ticketing • Westpac was appointed to provide banking system and services provider (Onelink Transit) services for the NTS as a negotiated extension to ensure a seamless customer experience, of its all-of-state government contract. ongoing high levels of machine reliability and minimal revenue impact. • Two Discovery Suites were constructed, providing an interactive display for Victorians to www.doi.vic.gov.au/tta experience the NTS. One will be set up in the Southern Cross Station foyer while the other, a specially adapted semi-trailer, will tour Victoria prior to the roll-out of the NTS.

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VicRoads • Assisted in the preparation of the full legislation that allowed random roadside saliva testing to VicRoads role is to deliver social, economic and detect drug driving. environmental benefi ts to communities throughout Victoria by managing Victoria’s road system and its use • Implemented a Driver Rewards Scheme to as an integral part of the overall transport network. reward drivers for safe driving behaviour. The Scheme offers a 25 per cent discount on the Key achievements in 2005–06 cost of licence renewal to drivers who incur no Road safety demerit points or who have not incurred a serious • Victoria’s road toll for 2005–06 was 322, traffi c-related offence in the three years before eight below the arrive alive! target of 330. For the receiving their renewal notice. 2005 calendar year, Victoria delivered the best Road system management road safety record in Australia with 6.9 deaths per 100,000 population compared to 8.4 for the • Completed the $305 million, 17 kilometre rest of Australia. Craigieburn Bypass and made signifi cant progress on other major Victorian road links • Developed and implemented projects under including the Tullamarine-Calder Interchange, the $130 million and $110 million Safer Roads Goulburn Valley Highway duplication through Infrastructure programs, with funding fully Arcadia, Albury-Wodonga Hume Freeway allocated to 365 projects. At the end of upgrade, Calder Freeway upgrade, Deer Park 2005–06, 63 projects had been completed Bypass, Pakenham Bypass and Geelong Bypass. and 14 were in progress, with a total expenditure of approximately $114 million. All projects are • Completed seven outer metropolitan road expected to be completed by December 2007. projects and progressed 18.

• Completed 114 blackspot projects funded under • Completed 43 road development projects in State and Federal blackspot programs, including regional Victoria and progressed 23. $2.3 million worth of road improvements along 17 high-risk motorcycle routes in consultation • Maintained 52,684 lane kilometres and with the Victorian Motorcycle Advisory Council. 2,987 bridges.

• Developed a new Graduated Licensing System • Contributed to developing Meeting Our Transport which will come into effect from July 2007. Challenges through transport modelling and economic analysis to evaluate the traffi c and • Completed the Enhanced Crash Investigation economic benefi ts associated with future road (ECI) Project — the fi rst of its kind in Australia. projects. The plan includes a $1 billion package VicRoads engaged the Monash University for the Monash–West Gate corridor, which will Accident Research Centre to undertake detailed reduce travel times and improve safety. examinations of the roads and vehicles involved in 81 serious injury crashes in Victoria as well • Prepared draft industry transport plans for as interviewing road users who were involved six regional industries in consultation with in the collisions. stakeholders and government agencies.

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Traffi c and transport integration Registration and licensing • Worked with OCGC, DOI, Victoria Police, • Developed changes to VicRoads evidence Melbourne City Council and Melbourne’s public of identity requirements to help reduce transport providers to deliver successful traffi c the potential for identity fraud by requiring and transport management at the Melbourne customers to use high integrity documents to 2006 Commonwealth Games. establish their identity. The changes took effect from 1 July 2006. • Completed freeway ramp meters at six locations to assist incoming vehicles merge with freeway • Obtained a direct link to Centrelink records to traffi c without disrupting fl ow. allow staff to validate pensioner and concession cards and confi rm customers’ eligibility for • Commenced development of an integrated registration concessions. ramp metering system that will coordinate the operation of ramp meters to better manage • Implemented a six-month registration option to an entire freeway length, rather than just in the help customers who hold the various concession vicinity of each entry ramp. cards to meet the costs of registration.

• Introduced tram signal priority measures at • Established a specialised compliance group to 35 locations to improve tram travel times and monitor the performance of external providers reliability as part of the Government’s Tram of VicRoads services to ensure that they Priority Program. are meeting their legislative and contractual obligations to provide quality services to • Worked with DOI on actions to further develop VicRoads customers. SmartBus, a cross-town bus service that connects train stations, shopping centres and • Launched a new online plate ordering system, other community facilities. www.vplates.com.au, to provide customers with a convenient way of ordering personalised, • Completed works valued at approximately custom, custom mix and euro plates, 24 hours $2.6 million to help people with impaired mobility a day, seven days a week. to negotiate the road system. For a full report on VicRoads’ achievements, refer to • Added 80 kilometres to Victoria’s existing VicRoads 2005–06 Annual Report which is available network of bicycle facilities at a cost of $14 on its website www.vicroads.vic.gov.au million, including 37 projects in cities and towns in regional Victoria.

• Implemented the amendments to the Road Safety Act 1986 relating to the ‘Chain of Responsibility’ provisions for mass and dimension and load restraint, which came into force on 30 September 2005.

• Upgraded VicRoads travel time website, signifi cantly increasing the amount of real time travel information available to road users.

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Major priorities for 2006–07 • continue to improve traffi c priority for trams VicRoads will: and buses including developing a Dynamic Signal Priority System so that late-running buses • continue to implement the Safer Roads and trams get higher priority to help them return Infrastructure and blackspot programs, including to schedule developing projects under the Government’s $600 million package to maintain Victoria’s • continue to work with DOI to expand the leadership in road safety outlined in Meeting SmartBus network and Park and Ride facilities Our Transport Challenges • continue to improve safety and access for • prepare for the implementation of the Graduated pedestrian and cyclists Licensing System in July 2007 • continue to implement VicRoads’ Corporate Plan • work with road safety partners to develop Victoria’s 2005–2007, which is the guide to assist VicRoads next road safety strategy for consideration by the to better serve the community and help achieve Victorian Government to replace arrive alive! the Government’s vision outlined in Growing Victoria Together. The Corporate Plan focuses on • progress major infrastructure projects including the following key challenges: the Monash-West Gate improvement package, Calder Freeway upgrade, Tullamarine-Calder – implementing strategies in the Freeway Interchange, Western Highway — Deer Government’s Linking Melbourne: Park Bypass, Geelong Bypass, Pakenham Metropolitan Transport Plan, including Bypass, Albury-Wodonga Hume Freeway project, improving the reliability and fl ow of road and the Goulburn Valley Highway duplication based public transport, making existing through Arcadia roads operate better, improving outer metropolitan arterial roads, improving • continue to build better connections for access to key freight routes, and Melbourne’s growing suburbs through the improving national, regional and cross- Outer Metropolitan Arterial Road Program town freight connections

• continue to upgrade Victoria’s regional roads – improving VicRoads’ regional including the Midland Highway widening, transport planning with a focus on Bass Highway duplication, Princes Highway working with stakeholders to develop East realignment and South Gippsland industry-based transport plans Highway realignment – improving VicRoads’ responsiveness • continue to maintain the condition of Victoria’s to the communities that it works with road network – improving VicRoads’ interaction with • commence design work to strengthen the West others in government to strengthen Gate Bridge policy development and services to the community • implement a system that coordinates the operation of ramp meters to better manage – developing and sustaining VicRoads’ an entire freeway length rather than just in the capabilities to improve its ability to vicinity of each entry ramp respond to changing needs.

DOI ANNUAL REPORT 2005–06 239

Victorian Energy Networks Corporation Stakeholder Value • Completed the Non-Principal Transmission VENCorp is a statutory authority, established under System Full Retail Contestability Project, which the Gas Industry Act 1997. It is responsible for the enables VENCorp systems to provide full retail operation of the Victorian principal gas transmission competition (FRC) services for all Victorian network and the development and operation of the regional gas distribution networks, even Victorian gas ‘spot’ market. It also provides planning those that are not supplied from the Principal services to the gas market and services to facilitate Transmission System. gas retail competition in Victoria. • Progressed the Gas Market Project, which will In mid-1999, VENCorp acquired electricity industry implement a staged development of the Victorian functions under the Electricity Industry Act 1998 and is wholesale gas market. the Transmission Network Service Provider (TNSP) for the Victorian electricity industry. As TNSP, VENCorp Sound Commercial Management has responsibilities for planning and directing • Managed costs in key fi nancial reporting areas augmentation of the Victorian Transmission system. — in 2005–06 gas FRC fees were reduced by 15 per cent and gas fees by 5 per cent. The VENCorp also has operational and communications statutory electricity segment returned prior responsibilities during gas and electricity emergencies. accumulated surpluses to participants by reducing fees and charges in 2005–06. Key achievements in 2005–06: Reliable Systems • Incorporated required International Financial • Finalised the ‘Fourth Line’ Project – a major Reporting Standards (IFRS) adjustments to infrastructure project to increase the capacity fi n a n c i a l r e p o r t s . of the electricity transmission link between the Latrobe Valley and Melbourne. Our People • Reviewed VENCorp’s risk management • Monitored Victoria’s electricity transmission framework, developing a three-year risk network during the peak summer period in management strategy. 2005–06, providing updates to the Victorian Government as required. • Developed and implemented a new classifi cation system and performance management system, • Released Vision 2030, a 25-year vision for following completion of VENCorp’s Enterprise Victoria’s energy transmission networks. Bargaining Agreement negotiations in 2005.

• Conducted and let tenders for two new • Completed an Employee Opinion Survey, transformer projects, at Rowville in the city’s east and was placed in the second quartile and at Moorabool in the west. (top 50 per cent) as benchmarked against other organisations surveyed by the Rodski • Provided the electricity Annual Planning Report Research Group. (APR) to stakeholders in June 2005, and the gas APR to stakeholders in November 2005. • Finalised a new Graduate Program to provide graduates within VENCorp with a continuous learning experience in both gas and electricity industries.

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Major priorities for 2006–07: Sound Commercial Management Reliable Systems • Continue to manage costs in key fi nancial • Oversee progress on two new transformers reporting areas. Gas FRC fees will be reduced being built in Melbourne – at Rowville and by 20 per cent and gas fees by 5 per cent in at Moorabool. 2006–07. VENCorp will be recovering electricity fees in 2006–07 as part of Transmission Use of • Progress a major augmentation to Victoria’s System arrangements. gas Principal Transmission Network, required by 2008. • Continue to manage the Network Tariff Rebate on behalf of the Victorian Government. • Complete at least one gas and one electricity emergency exercise, to assist with preparedness Our People for major emergencies. These exercises involve • Deliver strategies to continue to attract new industry, government and VENCorp, working recruits, by broadening university and industry cohesively to test emergency processes links, highlighting VENCorp as an employer of and procedures. choice, marketing benefi ts and implementing a graduate program. • Provide the gas APR to stakeholders in November 2006. • Focus on retaining valued staff through an enhanced, structured induction process, and Stakeholder Value effective training and career planning. • Implement Stage One of the Gas Market Project in the fi rst quarter 2007. • Continue to build on VENCorp’s approach to talent management, with a focus on succession • Continue to facilitate gas Full Retail Contestability planning, job rotation, mentoring junior staff, functions, with the major milestone of one million building a skills register and facilitating gas customer transfers due to be reached in workplace change. early 2007. For more information visit www.vencorp.com.au • Work closely with stakeholders to maintain honest, open and clear lines of communication throughout the VENCorp Statutory Review and national MCE Reform processes.

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VicTrack • Commenced the roll-out of an enhanced telecommunications infrastructure that enables VicTrack, on behalf of the State, owns the majority cost-effective delivery of network services to of Victoria’s rail infrastructure, land and passenger customers and the provision of new products rolling stock. A large proportion of these assets and services such as increased bandwidth are leased to the Director of Public Transport. In services and Virtual Private Networks. turn, the Director of Public Transport sub-leases the infrastructure/rolling stock to various transport • Using leading edge technology, VicTrack operators and track access providers. VicTrack has deployed a carriage network for the provision of no direct involvement in the provision of passenger closed circuit television applications at principal or freight transport services. metropolitan railway stations to improve security coverage for the Commonwealth Games. VicTrack also owns signifi cant telecommunications assets, including metropolitan and regional optical • Continued to pursue a number of value- fi bre and copper networks as well as a wireless adding initiatives including commercial leases, network in country Victoria. commercial development opportunities and improvements to outdoor advertising panels. VicTrack has two broad categories of activity: Continued to project manage the relocation of a freight facility at Dandenong Station to facilitate a • Custodial—fulfi lling the organisation’s obligations Transit Cities development at this location. as an owner of infrastructure and rolling stock. • Continued to facilitate transport projects and • Commercial—seeking to add value to its assets initiatives through the management of land and generate returns to enable greater acquisition and planning processes. investment in, and improvements to, Victoria’s public transport system. • Continued to manage third-party common-user freight terminals within the Dynon Rail Precinct, Key achievements in 2005–06: and completed the fi rst full year of operation of • Entered into a long-term agreement with the the State’s EM 100 track-recording car, used to Victorian Education and Research Network assess the quality of the rail network. (VERN) to facilitate the development of a research and education network linking • Continued a major program to preserve and educational institutions throughout Victoria. This protect rail heritage sites and rolling stock, with represents the most signifi cant non-transport restoration works completed at Ballarat Railway related use of VicTrack’s regional fi bre optic Station Train Hall, and continued to support one network to date. of the world’s most signifi cant collections of heritage trams at Hawthorn Tram Depot. • Provided advice to the Australian Competition and Consumer Commission on industry • Continued to proactively manage land changes relating to the Toll/Patrick takeover, contamination sites and fi nalised an asbestos and participated in the development of the new management plan as a framework for managing Victorian Rail Access Regime, the process asbestos across VicTrack assets. by which rail services are made available at reasonable and fair rates to all users.

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Major priorities for 2006–07: Geelong channels and making this available to all • The Fibre To The Node Next Generation stakeholders in the port community via the internet. Network will be deployed, improving the quality, • Placement of a tender to upgrade and replace range and cost effectiveness of VicTrack’s marker beacons within Geelong channels. communications services.

• Upgrading and replacement of obsolete • VicTrack will continue to roll out the Metropolitan VHF communications equipment for the Train Radio replacement program. marine controllers. • VicTrack will pilot strategic plans with local councils • Acquisition of a multi-purpose launch for port for the management of VicTrack land to help ensure use by the VRCA and other port-based and benefi cial use of the land for local communities. government agencies. • VicTrack will continue to manage the roll-out of • Approval by Government and implementation the Australian Level Crossing Assessment Model of a whole-of-port safety and environmental to help identify and manage risk and will also management plan. project manage an accelerated statewide railway crossing upgrade program. • Overseeing the preparation of a study into the www.victrack.com.au economic contribution of the Port of Geelong to the region and the State of Victoria. Victorian Regional Channels Authority Major priorities for 2006–07 The VRCA began operations in April 2004. It was • Complete the channel beacon replacement/ established to manage the commercial navigation of upgrading project during 2006–2007. the channels in Geelong port waters and to manage the channel licences for the Port of Hastings and Port • Commence the trial of a Port Educational of Portland. Program targeting Year 9 and 10 students in the Geelong region. In providing these services, the VRCA, its board and management team strives to establish and • Extend the application of the whole-of-port ships maintain strong links with port management and management and booking system. shipping industries, other port users, local and state governments and the public. • Investigate the possible introduction of dynamic underkeel clearance (DUKC) into Geelong. Key achievements in 2005–06: • Introduction of shore facilities to operate • Assess opportunities for channel improvements the Automated Identifi cation System for in Port of Geelong including turning circles and commercial shipping. changes to batters in the Point Henry section of channel. • Purchase and installation of new tide gauges and weather monitoring equipment. • Investigate the feasibility of introducing a smart docking system for Refi nery Pier. • Implementation of a shipping management information system to provide a real-time For more information please visit comprehensive record of shipping movements in www.vicchannels.vic.gov.au

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VicUrban VicUrban is the lead agency in four Transit Cities: Dandenong, Ringwood, Footscray and Geelong. VicUrban is the Victorian Government’s sustainable These are part of the Melbourne 2030 policy, which land development agency. A statutory authority identifi es 13 Transit Cities and encourages urban operating under the Victorian Urban Development revitalisation and redevelopment around strategic Authority Act (2003), VicUrban is dedicated to metropolitan and regional rail hubs. developing vibrant communities and providing diverse housing opportunities for the people of Victoria. The Revitalising Central Dandenong initiative is the largest urban renewal project since Melbourne VicUrban works in partnership with the public and Docklands and is a partnership between the private sector and develops a diverse portfolio Victorian Government (through VicUrban) and the of major urban development projects including City of Greater Dandenong. The State Government Melbourne Docklands, new suburban communities, is investing $290 million in Revitalising Central urban renewal projects and urban revitalisation Dandenong, with the expectation of attracting an projects through Transit Cities. additional $1 billion worth of private sector investment.

VicUrban is delivering 25 regional and metropolitan Key achievements in 2005–06: projects including major projects, such as Revitalising • In the 2005–06 fi nancial year, VicUrban achieved Central Dandenong, Melbourne Docklands, and the $203.8 million in revenue, made a profi t of $19.6 benchmark urban community project, Aurora. million and settled 1,039 residential lots.

During 2005–06, VicUrban extended its business • A signifi cant issue, with considerable impact operations in regional Victoria by establishing the on the year’s fi nancial report, relates to the Provincial Unit, which will deliver strategic residential forthcoming transfer of the Dockland’s municipal projects across Victoria and provide advice on and place management function to the City of commercially advantageous and innovative residential Melbourne. The assets of the municipality, valued developments in the regions. at some $200 million are being transferred to the City. The impact of the municipal and place VicUrban is also looking to increase its involvement in management asset impairment will reduce urban redevelopment projects and is identifying and VicUrban’s profi t to $9.1 million. assessing new business opportunities in established urban areas of Melbourne. • VicUrban received industry recognition in Water Sensitive Urban Design and received the ‘Peter Todd’ prize for the Australian Institute of Landscape Architects at the Tenterfi eld and Lancaster Gate developments, respectively.

• VicUrban successfully completed the sale of all residential lots in joint venture partnership with landowners, Anglicare Victoria, at the Cheltenham Green project.

Appendixes Statutory authorities 244

• Lynbrook, a 185-hectare development located Major priorities for 2006–07: on the South Gippsland Highway, was one of • Offi cially launch the Aurora Discovery Pavilion the fi rst residential developments in Victoria and Display Village to showcase the sustainability to incorporate Water Sensitive Urban Design aspects of the Aurora development, continuing into large-scale residential subdivision design. to raise awareness and understanding across Construction of the town centre was commenced our consumer base of the environmental and and is expected to be complete late next year. community value provided at Aurora.

• Cairnlea, a 460-hectare subdivision in Melbourne’s • Continue to masterplan the redevelopment of north-west, is nearing completion and is expected central Dandenong, drawing on an extensive to be home to around 10,000 residents. This community consultation process. year, VicUrban implemented a stormwater harvesting and reuse system at Cairnlea, to • Commence the creation of LOGIS, a major capture and use urban stormwater runoff. industrial park in Dandenong South, applying state-of-the art, environmentally sustainable • Melbourne Docklands is Australia’s largest practices. waterfront development project, converting a 200-hectare former port, rail and industrial area • Smooth the transition of all Melbourne Docklands into a high quality, mixed-use urban domain with municipal and place management assets by seven kilometres of public waterfront. Melbourne working with the City of Melbourne. Docklands achieved $3.5 billion worth of development (completed or under construction) • Undertake public exhibition, and seek approval with VicUrban receiving $48.6 million in revenue. by Wyndham City Council, of VicUrban’s planning scheme amendment for a new community in • VicUrban continued its success in attracting new Werribee — Riverwalk. business to Melbourne Docklands. Construction commenced on AXA’s new head offi ce at 750 • Achieve the rezoning of the fi rst 140 hectares Collins Street, Ericsson’s new headquarters of land in Offi cer by Cardinia Shire Council. The at 818 Bourke Street, Digital Harbour’s Port application proposes to develop the site, known 1010 building and Aquavista — NewQuay’s fi rst as Offi cer Horizons, into a vibrant residential commercial offi ce and retail building. community around the Offi cer railway station and a new main street-based major activity centre.

• Open additional offi ces as part of VicUrban’s expansion of operations into regional areas under the Government’s Moving Forward policy for provincial Victoria.

• Identify and bring infi ll sites to market in support of urban consolidation.

For more information, please visit the website www.vicurban.com.au

DOI ANNUAL REPORT 2005–06 245

V/Line • Marketed increased regional rail and coach services to support the Commonwealth Games V/Line Passenger Corporation was established in in March 2006 through the $10 fare. This saw 2003 under the Rail Corporations Act 1996. Its sole patronage increase by 70 per cent. function is to act as a holding company for V/Line Passenger Pty Ltd (V/Line). • Quantifi ed the V/Line market for travel to Melbourne as 1.12 million people, divided V/Line has a franchise agreement with the Director between commuter and discretionary market of Public Transport for the provision of passenger rail segments, forming the basis of an integrated and coach services to regional Victoria. marketing campaign for 2006–07.

V/Line is the major provider of passenger rail and Major priorities for 2006–07: coach services to regional Victoria. • Upgrade and return of services to the Gippsland corridor after Regional Fast Rail works. It currently serves Victoria with a fl eet of 42 locomotives, 142 carriages and 21 sprinters. • Implementation of the new service plan V/Line is progressively introducing 38 new VLocity and timetable. trains to the fl eet, with 28 of the modern VLocity • Completion of the roll-out of the new trains delivered (and 34 provisionally accepted) as VLocity trains. at 30 June 2006. • Support for the development and testing Key achievements in 2005–06: of the New Ticketing Solution for Victorian • Returned services to the Geelong, Ballarat and public transport. Bendigo corridors following completion of the www.vline.com.au Regional Fast Rail upgrade works.

• Introduced the new VLocity trains on the three completed Regional Fast Rail corridors.

• Completed a new service plan and timetable for introduction later in 2006.

• Managed replacement services during Regional Fast Rail project line closures and service disruptions related to the redevelopment of Southern Cross Station.

Appendixes Statutory authorities Statutory authorities executive numbers 246

For the 2005–06, an ‘executive’ is any person considered a Chief Executive Offi cer (CEO) or equivalent role and any person who has signifi cant responsibility and receives a total remuneration package of $116,000 or more. Technical specialists who do not have a management function and people whose employment is regulated by an award or enterprise agreement are not included.

Reported Department 2006 2005 Change Organisations 2006 2005 2006 2005 FM V FM V FM V Port of Melbourne Corporation1 Yes Yes DOI DOI 5 1 17 1 -1 -12 -1 Port of Hastings Corporation Yes Yes DOI DOI 1 1 Southern and Eastern Integrated Transport Authority Yes Yes DOI DOI 27 16211-2 Southern Cross Station Authority2 Yes Yes DOI DOI 1 1 Transport Ticketing Authority Yes Yes DOI DOI 14 14 V/Line Passenger Pty Ltd Yes Yes DOI DOI 716 712 4 VicRoads Yes Yes DOI DOI 12 56 3 12 54 2 2 1 Offi ce of Gas Safety3 No Yes DOI 1 -1 Offi ce of the Chief Electrical Inspector3 No Yes DOI 5 -5 Energy Safety Victoria3 Yes No DOI 8 8 Victorian Energy Networks Corporation 1 Yes Yes DOI DOI 14 111 -7 Victorian Rail Track Yes Yes DOI DOI 161151 1 Victorian Regional Channels Authority Yes Yes DOI DOI 2 3-1 VicUrban Yes Yes DOI DOI 26 18 1-2 Total 26 116 4 2512861-12-2 Grand Total 142 153 -11

F – Female, M – Male, V – Vacant

1 Excludes those not considered executives as reported in 2005 (i.e. Technical Specialists) 2 Previously reported as Spencer Street Station Authority 3 Offi ce of Gas Safety and Offi ce of the Chief Electrical Inspector merged into Energy Safe Victoria

DOI ANNUAL REPORT 2005–06 247 DOI people profi le

Table 1. People profi le as at 30 June 2006 Variation Variation Variation from from from Actual previous Actual previous Actual previous FTE Class Male year Female year Total year Total SEC 1 0 1 0 1.0 EO-1 3 0 3 0 3.0 EO-2 23 +2 4 +1 27 +3 24.9 EO-3 28 +6 8 -1 36 +5 34.8 VPS STS 10 +3 1 0 11 +3 11.0 VPS PS 4 -1 0 4 -1 4.0 VPS GR6 220 +34 95 +7 315 +41 308.8 VPS GR5 139 +22 109 +28 248 +50 244.1 VPS GR4 83 +21 89 +34 172 +55 170.6 VPS GR3 95 +12 127 +27 222 +39 217.9 VPS GR2 28 +2 58 -18 86 -16 84.1 VPS GR1 4 +2 4 -1 8 +1 8.0 Total Staff 638.0 +103 495.0 +77 1,133.0 +180 1,112.2

Table 1 represents people on payroll as at 30 June 2006 including people on paid leave (eg.maternity leave)

Table 2. Executive as at 30 June 2006

Continuing Executives Special Projects

Male Female Vacancy Male Female Vacancy Class No Variation No Variation No Variation No Variation No Variation No Variation Inactive Total SEC 1 1 EO-1 3 1 +1 4 EO-2 21 1 -1 2 2 3 2 29 EO-3 26 +5 8 -1 3 -2 2 -1 1 2 42 Total51 +5 9 -2 6 -1 4 -1 3 +2 1 +0 2 76

Table 2 represents DOI Executive envelope including positions deemed inactive

Appendixes DOI people profi le 248

Table 3. Executive positions reconciliation

2006 2005 Executives with total remuneration over $100,000 58 50 Add Executives with total remuneration below $100,000 24 27 Total as per Financial Statements 82 77 Add Vacancies 7 7 Accountable Offi cer 1 1 Inactive 2 5 Addition/New EO Positions 3 Less Separations -13 -14 Temporary EOs (Higher Duties) -6 Total Executive Numbers at 30 June 2006 76 76

DOI ANNUAL REPORT 2005–06 249 Employee relations

DOI is committed to maintaining a consultative Four WorkCover claims were accepted for 2005–06, framework with the Community and Public Sector and through an active return to work strategy, Union (CPSU) and our people to build a strong injured workers continue to be returned to work. employee relations environment. This has resulted in a reduction in the Department’s WorkCover insurance premium for Nil time was lost in 2005–06 through the 2005–06 period. The Human Resources industrial disputes. Management Branch continues to work with line areas to facilitate a return to work for all people Occupational health and sustaining an injury in the workplace. safety reporting DOI’s Employee Assistance Program has been DOI is committed to proactive management of utilised by our people over the year and is considered individual and organisational health and wellbeing an effective early intervention strategy that has and ensuring that exposure to risks is minimised. contributed to reducing stress claims and addressing other work place issues. DOI has reviewed its Occupational Health and Safety policies and procedures in line with the new Selecting on merit Occupational Health and Safety Act 2005 which came into operation in July 2005. A proactive Health and DOI’s Anti-discrimination Policy and Guidelines Safety Committee, with both staff and management ensure that all employment decisions are based representatives, has developed a comprehensive on merit. Merit and equity principles are enshrined action plan to minimise or eliminate identifi ed risks in in DOI’s Recruitment Policy and Guidelines. the workplace. Managing and valuing diversity Health and Safety representatives conducted regular audits of the workplace to ensure DOI people are not DOI’s core organisational values include valuing its being exposed to unnecessary risks and a number of people’s diversity and respecting each other’s diverse information sessions have been held throughout the knowledge, skills and abilities. During 2005–06 year to improve people’s knowledge of Occupational implementation of the Diversity Strategy 2004—06 Health and Safety risks. has continued with a focus on developing a Disability Action Plan and building relationships with Indigenous DOI has continued to expand its employee health communities. The Diversity Strategy is a management initiative which includes infl uenza vaccinations, tool to be used to improve the performance of the individual health assessments, ergonomic organisation based on the principle that managed assessments and lunch time information seminars diversity encourages innovation and provides a work on a range of health issues. environment in which everyone can achieve his or her full potential.

Appendixes Employee relations 250

Employee health and work/life balance Reviewing personal grievances

DOI’s focus on employee health and work/life DOI’s Grievance Policy ensures that people have balance was recognised during 2005–06 with the an avenue for redress against treatment they see Department ranking in the top 25 out of more than as unfair or unreasonable. The Human Resources 400 organisations for work/life balance initiatives. Management Branch continues to work proactively The People Strategy Employee Health Plan 2004–06 across DOI to resolve workplace issues as they arise continues to guide actions to improve employee and without the need for formal grievance. A review health and wellbeing and the effectiveness of these of Actions Policy has been established in response strategies is measured regularly by employee surveys. to the Public Administration Act 2004 Review of Actions Regulations. School holiday program Upholding public conduct DOI runs a work-based school holiday program during Christmas and term holidays, and subsidises DOI’s Ethics at Work and Managing Diversity policies the cost of the program for participants. and the Public Sector Code of Conduct are integral to the way DOI people conduct business. Flexible work arrangements People management practices DOI has committed itself to the consideration of fl exible working arrangements, including working All DOI human resource management policies are from home. Assistance is provided to DOI people regularly updated and are available online to all of DOI and managers by the Human Resource Management and new starters as part of the induction process. Branch in establishing working from home and other The HRM branch provides advice and consults with fl exible working arrangements. all line areas to ensure policies are adhered to and taken into account. Staff Consultative Committee Performance management The Staff Consultative Committee continued to be and development a forum for encouraging and promoting workplace relations based on communication and cooperation. The DOI performance management and development system was reviewed during 2005–06 and now The Committee will continue to operate as a sounding encompasses the DOI Capability Framework. The board for future workplace initiatives and their impact system is an essential tool at all levels to improve on our people. organisational performance by linking and aligning individual, team and organisational outcomes. The system identifi es the need to increase capability that has placed an even greater emphasis on performance management and development.

DOI ANNUAL REPORT 2005–06 251 DOI Audit Committee

The Audit Committee was established to advise the • advising the Secretary on the preparation and Secretary on all matters relating to audit, assurance and review of DOI’s fi nancial statements, coordinating fi nancial reporting and risk management. It is supported internal audit programs and the audit programs in this task by a secretariat, led by the Director Audit conducted by the Victorian Auditor-General’s and Assurance, who reports to the Secretary, and Offi ce (VAGO) involving DOI, and advising the through an outsourced internal audit provider. Secretary on action to be taken on matters of concern raised in any report of an internal auditor The main functions of the committee are to assist in or in a report about DOI by the VAGO fulfi lling DOI’s governance responsibilities. These are specifi ed under the Victorian Government’s Financial • maintaining a watching brief over, and periodically Management of Compliance Framework and guidelines reviewing, DOI’s risk management activities, for whole-of-Victorian-Government best-practice. including the risk management framework and the implementation of risk management DOI’s Audit Charter includes: principles and practices within DOI.

• actively overseeing the internal audit function As at 30 June 2006, members of the committee were: and program, approving and amending DOI’s Peter Lewinsky (Chair), Ian Gaudion, Richard Yates, annual or strategic audit plans, facilitating the Bob McDonald and John Rogan. independence of the internal audit function, the responsiveness of management to audit Mr Lewinsky, Mr Gaudion and Mr Yates are fi ndings and the performance of the outsourced independent members; Mr McDonald and Mr Rogan service providers are departmental members.

• identifying and disseminating good practices DOI’s outsourced internal Audit Services are provided throughout DOI in relation to assurance, by Ernst and Young. governance, risk management, fi nancial management and ethics

• reviewing any unusual or signifi cant changes to DOI’s accounting or procurement policies that are proposed by DOI or considered desirable by the committee

Appendixes DOI Audit Committee Budget portfolio outcomes 252

The Budget Portfolio Outcomes statements provide a comparison of the actual fi nancial results for all entities within the Infrastructure budget portfolio, with the forecasts published in Budget Paper No. 4 — 2005–06 Budget Estimates.

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:

• DOI

• VicRoads

• Southern and Eastern Integrated Transport Authority

Financial transactions and balances are classifi ed 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. 4.

Budget Portfolio Outcomes statements are not prepared on the same basis as the Department’s fi nancial report and are not subject to audit by the VAGO.

DOI ANNUAL REPORT 2005–06 253

Statement of Financial Performance for the year ended 30 June 2006

2005–06 2005–06 Actual Budget Variation ($ million) ($ million) (%) Notes

Revenue from ordinary activities Output appropriations 3,311.6 3,312.5 .. Special appropriations 1.6 1.7 (8) Resources received free of charge or for nominal consideration 7.9 .. .. 1 Sales of goods and services 206.6 155.3 33 2 Taxes 8.6 11.9 (28) Fines and fees 54.8 47.7 15 Other revenue and revenue from other parties 250.3 253.7 (1) 3,841.4 3,782.8 2 Expenses from ordinary activities Employee entitlements 270.6 244.5 11 2 Depreciation and amortisation 333.5 336.1 (1) Resources provided free of charge or for nominal consideration 1.1 .. .. Grants and other payments 1,294.9 1,149.9 13 3 Capital asset charge 66.4 66.4 0 Supplies and services 1,613.6 1,663.1 (3) Financing costs 8.9 10.0 (11) Other expenses 1.5 0.0 .. 3,590.5 3,469.9 4 Result from ordinary activities 250.9 312.9 (20)

Loss from extraordinary items ...... Net result for the reporting period 250.9 312.9 (20) Net increase in asset revaluation reserve 1,038.2 502.7 4 Total revenues, expenses and revaluations recognised directly in equity 1,038.2 502.7 Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 1,289.1 815.6 58

Notes: 1. 2005–06 actual fi gure includes assets received from the Yarra River accounting classifi cation of payments which are now classifi ed as Maritime Reserve Committee of Management. ‘Grant and Other Payments’ rather than ‘Supplies and Services’. 2. Variation refl ects additional activities in DOI and VicRoads, including 4. Variation refl ects higher than expected level of asset revaluations the establishment of the Shared Services Centre. by VicRoads. 3. Variation primarily refl ects post-State Budget approvals including the settlement of claims in relation to the Southern Cross Station redevelopment. In addition, there have been changes in the

Appendixes Budget portfolio outcomes 254

Statement of Financial Position as at 30 June 2006

2005–06 2005–06 Actual Budget Variation ($ million) ($ million) (%) Notes

Current Assets Cash assets 727.4 598.3 22 1 Other fi nancial assets 50.0 50.0 .. Receivables 441.3 466.7 (5) Inventories 14.5 15.8 (8) Prepayments 4.2 3.1 35 Other ...... Total current assets 1,237.4 1,134.0 9 Non-current assets Receivables 0.2 2.2 (91) Inventories ...... Other fi nancial assets ...... Property, plant and equipment 19,003.1 18,648.4 2 Intangible assets 10.4 9.1 15 Other ...... Total non-current assets 19,013.7 18,659.6 2 Total assets 20,251.1 19,793.6 2 Current liabilities Payables 748.6 604.9 24 2 Interest bearing liabilities 13.5 0.2 6,467 Provisions 84.7 28.1 201 3 Other 34.2 46.0 (26) Total current liabilities 881.0 679.3 30 Non-current liabilities Interest bearing liabilities 8.1 1.4 460 Provisions 7.0 55.8 (88) 3 Other 203.2 201.7 1 Amounts owing to other departments ...... Total non-current liabilities 218.3 258.9 (16) Total liabilities 1,099.3 938.1 17 Net assets 19,151.8 18,855.4 2 Equity Contributed capital 14,635.4 14,800.6 (1) Reserves 4,967.8 4,466.1 11 4 Accumulated surplus (451.4) (411.3) 10 Total Equity 19,151.8 18,855.4 2

Notes: 1. Variation refl ects commitments where the timing of the cash payment 3. Variation refl ects change in the accounting classifi cation between current will occur in a future period. and non-current employee entitlement positions. 2. Variation primarily refl ects additional project activity in VicRoads. 4. Variation refl ects higher than expected level of asset revaluations by VicRoads.

DOI ANNUAL REPORT 2005–06 255

Statement of Cash Flows for the year ended 30 June 2006

2005–06 2005–06 Actual Budget Variation ($ million) ($ million) (%) Notes

Cash fl ows from operating activities Receipts from Government 3,355.5 3,314.4 1 Receipts from other entities 446.2 374.3 19 1 Payment of supplies, grants and employees (3,066.1) (3,031.6) 1 735.6 657.0 12

Interest received 4.7 0.8 490 Capital asset charge (66.4) (66.4) .. Financing costs expense (8.9) (10.0) (11) Other receipts 106.2 73.7 44 2 Net cash infl ow from operating activities 771.2 655.2 18 Cash fl ows from investing activities Payments for property, plant and equipment (456.5) (660.7) (31) 3 Proceeds from sale of property, plant and equipment 15.1 19.9 (24) Payments for investments ...... Proceeds from sale of business assets (repayment of) loans by other entities (0.1) .. .. Net cash (outfl ow) from investing activities (441.4) (640.8) (31) Cash fl ows from fi nancing activities Net proceeds from capital contribution by State Government (122.9) 25.5 (582) 4 Net proceeds of borrowings (23.6) (15.3) 54 Net cash infl ows (outfl ow) from fi nancing activities (146.5) 10.2 (1,540) Net increase (decrease) in cash held 183.3 24.6 646 Cash at the beginning of the fi nancial year Cash at the end of the fi nancial year 183.3 24.5 649

Notes: 1. Variation primarily refl ects higher than expected level of public 3. Variation refl ects changes to prior year road asset values, the transport activity. reclassifi cation of road activities from capital to operating and the rescheduling of projects across years. 2. Variation refl ects additional activities in DOI, including the establishment of the Shared Services Centre. 4. Variation primarily refl ects changes to the investment in entities following the reconstitution of portfolio entities.

Appendixes Budget portfolio outcomes 256

Administered Items Statement as at 30 June 2006

2005-06 2005-06 Actual Budget Variation ($ million) ($ million) (%) Notes

Administered revenue Appropriations — Payments made on behalf of the State 35.9 35.9 .. Special Appropriations ...... Resources received free of charge or for nominal consideration ...... Sale of goods and services 1.2 2.9 (59) Commonwealth grants 300.0 234.1 28 1 Other grants 10.7 .. .. 2 Taxes 1,299.6 1,330.9 (2) Fines 14.0 8.2 70 Fees 82.6 87.4 (6) Other 7.8 10.7 (27) Total administered revenue 1,751.7 1,710.1 2 Administered expenses Expenses on behalf of the State ...... Grants and other payments 46.6 35.9 30 2 Payments into the Consolidated Fund 1,808.3 1,740.6 4 Total administered expenses 1,854.9 1,776.5 4 Revenue less expenses (103.2) (66.3) 56 Administered assets Cash assets 14.5 15.7 (8) Receivables 226.3 268.1 (16) 3 Other fi nancial assets ...... Inventories ...... Prepayments ...... Property, plant and equipment ...... Intangible assets ...... Other fi nancial assets ...... Total administered assets 240.8 283.7 (15) Administered liabilities Payables 14.2 16.0 (11) Interest bearing liabilities ...... Provisions ...... Amounts owing to other departments ...... Other 90.3 94.5 (5) Total administered liabilities 104.5 110.5 (6)

Notes: 1. Variation refl ects additional Commonwealth funding for road projects 3. Variation primarily refl ects earlier than anticipated encashment following negotiations between the State and the Commonwealth to of Transurban concession notes held by the State to fund the bring forward funding from future years. construction of the Tullamarine - Calder interchange facility. 2. Variation refl ects natural disaster road restoration work undertaken by VicRoads.

DOI ANNUAL REPORT 2005–06 257 Output performance measures

The following section provides details of the outputs provided to Government during 2005–06, including performance measures and costs for each output.

The Department introduced the following changes to its 2005–06 output structure:

2005–06 Outputs Reason 2004—05 Outputs

Public Transport Safety and Regulation Restructured Public Transport Safety Initiatives

Road Safety and Regulation Consolidation Road Safety Initiatives and Regulation Accident Blackspots and Safer Road Infrastructure

Vehicle and Driver Regulation Consolidation Vehicle and Driver Regulation Taxi, Hire Car and Tow Truck Regulation

Marine Safety and Regulation Restructured Marine Safety Initiatives and Regulation

Infrastructure Security and Emergency Management New Output

Energy Policy Services Restructured Energy Policy Services

Integrated Metropolitan Public Transport Services Consolidation Metropolitan Train Services Metropolitan Tram Services Metropolitan Bus Services

Rural and Regional Public Transport Services Consolidation Country/Interstate Rail Services Country Bus Services

Specialist Transport Services Consolidation School Bus Services Accessible Transport Initiatives

eGovernment Infrastructure Restructured eGovernment Infrastructure and ICT Policy

ICT Policy and Programs Consolidated ICT Industry and Community Development

Integrated Transport Policy and Planning Consolidation Infrastructure Strategies Travel Management Initiatives

Public Transport Infrastructure Development Consolidation Passenger Interchange Development Metropolitan Public Transport Development Regional Public Transport Passenger and Freight Development

Appendixes Output performance measures 258

2005–06 Outputs Reason 2004—05 Outputs

Road System Management Consolidation Regional Road Projects Metropolitan Road Network Maintenance Regional Road Network Maintenance Major Metropolitan Road Projects Metropolitan Arterial Road Links

Traffi c and Transport Management Restructured Traffi c and Road Use Management Improvements

Freight, Logistics, Ports and Marine Development Consolidation Port Development Strategies Ports and Intermodal Freight

Public Construction and Land Development Restructured Major Public Construction and Land Development

During 2004—05, the Department conducted a comprehensive review of its output structure and performance measures. The aim was to improve the quality and relevance of performance measures and streamline the output structure.

The review also sought to better demonstrate the connection between outputs, the Government’s key policy outcomes, and the corporate outcomes and key performance indicators in the Department’s 2004—07 Corporate Plan. Where outputs were consolidated, separate measures were retained for reporting performance by transport modes (e.g. train, tram and bus), and in rural/regional and metropolitan areas.

Output costs for 2005–06 were prepared on an Australian equivalent to International Financial Reporting Standards basis.

Notes are provided to explain elements of measurements and major variations in performance against 2005–06 targets.

Abbreviations used in tables na not applicable nm new measure .. zero or rounded to zero

DOI ANNUAL REPORT 2005–06 259

Public Safety and Security

These outputs contribute to the achievement of the key government outcome of safe streets, homes and workplaces.

This is done by delivering initiatives and regulatory activities that improve safety in the public transport, road, marine and energy sectors and reduce the frequency, severity and cost of accidents and incidents. It also covers activities aimed at maintaining the security of critical infrastructure and the preparedness to respond to emergencies involving this infrastructure.

Reducing the State’s road toll is a high priority for the Government. A key measure of success will be a 20 per cent reduction in serious injuries and deaths from 2002 to 2007. This equates to saving 80 lives and avoiding 1,300 serious injuries each year. Key departmental outputs to achieve this outcome include continuing to implement arrive alive! road safety initiatives to change road user behaviour, and improving the quality of road infrastructure through initiatives such as the Safer Road Infrastructure Program. Regulatory measures to ensure private and commercial vehicles are appropriately registered and driven also contribute to achieving this outcome.

Similar regulatory frameworks and initiatives are in place to improve safety on trains and trams, and on the State’s waterways relating to both commercial and private recreational vessels. There has also been increasing emphasis on addressing the security of critical infrastructure.

Appendixes Output performance measures 260

Public Transport Safety and Regulation Work with industry stakeholders to achieve the highest standards of safety practicable for train, tram and bus services in Victoria and implement initiatives to achieve the Government’s public transport safety objectives. Monitor compliance of public transport safety management systems through rigorous audits and inspections. Investigate accidents, incidents and the follow up of corrective actions.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Train and tram safety compliance inspections (unannounced audits) number 120 75 1 Bus safety mechanical inspections number 50 23 2 Railway crossings upgraded number 38 20 3

Quality Train and tram safety: • audit observations reviewed and addressed at the next compliance audit per cent 100 100 • audit non conformance/compliance addressed within agreed timeframes per cent 100 89 4 • application for a material change (to a safety management system of an accredited rail organisation) reviewed within 30 days5 per cent 100 100 Bus safety: • audit non conformance/compliance addressed within 14 days per cent 100 100

Timeliness Train and tram safety: • all accredited organisations audited annually6 per cent 100 100 Bus safety: • all accredited organisations audited over two years7 per cent 50 44 Cost Total output cost $ million 15.3 17.3

1 In 2005–06, signifi cant resources have been deployed to the Steps are being taken to address these issues and a Statewide review preparation and development of new regulations and guidelines under of rail crossings is being undertaken to prioritise future works and plan the new Rail Safety Act 2006. The development of this new regulative for an increased level of upgrades in coming years. framework and implementation issues, including staff training and vacancies, have diverted resources away from train and tram safety 4 The target was not achieved due to delays in the provision of the compliance inspections. With the commencement of the Rail Safety information required for the non-conformance/compliance audits by Act 2006 and the Rail Safety Regulations 2006 on 1 August 2006, two accredited rail operators. Steps have been taken to address these resources will be refocused to compliance inspections. issues with the accredited rail operators. 2 Following the restructure of the Public Transport Safety Group in August 5 An accredited rail organisation under the Transport Act 1983 is defi ned 2005 to form Public Transport Safety Victoria, a new section was established as a manager of infrastructure and/or provider of rolling stock and/or for bus safety incidents investigation and this diverted resources away operator of rolling stock which has been accredited by the Secretary from bus mechanical inspections. Steps have been taken to address (or the Secretary’s delegate). There are approximately 60 such this issue to enable future audits and inspections targets to be met. organisations in Victoria. 3 The performance measure covers rail crossings upgrades managed 6 Refer to footnote 5. by VicTrack and does not include upgrades carried out under the 7 The Public Transport Competition Act 1995 requires operators of Regional Fast Rail Project. The lower than expected outcome for the vehicles with more than 12 seating positions (including the driver) that 2005–06 target refl ects diffi culties in delivering the necessary works are used to carry passengers for other than domestic purposes to be due to delays in obtaining project and design approval from the accredited. There are approximately 1,600 operators in Victoria. franchisees and a lack of qualifi ed signal maintenance technicians.

DOI ANNUAL REPORT 2005–06 261

Road Safety and Regulation Provide a road safety program that incorporates the Safe System approach. This approach is based on the key components of safer vehicles, safer road infrastructure and safer speeds. Essential supporting elements of the Safe System include controlling admittance to the system, understanding crashes and risk, education and information to support road users, and legislation and enforcement of road rules.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Road Safety projects/initiatives completed: • safe roads number 63 69 • safe vehicles number 3 .. 8 • safe road users number 18 36 9

Quality Projects completed within agreed scope and standards per cent 100 100

Timeliness Programmed works completed within agreed timeframes per cent 100 92 Cost Total output cost $ million 57.2 64.6

8 Project development works are yet to be completed for two projects. One project was not feasible to implement. 9 The result refl ects TAC motorcycle safety projects that were previously not included.

Appendixes Output performance measures 262

Vehicle and Driver Regulation Provide a vehicle registration and driver licensing service, which contributes to the integrity of the road user environment through ensuring the registration of trained drivers and roadworthy vehicles, and the ability to easily trace missing vehicles as well as administer, regulate and monitor taxis, hire cars, special purpose vehicles, restricted hire cars, tow trucks and the driving instructor industry.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Driver licences renewed number (‘000) 543 606 10 New driver licences issued number (‘000) 124 125 New vehicle registrations issued number (‘000) 485 473 Vehicle and driver information requests processed number (‘000) 1 426 1 959 11 Vehicle registration transfers number (‘000) 935 842 Vehicle registrations renewed number (‘000) 4 158 4 138 Commercial passenger vehicles audited – taxis, hire cars etc number 10 000 10 087

Quality Currency of registration and licensing records per cent >99 98 User satisfaction with registration and licensing per cent na na 12 Taxis and tow trucks conform to quality standards per cent >94 66 13 Taxi service complaints investigated number 1 400 1 974 14

Timeliness Customers served within ten minutes in VicRoads’ licensing and registration offi ces per cent 80 81 Calls answered within 30 seconds in VicRoads’ call centres per cent 80 61 15 Preliminary investigation of serious taxi service complaints completed within ten working days per cent 92 92 Cost Total output cost $ million 122.4 125.6

10 This refl ects the impact of phasing out the old renewal system to the 14 The Victorian Taxi Directorate’s higher profi le and the availability current three and 10 year options. of a 24-hour complaint line have contributed to an increase in the number of complaints being formally lodged. The classifi cation of what 11 The increase primarily refl ects additional CityLink requests for vehicle constitutes a complaint has also been broadened. The overall number registration information relating to vehicles travelling on CityLink. of complaints received equates to less than 0.01 per cent of more than 12 Data are not available for 2005–06 because the User Satisfaction 32 million taxi trips taken annually in Victoria. Survey is conducted in alternate years. 15 The target was not met due principally to a greater than anticipated 13 The below target performance for 2005–06 refl ects that many minor level of enquiries as a result of the introduction of six month infringements, which previously resulted in only warnings being given, registration renewals, the driver reward scheme, driver’s demerit are now treated as breaches of quality standards. There has also been points and custom plate options. some deterioration in industry standards linked primarily to the age of the taxi fl eet. The majority of operators are not purchasing brand new vehicles when replacing an over-age vehicle.

DOI ANNUAL REPORT 2005–06 263

Marine Safety and Regulation Develop and administer the policy and regulatory framework for the safe and effi cient 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.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Commercial vessels surveyed annually per cent 100 97 Recreational vessel compliance with registration requirements per cent 95 99.1 Safety audits performed on vessels: • commercial vessels per cent 15 16.9 • recreational vessels per cent 5 8.5

Quality Victorian waterways audited to assess adequacy of vessel operating and zoning rules per cent 8 13 16 Recreational boat operator compliance with licensing requirements per cent 100 98.4 Cost Total output cost $ million 16.4 11.2 17

16 The creation of six Boating Safety Offi cer positions to undertake auditing and education programs enabled more audits to be completed during the year. 17 Variation refl ects changes to the timing of payments under the Boating Safety and Facilities Program.

Appendixes Output performance measures 264

Infrastructure Security and Emergency Management Ensure there is adequate management of security risks and emergencies within critical infrastructure sectors, including: public transport, the road and rail system, ports and marine environments, and ICT and energy industries. Provide strategic advice to Government and coordination across sectors to achieve suffi cient capacity and preparedness to respond in emergency situations.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Major infrastructure emergency exercises coordinated number 1 3 18 Strategic policy briefi ngs to the portfolio Ministers number 20 32 19 Participation in strategic security and emergency management coordination sessions number 30 38 20

Quality Reported marine pollution incidents responded to and resolved in accordance with the Victorian State Marine Pollution Response Plan per cent 100 100

Timeliness Agreed recommendations initiated in response to infrastructure security reviews per cent 100 100 Marine pollution response action initiated within four hours of notifi cation of an incident per cent 100 100 Cost Total output cost $ million 2.1 2.4

18 Additional activity was required in response to the London bombings, given the implications of that for public transport security. Further work was also generated by the Commonwealth Games and the outcomes of the ‘Review of Security Risk Management in Victoria’s Public Transport Industries’, which included CCTV and blast mitigation initiatives. 19 Refer to footnote 18. 20 Refer to footnote 18.

DOI ANNUAL REPORT 2005–06 265

Public Transport Services

These outputs directly contribute to the achievement of the following key government outcomes:

• growing and linking all of Victoria

• building cohesive communities and reducing inequalities

• protecting the environment for future generations

• sound fi nancial management.

This is done by overseeing the delivery of quality, sustainable and cost-effective passenger train, tram and bus services to metropolitan Melbourne and rural and regional Victoria, in partnership with operators and in accordance with contractual arrangements.

These outputs aim to continue the improvement in the delivery of, and access to, public transport services and to increase the overall mobility of Victorians. The outputs help to protect the environment by increasing public transport patronage, thereby reducing the reliance on private motor vehicles. The Government works in partnership with operators to achieve these output aims. Contracts with operators are managed to ensure that the services provided meet contractually-agreed standards and that the committed investment levels for rolling stock and buses are delivered.

These outputs also include the provision of school bus services and managing the Multi Purpose Taxi Program, which provides subsidised taxi services for people unable to use other forms of public transport.

Integrated Metropolitan Public Transport Services Work in partnership with private operators to deliver quality metropolitan train, tram and bus services in accordance with contractual arrangements.

Major Outputs/Deliverables 2005–06 2005–06 Performance Measures Unit of Measure Target Actual

Quantity Total kilometres scheduled: • train km (million) 17.0 17.2 • tram km (million) 23.0 23.1 • bus km (million) 75.6 76.9 Scheduled services delivered: • train per cent 99.5 99.1 • tram per cent 99.5 99.7 • bus per cent 99.0 99.9

Appendixes Output performance measures 266

Major Outputs/Deliverables 2005–06 2005–06 Performance Measures Unit of Measure Target Actual

Passengers carried: • train number (million) 142 162.421 • tram number (million) 146.1 151.122 • bus number (million) 94.8 7823 Payments made for:24 • train services $ million 366 352 • tram services $ million 136 128 • bus services $ million 308 304

Quality Customer satisfaction index:25 • train services score 75 64.426 • tram services score 75 70.327 • bus services score 75 68.428 Rolling stock annual plan meets specifi cations in the Partnership Agreements: • train per cent 100 100 • tram per cent 100 100

Timeliness Train services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 96 93 Tram services departing the 2nd, 3rd and 4th monitoring points (average) no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 82 82.9 Bus services within 5 minutes of timetable per cent 95 93.9 Nominated capital projects are delivered by private operators within scheduled or subsequent quarter: • train per cent 85 100 • tram per cent 85 75 29 Cost Total output cost $ million 1 535.5 1 511.8

21 Metropolitan patronage growth from 2004–05 to 2005–06 is: train 25 The Director of Public Transport commissions monthly surveys of 11.2 per cent, trams 4.0 per cent and bus stable. After adjusting for both users and non-users of public transport to measure satisfaction the patronage spike caused by the Commonwealth Games, underlying with services. patronage growth is estimated to be 4.9 per cent for metropolitan transport overall (train: 9.4 per cent; tram: 2.9 per cent; and bus: 26 The 2005–06 targets were stretch targets, which were not achieved. stable). The metropolitan train mode has been experiencing strong Customer satisfaction with metropolitan train services in the past growth, driven primarily by increases in petrol prices. two years has been lower than in previous years due to poorer than expected operational performance. The Customer Satisfaction 22 Refer to footnote 21. Index (CSI) score for tram services is consistent with longer term performance. The CSI for bus services has fallen slightly due to 23 The Department has reviewed its measurement methodologies concerns with service frequency and span of operations. for estimating patronage across all public transport modes. A new and more accurate methodology for estimating metropolitan bus 27 Refer to footnote 26. patronage has been used from 2005–06, which is consistent with that now used for estimating tram and train patronage. Bus patronage 28 Refer to footnote 26. growth was stable in 2005–06. 29 Performance is below target due to one of the three projects being 24 The payment fi gures provided represent the payments made by the delayed. The Passenger Information Display project was delayed due Department to operators for the provision of transport services and do to problems with the provision of power to sites. not include the administrative overheads incurred by the Department. They also do not include the capital asset charges payable to VicTrack in relation to train and tram operations.

DOI ANNUAL REPORT 2005–06 267

Rural and Regional Public Transport Services Work in partnership with V/Line and private operators to deliver quality train, coach and bus services, to and in regional and rural Victoria, in accordance with contractual arrangements.

Major Outputs/Deliverables 2005–06 2005–06 Performance Measures Unit of Measure Target Actual

Quantity Total kilometres scheduled: • V/Line train and coach km (million) >11.3 11.3 • country bus km (million) 18 19 Scheduled services delivered: • V/Line train per cent 99.2 99.0 • country bus per cent 99 99 Passengers carried: • V/Line train and coach services number (million) 7.4 7.3 • country bus services number (million) 11.3 11.7 Payments made for:30 • V/Line train and coach services $ million 190 189 • country bus services $ million 53 55

Quality Customer satisfaction index:31 • V/Line train and coach services score 78.0 70.5 32 Rolling stock annual plan meets specifi cations in the Partnership Agreement: • V/Line train per cent 100 100

Timeliness Rail services arriving at destination no more than 5 minutes 59 seconds after timetable per cent 87.0 83.5 33 Country bus services within fi ve minutes of timetable per cent 99.0 97.8 Cost Total output cost $ million 473.3 514.1

30 The payment fi gures provided represent the payments made by the 32 Customer satisfaction with V/Line services was lower than the stretch Department to operators for the provision of transport services and do target, primarily due to the effect on passengers displaced to bus not include the administrative overheads incurred by the Department. services when rail corridors were closed for Regional Fast Rail works. They also do not include the capital asset charges payable to VicTrack This resulted in delays in journey times and an associated decline in in relation to V/Line train operations. customer satisfaction. The service disruptions caused by the Southern Cross Station development also affected V/Line’s performance. 31 The Director of Public Transport commissions monthly surveys of both users and non-users of public transport to measure satisfaction 33 The decline in punctuality for V/Line Passenger train services is with services. associated with operational constraints at Southern Cross Station during redevelopment works as well as with speed restrictions following major track works, including the Regional Fast Rail project. This fi gure refl ects the short-term disruption to services caused by these major rail infrastructure projects.

Appendixes Output performance measures 268

Specialist Transport Services Manage contractual arrangements for the provision of school bus services in accordance with contract service standards. Manage the Multi Purpose Taxi Program, which provides subsidised taxi services for those unable to use other forms of public transport, and provide access for people with a disability to transport facilities by meeting obligations under the Disability Discrimination Act 1992 (Cwth).

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Total kilometres scheduled: • school bus km (million) 33.8 33.8 Scheduled school bus services delivered per cent 99 99 Multi Purpose Taxi Program taxi trips: • passenger only number (‘000) 4 400 4 107 • with wheelchair number (‘000) 510 534 Number of transport access sites treated number 142 137

Quality Transport access projects completed within agreed scope or standards per cent 100 100

Timeliness School bus services within fi ve minutes of timetable per cent 99 99 Multi Purpose Taxi Program applications assessed and completed within ten working days per cent 94 94 Programmed transport access works completed within agreed timeframes per cent 100 97 Cost Total output cost $ million 205.9 200.5

DOI ANNUAL REPORT 2005–06 269

ICT Policy, Programs The ICT Policy and Programs output continues and Infrastructure to implement the Government’s agenda as outlined in the Victorian Government ICT Industry Plan These outputs contribute to the following key 2005–2010, Connecting Communities: the second government outcomes: wave and The Broadband Framework.

• creating more jobs and thriving, innovative The output undertakes a range of programs industries across Victoria designed to implement a strategic approach to broadband telecommunications; develop, implement • growing and linking all of Victoria and coordinate ICT programs for disadvantaged • building cohesive communities communities; and undertake a range of programs and reducing disadvantage designed to promote and grow a competitive Victorian ICT Industry. • sound fi nancial management.

These outputs provide the Government with strong policy development in relation to information and communication technologies (ICT), and implement a range of targeted industry and community development and telecommunications access programs. They also deliver cost-effective long-term investment in, and management of, government ICT infrastructure.

The Government has determined to deliver strategic whole-of-government ICT projects that improve effective and effi cient eGovernment infrastructure and services by implementing the Putting People at the Centre strategy.

The eGovernment Infrastructure output contributes to this by: the implementation and maintenance of a telecommunications purchasing and management framework (TPAMS); implementing and maintaining a secure directory service through Project Rosetta; improving access to online services through Victoria Online; the management of whole-of-government ICT contracts; and undertaking other strategic ICT projects.

Appendixes Output performance measures 270

eGovernment Infrastructure Deliver projects relating to eGovernment and Government voice and data networks.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity eGovernment infrastructure projects underway number 8 1034 eGovernment infrastructure services established and operated number 6 835

Quality Projects meet critical success factors per cent 90 90 Services operated as per service level agreements per cent 100 100

Timeliness Projects delivered in accordance with agreed plan tolerances per cent 90 90 Cost Total output cost $ million 19.0 19.7

ICT Policy and Programs Deliver policy advice and projects to grow a global ICT industry in Victoria and to promote the advanced use of ICT across the economy, and state-wide infrastructure services.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity ICT projects and programs underway number 30 30 ICT policy reviews underway number 4 4 ICT research projects underway number 1 1 Export development projects number 40 40 Investment projects under development number 25 25

Quality Assessment of quarterly monitoring reports for ICT grant agreements undertaken per cent 100 100

Timeliness Payments made according to contracts, provided ICT grant recipients meet contract terms per cent 100 100 Cost Total output cost $ million 27.0 23.3

34 Two additional projects were undertaken – the eServices panel refresh and PC procurement. 35 Two new services were established as a result of the completion of projects undertaken.

DOI ANNUAL REPORT 2005–06 271

Infrastructure Planning, Delivery Within the Public Construction and Land and Management Development output, the Department assesses the feasibility of infrastructure development These outputs make a signifi cant contribution options and coordinates the delivery of a variety to the achievement of the following key of transport-related infrastructure projects. government outcomes: These are in addition to a large number of other, non-transport-related, major construction projects • growing and linking all of Victoria that are funded through other government departments and which are delivered by Major • sound fi nancial management Projects Victoria as a service to the host departments • more jobs and thriving, innovative industries and agencies. The latter projects are not reported in across Victoria the Department’s output statements.

• promoting sustainable development. The Energy Policy Services output provides policy and program support to deliver a safe and reliable These outputs do this by providing the Government energy supply to the State, and to further the with strategic policy and development guidance Government’s goal of increasing the use of renewable in relation to integrated transport planning and energy sources. the State’s energy supply, implementing targeted industry and community programs, and delivering cost-effective, long-term investment in, and management of, public infrastructure and major government projects in Victoria.

The Government is committed to building better, more accessible transport links for the State. This includes increasing the use of public transport and strengthening the connections between our ports, industry and agricultural centres. These outputs deliver a combination of strategic road and rail infrastructure improvements to manage congestion and improve the movement of people and goods throughout Victoria. They also encompass infrastructure projects that will improve service quality and timeliness for rail travel between Melbourne and four major regional centres, extend the metropolitan tram network, reopen country passenger rail services, improve strategic arterial road links and establish a major freeway linking the city’s south-eastern suburbs.

Appendixes Output performance measures 272

Integrated Transport Policy and Planning Contribute to the development of strategies for regional, rural and metropolitan Victoria by working collaboratively across government and within the community on transport planning frameworks, infrastructure priorities and implementation processes. Implement programs to infl uence travel behaviour and manage travel demands.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Transport modelling: growth areas — continuing number 2 2 TravelSmart Travel Plan Demonstration Program implementation in schools and workplaces number 30 30 TravelSmart Community Program — full scale target demonstration project households 25 000 25 000

Quality Participation rate in TravelSmart travel plan demonstration program: by target schools and workplaces per cent 80 80 TravelSmart Community Program — full scale demonstration project: participation rate by target community per cent 50 4536

Timeliness Metropolitan Transport Plan: • update date Aug 2005 na37 Transport model development: metropolitan area freight movement model — completed date Jun 2006 Jun 2006 North Eastern Integrated Transport Study — draft strategy complete date Mar 2006 na38 Multi agency access and mobility projects in rural and outer urban areas — stage 2 completed date Jun 2006 Jun 2006 Cost Total output cost $ million 5.9 12.6

36 The actual result is lower than the target, as the target was based on local government residential databases, which were subsequently found to have business addresses and vacant blocks included in them. 37 The Metropolitan Transport Plan was not separately updated as it was encompassed within the Government’s recent Meeting Our Transport Challenges plan. 38 The release of the draft strategy was deferred to July 2006 to allow further consultation with key stakeholders and the incorporation of initiatives announced in the Meeting Our Transport Challenges plan.

DOI ANNUAL REPORT 2005–06 273

Public Transport Infrastructure Development Ensure delivery of the Government’s commitment to metropolitan, regional and rural public transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators.

Major Outputs/Deliverables 2005–06 2005–06 Performance Measures Unit of Measure Target Actual

Quantity Craigieburn Rail Project construction projects — contract completion: • development and design per cent 100 100 • major works packages per cent 30 30 • Vermont South Tram Extension per cent 100 100 Projects continuing: • rail gauge standardisation number 1 1 • Wodonga Rail Bypass number 1 1 • Country passenger rail services: Mildura and Leongatha number 2 2 Regional Fast Rail Construction Projects – contract completion • Ballarat per cent 100 100 • Bendigo per cent 100 100 • Latrobe per cent 100 93 • Geelong per cent 100 100 Spencer Street Station Redevelopment project (Partnerships Victoria) — design and construction contract process per cent 100 100 Development of new integrated public transport ticketing solution: business requirements fully defi ned per cent 100 100

Quality The infrastructure lessee meets ride quality specifi cation on all passenger lines per cent 100 87.339 Projects progressed to agreed plans and timeframes per cent 100 100

Timeliness Spencer Street Redevelopment Project: • Completion of new roof date Dec 2005 Dec 2005 • Completion of Spencer Street concourse date Mar 2006 Mar 2006 Craigieburn Rail Project: • award main construction package date Sep 2005 Nov 2005 Planned infrastructure asset renewal/maintenance activities as specifi ed in the annual works plan are delivered within projected timelines: • train per cent cumulative 90 10040 • tram per cent cumulative 90 10041 Cost Total output cost $ million 47.6 114.042

39 The infrastructure lessee is required to maintain the track to a high 40 The result is greater than the target as asset renewal/maintenance ride quality standard for passenger rail services. When the overall activities carried over from 2004–05 have now been completed. ride quality is even marginally below requirements, as has occurred 41 Refer to footnote 40. infrequently over some line sections in 2005–06, the lessee is required to take remedial action. 42 Variation primarily refl ects initiatives approved post-State Budget and the settlement of claims in relation to the Southern Cross Station redevelopment.

Appendixes Output performance measures 274

Road System Management Enhance the performance of Victoria’s road network by improving access and effi ciency through developing road transport links, lowering transport operating costs and upgrading the quality of roads with respect to safety.

Major Outputs/Deliverables 2005–06 2005–06 Performance Measures Unit of Measure Target Actual

Quantity EastLink Project: • Community Advisory Group (including concessionaire) meets number of to address community issues meetings 10 10 • Concession Deed identifi ed project groups and other concession management committees meet at agreed frequency per cent 100 100 • land acquisitions completed per cent 100 99 Road network maintained: • metropolitan lane-km 11 173 11 173 • regional lane-km 41 511 41 511 Bridges maintained: • metropolitan number 845 845 • regional number 2 140 2 142 Major road improvement projects completed: • metropolitan number 1 1 • regional number 1 .. 43 Other road improvement projects completed: • metropolitan number 6 7 • regional number 3 2 Pavement resurfaced: • metropolitan m2 (‘000) 2 033 2 042 • regional m2 (‘000) 10 183 10 004 Bridge strengthening and replacement projects completed: • regional number 15 19 • metropolitan number 1 1 Local road projects completed: • regional number 28 22 44

43 The project was not completed due to delays in obtaining the planning permit approval. 44 Six projects were not completed for a variety of reasons: unfavourable weather, late awarding of contracts and design changes.

DOI ANNUAL REPORT 2005–06 275

Major Outputs/Deliverables 2005–06 2005–06 Performance Measures Unit of Measure Target Actual

Quality SEITA’s Risk Management Plan reviewed and mitigation number of strategies in place reviews 4 4 Design and construction issues for EastLink Project progressively identifi ed and resolved with Concessionaire per cent 100 100 Proportion of travel on smooth roads45 • metropolitan per cent 91 91 • regional per cent 93 94 Bridges that are acceptable for legal load vehicles: • metropolitan per cent 99.4 99.6 • regional per cent 99.6 99.6 Bridges with level 4 defects: • metropolitan per cent 1.3 0.9 • regional per cent 3.3 3.3 Road projects completed within agreed scope and standards: • metropolitan per cent 98 98 • regional per cent 98 98

Timeliness Annual maintenance program completed within agreed timeframes: • metropolitan per cent 100 100 • regional per cent 100 98 Programmed works completed within agreed timeframes: • metropolitan per cent 95 100 • regional per cent 95 91 Major design and construction milestones for EastLink (as outlined below) reviewed and reported46 per cent 100 95 Cost Total output cost $ million 761.7 768.5

45 Smooth travel exposure is measured as the percentage of travel undertaken each year on roads with a roughness level condition <4.2 IRI. This indicator is reported each year for all state road authorities and is based on the International Roughness Index (IRI). It is calculated to a defi ned methodology. The roughness level of <4.2 IRI is based on customer surveys regarding ride quality. 46 EastLink design and construction is the responsibility of the Concessionaire — ConnectEast, and the design and construct contractor — Thiess John Holland. Milestones include: precast yard established by July 2005; bulk earthworks (scraper fl eet) commenced by November 2005; tunnel portals available for roadheaders by January 2006; and Monash Freeway side-track operational by May 2006.

Appendixes Output performance measures 276

Traffi c and Transport Management

Deliver cost-effective projects to reduce congestion and improve travel times for all road users including public transport, bicycles and pedestrians.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Road user facilities improvement projects number 61 70 47 Travel time improvement projects for high occupancy vehicles48 number 30 15 49

Quality Projects delivered in accordance with agreed scope and standards per cent 100 100

Timeliness Program works completed within agreed timeframes per cent 100 93 Cost Total output cost $ million 120.1 116.8

47 Additional pedestrian projects were added to the program after the original target was set. 48 High occupancy vehicles include public transport such as trains, trams and buses, as well as commercial passenger vehicles such as taxis. 49 The original target included projects that were multi-year projects scheduled for completion after 2005–06 and therefore should not have been included in the original target.

DOI ANNUAL REPORT 2005–06 277

Freight, Logistics, Ports and Marine Development Plan and deliver policy and infrastructure initiatives to improve effi ciency and safety in the freight and logistics sector and the State’s ports and marine environment, while reducing environmental and social impacts caused by the movement of freight.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Channel Deepening • project approval per cent 100 .. 50 Geelong Port Rail Access per cent 20 10 51 Road-based freight accessibility and reliability improvement projects number 31 33

Quality Channel Deepening: • project progressed in accordance with SEES/EMP conditions per cent 100 100 Geelong Port Rail Access: • project progressed within agreed scope per cent 100 100 Road-based freight accessibility and reliability projects completed within specifi ed scope and standards per cent 100 100

Timeliness Dynon Port Rail Link: • complete pre-tender design and documentation date Dec 2005 Jan 2006 • contracts let for construction date Jun 2006 na 52 Rail Access Reform • completion of legislation and orders date Sep 2005 Oct 2005 Road-based freight accessibility and reliability projects completed within agreed timeframes per cent 100 100 Cost Total output cost $ million 39.7 26.9 53

50 In March 2005, the Minister for Planning confi rmed the requirement 52 There were delays in obtaining stakeholder agreement on the details for the Port of Melbourne Corporation to prepare a Supplementary of project scope, and complications arising from road/rail interfaces. Environment Effects Statement (SEES). Final SEES assessment Tender documentation is being prepared and tenders are expected guidelines were released in October 2005. It is anticipated that to be called in the second half of 2006. the SEES will be completed in December 2006. Project approvals will be sought after public exhibition and panel processes have 53 Variation refl ects a reclassifi cation of activities from operating been completed. to capital. 51 The Geelong Port Rail Access project was delayed due to extended negotiations with the lessee, Pacifi c National, regarding scope and agreed end cost. Completion of the construction in 2006–07 is subject to detailed agreement with the lessee.

Appendixes Output performance measures 278

Energy Policy Services Provision of policy advice to deliver Government objectives for a secure and cost-effective energy supply to the State.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Major strategic policy advice to Government number 5 5 Strategic policy briefi ngs to portfolio Minister number 200 220 Powerline relocation grants approved number 20 22 Exercise strategies for maintaining security of electricity and gas supply number 2 2

Quality Compliance with criteria for approval of powerline relocation grants per cent 100 100

Timeliness Key deliverables and projects managed on time — in line with planned and agreed project timetable per cent 95 95 Responses to Ministerial correspondence delivered within agreed timelines per cent 85 85 Cost Total output cost $ million 11.2 11.5

DOI ANNUAL REPORT 2005–06 279

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.

Major Outputs/Deliverables Unit of 2005–06 2005–06 Performance Measures Measure Target Actual

Quantity Yarra Precinct pedestrian link – physical completion per cent 100 100 Yarra Precinct lighting works – physical completion per cent 100 100 Project feasibility studies conducted number 5 7

Quality Delivery of nominated projects complies with agreed plans per cent 100 100

Timeliness Hazardous Waste Siting: • statutory approval given for soil recycling facility at preferred site date Dec 2005 na54 • application lodged for statutory approval for a long-term containment facility date Jul 2005 na55 • statutory approval given for long-term containment facility date Feb 2006 na56 • commence process for appointment of an operator for long-term containment facility date Mar 2006 na57 Cost Total output cost $ million 9.7 20.158

54 The preferred developer is staging statutory applications in 57 Refer to footnote 55. accordance with demonstrated market demand. 58 Variation primarily refl ects a reclassifi cation of expenditure from 55 The Environmental Effects Statement has been extended due capital to operating. to a need to conduct additional studies and provide signifi cant community comment. 56 Refer to footnote 55.

Appendixes Output performance measures Better Roads Victoria Trust Fund 280

The Victorian Government’s Better Roads Victoria Trust was established in 1993 under the Business Franchise (Protection Products) Act 1979. The Act specifi es that a State franchise levy on petrol and diesel fuel sales would be paid into the Better Roads Victoria Trust. Following the abolition of this levy in August 1997, the Victorian Government has continued to make equivalent payments to the Trust, together with a $17 per motor vehicle registration fee, applicable from 1 July 2003, and subsequent indexation. In addition, from 1 July 2005, all receipts collected from traffi c cameras and on-the-spot speeding fi nes are channelled into the Better Roads Victoria Trust. Funds from the Better Roads Victoria Trust are used for the construction and maintenance of roads in accordance with the Road Management Act 2004, road safety initiatives and traffi c integration projects.

2005–06 $ million

Opening Cash Balance 210.7

Source of Funds BRV Revenue 384.9 Traffi c Camera Revenue 218.8 Total Funding Available 814.4

Application of Funds Road Projects1 213.0

Programs funded from Traffi c Camera Revenue Traffi c and Transport Integration Management 70.2 Road Safety Management 26.1 Road System Management 122.5 Total Payments from Trust 431.8

Closing Cash Balance2 382.6

1 Annual expenditure includes spending on projects funded jointly by the State and Commonwealth Governments. Commonwealth funding for the year is fully utilised with the balance of project expenditure met from the State’s Better Roads Victoria Trust. 2 The closing balance is fully committed to future approved projects. Around $2.7 billion in road projects has been commited for the next four years to be funded from the Better Roads Victoria Trust.

DOI ANNUAL REPORT 2005–06 281 Environmental performance report

This environmental performance report has been prepared in accordance with the requirements set out in the ‘Financial Reporting Direction 24 (FRD 24): Reporting of Offi ce-based Environmental Impacts by Government Departments’. It relates to the Department’s offi ce-based activities only. In general, total usage has increased due to an increase in FTE (full time equivalent) staff compared to 2004–2005.

2005–06 2004–05 Environmental Aspect Unit of measure Actual Actual

Energy1 Use per FTE2 megajoule 8,971 11,265 Use per square metre of offi ce space megajoule 378.5 447.5 Total use gigajoules 9,521 10,529

Total associated greenhouse gas emissions tonnes of CO2 equivalent 3,808 4,211 Total Green Power (per cent of total)3 per cent 11.94 6.7 Total cost of Green Power $ 17,308 6,628

Paper Use per FTE reams4 22.1 24.7 Total use reams 24,676 23,087

Transportation5 Total fuel consumption gigajoules 12,397 11,829 Fuel consumption per FTE gigajoules 11.1 13.2

Total associated greenhouse gas emissions tonnes of CO2 equivalent 887.1 834.1

Associated greenhouse gas emissions per FTE tonnes of CO2 equivalent 0.83 0.93 Total travel associated with departmental operations kilometres 3,093,888 2,870,333 Travel associated with departmental operations per FTE kilometres 2,775 3,196.4 Employees regularly (>75 per cent of time) using public transport, cycling and walking to and from work per cent 78.9 -

Waste6 Generated per FTE kilograms 65.3 51.9 Total recycled7 kilograms 72,749 44,355

Water8 Consumption per FTE litres 14,627 16,718 Total consumption litres 16,308,000 15,624,362

1 Tenancy light and power at DOI operations: 80 Collins St, 55 Collins 5 FTE for transport revised to exclude executives with salary-packaged St, Blackwood St and 60 Collins St. DOI has received an agency vehicles. Data for travel associated with departmental operations specifi c circumstance adjustment for DOI’s computer facilities calculated based on pool, dedicated and hire vehicles only. EPA

from Sustainability Victoria. This data has been excluded from total Greenhouse calculator used to calculate gigajoules and tonnes CO2. consumption reported. 6 Waste data assessed from 80 Collins St waste audit in April 2006. 2 The FTE as at 30 June 2006 was 1,112.2. 7 Total recycled includes compost and commingled recycling. Paper 3 The fi gure of 11.94 per cent was an average of the four quarters. from security destruction bins, some heavy cardboard and other At the start of the fi nancial year the fi gure was 6.7 per cent, recycling programs have been excluded. by 30 June 2006 we were using 16.05 per cent Green Power. 8 DOI occupies multi-tenanted buildings, and total consumption 4 500 sheets of A4 white and coloured offi ce paper includes base building water consumption. Water consumption has (1 ream A3 = 2 reams A4). been estimated and/or extrapolated for some sites. As DOI sites are not separately metered, consumption is based on percentage of building occupied and total building consumption, and may not give a true indication of DOI sole consumption.

Appendixes Environmental performance report 282

Other Information: 3. Actions taken to demonstrate environmentally responsible purchasing activities: 1. Actions taken during the year to reduce energy use in buildings: • removal of polystyrene cups from stationery ordering system • awareness programs to encourage people to switch-off PCs after use including the • DOI has removed the option of purchasing commencement of a ‘switch-off’ campaign non-recycled A4 copy paper from the stationery ordering list to ensure that all A4 copy paper • investigations of printer consolidation to reduce purchased contains recycled content the number of printers using energy across the department • awareness through Green Purchasing seminars and provision of a Green-stationery guide to • DOI is purchasing 15 per cent Green Power for purchasing offi cers. 80 Collins St (as at 1 January 2006) and 100 per cent Green Power at two other sites, of which 25 per cent is accredited Green Power.

2. Actions taken during the year to reduce energy use in the Department’s vehicle fl eet:

• continuing to increase the number of LPG and 4-cylinder vehicles. At the start of the fi nancial year there were a total of 32 vehicles that were using LPG/4 cylinders. This was increased to 39 LPG/4 cylinders at 30 June 2006

• monthly publishing of greenhouse gas emissions from the vehicle fl eet, as well as regular reminders for green travel options

• mapping and monitoring of inner city car trips

• lease and promotion of a Toyota Prius, and seeking to lease another two hybrid vehicles

• Executive Offi cers are encouraged to consider LPG-fuelled or 4 cylinders cars when selecting a replacement vehicle

• modifi cations to DOI’s Vehicle Policy to ensure dedicated vehicles are all 4-cylinder or LPG, unless a case for exemption is approved.

DOI ANNUAL REPORT 2005–06 283

Key achievements in 2005–06 Major Priorities for 2006–07

DOI’s Environmental Management System (EMS) The EMS will continue to drive DOI’s offi ce-based was responsible for driving strategies and achieving environmental performance. Planned activities for a number of goals, including: 2006–2007 include:

• over 10 per cent reduction in the use of • continual improvement of the EMS, including paper/FTE over the year, and over 44 per cent an external audit by an environmental auditor reduction/FTE since the commencement of appointed under the Environment Protection monitoring in 2002–03 Act 1970

• an external environmental audit identifi ed • working towards an energy and environmentally substantial progress against DOI’s EMS and effi cient workplace when DOI relocates to the environmental initiatives new Southern Cross site, including pursuing a Green Star building rating • expansion of the DOI ‘Green Fleet’ (LPG and 4-cylinder vehicles) from 42.6 per cent at the • working towards reducing DOI’s total printer fl eet beginning of 2005–06 to 51.3 per cent at the end to reduce energy use of the fi nancial year. • increasing the proportion of hybrid vehicles in the DOI fl eet and seeking further greenhouse gas reductions

• seeking further opportunities for energy, paper and waste reductions and/or recycling options

• continuing to include environmental considerations in work practices.

Appendixes Environmental Performance Report Whole-of-Government Reporting – Indigenous Affairs 284

Background The approach refl ects the knowledge and understanding that issues facing Indigenous families The Government has committed to working in and communities in Victoria are interconnected, and partnership with Indigenous Victorians to create that new policy and service delivery approaches a society that: are required if progress is to be made. Five strategic areas of action have been identifi ed: • is proud of its Indigenous history

• addresses dispossession and disadvantage 1. Partnerships

• heals the hurt of past injustices 2. Land and culture

• builds a positive future. 3. Economic development and participation 4. Family and community health and well being In order to achieve this, three main policy goals have been established: 5. Improved justice outcomes.

1. Stronger Communities: supporting Indigenous The following information summarises the main initiatives communities with the necessary structures, DOI is implementing to build on this framework. funding and programs necessary to develop their capacity to drive change.

2. Reconciling the legacy of history: symbolic and practical measures necessary to heal the legacy of dispossession of land and culture.

3. Building a strong economic base: providing Indigenous Victorians with equal access to social and economic activities.

The Victorian Government and Victoria’s Indigenous communities have developed the Victorian Indigenous Affairs Framework as a whole-of-government approach to addressing Indigenous issues. The Framework aims to achieve partnership across government and between government and Indigenous communities with particular emphasis on improving:

• outcomes for Indigenous people

• coordination of government programs

• input and direction by Indigenous communities

• approaches to service delivery.

DOI ANNUAL REPORT 2005–06 285

Key strategies and initiatives VicRoads Environmental Services VicRoads Environmental Services supports and Partnerships advises on the development of project and area This action area recognises and respects Indigenous specifi c cultural heritage agreements with various people’s right to self-determination expressed through Indigenous groups across the State. These active partnerships with government that involve agreements ensure Indigenous input into road Indigenous Victorians in the planning, management projects, strengthen relationships with Indigenous and delivery of services. stakeholders and ensure Aboriginal cultural heritage is managed in a consistent and effective way. Marine Safety Victoria MSV is responsible for ensuring there is an effective New Aboriginal and Cultural Heritage Agreement response to marine pollution incidents in State templates and protocols have been developed and waters. Through the development of Regional Marine released in the past year for: Wurundjeri Tribe Land Pollution Contingency plans, MSV has developed Compensation and Cultural Heritage Council and an Aboriginal Heritage Protocol which designates Victorian Boonerwrung Elders Land Council. the appointment of Control Agencies to respond to incidents within their areas of responsibility. Project Specifi c Agreements have been established for: Deer Park Bypass, Goulburn Valley Highway Should an oil pollution incident necessitate foreshore (Arcadia Section) and Geelong Bypass. clean up action, MSV, or the Agency controlling the response, will notify Aboriginal Affairs Victoria (AAV) at Draft agreements were prepared in relation to: the earliest opportunity of the potential impact of oil on Calder Corridor, Echuca Murray River Bridge the Victorian coast. Upon notifi cation of a spill, AAV will Project, Robinvale-Euston Bridge Project and alert an Oil Spill Archaeologist to identify and mark the Bass Highway Corridor. boundaries of Aboriginal archaeological sites, survey proposed sites for the construction of new access During 2005–06, VicRoads has worked positively roads or other necessary ground disturbing activities to garner agreement on an alignment for the and assist in the selection of alternative locations. Echuca-Moama Murray River Bridge Project that adequately addresses the interests of key Goulburn Valley Highway Project stakeholders. This has involved complex negotiations with multiple stakeholders from both local government VicRoads has worked with Indigenous groups near and the Indigenous community in the context of Shepparton to study ways to mitigate the barrier existing heritage legislation. effects of roads and cleared land on the movement of wildlife. The groups assisted trapping and radio Administration, review and improvement of the tracking of fauna during the study. VicRoads — Yorta Yorta Nation General Area Agreement has been ongoing through 2005–06.

Through its regular interactions with Indigenous groups, VicRoads Environmental Services has assisted the teaching of administration, organisational and management skills to Indigenous community based groups in partnership with other departments.

Appendixes Whole-of-Government Reporting – Indigenous Affairs 286

Wimmera Indigenous Resource Land and Culture Management Partnership This action area aims to deliver land justice to VicRoads representation on this group enabled: Indigenous Victorians and protect Victoria’s Indigenous cultural heritage for future generations. • information exchange between all parties on cultural heritage and native title issues Deer Park Bypass Project Work commenced on a Memorandum of • networking between different organisations and Understanding (MOU) between the local Wurundjeri the Indigenous community Tribe and VicRoads’ Deer Park Bypass Project. It will include requirements to be incorporated into • opportunities to engage with the local Indigenous contract documents. community (e.g. look for training/employment opportunities, and/or ways to involve local VicRoads will ensure appropriate methods are used Indigenous people in a meaningful way). to deal with Indigenous sites along the route and that due diligence is applied at Aboriginal Affairs Victoria VicRoads Indigenous Employment Program (AAV) signifi cant sites and areas sensitive to the local VicRoads engaged an Indigenous Employment Wurundjeri group. Coordinator (in an on-going role) to develop a VicRoads Indigenous Employment Strategy and build Pakenham Bypass Project relationships with internal and external stakeholders. Agreement was reached on a ‘Cultural Heritage Agreement’ and a blanket ‘Consent to Disturb’ for An Indigenous traineeship initiative has increased this project. The ‘Consent To Disturb’ granted to trainee competitiveness for internal and external the Project ensures the management of discovered vacancies. In 2005–06, eight Indigenous young Aboriginal artefacts in ways satisfactory to Indigenous people started 12-month traineeships. Six of these communities. Surveys and subsurface testing were positions are based in regional Victoria, in customer used to identify monitoring points. service and business support roles.

Outer Urban Road Projects A VicRoads-specifi c training course was developed on ‘Reconciling the legacy of history’. VicRoads On-site Indigenous monitors and Aboriginal people were encouraged to increase their awareness cultural heritage surveys have assisted VicRoads of issues impacting on Indigenous Australians and in the planning and development of outer urban roads to to positively engage with Indigenous people as the satisfaction of local Indigenous groups. Monitoring colleagues, stakeholders and customers. protocols have been established with Indigenous groups at sensitive sites. Example road projects include:

• Cranbourne Frankston Road (Stage 2)

• Cranbourne Frankston Road (Stage 3) and Berwick Cranbourne Road

• Sladen Street duplication

• Taylors Road

• Kings Road

• Palmers Road

• Boundary Road.

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Goulburn Valley Highway Project Calder Corridor Projects Onsite monitoring has commenced at Arcadia Works have been undertaken in cooperation with the following agreement between VicRoads and Yorta Indigenous communities to support this project. It Yorta Nation on Yorta Yorta cultural heritage and has employed up to seven Indigenous monitors on environmental protection activities proposed for road an ‘as required’ basis during 2005–06 to ensure the planning and construction along the Arcadia Section appropriate management of Aboriginal cultural heritage. of the Goulburn Valley Highway duplication. The community has been invited to participate in information sessions on the project objectives Geelong Bypass Project and Aboriginal culture and artefacts, to improve VicRoads Geelong Bypass Project and the cultural understanding between VicRoads and local Wauthaurong Aboriginal Cooperative (WAC) in May Indigenous community groups about the challenges 2005 signed a MOU setting out protocols for the that will be faced during construction of the freeway. management of Indigenous issues linked to the construction project to ensure heritage values are Regional road projects preserved during construction. Monitoring of signifi cant improvement works by local Indigenous groups in the context of Aboriginal Cultural The WAC has agreed to adopt strategies to minimise Heritage on regional road projects has minimised disruption and cooperate with the construction project delays and improved relationships with the local schedule of the project. Construction commenced Indigenous community. It has also ensured artefacts on Section 1 of the bypass in February 2006. Up are properly handled at the time of discovery. to six monitors, at one time, have been on-site identifying artifacts throughout the initial stages of Consultation has continued with Indigenous groups the project and have worked diligently to ensure on the Echuca Murray River Bridge Project, Robinvale works are not delayed. River Bridge Project, Princes Highway Bruthen to Nowa Nowa Project, Bass Highway Stage 4 and The project archeologist has confi rmed that artefacts Loch to Bena Projects, and others, to strengthen have been identifi ed at the site but none yet has relationships with Indigenous stakeholders and proven signifi cant. Monitors have also ensured the manage Aboriginal cultural heritage in a consistent correct processes are implemented when artifacts and effective way. of any signifi cance are identifi ed and have engaged in preconstruction geotechnical investigations. The An administration and review agreement was WAC CEO has confi rmed that monitoring personnel prepared for the Robinvale-Euston Bridge Project. have acquired new skills through their involvement in Ongoing administration, review and improvement this project. of the VicRoads — Yorta Yorta Nation General Area Agreement continued.

VicRoads Western Region has recorded Indigenous cultural heritage values along the Henty Highway (from Horsham to Cherrypool) in partnership with Aboriginal Affairs Victoria, Goolum Goolum Aboriginal Cooperative and Wotjobaluk Traditional Land Council.

Appendixes Whole-of-Government Reporting – Indigenous Affairs 288

Recording the values aims to minimise the impacts Secondary school partnership of road maintenance and construction activities on DOI has offered work experience opportunities to known Indigenous cultural heritage sites and provide Indigenous students from Shepparton High School. opportunities for local Indigenous people to be The two students who participated in a week-long involved in an archaeological survey. work experience placement in October 2005 enjoyed the experience and will have an opportunity to As part of the project, VicRoads provided training participate in the Youth Employment Scheme (YES) for two local Indigenous youths which built their traineeship program on completion of their VCAL confi dence, ability and experience. (Victorian Certifi cate of Applied Learning) or VCE (Victorian Certifi cate of Education) secondary studies. Economic development and participation Another placement will occur in October 2006. This action area aims to improve education and training outcomes to facilitate participation and Cultural awareness sessions economic development and facilitate the effective These sessions were conducted in assist DOI staff translation of benefi ts of greater cultural recognition, working with Indigenous work experience students land ownership and community control into and trainees. They have been recently opened to all opportunities for business development, employment DOI staff. and economic independence. Advertisement for DOI positions in Koori Mail DOI’s Indigenous Employment Plan DOI now advertises available employment positions in DOI reported in last year’s Annual Report that its the Koori Mail to raise the profi le of DOI in Indigenous Indigenous Employment Plan formed a key element of communities and encourage Indigenous applicants. the DOI Diversity Plan. DOI began implementing the Diversity Plan in 2004, taking into account the whole- VicRoads of-government Indigenous Employment Strategy VicRoads funded industry OH&S training for coordinated by the Offi ce of Public Employment. members of the Indigenous community and donated the use of conference facilities for in-house training of DOI’s appointed Indigenous Liaison Offi cer provides Aboriginal heritage monitors. specialist support in developing and coordinating Indigenous awareness training programs for DOI staff, The VicRoads Eastern Region helped Indigenous develops Indigenous work experience and traineeship youth to prepare for learner permit testing and to drive initiatives and has been instrumental in developing the safely as part of an ongoing process of support in Indigenous Scholarship Program. various customer service centres in the region as part of the Road Safety Education Awareness Program. DOI Indigenous Scholarship Program Further assistance has been offered in teaching This Scholarship Program was introduced to support administration, organisational and management skills an Indigenous student through tertiary or TAFE to Indigenous community-based groups. level study. The supported student has successfully passed all requirements of their course to date.

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Forward priorities Land and Culture Deer Park Bypass Partnerships The Deer Park Bypass MOU between the local Employment opportunities Wurundjeri group and VicRoads will be completed DOI’s Public Transport Division (PTD), partnering with during 2006. The MOU sets out protocols during Human Resources Management Branch, will provide construction for the relocation of artefacts, three Indigenous secondary school students with an required presence of monitors and engagement alternative pathway to permanent employment within of archaeologists to survey, salvage and relocate the Victorian Public Service, through a partnership Aboriginal Affairs Victoria (AAV) artefacts. arrangement with Shepparton High School. Students will gain an understanding of the type of mainstream Archaeologists will be engaged to conduct fi eld work available in Victorian Government through a surveys to identify and record Aboriginal places in short work placement as part of their VCAL or VCE preparation for application for ‘Consent to Disturb’ Vocational Education and Training (VET) program. permits for known AAV sites. Once they have completed their schooling, an opportunity to participate in a YES traineeship will Information signs will be installed to indicate that be available to participants in the program which, the Wurundjeri group are the traditional owners of if accepted, may lead to permanent employment. the land on which the Deer Park Bypass will be built. A similar arrangement is being sought to establish A YES traineeship within PTD would be accompanied signs for the Craigieburn Bypass. VicRoads will liaise by access to a mentoring program and other with Wurundjeri Council to fi nalise the design and supports specifi c to the scheme. To support the location of signs by the end of 2006. program, training in Indigenous cultural awareness will be offered to staff working alongside the students. Goulburn Valley Highway Project An on-site monitoring agreement will be prepared VicRoads reference groups under the Yorta Yorta Cooperative Cultural Heritage Metro South East Region has invited representatives Agreement to provide cultural heritage monitoring from each Indigenous group in the region to attend services during the construction of the Arcadia reference groups to ensure that their views on road section of the Goulburn Valley Highway Duplication. related issues within the region are heard. Outer Urban Road Projects Initial surveys and on-site monitoring will continue to be a feature on outer urban road projects, for example at Derrimut Road, Taylors Road, Palmers Road and Boundary Road, to ensure that Aboriginal cultural heritage is effectively managed.

Appendixes Whole-of-Government Reporting – Indigenous Affairs 290

Monitoring of earthworks will be undertaken as part VicRoads Indigenous Employment Program of the Grieve Parade duplication project in Altona Initiatives under the program in coming years include: North by a Wurundjeri Tribe Land Compensation and Cultural Heritage Council approved monitor. • a new Indigenous Environmental Offi cer for Western Region providing further opportunities The Kangaroo Ground – St Andrews Road Shoulder to build relationships with Indigenous people in Improvement – Cultural Heritage Survey will provide the local area a detailed assessment of cultural heritage values to ensure that they are effectively managed during • introducing a new position, the Indigenous the project. Facilitator, to manage whole-of-staff Indigenous Cultural Awareness and Engagement training, VicRoads environmental services mentor Indigenous trainees state-wide and VicRoads will develop amended Cultural Heritage provide support and strategic advice to Guidelines incorporating new processes under the consultations between VicRoads business Cultural Heritage Act 2006 (Vic) and follow up to areas and Indigenous communities ensure staff on projects and in regions understand and follow the new process outlined in the 2006 legislation. • establishing an Indigenous Tertiary Scholarship and up to 10 Indigenous Secondary School Economic development and participation Scholarships to help Indigenous students consider Lake Tyers renewal project VicRoads as a future employer by linking work experience opportunities to scholarships DOI is participating in this project to support the implementation of a successful Indigenous • recruiting up to 5 Indigenous trainees in rural employment model in the Gippsland region and regions, providing 12 months training and thereby increase employment opportunities for the professional development to enhance their Indigenous community of Lake Tyers. competitiveness for a range of employment opportunities in regional locations Calder Freeway upgrade An agreement with Indigenous stakeholders for • conducting Indigenous Cultural Awareness development of the Calder Freeway upgrade will and Engagement Training through 20 clarify, regulate and promote an effective working courses state-wide. relationship between VicRoads, the Dja Dja Wurrung Peoples native title claimant group, the Jaara Jaara A pre-employment skills training program will include Loddon Aboriginal Corporation and the North West work experience for Indigenous job seekers. Cultural Heritage Program Region. The agreement will outline processes for the identifi cation and protection of Aboriginal cultural heritage.

DOI ANNUAL REPORT 2005–06 291 Whole-of-Government Reporting — Multicultural Affairs

Background Promoting the social, cultural and economic benefi ts of cultural diversity for all Victorians The Government’s multicultural policy – Valuing • Promoting the benefi ts of a culturally and Cultural Diversity – outlines the foundations for linguistically diverse society and the social, supporting Victoria’s diverse community and cultural and economic opportunities this provides promoting a socially cohesive society through: to advance the well-being of all Victorians.

Valuing diversity • Promoting to the Victorian community the benefi ts • Fostering a community which recognises gained from cultural and linguistic diversity. the values and benefi ts of a culturally rich and diverse society. Below is a summary of the activities undertaken by DOI to support Victorians from non-English • Actively promoting respect and harmony and speaking backgrounds, in line with the Government’s discouraging racism and negative stereotypes. multicultural policy.

Reducing inequality Key strategies and initiatives • Recognising the right of persons of diverse national, ethnic, religious and linguistic Use of language services and communications backgrounds to practice, enjoy and share in languages other than English their own culture. DOI TravelSmart • Having in place systems and procedures that will enable all Victorians access to Last year’s DOI Annual Report described how the Government services and programs free TravelSmart program aimed to engage with and from undue impediment. educate residents, students and workers about their travel choices and encourage them to choose • Ensuring Government policies and strategies alternative means of travel to private motor cars. are responsive to all Victorians. A large-scale travel behaviour change project in 2005–06 involved approximately 45,000 households Encouraging participation from across the City of Maribyrnong and City of Moonee Valley. • Encouraging an inclusive society that provides opportunities for all people to fully participate in The TravelSmart methodology was augmented to public and civic life. ensure those that speak languages other than English had increased opportunity to participate in • Using appropriate media and promotional the program. channels as a means to ensure Government information reaches all Victorians Pre-project introductory meetings were held with culturally and linguistically diverse (CALD) groups • Identifying and addressing any barriers to using interpreters. Project delivery contractors full participation. employed multilingual phone and doorknock staff to provide personal advice about travel to non-English speaking households.

Appendixes Whole-of-Government Reporting – Multicultural Affairs 292

Interpreter services and translations Under the Industry and Community Development The Multilingual Information Line (MIL) is a telephone Public Internet Access Program, i@ Learning Material, service subscribed to by DOI as a vehicle to reach internet training material, was translated into 10 its multicultural audience. The MIL allows information languages and placed on the i@ website relating to DOI projects to be recorded and accessed www.internet-access.vic.gov.au in 13 languages. Translation services were provided in the past year for: Regional Fast Rail, TravelSmart, Metlink customer information Craigieburn Rail Program, Connecting Communities, Metlink publishes three key public transport Southern Cross Station, Multi Purpose Taxi Program brochures in 10 languages: Fares and Travel Guide, and Boat Operator Licensing. Travelling with a Concession Metcard and Travelling with Metcards: Your Rights and Responsibilities. If the percentage of people who speak a language in a particular area is signifi cant, a translation is Metlink offers a telephone translation service for added to brochures to encourage these community public transport enquiries in 13 languages other than members to call the interpreter service. English and telephone numbers are published to access interpreter services for languages other than DOI arranged for the community document Guide to those specifi ed. Victorian Government Services to be translated into 12 languages other than English. VicRoads – licensing and registration services VicRoads call centre supports customers from non- The Recreational Boating Safety Handbook was English speaking backgrounds by providing language published in four other languages to provide the services through the use of the Victorian Interpreter educational material for all recreational boat operators and Translating Services (VITS). to obtain boat licences. An interpreting service was provided to advise the Information was produced in four languages other community of the Young Driver Safety and Graduated than English to assist in explaining the new life jacket Discussion Paper and support participation in the and marine regulations for Victoria. public consultation process.

Information brochures were prepared on A DVD was developed with funding assistance from the Victoria Law Foundation and Consumer • the Young Driver Safety and Graduated Affairs Victoria to assist Horn of Africa immigrants to Licensing Discussion Paper advising the understand the relevant laws and requirements to community on how to submit a response obtain a learner permit or driver licence. to the Discussion Paper As an agent for Marine Safety Victoria, VicRoads • the Craigieburn Bypass provides multilingual services to assist members of the community from non-English speaking backgrounds • a community information evening on the Plenty to meet boat operator licensing requirements. Road Duplication Project.

Interpreting services, both oral and written, were deployed by VicRoads to inform members of the public about the Main Road Bypass Planning Study.

DOI ANNUAL REPORT 2005–06 293

VicRoads - road safety Major improvements in The Victorian Older Drivers’ Handbook 4th Edition 2005–06 and ongoing/priorities provides accessible information in a number of languages to older drivers about road safety issues Valuing diversity affecting this group. DOI is committed to respecting cultural diversity in the workplace, and in all its dealings with The Starting Out Safely Early Childhood Program stakeholders and the community. It has in place provides printed materials and posters with information a range of Human Resources policies, guidelines on child restraints for carers of young children. and strategies to foster and support diversity in the workplace, including the Policy for Managing Ethnic media advertising and promotions and Valuing Diversity, Policy and Guidelines for Community attention was drawn to publications, the Prevention of Discrimination, and Policy and consultation processes and requests for grant Guidelines for Racial and Religious Tolerance. applications through Victoria’s multicultural newspapers, including: DOI provides its staff with a Leadership and Management training program, which includes a • the Guide to Victorian Government Services diversity component highlighting the benefi ts and values booklet which was translated into 12 languages of a rich and diverse working community. Staff feedback suggests the courses have infl uenced thinking. • the new marine and life jacket regulations available in fi ve languages other than English The Diversity Plan, which is part of the DOI People Strategy 2004–06, includes a performance • information on how to comment on a Young requirement for managers to introduce initiatives into Driver Safety and Graduated Licensing the workplace that celebrate and increase diversity. Discussion Paper DOI provides information sessions and training to • information on grants available under the My assist staff and managers to prevent bullying or Connected Community funding program and harassment in the workplace. It continues to collect Public Internet Access Program. data about internal complaints relating to alleged discrimination and all grievances, and reports its Metlink publishes press advertisements regarding fi ndings to the Offi ce of Public Employment (OPE). new fares in local multicultural newspapers and other publications which are published in nine languages DOI recruitment policies are regularly reviewed and other than English. updated to ensure they encourage inclusive and equitable practices. ‘The Good Recruitment Guide’ was completed and endorsed for use and made available online to all DOI Managers in 2005–06.

VicRoads has policies and guidelines on Equal Employment Opportunity (EEO), harassment and investigation of misconduct by employees, which discourage racism and promote tolerance and harmony. Training programs are provided to reinforce non-discriminatory behaviour.

Appendixes Whole-of-Government Reporting – Multicultural Affairs 294

In the 2005–06 intake-year, an estimated 40 per Support for licensing and registration cent of VicRoads graduates were from culturally People from non-English speaking backgrounds diverse backgrounds, based on information provided can apply for a learner permit or vehicle licence voluntarily after employment. through interpreter-assisted tests. In 2005–06, 4,350 interpreter-assisted tests were undertaken VicRoads employs a diverse range of people and interpreters for 64 languages were used. to provide registration and licensing services at Customer Service Centres. Recruitment may be VicRoads provides Learner Permit and Probationary targeted to specifi c cultural groups. This promotes licence tests in 20 languages other than English. harmony and more readily provides services to people with English as a second language. In line with other Australian states and territories, VicRoads recognises 22 other countries with similar Reducing inequality in access to ICT licence testing requirements. In December 2004, the Minister for Information and Communication Technology announced the During 2005–06 VicRoads: Connecting Communities: the second wave policy framework. This seeks to reduce the barriers to • met with groups within the Samoan community in internet uptake in the Victorian community by the Broadmeadows area regarding learner permit targeting groups with persistently low levels of testing and booking tests internet take-up and encouraging the development of more relevant and useful content. The Connecting • provided ongoing assistance on licensing Communities: the second wave aims to support information and requirements provided to the disadvantaged Victorians, particularly senior Sudanese, Cook Islander and Cambodian Victorians, including those from a non-English communities in the Oakleigh South area speaking background and recent migrants. • provided information and learner permit testing In February 2006, the My Connected Community for young Japanese community members in program provided funding to 20 organisations to the Oakleigh area as part of the Australia/Japan establish online groups. Out of the 20 organisations, Society’s Learn English for Employment in the 15 will establish online groups that include targeting Hospitality Industry program senior Victorians (including those from a non-English • presented driver licensing information twice a speaking background) and four will establish online year to international students at Monash and groups that include targeting recent migrants. Swinburne Universities and held information The Public Internet Access program has provided sessions at Monash University funding to 88 organisations resulting in 25,578 hours • attended the St Albans Multicultural Centre to of free internet access during 2005–06. As a result, assist newly arrived migrants with information recent migrant and senior Victorians (including those regarding licence testing and registration matters from a non-English speaking background) are provided with free or affordable public internet access. • delivered presentations on registration and licensing matters to various community groups in the Dandenong area.

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VicRoads delivers annual presentations about Encouraging participation Victorian licensing requirements to large groups of Approximately 100 people attended a presentation on multicultural students from educational institutions, the Young Driver Safety and Graduated Licensing and including Royal Melbourne Institute of Technology Discussion Paper at a transport forum arranged by (RMIT) as part of its orientation program. Issues that the Centre for Multicultural Youth Issues in 2005–06. are covered include: Research was conducted into the effectiveness of • driving in Victoria VicRoads child restraint messages by families of • getting a learners permit children in ten CALD communities.

• driving on an overseas licence

• learning to drive

• making an appointment for a test.

Students from a diverse range of backgrounds are involved. In presentations to students for Australian Multicultural Education Services (AMES), six different interpreters are employed to relay information to the students.

Road safety The Novice Driver Kit is available in nine languages other than English. The Novice Driver Kit contains the Road to Solo Driving and Getting There from L’s to P’s handbooks.

The ‘Starting Out Safely’ early childhood road safety education program was translated into fi ve languages (Arabic, Chinese, Somali, Turkish and Vietnamese). It includes parent/carer materials and support for community-based agencies with families in CALD communities. The program kit was promoted and distributed to more than 200 childhood education centres and municipalities.

VicRoads Northern Region provides ongoing multicultural road safety programs targeting various groups, such as the Horn of Africa and Pacifi c Islander communities.

Appendixes Whole-of-Government Reporting – Multicultural Affairs Whole-of-Government Reporting — Women’s Affairs 296

Background • building capability • motivating people to achieve Leading with Victoria’s Women 2004–2007 identifi es the Government’s achievements for women to date • better people management. and is a response to the women of Victoria that clearly articulates Government’s commitment to working for The Diversity Plan, a key element of the People a better quality of life for all Victorian women and their Strategy, includes a Plan for Women within DOI. families. The policy’s four key themes are: A Manager Development Program specifi c to DOI’s Representation and equity needs has been implemented. Managers nominate • Ensure women are well represented in leadership women with potential to attend this course. and decision making. When DOI jobs are advertised, the Human Resource Education, work and economic independence Management Branch and the relevant manager ensure that suitable female applicants from DOI • Support employers and employees to better are encouraged to apply and that the applicant balance work and family commitments and fi eld includes 50 per cent of women for 75 per cent increase women’s participation in the workforce. of all positions.

• Ensure women are provided with choices in DOI’s executive search criteria have been improved education and training that take account of the to ensure that all executive search companies diversity of women. engaged by the Department include female candidates. Job advertisements and selection Health, wellbeing and community strengthening criteria have been improved to attract women • Improve the health and wellbeing of and prevent indirect discrimination. Victorian women. Scholarships Justice and safety Traditionally, both the public and private sectors • Reduce the fear of violence for women. of the freight, logistics and marine industries have recruited and trained men into senior management The following information outlines the main initiatives roles. The Women in Freight, Logistics and Marine undertaken by DOI during 2005–06 in relation to Management Scholarship was established in 2001 to supporting women. encourage women to prepare themselves and apply for management positions within the freight, logistics Key strategies and initiatives and marine industries.

Human Resources The scholarship is an initiative intended to encourage DOI People Strategy 2004–06 and support women to these positions; 2005–06 The DOI People Strategy 2004–06 was announced was the third year the scholarship has been offered. last year and implemented during 2005. The People The scholarship is valued at $10,000 and awarded Strategy is based on feedback from DOI staff for academic expenses towards one year full-time and aims to improve job satisfaction across the or two years part-time Ph.D, Masters or postgraduate Department by addressing three key areas: study. The winner of the scholarship is also given the opportunity to participate in part time work at the Department of Infrastructure during the year.

DOI ANNUAL REPORT 2005–06 297

Women are under-represented in the Science Accelerated Development Program Engineering and Technology (SET), and Construction The above initiative is being developed as a pilot fi elds. Scholarships were introduced by DOI to program for staff at VPS grades 5 and 6 identifi ed support women currently working in, or aspiring to as high potential employees. At least 50 per cent of work in these fi elds. Two scholarships were awarded participants will be women. Further programs will for 2006. then be offered to all grade levels for people identifi ed as high potential employees. Many female students are not aware of the opportunities a career in IT can bring, and the number Regional Mobile Digital Mammography Project of females studying IT at tertiary level is declining. The Victorian Government is contributing $1.9 million The ‘Go Girl Go for IT’ events aim to shift secondary to improve the quality of breast screening services in school girls’ perceptions about a career in IT. regional Victoria by using wireless broadband networks Feedback from past events indicates it supports to connect the Breast Screen Victoria (BSV) mobile positive attitudes towards a career in IT. screening vans and regional assessment centres.

The inaugural Deakin-Coles Myer IT Scholarship for This initiative offers regional women the latest in new Women was launched with support from DOI. The digital mammography technology when screening scholarship is valued at $45,000 and was awarded for breast cancer. It will mean faster access to test to a talented young woman to undertake a two-year results and speeding up the time in which rural/ industry project. regional women can receive any necessary treatment.

Women’s Leadership Grants Program Vic ICT for Women Network DOI provides funds to support the Offi ce of Women’s As part of MMV’s commitment to supporting the local Policy – Women’s Leadership Grants Program ICT industry, the Vic ICT for Women Network was to support Indigenous women particularly in the launched in July 2005 by Minister Thomson. In the development of leadership skills. 12 months since its inception, the Network has grown to 180 members representing women in the ICT Forward priorities industry, government and education sectors.

People Management Development Program It aims to: Ongoing development and implementation of this • overcome the shortage of women in the ICT program will focus on building capabilities of staff with industry through practical programs designed to leadership and management responsibilities. Women attract and retain women in the fi eld are specifi cally invited to participate. The program enhances all skills relating to people management • encourage women to enter the ICT industry and includes information on: bullying and harassment, diversity, giving and receiving feedback and holding • retain women in the industry workplace conversations, understanding the critical role of staff/management relationships and all • enable these women to achieve their full aspects of people management. career potential.

Appendixes Whole-of-Government Reporting – Multicultural Affairs Whole-of-Government Reporting — Youth 298

Background • assisted the EastWork pre-employment program for youth with learning diffi culties at Caulfi eld, Respect: The Government’s Vision for Young People Glen Iris and Oakleigh by assisting participants to describes strategic directions for the Government’s study for and obtain their learner permit policies and programs for young people. Policy commitments and progress milestones are organised • hosted Regional Reference Groups that include around four themes: youth representatives to ensure their input into discussion around issues surrounding roads, Involvement transport, safety, registration and licensing. • To expand opportunities for young people’s real and active participation in their communities. Young Driver Safety and Graduated Licensing Scheme Learning and work A discussion paper and brochures on the Young • To develop sustainable pathways in education Driver Safety and Graduated Licensing Scheme and employment. were distributed to all Victorian secondary schools, TAFE institutes, universities, Local Learning and Support Employment Networks, Adult Community Education • To support positive health and wellbeing outcomes organisations and youth network providers.

Twenty-six consultation forums were held across Celebrate Victoria to consider views on the proposed graduated • To celebrate and promote young people’s licensing system following publication of the Young involvement in decision making and Driver Safety and Graduated Licensing Discussion community building. Paper. Two were specifi cally conducted for youth in conjunction with Youth Affairs Council of Victoria The information below outlines the main activities (YACVic) and a further presentation was made at a under way in DOI to support Victoria’s young people. forum on multicultural youth transport issues, hosted by the Centre for Multicultural Youth Issues. Key strategies and initiatives Issues in the Young Driver Safety and Graduated Involvement Licensing Discussion Paper were made available to Consultation youth through the arrive alive! website, TAC website, DOI aims to increase the number and diversity of Youth Central website and advertised in a range young people participating in the Government’s of youth press including Beat Magazine, Impress consultative mechanisms related to infrastructure. Magazine, Forte Magazine and MX. In 2005–06 VicRoads: Public transport services • held regional reference forums incorporating In 2005–06, the Government introduced a new bus diverse community representatives including service from Morwell Railway Station to university young people accommodation in Hazelwood, Monash University Churchill Campus and Churchill Shopping Centre. • assisted students with learning diffi culties from The service runs on Sunday evenings during Wesley Secondary College on a weekly basis university semesters. to obtain a learners permit and conducted an information session at the school for culturally and linguistically diverse youth

DOI ANNUAL REPORT 2005–06 299

Funds were provided to Bass Coast Shire to operate Bendigo counter-peak train services, with connecting a summer bus service between Cowes, Wonthaggi bus services to Latrobe University Bendigo Campus, and Inverloch in December 2005 and January Bendigo TAFE and Bendigo Hospital, commenced 2006. Following the success of this initiative, DOI is on 24 February 2006. Arriving in Bendigo at 8.15am considering making this a permanent service as part each morning from Southern Cross Station, the new of a package of new service initiatives to be rolled services enable TAFE, university and secondary out in Bass Coast Shire in 2006–07. Young people school students to access courses in Bendigo. represented an overwhelming majority of patrons during the six weeks of operation. Additional Ballarat Transit weekday, Friday night and Sunday bus services between Creswick to Ballarat The opening of Sherwood Park Station at Deakin commenced on 29 May 2006 enabling young people University Warrnambool Campus in February to get more frequent access to Ballarat for leisure, 2006 provided train services to students at Deakin education courses and work. University travelling to Geelong or Melbourne on a Friday evening, and returning to Warrnambool on a Additional Friday night bus services across the entire Sunday evening. The Government contributed almost Ballarat Transit network commenced on 2 June 2006, $1.1 million towards the construction of the new enabling young people to access leisure activities and Sherwood Park railway station and Deakin University evening work commitments. contributed $60,000. Horsham town bus services were upgraded by Additional Sunday bus services to Deakin University 150 per cent, including two new routes, from Waurn Ponds campus commenced on 23 April 2006, 29 January 2006, better enabling young people to providing hourly services and more direct routes access community activities and TAFE and University between Geelong City and Deakin University. of Ballarat Horsham Campus courses.

Ballarat counter-peak train services, with connecting Youth Public Transport Forum Trainlink bus services to Ballarat Hospital, Stockland On 29 July 2005, the Public Transport Division hosted Wendouree Shopping Centre and the University of a forum for young people and other stakeholders Ballarat, commenced on 23 January 2006. Arriving in to discuss issues for young people in using the Ballarat at 8.16am each morning from Southern Cross metropolitan public transport system, including Station, the new services enable TAFE, university enforcement issues, and identify possible strategies and secondary school students to access courses in for addressing them. Ballarat. Ballarat Transit bus services meet the new counter-peak trains to take university students to The forum was attended by 60–70 people, about Ballarat University. half of whom were young people aged between 14 and 19 years. The forum was supported by the Daylesford to Ballan and Mt Egerton to Ballan daily Offi ce for Youth, the Centre for Multicultural Youth return weekday bus services commenced on Issues, the Western Young People’s Independent 29 May 2006, meeting the counter-peak train Network and Metlink. services and Melbourne-bound services and enabling young people to access university, TAFE and leisure Learning and Work activities in both Melbourne and Ballarat. DOI Youth Employment Scheme DOI has in place a robust and successful Youth Employment Scheme (YES), which provided traineeships to 36 young people in 2005–06.

Appendixes Whole-of-Government Reporting – Youth 300

Youth employment at VicRoads Specialist Employment Program Through VicRoads graduate recruitment and VicRoads Eastern Region has employed a young development program, 55 new graduates were person with Asberger’s Syndrome to assist inducted at the end of the 2005 academic year. this individual in achieving certifi cation in offi ce Graduates undertake three, six-month learning and administration in partnership with Eastern Victoria development rotations in different parts of VicRoads Group Training. before obtaining established positions. Information and Communication Technology The program has been running since 1994 and The ‘Go Girl Go for IT’ initiative encourages VicRoads has retained over 70 per cent of all secondary school girls to consider pursuing careers graduates accepted into the program. in IT. The initiative is in response to the decline in the number of females studying IT at tertiary level and an VicRoads supports the Victorian Government Youth apparent lack of awareness among school girls of the Employment Scheme (YES), providing 20 places for opportunities presented by working in IT. YES trainees each year. The 2006 intake included seven Indigenous trainees. In addition, ICT Skills Scholarships facilitate partnerships between industry and the education VicRoads provides work experience for secondary sector by linking study with industry-based learning to and university students: help ICT students to graduate with the right skills for the workplace. Industry-based learning scholarships • Eastern Region placed 10 students in 2005–06 were developed between four Victorian universities to provide learning experience and some ongoing and seven businesses to support high quality employment (internships) in various functional students in gaining much-needed business skills areas throughout the region. and practical experience.

• Northern Region supports engineering students at Victoria’s research capacity in priority ICT areas Latrobe University through the employment of two was also boosted by 19 scholarship recipients from local students during school holidays. The students across fi ve Victorian universities who are sharing undertook various aspects of engineering and $1.1 million over the duration of their full-time masters received mentoring from experienced engineers. or PhD research.

• South Western Region provided work experience Support for a student who attended a school for students with learning diffi culties. VicRoads VicRoads supports local community youth-based • Western Region provided work experience for two road safety programs that seek to reduce the risk high school students and one university student. to novice drivers. The programs are based on A university student was also employed for three international and national evidence on measures months over the summer vacation period. effective in reducing crashes and other safety incidents involving this group of road users. • South East Metropolitan Region provided work experience for fi ve students. VicRoads provides extensive and comprehensive support programs to increase low-risk supervised • North West Metropolitan Region supports learner driving practice, including Keys Please vacation and work experience engineering sessions, the Getting There From Ls to Ps guide, students on short and long-term assignments. and The L Site interactive website.

DOI ANNUAL REPORT 2005–06 301

Other activities during 2005–06 included: Public transport DOI contributed $15,000 to the Vocational Education • including the used-car safety rating booklet and Training bus service network managed by the with the publication Getting There from Ls to Ps Wimmera Mallee Local Learning Education Network to provide information to young people on the for services from February to December 2006. safety ratings of used vehicles

• providing online practice learner permit Forward priorities test questions on its website as part of its ICT commitment to novice driver education and improving the safety of young drivers The next ‘Go Girl Go For IT’ event will take place at Deakin University in late 2006 and will include • attending the Monash University Gippsland a comprehensive program of workshops, an expo, Campus orientation week to speak to career information, bands, prizes and a fashion international students and isolated secondary parade. Approximately 1,200 Year 9, 10 and 11 girls students regarding Victorian road rules and from regional and metropolitan schools will attend obtaining a learner permit and driver licence the event. ‘Go Girl’ is hosted by the Vic ICT for Women Network and is partially sponsored by • supporting local community programs such as Multimedia Victoria. To fi nd out more, go to: Fit to Drive that use youth development principles www.vicictforwomen.com.au/www/html/ to explore young driver safety issues and reduce 160-about-go-girl-go-for-it.asp risky driving behaviours Learner driver awareness • piloting young driver programs in two A next step in the Graduated Licensing System is to municipalities as part of the Graduated Licensing prepare supporting material to enable the graduated System. The programs promote gaining 120 licensing system to commence in July 2007. hours of supervised driving practice and provide disadvantaged young people with opportunities A set of road safety teaching units focused on to gain such practice. developing literacy, numeracy and personal development skills contributing to the award of Keys Please promotes parent/learner partnerships the Victorian Certifi cate of Applied Learning (VCAL) to achieve 120 hours supervised driving practice will be provided online. This resource will help during the learner phase. More than 350 Keys VCAL providers focus on young driver safety issues. Please sessions were conducted at schools and community settings with around 21,000 young people Additional funds have been made available to increase participating (around 30 per cent of Year 10 students). the number of Keys Please sessions provided for young people and their parents/carers to promote the key message of 120 hours supervised practice before obtaining a licence.

Young driver safety review Victoria is participating in a national trial and evaluation of an educative/training approach involving young Victorian drivers.

Appendixes Whole-of-Government Reporting – Youth Legislation (administered as at 30 June 2006) 302

As at 30 June 2006, the following legislation was • confer powers on the SEITA, relating to land administered by the Minister for Transport, the required for/affected by the Project Minister for Major Projects, the Minister for Energy Industries and the Minister for Information and • provide procedures dealing with the interface Communication Technology. between utilities and the Freeway Corporation relating to utility infrastructure and the Project Acts administered by the • confer other powers on the Minister, Minister for Transport SEITA, the Freeway Corporation and others for the Project Border Railways Act 1922

This Act ratifi es an agreement between the States of • make certain consequential amendments to the Victoria and NSW as to the construction, maintenance Road Management Act 2004 and section 85 of and operation of railway lines and the construction the Constitution Act 1975. and maintenance of bridges across the Murray River. Land Act 1958 Chattel Securities Act 1987 In so far as it relates to the exercise of power relating Part 3 (the remaining provisions are administered by to the leases and licences under Subdivisions 1 and 2 the Minister for Consumer Affairs). This Act makes of Division 9 of Part 1 in respect of the land described provision for security interests in motor vehicles, as Allotment 18 of Section 12, City of Port Melbourne, trailers and vessels, including registration of interests. Parish of Melbourne South, being the land in Certifi ed Part 3 provides the registration requirements for Plan No. 119746 lodged in the Central Plan Offi ce of security interests. the Department of Sustainability and Environment, known as Station Pier. Crown Land (Reserves) Act 1978 Only in so far as it relates to the land shown as Crown (This Act is otherwise administered by the Attorney- Allotment 18, section 12, City of Port Melbourne, General, the Minister for Corrections, the Minister Parish of Melbourne South, as shown on Original for Finance, the Minister for Health and the Minister Plan No. 119746-A lodged in the Central Plan Offi ce for Planning.) — (LA/32/0012) known as Station Pier. Local Government Act 1989 (The remaining provisions are administered by the Clauses 4 and 9(3) of Schedule 11 and section 123, in Minister for Planning and the Minister for Finance.) so far as it relates to the revocation of local laws made pursuant to the powers conferred by those clauses by EastLink Project Act 2004 reason of section 207 of the Act. The main purposes of this Act are to: (This Act is otherwise administered by the Minister • empower the State to enter into an agreement for for Local Government and the Attorney-General.) the design, construction, operation, maintenance and management of the EastLink Freeway This Act provides generally for matters to do with local government in Victoria. The provisions administered • provide for the collection and enforcement of tolls by the Minister for Transport relate to traffi c control. relating to use of the Freeway

DOI ANNUAL REPORT 2005–06 303

Marine Act 1988 Port Services Act 1995 This Act establishes the Director of Marine Safety Except for sections 45-57, 59-63 and 119-123 and provides for the objects, powers and functions (these provisions are administered by the Minister for of the Director. In particular, the Director regulates Finance); and sections 25, 27-29, 96, 99-108, 124-125 marine safety through the exercise of its powers and all of Schedule 1 except clauses 4, 6(1) and (2) and functions. The Act also provides for registration (these provisions are administered by the Treasurer). of vessels, regulation of the operation of vessels, offences involving alcohol, prevention of pollution This Act establishes the POMC, POHC, and the of State waters, the adoption of certain international VRCA. The Act also provides for charges and conventions, enforcement of various offences through licensing for port use. the issue of marine infringement notices and for other matters. Public Transport Competition Act 1995 This Act provides for the accreditation of passenger Melbourne City Link Act 1995 bus operators and implements a system of service The Act ratifi es the Agreement for the Melbourne contracts for route service operations. City Link Project; gives the State certain powers in relation to land affected by the Project; gives the Link Rail Corporations Act 1996 Corporation certain powers in relation to roads in The main purpose of this Act is to establish VicTrack, the project area; and empowers the fi xing, charging the Southern Cross Station Authority and V/Line and collection of tolls in relation to the use of vehicles Passenger Corporation. It also provides a rail access in toll zones. regime, and confers certain powers on rail and tram operators. National Rail Corporation (Victoria) Act 1991 This Act approves and gives effect to an agreement Rail Safety Act 2006 made between the Commonwealth and the States of The Rail Safety Act provides for: rail safety Victoria, New South Wales, Queensland and Western accreditation based on a more rigorous assessment Australia relating to the establishment and operation and management of risks; introduction of specifi c of the National Rail Corporation Limited. performance-based safety duties for all rail industry participants; application of a hierarchy of safety Pollution of Waters by Oil and Noxious compliance requirements which will allow effective Substances Act 1986 and proportionate regulatory response to incidents Except for sections 30 and 47, which are jointly of non-compliance by accredited rail operators; and administered with the Minister for Environment, and organisational arrangements to defi ne the role and sections 8, 9, 10, 11, 12, 13, 18, 19, 20, 21, 22, 23, responsibilities of the Director, Public Transport Safety 23B, 23D, 23E, 23G, 23J, 23K, 23L and 24E, which as a statutory offi ce within DOI. are administered by the Minister for Environment. Road Management Act 2004 This Act provides for the protection of the sea The main purpose of this Act is to establish a new and other waters from pollution by oil and other statutory framework for the management of the noxious substances. road network, facilitating the coordination of various uses of road reserves for roadways, pathways, infrastructure and similar purposes.

Appendixes Legislation (administered as at 30 June 2006) 304

Road Safety Act 1986 Project Development and Construction This Act provides for the registration of motor Management Act 1994 vehicles, licensing of drivers, offences involving Parts 5 (except to the extent that it relates to the alcohol or other drugs and other provisions regulating exercise of powers and functions under Part 9A of the the operation and use of motor vehicles. Planning and Environment Act 1987), 5A and 8.

Southern and Eastern Integrated Transport (The remainder of the Act is administered by the Authority Act 2003 Premier, except Parts 4 and 7 and section 46, which The purposes of this Act are to establish SEITA and are administered by the Minister for Planning.) to facilitate the EastLink Project. This Act facilitates the delivery of infrastructure Transport Act 1983 projects in Victoria and establishes the Secretary to DOI as a body corporate. This Act establishes and sets out the functions and powers of DOI in relation to transport matters, and Victorian Urban Development Authority Act 2003 those of the Roads Corporation. The Act provides This Act establishes VicUrban. The Authority takes for the licensing of commercial vehicles and for over the functions and powers of the former Urban various offences. The Act also deals with aspects and Regional Land Corporation and the former of rail safety. Docklands Authority to develop land in Victoria. Very Fast Train (Route Investigation) Act 1989 The purpose of this Act is to facilitate the investigation Acts administered by the of a route for a very fast train linking Melbourne with Minister for Energy Industries other centres within or outside the State. Electricity Industry Act 2000 Westernport (Crib Point Terminal) Act 1963 This Act regulates the Victorian electricity supply This Act assists the development and operation of industry. The Act requires persons who generate, a petroleum terminal at Crib Point by providing for transmit, distribute, supply or sell electricity to obtain certain existing and new easements, and clarifying a licence from the Essential Services Commission the status of existing agreements relating to the (ESC), or a licence exemption. Key provisions include a pipeline running from the terminal site to Dandenong. consumer safety net for domestic and small business customers in the transition to effective retail competition.

Acts administered by the Electricity Safety Act 1998 Minister for Major Projects This Act regulates the safety of electricity supply and use Docklands Act 1991 in Victoria, and the effi ciency of electrical equipment. Energy Safe Victoria is the regulator for these purposes. The purpose of this Act is to facilitate the development of the docklands area. The Act establishes the powers Energy Safe Victoria Act 2005 and functions of the Victorian Urban Development This Act establishes Energy Safe Victoria as the Authority in relation to the docklands area. authority responsible for the safety of electricity and gas supply and use in Victoria.

DOI ANNUAL REPORT 2005–06 305

Fuel Emergency Act 1977 the Commonwealth in meeting its international This Act sets out Ministerial powers to preserve nuclear non-proliferation objectives. and allocate fuel supplies during proclaimed fuel emergencies. State Electricity Commission Act 1958 Section 107. (This Act is otherwise administered by Gas Industry Act 2001 the Treasurer.) Section 107 preserves the electricity This Act regulates the Victorian gas industry. The Act theft and tampering provisions in the Electricity Light requires persons who distribute or sell gas to obtain and Power Act 1958. a licence from the ESC, or a licence exemption. The Act continues VENCorp, the independent system Acts administered by the operator for the Victorian gas wholesale market. Key Minister for Information and provisions include a consumer safety net for domestic Communication Technology and small business customers in the transition to effective retail competition. There are no Acts currently administered by this Minister. Gas Pipelines Access (Victoria) Act 1998 This Act provides for the regulation of third-party Acts passed during 2005–06 access to natural gas pipeline systems. The Act is part of a national scheme which gives effect to the Minister for Transport National Third Party Access Code for Natural Gas Rail Safety Act 2006 Pipeline Systems. The ‘lead legislation’ is the Gas Pipelines Access (South Australia) Act 1997. Road Safety and Other Acts (Vehicle Impoundment and Other Amendments) Act 2005 Gas Safety Act 1997 Road Safety (Drugs) Act 2006 This Act regulates the safety of gas supply and use in Victoria. Energy Safe Victoria is the regulator Transport Legislation (Further Miscellaneous for these purposes. Amendments) Act 2005

Transport Legislation (Safety Investigations) Act 2006 National Electricity (Victoria) Act 2005 This Act regulates the national electricity market Minister for Major Projects and replaces the National Electricity (Victoria) Act Victorian Urban Development Authority (Amendment) 1997. The Act is part of a national scheme which Act 2006 gives effect to the National Electricity Law. The ‘lead legislation’ is the National Electricity (South Australia) Minister for Energy Industries Act 1996. Energy Legislation (Miscellaneous Amendments) Act 2006 Nuclear Activities (Prohibitions) Act 1983 Energy Safe Victoria Act 2005 This Act prohibits uranium mining in Victoria, and the construction or operation of certain nuclear Minister for Information and facilities in Victoria, including nuclear reactors and Communication Technology nuclear power reactors. The Act also regulates the possession of certain nuclear materials, and assists No Acts passed during 2005–06.

Appendixes Legislation (administered as at 30 June 2006) Whistleblowers Protection Act 2001 306

The report pursuant to section 104 of the This is the disclosure referred to above. Whistleblowers Protection Act 2001 for the year 1 July 2005 to 30 June 2006 is as follows: • The number and types of disclosed matters that were substantiated on investigation • The number and types of disclosures and the action taken on completion of the made to DOI: 1 investigation: nil

The disclosure was incorrectly made to DOI The two matters referred to in the 2004–2005 and related to conduct of public offi cers of Annual Report as being investigated by the another public body. Ombudsman have been fi nalised by that Offi ce.

• The number of disclosures referred by DOI to the Ombudsman (to determine whether they are public interest disclosures): 1

This is the disclosure referred to above.

• The number and types of disclosed matters referred to DOI by the Ombudsman: nil

• The number and types of disclosed matters referred by DOI to the Ombudsman to investigate: 1

• The number and types of disclosed matters taken over by the Ombudsman from DOI: nil

• The number of requests by complainants to have their disclosed matters investigated by the Ombudsman due to their dissatisfaction with the way DOI is investigating the matter (the circumstances are set out in section 74 of the Act): nil

• The number and types of disclosed matters that DOI has declined to investigate: 1

DOI ANNUAL REPORT 2005–06 307 Freedom of Information

The Freedom of Information Act 1982 gives the public a right of access to documents held by government departments.

For the period 2005–06, DOI received 400 applications. Of these requests, 69 were from Members of Parliament, 26 from the media and the remainder were from the general public. Of the total requests received by DOI, 10 went to internal review, with six progressing to the appeal stage at the Victorian Civil and Administrative Tribunal.

Access to documents (as defi ned in section 5 of the Act) may only be obtained through written request as detailed in section 17 of the Freedom of Information Act 1982, addressed to:

Freedom of Information Manager Department of Infrastructure PO Box 2797 Melbourne, Victoria 3001

Telephone: (03) 9655 6380 Email: [email protected]

Appendixes Freedom of Information Victorian Industry Participation Policy 308

In October 2003, the Victorian Parliament passed • the whole-of-government panel for the purchase the Victorian Industry Participation Policy Act 2003 of personal computers and notebooks will which requires public bodies and departments to include the establishment of new IT testing report on the implementation of the Victorian Industry facilities, the development of training programs Participation Policy (VIPP). Departments and public to transfer to government departments and bodies are required to apply VIPP in all tenders over educational institutions, and provide regional $3 million in metropolitan Melbourne and $1 million in IT support centres regional Victoria. • the Melbourne Recital Centre and Melbourne During 2005–06, DOI commenced 12 contracts to Theatre Company project will provide a number which the VIPP applied. Their total value was of industry-based training programs and the $139 million. opportunity for apprentice employment.

The VIPP commitments by contractors under these There was one project completed in this period to contracts included: which the VIPP applied:

• an overall level of local content of Vermont South Tram Extension approximately 60 per cent • The value of this contract was $25,516,522. • 990 full time equivalent jobs. • The 80 per cent level of local content committed In addition, the following benefi ts to the Victorian was achieved. economy in terms of skills and technology transfer were provided by contractors under these contracts: • Of the 62 full-time equivalent jobs committed, 65 full time positions were actually achieved. • training of workers in rail operations • The safety training for both new and existing • training of junior engineers to equip them with employees in rail safety awareness, the training management techniques to deliver civil/rail of tram operators, and on the job training infrastructure projects for concrete placement, plant operators and aluminothermic welding were all achieved. • up-skilling local engineering staff to alleviate the diminishing pool of qualifi ed senior rail signalling engineers

• the development of new technology (a vigilance control and event recording system) which will be deployed on metropolitan trains. This new innovation and technology will be developed in Victoria and export opportunities pursued

DOI ANNUAL REPORT 2005–06 309 National Competition Policy Compliance

National Competition Policy Building Act Compliance In 1995, all Australian Governments (Federal, State and Territory) agreed to review and, where The Directions of the Minister for Finance require this appropriate, reform all existing legislative restrictions Annual Report to include a statement on the extent on competition. of compliance with the building and maintenance provisions of the Building Act 1993, for publicly- The principal component of National Competition owned buildings controlled by DOI. Policy — the review and reform of Commonwealth, State and Territory legislation with respect to DOI does comply with the building and maintenance restrictions on competition — concluded at the end of provisions of the Building Act 1993. the 2004–05 fi nancial year, after a 10 year period.

National Reform Agenda

At its 10 February 2006 meeting, the Council of Australian Governments (COAG) agreed to a new National Reform Agenda (NRA), and a COAG Reform Council is to be established to replace the National Competition Council. Under the NRA, States are required to make progress in the areas of energy and transport reforms and in introducing ‘gatekeeping’ arrangements so that they do not re- introduce restrictions on competition.

The NRA is to be supported by Intergovernmental Action Plans to be agreed with COAG. DOI has been participating in aspects of transport reviews that were initiated as part of the NRA. For example, DOI has made a submission to the Productivity Commission’s review of road and rail pricing, and continues to work with other jurisdictions to complete the revision of national guidelines for project appraisal and to harmonise rail and road regulation.

Appendixes National Competition Policy Compliance Disclosure of Major Contracts Compliance 310

DOI has disclosed all contracts greater than $10 million in value which it entered into in 2005–2006.

The disclosed contracts can be viewed at www.tenders.vic.gov.au

Consultancies

The following table lists the consultants engaged in 2005–2006 where the cost of the engagement was $100,000 or greater.

Total approved Expenditure Future project fee 2005–06 expenditure Consultant Project ($) ($) ($) Booze Allen & Hamilton(Australia) Country Taxi Review 251,909 162,494 89,415 The study into the advanced Charles River Associates communication functionality of (Asia Pacifi c) Pty. Ltd. interval meters 400,000 400,000* 0 L.E.K Consulting Country Taxi Review 128,446 34,277 0** Development of a business case PA Consulting for eScience in DPI 368,230 368,230 0 Research into the potential impact of China on the ICT Terranovate Group Pty. Ltd. industry 203,500 104,500 99,000 The Allen Consulting Group Review of VENCorp 230,400 69,120 161,280

* Of the expenditure amount of $400,000, $200,000 was funded by an external consortium. ** L.E.K’s consultancy work was terminated and there will be no further monies paid to L.E.K Consulting.

In addition, a further 17 consultancies where the total fee payable to the consultant was less than $100,000 were engaged during the fi nancial year at a total approved project fee of $726,987 and an expenditure of $446,730.

DOI ANNUAL REPORT 2005–06 311 Major Publications

Marine Safety Transport Safety Net — October 2005, February 2006

Port of Melbourne Supply Chain Model Victorian Recreational Boating Safety Handbook Meeting Our Transport Challenges Information and TravelSmart Year in Review Communication Technology TravelSmart Newsletter — Spring 2005, Victorian Government ICT Industry Plan 2005–2010 Summer 2006 Connecting Victoria Magazine 20, 21, 22, 23 Public Transport Event Impact Kit for Event Organisers ICT Skills Snapshot

Regulatory Impact Statement for Taxi-Cab Licences Regional Development Spend and Demand reports

Fares and Ticketing Manual 05/06 Corporate Track Record — issues 24, 25, 26 DOI Annual Report 2004–2005

Major Projects DOI Corporate Plan 2005–2008

Building One Victoria Magazine — issues 1, 2, 3, 4

Major Projects Corporate Profi le

Melbourne Convention Centre Redevelopment News

Appendixes Major Publications Information available on request 312

The directions of the Minister for Finance, pursuant • details of overseas visits, including a summary to the Financial Management Act 1994 require a of the objectives and outcomes of each visit range of information to be prepared in relation to the fi nancial year. • details of major promotional, public relations and marketing activities undertaken by DOI to This material is itemised below and, where develop community awareness of DOI and the not published in this report, is retained by the services it provides Accountable Offi cer and can be made available to Ministers, Members of Parliament and the public • details of assessments and measures on request, subject to the limitations of the Freedom undertaken to improve the occupational health of Information Act 1982. and safety of employees

• declarations of pecuniary interests completed • a general statement on industrial relations within by all relevant DOI offi cers for the year ended DOI and details of time lost through industrial 30 June 2006 accidents and disputes

• details of shares held by senior offi cers as • a list of major committees sponsored by DOI, nominees or held benefi cially in a statutory the purpose of each committee and the extent authority or subsidiary to which the purpose has been achieved.

• details of publications produced by DOI and Requests for information should be directed to: where the publications can be obtained Shelley Marcus • details of changes in prices, fees, charges, Director rates and levies charged by DOI Executive and Legal Department of Infrastructure • details of major external reviews carried PO Box 2797 out on DOI Melbourne Victoria Australia 3001 • details of major research and development activities undertaken by DOI

DOI ANNUAL REPORT 2005–06 313 Disclosure Index

The Annual Report of the Department of Infrastructure is prepared in accordance with all relevant Victorian legislations. This index has been prepared to facilitate identifi cation of the Department’s compliance with statutory disclosure requirements.

Ministerial Directions

Legislation Requirement Page reference

Report of Operations

Charter and purpose FRD 22A Manner of establishment and the relevant Ministers 4–7, 160 FRD 22A Objectives, functions, powers and duties 2–10, 166–167 FRD 22A Nature and range of services provided 4–9, 12–14

Management and structure FRD 22A Organisational structure 8–10

Financial and other information Operational and budgetary objectives and performance FRD 22A against objectives viii–xvi, 19–148, 257–279 FRD 22A Statement of workforce data and merit and equity 247–250 FRD 22A Occupational health and safety 249 FRD 15A Executive offi cer disclosures 247–248, 196 FRD 22A Summary of the fi nancial results for the year 19–20 FRD 22A Signifi cant changes in fi nancial position during the year 19–20 FRD 22A Subsequent events 226 Application and operation of Freedom of Information FRD 22A Act 1982 307 Compliance with building and maintenance provisions FRD 22A of Building Act 1993 309 FRD 25 Victorian Industry Participation Policy disclosures 308 FRD 22A Statement of National Competition Policy 309 Application and operation of the Whistleblowers FRD 22A Protection Act 2001 306 FRD 22A Details of consultancies over $100,000 310 FRD 22A Details of consultancies under $100,000 310 FRD 12A Disclosure of major contracts 310 FRD 24A Reporting of offi ce-based environmental impacts 281–283 FRD 22A Statement of availability of other information 312 FRD 10 Disclosure index 313–314 FRD 8A Budget portfolio outcomes 252–256

Appendixes Disclosure Index 314

Ministerial Directions

Legislation Requirement Page reference

Financial Statements

Financial statements required under Part 7 of the FMA SD 4.2(f) Financial statements 150–226 SD 4.2(b) Operating statement 154 SD 4.2(b) Balance sheet 155 SD 4.2(a) Statement of recognised income and expense 156 SD 4.2(b) Cash fl ow statement 157 SD 4.2(c) Accountable offi cer’s declaration 152 Compliance with Australian accounting standards SD 4.2(c) and other authoritative pronouncements 159–165 SD 4.2(c) Compliance with Ministerial Directions 159 SD 4.2(d) Rounding of amounts 165

Other disclosures in notes to the fi nancial statements FRD 13 Disclosure of parliamentary appropriations 179–180 Departmental disclosure of administered assets FRD 9A and liabilities 212–217 FRD 21A Responsible person and executive offi cer disclosures 195

DOI ANNUAL REPORT 2005–06 315 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 2797 Melbourne Victoria Australia 3001

Appendixes DOI Contact Information