department ofinfrastructure 98 99 98 department of infrastructureannual annual 99 report report 98 department99 of infrastructure annual report 28 October 1999
The Hon. John Thwaites MLA Minister for Planning
The Hon. Peter Batchelor MLA Minister for Transport
The Hon. Candy Broad MLC Minister for Ports
The Hon. Bob Cameron MLA Minister for Local Government Minister assisting the Minister for Transport regarding Roads
The Hon. Justin Madden MLC Minister assisting the Minister for Planning
80 Collins Street Melbourne 3000 www.doi.vic.gov.au
Dear Ministers,
Annual Report
In accordance with the provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Infrastructure Annual Report for the year ended 30 June 1999.
Yours sincerely
David Berry Acting Secretary © Department of Infrastructure Department of Infrastructure ISSN CONTENTS
Secretary’s Foreword 3
Organisational Structure 5
Executive Committee 6
Organisational Profile 8
Year at a Glance 10
Chief Finance Officer’s Executive Analysis 12
Strategic Planning 13
Major Projects 22
Public Transport 27
Transport Safety 37
Road System Management and Delivery 39
Planning, Heritage and Market Information 45
Organisational Activities 53
Statutory Authorities and Other Bodies 69
Summary of Financial Results 83
Financial Statements 85
Appendixes 123 SECRETARY’S FOREWORD
The Department of Infrastructure (DOI) was • creation of systems, structures and created in April 1996. DOI capabilities, tools capabilities to effectively manage the and structure in the subsequent three franchising of public transport services. years have evolved rapidly to meet the DOI staff have provided active support unpredictable but invariably urgent demands to the Transport Reform Unit in the of government. franchising process
We are steadily building an integrated • completion of the first set of approach to infrastructure and land-use comprehensive local government planning and management. We have performance comparisons, and the assembled a core of high-calibre executive, beginning of a new approach to the professional and technical staff, and maintain oversight of local government Dr John Paterson an exciting internal climate by probing the • the implementation of the planning boundaries of scientific and policy thought in system reforms started in 1996 is fields applicable to our mission. nearing completion and, in partnership
We have achieved all of the major objectives with the central agencies, we are taking that the Government has set for us, as well a closer look at issues of competition as making progress on other, more ambitious policy and the planning framework. goals we have set for ourselves. Appropriate measures could improve Victoria’s position in terms of both MAJOR HIGHLIGHTS quality of environment and competitiveness. Highlights of the past financial year include:
• effective project management of major Since 1995–96, the business of infrastructure civic projects including Docklands, agencies has been dramatically transformed. Jolimont and Federation Square, and the Following the franchising of the public Sports and Entertainment Precinct transport system later in 1999, more than 90 per cent of DOI’s budget will be delivered • creating a critical evaluation regime for through external parties. Staffing of DOI new investment projects to support agencies will be down by 80 per cent relative government decision-making to the early 1990s. This has been achieved • early progress on a robust, longer-term mainly through the franchising of public approach to integrated land-use and transport, and the ongoing re-profiling of transport planning that will also deliver VicRoads. DOI ’s own core staff has declined a new Metropolitan Development by a net 17 per cent since its creation in Strategy to 2015 1996; this would have been greater had the residual functions of privatised bodies not been picked up. CHALLENGES AHEAD be introduced. Statute law revision could usefully widen the overly narrow A new collaborative business model and the specification of objectives of the tools and capabilities that support it will Melbourne Ports Corporation enable DOI to tackle some of the more challenging tasks for the future. These • evaluation of demand management include: strategies for roads will be undertaken to meet growing congestion and • online information links with local investment pressures government to address ‘compliance’ Finalisation of the Metropolitan Strategy is one of the many and reporting, but will also enable • the outcomes of national competition challenges ahead information sharing for improved reviews of regulatory regimes will be interworking in planning, roads and applied to the bus, taxi and hire car and other fields accident towing industries • coordination of Year 2000 issues DOI now has the necessary infrastructure, between operators and all DOI agencies tools, capabilities and capacity to meet • an emerging priority is the need to review the existing legislative base for these challenges land use and transport within a framework that actively promotes • communication between the Office of effectiveness and efficiency of the Director of Public Transport and the regulation. franchisees will require open links and All of the tasks ahead hinge on strong data flows as part of the contractual relationships within government and with arrangements. These systems will need external stakeholders and suppliers. DOI now to be extended to include contracted has the necessary infrastructure, tools, route and school bus operators capabilities and capacity to meet these • further development and finalisation of challenges. the Metropolitan Strategy will address broader infrastructure requirements of sewerage and drainage and an increased focus on the major suburban centres Dr John Paterson • building on the Rural and Regional Strategy, increasing our presence in Secretary regional offices and strengthening Department of Infrastructure relationships with local government
• with the transfer of responsibilities for ports from the Department of Treasury and Finance, a national perspective will
DEPARTMENT OF INFRASTRUCTURE 4 ORGANISATIONAL STRUCTURE
AS AT 30 JUNE 1999
Ministers Infrastructure Committee of Cabinet Hon. Robert Maclellan MLA Hon. Robin Cooper MLA Hon. Geoff Craige MLC Minister for Planning and Local Government Minister for Transport Minister for Roads and Ports
Secretary Secretary Department of Infrastructure Dr John Paterson Portfolio Coordination Internal Audit Executive Services Freedom of Information
Divisions
Planning, Heritage and Public Transport Organisational Corporate Finance Strategic Planning Market Information John Taylor Development Jon Hickman John McMillan Sue Jaquinot Bob McDonald David Berry
Heritage Transport Contracts Victorian Corporate Planning and Budget Monitoring Strategy Ports Industry Local Government Projects Land Monitoring - Route Buses Taxis and and Reporting Development and Marine - Policy Tow Corporate Public Affairs Policy Advice Services Planning - School Buses Corporate Financial Infrastructure - Operations Trucks Corporate Services Management Planning and Urban Design - Private Rail Information Technology Program Monitoring Project Information and Research - Interstate Rail Development InfraLib and Reporting Public Transport Policy Public Legal and Legislation Financial Systems Public Consultation Transport Human Resources Accounting Planning Accessible Transport Operations Management Transport Policy Transport Heritage Human Resources Financial Planning and Economics Public Transport DevelopmentLocal Government and Analysis Safety Personnel Administration and Corporate Services Online 2001 Data Modelling Corporate Information Management Contracting Services
Architects Registration Public Transport VicRoads Victoria Board of Victoria Corporation Marine Grants Building Control Hillside Trains Board Commission Commission Bayside Trains Building Advisory Council Swanston Trams Building Appeals Board Yarra Trams Building Practitioners Board V/line Passenger Building Regulations Infrastructure Agencies Victorian Rail Track Advisory Committee Corporation Docklands Authority Heritage Council Melbourne City Link Authority Plumbing Industry Board Urban Land Corporation
Regions Incorporating Plannng, Local Government, Transport and VicRoads North Western South Western North Eastern Northern South Eastern Metropolitan, Eastern Metropolitan, Western EXECUTIVE COMMITTEE
Dr John Paterson, Sue Jaquinot, David Berry, Jon Hickman, Bob McDonald, John Taylor, Prue Digby, John McMillan
Dr John Paterson, Secretary The Secretary supplements and reinforces the Key corporate strategies and projects include: work of DOI portfolio agencies and ensures Y2K readiness, Online 2001, Victorian The Secretary leads DOI in enhancing and the coordination of effort across the Electronic Records System (VERS), Land Use implementing government policy for portfolios. He also maintains appropriate Profiler and Knowledge Management, infrastructure planning, investment and external relationships with customers, including development and upkeep of DOI's delivery in Victoria. industry and professional bodies, education intranet-INFRAWEB. The Secretary supports the aims of and training institutions and private David Berry, Deputy Secretary, government in all administration and policy- infrastructure developers. Strategic Planning making and ensures that infrastructure John Paterson has also focused on programs are integrated with those of other David Berry is responsible for the Strategic developing a rounded regional presence for government departments. Planning Division. The Division leads strategic DOI, providing both direct services as well as planning across the Department and has Key aspects of the role include: the provision representational and developmental functions responsibility for the Local Government of advice to Ministers; support for Cabinet of government, and has initiated innovative Branch and the South-Eastern Metropolitan processes, including inter-departmental urban development modelling projects to office. Projects and services undertaken by integration of policy-making; contribution to support infrastructure and planning the Division include the integration of constructive relationships between central decision-making. strategic land use, transport planning, roads agencies and line departments and working Sue Jaquinot, Deputy Secretary and ports planning, the integrated evaluation with other departments and the State Organisational Development of capital works proposals and support for Coordination and Management Council to the continuous improvement of local support whole-of-government approaches to Sue Jaquinot is responsible for Human government. The Division also coordinates significant issues. In particular, John has been Resource Management, Information interagency project management across leading whole-of-government initiatives on Technology and Telecommunications, the Department. electronic records management and archival Information Management, Corporate and systems. Business Planning, Public Affairs, Legal and Legislative Services, Contract Services, Infralib, and Corporate Support functions. She has corporate responsibility for the North East Region, providing an integrated infrastructure service.
ANNUAL REPORT 1998-99 6 Jon Hickman, Deputy Secretary, Review Committee, budget and financial Prue Digby, Executive Director, Planning, Heritage and Market monitoring including capital budgeting, Local Government Branch Information budget negotiations, output costings and Prue Digby has recently been appointed to analysis, and the coordination of financial Jon Hickman heads the Planning, Heritage DOI with responsiblity for the Local information with DOI agencies. and Market Information Division, which Government Branch. The Branch's functions provides policy direction and sets statutory The Division maintains and develops DOI’s are to promote an effective system of local controls for planning, heritage, building and financial management systems within DOI’s government by supporting and advising the development, manages programs directed IT environment and provides a full range of Minister for Local Government. The Branch is towards enhancing urban form and Victoria’s financial and accounting operation services. also working in partnership with councils, heritage, provides market-related information peak sector organisations, other government John Taylor, Director of Public Transport to the building development sector, assesses departments, unions and community groups the effects of development on the John Taylor is the Director of Public Transport, in supporting and encouraging best practice environment, provides advice to government responsible within DOI for all aspects of and continuous improvements in local on building industry issues, provides Victoria’s public transport system – trains, governance and service delivery. In addition, electronic geographical and mapping services trams, buses, taxis and tow-trucks. John Prue has corporate responsibility for the related to land-use planning, and ensures heads the Office of the Director of Public Western Region of DOI. probity in government real estate Transport (ODPT), which is gearing up to John McMillan, Deputy Director of transactions. meet the challenges associated with Public Transport successfully managing the franchised public Bob McDonald, Chief Finance Officer transport services. As Deputy Director of Public Transport, John The Corporate Finance Division manages a McMillan provides advice and assistance to One of ODPT’s core functions is the range of financial operations including the Director on the public transport industry management of the Government’s contracts financial analysis of major initiatives, budget generally and, in particular, is the key with public transport operators, but it has a operations, financial systems and financial executive responsible for Victoria’s bus, taxi, much wider responsibility – providing accounting operations. hirecar and tow-truck industries and public leadership and coordination across the whole transport safety. The Division is responsible for the preparation public transport industry. of the annual budget, monthly reporting, submissions to the Budget and Expenditure ORGANISATIONAL PROFILE
MISSION CORPORATE STRATEGIES
The purpose of DOI is to: DOI’s corporate strategies provide the
Contribute to continuing improvement in platform for policy and operations.
Victoria’s competitiveness, quality of life, To address the key challenges over the longer employment and business growth through term, DOI and its agencies made a strong integration, development and management of commitment to focus on eight issues at the planning, roads, transport, ports, major corporate level: projects, building and local governance. • integrated outputs Collectively, DOI provides development of major transport and land-use projects and • planning reform
improved strategic planning for Victoria’s • transport reform future land-use, transport and civic facilities. • national agenda The core DOI role is to provide the • adequacy of infrastructure assets mechanisms for strategic planning, and services coordination and integration of projects and • performance management for the sharing of key capabilities, knowledge and expertise. • organisational relationships
• organisational capabilities.
Contribute to continuing improvement in DIVISIONAL PROFILE
Victoria’s competitiveness, quality of life, DOI is structured into the following five employment and business growth divisions: • Strategic Planning
• Public Transport DOI supports the three ministerial portfolios of Planning and Local Government, • Planning, Heritage and Market Transport, and Roads and Ports. In addition Information to its coordination and corporate role, DOI • Organisational Development also has specific areas of responsibility. These • Corporate Finance. include evaluation and analysis of infrastructure investment, land-use planning, Organisational arrangements within DOI have heritage, urban design, local government, recently been reconfigured to address major civic projects, transport and emerging demands. The Local Government infrastructure strategic planning, public Branch was transferred to the Strategic transport, ports industry and transport safety Planning Division, to build more positive and regulation. relationships with local government through emphasis on shared initiative rather than administrative oversight.
DEPARTMENT OF INFRASTRUCTURE 8 We have had considerable involvement in facilitating major projects of State and regional significance, like the revitalisation of the Geelong Waterfront and Steampacket Place Kim McGough precinct
KIM MC GOUGH REGIONALISATION The focus on regionalisation is contributing SOUTH WESTERN REGION OFFICE MANAGER DOI has seven regional offices: to the integration of DOI activities, ensuring that emerging infrastructure and planning • Eastern (Traralgon) issues are addressed at a local level and that • North Eastern (Benalla) clients have improved access to services and Since the finalisation of the ports reform • North West Metropolitan (Sunshine) speedier decision-making. Regionalisation is process by the Department of Treasury and also improving support to local government • Northern (Bendigo) Finance, the strategic planning and in each region, with DOI and VicRoads • South Eastern Metropolitan (Burwood) performance monitoring processes for ports regional staff working together to provide have been transferred from the Treasurer to • South Western (Geelong) coordinated advice and services. DOI portfolio agencies provide a range of the Minister for Roads and Ports. • Western (Ballarat). transport, building, land development and A new Division (Office of the Director of The co-location of planning, local regulatory services, extending from VicRoads Public Transport) has been established to government and public transport staff in the and the Docklands Authority to smaller manage the ongoing franchise and VicRoads offices has provided considerable regulatory bodies and agencies. infrastructure lease arrangements with the benefits in terms of joint approaches to successful bidders for the passenger rail and regional issues and integrated strategic land- STATUTORY AUTHORITIES tram businesses. New tasks are associated use and transport planning. with implementing the Operational The infrastructure statutory authorities A strong regional focus for the delivery of include: Performance Regime, Revenue Clearing House services and a devolution of decision-making and added-value services, such as further • Architects Registration Board is giving improved access and quality of development of www.victrip.vic.gov.au, and • Building Control Commission service for DOI stakeholders and clients. accessible public transport. These, together A single regional manager was recently • Docklands Authority with national transport issues and regulatory appointed in each of the regions, reporting • Heritage Council activities for taxicabs and accident towing, directly to the deputy secretary responsible represent a significant challenge for the new • Marine Board of Victoria for the region. Director of Public Transport. • Melbourne City Link Authority The regional managers are responsible for The Contracts, Regulation and Compliance • Melbourne Port Corporation the delivery of planning, local government, Services Division has been dismantled and its heritage, building and development, and • Plumbing Industry Commission marine responsibilities have been transferred public transport contract services. to the Strategic Planning Division while its • Public Transport Corporation residual public transport responsibilities, The development of policy and management • Urban Land Corporation including contracted bus and coach services of Statewide issues continues to be • Roads Corporation (VicRoads) and public transport safety, have been undertaken in the central office of DOI in • Victorian Channels Authority. absorbed within the Public Transport Division. Collins Street, Melbourne. YEAR AT A GLANCE
OBJECTIVES PRIORITIES
• Manage and improve Victoria’s roads, • Coordination of the development of ports and-use systems infrastructure with land-use development to provide a long-term • Support the continuous improvement of framework and sound basis for local government investment decision-making • Provide a world-class public transport • Delivery of integrated built-form service at reduced cost to the taxpayer infrastructure strategies for metropolitan • Achieve 50 per cent patronage growth Melbourne, regional Victoria, key in public transport over 15 years precincts and corridors • Provide responsive management of • Integration of planning and planning, building and environmental coordination of multi-agency public frameworks and regulations that development projects deliver simplified, streamlined and • Develop integrated capital programs consistent planning based on broad strategies and uniform • Provide efficient provision, restoration investment evaluation and maintenance of built-form • Work in partnership with councils and infrastructure and new civic facilities local government associations to • Improve transport safety to reduce the ensure the effective and efficient frequency, severity and cost to the delivery of local government services to community of accidents and incidents City Link's new Bolte Bridge Victorian communities • Develop a collaborative organisational • To privatise the public transport services, culture and organisational capabilities including specification of minimum that promote innovation, learning, good service levels, maintenance of safety human resources, knowledge standards and transfer of risk to the management, reporting and financial private operators processes to support business needs. • Efficiently manage transport service delivery by supervising contracts with private operators and with the five passenger business corporations
• Ensure the multi-operator environment public transport services are seamless, integrated and responsive to changing needs
• Provide greater clarity for landowners and property developers and reduce the need for planning scheme amendments
ANNUAL REPORT 1998-99 10 The Immigration Museum
• Champion the use of design in the • A performance management system for • New contract arrangements with development of Victoria’s urban places local government has been completed country and school bus service operator and implemented in all municipalities were finalised • Provide up-to-date demographic data to ensure informed development markets • The Local Government Infrastructure • 43 of 81 new-format planning schemes Study has been completed and is about have been approved. All new planning • Allow property owners and residents to be released schemes are expected to be in place in greater involvement in local planning 12 months outcomes • The Melbourne City Link Authority completed the Western Link, the • A set of nine VPP Practice Notes, eight • Develop online business services and International Gateway and opened the Good Design Guide Practice Notes, and information by 2001 Bolte Bridge two General Practice Notes were issued • Improve systems for the coordination • The Immigration and Hellenic • A new set of population projections and sharing of information and Antiquities Museums opened were completed. These are based on the expertise between staff and 1996 census, which estimates Victoria’s infrastructure agencies. • Construction of the Federation Square population by local government area to deck, Multi Purpose Venue at the year 2021 KEY ACHIEVEMENTS Melbourne Park and the upgrade to the • The Victorian Cruise Shipping Strategy Sydney Myer Music Bowl began • In conjunction with major building industry associations, a revised Victorian was launched by the Government in • Construction began in November on Code of Practice for the Building and February 1999 Docklands’ first residential development Construction Industry was released • The Rural and Regional Strategy was and pedestrian and road bridges released in June 1999 commenced, linking the city and the • Integration of DOI functions in regional Colonial Stadium offices has meant that emerging • Regional Action Plans were produced by planning and infrastructure issues are the Regional Forums and released in • In association with the Transport Reform addressed at a local level and that June 1999 Unit, the franchise contracts to private clients have better access to information operators for the metropolitan train • Studies have commenced to identify key and services and tram passenger services, country issues influencing the development of train services and the freight business • National recognition for innovative staff Melbourne, providing the basis for the were awarded training and development was achieved Metropolitan Strategic Framework with DOI named Public Enterprise • Performance monitoring and reporting • The Airport Rail Link amendment was Employer of the Year at the Victorian mechanisms for the new public placed on exhibition in December 1998 Training Awards 1998 transport contracts were developed for an express route to the Airport. Panel hearings were completed in June 1999 CHIEF FINANCE OFFICER’S EXECUTIVE ANALYSIS
The 1998-99 financial year heralded the attributable to Infrastructure agencies (that is introduction of the next phase of financial Vicroads, Melbourne City Link Authority) and management reforms for Victorian budget government expenses relating to the sector agencies which included: government-owned rail corporations
• the adoption of accrual accounting for (formerly the business units of the Public budgeting purposes; and Transport Corporation).
• the introduction of output The above agencies will continue to produce management. their own audited financial statements, which, however, have been eliminated in the Under these reforms government revenue is compilation of the State of Victoria’s Annual distributed to departments based on outputs Financial Statements. Bob McDonald delivered in accordance with budgeted targets. Departments, through Ministers and The other material change relates to the CEOs, are accountable to government for reclassification of Commonwealth financial the provision of outputs at the specified assistance grants to local government, which levels agreed within the budget framework were previously included as operating including the full accrual cost of these revenue and expenses in 1997-98. As this outputs. item is the on-passing of Commonwealth grants, it is treated as administered and as For 1998-99 DOI fully delivered its: DEPARTMENT OF INFRASTRUCTURE such is not included in the 1998-99 revenue OUTPUT EXPENDITURE • agreed output targets and expenditure.
• agreed capital program, and Accordingly, operating revenue is in the order • managed throughout the year within its of $2.1 billion in 1998-99 compared to available resource limits. $0.8 billion for 1997-98.
The financial statements presented later in The operating surplus of $29 million this report are prepared in accordance with reflected in the DOI’s Annual Financial the applicable Australian Accounting Statement primarily relates to the accounting Standards and the Financial Management treatment of asset transfers to the Act 1994. department from other government entities Strategic planning - 0.5% at no cost. This has been reflected in the These statements do differ substantially from Road, rail and public development - 38.3% Operating Statement as abnormal revenues. previous year’s financial statements as a Bus passenger services - 14.5% This surplus is not available for distribution direct result of the reforms outlined above Taxi and tow truck services - 1.9% but reflects an increase in net assets (see and introduced through the 1998-99 Budget. Rail passenger services - 36.5% note 14 of the Financial Statements for Planning and local govermance - 3.3% Operating revenues and expenses now full details). Safety and licensing - 4.7% include government revenues and expenses
DEPARTMENT OF INFRASTRUCTURE 12 STRATEGIC PLANNING The five Rural and Regional Action Plans were launched in March LAND USE, TRANSPORT framework for integrated land use and AND BUILT-FORM transport to the year 2015. PLANNING
DOI now has leading-edge strategic planning RURAL AND REGIONAL STRATEGY capabilities that have broader application across government. The next major piece of DOI has taken a lead role in the development work is the completion of the Metropolitan of the Rural and Regional Strategy, and the Strategy, which is the first comprehensive five regional action plans developed by plan for metropolitan Melbourne since regional forums – an 18-month whole-of- the 1960s. government project focused on the future growth and prosperity of regional Victoria. The integration of strategic planning, the While the Department of State Development coordination of infrastructure and land-use will now oversee the implementation of the systems and cross-agency project delivery action plans, DOI will continue to foster continue to make a significant difference to better partnerships between communities, the achievement of government objectives. organisations, business and government Disparate elements of transport and land-use through its regional offices and several systems join together under Living Suburbs, actions identified in the strategy. the Government’s broad metropolitan policy, and Transporting Melbourne, an integrated Already DOI has initiated the North-West transport system for Melbourne. Freight Transport Study and the Portland Access Study. Other Rural and Regional DOI will continue to foster better partnerships Strategy initiatives under way include a project aimed at streamlining the between communities, organisations, business development approach process and the and government through its regional offices Land Use Profiler pilot, a tool to assist regional decision-making and to facilitate investment across Victoria. The overarching transport strategy Transporting Victoria is now issued in draft and a review of Transporting Melbourne has been completed.
DOI is currently analysing a wide cross-section of issues including population and land forecasts, travel and activity patterns, local government Municipal Strategic Statements and international and national strategies. This undertaking of review and analysis will be used to help develop the Metropolitan Strategic Framework, due for completion next year. The strategy will provide a robust
ANNUAL REPORT 1998-99 14 Minister for Roads and Ports, Geoff Craige (right) launched the Victorian Cruise Shipping Strategy with Captain Roland Hasell and the Minister for Tourism, Louise Asher, in February TRANSPORT STRATEGIES AIRPORT RAIL LINK
Strategies are also being developed in A study has been completed on options partnership with several municipalities and including mode type/technology and effective VicRoads to guide integrated transport routes for a future rail link to Melbourne infrastructure and land-use development. Airport. An integrated express rail service The Outer Western Suburbs Transport extending from the Broadmeadows line was Strategy (municipalities of Wyndham, considered to be the most suitable option, Brimbank and Melton) and the Whittlesea and public exhibition of the possible routes Strategic Transport Infrastructure Study are due for completion later in 1999. An integrated express rail service extending from Panel hearings to consider the preferred the Broadmeadows line was considered to be option of the Scoresby Transport Corridor Environmental Effects Study (EES), assessing the most suitable option alternative land-use scenarios between Ringwood and Frankston, have been and consultation with the local community completed and the Minister’s assessment is took place. A panel report considering an expected soon. amendment to the Hume Planning Scheme Studies were completed to identify any to include a rail link reservation is due in extensions to train and tram networks that mid-August. should be mandated in contracts with franchisees as part of passenger rail CRUISE SHIPPING franchising. Several projects were identified, STRATEGY the major ones were: (a) the extension of The Victorian Cruise Shipping Strategy was the suburban train network from St Albans launched in February. It provides a three-year to Sydenham and (b) the tram network from plan to increase the number of cruise-ship Mont Albert to Box Hill. The projects will be visits from 19 in 1998 to more than 30 in implemented over the next three years. 2001, thereby improving tourism and related Schedules were also set for new tram economic benefits for the State. services to operate into Southbank Responsibility for the management of Station and Docklands. Pier was recently transferred from the
DOI worked closely with the Transport Melbourne Port Corporation to the Minister Reform Unit to develop commercial for Roads and Ports and DOI. It is a key arrangements with the passenger rail plank in the Government’s Cruising franchisees that would encourage Victoria Strategy. progressive improvements to services. As a result, future government payments to franchisees will increase proportionately to the ability of the franchisee to attract additional passengers. SmartBus will transform bus services linking key suburban activity centres, making them a mode of choice for travellers
ANITA CURNOW PROJECT MANAGER Anita Curnow (left) boards the Route 703 bus at Blackburn Railway Station. PUBLIC TRANSPORT PLANNING
In partnership with the Department of aim is to integrate another 25 cross-town Treasury and Finance and key industry bus routes linking major activity centres and players, Stage 1 of the Victorian Ports major interchanges with the train system, Strategic Study (review of the existing enhancing both radial and cross-town travel. industry) has now been completed. Stage 2 (developing demand/supply MODAL INTERCHANGES scenarios) will result in an appraisal of Interchanges between buses and trains occur infrastructure requirements within a 30-year at 160 railway stations across Melbourne. trade horizon for Victoria’s key private and With funding of $10 million over five years, publicly owned ports. DOI plans to upgrade bus access, shelter,
DOI has completed a review of the Victorian seating and information at these modal marine legislative scheme. The Marine Act interchanges. A similar program to the 1988 and subordinate legislation are the value of $10 million over five years is to be primary legislation regulating marine safety applied to modal interchanges across in Victoria and one of three Acts regulating rural/provincial Victoria. marine pollution in State waters. The As a significant contribution to the legislation is complex, prescriptive and enhancement of the rural school bus system, extensive. A key recommendation of the $10 million is to be invested over the next review is that a new modern Act be drafted five years in physical improvements such as and introduced in early 2000. Consultation bus bays and stops, interchanges, weather on review recommendations with key protection for waiting areas and a range of stakeholders has been completed and the associated paving and roadworks. first stage of preparing drafting instructions for a new Act has begun.
SMARTBUS
The research for the SmartBus project, highlighting the benefits of major cross-town bus services in Melbourne, has been completed in consultation with suburban communities. With $7 million funding over Initial Smart Bus demonstration routes: two years, a demonstration pilot for the Springvale and Blackburn Roads. Springvale Road and Blackburn Road routes will start next year linking major activity centres and railway stations. The eventual
DEPARTMENT OF INFRASTRUCTURE 16 Pedestrian ramp to tram station Improved vehicle/pedestrian exit Tram Storage FITZROY GARDENS Taxi Area Carpark A access road WELLINGTON PARADE
Exhibition Street SPORTS AND extension Possible multi deck car park Widened Improved landscaping Possible future footbridge and pathways ENTERTAINMENT development site Tram stations Taxi Area PUNT ROAD FLINDERS STREETCarpark New PRECINCT Olympic stand FEDERATION Parkland SQUARE MCG Improved vehicle exits Major works under way in FLINDERS STREET the Jolimont Precinct STATION MELBOURNE Brunton Avenue closed PARK B for major events Function Redeveloped Replacement courts Centre Richmond Station (Long term) Arena Rail Corridor
RICHMOND ARTS ST KILDA ROAD STATION C CENTRE Tram and pedestrian SWAN STREET overpass (Long term) KINGS DOMAIN Tram link (Stage 1)
OLYMPIC Landscaped Pedestrian link to Ferry terminal PARK Carpark Richmond Station Multipurpose velodrome Warm-up Tram station track Reconfigured “Glasshouse” Improved pathway links Controlled Pedestrian Crossing City Link tunnel entrance Upgraded Stadium
Sports Medicine and Administration Permanent car park
ROYAL BOTANIC GARDENS Pedestrian link to tan track MAJOR PROJECTS COORDINATION
The revitalisation of cultural and sporting infrastructure is a key element of positioning Melbourne to attract international and The Jolimont rail rationalisation from national events and investment. Improved 53 tracks to 12 operating lines has now been coordination of the construction of major largely completed, including track and projects across a range of agencies has overhead realignments, the construction of provided a clear framework for effective remote train-stabling areas and construction delivery and optimal outcomes for of a new electrical substation. Work is the community. progressing on schedule on the Train Management Facility to allow for the JOLIMONT MAJOR decommissioning of the Metrol Building. PROJECTS COORDINATION Piling and crash walls for the Federation A number of major projects in the Jolimont Square project were completed in October Precinct, including Federation Square, the 1998. The deck is substantially completed, Jolimont rail rationalisation, the Exhibition enabling the construction of superstructure Street Extension, the Swan Street tram buildings to begin (July/August) following the relocation and new parkland, are being resolution of industrial issues and the managed by separate infrastructure agencies establishment of a Certified Project and, in the case of the parkland, the City Agreement. A revised construction program of Melbourne. now provides for an opening date of May DOI has undertaken an overall coordination 2001 for the Centenary of Federation role during the implementation of these Victorian celebrations. projects with an emphasis on project Further works to remove the buildings and interface and interdependence issues. This is roadway along Batman Avenue have started to ensure that all projects in the area can to support site clearance for the City of proceed according to their individual plans The Minister for Transport, Robin Cooper, and the Premier, Melbourne’s development of the new Jeff Kennett, launch the Route 70 Tram which now and are able to be completed by the runs through the Sports and Entertainment Precinct Riverside Park. responsible agencies on time and within budget without detriment to the other projects. Thus critical issues, particularly in relation to rail occupations, are identified early and are resolved before they affect the planned cost and time outcomes of the projects. SPORTS AND ENTERTAINMENT PRECINCT
In June, the Route 70 tram was relocated
Gail Moody from Batman Avenue to Flinders Street, from where it turns into the new Exhibition Street Extension and runs parallel to the Progress being made on the rail lines through the Sports and Entertainment Precinct. implementation of the Sports and The removal of the tram service from part of Entertainment Precinct Strategy is Swan Street and Batman Avenue has allowed excellent and the improvement it will roadworks to progress to the completion of bring to the precinct will soon be the second stage of the Exhibition Street Extension, scheduled to be opened in available to users conjunction with the southern link of the City Link project.
GAIL MOODY Contracts have been let for a major EXECUTIVE DIRECTOR INFRASTRUCTURE PLANNING AND PROJECT DEVELOPMENT pedestrian bridge linking the concourse of the Melbourne Cricket Ground’s (MCG) Southern Stand across the rail corridor to the new Multi Purpose Venue. This will be integrated with one of the new Route 70 tram stations, a large landscaped plaza, bus parking areas, taxi ranks and a new pathway to Richmond Station.
The replacement of the existing narrow footbridge between the MCG and Melbourne Park with a wider bridge to relieve congestion after major events has also been started.
Tenders have been called for the transformation of Swan Street, between Punt Road and the Yarra River, into a landscaped boulevard.
ANNUAL REPORT 1998-99 18 The new North South Road running between the Colonial Stadium and Spencer Street Railway Station
DOCKLANDS TRUNK STATION PIER INFRASTRUCTURE REFURBISHMENT
The recommendations of the Docklands Funding has been approved for the Traffic and Transport Study undertaken by refurbishment of Station Pier in 1999–2000, DOI in 1997–98 resulted in the development based on the findings of a condition of a new road network for Docklands. The assessment report completed by DOI in 1998. construction of the road network is The works will include the reconstruction of proceeding and will be completed by June areas of the pier currently closed to traffic 2000, with the majority of the network and deck and pile repairs. DOI has engaged a operational for the opening of the Colonial project manager to start detailed scoping Stadium in February 2000, including the new and planning of the refurbishment, and this North South Road. This will allow Footscray has involved tenders for the works. Road to be truncated and developed as a In conjunction with the restoration of the local road with good pedestrian mobility pier, revised traffic and parking management between the Stadium, the Batman Hill arrangements have been developed to Precinct and the waterfront. The optimise landside access to service the needs reconstruction of Charles Grimes Bridge and of shipping activities at the pier. the lowering of Dudley Street will be finished in the latter half of the financial year. DOI is LOCAL GOVERNMENT closely monitoring the delivery of the trunk Victoria’s system of local government is in infrastructure works in association with the better shape than ever and this is reinforced Docklands Authority, VicRoads and other by councils’ community satisfaction surveys, government agencies. which show year-to-year improvement. It is expected that half of all trips to and Structural reform to the local government from Docklands will be made by public sector is nearly five years old. DOI has transport. The construction of the Docklands developed a strategy intended to foster the tram extension has begun. By June 2000, the development and improvement of local new tram track will be built and operational government administration. Meetings were in Melbourne's Docklands, along Flinders held with representatives of councils in all Street west to Spencer Street, along regions of Victoria. DOI prepared a paper Footscray Road to La Trobe Street and back outlining actions to be undertaken by the to the city across the new La Trobe Street Local Government Branch over the next two Extension Bridge. A service will be in place to years and this was distributed to other provide access to Colonial Stadium when it government departments and the local opens in February 2000. The State government sector for comment and to Government is contributing to the cost of the generate further understanding. project, while Docklands developers are providing the balance of funding. The tram service has been mandated upon Metrolink, the new owner of the Yarra Trams franchise. Our focus is supporting Local Government in the delivery of good governance and quality services
PRUE DIGBY EXECUTIVE DIRECTOR, LOCAL GOVERNMENT BRANCH
In summary, the strategy outlines a vision of as subsidies have not been available from partnership with councils and local Multimedia Victoria. government associations where DOI will shift The first round of National Competition from micro-management to administering Policy (NCP) payments to local government legislation and encouraging and supporting has been completed and $4.765 million was the development of best practice. The action distributed to councils for NCP compliance in plan includes: 1997–98. Councils reported on compliance in • good governance terms of the Competition Principles
• continuous improvement Agreements they entered into with the State earlier this year. All reported having met their • inter-government Prue Digby obligations under the Agreement. Self- relations/administration assessment of compliance by councils • intra-government coordination. remains the preferred approach and the Chief Executive Officer of a council now LOCAL GOVERNMENT PROGRESS certifies the entire NCP statement before it is submitted to the Minister. The review of local By 1 July 1998, all councils were required to laws is a key item for councils’ NCP have in place service charters for a minimum compliance in 1998–99. Seventy per cent of of three specific services, together with councils have already submitted reports on penalties that will apply in the event of a the review of their local laws. failure to meet the promised standards and formalised complaints procedures. To date, In March 1999, DOI released the Draft Best all 78 councils have prepared at least three Practice Guidelines for Council Audit service charters. Committees and Internal Audit. The guidelines were prepared with input from the Australian Accounting Research Foundation A total of $22.85 million was distributed to (and the consent of the Institute of Internal Victoria’s 44 public library services through Auditors Australia and the Australian Institute DOI during 1998–99 of Company Directors). The Guidelines are based on Australian and international audit best practices. The Draft was issued to all Four councils (Manningham, Moira, Yarra councils for comment and the Working Party and Melbourne) are now represented on the has reviewed and determined the key issues Government’s Electronic Service Delivery from councils’ submissions. It is envisaged (ESD) system, Maxi, which was launched in that the Best Practice Guidelines will be December 1997. DOI is working closely with finalised and released in September 1999. other councils to encourage their participation. The cost of ESD has prevented many councils from moving to this method
DEPARTMENT OF INFRASTRUCTURE 20 Graham Dudley
PERFORMANCE PUBLIC LIBRARIES MEASUREMENT Each mobile library A total of $22.85 million was distributed to carries up to 5,000 In September 1997, the Government Victoria’s 44 public library services through announced that the local government rate- DOI during 1998–99. This included $914,000 items (books, music capping regime would be lifted from the for the State’s two libraries for people with and videos) and will 1998–99 financial year. Councils were given print disabilities, representing an increase of be equipped with the power to raise rates and charges, subject more than 37 per cent in Victorian to compliance with the performance government funding to these two vital public-access personal measurement program and publishing services. computers to link segmented financial reports for the trading Sixteen new mobile libraries for rural areas of activities of in-house business units. For country users to the Victoria are being built under a $2.48 million 1999–2000, councils have been advised that, Community Support Fund grant. The first of Internet and other in view of likely movements in the Consumer these was launched in March 1999 and the Price Index, rate increases of up to 3 per cent computer-based remaining vehicles will be commissioned will be allowed, with increases above that resources progressively during 1999. The mobile library amount subject to satisfaction of criteria upgrade program represents a significant established by the Minister. The Local GRAHAM DUDLEY, PROJECT OFFICER, investment in the future of rural Victoria and Government Branch has received and LOCAL GOVERNMENT OPERATIONS will ensure that communities throughout the noted submissions for rate increases from State have access to quality library services. all councils. In December 1998, the Victorian Government DOI launched a landmark performance hosted the national awards for the Nestlé measurement and benchmarking report to all ‘Write Around Australia’ competition, a councils in July 1999. The report included short-story writing competition for Year 5 29 key performance indicators covering five and 6 students. Held in conjunction with the critical areas – financial performance, Victorian State awards, the function community satisfaction, rates management, recognised the considerable effort that many capital expenditure and operating costs. thousands of students across Victoria and These indicators will be included in councils’ Australia put into producing stories of Annual Report Performance Statements. The impressive quality and diversity. report also summarised the results of 47 comparative indicators, focusing on unit cost and quality measures for specific service areas for 1997–98. The performance management system is to be refined and is seen as a major component of a drive for continuous improvement in local government performance. MAJOR PROJECTS
ANNUAL REPORT 1998-99 22 The Office of Major Projects (OMP) manages • relocation of the Museum of Victoria's the Government's interests in large collection from the State Library into construction and property development new storage premises projects. OMP’s primary objective is to • completion of feasibility studies and manage these projects in a way that development planning of the proposed achieves effective delivery and meets agreed Commonwealth Games Village for use political, financial, economic, and social in Melbourne’s successful bid campaign. goals, including revenue, expenditure and Other important milestones include time targets. commencement of construction of: The 20 active projects currently handled by • National Gallery of Victoria Temporary OMP have an overall capital value of in Exhibition Gallery at the former Museum excess of $2 billion. In 1998–99, OMP spent building in Russell Street more than $232 million of public funds on The new Melbourne Museum in Carlton Gardens projects, up from $161 million in the • Sidney Myer Music Bowl refurbishment previous year. The public sector investment is • Netball and Hockey Centre at Royal Park combined with $91 million private sector • State Archive Centre, North Melbourne The 20 active spending. Revenue receipts from land development projects exceeded $41 million. • Multi Purpose Venue at Melbourne Park projects currently • Federation Square Deck Earlier projects, which include those launched handled by OMP under the Government’s Agenda 21 initiative, • Sports and Entertainment Precinct have an overall to revitalise the capital city and restore its Infrastructure improvements. capital value of in commercial and cultural leadership, have Construction of the new Melbourne Museum been supplemented by several new cultural excess of $2 billion in Carlton Gardens is progressing towards projects and a number of projects to improve physical completion in late 1999 for a July the city's sporting infrastructure. 2000 opening, while the documentation has In the past year, OMP has successfully been prepared for the $136 million delivered several significant projects and redevelopment of the National Gallery of reached important milestones on others. Victoria to enable tenders to be called in August 1999. Achievements include: Progress continues on major residential • completion of the Immigration and developments at Beacon Cove and Hellenic Antiquities Museums at Old Kensington Banks, both projects having been Customs House in Flinders Street recognised by industry for their design (November 1998) excellence. Contracts of sale for the Mont • completion of Phase 1 including the Park residential development adjacent to Newspaper Reading Room at the State La Trobe University were executed in Library (September 1998) April 1999. • completion of the Exhibition Centre Pedestrian Bridge COMPLETED PROJECTS
IMMIGRATION AND HELLENIC ANTIQUITIES MUSEUMS AT OLD CUSTOMS HOUSE
This $20.7 million project has been Ian Hatfield recognised with the Master Builders Association award for construction excellence. It was opened in November 1998.
The Multi Purpose Venue will have a movable STATE LIBRARY OF VICTORIA REDEVELOPMENT (PHASE 1) roof and operable seating system with up to In September 1998, Phase 1 of the 10,000 seats to allow configuration as a renovation was achieved with the completion velodrome, tennis or basketball show court, of the Newspaper Reading Centre. concert venue or conference auditorium The overall project cost for the Library Redevelopment is $190.4 million.
IAN HATFIELD EXHIBITION CENTRE DEPUTY DIRECTOR PEDESTRIAN BRIDGE AND OFFICE OF MAJOR PROJECTS CONVENTION CENTRE ENTRY
Totalling $10.6 million, these two projects will further enhance Melbourne’s strength in the lucrative international convention and exhibition trade market.
COMMONWEALTH GAMES VILLAGE
Athletes and officials visiting Melbourne for the 2006 Commonwealth Games will be accommodated in a modern medium-density estate environment in Royal Park in Parkville.
After the Games, this development will be converted into a new inner city residential community containing approximately 820 dwellings of mixed sizes and styles.
The overall project cost is estimated as $120 million from a mix of public and private sources.
DEPARTMENT OF INFRASTRUCTURE 24 NEW PROJECTS MULTI PURPOSE VENUE, MELBOURNE PARK
NATIONAL GALLERY OF This $65 million multi-purpose stadium, to VICTORIA TEMPORARY EXHIBITION GALLERY open in April 2000, will incorporate an operable roof and movable seating systems. Building works should be completed in September 1999 to provide the National CIVIC PROJECTS Gallery of Victoria with a temporary exhibition venue during the two-year closure MELBOURNE MUSEUM John Weston of the St Kilda Road building. The venue will Construction of the Melbourne Museum in open in November 1999. Carlton Gardens will advance to building completion by the end of 1999. The SIDNEY MYER MUSIC BOWL construction and installation of the museum REFURBISHMENT exhibitions will begin in July 1999 for a The Gallery Project Demolition work and excavation work has Museum opening in July 2000. started for the refurbishment of the Sidney focuses on the The overall project cost of $287 million Myer Music Bowl. The $18.5 million enhancement of the includes $263 million budgeted by the development (including a $3 million State Government. National Gallery as a donation) will take place in two stages. Melbourne icon NATIONAL GALLERY OF STATE NETBALL AND HOCKEY VICTORIA REDEVELOPMENT CENTRE through the Design development has been completed and Construction started on the State Netball and development of new documentation prepared for calling tenders Hockey Centre at Royal Park in March 1999. international in August 1999. Construction will start in The overall project cost is $27 million with a December 1999 with completion scheduled standard exhibition completion date of April 2000. for late 2001. The building will re-open to facilities for the ROYAL EXHIBITION BUILDING the public in the first half of 2002 after an display of the most REFURBISHMENT extended period to reoccupy the building
The $6.1 million project provides for the and install the art works. important art refurbishment of the northern façade. collection in The repainting of the exterior of the building Australia is also proposed in time for the Centenary of Federation celebrations planned for JOHN WESTON May 2001. PROJECT DIRECTOR OFFICE OF MAJOR PROJECTS
Chairman of the Victorian Arts Centre Trust, Richard Pratt, at the Myer Music Bowl refurbishment project launch Beacon Cove, Kensington Banks MAJOR RESIDENTIAL DEVELOPMENTS
STATE ARCHIVE CENTRE, NORTH BEACON COVE MELBOURNE Beacon Cove is an innovative redevelopment The three-storey State Archive Centre will by the Mirvac Group of a 30-hectare former provide a secure, climate-controlled industrial waterfront site at Port Melbourne. environment for the storage and The completed project will comprise a conservation of records and artefacts under medium-density residential development of the care of the Public Records Office and approximately 900 houses and apartments temporary storage for the National Gallery of Victoria’s primary collection. The first new home sites at Mont Park are due The total project cost is $32 million with a to be put on the market early in the year 2000 September 1999 completion date. with an estimated project value of $200 million FEDERATION SQUARE
A joint venture between the State with land reclamation to create an exciting Government of Victoria and the City of waterfront pedestrian promenade between Melbourne, Federation Square is planned Station and Princes Piers. Recently work has to become Melbourne’s new civic and commenced on the new waterfront cultural hub. esplanade and boat harbour, which will include cafes and restaurants. Project cost is $220.8 million with additional funding being sought from the private sector. KENSINGTON BANKS An opening date of May 2001 is scheduled. The redevelopment of former Newmarket Saleyards and abattoir land and the Kensington Army Depot as medium-density residential estate is targeted for affordability and mixed (private and public) housing under the Federal Building Better Cities program.
MONT PARK (BUNDOORA)
As part of the sale arrangements for this 85-hectare site, La Trobe University will take possession of a number of the handsome former hospital buildings for research and educational purposes. The first new home sites at Mont Park are due to be put on the market early in the year 2000. The estimated project value is $200 million.
ANNUAL REPORT 1998-99 26 PUBLIC TRANSPORT Reform of public transport has been framed to provide better service to more people safely at lower cost to the taxpayer
JOHN MC MILLAN DEPUTY DIRECTOR OF PUBLIC TRANSPORT
John McMillan
PUBLIC TRANSPORT RAIL FRANCHISING REFORM
• V/Line Freight was sold in May to an businesses, with plans to increase Rail reform is currently one of the most international consortium, Freight patronage by 84 per cent and 40 per important issues facing the transport industry Victoria, based on a purchase cent respectively over the terms of the in Australia. Since the Public Transport agreement of $163 million, which two franchises. National Express has Corporation was divided into five separate included a 15-year renewable lease to contracted to invest in 62 new trains, passenger businesses in July 1998, DOI has operate and maintain the country rail 59 low-floor trams, electronic passenger worked closely with the Treasury’s Transport infrastructure with an undertaking to information at tram stops and network Reform Unit to finalise the franchising of complete a $36 million upgrade improvements, including the extension those businesses. This has resulted in program by 2001. Freight Victoria is of the electrified suburban rail system to agreements with the successful bidders that targeting new business from bulk traffic Sydenham, where a new station is to be will attract $1.6 billion of new private such as paper, logs, sand, grain and constructed. investment into our rail service. fertiliser, as well as an increased share of • Metrolink has been awarded the 12-year Over the past 15 years, patronage has grown the intermodal market. franchise to operate Yarra Trams. It will by around 20 per cent on tram, metropolitan spend $150 million on modernising the • National Express has won the 10-year train and country train services. Transporting fleet, adding 31 new low-floor trams contract to manage the V/Line Melbourne identified a number of initiatives and extending the Mont Albert Tram Passenger franchise with a bid which to achieve a 50 per cent increase in public service to Box Hill, and expects to includes $158 million for new high- transport travel over the next 15–20 years. increase patronage by 60 per cent. speed trains and $7 million to upgrade Since the patronage declines in the late the existing fleet and stations. National • The new operator for the fifth franchise 1980s and early 1990s, the delivery of the Express will add an extra 135 weekly rail – Hillside Trains – is Melbourne ‘System into a Service’ reforms has resulted services in May 2000 and plans to boost Transport Enterprises (MTE), which will in strong patronage growth. The patronage by 74 per cent over the next invest $490 million in new and implementation of franchising will deliver 10 years. upgraded trains, the revitalisation of even greater gains. • The metropolitan franchises of Bayside Flinders Street Station and an additional Trains (15 years) and Swanston Trams 130 services a week under its 15-year (12 years) have also been awarded to agreement. MTE’s patronage target is a National Express. National Express will 64 per cent increase over the term of inject more than $1 billion into these the franchise.
DEPARTMENT OF INFRASTRUCTURE 28 PASSENGERS’ CHARTER
The Passengers’ Charter, guaranteeing that existing public transport services will be protected and improved under franchising, was released in October 1998. The Charter Geraldine Sharman demonstrates Victoria’s commitment to a further expansion of the public transport system, growth in its use and the Franchising has been a complex legal process safeguarding of the services which and our aim now is to ensure that the passengers value. It provides passengers with clear guarantees about the issues which arrangements work and deliver the best matter most to them – future service levels, possible service to the public fares, ticketing and so on. The terms of the Passengers’ Charter have been written into GERALDINE SHARMAN the Government’s contracts with private- MANAGER LEGAL SERVICE TRANSPORT REFORM sector train and tram operators. A new, independent Passengers Charter Committee will be established later in 1999 to provide annual subsidy payment to be made by the advice to the Director of Public Transport and Government (or premium payments to be the Minister for Transport on the made by the franchisee) has been agreed and performance of the new franchisees. was determined as part of the competitive
FRANCHISING tendering process which led to the award of ARRANGEMENTS the five franchises.
The Franchise Agreements are legal The Franchise Agreements specify the documents that prescribe minimum service minimum service that the franchisee is levels and performance targets and include required to provide. They include incentive and penalty payments to encourage specification of first and last services, improved performance. In addition to maximum service intervals by time band and passenger rail services, each passenger rail maximum journey times by route. In general, business will be responsible for the operation the service requirements are consistent with and management of stations and safety the aggregate level currently provided by zones, the maintenance of rolling stock and each business, with some flexibility to adjust (for the metropolitan businesses) services to meet demand. Any changes to the maintenance and renewal of infrastructure. timetable will require approval by the Director of Public Transport. Franchises will derive revenue from four main sources: farebox revenue; supplementary Franchisees will be subject to a regime of payments for concession travel; a fixed incentive and penalty payments to encourage subsidy and variable payments for passenger improved operational performance. These growth and operational performance. The variable payments will relate to how well the Possible designs for new, state-of-the-art trams being franchisee has met quantitative targets for Should a franchisee not have its contract considered by Yarra Trams reliability and punctuality. Franchisees will renewed on expiring, the rolling stock will be need to achieve significant improvements in available in good working order for performance before they can start earning continued operation under any new operator. money in this way. INFRASTRUCTURE LEASE In addition, the franchisees must maintain AGREEMENT quality of service (security, cleanliness, Each of the metropolitan passenger rail information) which will be measured, in part, businesses was franchised on a vertically through customer satisfaction surveys. integrated basis. Franchisees will lease their infrastructure from the Government and will Franchisees will need to achieve significant be responsible for maintaining it to specified improvements in performance standards. V/Line Passenger, which operates on track leased to other operators, has been franchised as an operating company only, ROLLING STOCK with contractual arrangements to ensure that
As part of the franchising process, the the tracks it uses are maintained to high Government transferred the ownership of the standards and that V/Line Passenger gains existing passenger rolling stock to the access to that track on fair terms. franchisees, with powers to resume control OPERATIONAL of the fleet at the end of the franchises. In PERFORMANCE REGIME addition, the franchisees are contracted to The Operational Performance Regime (OPR) is purchase more than $1 billion worth of new a key component of the franchised passenger rolling stock (see above.) The contract train and tram systems. It requires each arrangements with the franchisees will operator to measure and report on the ensure that adequate maintenance is carried punctuality and reliability of their passenger out on both existing and new rolling stock. services to the Director of Public Transport. The results are compared against performance targets set by the Government.
PUBLIC TRANSPORT FRANCHISEES The performance targets require operators to deliver an initial 20–30 per cent reduction in
FRANCHISE OPERATORS delays in the first year of the franchises, rising to 40–50 per cent over the full course of the franchises. If an operator beats its METROPOLITAN TRAIN performance target in any particular month, it will receive an incentive payment from the METROPOLITAN TRAM Government. If performance is below target, the operator will be required to pay a COUNTRY TRAIN AND COACH financial penalty. The principles of the OPR
DEPARTMENT OF INFRASTRUCTURE 30 have been enshrined in the Franchise
Agreement for each tram and train business. Travellers purchase 300,000 Metcard tickets every day
DOI has designed and prepared functional specifications for the development of systems to accept and store the timetable and REVENUE CLEARING VICTRIP HOUSE performance information supplied by VicTrip is the centralised information centre operators and to calculate their performance A Revenue Clearing House has been created for all Victorian public transport services. against the OPR. These systems are due for to manage and allocate the revenue from It is an integral component of the franchised completion in December 1999 and for multimodal Metcard tickets. This is a jointly public transport system and has now been operation in early 2000. Interim systems have owned enterprise with five shareholders (the established as a private company jointly been implemented to ensure that data is new owners of Hillside Trains, Bayside Trains, owned by the franchise operators and the collected and performance is measured so Swanston Trams, Yarra Trams and the Director of Public Transport. The centre will that incentive or penalty payments can be Office of the Director of Public Transport, provide extensive timetable and related calculated when the franchises commence at representing contracted private bus information on public transport services (that the end of August 1999. operators). is, train, tram and bus) across the whole State through call centre facilities, Internet PUBLIC TRANSPORT AUTOMATED TICKETING MANAGEMENT SYSTEM services and, eventually, through kiosks in public areas. The system will be DOI has established the Office of the Director The OneLink Metcard automated ticketing comprehensive and will include trip planning, of Public Transport to manage the Franchise was formally commissioned in March 1999. ticketing and reservation services. It is Agreements and Infrastructure Lease Approximately 300,000 Metcard tickets expected that VicTrip in its new format will Agreements and to monitor the performance are sold each day, facilitating one million be launched in September 1999, with a of operators to ensure that passengers trips a day on the public transport system. progressive ‘roll out’ of information receive a high standard of service. The Public Transport Corporation has functions through to the end of 1999. The launched an extensive marketing campaign The Director of Public Transport is more than development of VicTrip is a major Victorian to make people aware of increased just a contract manager. A key function of his Government Online 2001 initiative. purchasing options, pre-purchasing and office will be to ensure that train, tram and discounted tickets. bus services across the State are properly coordinated – and that passengers receive an efficient, seamless and convenient service.
Through the franchising of train and tram services and the earlier franchising of Victoria’s bus operations, the Government has ceased to be a direct provider of public transport. Instead, it has taken on a purchasing, regulatory, planning and coordinating role. The Office of the Director of Public Transport will work closely with other parts of DOI to ensure these functions are carried out effectively. METROPOLITAN ROUTE SERVICES
A key element of the new contracts is the Steve Stanko establishment of passenger incentive arrangements similar to those in the contract Victoria’s public bus network is rapidly with the National Bus Company. Trip surveys and analyses necessary to implement the moving into a new era of technologically passenger incentive model will be conducted smarter, better and more customer through 1999–2000. focused services The contracts require that bus fleets be maintained at an average age of 10–12 years and provide for an annual bus replacement STEVE STANKO DIRECTOR BUS SERVICES program. It is expected that some 1,000 new fully accessible, ultra-low-floor buses will be BUS SERVICES introduced during the life of the contracts.
The Bus Services Group within the Office of Melbourne Bus Link Pty Ltd (MBL) the Director of Public Transport will work commenced operation in April 1998, closely with bus operators (metropolitan and completing the franchising of the route bus country) and train and tram operators to network in Victoria. In accordance with the ensure that opportunities to develop contract, a comprehensive review of MBL partnering-type arrangements are developed services is due to be completed in to maximise service to the public. 1999–2000 and subsequent service
CONTRACT MANAGEMENT improvements will be phased in. SYSTEMS Funding of $2.6 million has been approved in 1999–2000 for implementation of the The new route bus contract arrangements following metropolitan bus service initiatives: introduced to Melbourne metropolitan operators in 1998 require new management • new and improved services
information systems that are responsive to • new weekday evening services performance and can analyse outputs. • new weekend services
• air-conditioning for replacement buses.
DEPARTMENT OF INFRASTRUCTURE 32 NIGHTRIDER BUS Thirteen temporary school bus services have SERVICES been put to public tender so that permanent
The Nightrider bus services currently operate contract arrangements for these services can with seven operators under two-year contract be finalised. arrangements which conclude in June 2000. Funding of $2.2 million has been approved in A review of these services and the basis on 1999–2000 for the implementation of the which they should be re-tendered will be following school bus service initiatives: undertaken in 1999–2000. • two-way emergency communication for COUNTRY ROUTE school buses SERVICES • air-conditioning for replacement school Country route service contract negotiations buses based on the successful metropolitan • flashing lights for all school buses, and contract model have been completed. These Each day one million trips are taken on the metropolitan multimodal • first-aid kits and training for school-bus public transport system contracts will incorporate service standards, operators. vehicle replacement programs and passenger incentive arrangements. Each of these initiatives involves a range of technical, training and other implementation Funding of $0.8 million has been approved in issues that will be resolved in consultation 1999–2000 for the implementation of the with the bus industry. following country bus service initiatives:
• new and improved services 2006 COMMONWEALTH KOSOVO REFUGEES GAMES • air-conditioning for replacement buses DOI assisted the Departments of Immigration DJA Maunsell has been commissioned by the • decrease in some country bus fares to and Defence by providing and developing Melbourne Commonwealth Games Bid Pty Statewide standard. coach services between Puckapunyal and Ltd and DOI to prepare a Traffic and Seymour, and the Portsea ‘Safe Haven’ SCHOOL BUSES Transport Concept Plan for the 2006 and Melbourne, to enable the resident Melbourne Commonwealth Games Bid. population of Kosovo refugees to have free In 1998–99 new 10-year contract The plan will provide a strategy for the transport to Spencer Street Station. The arrangements were finalised with School Bus delivery of transport services during the refugees have been granted free travel on all Contract operators. These contracts involve Games incorporating both the road network V/Line services. some 1,610 individual services operated by and public transport network. more than 620 bus operators catering for 75,000 students and 30 million trips a year. The new contracts provide for service standards and incentive arrangements to promote service efficiencies. A range of service efficiency proposals is expected to be considered and implemented throughout 1999–2000. TAXIS, TOW TRUCKS • provide a facility to collect Multi There are more than 3,800 taxis operating in Victoria AND DRIVING Purpose Taxi Program transaction data INSTRUCTORS from taxi terminals, forward this data to the Victorian Taxi Directorate’s MULTI PURPOSE TAXI processing system and distribute data PROGRAM back to the terminals The Multi Purpose Taxi Program provides • redevelop the Multi Purpose Taxi a subsidy on taxi fares for Victorians with Program processing and administration severe, permanent disabilities which deny facilities. them independent access to bus or tram services. Development work on this project has been under way throughout 1999 with a view to Project funding to re-engineer the field testing taxis based at Geelong during administration of the Program was granted October 1999. The remainder of Victoria’s from the Microeconomic Reform Program in taxi fleet will commence electronic data 1996. This funding was for consultancy work capture in November 1999. covering the production of specifications, request for tender documentation, tender TAXI-CAB LICENCES FOR evaluation and project supervision, together HIGH-OCCUPANCY with the actual re-engineering of the VEHICLES Program administration. Applications for the issue of 100
During the 1998–99 financial year, metropolitan taxi-cab licences were invited in contractors were appointed to: December 1998 and applications closed on 3 February 1999. Eligibility criteria and • issue new member cards containing procedures for licence issue were specified member details and capable of remote under the provisions of section 143A of the reconfiguration, and issue driver cards Transport Act. A total of 267 applications containing driver information and were received. capable of storing transaction details The new licences were required for the • provide in-taxi terminals capable of operation of vehicles capable of carrying two authenticating and modifying member occupied wheelchairs and between 6 and and driver cards, collecting trip and fare 11 passengers when wheelchairs are not details from the taximeter and being carried. The licences are subject to transmitting these to the data base, and conditions ensuring high levels of service to reading updated information from the the inner Melbourne area at peak demand data base times and during major events.
The high-occupancy taxis will come into service from October 1999.
ANNUAL REPORT 1998-99 34 NATIONAL COMPETITION TOW TRUCKS POLICY REVIEW The provisions of the Transport Act 1983 Consistent with National Competition Policy relating to the operation of tow trucks were (NCP) agreements, a review of the taxi and reviewed consistent with NCP agreements. small commercial passenger vehicle The review was conducted simultaneously provisions of the Transport Act 1983 was with the NCP review of the taxi and small completed and submitted to the Minister commercial passenger vehicles. The tow-truck for Roads and Ports in June 1999. The Minister for Transport, Robin Cooper, launches the tram service review was undertaken by KPMG Consulting for the 1999 Melbourne Grand Prix The review was undertaken by KPMG reporting to an Interdepartmental Steering Consulting reporting to an Interdepartmental Committee chaired by Mr Rob McQuillen Steering Committee chaired by Mr Rob PSM. It was completed and submitted to the McQuillen PSM. Minister for Roads and Ports in June 1999.
DRIVING INSTRUCTOR NATIONAL TRANSPORT AUTHORITY STRATEGY
Following a two-year review of driving DOI is supporting a national approach to instructor industry standards, legislation was transport and initiatives of the Australian introduced on 1 March 1999 requiring a Transport Council (ATC). It is monitoring Driving Instructor Authority to be held by Commonwealth Government progress and any person who, for financial gain or in the pursuing the need for a National Transport course of any trade or business, teaches an Strategy. This would bring together the unlicensed person to drive a motor car on issues raised in the National Transport a highway. Planning Taskforce report Building for the Driving Instructor Authority applicants are Job, the Productivity Commission draft report subject to probity and driving history checks, Progress in Rail Reform, and the Rail Projects medical examination to national commercial Taskforce report Revitalising Rail – the Private drivers’ standards and the successful Sector Solution. completion of an accredited driving instruction course.
At 30 June 1999, 1,000 driving instructor authorities had been issued and 22 applications had been refused. The Industry Reference Group established year. DOI has observer status on the
The new train and tram franchisees are developing action plans to by the Rail Group of SCOT is developing a Commonwealth, New South Wales and ACT comply with National Accessible Public Transport Standards series of uniform codes, standards and Government ‘Project Control Group’ to protocols primarily for the interstate ensure that the technology used and AUSTRALIAN RAIL TRACK network. These codes will be ready for contractual arrangements provide capability CORPORATION implementation in 2000. for an extension of the service to Melbourne. The Australian Rail Track Corporation (ARTC) The Victorian objective is to ultimately ATC has endorsed the development of an was established on 1 July 1998 by the achieve a three-hour journey time between Intergovernmental Agreement on Operational Commonwealth Government to manage the Melbourne and Sydney. Uniformity to provide for a body in the interstate rail track between the mainland Commonwealth Department of Transport and DOI is also monitoring progress on the capital cities and their ports. Victoria has Regional Services to implement the codes, $1.2 billion Alice Springs-Darwin rail project signed a Heads of Agreement to lease its standards and protocols across the nation. and is monitoring the proposed Inland Rail interstate rail track to ARTC for a period of Expressway System to link Melbourne to five years and is discussing the possibility of NATIONAL RAIL Darwin and provide access to four ports. extending the lease for two five-year DOI manages the Victorian Government extensions. The Commonwealth Government NATIONAL ACCESSIBLE shareholding in National Rail. Victoria has has made $250 million available for PUBLIC TRANSPORT finalised its obligations under the STANDARDS infrastructure improvements to the Shareholders Agreement including the interstate track over four years from With the expected introduction of National leasing of South Dynon container terminal 1998–99. The track between Geelong and Accessible Public Transport Standards, DOI and the transfer of locomotives and wagons Ararat has been upgraded including re-railing will assist the new tram and train franchisees to National Rail. The Victorian Government and the laying of concrete sleepers. The to develop action plans and comply with the has approved the sale of its shares in works were funded by the Victorian and Standards. In March, DOI, representing National Rail and a program for the sale Commonwealth Governments. Victoria on the Federal Attorney General’s process is being prepared. While the RIS Steering Committee for the development shareholders (Commonwealth, New South INTERGOVERNMENTAL of the Draft Standards, was granted AGREEMENTS Wales and Victorian Governments) have temporary exemption from the Disability agreed to the sale, the terms and conditions The Intergovernmental Agreement on Rail Discrimination Act 1992 for Victoria’s tram for the management of the sale are yet to Safety was signed in 1996 and authorities and light-rail services. be finalised. have been established to manage safety Transport safety drives the reduction in accreditation through legislation in each HIGH-SPEED TRAINS frequency, severity and cost to the State. In Victoria, the Public Transport Safety The French-based Speedrail Company has community of accidents and incidents. Directorate is the responsible authority. until September to ‘prove up’ its $3.5 billion The implementation of performance-based The Standing Committee on Transport (SCOT) bid for a very high-speed train service standards for compliance by transport has formed a committee to review the between Sydney and Canberra and a decision providers aims to reduce the cost of Agreement with a view to managing by the governments involved on whether to regulation to business, raise safety levels and safety on a national basis, at least on the proceed or not is expected by the end of the improve transport efficiency. interstate network.
ANNUAL REPORT 1998-99 36 TRANSPORT SAFETY TRAIN AND TRAM MARINE SAFETY A year 2000 strategy was developed for port ACCREDITATION operators, pilotage services providers and Phase 1 of the National Marine Strategy has vessel operators to raise awareness of the Freight Victoria (successful bidder for V/Line been completed. This Phase developed need for compliance and/or the preparation Freight) was officially accredited in April national principles for the licensing of of risk management plans. 1999. All bidders for the transport franchises operators of recreational boats and a work have attended briefings on rail safety program of 21 projects for completion in The Victorian Marine Pollution Contingency accreditation and the successful operators Phase 2. The projects are to be delivered Plan was tested through the exercising of will be required to gain accreditation before under four programs: Mutual Recognition regional sub plans. takeover. A compliance-auditing program for and National Consistency; Commercial Vessel the rail industry has been prepared and its Safety – Technical Standards; Commercial SERVICE DELIVERY audits are being conducted as required. Vessel Safety – Operations and Training; VicRoads provides its services to the Recreational Vessel Safety. Program community through four core business BUS OPERATOR ACCREDITATION managers, project leaders and project programs: Road Safety, Road System assistants have been drawn from all State Management, Traffic and Road Use The Public Transport Competition Regulations and Territory marine safety agencies. Phase 2 Management and Registration and Licensing. were introduced in May 1999 to replace the started in April 1999 and all projects will be The principal strategies, business out-of-date licensing system. All existing bus progressively completed by April 2001. objectives and issues are identified in operators have until May 2000 to achieve individual programs. accreditation. DOI has prepared an Easy All States and the NT have adopted a Guide to assist operators. common format and administrative ROAD SAFETY procedures for Certificates of Survey for The Victorian Government’s road safety SCHOOL BUS SAFETY commercial vessels. The mutual recognition strategy, Safety First, remained the basis for of certificates will streamline administrative The improvement of school bus safety is a VicRoads’ Road Safety Program in 1998–99. arrangements and improve operational high priority for DOI in the coming year. The The program generated a broad range of efficiencies when vessels move across State Public Transport Schools Education Unit was outputs aimed to improve the safety of and territory boundaries. transferred to the Office of the Director of roads, vehicles and road users. Significant Public Transport on 1 July 1999 and, An Industry Advisory Panel was established improvements in road infrastructure and the following discussions with stakeholders, it is by the National Marine Safety Committee treatment of hazardous road locations (black expected that a reference group will be (comprising representatives of each marine spots and black lengths) have contributed to formed. DOI’s plan is to ensure that school safety agency) to improve consultation with crash savings. bus safety is an integral component of overall the marine industry and to identify issues of public transport safety and road safety national concern. initiatives and programs. New standards were introduced for pilot service providers to maintain safety, following TAXI AND TOW TRUCKS the opening of pilotage services in Victorian During the year, the Taxi and Tow Truck commercial ports to competition. Enforcement Group completed a total of 13,746 audits of taxi-cabs, hire cars, tow trucks and authorised drivers to ensure compliance with the relevant regulations.
DEPARTMENT OF INFRASTRUCTURE 38 ROAD SYSTEM MANAGEMENT AND DELIVERY 90 as a result of a program, which has Western Highway at Bacchus Marsh involved an investment of $22 million a year. A major new program of bridge strengthening and replacement for 329 ROAD SYSTEM bridges on declared roads is now required to MANAGEMENT accommodate the significantly increased axle PROGRAM mass limits introduced on 1 July 1999.
ROAD MAINTENANCE ROAD SYSTEM Progress continued on the implementation of DEVELOPMENT the Stitch in Time pavement maintenance A program of road system development is strategy (1993) and the Victoria’s Bridges progressively implementing a number of key (1994) strategy. Progress towards these State government strategies, including: strategies has achieved the following results. • Linking Victoria, rural roads strategy • Improved targeting of maintenance (1996) together with the use of lower cost • Transporting Melbourne, metropolitan maintenance treatments, in accordance transport strategy and Linking with the Stitch in Time strategy, has Melbourne, (1994) metropolitan roads reduced the length of rough roads from strategy 11.3 per cent in 1997 to 10.8 per cent in 1998. This continues the trend of • priorities identified in Victoria’s National improving road conditions since 1993 Roads Strategy submission to the when 13.8 per cent of the arterial road Federal Government (1998).
network suffered from an unacceptable Achievements in 1998–99 included: level of roughness. • development of infrastructure to • Replacement of 25 bridges, focusing on support transport efficiency and urban B-double routes, to improve freight development efficiency. Rehabilitation works were • reconstruction of the Boronia–Dorset undertaken on a further 50 bridges. Road intersection, including lowering Victoria's Bridges (1995) identified a the railway and redeveloping the significant number of bridges in the State Boronia Rail station, opened in with deficiencies in load capacity, width or April 1999 height clearance. Improvements to Victoria’s • opening of the Metropolitan Ring Road bridges have been achieved through a (section from Dalton Road to Edgars program of bridge replacement and Road, Thomastown) in May 1999 strengthening. In 1995, approximately • strong progress on construction of the 150 bridges on declared roads were Metropolitan Ring Road from Edgars identified as being inadequate for B-double Road to the Hume Highway, scheduled vehicles. This has been reduced to fewer than to open in August 1999
ANNUAL REPORT 1998-99 40 • awarding of a contract for the • 42 bridges were strengthened or duplication of the Western Port highway replaced, facilitating greater use by between the South Gippsland Highway B-double vehicles and Thompsons Road • completion of overtaking lanes on the • installation of new noise barriers South Gippsland, Midland and Princes along the Monash (former South Highway West to improve road safety Eastern) Freeway and reduce delays
• a total of $30 million was spent on • upgrading of busy highways by the 16 projects to reduce congestion and construction of sealed shoulders increase safety, efficiency and amenity in accordance with the Linking for businesses and residents in the Victoria strategy growing areas of outer metropolitan • substantial progress on duplicating the Melbourne, including: Bass Highway at Grantville • duplication of High Street Road • development of overtaking lanes and between Cathies Lane and alignment improvements on the Bruthen Mowbray Drive Nowa Nowa route to East Gippsland • provision of a third lane in each • completion of sealed road access to the direction on Moorooduc Highway Mount Baw Baw alpine village between Cranbourne Road and Golf • commenced construction of duplication Links Road of the Goulburn Valley Highway • duplication of Dorset Road between between the Hume Freeway and Canterbury Road and Mountain Nagambie scheduled for completion in Highway. early 2001. Development of infrastructure in key rural corridors included the following:
• a new bridge on the Melba Highway over the Yarra River at Yarra Glen The Metropolitan Ring Road at the Edgars Road exit was completed
• construction progressed on the Calder Freeway. The Black Forest section is due to open in early 2000 and the Woodend Bypass is scheduled to open in Autumn 2001
• strengthening of bridges on Hume, Western and Goulburn Valley Highways to enable introduction of increased vehicle mass limits on 1 July 1999 TRAFFIC AND ROAD Pyrenees Highway at Talbot. Signing aims to make road travel safer USE MANAGEMENT and more predictable for drivers • Implementation of local reforms TRAFFIC SYSTEM including the introduction of 22-metre PERFORMANCE long truck and four-axle dog trailers for MONITORING productivity improvements in the timber The overall travel time per kilometre on industry, and larger trailers for gliders to Melbourne’s arterial road network in cater for this international sport in 1997–98 was similar to that measured in Victoria. 1994–95, even though vehicle travel has IMPROVING TRAFFIC increased by 4.3 per cent during that period. FLOW Another indicator shows that there has been a substantial shift in road freight from urban • On principal traffic routes, a major arterial roads to freeways. upgrading of the Warrigal Road–North Road intersection in Oakleigh was ROAD FREIGHT completed, a significant program of EFFICIENCY works on Stud Road was completed, • Introduction of the National Heavy and further works commenced along Vehicle Registration Scheme, National Wellington–North Roads. In Ballarat, a Driver Licensing scheme and the number of intersection and traffic works commencement of the National were also completed.
Exchange of Vehicle and Driver • Route signing for the Statewide Route Information System (NEVDIS). Numbering Program was completed for • Implementation of all available national all M, A and B class roads and for a reforms in the Second Heavy Vehicle number of C class roads throughout Reform Package, including the Victoria. The Drivers’ Guide to Rural introduction of the national truck Victoria, showing the new route driving hours regulations and national numbers, was published and log book, the transitional fatigue distributed. management scheme and national PRIORITY TREATMENTS guidelines for the assessment of FOR PUBLIC TRANSPORT defective vehicles. VicRoads and DOI undertook a joint • Completion of substantial work leading investigation for improved public transport to the introduction of higher mass limits services along Springvale and Blackburn for road-friendly trucks and buses on Roads as a part of a pilot ‘Smart Bus’ 1 July 1999. initiative. VicRoads is assisting DOI with the development of an electronic information system for bus users to provide information on expected arrival times at stops along Springvale Road.
DEPARTMENT OF INFRASTRUCTURE 42 OTHER ROAD USER TRAFFIC INFORMATION PRIORITY IMPROVEMENTS SERVICES AND INCIDENT MANAGEMENT The Victorian Bicycle Advisory Council was established in November 1998 to provide Incident detection stations and Drive Time strategic policy and program advice to the signs were installed on the Tullamarine Minister for Roads and Ports. VicRoads Freeway north of Bulla Road. completed a number of key projects on the Communications were established between Principal Bicycle Network in metropolitan the VicRoads Traffic Control and Melbourne and on bicycle routes in rural Communications Centre and the traffic cities and towns. Further works on the control centre for CityLink, enabling the Principal Bicycle Network were completed in centres to share traffic information and the Melbourne metropolitan area, including video images. REGISTRATION AND VicRoads is assisting DOI with the LICENSING
development of an electronic information Registration and licensing strategies aim to system for bus users provide effective and efficient driver licensing and vehicle registration, revenue collection
on-road bicycle lanes in Tooronga Road, and driver vehicle information services Malvern and Mt Alexander Road, Moonee covering 3.2 million motorists operating Ponds. Additional works were implemented 3.6 million vehicles. in rural cities and towns, including a bicycle During the 1998–98 financial year, VicRoads underpass on Hopkins Highway in collected $1,697 million in registration and Warrnambool and extension of the Ovens licensing fees on behalf of the State River bicycle path in Wangaratta. Government, Transport Accident Commission, and other government agencies. $110 million was spent on the Better Roads Program in 1998-99 The Victorian Motorcycle Advisory Council (VMAC), established in April 1998, initiated A total of 11.7 million transactions were a workshop ‘Motorcycling and the Road processed by VicRoads for Registration and Environment’ to discuss motorcycle issues. Licensing activities, of which 2.8 million were The VMAC investigated matters relating to from call centres. a Learner Approved Motorcycle Scheme, Projects which have been completed conditions of use of 50 cc automatic include the: scooters and mopeds, and recreational motorcycle riding. • implementation of the registration component of the National Exchange of Vehicle and Driver Information System
• adoption of whole-of-government banking contract, involving Australia Post, for registration renewals • award of a contract for the • a local government road-safety initiative redevelopment of the Driver Licensing was implemented with seed funding System provided to 29 municipalities to develop
• expansion of the range of services municipal road safety strategies delivered electronically in order • VicRoads prepared a submission in to improve VicRoads’ services to response to the Parliamentary Road its customers. Safety Committee Inquiry into Vehicle Works continue on key bicycle routes Roadworthiness Austroads performance indicators show that VicRoads continues to have the lowest • the ‘WalkSafe’ pedestrian safety annual cost of servicing vehicle registration program, which involves engineering, and driver licences. education, publicity and enforcement activities, was implemented in the City ROAD SAFETY of Stonnington
The Victorian Government’s road safety • three educational and promotional strategy, Safety First, continued to be the programs were initiated to encourage basis for the VicRoads Road Safety Program safer driving by new drivers in 1998–99. A broad range of activities to • VicRoads continued to implement the improve the safety of roads, vehicles and recommendations of the Parliamentary road users were undertaken. Significant Road Safety Committee on drugs and improvements in road infrastructure and the road safety. Progress included: treatment of hazardous road locations (black spots and black lengths) have reduced the • developing and implementing number of road crashes and the severity of training programs for the Victoria injuries. Police to assist them in detecting drug-impaired drivers During 1998–99, the following activities are highlighted: • developing information for drivers • improvements were made to 107 road on the effects of drugs on driving black spot and black length sites across • research into role of medications Victoria, with an expenditure of and illicit drugs in fatalities and $12.9 million from federal and serious injuries on the roads. State governments
• Fifteen railway level crossing sites were improved, as part of a $3 million program to upgrade the standard and safety of railway level crossings. Work has also begun on redesigning an additional four railway level crossing sites
ANNUAL REPORT 1998-99 44 PLANNING, HERITAGE AND MARKET INFORMATION STATUTORY PLANNING A set of nine Victorian Planning Provisions Practice Notes, eight Good Design Guide In the past year, DOI has made significant Practice Notes and two General Practice progress in the implementation of new Notes were issued. format planning schemes across the State. The real test of the planning system reform In February, the Code of Practice for will be the shift in cultural thinking from a Telecommunications Facilities came into prescriptive-based planning system to a operation, making Victoria the first State performance-based system. with consistent Statewide requirements for this important category of infrastructure. Under the old system, planners were processors of planning applications. A review of the existing guidelines for Under the new system, the work of environmental impact assessment of planners will focus on implementing the proposals under the Environments Effects Act strategic directions established through 1978 is under way. New guidelines to their council’s Municipal Strategic Statements improve the current Environment Effects and local policies. Statement process are one priority. Guidelines are also being developed for alternative processes that may be appropriate in All new format schemes are being gazetted difference circumstances. with digitised maps and are now available on MEDIUM-DENSITY CD-ROM HOUSING AND DOI will continue to support councils during RESIDENTIAL this implementation period and has already DEVELOPMENT
established a number of initiatives to assist To improve pubic awareness of medium- with the transition. In the past year, a total of density housing policies and local 43 new schemes were submitted for government decision-making processes, a approval, 102 planning permits were issued community information and education and 68,900 planning certificates were issued. campaign was run in early 1999. The Your At the end of June 1999, about 50 per cent Street Your Say campaign included of the total of new format schemes were brochures, radio and print media approved. Post-implementation surveys of advertisements and promotions. This formed councils with operational new planning part of a wider Action Plan on Medium- schemes have returned favourable responses density Housing and Residential Development to the new system and indicate only minor under way since April 1998. problems with the change to policy-based schemes. Further monitoring of the changeover will be undertaken. All new format schemes are being gazetted with digitised maps and are now available on CD-ROM.
DEPARTMENT OF INFRASTRUCTURE 46 DOI is actively supporting the Western Metropolitan Region Councils Forum to create urban design works at six key nodes on the road network
PETER MC EWAN MANAGER, NORTH WEST METROPOLITAN OFFICE (SUNSHINE)
As part of the Action Plan, a package of PLANNING POLICY initiatives is under way to improve the Gaming provisions in planning schemes have linkages between the building and planning been amended, and planning controls over system: Live Sexually Explicit Entertainment and • to prevent illegal demolitions, Building Brothels have been reviewed. Regulations have been amended to A review has been undertaken of Planning require signs on demolition sites Fees Regulations and Penalties under the notifying the public of details of the Planning and Environment Act. A review of authorised demolition activity (including Regulations of Bodies Corporate under the who issued the permit and who is Peter McEwan Subdivision Act is also drawing to conclusion. undertaking the demolition) peter mc ewan •a Practice Note on demolition has been DOI places great emphasis on its partnerships issued, introducing the requirement for with councils, the community, businesses, building surveyors to notify councils of industry, interest groups and professional proposals to demolish a building and bodies. This involvement of all stakeholders is seek advice on local heritage controls. particularly vital to planning. DOI’s ongoing Councils have 14 days to respond dialogue with the Municipal Association of Victoria has been consolidated into a • a review of the special interest continuous improvement program for provisions of the S 2.2(5) of the planning and local government on issues Building Regulations is now under such as linkages between the planning and way to bring considerations of a building systems. building’s special interest into the planning scheme (removing it from DOI’s relationship with other government the Building Regulations) departments such as the Department of Justice on the removal of Restrictive • as part of the Action Plan, $500,000 Covenants and speeding up the VCAT process was made available to local is another example of this partnership governments and related bodies to approach to improve planning and local improve the use of design skills and government outcomes. the quality of local government decision-making. LAND AND 1978 is under way. New guidelines to DEVELOPMENT improve the current EES process are one INFORMATION priority. Guidelines are also being developed for alternative processes that may be Land and development information combines appropriate in difference circumstances. with the statutory planning system to contribute to the achievement of the State’s social, economic and environmental During the year, substantial progress was made objectives. Work on the third edition of the towards establishing a program to monitor the Residential Land Release Forecast, which forecasts the amount, location and timing of Victorian land-use planning system residential land development across all of metropolitan Melbourne over the next MONITORING PERFORMANCE OF THE 10 years, is nearing completion. Quarterly VICTORIAN PLANNING bulletins monitoring residential subdivision SYSTEM activity and residential redevelopment One of the key platforms of Victoria’s bulletins have also been published in Planning Reform Program is an integrated 1998–99. performance monitoring system. DOI is A new product this year has been the currently working with key stakeholders, Industrial Land Monitor, a project undertaken including local government and the broader in consultation with the Strategic Planning planning community, to finalise planning Division and the Department of State system-wide indicators. During the year, Development. This project aims to provide a substantial progress was made towards profile of vacant industrial land in establishing a program to monitor the metropolitan Melbourne and provide Victorian land-use planning system. All new comparisons with other capital cities with format municipal planning schemes now which Melbourne competes. include a performance monitoring section The new Bourke Street bridge provides a pedestrian link to Colonial Stadium that identifies priority indicators for ENVIRONMENT monitoring at the local level. ASSESSMENT
During the year, 22 EES requests were made. DOI coordinated the EES process for 14 projects, six of which were completed and put on exhibition. Independent panels were appointed to consider seven EESs and related submissions. Minister’s assessments were issued for several projects.
A review of the existing guidelines for environmental impact assessment of proposals under the Environments Effects Act
ANNUAL REPORT 1998-99 48 URBAN DESIGN RESEARCH AND POPULATION Urban Design continued to support the PROJECTIONS objectives of the new planning system with An important objective of DOI has been the policy advice, made a contribution to provision of high-quality information to planning notes and provided statutory design enable good planning of Victoria’s future. advice in numerous projects including several A major contribution to this has been the Southbank residential projects, Melbourne completion of a new set of population University Private, Crown Casino, the Sports projections based on the 1996 census. The and Entertainment Precinct and Docklands projections, which will be available in both Transport Infrastructure. Libby Porter print form and on CD-ROM, estimate Victoria’s population by local government libby porter Policy development demonstration projects area to the year 2021, and include and studies completed included the information on age groups, sex, total Sandridge Rail Bridge and Northbank Urban Research and the households and household size. A report, Design Framework, the draft Southbank development of Victoria in Future, highlighting the most Structure Plan, the Inner Melbourne important aspects of population change in perspectives on Foreshore – Gateway to the Bay, and the Victoria to 2021, as well as a series of Woodend Urban Design Framework. how and why background papers, will be available. The Melbourne is DOI has sponsored the UNESCO International background papers include analyses of future Centre for Engineering Education’s urban population change for Melbourne and changing underpin design and education program, including five regional Victoria, overseas, interstate and our capacity to education, research and promotion projects within-State migration, natural increase, and prepare and plan of relevance to DOI. The sponsorship also the methodology and assumptions included urban design awards through a underlying the project. for change in the number of professional associations (RAIA, future AILA, BDP, BDA and NAWIC).
Urban design seminars held included the LIBBY PORTER SENIOR RESEARCH OFFICER exhibition ‘Gardens in the Sky’ and RESEARCH UNIT ‘WaterEdge’ (international) in association with the sponsorship of the City Edge Conference and occasional seminars for urban design professionals. Web sites were established for Pride of Place, the Residential Design and Development Fund and the Urban Design Forum. The conservation laboratory is part of Heritage Victoria’s team of specialist heritage professionals who work towards identifying, protecting and interpreting Victoria’s most significant cultural heritage resources
JENNY DICKENS CONSERVATOR HERITAGE VICTORIA
In May 1999, Towns in Time, a survey of consequence of local authorities ignoring demographic and other information for all their heritage conservation responsibilities in towns in Victoria, was released. In addition the past and not being in a strong position to demographic information, Towns in Time to act when public pressure is applied. provides information on the labour force, Final expenditure against the Government religion, and household income for all census Heritage Restoration Program was completed Jenny Dickens years from 1981. DOI has also published a along with an evaluation of the economic range of other products (From Doughnut impact of the program. This has City to Café Society – video and report, The demonstrated previously unrecognised value Story Behind the Numbers, the quarterly in undertaking such restoration works and Research Matters and the Victorian provides a valuable tool for the management Population Bulletin, as well as numerous of future funding programs including the papers at conferences and in professional recently announced Public Heritage Program. journals) designed to make demographic and other information available. DOI also PRIDE OF PLACE organised a seminar on Lifestyle and Housing PROGRAM
Choices in October 1998. The 1997–98 Pride of Place program has now been fully paid out. This pilot program HERITAGE CONSERVATION provided $3.2 million to encourage improved Heritage Victoria continues to work towards urban design processes and to support standardised heritage controls in new examples of good design in practice. It municipal planning schemes by providing funded 72 projects across regional and assistance and advice to local government. metropolitan Victoria, with initiatives ranging Fifty local councils received financial from major strategic studies (Urban Design assistance towards the employment of Frameworks) and capital works projects, to heritage advisers during the past year. DOI is smaller studies where individual urban also providing financial assistance to local designers worked with councils on specific government to undertake necessary heritage issues or to improve council processes. surveys. This study program is a critical The May 1999 State Budget provided for a element in the policy to equip local new, $9 million, three-year Pride of Place authorities to take responsibility for heritage program to extend the work of the pilot conservation in their municipalities. The Pride of Place program. The submission for extensive concern about the loss of heritage the new program was based on an economic places in the face of medium-density redevelopment schemes is largely a
DEPARTMENT OF INFRASTRUCTURE 50 assessment of the pilot program that was DOI released a revised Victorian Code of able to identify and measure the economic benefits that flow from improved design Practice for the Building and Construction processes and techniques. The new program Industry will again promote the use of urban design frameworks and skilled design advisers and with 90 organisations over a period of nine will ensure that individual projects are well months. The Victorian Code was initially coordinated with councils’ Municipal released in 1994 and it has led to a greater Strategic Statements. The program will be understanding by government clients, relaunched in August and will include a contractors and consultants on best practice series of regional information sessions. relating to tendering and in improving industry performance. The revised Code LAND TRANSACTION incorporates the National Code and MONITORING provides a separate section for the selection Land Monitoring continues to maintain and of consultants and contractors and administer the government policy on the notes various improvements to the purchase, compulsory acquisition and sale of tendering process. land, and to provide government with an DOI is investigating the possibility of assurance of compliance. A review of the achieving greater efficiency and effectiveness Land Acquisition and Compensation Act, in through the integration of the specific conjunction with the Department of Justice, regulatory regimes following the Review of is nearing completion. The Government the Architects and Building legislation. policy and instructions on the purchase, compulsory acquisition and sale of land has been reprinted to reflect the revised role of the Valuer-General.
BUILDING POLICY
Building Policy has actively pursued the standardisation of building and construction contracts across the public sector and supported a nationally consistent policy via the Australian Procurement and Construction Council.
In conjunction with major building industry associations, DOI released a revised Victorian Code of Practice for the Building and Construction Industry in March. The revised Code was subject to extensive consultation Minister for Planning and Local Government, Robert Maclellan INTERNATIONAL RELATIONS
BUILDING SERVICES The Minister for Planning and Local AGENCY Government continued to represent Building Services Agency (BSA), providing a Melbourne as a member of the Metropolis range of consultancy services predominantly Association, an international forum of to the public sector, was sold in April to political, administrative and technical Australia’s largest technology consulting decision-makers from the world’s major group – Sinclair Knight Merz. BSA was cities. The Minister, who is also Executive established as a service agency in January Vice-President of Metropolis chaired one of 1996 and has been a self-funding the four standing commissions, which commercial consultancy since that date. conducted a major international study The sale followed a Cabinet decision made in examining the impact of airports on 1998 to seek registrations of interest from metropolitan development. DOI coordinated the private sector to purchase the existing and project-managed the study and obtained workload, good will and staff of BSA. The information from 40 airports from around sale was part of the Victorian Government’s the world. The issues canvassed in the study policy to remove itself from activities that can related to economic and urban development, be delivered by the private sector in the transport planning, environment impact, market place. Ninety per cent of staff were social, cultural and political influences, and offered positions with Sinclair Knight Merz the strategic role of government in the face and the transition of more than 100 staff of franchising. occurred without industrial action. The findings of this study were tabled by the Minister at the Metropolis Congress in March 1999. The report was well received and is available on CD-ROM.
ANNUAL REPORT 1998-99 52 ORGANISATIONAL ACTIVITIES PEOPLE MANAGEMENT individual and team performance management, recognition and reward and DOI’s people management strategy supports training and development. DOI is also actively its business goals and objectives through the encouraging and rewarding cooperative development of a collaborative organisational behaviours: providing opportunities for culture and organisational capabilities - employees to work across DOI, its agencies innovation, flexibility and responsiveness, and the public sector on a range of projects leveraging intellectual capital, working across and contribute to Victorian Government internal and external boundaries and the projects; and utilising a sound technology creation and sharing of knowledge. platform and exploiting innovative tools such The people management strategy strengthens as Teamrooms. organisational capabilities and reinforces organisational values through its integration LEARNING ORGANISATION with a number of potentially discrete strategies (for example, information DOI is committed to the concept of a flexible and adaptive learning organisation and to excellence in its training and development. DOI is building a collaborative culture that Training activities are built around key encourages innovation and the creation and organisational competencies, including sharing of knowledge project/contract management, financial and generic management, statistical/analytical technology, knowledge management, techniques and information technology organisational performance management, /knowledge management. financial and contract management, business Management/Leadership and Accelerated processes, communication) and its links to Development approaches encourage the corporate and business planning. undertaking of diverse work-based projects In particular, the interlinked people and mobility opportunities. management and information technology DOI has achieved national recognition for strategies provide the basis for resourcing these approaches with the award of Public and managing DOI’s service delivery, Enterprise Employer of the Year – Victorian providing the tools and systems architecture Training Award in 1998. The Award and the skilled and motivated workforce. recognises the important contributions made by employers, training providers and learners COLLABORATIVE CULTURE towards building a world-class education and DOI is building a collaborative culture that training system. DOI is part of an elite group encourages innovation and the creation and of organisations that represent Victoria’s best sharing of knowledge. Key actions have in training. included the integration of approaches to organisational design, recruitment, retention,
DEPARTMENT OF INFRASTRUCTURE 54 The DOI Open Seminar Series continues to It also focuses on the identification of the provide the opportunity to share knowledge competencies and behaviours required by on cross-government and cross-sector issues. each employee and their individual The seminars also highlight current development needs. achievements and future direction of major In October 1998, an Employee Survey was projects and policies across DOI. undertaken online and 76 per cent of staff responded. The survey was built around the MOTIVATING AND MANAGING EMPLOYEES framework developed by the Australian Jenny Singleton and Louise Hill assess the results of the Employee Opinion Survey Quality Council and enabled benchmarking DOI has continued to focus on building a against a database of over 500 companies. positive and healthy organisational culture in DOI received a healthy satisfaction score, which employees have a high level of job however, the survey highlighted a number of satisfaction. The employment environment is areas for improvement. DOI and each division industrially harmonious with reduced sick have established working groups of staff to leave usage and turnover rates. develop improvement strategies. DOI will DOI acknowledges the importance of continue to monitor staff opinions and will motivating employees to achieve excellent undertake a second survey in March 2000. performance and to retain critical skills and DOI has reported against the Commissioner experience. Along with the employment and for Public Employment’s Directions issued conduct principles established in the Public under S37(1)(b) of the Public Sector Sector Management and Employment Act Management and Employment Act 1998. 1998, the DOI Certified Agreement, All HR Policies and processes are reviewed negotiated with staff in December 1997, regularly and are available to all staff on provides the framework for a positive and the intranet. productive relationship between DOI and
its employees. UPHOLDING PUBLIC SECTOR CONDUCT The Performance Management and Pay System provides for the linking of individual DOI has adopted the VPS Code of Conduct. It performance to organisational performance, is distributed to new staff and available to all from individual performance plans through staff electronically. The DOI Ethics Policy links to divisional and departmental business a number of related HR policies that support plans. The process stresses open two-way high standards of performance and ethical communication and feedback. It seeks to conduct. An Appropriate Use of Resources acknowledge the performance of and reward Policy, which focuses on the use of electronic those who have exceeded expectations. communication, has been prepared and made available to all staff. The Certified Agreement, through the Dispute and Grievance Resolution Procedure, establishes a process that can be accessed confidentially to address staff concerns in this area. SELECTING ON MERIT
Louise Hill Recruitment guidelines support and promote the principles of selecting on merit. Decisions to exempt vacancies from advertisement relate mainly to the reclassification of DOI’s corporate REVIEWING PERSONAL individual positions and the promotion of the GRIEVANCES incumbent (27). Each case is evaluated using
planning framework DOI’s Grievance Policy will accept any work value assessment tools, including has served it well in grievance, providing it is not trivial or benchmarking. Divisional executive groups developing key skills, vexatious. Two grievances were lodged are encouraged to discuss recommendations during 1998–99 and both were resolved to ensure a consistency of approach. Several systems, relationships during conciliation. executive positions have been filled without and culture, in advertisement due to transfers from portfolio MANAGING AND VALUING agencies (2) and specialist and urgent skill supporting an DIVERSITY requirements (3), particularly in the newly effective partnership DOI values the contribution of a diverse created Public Transport Division. workforce. All HR policies support the between DOI and its PEOPLE LEADERSHIP principles of equal employment opportunities agencies and the removal of employment barriers. A The senior management of DOI is committed flexible and supportive workplace is provided to the collaborative organisational model LOUISE HILL through: flexible working hours, Carers which promotes and supports innovation, DIRECTOR CORPORATE PLANNING Leave, a Working From Home Policy, Elder lessens hierarchies, delegates accountabilities, and Child Care Referral Services, a School and breaks down the barriers between Holiday Program, Employee Assistance work groups. Program and a Carers’ Room. DOI employees The leadership approach is one of setting the use the workplace programs and policies performance requirements, providing the regularly and there is explicit tools and the information required, acknowledgement of the changed working supporting adequately managed risk taking, environment and the need for individuals to promoting and demonstrating ways of balance work and personal priorities. DOI’s working together and the behaviours policies also support attraction and retention described in this document, and then letting strategies. There has been a 3 per cent individuals and teams perform. It also seeks increase in female employees over the past to encourage collaboration between agencies 12 months and the proportion of women in and DOI, while respecting organisational management (VPS-5 and EO positions) is identities and branding. The co-location of 35 per cent. DOI’s regional functions in the VicRoads network of offices and the development of close working relationships have been examples of this approach.
ANNUAL REPORT 1998-99 56 InfraWeb project team (L-R): Andrea Appleby, Irene Kalister, Jillian Hiscock, Sally McIntyre, Peter Bon, Joanne Hall, Howard Quenault DOI’s Executive is actively modelling and supporting the behaviours required and has adopted a matrix management model in The Intranet is the linchpin for staff which each member of the Executive is responsible for one or two regions delivering communications and access to information a range of DOI programs, in addition to their functional responsibility. The InfraWeb site creation and management is via Lotus Notes (the government-preferred It recognises that open communication and email, workflow and database software) consultation with staff are essential for the which all staff currently use. This eliminates development of the high level of trust the need for specialist HTML skills that are needed, across the organisation and with its normally used to create traditional web sites. stakeholders, for the collaborative model to deliver the performance outcomes required. It is a critical component supporting the overall performance of the whole Regular forums of staff are held to organisation. The InfraWeb is directly linked communicate key DOI strategies and projects. to building organisational performance DOI’s Knowledge Management Strategy is through the development of core developing and promoting timely access to, competencies and a collaborative and sharing of, key information and organisational culture. knowledge and is a major contributor to the collaborative organisational model. SOCIAL CLUB
DOI Social Club has now been operating for STAFF ONLINE two years. In this time, membership numbers In April, DOI launched InfraWeb – DOI’s web have grown to approximately 175, with the environment. It is an umbrella name majority based at 80 Collins Street while a encompassing all the corporate web-based small number are scattered throughout DOI's services - access to the Internet (World Wide regional offices. Web), future extranets (closed networks with With membership representing approximately business partners) and a new Intranet - an 25 per cent of total staff, it is our long-term internal website for DOI staff. objective to encourage all staff to participate The Intranet is the linchpin for staff and enjoy the many savings and benefits that communications and access to information. only larger numbers can provide when It is based on the foundation of a common purchasing in bulk. desktop and joins many disparate systems.
It makes online access universal across DOI and provides staff with one ‘user-friendly’ location to find information, resources, people, projects and news about their workplace. A key requirement for meeting online initiatives is the provision of a robust and scalable IT infrastructure
PETER BON INFORMATION TECHNOLOGY CONSULTANT
INFORMATION basis for resourcing and managing DOI’s TECHNOLOGY service delivery, providing the tools and systems architecture, and the skilled and DOI reviewed its 1997 IT Strategic Plan motivated workforce. during the financial year, resulting in the development of a new 1999 Business InfraLib, DOI’s Knowledge Exchange, is a vital Peter Bon Technology Plan, which will guide the component of both knowledge management application of information technology to and the commitment to continuous learning, peter bon achieve DOI’s business goals over the next with full desktop access to many library two years. services.
The 1999 Business Technology Plan, A comprehensive knowledge management recognising that a sound IT platform was the and information technology training program major outcome of the previous plan, specifies aims to provide all DOI people with the skills that the focus of the 1999 Business necessary to gain the maximum leverage Technology Plan must be: from the IT platform, utilising tools available in the Common Desktop Services • enhanced information management Environment, including Lotus Notes • development of strategic applications applications, InfraSearch, Teamrooms, • design of new business capability. Electronic Document Management and the InfraWeb (distributed authoring). In alignment with this focus, the four primary themes of the 1999 Plan are: A computer-based learning centre has been established and group and individual tuition • supporting the business is available. Project teams can access • sharing information and exploiting Teamroom support to establish new knowledge Teamrooms and train team members. • enhancing and exploiting the IT DOI’s information technology operation has platform matured since the creation of DOI in 1996. • enhancing IT service delivery. Today, DOI has a consistent, defined, Information technology is now widely positively managed IT environment that embraced across DOI. In particular, the promotes online activity and allows new interlinked people management and initiatives to be introduced quickly. All staff information technology strategies provide the have access to a rich suite of services
DEPARTMENT OF INFRASTRUCTURE 58 Year 2000 consultants William Fleming and Peter Moss at a staff awareness session with Dr John Paterson replacing the few basic packages that existed BUSINESS SYSTEMS previously. These include Internet services, The 1999 Business Technology Plan details a online forums within Lotus Notes, and access comprehensive system development program to relevant financial and HR data. Whole-of- which will acquire or create the business government standards have been adopted systems required to achieve DOI’s business to promote better communication goals, against the whole-of-government IT between agencies. policy framework. This framework provides DOI has focused on implementing leading overall guidance to IT activity across edge tools to maximise business information government and in particular for the major and knowledge sharing across the portfolio Year 2000 and Government Online 2001 and this investment is now producing programs. Highlights from the 1999 Plan are dividends and will provide an important described below: springboard for new ways of working. A good example of this is the increasing use Today, DOI has a consistent, defined, positively of Teamrooms to manage DOI’s business across divisions and agencies. A Teamroom managed IT environment that promotes online was established to facilitate the development activity and allows new initiatives to be of Rural and Regional Strategies across introduced quickly government, which enabled instant group communication and the development of YEAR 2000 concepts between agencies as well as within DOI. DOI has completed an extensive program of work that has addressed the Online information links with local repair/replacement of all critical IT systems, government will help transform the embedded technology, and supply chains. relationship with that sector. This will not Comprehensive contingency plans have been only address ‘compliance’ and reporting, but developed by every business unit, and a will also enable information sharing for detailed transition plan for the lead up to improved interworking in planning, roads and early weeks of 2000 has been and other fields. documented. The DOI Year 2000 Transition Plan includes an Emergency Operations Centre which has its own power supply and the capacity to support up to 30 DOI people and essential equipment to maintain critical business processes, should this be necessary. GOVERNMENT ONLINE VICTRIP
One of the main objectives of the VicTrip is the centralised information centre Government Online 2001 commitment is to for all Victorian public transport services. improve customer service and provide wider It is an integral component of the privatised access to government information. This public transport system and has now been involves better integration across traditional established as a private company, jointly boundaries so customers do not need an owned by the franchise operators and the intimate knowledge of government processes Director of Public Transport. The centre will and terminology to get what they need, provide extensive timetable and related when they need it. information on public transport services (that is, train, tram and bus) across the whole In April 1998, Cabinet endorsed a series of State through call centre facilities, Internet targets for delivering government services services and eventually through kiosks in online. Targets establish a series of eight public areas. The system will be dates by which various forms of information, comprehensive and will include trip planning, services and transactions will be available ticketing and reservation services. It is online. DOI has completed audits of expected that VicTrip, in its new format, will information and transactions and prioritised be launched in September 1999. online projects. In delivering services online, DOI is seeking to exploit the opportunities to undertake business electronically and deliver New smart cards will be supplied to members services differently. and taxi cab drivers by October 1999 DOI’s Internet site www.doi.vic.gov.au is continually updated to provide current TAXI OPERATIONS information about recent initiatives in planning, local government, major projects, The Multi Purpose Taxi Program re- building, heritage and public transport. engineering project will be implemented by the end of December 1999. The Program DOI is well advanced in the adoption of provides a 50 per cent discount on taxi fares e-business capabilities to transform its for Victorians with severe or permanent operations. All of the targets specified in the disabilities that limit their mobility and government’s Online 2001 program have prevent them from using other forms of been achieved. public transport. Cabcharge will collect the Three key projects illustrate the dramatic majority of online data in conjunction with improvements that can be gained: any other supplier who is able to meet the criteria for the transmission of data to the Victorian Taxi Directorate. New smart cards will be supplied to members and taxi cab drivers by October 1999. A full trial of the new system will be conducted in Geelong during October.
DEPARTMENT OF INFRASTRUCTURE 60 VERS@DOI KNOWLEDGE MANAGEMENT Howard Quenault DOI is piloting the Victorian Electronic Records Strategy (VERS) which is breaking DOI has put in place a comprehensive new ground in relation to the management Knowledge Management Strategy. The of business records for the long term. objective is to bring about performance improvement and added value by providing No such system currently exists for long-term Knowledge a solid basis for the capture and management of electronic records and this is Management transformation of information, and the a problem for governments everywhere. creation of new knowledge through connects people to Business records in this context refers to the innovation. people and information (hard copy and electronic) that To draw more effectively on the ‘tacit provides a complete and authenticated information. VERS knowledge’ of DOI, a collaborative approach record of the business activity. to business situations is required. This has will achieve this over VERS@DOI aims to capture more been demonstrated through a number of the long term and is comprehensive, accurate, reliable and cross-divisional multidisciplinary projects. The a groundbreaking usable records of organisational activity to Rural and Regional Strategy Project, using a meet legal, evidentiary and accountability Lotus Notes Teamroom to facilitate the initiative. requirements. exchange of knowledge across five regions Implementation of a VERS-compliant record- and four departments, was one of the early HOWARD QUENAULT KNOWLEGE MANAGEMENT keeping system will enable staff to capture, examples. Further Teamrooms have been set CONSULTANT view and retrieve identified types of up to help the transfer of information. electronic records to/from an archival store, Technology, though, is only part of the with the guarantee that the records are solution; attention must also be paid to complete and accurate. The capture, viewing supporting staff in the changing business and retrieval will be possible irrespective of environment. Support, through the use of the software employed to create, use or training and coaching has been augmented retrieve the record. by a positive management attitude to The project will encapsulate electronic promote sharing and knowledge exchange. information into the VERS format (published The initial steps in this process have been the by the Public Record Office Victoria) which development of the Knowledge Management delivers XML-based electronic objects Level 1 and 2 training. Level 2 includes containing metadata and the electronic publishing to the Intranet. The objective is to information coded into a set of standard provide a half-day session for all staff at least formats (documents will be stored in a twice a year in the use of knowledge and PDF format). information sources. CAPTURING AND and time-saving tools. This innovative system ACCESSING KNOWLEDGE Staff training: Tess Williams, Peter Woodyard and Andrea Appleby was developed in close consultation with In addition to the traditional communication users and complements Victorian approaches such as the face-to-face meeting, Government contracting guidelines and telephone, fax, electronic mail and letters, policies.
DOI has implemented a spatial and text- Other significant inputs to DOI’s capability in based searching tool allowing simple and high-level contracting were: consistent identification of a range of • the establishment of a panel to provide information sources. The metadata to DOI's expert legal advice store of hard copy and electronic information is now accessible as is a wider set of • the customisation of contract forms to information across the Victorian Government meet DOI requirements within the and beyond via the Internet. whole-of-government framework established by the Victorian Government DOI has developed a number of metadata Purchasing Board (VGPB) and the stores through its initiatives in records Victorian Government Solicitor management, Infralib and Lotus Notes • a DOI contracting profile to assist DOI metadata repositories. The consolidation of to better manage its contracting hard copy file and document metadata into a activities corporate-wide records management environment has improved the capacity of • a plan to rationalise access to contractor staff to locate and retrieve required registers operated by DOI and make information. The availability of the InfraLib them readily accessible and searchable catalogues and spatial or GIS metadata tools by users (to be implemented in 1999)
extend the range of information sources and • a DOI Asset Disposal Plan objects available to all staff. • a Strategic Procurement Planning CONTRACT methodology for delivery of DOI MANAGEMENT outputs, derived from a study of Heritage Victoria. DOI has underlined its commitment to provide leadership in standards of contracting and contract management through the establishment of a centre of expertise. The Contracts Unit provides a central policy, consultancy and support capability while operational contracting is devolved to divisions.
This year’s major initiative was the development of Contracting DOI, an online system providing practical contracting advice
ANNUAL REPORT 1998-99 62 Stephen Gregory, Bob McDonald and Tania Borg check the figures
CORPORATE FINANCE RAIL CORPORATIONS – FINANCIAL SUPPORT
MANAGEMENT Significant support was provided to assist the INFORMATION REPORTING SYSTEM corporatisation of the rail business during 1998-99 in the lead-up to the franchise Complementary to the introduction of agreements. On behalf of the Department of accrual-based output management has been Treasury and Finance, Corporate Finance the phased development of the Management Division established budgets and financial Information Reporting System within DOI targets for the five corporations, introduced utilising the Gentia software suite. The initial a standardised suite of financial reporting phase has seen the deployment of a desktop requirements and managed a range of monthly electronic report with direct access budget and financial issues during the year. to Oracle general ledger data. The information is presented in a multi- ASSET MANAGEMENT dimensional tabular or graphical form and A major review of DOI’s asset management can be viewed directly in a standard procedures was undertaken during the year spreadsheet environment through the and new policies and procedures were ‘Excel add-in’. introduced to all nominated managers to ensure appropriate custodianship for The drive for efficiency has resulted in the DOI assets. automation of tasks that were previously To support the new arrangements, a new labour intensive database system was developed which enables nominated staff to provide online Future challenges include the addition of advice on asset acquisitions, transfers and human resource inputs and public transport, disposals in a format which can readily local government and planning performance update the asset management module within data. This will enable managers to view both the Oracle financial system. financial and non-financial performance across all outputs of DOI. The database provides a number of forms with fields with drop-down option boxes that are easily completed and are electronically transmitted to other appropriate areas of DOI. FINANCIAL SYSTEMS evaluation and for whole-of-government
e-commerce is changing business processes IMPROVEMENTS application. Other software products were
The Corporate Finance Division has also evaluated for their suitability to meet implemented a number of enhancements to DOI requirements. At the same time, reviews DOI’s financial system over the course of the were conducted of current business practices year. The drive for efficiency has resulted in and purchasing patterns to develop a the automation of tasks that were previously purchasing profile and model which can be labour intensive. The financial statement used within the electronic environment. DOI process for both DOI and the whole of is in a strong position to take advantage of government has been simplified with new or the benefits from e-commerce when a system updated systems. Cash management and is finally chosen. treasury functions have been assisted with a PREPARATION FOR new Oracle module. The move to online NATIONAL TAX REFORM systems has been advanced with the development of an electronic system for the National tax reform presents a substantial distribution of Purchase Orders via email or challenge to all organisations including fax. In addition, the Division has thoroughly government agencies, as they are now tested the financial systems of DOI to ensure treated in a similar manner to private-sector they are Year 2000 compliant. business. DOI is well placed to meet its responsibilities The continual advances in technology, as well in this matter and has established a task force within the Corporate Finance Division as the need to review business processes, that includes representatives from all service make this a critical project for DOI areas of DOI. This task force reports to central government, which is coordinating E-COMMERCE the introduction of GST government wide.
The challenge of e-commerce and the During the latter part of 1998–99, implications for DOI will be the main systems preparatory and analysis work began but the focus over the next year. The continual major component of the changes will occur advances in technology, as well as the need during 1999–2000 and later years. to review business processes make this a critical project for DOI as a whole. There is little doubt future business transactions will be increasingly performed online and DOI is positioning itself to ensure that the right decisions are made on products and efficient business practices. To this extent, Corporate Finance Division conducted a trial of a new version of Oracle financials for both a DOI
DEPARTMENT OF INFRASTRUCTURE 64 INFORMATION INTERNAL AUDIT MANAGEMENT Staff can access DOI’s spatial information via InfoSearch The Audit (Financial Management) A corporate information management unit Regulations 1993 require a DOI head to has been established to improve the quality, establish and maintain an Internal Audit compatibility and accessibility of DOI’s Committee to oversee and advise on matters information assets. This will better enable of accountability and internal control staff to take advantage of the comprehensive affecting the operations of DOI. The DOI technology infrastructure now in place. Internal Audit Committee was established in March 1997 and the internal audit services DOI is both a creator and importer of had been outsourced to Price Waterhouse. strategic data but, until recently, has had limited experience of sharing these between The Internal Audit function is an important business units. With the introduction of aspect of the organisation’s control structure information management tools, including and thus of its corporate governance defined spatial data standards, consistent framework. The following aspects are valued metadata recording (a type of catalogue for by DOI as particularly important:
data), a corporate file server for core data • maintaining internal controls, fostering sets and a Lotus Notes based spatial an ethical environment and reviewing information search tool (InfoSearch), the accounting and reporting practices ability to locate and access information has • developing an annual audit plan, increased dramatically. achieving quality audits and maintaining This capability will be augmented by planned open lines of communication between initiatives, including the preparation of an DOI, internal auditors and the Auditor- information management plan, a high-level General corporate data model, a register of • fostering an environment that information assets and the further encourages management to utilise development of desktop tools for classifying, Internal Audit as a service to assist in locating and viewing DOI data. the development and application of appropriate risk management strategies. MEMBERS OF THE AUDIT COMMITTEE In April 1998, DOI determined that its internal audit services will continue to be John McMillan (Chair) contract managed, and that there will be a (Dr) John Paterson public tendering process to select a Jon Hickman contractor. Following an intensive selection Sue Jaquinot process, HLB Mann Judd was appointed in Dick Roennfeldt January 1999 to provide the internal audit Howard Woodall (External member) services for the period of three years. VICTORIAN recruitment/development schemes, with a GOVERNMENT further 23 graduate/interns who have INITIATIVES participated in the organisation. A comprehensive mentoring program is YOUTH INITIATIVES available for graduates as part of the scheme.
Government Youth Initiative graduate Anita Di-Pasquale working in YOUTH EMPLOYMENT Corporate Public Affairs YOUNG ACHIEVEMENT DOI is committed to the training and AUSTRALIA development of promising young adults and DOI is sponsoring the Young Achievement appointed seven post-secondary students in Australia (YAA) business skills program for 1998–99 as part of the Government’s Youth the fifth year running. YAA is a non-profit Employment Initiative. The young adults organisation that facilitates business learning are appointed for 12 months and provided programs between industry and the youth of with direct experience in different areas of Australia. As well as the provision of an up- DOI. Two were made permanent from the front grant of $3,300 and a venue for weekly previous year. meetings, four DOI staff members act as mentors to a group of students participating WORK EXPERIENCE in the five-month program. DOI also provides opportunities for practical work experience placements for secondary WOMEN’S INITIATIVES students. A total of 10 students completed DOI is committed to the Government’s one to two week placements with DOI in strategy in providing a safe, secure the areas of Information Technology and environment and to ensuring that women Administration. need not fear for their safety. A comprehensive strategy to develop Victoria DOI is committed to the training and as a State with high living standards and a competitive economy is considered necessary development of promising young adults to achieve this.
GRADUATE RECRUITMENT AND DEVELOPMENT
DOI's Graduate Recruitment and Development Schemes aim to recruit young people into the organisation who have the potential to develop the skills and capabilities necessary for the future success of the organisation. Each year, DOI recruits between five and 10 graduates and also offers many internships. Since 1997, 16 graduates have been recruited to DOI through the VPS
ANNUAL REPORT 1998-99 66 To date DOI has participated in the following POSITIVE AGEING DOI is improving access and safety for older Victorians through activities: In December 1997, the report on the Inquiry public transport, the roads and urban environments • the establishment of an into Planning for Positive Ageing, conducted interdepartmental committee and a by the Family and Community Development cross-portfolio reference group to Committee, was tabled in the Victorian • improved the safety and mobility of consider options for implementing a Parliament. The inquiry report, which older Victorians using the road system whole-of-government strategy on contains 260 recommendations, investigated by continuing to develop standards and violence against women an extensive range of policies, programs and implement road treatments, such as • the instigation of reforms to the taxi issues affecting older Victorians. installing devices at pedestrian crossings to assist slow-moving pedestrians, industry which resulted in improved CREATING A VICTORIA FOR and providing for the operation of low- safety, driver courtesy, lifting the image ALL AGES and performance of drivers and floor buses An Action Plan for Older Victorians has been operators and thereby increasing the • improved infrastructure to maximise produced in order to respond confidence of women to use taxis access and safety to public transport for comprehensively to the recommendations • the trialling of surveillance cameras in older Victorians by: contained within the inquiry report. The plan Melbourne’s taxis to curb violence and comes at the start of the United Nations - continuing to provide discounted increase the safety of drivers and proclaimed International Year of Older public transport fares to Seniors passengers Persons 1999 and marks a commitment to Card holders, free public transport • the establishment of the Pride of Place achieve the International Year’s theme of to Victorian seniors during Senior program to address urban design issues ‘Towards a Society for All Ages’. Citizens Week and half-priced taxi including those relating to community fares (to a maximum of $40) for The plan provides a broad policy and safety and improvement in the quality people who are unable to use planning framework for the Victorian of the urban environment public transport Government’s strategic activity for older • the launch of the Victorian Local people and has identified the key, long-term – improving lighting and Government Women’s Charter, which guiding objectives the Government will communications systems at all aims to improve women’s participation work to achieve. It includes the initiatives stations and on trains and at all levels of government already undertaken or to be undertaken by installing closed-circuit television • a review of the taxi drivers’ training individual departments. surveillance at stations courses specifically in relation to In this context, DOI has: – increasing the number of customer customer service • enhanced the safety and mobility of service employees to assist those • the establishment of the Night Rider older Victorian drivers and pedestrians using public transport services service to provide safe late-night travel through the production of a range of – providing ramps at railway stations • support for the Women’s Planning multilingual resources and implemented and portable wheelchair ramps to Network (Vic.) Inc. in promoting the programs and seminars, such as the assist people in wheelchairs to role of women in all aspects of the Older Drivers Handbook and the Safe board trains safely planning and development process and Drive and Walk Safe programs in a numberof studies relating to women’s issues, including public transport. Cross-cultural training is provided to staff The Heritage Council is in the process of developing a Victorian Heritage Strategy. As involved in customer services. part of this process, Heritage Victoria staff identified the need for/to: • continued to improve urban environments to enhance public safety • greater emphasis on multicultural and and maximise participation through: immigration history; • consider a wider range of cultural values – implementing a system of parking in assessment of heritage significance; permits for older people who are and frail or have a disability through local government authorities • the Victorian Heritage Register to have a better representation of non – – ensuring that current and future Anglo/Celtic places and objects. amendments to the Building Code VicRoads has introduced multilingual touch- of Australia 1996 incorporate screen computerised licence testing in all provisions in compliance with the Registration and Licensing offices. Commonwealth Disability Discrimination Act 1993 The public transport VicTrip web site is being upgraded with inclusion of text in languages – providing $3.4 million under the other than English. The web site provides a Pride of Place program to improve range of information including timetables on the design of the urban public transport services throughout Victoria. environment, addressing issues of As part of the implementation of the new community safety and access. automated ticketing system, information to
MULTICULTURAL assist public access to Metcard Help Line has SERVICES been listed in 12 languages.
DOI is committed to developing and The Taxi and Tow Truck Directorate sustaining and organisational culture in encourages the hire and special purpose which policies, practices and services are vehicle industry to provide services which adapted to the needs of a diverse and match their linguistically diverse range of evolving community. One of such policies is customers. the availability of leave for cultural purposes. DOI provides funding to local government At VicRoads, staff are briefed on equal interpreting/translating services. Funds are opportunity and cultural diversity principles allocated to municipalities on a needs basis. and legislation. VicRoads also provides Cross-cultural training is provided to staff information to the public on expenditure on involved in customer services. multicultural communications. Most of the publications produced by DOI are available in several languages. The Public Affairs Branch seeks advice on individual campaigns to ensure that the intended audiences for information are reached.
DEPARTMENT OF INFRASTRUCTURE 68 STATUTORY AUTHORITIES ARCHITECTS • reviewed regulations which have been REGISTRATION BOARD approved by Parliamentary Counsel for OF VICTORIA consultation following the NCP Review and review of fees and charges CHAIRPERSON: MR ROBERT MC GAURAN • improved office procedures and enhanced services to the public and ROLE OF ORGANISATION profession through the upgrading of
The Board’s role is to administer the office systems for Year 2000 compliance Architects Act 1991 and regulations made • contributed to a national review of under the Act. assessment and registration, adopting
The Act requires the Board to: the national examination and professional competencies • maintain a register of architects, including architectural companies and • conducted annual review visits to the partnerships approved schools of architecture in Victoria • regulate the professional conduct of architects • reviewed and made improvements to the complaints and disciplinary • regulate the use of the words architect, procedures conducted by the Board architecture, and architectural to ensure that any person or firm claiming those • sponsored the annual Professional titles, or who use them, is properly able Practice Award recognising excellence in to do so. achievement by architecture students • sponsored the Backlogue Journal which Arising from these responsibilities, the Board promotes excellence in urban and assesses architects for suitability for architectural design registration and assesses and accredits courses for architecture. • adopted and developed guidelines for implementation of the Trans Tasman Staff: 1 exec., 3 non-exec. Agreement
MAJOR ACHIEVEMENTS FOR • contributed to a major international 1998–99 forum on registration and reciprocity in • assessed and registered almost as many the Western Pacific region. architects as the rest of Australia combined
• participated in the National Competition Policy Review of legislation and made a detailed submission
ANNUAL REPORT 1998-99 70 BUILDING CONTROL • increased staffing of investigations COMMISSION section to assist with the 90 per cent increase in prosecutions CHAIRPERSON: MR MAX CROXFORD • competency-based training to assess domestic builders prior to registration ROLE OF ORGANISATION • commenced implementation of Administers the Victorian building regulatory insurance companies acting as agents system, and reports to and advises the for practitioner renewals
Minister for Planning and Local Government • introduction of customer surveys for on all building control matters. appeal participants
MAJOR ACHIEVEMENTS FOR • reviewed practitioner disciplinary 1998–99 hearings in consultation with BAB and
• completed the NCP review BPB members.
• major communications campaign on the • publication of monthly Building Activity introduction of smoke alarms in all Profile and annual Building Victoria Victorian homes report. Building activity peaked at $1.03 billion in March 1999 • promoted owner responsibility for the maintenance of essential services • redevelopment of the Commission’s Internet web site as an interactive • completed the review of building source of information on the systems for Dubai Commission’s functions and • established joint consultancy Building responsibilities Australia International (BAI) and • implementation of an integrated investigated overseas opportunities computerised purchase order system including Trinidad and Sri Lanka including enhanced purchasing • organised ‘Global Building Model: In the procedures next Millennium’ international • achieved Year 2000 Ministerial sign-off convention by 30 June 1999, including testing of all • building industry research project core Commission IT software systems expenditure represented 3 per cent of and hardware. total revenue for 1998–99
• release of research papers into fire safety
• introduction of random building practitioner audits DOCKLANDS • the Federal Government committed seed AUTHORITY funding of $22.5 million for the establishment of the Commonwealth CHAIRPERSON: Technology Port (CTP) in Melbourne MR ERIC MAYER AM Docklands in September 1998. The CTP is envisaged to be a private-sector joint ROLE OF ORGANISATION venture between major technology The mission of the Docklands Authority is to corporations, educational institutions, plan, manage and hand over to the universities and research organisations, community the successful world-class to foster and commercialise innovative integrated development of Melbourne technologies across a broad range of Docklands as a waterfront place in which to industries in Victoria and throughout live, work and visit. Australia
Staff: 7 exec.; 29 non-exec. • in October 1998, the Docklands (as at 30 June 1999) Authority signed a Development Agreement with Victoria Harbour MAJOR ACHIEVEMENTS FOR Consortium Pty Ltd for the $1.2 – 1998–99 1.5 billion development of Victoria • a Development Agreement between the Harbour Precinct. The proposal Docklands Authority and the Seven comprises a 10-year development Network Limited was signed in including approximately 2,500 September 1998 to develop Australia’s apartments, two international standard first fully digital broadcast centre. The hotels, 58,000 square metres of state-of-the-art $100 million complex commercial space, 30,000 square will include four digital television metres of retail space and 5,000 car- studios, direct connections to Colonial parking spaces Stadium, space for outdoor broadcast • construction began in November 1998 vans, back-of-house production on Docklands’ first residential facilities, set storage and a helipad as development, Mirvac’s ‘Yarra Quays’ in well as a seven-storey office tower the Yarra Waters Precinct containing the new headquarters for Channel Seven Melbourne and • construction started on the provision of commercial office space for aligned services to the site, pedestrian and road organisations bridges over the railway lines at Bourke and La Trobe Streets, together with
ANNUAL REPORT 1998-99 72 extensions to tram routes into • in May 1999, a contract was awarded Docklands. Construction also started on to Concrete Constructions for road and a new North-South Road in Docklands bridge work including the that will replace Footscray Road as the reconstruction of Dudley Street, Flinders arterial road through Docklands Street (including the Route 70 tram extension), North Wharf Road and the • the heritage-registered Exhibition Goods Charles Grimes Bridge, leading to Shed was relocated from the Batman’s improvements in public transport and Hill Precinct to Bylands, a small pedestrian links between the City, the township 53 kilometres north of Yarra River and Docklands. The contract Melbourne, in March 1999. The shed is being project managed by VicRoads was donated by the Docklands Authority on behalf of the Docklands Authority and the Victorian Government to the Tramway Museum Society of Victoria, a • expressions of interest were called for voluntary non-profit organisation the re-bid of the Batman’s Hill Precinct dedicated to preserving Victoria’s in May 1999. The precinct is being tramway heritage offered in whole, or as subdivided smaller parcels • MAB Docklands finalised all conditions to its Development Agreement with the • the Docklands Authority assumed local Docklands Authority in May 1999 for government powers for the Melbourne the rights to develop a $900 million 24- Docklands area from the City of hour city in the Business Park Precinct. Melbourne Council on 1 July 1999. The key components of the Melbourne Docklands was assigned a development include more than new postcode: Docklands 3008. 100,000 square metres of office space, 1,800 residential apartments, 360 hotel rooms and marinas accommodating up to 300 boats. A feature of the proposal is a 30-metre wide public promenade along the north side of Victoria Harbour providing opportunities for large crowds to attend major events on the water in Victoria Harbour HERITAGE COUNCIL MAJOR ACHIEVEMENTS FOR 1998–99
CHAIRPERSON: • the approval of more than $384,160 in MS CATHERINE HEGGEN loans and grants to owners of registered heritage properties ROLE OF ORGANISATION • the comprehensive heritage assessment The Heritage Act 1995 established a Heritage of 187 places, with 90 places added to Council appointed by the Governor-in-Council the Victorian Heritage Register and 54 upon the recommendation of the Minister amendments to existing registrations. for Planning and Local Government. Seventy-one properties were Comprising 10 members, with specific recommended for local planning expertise and interests, and representing a scheme protection broad cross-section of the community, the • alterations and developments to Heritage Council is Victoria’s main decision- registered heritage places were making body on heritage issues. facilitated by Heritage Victoria with 441 The Heritage Council: approvals for alterations to registered • advises the Minister of Planning and heritage places being granted
Local Government on heritage issues • the preparation of a State Heritage • determines which heritage places and Strategy, designed to guide Victorian objects are added to the Victorian government activities in heritage Heritage Register protection over the next period. This strategy has been developed in • hears appeals on permit applications conjunction with other government determined by the Executive Director departments and agencies and is • approves or rejects recommendations scheduled to be launched in late 1999 for loans and grants from the Heritage • the development of a fully searchable Fund. form of the Victorian Heritage Register Staff: 2 non-exec. to be delivered online early in 1999-2000.
ANNUAL REPORT 1998-99 74 MARINE BOARD • introduced new safety standards for OF VICTORIA pilotage services providers and reviewed requirements for the CHAIRPERSON: training and licensing of pilots and pilot CAPTAIN JOHN BICKNELL exempt masters
ROLE OF ORGANISATION • tested the readiness of the Victorian Marine Pollution contingency plan The Marine Board is the marine safety through the exercising of regional sub- authority for Victoria. It is established under plans, the training of staff and new the Marine Act 1988. arrangements for storage, maintenance The Marine Board is responsible for and replacement of equipment developing and maintaining standards • contributed to the national reform for the agenda, particularly in the review of • safe operation of vessels and safety of standards for commercial vessel design navigation on State waters and the operation of recreational boats • competence of crews • developed a Year 2000 strategy for port • registration of vessels operators, pilotage service providers,
• licensing of marine pilots and vessel operators and Marine Board harbourmasters. systems • reviewed all determinations and The Marine Board is also responsible for standards to ensure compliance with ensuring effective response to oil pollution NCP principles and contributed to the incidents on State waters and improving the review of the Marine Legislative Scheme community’s awareness of boating safety. • developed new computerised business The Marine Board services the State Boating systems and a web site to improve Council, which advises the Minister for Roads customer service and the availability of and Ports and the Board on all aspects of public information recreational safety. • raised the awareness of boating safety Staff: 3 exec., 18 non-exec. through media campaigns and boat and
MAJOR ACHIEVEMENTS IN fishing shows, a search and rescue 1998–99 seminar and support for the State
• introduced a new organisational Boating Council structure, established the Commercial • established stakeholder forums and Shipping business and appointed new gauged public support for the crossing managers of the Lakes Entrance Bar by passenger vessels. MELBOURNE CITY LINK URBAN LAND AUTHORITY CORPORATION
CHAIRPERSON: CHAIRPERSON: MR JOHN LAURIE MR MAREK PETROVS
ROLE OF ORGANISATION ROLE OF ORGANISATION
The Melbourne City Link Authority is a single- The Urban Land Corporation (ULC) is a State purpose agency with a clearly focused Government Business Enterprise with mission to facilitate the City Link project. It extensive experience in urban development, does this on the basis of a private-sector gained through 24 years of operation in the build, own, operate and transfer Melbourne residential land market. undertaking. The ULC is a developer of residential communities, infill residential developments MAJOR ACHIEVEMENTS FOR 1998–99 and a vehicle to resolve development issues on complex sites. • September 1998 – erection of 70-metre long yellow beam at the International The functions of the ULC are to: Gateway completed • develop residential land in Victoria • December 1998 – passage of the • develop other land in Victoria where this Melbourne City Link (Amendment) is incidental to a residential Act 1998 development • January 1999 – the 270-metre • provide consultancy services in relation Exhibition Street Extension bridge over to the development of land whether the Jolimont Railyards is connected to within or outside Victoria or outside Flinders Street Australia • March 1999 - financial closure is • carry out any other functions conferred achieved on the Exhibition Street by its Act. Extension The Urban Land Corporation Act 1997 • April 1999 – new City Link bridge requires the functions of the ULC to be officially named the Bolte Bridge carried out on a commercial basis. Details of • May 1999 – 100,000 people attend ULC operations and projects are presented in Transurban's Bolte Bridge Discovery Day. the Corporation's Annual Report.
ANNUAL REPORT 1998-99 76 MELBOURNE PORT • the development of a state-of-the-art CORPORATION dry-bulk terminal began at Appleton Dock. This facility will handle more than CHIEF EXECUTIVE OFFICER: 500,000 tonnes of dry bulk cargo a MR JEFFREY GILBERT year, and a substantial amount of this
ROLE OF ORGANISATION being new trade for the Port of Melbourne The Corporation was established under the • the Corporation was granted freehold Port Services Act 1995. The Corporation is for title 22–24 Victoria Dock and responsible for conducting the business of planning is well advanced for the being the land manager of the Melbourne development of a multipurpose cargo- Port area. It must plan and co-ordinate the handling facility on this site development of port land and infrastructure within the area. The land and infrastructure • the reclamation of 10 hectares of land must be made available to port service at Webb Dock was completed providers in an economically efficient manner • the Corporation implemented an overall so as to encourage competition among port reduction in wharfage charges of service providers. 6.8 per cent . Price reductions returned Staff: 9 exec., 72 non-exec. in the order of $2.9 million to the Corporation’s customers over the year MAJOR ACHIEVEMENTS • investment in port facilities increased by FOR 1998-1999 $71 million during 1998–99 • Australia’s first dedicated motor-vehicle • new financial management and asset terminal was completed at Webb Dock management systems were West implemented and electronic manifest • the Webb Dock EES was completed, transfer started setting the scene for the future • a 30 per cent increase in customer development of an international satisfaction was recorded over the year. container terminal at Webb Dock
• the Port of Melbourne consolidated its position as Australia’s largest container port, handling 1.12 million 20 ft equivalent units (TEUs) over the year. This was 7.4 per cent higher than the level handled in 1997–98. The port handles 39 per cent of Australia’s total container trade PLUMBING INDUSTRY • introduced performance-based COMMISSION standards and criteria and a process for standards modifications COMMISSIONER: MR MICHAEL KEFFORD • developed technical codes of practice for specific sectors of the plumbing ROLE OF ORGANISATION industry
The Plumbing Industry Commission (PIC) • the Plumbing Industry Commission Trust administers Part 12a of the Building Act was established to facilitate the 1993. Functions of PIC include: exchange of training ideas and the promotion of the plumbing industry • registration and licensing of plumbers in Victoria • PIC as Secretariat for the Australian, New Zealand Reciprocity Association • assessment and review of plumbing actively promotes the recognition of qualifications in line with government, plumbing training and qualifications community and industry standards throughout Australia. • enforcing the provisions associated with a Certificate of Compliance
• modification of plumbing requirements for specific installations.
Staff: 6 exec., 39 non-exec.
MAJOR ACHIEVEMENTS FOR 1998–99
• PIC is the successor of the Plumbing Industry Board (PIB). The functions and responsibilities of PIB were transferred to the new structure on 1 January 1999
• introduced Plumbing Regulations that incorporated Plumbing Standards and revised the licensing and classification of plumbers
• established the Plumbing Industry Advisory Council whose purpose is to make recommendations to the Commissioner and the Government Minister in relation to plumbing matters
ANNUAL REPORT 1998-99 78 PUBLIC TRANSPORT • the sale of V/Line Freight on 1 May CORPORATION 1999 and the subsequent outsourcing of the standard gauge track CHAIRPERSON: maintenance by the Australian Rail Track MR LINDSAY MAXSTED Corporation ended the PTC’s involvement in infrastructure ROLE OF ORGANISATION maintenance in May, except for the The Public Transport Corporation (PTC) was mechanised maintenance group. The formed in July 1989 to operate trains, trams majority of the Mechanical Field Services and buses in the Melbourne metropolitan group also ended on 1 May area and passenger services in rural Victoria. • the major works undertaken to relocate On 1 July 1998, the PTC ceased to be a train maintenance from the Jolimont provider of any passenger transport services. yards was completed on time in The tram services were transferred to Yarra February, paving the way for the and Swanston Trams, the metropolitan train construction of Federation Square. The services to Hillside and Bayside Trains and the works were extremely complex and country train operations to V/Line Passenger. included building the walls These five new independent corporations to carry the Federation Square took over the services on the same day. structures. The new tracks are equipped with concrete sleepers and are designed MAJOR ACHIEVEMENTS FOR to allow train speeds to be raised to 1998–99 80 kph through the area • the year continued to be one of great • the Metcard automated ticketing system change and, by the end of the year, PTC was fully introduced throughout the staff numbers had reduced further to train and tram networks and the just 713. Four small businesses were majority of bus operators. The system sold: the Spotswood Electrical Shop; the was successfully commissioned during Infrastructure Engineering Support the year and it has become a reliable Services; the Communication and accepted system by the majority Maintenance Group and the Signal of users. Construction Group. The sale process is already well under way to sell a further six PTC businesses to the private sector ROADS CORPORATION • implemented heavy-vehicle reforms (VICROADS) including the National Heavy Vehicle Registration Scheme and the National CHIEF EXECUTIVE AND Driver Licensing Scheme. New truck CHAIRPERSON: MR COLIN JORDAN driving hours regulations were introduced, as well as the transitional ROLE OF ORGANISATION fatigue management scheme and national guidelines for the assessment VicRoads serves the community by managing of defective vehicles Victoria’s road system and its use as an integral part of the overall transport network. • won the 1998 Australian Institute of Landscape Architects National Projects Staff: 65 exec., 2231 non-exec. Award for the landscaping and noise
MAJOR ACHIEVEMENTS FOR walls along the Eastern Freeway 1998–99 Extension
• achieved an excellent rating in the • continued to implement the State Austroads User Satisfaction Performance Government’s Safety First road safety Indicator Survey, receiving equal highest strategy, which targets high-risk groups across the States of Australia through research, education, enforcement, promotion and • opened a three km section of the engineering Metropolitan Ring Road between Dalton Road and Edgars Road, at Thomastown • Implemented ‘WalkSafe’, a multi-action pedestrian safety program, comprising • completed the Boronia Rail Crossing, engineering, education, publicity and which involved lowering the Ringwood- enforcement activities in the City of Belgrave railway line under Boronia Stonnington. Road, upgrading the Boronia Road- Dorset Road intersection and • arranged with Australia Post to provide constructing a new railway station and vehicle registration renewals from 600 transport interchange rural outlets and 500 metropolitan locations • strengthened or replaced 42 bridges in rural Victoria to facilitate the movement • Victoria continued to be a world leader of B-double vehicles in road safety. Road deaths have decreased from 1,000 in 1,970 to 400 • continued to improve the condition of in 1998–99, despite increases in vehicle Victoria’s roads, reducing the length of ownership and the population. rough roads on the arterial network by more than 20 per cent during the past seven years
ANNUAL REPORT 1998-99 80 VICTORIAN CHANNELS • VCA continued the major upgrading of AUTHORITY its shipping control technologies and the construction of a new Harbour CHAIRPERSON: Control Centre that had commenced in MRS MARY ANNE HARTLEY. the previous year and is now due for completion in November 1999 ROLE OF ORGANISATION • revised a system of charging for use of The Victorian Channels Authority (VCA) was deepened channels in Geelong. established under the provisions of the Port Services Act 1995 to: OTHER BODIES AND • establish, manage, maintain and dredge COMMITTEES
channels in port waters of Melbourne DOI’s other bodies and committees include: and Geelong in accordance with the - Accessible Public Transport Consultative standards developed by the Marine Committee Board of Victoria - Building Advisory Council • provide and maintain navigation aids in accordance with standards developed by -_ Building Appeals Board the Marine Board of Victoria - Building Practitioners Board
• generally, direct and control the - Building Regulations Advisory movement of vessels within port Committee waters in accordance with the - City Circle Tram Promotion Committee Marine Act 1988. - Historic Mines, Places and Objects Staff: 4 exec., 43 non-exec. Advisory Committee
MAJOR ACHIEVEMENTS FOR - Historic Shipwrecks Advisory Council 1998–99 - Local Government and Planning • charges to shippers were reduced from Advisory Committee 35.5 cents per gross ton to 30.6 cents - Planning Panels per gross ton, effective - Public Transport Heritage Advisory 1 July 1998; this had the effect of Council compounding accumulated savings by 30 June 1999 to the shipping industry - State Boating Council
since starting operations on 1 March - Taxi Driver Safety Committee 1996, to $57 million - Victorian Bicycle Advisory Council • despite the reduction in the base tariff, - Victorian Grants Commission annual revenue increased by $0.5 million to $21.0 million during - Victorian Motorcycle Advisory Council the year - Victorian Sea Freight Industry Council
- Victorian Road Freight Advisory Council
- Victorian Public Transport Forum. SUMMARY OF A fundamental element of the change is the FINANCIAL RESULTS focus on outputs DOI provides in achieving government policy. Under the AOM DOI comprises the following entities: framework, revenue is now recognised for • Department the outputs produced. Outputs produced • Secretary to DOI (an independent body during the year mainly related to rail, road, corporate created under the Project bus and marine services totalling $1.967 Development and Construction billion. In addition, funding is received for Management Act 1994) operating ‘additions to the net asset base’ (formerly through the Office of Major Projects known as capital funding) for agreed capital and also the Building Services Agency projects within the portfolio. up to the 23 April 1999, the date on Under this new framework, transactions which this unit was sold. relating to the provision of outputs are now • Architects Registration Board recognised in the financial statements as • Building Control Commission ‘controlled’ activities and not ‘administered’ as was the case for the year ended 30 June • Docklands Authority 1998. Administered transactions are those • Heritage Council which are undertaken on behalf of the • Marine Board of Victoria State. These are reported separately in the financial statements. • Melbourne City Link Authority
• Plumbing Industry Commission Due to the above, in many cases the 1998 comparatives cannot be directly aligned with • Public Transport Corporation the 1999 amounts. Activities funded under • Roads Corporation ‘administered’ in 1998 included • Urban Land Corporation. appropriation funding transferred to agencies such as Roads Corporation and the Public Significant changes have occurred in the Transport Corporation, but are now treated presentation of financial information in the as ‘controlled’ in 1999. Further activities that financial statements for the year ended 30 in 1998 were treated as ‘controlled’, such as June 1999 compared to the previous year. receipt of Commonwealth funds and The implementation of Accrual Output-based subsequent transfer to local government Management (AOM) which is the councils, are now treated as ‘administered’. Government’s management accountability framework became effective through the 1998–99 State Budget and for financial reporting for the year ending 30 June 1999.
ANNUAL REPORT 1998-99 82 The financial statements presented in this Museum Victoria, Federation Square and the annual report relate strictly to the operations State Library. of DOI known as the Department and include The Office of Major Projects also generated the operations under the body corporate approximately $41.4 million in land sales ‘Secretary to the Department of from nominated property development Infrastructure’ delivered through the Office of projects during 1998–99. This compares with Major Projects and the Building Services some $18.1 million in 1997–98 and reflects Agency. All other agencies within the increased development and sales activity, portfolio prepare their own annual reports including the Bundoora development (sold (including financial statements) and during the year for approximately $24.0 report separately. million), the continuing Bayside project The audited operating surplus before (approximately $16.4 million), and Lynch’s abnormal items for the year was Bridge residential development $9.346 million (1998 – $3.176 million). (approximately $1.0 million). After addition of abnormal gains of In accordance with the AOM framework, $19.629 million, there was an operating revenue earned by the Office of Major surplus of $28.975 million (1998 – deficit Projects must be remitted to the $6.526 million). Consolidated Fund. Consistent with this The abnormal gain of $19.629 million was policy, proceeds from land sales are no mainly due to the recognition of assets longer treated as ‘controlled’ and as such, received free of charge. The assets were the are not disclosed in the 1998–99 operating transfer of the Station Pier asset from the statement, but are now disclosed as Melbourne Port Corporation ‘administered’ revenue. ($10.660 million) and land from the The effect of the sale of the Building Services Department of Human Services Agency on 23 April 1999 on the Operating ($8.750 million). Statement has been reductions in fee income During the year, the Office of Major Projects and operating expenditure. The full year managed capital expenditures on behalf of impact of the sale will be evident in the sponsor agencies for projects totalling 1999–2000 year. $230.9 million (1998 – $160.9 million). These capital works are not included in DOI’s financial statements as they are reflected in the client/sponsor agencies accounts as completed works or works in progress. Projects allocated to OMP include: FINANCIAL RESULTS – CONTROLLED OPERATIONS
Note 1999 1998 1997 1996
Operating revenue - Revenue from government 1 2118.0 513.4 444.4 468.4 - Other revenue 2 45.7 328.4 323.0 303.3 Total operating revenue 2163.7 841.8 767.4 771.7 Operating expenses 3 2154.4 838.7 767.6 765.8 Operating surplus (deficit) after abnormal items 4 29.0 (6.5) 8.3 61.9 Total assets 5 150.9 165.9 164.6 147.7 Total liabilities 5 61.7 98.5 90.6 85.8
1. ‘Revenue’ from government increased PORTFOLIO AGENCIES due to the implementation of the During the year, portfolio agencies collected Government’s AOM framework. some $742.4 million (1998 – $703.4 million) 2. ‘Other revenue’ reduced mainly because of revenue (mainly related to motor vehicle of the change in treatment from registration, stamp duty and driver licence ‘controlled’ to ‘administered’ of fees) on behalf of the Government which was Commonwealth funding for local remitted directly to the Consolidated Fund. government council grants A further $844.8 million (1998 – ($290 million) under the $816.3 million) of transport accident charges AOM framework. were collected on behalf of the Transport 3. ‘Operating expenses’ have increased to Accident Commission. These revenue reflect the purchase of outputs under collections do not appear in the operating the AOM framework (refer above). statements of DOI or its agencies, but are included in the accounts of the other 4. Operating surplus after abnormal items government entities for which the funds relates mainly to abnormal items were collected. resulting from government direction, for example, the transfer of Station Pier and The net assets of all agencies within the land at Bundoora into DOI’s accounts portfolio totalled $16.020 billion (1998 – free of charge and also Better Roads $17.096 billion), the major agencies being trust funds balance as at 30 June 1998 the Roads Corporation $13.384 billion recognised as controlled revenue. (1998 – $13.370 billion), and the Public
5. Total assets and total liabilities reduced Transport Corporation $2.518 billion (1998 – reflecting the reduction in projects and $3.213 billion). The reduction of trust funds held as a result of the sale of approximately $700 million in the Public the Building Services Agency on Transport Corporation reflects the transfer of 23 April 1999. net assets to the newly formed passenger corporations.
ANNUAL REPORT 1998-99 84 FINANCIAL STATEMENTS
Statement of Accountable Officer and the Chief Finance and Accounting Officer 86 Auditor–General’s Report 87 Operating Statement 88 Statement of Accumulated Surplus 89 Balance Sheet 90 Statement of Cash Flows 91 Notes to and forming part of the 1999 Financial Statements 92 86 STATEMENT OF ACCOUNTABLE OFFICER AND THE CHIEF FINANCE AND ACCOUNTING OFFICER
In our opinion,
(a) the accompanying Financial Statements of the Department present fairly the financial transactions of the Department for the year ended 30 June 1999 and the financial position of the Department as at that date, in accordance with applicable Australian Accounting Standards and other mandatory professional requirements.
(b) the Financial Statements of the Department have been prepared in accordance with the Financial Management Act 1994 and comply in all material respects with the directions (Part 9) issued by the Minister under the Act.
At the date of signing this Statement, we are not aware of any circumstances which would render any particulars included in these Financial Statements to be misleading or inaccurate.
David Berry Acting Secretary
Bob McDonald FCPA Chief Finance Officer
Dated:
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 86
OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 1999
NOTE 1999 1998 ($’000) ($’000)
OPERATING REVENUE Appropriations – revenue for the provision of outputs 1(c), 4 2,043,079 461,873 Appropriations – additions to net asset base 1(c), 4 73,485 51,561 Revenue from other departments 5 1,465 – Commonwealth Government general purpose grants 1(c), 24 – 283,957 Other revenue 6 30,131 2,860 Fee income – Building Services Agency and Office of Major Projects 1(j) 14,868 22,332 Proceeds from land sales – Office of Major Projects 3(i) – 18,092 Interest income 689 1,165 Total operating revenue 2,163,717 841,840
OPERATING EXPENSES
Road, rail, bus and marine services 1(c), 7 1,967,655 367,980 Victorian Grants Commission – grants to councils 1(c) – 283,957 Administration expenses 8 90,196 91,324 Payments for community and social benefits 9 56,157 52,409 Payments into the consolidated fund 1(c), 10 3,256 15,804 Capital charge 11 15,839 14,612 Other expenses 12 594 716 Depreciation 13 4,341 4,510 Cost of assets sold 16,333 7,352 Total operating expenditure 2,154,371 838,664
OPERATING SURPLUS BEFORE ABNORMAL ITEMS 9,346 3,176
Items outside normal operations
Abnormal gain/(loss) (resulting from government direction) 14 19,629 (9,702)
OPERATING SURPLUS/(DEFICIT) 28,975 (6,526)
The accompanying notes form part of the financial statements.
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 88 STATEMENT OF ACCUMULATED SURPLUS AS AT 30 JUNE 1999
NOTE 1999 1998 ($’000) ($’000)
Accumulated surplus at 1 July 63,167 69,693 Office of Major Projects debtors disclosed as ‘controlled’ revenue in 1998 Financial Statements transferred to ‘administered’ in 1999 1 (c) (13,421) – Loans disclosed as ‘administered’ in 1998 transferred to controlled in 1999 1 (c) 3,060 – Heritage assets recognised for the first time 318 – Operating surplus/(deficit) 28,975 (6,526) Accumulated surplus at 30 June 82,099 63,167
The accompanying notes form part of the financial statements. BALANCE SHEET AS AT 30 JUNE 1999
NOTE 1999 1998 ($’000) ($’000)
Current assets Cash 15 43,710 68,105 Receivables – State Administration Unit 16 22,648 – Debtors 1(c), 17 7,059 35,348 Prepayments 562 435 Loans 18 200 – Land inventory 1(h) 4,149 7,494 Inventories 127 – Total current assets 78,455 111,382
Non-current assets Fixed assets 19 66,535 48,873 Loans 18 1,800 – Land inventory 1(h) 4,051 5,624 Total non-current assets 72,386 54,497
Total assets 150,841 165,879
Current liabilities Creditors and accruals 20 48,767 82,321 Provisions for employee entitlements 21 4,382 4,754 Total current liabilities 53,149 87,075
Non-current liabilities Provisions for employee entitlements 21 8,561 11,397 Total non-current liabilities 8,561 11,397
Total liabilities 61,710 98,472
Net assets 89,131 67,407
Equity Asset revaluation reserve 22 7,032 4,240 Accumulated surplus 82,099 63,167 Total equity 89,131 67,407
The accompanying notes form part of the financial statements.
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 90 STATEMENT OF CASH FLOWS AS AT 30 JUNE 1999
NOTE 1999 1998 ($’000) ($’000) INFLOW/ INFLOW/ (OUTFLOW) (OUTFLOW)
Cash flows from operating activities Operating receipts: Receipts from government 2,095,381 797,392 Fee income 14,868 19,566 Proceeds from land sales 1(f) – 10,085 Other revenue 30,131 697 Interest income 689 638 2,141,069 828,378 Operating payments Purchase of supplies and services (2,017,754) (374,016) Employee related expenses (41,997) (46,456) Capital assets charge (15,839) (14,612) Payments for community and social benefits (55,118) (52,407) Current grants and transfer payments 1(c) – (281,979) Capital grants and transfer payments 1(c) – (33,657) Payments to State Government 1(f) – (13,986) (2,130,708) (817,113)
Project development and construction management for client/sponsor agencies: Advances received from client/sponsor agencies 261,476 195,722 Disbursements to contractors/agencies (286,180) (195,081) Net increase/(decrease) in agency advances (24,704) 641
Net cash provided by operating activities 23 (14,343) 11,906
Cash flows from investing activities Purchase of non-current assets (10,052) (12,276) Proceeds from the disposal of fixed assets 1(f) – 2,154
Net cash used in investing activities (10,052) (10,122)
Net increase/(decrease) in cash held (24,395) 1,784
Cash held at beginning of year 68,105 66,321
Cash held at end of year 23 43,710 68,105
The accompanying notes form part of the financial statements. NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of accounting (c) Changes to accounting policies
The Financial Statements have been prepared on Accrual Output-based Management (AOM) is the the accrual basis of accounting in accordance management accountability framework that has with the Financial Management Act 1994, been put in place for the Victorian Government’s accounting and financial reporting bulletins and Budget Sector and became effective for the other accounting policy papers issued under the 1998–99 State Budget and external financial Direction of the Minister for Finance under the reporting of departmental operations in Financial Management Act 1994, applicable accordance with Australian Accounting Standards Australian Accounting Standards and other AAS 29. mandatory reporting requirements (Urgent Issues A fundamental element of the change is Group Consensus View). the focus on outputs the Department provides in Except for certain assets, which are at current cost achieving its Corporate Plan. valuation, and long-service leave liabilities, which The Department receives revenue (via are measured at the present value of expected appropriation funding) in exchange for providing future payments, the Financial Statements have outputs. Formal confirmation from the Treasurer been prepared on an historical cost basis. that the intended outputs have been produced is required before the amounts invoiced can be (b) The reporting entity recognised as revenue. In addition, funding is provided for increases in the ‘additions to the net In accordance with approval received asset base’ (formerly known as capital funding) under the Financial Management Act 1994, the for agreed capital projects for the portfolio. The Department of Infrastructure’s (the Department’s) assets which are created are reflected Annual Report and Financial Statements in either the Department’s or the portfolio incorporate the ‘Secretary to the Department of agencies’ financial statements. Infrastructure’ as a body corporate created under the Project Development and Construction Ministerial Direction 10.11 under the Financial Management Act 1994. The body corporate Management Act clearly separates payments includes the functions performed by the Office of received by departments for the provision of Major Projects, and also the Building Services outputs (controlled) from funding for other Agency up to 23 April 1999, the date upon purposes (administered). This is in accordance which this unit was sold. with Australian Accounting Standards AAS15 which states that where the Department has discretion over the use of funds, they must be treated as ‘controlled’. Administered transactions are those which are undertaken on behalf of the State and over which the Department has no
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 92 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
control or discretion (for example, collection of (b) Commonwealth funding to councils. These loans were sales proceeds on behalf of the State). received and transferred to local previously treated as ‘administered’ government councils is treated in 1998, and are now treated as As a result of the implementation of the AOM as ‘administered’ revenue and ‘controlled’ in 1999 – $3 million. framework and in accordance with expenditure in 1999, as discretion the principles set down in the Accrual Accounting (iii) Balance sheet and control of these funds now Manual issued under the Financial Management rests with the Commonwealth (a) Appropriations once applied Act 1994, the major impacts of the changes on Government but was treated are recorded in a new account the financial statements are as follows: as ‘controlled’ in 1998 – called the ‘Receivables – State (i) Operating statement approximately $289 million. Administration Unit’ account. The Department’s cash requirements (a) Under AOM the Department (c) Under AOM, the Department is associated with the delivery of receives funding to purchase now required to recognise revenue outputs is drawn from the outputs. In previous years this that it has no control or discretion Consolidated Fund and this account funding was treated as an to use as ‘administered’ revenue. is reduced accordingly. At year ‘administered’ transfer payment Accordingly, proceeds from land end, the balance represents to agencies, but as a result of sales are now treated as appropriation applied for which AOM the Department now ‘administered’ revenue whereas cash funds have not been drawn purchases outputs from these they were previously treated as from the Consolidated Fund to agencies and therefore funding is ‘controlled’ revenue – $41.4 million. meet obligations – $22,648 million. treated as ‘controlled’ revenue of Similarly, payments to government (b) The impact on trade debtors the Department. The net impact of land sale proceeds treated as previously treated as ‘controlled’ in is $1.6 billion. ‘controlled’ expenditure in 1998, 1998 are now treated as Similarly, expenditure for the are now treated as ‘administered’ ‘administered’ in 1999 – purchase of outputs provided for expenditure – $21.6 million. $40 million. road, rail, (ii) Accumulated surplus (equity) bus and marine services was generally treated as ‘administered’ (a) The Office of Major Projects expenditure in 1998, but now debtors were treated as ‘controlled’ treated as ‘controlled’ expenditure in 1998 and are now treated as in 1999 – $1.6 billion. ‘administered’ in 1999 because the Department does not have control and discretion to use the proceeds collected from the sale of land by the Office of Major Projects – $13.4 million.
(b) The Minister for Planning and Local Government has full control and discretion over the use of loans which have been provided NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
(d) Comparatives (f) Proceeds from asset sales
Where a change in presentation in the Financial From the 1999 year, proceeds of asset sales Statements has been adopted, the comparative received by the Department are no longer treated figures have been altered to provide an accurate as ‘controlled’ revenue in the Department’s comparison with the current year. Operating Statement but are disclosed as In some cases where comparatives are not ‘administered’ revenue in accordance with the applicable they are not shown. AOM framework.
The AOM framework defines transactions relating (g) Depreciation to the provision of outputs as ‘controlled’ activities and not ‘administered’ activities. As such, in many Assets with a cost in excess of $1,000 cases the 1998 comparatives cannot be directly or are capitalised and depreciation has been accurately aligned with the 1999 amounts. Many provided on depreciable assets so as to allocate activities funded under ‘administered’ in the their cost or valuation over their estimated useful previous year, for example, appropriation funding lives to the Department using the straight-line transferred to agencies such as the Public method. A full year’s depreciation is charged Transport Corporation or Vic Roads in 1998, are against the value of assets except for the current now treated as ‘controlled’ in the 1999 year. The year additions, improvements and disposals where funds provided for these outputs form part of the depreciation commences or ceases in the month formal revenue acquittal process for the in which the asset is purchased Department. Further, activities that in the 1998 or sold. Land and cultural assets are not year were treated as ‘controlled’ for example, depreciated because they have an receipt of Commonwealth Funds and subsequent indefinite life. transfer to local government councils, are now The Department has adopted the following treated as ‘administered’ in 1999 as they are not depreciation rates and useful lives for the identified as outputs under the 1999 Budget following categories of assets: process.
(e) Rounding off to the nearest Asset category Average useful life Depreciation/ thousand dollars years Amortisation rate % Rounding off to the nearest thousand dollars has Buildings 55 1.82 been adopted in the Financial Statements. Furniture and fittings 10 10.00 Computer equipment 3 33.30 Computer printers 4 25.00 Leasehold improvements 10 10.00
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 94 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
(h) Land inventories Leasehold improvements: The cost of fit-out of the Department’s office Land inventories represent land held for premises is treated as leasehold improvements. development by the Office of Major This amount is reflected in the balance sheet Projects at Port Melbourne (Bayside Project), and is subject to depreciation over the 10-year Kensington (Kensington Banks) and East life of the lease. Melbourne. These parcels of land have been valued at the lower of cost and net Work in progress: realisable values. Where it is determined that expenditure will lead to the internal creation of an asset, that (i) Non-current assets expenditure is treated as work in progress until that asset is completed. The basis for valuation of non-current assets is as follows:- Heritage assets: Heritage assets purchased during the year have Land: been valued at cost and those recognised for Land purchased during the year has been valued the first time during the year were valued at cost and land purchased in an earlier period at 1999 valuation by a registered valuer has been valued at 1999 valuation by a (McWilliam & Associates Pty Ltd) on a market registered valuer (Ian R. James & Associates) on value basis. a market value basis, except for the land under the World Congress Centre, which was revalued (j) Sale of the Building Services Agency in 1997. The Building Services Agency, which operated Buildings: under delegated powers from the ‘Secretary to During the year all buildings were valued the Department’ created under the Project separately at 1999 valuation by a registered Development and Construction Management Act valuer (Ian R. James & Associates) on a market was sold on 23 April 1999. This sale had the effect value basis. of reducing fee income received by the Infrastructure asset: Department. Station Pier was transferred from the Melbourne Port Corporation to the (k) Employee entitlements Department on 30 June 1999 in accordance The Department has recognised and brought to with Administrative Arrangements. account employee entitlements accruing for Furniture and equipment: annual leave and long service leave Assets with a market valuation or historical as follows: cost value of more than $1,000 have been capitalised and included as depreciable assets. NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
(i) The liability for accrued annual leave periods in which they are incurred. The (including leave loading) has been Department has not entered into any finance calculated using the actual leave lease arrangements. outstanding for each employee at 30 June 1999 and pay rates applicable (m) Asset revaluation reserve at that date. All non-current assets other than receivables and (ii) The liability for long-service leave is investments are revalued every five years. calculated at the net present value of Revaluation increments are credited directly to estimated future payments to be made the Asset Revaluation Reserve while decrements in respect of services provided by are expensed in the Operating Statement, unless employees in accordance with previous revaluations resulted in a valuation Australian Accounting Standard AAS 30 increment, in which case the subsequent ‘Accounting for Employee Entitlements’. decrement is offset against the Asset Estimated future payments are discounted Revaluation Reserve. using interest rates supplied by the Department of Treasury and Finance.
(iii) The liability for both long-service leave and annual leave includes on costs for payroll tax, WorkCover levy and super- annuation. The amount anticipated to be paid during the next 12 months is shown as a current liability.
As it is considered that non-vesting sick leave, to be taken in future reporting periods, will not exceed entitlements expected to accrue in those periods, no provision has been made.
(l) Leases
A distinction is made between operating and finance leases. Operating leases are those in which the lessor effectively retains all substantial risks and benefits. Finance leases effectively transfer from the lessor to the lessee all substantial risks and benefits incidental to ownership of the leased asset. Operating lease payments are representative of the pattern of benefits derived from leases and accordingly are charged to the Operating Statement in the
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 96 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
2. OUTPUTS OF THE DEPARTMENT Description: road maintenance and traffic management, and Public Transport Services in line with required contributes to non-metropolitan and national The identity and outcomes of each output service performance and financial targets, rail infrastructure. undertaken by the Department during the year consistent with the Government’s policy. The ended 30 June 1999 are summarised output group consolidates the delivery of all Output 204: Transport Safety and Standards as follows: public transport across Victoria. It includes Key government outcomes: metropolitan train, tram and bus services, school Improved transport safety to reduce the Output 201: Strategic Land Use, Transport and country bus services, taxi services for the frequency, severity and cost to the community of and Built Form Planning disabled, country and interstate train services, accidents and incidents, and improved benefits and rail freight services. Key government outcomes: to business from a reduction in costs of regulation and a shift from compliance to Development of Victoria’s transport Output 203: Transport Infrastructure and performance-based standards. infrastructure and land-use systems to support Public Development Projects the Government’s goals for economic Description: development and improved quality of life. Key government outcomes: Implementation of performance-based standards Efficient provision, restoration and maintenance for compliance by transport providers to reduce Description: of built-form infrastructure and new public the cost of regulation to business, raise safety Coordination of the development of facilities to ensure business and industry can levels and improve transport efficiency through infrastructure with land-use development to exploit opportunities in an increasingly regulation reform, education and prevention. provide a long-term framework and sound basis competitive global market-place and to enhance for investment decision-making. Delivery of the quality of life in Victoria. integrated built-form infrastructure strategies for Output 205: Local Governance, Planning • Improved accessibility, reduced road- metropolitan Melbourne and regional Victoria to and Development user costs and maintenance of safe, inform business investment decisions, and reliable and efficient road conditions. Key government outcomes: coordinate land development, transport, energy Improvements to Victoria’s quality of life and and resource infrastructure. • Improved access between industry, port, competitiveness through reform of local rail and airport facilities in particular government and simplification of planning, Output 202: Public Transport Services through the development of the City building and environment standards and Link by linking three major freeways. Key government outcomes: regulations. • Major development projects to improve In pursuit of providing a world-class public the urban amenity and encourage Description: transport service at reduced cost to the taxpayer, private sector investment. Delivery of simplified, streamlined and consistent the Government aimed to privatise services by principles that support business and community March 1999. Privatisation will include specification • Efficient and orderly movement of road development and investment decisions. Policy of minimum service levels, maintenance of safety users and road freight. outcomes include complementary reforms in standards and transfer of risk to the private Description: local governance, statutory planning and public operators. The Government will retain flexibility Management, development and maintenance of construction, which also underpin the Strategic to influence the provision of public transport Victoria’s strategic road network and Land Use, Transport and Built Form Planning services to address future needs. development of major public projects. It includes output. extensions and development of the road system, NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
3. OFFICE OF MAJOR PROJECTS Statement as it has been included in the sponsor agencies’ accounts as either completed works or (i) Land sales works in progress. While the Operating Statement does not include the income or expenditure of The Office of Major Projects generated sponsor agencies, the Balance Sheet does reflect approximately $41.4 million in land sales from funds owing for project works and monies held nominated property development projects during on behalf of sponsor agencies. The following 1998–99. This compares with some $18.1 million summary represents sponsor agencies where in 1997–98 and reflects increased development capital expenditures have been undertaken by the and sales activity, including the Bundoora Office of Major Projects for the year ended development (sold during the year for 30 June 1999. approximately $24.0 million), the continuing Bayside project (approximately $16.4 million), and Office of Major Projects Lynch’s Bridge residential development (approximately $1.0 million). SPONSOR AGENCY 1999 1998 ($’000) ($’000) In accordance with the Accrual Output-based Premier and Cabinet 181,459 137,862 Management framework, revenue earned by the State Development 42,613 13,264 Office of Major Projects must be remitted to the Infrastructure Portfolio 6,876 9,330 Consolidated Fund. Consistent with this policy, Human Services – 486 proceeds from land sales are no longer treated as 230,948 160,942 ‘controlled’ and, as such, are not disclosed in the 1998–99 Operating Statement, but are now disclosed as ‘administered’ revenue (also see note 1[c], 1[f] and note 24).
(ii) Project development and construction management for sponsor agencies
The Office of Major Projects, under delegated authority from the ‘Secretary to the Department’, manages the Government’s interest in delivering major projects, drawing on funds appropriated to sponsor departments.
Completed projects are handed over to the appropriate sponsor agency responsible for occupancy and use of the asset.
Capital works expenditure undertaken during the financial year by the Office of Major Projects has not been included in the Department’s Operating
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 98 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
4. SUMMARY OF COMPLIANCE WITH FINANCIAL DIRECTIVES FOR THE YEAR ENDED 30 JUNE 1999
As a result of the change due to the implementation of Accrual Output-based Management effective from the 1998–99 State Budget (see note 1[c]), provision of outputs relates only to ‘controlled’ activities and not ‘administered’ activities. Further, in 1998, appropriation funding was on a ‘cash’ basis, whereas in 1999 appropriation funding was on an ‘accrual’ basis.
BUSINESS FRANCHISE APPROPRIATION ACT FINANCIAL MANAGEMENT ACT 1994 (PETROLEUM PRODUCTS) ACT 1979
ANNUAL PAYMENTS TOTAL APPROPRIATIONS VARIANCE APPROPRIATION FROM ADVANCE SECTION 3(2) SECTION 29 SECTION 30 SECTION 32 SECTION 35 SECTION 13 PARLIAMENTARY APPLIED TO TREASURER AUTHORITY ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000)
Controlled Provision of outputs 1,738,218 53,675 5,567 117,958 66,500 37,859 24,300 – 2,044,077 2,043,079 998 Additions to net assets 154,602 – – – (66,500) 4,850 – – 92,952 73,485 19,467*
Administered Payments made on 1,321 4,765 – – – – – – 6,086 5,998 (88) behalf of the State 1999 TOTAL 1,894,141 58,440 5,567 117,958 – 42,709 24,300 – 2,143,115 2,122,562 20,377
Controlled and administered 1998 TOTAL 1,441,349 22,480 – 108,123 – 17,442 – 185,802** 1,775,196 1,726,911 48,285
* The variance reflects reduced expenditure for land compensation, Multi Purpose Taxi re-engineering and certain road projects due to variations in the timing of the delivery of these projects
** Better Roads funding is included in annual appropriations in 1999.
5. REVENUE FROM OTHER DEPARTMENTS
1999 ($’000) 1998 ($’000) Revenue from Department of Treasury and Finance for departure packages 1,465 – NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
6. OTHER REVENUE 1999 1998 ($’000) ($’000) Better Roads funding * 30,131 – Miscellaneous receipts – 2,860 30,131 2,860
* In accordance with instructions received from the Department of Treasury and Finance in May 1999, and consistent with the Accrual Output-based Management framework, the Better Roads Trust Fund balance as at 30 June 1998 of $30,131,052 was recognised as ‘other revenue’ of the Department. This balance was previously disclosed as ‘administered’ assets and liabilities in the 1997–98 financial statements.
7. EXPENDITURE ON ROAD, RAIL, BUS AND MARINE SERVICES
1999 1998 ($’000) ($’000) Government rail services 1(d) 828,160 6,480 Government road services 1(d) 739,345 – Private bus and rail services 222,071 205,540 School bus contracts 101,402 96,070 Multipurpose taxi 32,668 29,341 Non-electrified track services 40,220 29,764 Government marine services 1(d) 3,310 – Tow-truck allocation scheme 479 269 Ancillary services – 516 1,967,655 367,980
Activities which were previously classified as ‘administered’ in 1998 are now treated as ‘controlled’ activities in the provision of outputs (also see note 1[c] and 1[d]).
8. ADMINISTRATION EXPENSES 1999 1998 ($’000) ($’000) Salaries, wages and allowances 35,653 37,533 Salary oncosts 8,518 9,276 Services and supplies 41,889 40,473 Departure packages 2,183 2,227 Other (including legal fees, insurance, internal audit) 1,805 1,684 Audit fees 160 248 Doubtful and bad debt expense (recovery) (12) (117) 90,196 91,324
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 100 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
9. PAYMENTS FOR COMMUNITY AND SOCIAL BENEFITS
During the year, funds have been expended on projects for community and social benefits.
1999 1998 ($’000) ($’000) Transport-related activities: – Railway station security and amenities 853 709 – Pensioner subsidies to private bus operators* 698 – – Lydiard Street, Ballarat railway gates 141 – – Flinders Street clocks restoration 110 – – Keep Australia Beautiful campaign – station beautification 100 70 – Other projects 937 1,091
Planning, local government and community activities: – Library grants to local government 22,977 21,436 – Contributions to local government (heritage building restoration, beach cleaning) 4,664 3,984 – Steampacket Plaza – Waterfront (Geelong) 2,389 4,750 – Planning reform assistance 1,170 – – Pride of Place – urban environment design projects 239 2,951 – Year 2000 financial assistance grants 230 – – Urban improvement – Playbox Theatre Precinct 140 – – RMIT heritage buildings refurbishment – 2,000 – Other 233 –
Other activities: – Sports and Entertainment Precinct development 16,182 – – State Boating Council 2,224 2,286 – National Road Transport Commission contribution 591 602 – Water safety/Boating grants 146 287 – National Rail Corporation – 7,554 – Other 2,133 4,689 TOTAL 56,157 52,409
* Previously paid by Public Transport Corporation (to 15 February 1999). NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
10. PAYMENTS INTO THE CONSOLIDATED FUND
1999 1998 ($’000) ($’000) Appropriations of previous years repaid to government 3,256 – Proceeds from land sales – 10,943 Miscellaneous receipts and other asset sales – 4,861 3,256 15,804
11. CAPITAL CHARGE
Capital charge is a cost levied by the Department of Treasury and Finance to reflect the ‘commercial’ cost to the Department if funding for capital purposes had to be borrowed rather than provided by the Government. For the 1999 financial year, the capital charge was based on 8 per cent of the net written-down value of assets.
12. OTHER EXPENSES
1999 1998 ($’000) ($’000) Resources provided free of charge 572 602 Compensation payments under the Planning and Environment Act 1987 22 114 594 716
13. DEPRECIATION
1999 1998 ($’000) ($’000) Depreciation for the year – Properties 72 42 – Furniture and equipment 3,121 3,469 – Leasehold improvements 1,148 999 4,341 4,510
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 102 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
14. ABNORMAL ITEMS (RESULTING FROM GOVERNMENT DIRECTION)
1999 1998 ($’000) ($’000) Transfer of Station Pier from Melbourne Port Corporation (i) 10,660 – Transfer from other departments (ii) 9,390 – Net assets written off on sale of the Building Services Agency (iii) (444) – Relocation and office fit-out paid by the Department of Treasury and Finance 23 914 Land transferred to government entities – (6,955) Sale of motor vehicles – Proceeds from sale of motor vehicles – 3,816 – Written-down value of motor vehicles – (3,969) – Payment (of proceeds) to government – (3,508) Abnormal gain (loss) 19,629 (9,702)
(i) Station Pier was transferred from Melbourne Port Corporation on 30 June 1999 (also see note 1(i))
(ii) Transfer of land at Bundoora from the Department of Human Services to the Office of Major Projects ($8,750,000) and transfer of funds held in trust at Department of Treasury and Finance ($640,000)
(iii) The Building Services Agency was sold on 23 April 1999 under government direction. Gross proceeds from the sale of $2.7 million was paid directly by the purchaser to the Department of Treasury and Finance. If gross proceeds could have been retained as ‘controlled’ revenue, the Department would have shown an overall profit on sale of $2.3 million after assets ($5.4 million which included project works in progress of $2.3 million) and liabilities ($5.0 million) were transferred or written off as a result of the sale of the Building Services Agency.
15. CASH AT BANK, STATE ADMINISTRATION UNIT ACCOUNT, TRUST FUNDS AND SHORT-TERM DEPOSITS
1999 1998 ($’000) ($’000) Cash on hand and at bank 13,037 3,728 State Adminstration Unit 21,837 – Trust funds and short-term deposits 8,836 64,377 Total cash 43,710 68,105 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
16. RECEIVABLES – STATE ADMINISTRATION UNIT
1999 1998 ($’000) ($’000) Current- State Administration Unit 22,648 –
Under Accrual Output-based Management (see also note 1[c]), funds are provided to the Department from government for the full accrual cost of the production of outputs. Appropriations applied are recorded in an account known as the State Administration Unit account which is held by the Department of Treasury and Finance. When funds are withdrawn from the Consolidated Fund to meet daily cash requirements to pay for goods and services associated with the delivery of outputs, the balance of this account is reduced accordingly.
17. DEBTORS*
1999 1998 ($’000) ($’000) Trade debtors 871 20,857 Others (including client agencies) 6,189 14,536 Less: provision for doubtful debts (1) (45) 7,059 35,348
* 1999 debtors reduced significantly over the year due to the reclassification from ‘controlled’ to ‘administered’ (also see note 1(c) and note 1(d)).
18. LOANS
1999 1998 ($’000) ($’000) Current 200 – Non-current 1,800 – Total loans 2,000 –
These loans were previously treated as ‘administered’ in 1998 and now have been reclassified as ‘controlled’ (also see note 1[d]).
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 104 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
19. FIXED ASSETS
1999 1998 ($’000) ($’000)
Properties Infrastructure – Station Pier at valuation 10,660 – Land – at cost 2,555 13,661 – at 1996 valuation – 5,729 – at 1997 valuation 9,910 9,910 – at 1999 valuation 22,100 – 34,565 29,300 Buildings – at cost – 1,047 – at 1996 valuation – 1,520 – at 1999 valuation 3,258 – Accumulated depreciation (13) (71) 3,245 2,496 Heritage assets – at cost 20 – – at valuation 318 – 338 –
Total properties 48,808 31,796
Office assets Furniture and equipment – at cost 15,079 15,917 – at 1997 valuation 213 – Accumulated depreciation (9,036) (9,112) Total furniture and equipment 6,256 6,805 Leasehold improvements 11,837 11,186 Accumulated depreciation (2,285) (1,138)
Total leasehold improvements 9,552 10,048 Work in progress 1,919 224
Total office assets 17,727 17,077
Total net written-down value 66,535 48,873 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
20. CREDITORS AND ACCRUALS*
1999 1998 ($’000) ($’000) Creditors and accruals 26,953 30,091 Project costs payable 21,814 52,144 Security deposits and trust moneys – 86 48,767 82,321 Payable Within one year – current liability 48,767 82,321 Over one year – non-current liability – – 48,767 82,321
* The majority of the amount payable relates to payments due to contractors for works undertaken on behalf of client/ sponsor agencies managed through the Office of Major Projects. The sale of the Building Services Agency during the year has had a significant impact on the level of creditors at year end.
21. EMPLOYEE ENTITLEMENTS
1999 1998 ($’000) ($’000) PROVISIONS Long-service leave 8,498 11,195 Annual leave 2,648 3,235 Executive remuneration 1,797 1,721 12,943 16,151 Payable Within one year – current liability 4,382 4,754 Over one year – non-current liability 8,561 11,397 12,943 16,151
The aggregate employee entitlement liability includes an amount for long-service leave which, as explained in note 1(k) is measured as the present value of the expected future payments to be made in respect of services provided by employees up to the reporting date. The following assumptions were adopted in measuring present value: Weighted average rates of increase in annual employee entitlements to settlement of the liabilities:
1999 1998 Weighted average discount rates: 4.40% 5.40% Weighted average terms to settlement of the liabilities: 15.0 years 15.0 years
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99 106 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
22. ASSET REVALUATION RESERVE
1999 1998 ($’000) ($’000) Opening balance 4,240 4,240 Plus revaluation of: – land 2,300 – – buildings 492 – Closing balance 7,032 4,240
23. NOTE TO THE STATEMENT OF CASH FLOWS
(i) Reconciliation of cash
For the purpose of the statement of cash flows, cash includes cash on hand and in bank (net of outstanding bank overdrafts), cash held in the State Administration Unit account, trust funds and short term deposits. Cash at the end of the reporting period as shown in the Statement of Cash Flows is reconciled to the related items in the balance sheet as follows:
1999 1998 ($’000) ($’000) Cash on hand and at bank 13,037 3,728 State Adminstration Unit 21,837 – Trust funds and short-term deposits 8,836 64,377 Total cash 43,710 68,105
(ii) Reconciliation of ‘net cash provided by operating activities’ to ‘operating surplus/(deficit)’
1999 1998 ($’000) ($’000) Operating surplus/(deficit) 28,975 (6,526)
Net cost from the disposal of non-current assets 11,415 241 Decrease in land inventory (work in progress) 4,918 6,287 Depreciation 4,341 4,510 Increase in creditors impacting on operating statement* 3,136 6,315 Non-cash grants provided 1,060 – (Increase)/decrease in debtors impacting on operating statement* 171 (6,787) Decrease in inventories – 303 (Decrease) in provision for doubtful debts (44) (117) Increase in prepayments (127) (46) Increase/(decrease) in the provision for employee entitlements ** (1,207) 889 Abnormal items (19,629) 6,196 Net increase/(decrease) in agency advances (24,704) 641 Increase in receivables – State Administration Unit (22,648) – Net cash provided by operating activities (14,343) 11,906
* Project works creditors and debtors which do not impact on the operating statement are excluded from the above reconciliation. ** Excludes Building Service Agency employee provisions transferred to purchaser on sale. NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
24. DEPARTMENTAL (CONTROLLED) AND ADMINISTERED TRANSACTIONS
In addition to departmental (controlled) operations which are included in the Balance Sheet, Operating Statement and Statement of Cash Flows, the Department administers or manages certain other activities on behalf of the Government. These administered transactions are determined on an accrual basis and give rise to revenues, expenses, assets and liabilities, and are reflected only in this note to the Financial Statements. Administered transactions do not directly relate to output groups, however a best-estimate allocation has been made to identify these items to an output group.
Controlled STRATEGIC LAND USE, TRANSPORT PUBLIC TRANSPORT SERVICES AND BUILT FORM PLANNING 1999 1998 1999 1998 REVENUE ($’000) ($’000) ($’000) ($’000) Appropriations – revenue for the provision of outputs 11,197 10,732 1,149,495 351,759 Appropriations – additions to net asset base 174 1,812 460 397 Revenue from other departments – – – – Commonwealth Government general-purpose grants – – – – Fee income – Building Services Agency and Office of Major Projects – – – – Proceeds from land sales – Office of Major Projects – – – – Other revenue – – – – Interest income – 21 – 24 Abnormal items (resulting from government direction) 10,660 (271) – (311) TOTAL REVENUE 22,031 12,294 1,149,955 351,869
EXPENSES Road, rail, bus and marine services 4 – 1,124,490 337,947 Victorian Grants Commission – grants to councils – – – – Administration expenses 8,671 11,994 19,106 5,598 Payments for community and social benefits 643 50 3,923 10,313 Payments into the consolidated fund – – – – Capital charge 166 459 373 529 Other expenses – – – – Depreciation 291 409 940 471 Cost of assets sold 2 27 9 31 TOTAL EXPENSES 9,777 12,938 1,148,841 354,889
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
108 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
TRANSPORT INFRASTRUCTURE AND TRANSPORT SAFETY AND STANDARDS LOCAL GOVERNANCE PLANNING TOTAL TOTAL PUBLIC DEVELOPMENT PROJECTS AND DEVELOPMENT 1999 1998 1999 1998 1999 1998 1999 1998 ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) 709,246 20,631 108,358 12,857 64,783 65,894 2,043,079 461,873 70,709 19,905 178 991 1,964 28,456 73,485 51,561 1,465 – – – – – 1,465 – – – – – – 283,957 – 283,957 14,828 22,332 – – 40 – 14,868 22,332 – 18,092 – – – – – 18,092 30,131 – – – – 2,860 30,131 2,860 621 987 – 24 68 109 689 1,165 8,329 (6,909) – (318) 640 (1,893) 19,629 (9,702) 835,329 75,038 108,536 13,554 67,495 379,383 2,183,346 832,138
746,968 29,764 96,193 269 – – 1,967,655 367,980 – – – – – 283,957 – 283,957 25,731 26,691 6,273 8,514 30,415 38,527 90,196 91,324 16,965 2,729 2,530 2,286 32,096 37,031 56,157 52,409 – 11,312 – – 3,256 4,492 3,256 15,804 11,701 4,112 422 540 3,177 8,973 15,839 14,612 – – 80 80 514 635 594 716 1,225 986 138 481 1,747 2,164 4,341 4,510 16,248 7,116 2 32 72 144 16,333 7,352 818,838 82,711 105,638 12,202 71,277 375,923 2,154,371 838,664 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
Controlled STRATEGIC LAND USE, TRANSPORT PUBLIC TRANSPORT SERVICES AND BUILT FORM PLANNING 1999 1998 1999 1998 CURRENT ASSETS ($’000) ($’000) ($’000) ($’000) Cash and trust funds 1,098 (262) (671) 3,186 Receivables – State Administration Unit 290 – 19,937 – Debtors – – – – Prepayments – 3 165 177 Loans – – – – Land inventory – – – – Inventories – – – – 1,388 (259) 19,431 3,363
NON-CURRENT ASSETS Land inventory – – – – Fixed assets 12,364 1,537 3,755 1,768 Loans – – – – 12,364 1,537 3,755 1,768
CURRENT LIABILITIES Creditors and accruals 520 143 20,195 14,584 Provisions for employee entitlements 421 421 928 484 941 564 21,123 15,068
NON–CURRENT LIABILITIES Provisions for employee entitlements 823 980 1,813 1,128 823 980 1,813 1,128
NET ASSETS/(LIABILITIES) 11,988 (266) 250 (11,065)
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
110 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
TRANSPORT INFRASTRUCTURE AND TRANSPORT SAFETY AND STANDARDS LOCAL GOVERNANCE PLANNING TOTAL TOTAL PUBLIC DEVELOPMENT PROJECTS AND DEVELOPMENT 1999 1998 1999 1998 1999 1998 1999 1998 ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) 43,548 61,190 (220) (2) (44) 3,993 43,710 68,105 1,867 – 423 – 131 – 22,648 – 6,263 35,184 – – 796 164 7,059 35,348 175 211 37 19 184 25 562 435 – – – – 200 – 200 – 4,149 7,494 – – – – 4,149 7,494 – – – – 127 – 127 – 56,002 104,079 240 17 1,394 4,182 78,455 111,382
4,051 5,624 – – – – 4,051 5,624 14,809 13,752 1,233 1,806 34,374 30,011 66,535 48,873 – – – – 1,800 – 1,800 – 18,860 19,376 1,233 1,806 36,174 30,011 72,386 54,497
25,804 65,559 376 879 1,872 1,156 48,767 82,321 1,211 1,129 305 495 1,517 2,226 4,382 4,754 27,015 66,688 681 1,374 3,389 3,382 53,149 87,075
2,366 2,955 595 1,152 2,963 5,182 8,561 11,397 2,366 2,955 595 1,152 2,963 5,182 8,561 11,397
45,481 53,812 196 (703) 31,216 25,629 89,131 67,407 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
Administered STRATEGIC LAND USE, TRANSPORT PUBLIC TRANSPORT SERVICES AND BUILT FORM PLANNING 1999 1998 1999 1998 REVENUE ($’000) ($’000) ($’000) ($’000) Appropriation – for payments made on behalf of the State – – – 376,000 Commonwealth grants for on-passing – – – – Commonwealth general-purpose grants – – – – Natural disaster funding – – – – Revenue from disposal of assets – – – 19,549 Miscellaneous receipts – – 123 – Better Roads trust funding – – – – Interest income – – 57 188 TOTAL REVENUE – – 180 396,437
EXPENSES Payments made on behalf of the State – – – 376,888 Payments into the Consolidated Fund – – – 19,549 Natural disaster expenditure – – – – Commonwealth grants on-passed – – – – Transfer of liability from Department of Treasury and Finance – – 89,700 – TOTAL EXPENSES – – 89,700 396,437
CURRENT ASSETS Cash and trust funds – – 634 2,016 Debtors –– 5 – Heritage property loans – – – –
– – 639 2,016
NON-CURRENT ASSETS Shares in National Rail Corporation (at cost) – – 35,100 35,100 Heritage property loans – – – – – – 35,100 35,100
CURRENT LIABILITIES Trust fund liabilities – – 583 2,016 Unearned/Prepaid income – – 745 – – – 1,328 2,016
NON-CURRENT LIABILITIES Unearned/Prepaid income – – 88,832 – – – 88,832 –
NET ASSETS – – (54,421) 35,100
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
112 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
TRANSPORT INFRASTRUCTURE AND TRANSPORT SAFETY AND STANDARDS LOCAL GOVERNANCE PLANNING TOTAL TOTAL PUBLIC DEVELOPMENT PROJECTS AND DEVELOPMENT 1999 1998 1999 1998 1999 1998 1999 1998 ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) – 577,699 – 66,438 5,998 7,639 5,998 1,028,476 – – – – 289,047 – 289,047 – – 106,847 – – – – – 106,847 – – – – 3,519 – 3,519 – 41,374 – – – – – 41,374 19,549 – – – 198 6,850 – 6,973 198 – 185,000 – – – – – 185,000 – – 1 – – – 57 188 41,374 869,546 1 66,636 305,414 7,639 346,968 1,340,258
– 762,699 – 66,438 5,998 7,639 5,998 1,213,664 15,107 106,847 – 198 6,587 – 21,694 126,594 – – – – 3,519 – 3,519 – – – – – 289,047 – 289,047 – – – – – – – 89,700 – 15,107 869,564 – 66,636 305,151 7,639 409,958 1,340,258
3 30,131 29 – 2,323 2,253 2,989 34,000 39,684 – – – 263 – 39,952 – – – – – – 2,260 – 2,269
39,687 30,131 29 – 2,586 4,513 42,941 36,660
– – – – – – 35,100 35,100 – – – – – 800 – 800 – – – – – 800 35,100 35,900
– 30,131 29 – 2,323 2,253 2,934 34,400 – – – – – – 745 – – 30,131 29 – 2,323 2,253 3,679 34,400
– – – – – – 88,832 – – – – – – – 88,832 –
39,668 – – – 263 3,060 (14,740) 38,160 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
25. COMMITMENTS FOR CAPITAL EXPENDITURE
At reporting date, the ‘Secretary’ had entered into contracts when operating under the Project Development and Construction Management Act 1994 through the Office of Major Projects, for construction expenditures in the following portfolios:
Summary of commitments
Office of Major Projects
1999 1998 ($’000) ($’000) Premier and Cabinet 91,459 129,849 State Development 26,802 5,977 Human Services – 211 Infrastructure Portfolio 12,629 260 Total 130,890 136,297
Capital commitments outstanding at year end: Within 1 year 124,790 113,093 Between 1 and 2 years 6,100 23,204 130,890 136,297
26. COMMITMENTS FOR LEASE EXPENDITURE
(i) Commitments for operating leases At the reporting date, the Department had the following obligations under non–cancellable leases (these obligations are not recognised as liabilities).
1999 1998 ($’000) ($’000) Operating lease commitments outstanding at year end Within 1 year 4,494 5,633 Between 1 and 2 years 4,412 4,365 Between 2 and 5 years 13,575 13,706 Greater than 5 years 12,517 17,186 34,998 40,890
(ii) Commitments for finance leases At the reporting date the Department had no finance lease arrangements.
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
114 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
27. CONTINGENT LIABILITIES 28. DISCLOSURES RELATING TO (ii) Remuneration MINISTERS AND THE ACCOUNTABLE Remuneration receivable by the Contingent liabilities arise from guarantees, OFFICER Accountable Officer during the year in indemnities and other forms of support connection with the management of the In accordance with the Directions of the provided by the Government and from legal Department was in the range: disputes and other claims against the Minister for Finance under the Financial Income between Number Government arising from a past event. Management Act 1994, the following $270,000–279,999 Contingent liabilities by definition are similar disclosures are made for the Responsible (1998 – $400,000–410,000)* 1 to a liability–the distinguishing feature Ministers and the Accountable Officer. being the uncertainty over the (i) Persons who held the above positions in * 1998 included payment of bonus at the Government’s obligation. relation to the Department at any time end of a five-year employment contract. The following is a summary of contingent during the reporting period are: The relevant amounts relating to Ministers liabilities: Responsible Ministers are reported separately in the Financial Statements of the Department of Premier • three claims relate to legal disputes The Hon. Robert Maclellan, MLA and Cabinet. involving personal injury and suffering, Minister for Planning and Local totalling $0.392 million Government (iii) Other transactions
• one claim relates to a legal dispute The Hon. Geoff Craige, MLC (a) Shares held on behalf of the State of involving a patent infringement Minister for Roads and Ports Victoria – Under the National Rail Corporation Shareholders Agreement, • three claims relate to equal The Hon. Robin Cooper, MLA the Minister for Transport holds on opportunity issues concerning local Minister for Transport school buses, totalling $0.105 million behalf of the State of Victoria, shares Accountable Officer – Dr John Paterson in the National Rail Corporation with a • five claims relate to legal disputes that Secretary paid-up value of $35.1 million. This are yet to be quantified For the period 17 September 1998 to amount has been taken up as an • one claim relates to zoning 2 October 1998, Mr David Berry acted in the administered asset. classifications contained in a planning position of Secretary of the Department while (b) Other related transactions and loans certificate issued by the Department. the Secretary was on leave. requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
29. EXECUTIVE OFFICERS’ REMUNERATION
The numbers of executive officers, other than Ministers and accountable officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.
Several factors have affected total remuneration payable to executives over the year: a number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts include only the payment of bonuses on the successful completion of the full term of the contract. A number of these contract completion bonuses became payable during the year.
TOTAL REMUNERATION BASE REMUNERATION INCOME BAND 1999 1998 1999 1998 NO. NO. NO. NO.
Less than $100,000 18 24 26 29 $100,000 – 109,999 8 13 15 18 $110,000 – 119,999 9456 $120,000 – 129,999 7365 $130,000 – 139,999 5220 $140,000 – 149,999 2211 $150,000 – 159,999 3410 $160,000 – 169,999 0100 $170,000 – 179,999 2744 $180,000 – 189,999 2200 $190,000 – 199,999 2010 $200,000 – 209,999 3000 $210,000 – 219,999 0011 $240,000 – 249,999 1000 $260,000 – 269,999 0100 $310,000 – 319,999 0100 Total numbers 62 64 62 64
Total amount $7,303,964 $7,640,194 $6,383,420 $6,245,935
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
116 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
30. SUPERANNUATION SCHEMES – LIABILITY AND CONTRIBUTIONS
No liability is shown for the Department’s notional share of unfunded superannuation in the Balance Sheet. In line with government policy, the unfunded superannuation liability has been reflected in the Financial Statements of the Department of Treasury and Finance. However, superannuation contributions for the reporting period are included as part of salaries and associated costs in the Operating Statement of the Department.
Details of major employee superannuation funds and contributions made by the Department are as follows:
CONTRIBUTION CONTRIBUTIONS CONTRIBUTION CONTRIBUTIONS FOR THE YEAR OUTSTANDING FOR THE YEAR OUTSTANDING AT YEAR END AT YEAR END 1999 1999 1998 1998 $ $ $ $ FUND State Superannuation Scheme–revised and new 2,149,808 – 2,377,818 – Victorian Superannuation Fund 1,461,922 246 522,729 489 Water Industry Superannuation Fund 111,542 37,781 238,637 – Transport Superannuation Fund 94,852 8,215 178,010 – GIO Life Ltd 88,614 – 51,957 – Various other 384,316 560 172,201 –
Total 4,291,054 46,802 3,541,352 489
The basis for contributions are determined by the various schemes and also relate to salary sacrifice arrangements. The requirements of the Superannuation Industry (Supervision) Act 1993 are fully complied with.
31. TRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT-CONTROLLED ENTITIES
During the 1998–99 financial year, transactions were undertaken with other Victorian government- controlled entities.
These transactions are summarised as follows: 1998–99 1997–98 $’000 $’000 INTRA INTER INTRA INTER Assets – 60,014 – 31,357 Liabilities – 21,814 – 289 Revenues – 2,189,595 – 1,747,685 Expenses 746,802 912,373 1,216,705 75,166
‘Intra’ transactions are between entities within the Department’s portfolio. ‘Inter’ transactions are with entities outside the portfolio controlled by the Victorian Government. NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
32. FINANCIAL INSTRUMENTS
(a) Terms, conditions and accounting policies
The Department’s accounting policies, including the term and conditions of each class of financial asset and financial liability, both recognised and unrecognised, at balance date for controlled and administered are as follows:
RECOGNISED FINANCIAL INSTRUMENTS ACCOUNTING POLICIES TERMS AND CONDITIONS
(i) Financial assets (controlled and administered)
Cash on hand and at bank, State Cash on hand and at bank, trust funds and Where possible, Cash is invested as funds Administration Unit, trust funds and short- short-term deposits are carried at the permit at varying interest rates between term deposits. principal amount. 3.45–4.00 per cent.
Debtors Debtors are carried at nominal amounts due, Generally normal credit terms are (including receivables). less any provision for doubtful debts. 30 days, except for debtors relating to Office Estimated doubtful debts are based on of Major Projects developments where units examination and assessment of each need to be completed before settlement can individual debt. take place.
Other debtors mainly relate to government departments and agencies and as such the credit risk is minimal.
Investments Investments are carried at their principal Investments mainly relate to shares amounts. held on behalf of the State as an administered item and are non-interest bearing.
Loans Loans are carried at their principal amounts. Loans are interest-free.
(ii) Financial liabilities (controlled and administered) Creditors and accruals. Creditors and accruals are recognised for Terms of settlement are generally 30 days amounts to be paid in the future for goods from the date of invoice in line with and services received whether or not billed government guidelines. by the supplier.
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
118 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
(b) Interest rate risk
The Department’s exposure to interest rate risks and effective interest rates of financial assets and financial liabilities both recognised and unrecognised at balance date are as follows:
VARIABLE INTEREST NON-INTEREST BEARING WEIGHED EFFECTIVE 1999 1998 1999 1998 INTEREST RATE ($’000) ($’000) ($’000) ($’000) %
Financial instruments
Controlled
(i) Financial assets Cash and trust funds 43,710 68,105 – – 3.5 Receivables – State Administration Unit 22,648 – – – n.a. Debtors – – 7,05935,348 n.a. Loans – – 2,000 – 0 Total financial assets 66,358 68,105 9,059 35,348
(ii) Financial liabilities Creditors and accruals – – 48,767 82,321 n.a.
Total financial liabilities – – 48,767 82,321
Administered
(i) Financial assets Cash and trust funds – – 2,989 34,400 0 Debtors – – 39,952 – n.a. Loans – – – 3,060 0 Investments – – 35,100 35,100 n.a.
Total financial assets – – 78,041 72,560
(ii) Financial liabilities
Trust fund liabilities – – 2,934 34,400 n.a.
Total financial liabilities – – 2,934 34,400 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
(c) Net fair value (d) Credit risk exposure
The aggregate net fair values of financial assets and financial liabilities at balance date are The Department’s maximum exposures to credit as follows: risk at balance date in relation to each class of recognised financial asset is the carrying amount TOTAL CARRYING AMOUNT AGGREGATE NET FAIR VALUE AS PER THE BALANCE SHEET of those assets as indicated in the Balance Sheet. 1999 1998 1999 1998 ($’000) ($’000) ($’000) ($’000)
Financial instruments
Controlled (i) Financial assets Cash and trust funds 43,710 68,105 43,710 68,105 Receivables – State Administration Unit 22,648 – 22,648 – Debtors 7,059 35,348 7,059 35,348 Loans 2,000 – 2,000 – Total financial assets 75,417 103,453 75,417 103,453 (ii) Financial liabilities Creditors and accruals 48,767 82,321 48,767 82,321 Total financial liabilities 48,767 82,321 48,767 82,321
Administered (i) Financial assets Cash and trust funds 2,989 34,400 2,989 34,400 Debtors 39,952 – 39,952 – Loans – 3,060 – 3,060 Investments 35,100 35,100 35,100 35,100 Total financial assets 78,041 72,560 78,041 72,560
(ii) Financial liabilities Trust fund liabilities 2,934 34,400 2,934 34,400 Total financial liabilities 2,934 34,400 2,934 34,400
The following methods and assumptions are used to determine the net fair values of financial assets and liabilities: Recognised financial instruments: Cash and trust funds: The carrying amount approximates fair value. Debtors and loans: The carrying amount approximates fair value.
FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
120 NOTES TO AND FORMING PART OF THE 1999 FINANCIAL STATEMENTS
33. POST-BALANCE DATE EVENTS
Passenger rail franchises
On 29 August 1999, responsibility for the provision of certain public transport services transferred from State-controlled entities to new private operators. Under Franchise Agreements executed between the Director of Public Transport and the new private operators (which include Metrolink, National Express and Melbourne Transport Enterprises), public train and tram services will be provided by the new private operators for periods ranging from 10 to 15 years. These agreements specify criteria in terms of service delivery and the quality of such services, and the Department will make certain operating, capital and performance-based franchise payments (including incentives and penalties) to the new private operators from its annual appropriation. These transactions will replace the payment of grants previously made to the State-controlled transport entities.
Agreements have been entered into between the Department and the Victorian Rail Track to lease metropolitan and country infrastructure assets to the Department. These assets have been subleased to the new private operators. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE ANNUAL REPORT 1998–99
122 APPENDIXES
1. Output performance measures 1998-99 124
2. Legislation 137
3. Freedom of Information 145
4. Local government 146
5. Major publications 1998-99 148
6. National competition policy 149
7. Staff profile 150
8. Consultants 151
9. Other available information 152
10. Compliance index 153
11. Directory 156 1. OUTPUT PERFORMANCE MEASURES 1998-99
STRATEGIC PLANNING AND ECONOMIC SERVICES 1010 LAND USE AND TRANSPORT PLANNING STRATEGIES
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Strategic long-term metropolitan land use date start March 1999 quarterly 100% and transport planning review Regional strategies (five) and rural policies date complete Mar. 1999 quarterly 100% DOI’s five-year strategic capital program date ongoing quarterly 100% Quality Projects completed against agreed plans % 100 quarterly 100% and time frames Timeliness (included in quality measure)
1030 TRANSPORT POLICY AND REFORM Quantity Transport policy review completed date complete July 1998 quarterly 100% Non-motorised transport users strategy date complete Mar. 1999 quarterly 100% Quality Projects completed against agreed plans and time frames % 100 quarterly 100% Timeliness (included in quality measure)
1020 PORT AND SHIPPING STRATEGY Quantity Strategic planning and infrastructure study * date complete Dec.1998 quarterly 100% Quality Projects completed against agreed plans and time frames % 100 quarterly 100% Timeliness (included in quality measure) * Changes in project management and data delays have resulted in changes to the completion data of the project to June 2000. PUBLIC TRANSPORT SERVICES 2010 LAND USE AND TRANSPORT PLANNING STRATEGIES
UNIT 1998–99 FREQUENCY YTD Quantity (new measure) TARGET ACTUAL Services scheduled million 0.511 quarterly 0.52 Quality Train passengers carried million > 112.6 annual 118.0 Timeliness Services within five minutes of timetable peak % 90 quarterly 91.2% all day % 94 quarterly 94.0%
2020 METROPOLITAN TRAM SERVICES Quantity (new measure) 2.131 quarterly 1.49 Services scheduled* million >115.4 quarterly 120.3 Quality Tram passengers carried million Timelines Services no more than five minutes late or one minute early % 88 quarterly 87.4% * Performance measure reported against is ‘Service hours scheduled’ (target 1.526 million) rather than ‘Services scheduled’.
2030 COUNTRY AND INTERSTATE TRAIN Quantity (new measure) Kilometres scheduled * million 15.911 quarterly 17.12 Quality Train and road coach passengers carried ** million 8.314 quarterly 7.857 Timeliness % Road coach services within five minutes of timetable % 98.5 quarterly 98.0% Inter urban train services within five minutes of timetable (all day) % 93.5 quarterly 93.7% Inner-city train services within 10 minutes of timetable (all day) % 96 quarterly 96.0% Interstate train services within 30 minutes of timetable % 95 quarterly n.a. * Kilometres scheduled is above the annual target as 101 additional services were introduced in December 1998. ** End of year result excludes interstate patronage. 2050 METROPOLITAN BUS SERVICES
UNIT 1998–99 FREQUENCY YTD Quantity (new measure) TARGET ACTUAL Kilometres scheduled million 68.6 quarterly 68.50 Quality Bus passengers carried million 91.5 annual 91.5 Timetabled bus services delivered % 99 quarterly 99.9% Timeliness Bus services within five minutes of timetable % 95 quarterly 93.4%
2060 COUNTRY BUS SERVICES Quantity (new measure) Kilometres scheduled million 11.7 quarterly 11.6 Quality Country bus passengers carried million 10.9 annual 10.9 Timetabled bus services delivered % 99 quarterly 100% Timeliness Bus services within five minutes of timetable % 95 quarterly 99.1%
2070 FAST TRACK FREIGHT Quantity Maintain freight gates for the provision no. of of Fast Track and charity services locations 28 quarterly 30 Quality Reduction in number of customer complaints* % 10 annual nil Timeliness Fast Track service consignments within agreed delivery time % 95 quarterly n.a.
* There is no current system for measuring service levels. This is being revised with the introduction of new computer systems on 1 November 1999. 2080 TAXI SERVICES FOR THE DISABLED
Quantity UNIT 1998–99 FREQUENCY YTD TARGET ACTUAL Taxi trips taken passenger only number 4,665,500 quarterly 4,891,107 with wheelchair* number 348,500 quarterly 377,743 Applications assessed number 25,000 quarterly 24,115 Quality Reduction in customer complaints % 10 annual 10% Timeliness Applications completed within 10 working days % 90 annual 96% * Wheelchair variance due to increased level of demand driven by external factors.
2090 SCHOOL BUS SERVICES Quantity Kilometres scheduled (new measure) million 33 quarterly 33 Quality Timetabled bus services delivered % 99 quarterly 100% Timeliness Services within five minutes of timetable % 95 quarterly 99.6%
2100 NIGHT TRANSPORT SERVICES Quantity (new measure) Kilometres scheduled million 0.467 quarterly 0.47 Quality Passengers carried million 0.083 quarterly 0.08 Timeliness Services within five minutes of timetable % 95 quarterly 99% TRANSPORT INFRASTRUCTURE AND PUBLIC DEVELOPMENT PROJECTS 3010 NON-ELECTRIFIED RAIL TRACK SYSTEM
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Length of track under management km 5,125 quarterly 5,125 Quality Percentage of track under temporary speed restriction % 5 quarterly 1.3% Timeliness Services delayed due to track condition/ management % 5 quarterly 2%
3020 ROAD SYSTEM DEVELOPMENT Quantity Length of road pavement (includes completed lane km 54,000 quarterly 50,400 and opened roads only) Number of structures number 4,760 quarterly 4,760 Length of roadside carriage way km 23,910 quarterly 23,910 City Link project delivered by Transurban in accordance % 100 quarterly 100% with project documents * Timeliness Programmed works >$5 million % 100 quarterly 97% completed on time and on budget State works undertaken by Transurban in accordance % 100 quarterly 98% with agreed time frame ** * Although Western Link has not been delivered within the ambitious time frames announced by Transurban, their contractual obligation to the State is to deliver the completed project by June 2000. There remains nothing to suggest that will not be achieved. ** The full-year expenditure on State Works was $54.2 million against an original schedule of $55.5 million, or 97.7 per cent. The small shortfall will be made up in the following year. 3040 ROAD SYSTEM MAINTENANCE
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Length of road pavement lane km 50,400 quarterly 54,400 (includes completed and opened roads only) Number of structures number 4,670 quarterly 4,798 Length of roadside carriage way km 23,910 quarterly 23,930 Road pavement resurfaced km 4,150 quarterly 4,190 Road pavement rehabilitated lane km 560 quarterly 600 Quality Road pavement with unacceptable roughness km 320 quarterly 315 (>140 NRM over 500 m) Proportion of travel on smooth roads (<110 NRM) % 89 quarterly 89% Structures with load height or width deficiencies number 209 quarterly 204 Timeliness Programmed maintenance completed on time and on budget % 100 quarterly 99
3050 TRAFFIC MANAGEMENT AND INFORMATION Quantity Principal traffic routes treated with traffic management improvements % 11 quarterly 11.8% Arterial roads with traffic flow management (total arterial network) rural (km) km 19,007 quarterly 19,007 urban (km) km 3,241 quarterly 3,241 Traffic incidents attended* number 40,000 quarterly 20,248
Quality Reduction in travel time on principal traffic routes % 2 annual 2.6% Additional travel time per kilometre (congestion indicator) peak – am mins/km 0.68 annual 0.69 peak – pm mins/km 0.56 annual 0.56 off peak mins/km 0.40 annual 0.39 all day mins/km 0.50 annual 0.49 Traffic incidents restored within 50 minutes % 85 quarterly 82% Timeliness (included in quality measure) * The measure is below the annual target as VicRoads no longer provides a roadside breakdown service for motorists. The measure now only includes emergency freeway towing, traffic signal faults and on-road hazards. 3070 MAJOR PUBLIC CONSTRUCTION AND LAND DEVELOPMENT
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL (key Victorian Government major projects) Docklands commence Stage 1 of Yarra Waters precinct date Dec. 1998 quarterly Nov. 98 commence trunk infrastructure construction date July 1998 quarterly Aug. 98 Melbourne Museum complete building construction date June 1999 quarterly 90% National Gallery of Victoria commence construction * date April 1999 quarterly 0% Federation Square complete deck construction** date June 1999 quarterly 85% Mont Park residential development commerce development construction*** date Feb. 1999 quarterly 0% Sports and Entertainment Precinct complete tram route relocation date June 1999 quarterly 98% Jolimont Precinct coordination complete project date ongoing quarterly 100% Quality Projects delivered within budget against agreed plans and time frames % 100 quarterly 94% Private to public investment on land development projects **** ratios $ million 80:1 annual 69:1 Operational expenditure to total public and private construction ***** ratios $ million 100:1 annual 140:1 Timeliness (included in quality measure) * Following completion of Archive Centre and NGV Tempex, construction expected to start November 1999. ** Completion of Federation Square deck construction delayed due to industrial action. *** Development construction expected to start early 2000. **** Delays in the development of Bundoora and sale of land at Jolimont Eastside as a result of Exhibition Street Extension. ***** Increased operational expenditure to total public and private construction is due to lower-than- budgeted operating costs. TRANSPORT SAFETY STANDARDS 4010 MARINE SAFETY REGULATION AND ACCREDITATION
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL New commercial vessels surveyed number 165 annual 217 Commercial vessels in service surveyed number 680 annual 630 Marine operators certificates issued number 220 annual 339 Quality Recreational boating conforms to safety standards* % 95 anual 87% Reported oil pollution incidents responded to and resolved % 100 quarterly 100% Timeliness All survey/certificates issues within established time frames % 100 quarterly 100% Oil pollution incidents responded to within four hours of report % 90 quarterly 100% * Results based upon Victoria Water Police’s enforcement statistics and the percentage of inspections that resulted in safety equipment infringement notices being issued.
4020 TAXI AND TOW TRUCK SERVICES Quantity Taxis and tow trucks audited * number 9,000 quarterly 13,746 Tow trucks licensed ** number 650 quarterly 474 Quality Taxis and tow trucks conform to quality standards % >90 quarterly >90 Serious taxi service complaints investigated *** number 370 quarterly 342 Telephone at Tow Truck Allocation Centre answered within 45 seconds % 95 quarterly 96% Timeliness Preliminary investigation of serious taxi service complaints completed within 10 working days % 85 quarterly 90% Allocation of accident to tow truck depot within five minutes % 85 quarterly 92%
* End-of-year result is above annual target as the enforcement group has increased its audit check activity at venues where the Victorian Taxi and Tow Truck Directorate has a direct involvement and where a large number of taxis congregate, for example, Grand Prix, Tennis Open, Tullamarine Airport. ** Outturn of 176 below budget reflects the downturn within the industry applying for tow-truck licences. *** lower level of serious taxi service complaints investigated is a factor of the level of complaints received by the directorate. 4030 ROAD SAFETY
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Black spot/black length treatments* number 167 quarterly 107 Black spots/black lengths remaining number 175 quarterly n.a. Railway level crossing treatments number 24 quarterly 30 Road user programs number 75 annual 70 Quality Reduction in casualties at treated black spot/black length sites % 15 annual 19 Reduction in road user casualties ** Drivers % 5 annual (4.6)% Passengers % 5 annual (4.4)% Motorcyclists % 5 annual (5.5)% Bicyclists % 2 annual 9.3% Pedestrians % 5 annual (4.1)% Fatal crashes a year due to vehicle defects % 1.5 annual 0.3% Vehicle fleet which passes each first roadworthy certificate inspection % 25 annual 24% Timelines (included in quality measure) * Result includes only projects completed. An additional 31 projects are in progress and 22 projects have been deferred until next financial year. In addition, seven projects have been abandoned due to the change in the scope of the projects and the subsequent impact on cost. ** Increased private and commercial travel resulting from increased economic activity in the 1998-99 financial year has resulted in an increase in road user casualties. 4040 PUBLIC TRANSPORT SAFETY REGULATION AND ACCREDITATION
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Accreditation applications processed * Rail number 33 quarterly 28 Bus number 600 quarterly 7 Quality Accreditation applications completed within six months % 100 quarterly 100 Audits carried out within 12 months of accreditation % 100 quarterly 100 Timeliness (included in quality measure) * Privatisation of the rail corporations proceeded in late June. As a result, no new applications were received in the June quarter. Regulations for bus accreditation were made on 25 May 1998, rather than October 1998, delaying applications for accreditation.
4050 DRIVER LICENSING AND VEHICLE REGISTRATION Quantity Driver licences issued number 105,700 quarterly 101,391 Driver licences renewed number 158,542 quarterly 153,391 Vehicle registrations issued* number 353,200 quarterly 406,638 Vehicle registrations renewed number 3,240,500 quarterly 3,559,672 Vehicle registration transfers number 782,100 quarterly 812,160 Vehicle and driver information request processed** number 636,400 quarterly 898,321 Quality User satisfaction with registration and licensing % >90 annual n.a. Currency of registration and licensing records % 98 quarterly 99.3% Timelinesss Customers serviced within 10 minutes in licensing and registration offices % >80 quarterly 81.5% Average time to answer central telephone calls seconds 40 quarterly 25.92
* The increase in vehicle registrations issued related to the buoyant market for motor vehicles impacted by the low level of interest rates from financial institutions. ** During March, the Victoria Police had a larger-than-planned request for motor vehicle and driver information. 4060 ROAD USE MANAGEMENT
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Milestones achieved in the implementation of National Heavy Vehicle Reforms number 5 quarterly 5 Quality Cost of transporting goods (user cost/distance) Urban freight cents/km 31.5 annual 30 Rural freight cents/km 9.5 annual 9
Timeliness (included in quality measure) LOCAL GOVERNANCE, PLANNING AND DEVELOPMENT 5010 STATUTORY PLANNING AND ENVIRONMENT ASSESSMENT
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL New Planning Schemes completed date June 1999 annual June 99 (total of 81(a)) number 42 quarterly 43 Environment Effects Statement requests assessed* number 40 quarterly 22 Planning scheme permits issued* number 260 quarterly 81 Planning certificates issued* number 80,000 quarterly 68,895 Quality Reduction in planning scheme amendments* % 30 annual 38 number 525 quarterly 468 Reduction in planning application processing time by councils. % 10 annual n.a. Timelinesss (included in quality measure) * Subject to market demand. 5040 URBAN DESIGN AND BUILDING INITIATIVES Quantity Planning policy guidelines number 4 quarterly 4 Public construction and asset management guidelines number 4 quarterly 4 Market information and demographic forecasts number 5 quarterly 5 Quality Projects completed against agreed plans and timeframes % 100 quarterly 100% Timeliness (included in quality measure) 5020 HERITAGE CONSERVATION Quantity Heritage places assessed number 200 quarterly 204 Heritage permits and consents issued number 400 quarterly 448 Quality Damage to historic shipwrecks in Victorian waters instances <5 annual nil Stakeholder agreement to heritage place listings % 90 quarterly 90.5% Objections to permits and consents % <5 quarterly 3.3%
Timelinesss Statutory time frames met % 100 quarterly 97.5% 5030 LOCAL GOVERNMENT PERFORMANCE STANDARDS AND REGULATIONS
UNIT 1998–99 FREQUENCY YTD Quantity TARGET ACTUAL Funding and service agreements for public library services reviewed and updated number 43 quarterly 44 Performance measurement system incorporated in council reporting* date Sept. 1999 annual 100% Development of common contract conditions and specifications for key council services ** % of services 30 annual 30% Quality All local laws comply with National Completion Policy *** date June 1999 annual 70% Service charters in place for all major council services date June 1999 annual 78% Timeliness Council reports lodged within statutory time frames % 100 annual 98% * Performance measurement system to be published in councils’ annual reports. ** Policy redirection toward development of best practice guidelines for tendering of key council services. *** Seventy per cent of councils reported their compliance in their local law reviews.
5060 LAND TRANSACTIONS MONITORING Quantity Submissions assessed number 650 quarterly 855 Quality Transactions comply with government policy % 100 quarterly 100% Timeliness Response to submissions completed within three days % 80 quarterly 76% 2. LEGISLATION BUILDING ACT 1993
As at 30 June 1999 the following Acts were The Act, which came into operation on 1 July administered by the Minister for Planning 1994, provides for the regulation of building and Local Government, the Minister for and building standards. The Act establishes Roads and Ports, and the Minister for the Building Control Commission. The Act Transport. facilitates the adoption of national uniform building standards, and reforms aspects of ACTS ADMINISTERED BY legal liability for building matters. The Act THE MINISTER FOR also regulates building practitioners in order PLANNING AND LOCAL to provide for both private building surveyors GOVERNMENT and qualified municipal employees to issue building and occupancy permits. ARCHITECTS ACT 1991 The Act also establishes the Plumbing The purposes of the Act are to: Industry Commission to oversee the
• provide for the registration of architects occupational regulation of plumbing. and the approval of architectural CASINO CONTROL ACT 1991 partnerships and architectural companies (Sections 128H to 128L, excluding 128K(2) which is administered by the Minister • regulate the professional conduct of for Finance) architects and provide a procedure for handling complaints against architects The Act is primarily the responsibility of the Minister for Gaming. The Minister for • regulate the use of the words Planning and Local Government, however, ‘architect’, ‘architecture’ and administers provisions related to the ‘architectural’ acquisition of land, road closures and the • establish the Architects Registration development of crown land for the purposes Board of Victoria. of the Melbourne Casino.
BAYSIDE PROJECT ACT 1988 CHINATOWN HISTORIC PRECINCT ACT 1984 The purpose of this Act is to facilitate the development and use of certain land at Port (Jointly administered with the Minister for Melbourne. Much of this Act was specific to Tourism) the Sandridge development and has been The purpose of the Act is to provide for the repealed. Provisions of the Act that have operation, management, development and been retained include provisions dealing with promotion of Little Bourke Street between approval of plans of subdivision, reclamation Exhibition Street and Swanston Street as the of land, allowing for reclaimed land to be Chinatown Historic Precinct. The Act also placed within a municipality, and allowing establishes the Chinatown Historic Precinct for land to be revested in the Port of Committee. Melbourne Authority. CITY OF GREATER GEELONG ACT 1993 ENVIRONMENT EFFECTS ACT 1978
(excluding Part 5, which is administered by The Act sets up a procedure whereby the the Minister for Rural Development) potential environmental impacts of proposed
This Act provides for the restructuring of developments which are likely to have certain councils in the Geelong region, the significant environmental effects are assessed constitution of the City of Greater Geelong before decisions are made. and the abolition of the Geelong Regional GEELONG MARKET SITE ACT 1983 Commission. The purpose of the Act is to allow the CITY OF MELBOURNE ACT 1993 Greater Geelong City Council to redevelop
Under the Act the city’s municipal the land known as the Geelong Market Site, boundaries were redrawn to incorporate either in its own right or in association with the city’s existing and future major assets. other persons, and to borrow money for The Act created a new City of Melbourne that purpose. with a clear focus on the administration and HEALTH ACT 1958 enhancement of key assets. (Section 228 and Part 20 where it relates to COMO PROJECT ACT 1994 the operation of section 228). While the
The main purposes of the Act are: Minister for Health and the Minister for Youth and Community Services have primary • to repeal the South Yarra Project responsibility for the Act, the Minister for Act 1984 Planning retains a provision providing a • to end the Agreement ratified by capacity for the making of regulations that Act regarding certain buildings and premises. • to amend the South Yarra Project HERITAGE ACT 1995 (Subdivision and Management) Act 1985. The Act provides a new framework for heritage protection and conservation CULTURAL AND RECREATIONAL in Victoria. LANDS ACT 1963
This Act provides for concessional rating for IMPOUNDING OF LIVESTOCK ACT 1994 open space, cultural and recreational land. The Act provides for and regulates the DOCKLANDS AUTHORITY ACT 1991 impounding of livestock trespassing on any The purpose of this Act is to facilitate the land or roads across the State. It sets out who development of the Docklands area and to is authorised to impound, and the rights and establish a Docklands Authority to encourage obligations of those persons. It repeals the that development. Pounds Act 1958 and amends other Acts dealing with impoundment of livestock on crown land. LAND (GOONAWARRA GOLF COURSE) arrangements, the size of councils, the LOCAL GOVERNMENT (NILLUMBIK ACT 1988 payment of allowances to councillors, probity SHIRE COUNCIL) ACT 1998 The Act authorises the sale of the land requirements of councillors, the annual This Act dismissed the Nillumbik Shire known as the Goonawarra Golf Course to the reports, corporate plans and budgets of Council, provided for the expiry of the order Municipality of the Shire of Bulla. councils, declaration of rates, payment of that applies for this council, and sets a rates by new owners and a number of other date for a general election of the Nillumbik LIBRARIES ACT 1988 measures to improve the effectiveness and Shire Council. This Act is primarily the responsibility of the efficiency of local government. Minister for the Arts. The Minister for MELBOURNE CITY LINK ACT 1995 LOCAL GOVERNMENT Planning and Local Government, however, The Act ratifies the agreement between the (CONSEQUENTIAL PROVISIONS) administers Part IV, which relates to Library ACT 1989 State and Transurban relating to the Purposes Trusts. construction and operation of the Melbourne This Act provides for the necessary repeals City Link; gives the Melbourne City Link and transitional arrangements required to LOCAL GOVERNMENT ACT 1989 Authority certain powers in relation to land implement the change from the Local (Excluding sections 44-46, 48-49, section affected by the project; gives the Melbourne Government Act 1958 to the Local 243 in so far as it relates to municipal City Link Authority certain powers in relation Government Act 1989. electoral tribunal and schedule 4 excluding to roads in the project area; and empowers clause 1(b). These provisions are administered LOCAL GOVERNMENT (DAREBIN CITY the fixing, charging and collection of tolls in by the Attorney-General. Also excluding COUNCIL) ACT 1998 relation to the use of vehicles on toll zones. clauses 4 and 9(3) of Schedule 11 and The Act provides for the dismissal of the section 123 in so far as it relates to the MELBOURNE CITY LINK AUTHORITY Darebin City Council and for arrangements for ACT 1994 revocation of local laws made pursuant to the election of new councillors. the powers conferred by those clauses by The Act establishes the Melbourne City Link reason of section 207. These provisions are LOCAL GOVERNMENT (GOVERNANCE Authority, and facilitates the project for the administered by the Minister for Roads and AND MELTON) ACT 1998 development of the Southern Link and Ports). This Act amends three Acts: the Docklands Western Link. Authority Act 1991, the City of Melbourne The Act provides administrative and MELBOURNE CITY LINK (EXHIBITION legislative powers for local government, Act 1993, and the Local Government Act STREET EXTENSION) ACT 1998 1989 to allocate powers to the Docklands outlines the broad purpose and functions of This Act provides for the Exhibition Street Authority of a municipal council in respect councils, provides for electoral processes, Extension Agreement to be ratified. financial, accounting and rating of the docklands area and to enable the arrangements, establishes the Local residents and ratepayers of the Shire of MUNICIPAL ASSOCIATION ACT 1907 Melton to choose how their council is to Government Board and provides for the This Act provides for the establishment of the be administered. restructuring of councils. The Act Municipal Association of Victoria as a incorporates recent amendments relating to statutory body corporate. ‘designated positions’, Chief Executive Officers, competitive tendering, the dates of the municipal financial year, the dates of council elections, regional corporations, rates and charges, audit arrangements, electoral MUNICIPALITIES ASSISTANCE • to repeal the Acts which established ACT 1973 these authorities This Act provides for the payment of moneys • to provide for the continuation of the to councils in relation to concessional rates approved regional strategy plan made for pensioners. under the Upper Yarra Valley and Dandenong Ranges Authority Act 1976. NUDITY (PRESCRIBED AREAS) ACT 1983 PROJECT DEVELOPMENT AND This Act permits the establishment of CONSTRUCTION MANAGEMENT optional-dress beaches in prescribed areas. ACT 1994 (Parts 4, 5, 7, 8 and 9 and section 46. The PLANNING AND ENVIRONMENT remainder of the Act is administered by ACT 1987 the Premier). The purpose of the Act is to establish a The Act facilitates the delivery of framework for planning the use, infrastructure projects in which government is development and protection of land in involved and establishes new provisions for Victoria in the present and long-term arranging and managing public works. interests of all Victorians. It does this by Important elements of the Act include the establishing a system of planning scheme establishment of the Secretary to DOI as a controls and providing for them to be body corporate, provision for the setting of amended, administered and enforced. The standards and the issuing of directions in Act also provides for appeals to the relation to public construction, repeal of the Administrative Appeals Tribunal for Public Lands and Works Act 1964, the compensation in certain circumstances for transfer of certain matters from the Urban those who may be adversely affected by the Land Authority to the Secretary to DOI, operation of a planning scheme, and for amendments to the Bayside Project Act 1988 necessary administrative arrangements. and the granting of powers to the Minister to
PLANNING AND ENVIRONMENT acquire land for a nominated project. (PLANNING SCHEMES) ACT 1996 RESIDENTIAL TENANCIES ACT 1997 This Act makes arrangements for the introduction of new planning schemes (Part 14, regulation of Caravan Parks and formats in Victoria. Moveable Dwellings, being sections 512 to 527. The Act is otherwise administered by the PLANNING AUTHORITIES REPEAL Attorney-General, the Minister for Housing ACT 1994 and the Minister for Fair Trading). This Part The main purposes of the Act are: deals with the regulation of the standards
• to provide for the winding up of the applicable to caravan parks and moveable Loddon-Campaspe Regional Planning dwellings and the application of building and Authority and the Upper Yarra Valley planning laws to these. and Dandenong Ranges Authority SOUTHGATE PROJECT ACT 1994 the Strata Titles Act 1967, Cluster Titles Act This Act provides generally for matters to do
The Act facilitates the Southgate project by 1974 and Local Government Act 1958, and with local government in Victoria. The making special provision for the subdivision, provides for complex concepts such as staged provisions administered by the Minister for the integrated management of and the development, multiple bodies corporate and Roads and Ports relate to traffic control. application of modified planning and variations to plans. MARINE ACT 1988 building controls to the project land. URBAN LAND CORPORATION (excluding Division 2 of Part 11 which is ACT 1997 SOUTH YARRA PROJECT (SUBDIVISION administered by the Minister for Finance). AND MANAGEMENT) ACT 1985 The Act establishes the Corporation to This Act establishes the Marine Board of develop residential and other land in Victoria The purpose of the Act is to provide a legal Victoria and provides for the objects, powers on a commercial basis. structure for the subdivision and and functions of the Board. The Act also management of certain land at South Yarra. VICTORIA GRANTS COMMISSION provides for registration of vessels, regulation Amendments in 1994 limited its operation to ACT 1976 of the operation of vessels, offences involving Stage 1 of the South Yarra project and made This Act establishes the Victoria Grants alcohol, prevention of pollution of State provision in relation to development Commission to distribute money allocated by waters, the adoption of certain international contributions, rates and taxes in respect of the Commonwealth Grants Commission conventions, enforcement of various offences certain lands in that stage. through the States to councils. through the issue of marine infringement notices and for other matters. SUBDIVISION ACT 1988 ACTS ADMINISTERED BY (Except in so far as it relates to the THE MINISTER FOR POLLUTION OF WATERS BY OIL AND NOXIOUS SUBSTANCES ACT 1986 management of the Office of the Registrar- ROADS AND PORTS General and the Land Titles Office. Those Part of the Act is administered by the provisions are administered by the Minister CHATTEL SECURITIES ACT 1987 Minister for Roads and Ports, part by for Conservation and Land Management.) Part 3 (the rest of the Act is administered by the Minister for Conservation and Land The purposes of the Act are to set out the the Minister for Fair Trading) Management, and part of the Act is administered jointly. procedure for the subdivision and This Act makes provision for security interests consolidation of land, including buildings in motor vehicles, trailers and vessels, This Act provides for the protection of the and airspace, and for the creation, variation including registration of interests. sea and other waters from pollution by oil or removal of easements or restrictions, and and other noxious substances. to regulate the management of, and dealings LOCAL GOVERNMENT ACT 1989 with, common property and the constitution Clauses 4 and 9(3) of Schedule 11 and and operation of bodies corporate. section 123 in so far as it relates to the The Act specifies the procedures for revocation of local laws made pursuant to obtaining council approval, service authority the powers conferred by those clauses by approval, and registration of a wide range of reason of section 207 of the Act. subdivisions in the Office of Titles, and contains power for the establishment and operation of bodies corporate. It combines subdivision procedures previously included in PORT SERVICES ACT 1995 This Act establishes and sets out the functions
Sections 1-5, 8-9, 13(4), 14-15, 22-24, 33- and powers of the DOI in relation to 37, 42-43, 64-67, 72-73, 78(1), (3) and (4), transport matters, the Public Transport 79-91, 94-95, 98, Schedule 1, clause 6(1) are Corporation and the Roads Corporation. The administered by the Minister for Roads and Act also provides for the licensing of Ports. The Act is otherwise administered by commercial vehicles and for various offences. the Treasurer, the Premier and the Minister WESTERNPORT DEVELOPMENT for Finance. ACT 1967
This Act establishes the Melbourne Port This Act ratifies an agreement between the Corporation and the Victorian Channels State of Victoria and Hematite Petroleum Pty Authority and amends various ports and Ltd and Esso Exploration and Production Inc. marine legislation to give effect to for the construction of additional port government policies on port reform. facilities at Westernport.
ROAD SAFETY ACT 1986 WESTERNPORT (CRIB POINT TERMINAL) ACT 1963 This Act provides for the registration of motor vehicles, licensing of drivers, offences This Act assists the development and involving alcohol or other drugs and other operation of a petroleum terminal at Crib provisions regulating the operation and use Point by providing for certain existing and of motor vehicles. new easements, and clarifying the status of existing agreements relating to the pipeline ROAD SAFETY (AMENDMENT) running from the terminal site to Dandenong. ACT 1995 The Act also vests crown land used for port The purpose of this Act is to amend the law facilities near the terminal site in the Port of with respect to places at which blood Melbourne Authority. (Note: this Act was samples may be taken from persons involved formerly known as the Westernport in an accident. (Oil Refinery) Act 1963).
ROAD TRANSPORT CHARGES WESTERNPORT STEEL WORKS (VICTORIA) ACT 1995 (DEVELOPMENT CONTROL) ACT 1970
This is the Victorian Act which adopts the This Act extends the municipal and regional national uniform road use charges for planning area of the Shire of Hastings and heavy vehicles. declares all permits granted to John Lysaght (Australia) to be valid. TRANSPORT ACT 1983
Part of the Act is administered by the Minister for Roads and Ports, part by the Minister for Transport, and part of the Act is administered jointly. ACTS ADMINISTERED BY RIVER ENTRANCE DOCKS RAILWAY WATTLE PARK LAND ACT 1991 THE MINISTER FOR CONSTRUCTION ACT 1970 This Act provides for the transfer of TRANSPORT This Act authorises the construction of a ownership and responsibility of Wattle Park railway line to connect with the line at Port from the Public Transport Corporation to the BORDER RAILWAYS ACT 1922 Melbourne and terminating at or near the Melbourne and Metropolitan Board of Works This Act ratifies an agreement between the mouth of the Yarra River. (now known as Melbourne Water). States of Victoria and New South Wales as SALE (LAND DEVELOPMENT) to the construction, maintenance and LEGISLATION PASSED IN ACT 1984 operation of railway lines and the 1998-99 construction and maintenance of bridges This Act required the City of Sale to transfer The significant primary legislation passed across the Murray River. certain lands to the State Transport Authority by the Parliament during the year is and makes provision for the development of summarised below. NATIONAL RAIL CORPORATION land in and around the former station site. (VICTORIA) ACT 1991 MINISTER FOR PLANNING This Act approves and gives effect to an SALE STATION RELOCATION AND DEVELOPMENT ACT 1981 AND LOCAL GOVERNMENT agreement made between the
Commonwealth and the States of Victoria, This Act authorises the relocation of Sale BUILDING (PLUMBING) ACT 1998 New South Wales, Queensland and Western Railway Station and the development of This Act establishes the Plumbing Industry Australia relating to the establishment and the land. Commission, the Plumbing Industry Advisory operation of the National Rail Corporation Council and amends the Building Act 1993. Limited. TRANSPORT ACT 1983
Some of the Act is administered by the LOCAL GOVERNMENT (AMENDMENT) PUBLIC TRANSPORT COMPETITION Minister for Roads and Ports, some by the ACT 1998 ACT 1995 Minister for Transport, and part of the Act is This Act amends the Local Government Act This Act provides for the accreditation of administered jointly. 1989 to enable councils to fill extraordinary passenger bus operators and implements a This Act establishes and sets out the vacancies, make changes to the electoral system of service contracts for route service functions and powers of DOI in relation to provisions, and ensure local laws comply with operations. transport matters, the Public Transport National Competition Policy principles.
RAIL CORPORATIONS ACT 1996 Corporation and the Roads Corporation. The Act also provides for the licensing of LOCAL GOVERNMENT (GOVERNANCE (Sections 32 and 36. The Act is otherwise AND MELTON) ACT 1998 commercial vehicles and it provides for administered by the Minister for Finance and various offences. This Act amends three Acts: the Docklands the Treasurer.) This Act provides for the Authority Act 1991, the City of Melbourne establishment of various rail corporations and VERY FAST TRAIN (ROUTE Act 1993, and the Local Government Act for the privatisation of rail businesses. INVESTIGATION) ACT 1989 1989 to allocate powers to the Docklands This Act establishes a permit system for entry Authority of a municipal council in respect to land for the purposes of survey and of the docklands area and to enable the testing of possible routes for a very fast train. residents and ratepayers of the Shire of Melton to choose how their council is to be administered. LOCAL GOVERNMENT (MELBOURNE ROADS SAFETY (AMENDMENT) CITY COUNCIL RATES) ACT 1999 ACT 1998
This Act amends the Local Government Act This Act amends the Road Safety Act 1986 to 1989 to permit the Melbourne City Council implement changes as part of a scheme to to continue to apply differential rates. create uniform national road transport requirements. LOCAL GOVERNMENT (NILLUMBIK SHIRE COUNCIL) ACT 1998 ROAD SAFETY (DRIVING This Act dismissed the Nillumbik Shire INSTRUCTORS) ACT 1998 Council, provided for the expiry of the Order This Act amends the Road Safety Act 1986 that applies for this council, and sets a to provide a scheme for the compulsory date for a general election of the Nillumbik registration of driving instructors. Shire Council. ROAD SAFETY (FURTHER MELBOURNE CITY LINK AMENDMENT) ACT 1998 (AMENDMENT) ACT 1998 This Act makes amendment to three Acts: the This Act amends the Melbourne City Link Act Road Safety Act 1986 in the operation of the 1995 to administer the enforcement of demerit points system, circumstances which tolling provisions and ensure privacy of the Roads Corporation may disclose information collected in relation to tolling. information and the period of operation of certain Regulations, the Transport Accident PLANNING AND ENVIRONMENT Act 1986, and the Road Safety Act 1986. (AMENDMENT) ACT 1998
This Act amends three Acts; the Planning and Environment Act 1987 to provide for a Melbourne Airport Environs Strategy Plan, the Environment Effects Act 1978, and the Planning and Environment (Planning Schemes) Act 1996.
MINISTER FOR ROADS AND PORTS
MARINE (AMENDMENT) ACT 1999
This Act amends the Marine Act 1988 to the provision of pilotage services in port waters by setting safety standards, and extending the Marine Board of Victoria’s powers to investigate and prosecute offences against that Act and regulations. MINISTER FOR 3. FREEDOM OF ACCESS ARRANGEMENTS TRANSPORT INFORMATION Access to documents (as defined in section 5 Nominated officers of DOI of the Act) may only be obtained through RAIL CORPORATIONS AND written request, as detailed in section 17 of TRANSPORT ACTS (AMENDMENT) The initial handling of requests for access to 1999 the Act. Applications should be as specific as documents under the Act is the responsibility the applicant can make it to enable the FOI This Act establishes the Spencer Street of DOI’s FOI Officers. Requests for Officer to identify relevant documents as Station Authority, amends the Rail documents must be in writing and addressed quickly and efficiently as possible. Each Corporations Act 1996, and the Transport to: Act 1983. request should be accompanied by a $20 Mr Don Coulson application lodgement fee. An applicant can FOI Manager RAIL CORPORATIONS (FURTHER request photocopies of documents or inspect AMENDMENT) ACT 1998 Department of Infrastructure specific documents at DOI by arrangement or Level 26, 80 Collins Street This Act amends the Rail Corporations Act by other access arrangements as may be Melbourne Vic 3000 1996, and the Transport Act 1983. appropriate to the application. A charge may Ms Gail Upton be levied prior to granting access to the TRANSPORT ACTS (FURTHER FOI Officer document for locating, retrieving, AMENDMENT) ACT 1999 Office of Major Projects photocopying or creating transcripts, copying This Act amends the Public Transport Level 18, 80 Collins Street video or audio tapes, extracting data from Competition Act 1995 and the Transport Melbourne Vic 3000 electronic documents and/or viewing of the Act 1983. Tel. (03) 9655 6718 document. Fax (03) 9655 3328 TRANSPORT (AMENDMENT) ACT 1998 Section 21 of the Act requires all reasonable steps to be taken to enable an applicant to This Act facilitates and improves the DOI received 149 FOI requests for 1998–99. be notified of a decision concerning the administration of the taxi and hire car The requests related to the following areas: request as soon as practicable, however no industry and makes adjustments to land 58 Planning and local government later than 45 days after a valid application is operations. 86 Transport received by DOI.
ACTS REPEALED IN 5 General departmental and others 1998-99 As at 1 July 1999, 149 requests were
Caravan Parks and Movable Dwellings received; 11 were from Members of Act 1988 Parliament and the remainder was from journalists and the general public. Of the This Act was repealed by section 592(1) of total requests received by DOI, seven went the Residential Tenancies Act 1997. to Internal Review stage, and three matters went to appeal at the Victorian Civil and Administrative Tribunal. CHARGES 4. LOCAL GOVERNMENT Section 22 of the Act outlines the principles MUNICIPAL ELECTORAL for the levy or waiver of charges required to TRIBUNALS be paid by an applicant to DOI, before access to a document is given. Charges are: PORT PHILLIP CITY Application fee – $20 per request COUNCIL, ALMA WARD
Photocopy fee – 20 cents per A4 page The applicant Virginia Browne applied to the Search fee – $20 per hour or part thereof Municipal Electoral Tribunal (MET) seeking a
Supervision fee – $5 per 15 minutes or part further recount of the ballot for Alma Ward, thereof (where a document is inspected by Port Phillip City Council. The MET ordered an applicant) a recount under MET supervision and the subsequent recount confirmed the election Transcription/copying audio and video tapes result. – actual cost Melbourne City Council, District Electorate Extracting data from an electronic document – actual cost The applicant Brent McKenna applied to the MET to rule on the following: Deposits – where charges will be substantial, agreement of the applicant to proceed will • breach of the election rule on submitting be sought and a deposit of $25 or 50 per candidates’ statements by the due date cent of estimated total cost may be and time requested before processing a request. • undue influence and/or intimidation of
Some of these charges may be waived in the AEC’s Returning Officer Trevor Owen certain circumstances, such as, for example, was the basis for breaching the rule where the applicant is impecunious and • revision of the initial ruling of the the payment would cause hardship and the Returning Officer changed the outcome request concerns access to a document of the election in favour of Joanna Pace. relating to the personal affairs of the Following a preliminary hearing the MET applicant. determined that it would consider a revised All initial inquiries concerning Freedom of submission by the applicant in relation to Information should be directed to Mr Don alleged voting irregularities. The matters have Coulson or telephone 9655 6718 been adjourned to a date to be fixed. MUNICIPAL ENTERPRISE PROJECTS APPROVED IN 1998-99
MUNICIPALITY PROJECT STRUCTURE DATE OF DATE OF LGA 1989 AND DESCRIPTION MINISTERAL TREASURER SECTIONS APPROVAL APPROVAL Bass Coast Shire Council Bass Coast Network Union of interest 11 Nov. 1998 11 Nov. 1998 S186,193, 208F Melbourne City Council City Square Company 25 June 1999 25 June 1999 S146,186, car park construction (refer RMC) 189, 190, 193 Melbourne City Council City Wide Service Company limited 7 May 1999 7 May 1999 S193 Solutions Pty Ltd by shares Melbourne City Council Melbourne Wholesale Company limited 21 Jan. 1999 21 Jan. 1999 S193 Fish Market Pty Ltd by shares Melbourne City Council Melbourne Youth Union of interest 18 Nov. 1998 18 Nov. 1998 S186, 193 Support Service Melbourne City Council Queen Victoria Union of interest 4 June 1999 4 June 1999 S146, 186, 189 Hospital Site Melbourne City Council Queen Victoria Company limited 21 Jan. 1999 21 Jan. 1999 S190, 193 Market Pty Ltd by shares Monash City Council Monash Enterprise Company limited Centre Limited by guarantee 23 Dec. 1998 23 Dec. 1998
LATE ANNUAL REPORTS
Councils and regional library corporations are required to submit annual reports within three months of the end of the financial year.
Sections 126(5) and 196(7)d of the Local Government Act 1989 require the Minister for Planning and Local Government to report any council or regional library’s failure to submit its annual report within the time allowed.
The Boroondara City Council and the Hume- Moonee Valley Regional Library Corporation did not submit their annual reports within the statutory time. 5. MAJOR Code of Practice for Telecommunications PUBLICATIONS 1998–99 Facilities in Victoria BUILDING From Doughnut City to Café Society (video) Information Sheet No. 17 – PCBs in Buildings Municipal Fact Sheet Series: Residential Development CORPORATE Planning Practice Notes 1997-98 Annual Report Protection from Traffic Noise in Residential 1998-99 Business Plan Areas: Urban Design Planning Note 2 Infrazine – issues 10, 11, 12, 13 Research Matters Nos 6, 7, 8, 9, 10 Bookshop Catalogue The Story behind the Numbers: a guide to Developing DOI People using population statistics InfraWeb newsletter Towns in Time FINANCE Urban Design in Local Government: Urban BERC Quarterly Report Design Planning Note 1 HERITAGE Victoria Planning Provisions: Planning for the Discovering Victoria’s Shipwrecks – Beware Future: a brief guide Reef Victorian Population Bulletin No. 4, June Federation; a National Survey of Heritage 1999 Places Your Street Your Say: your guide to medium- Inherit Issue Nos 5 and 6 density housing Renewing Victoria’s Past TRANSPORT Victorian Heritage Register 21st Century Accessibility: Disability Discrimination Act: an outline LAND MONITORING A System into a Service – the next steps Policy and Instructions on the purchase, compulsory acquisition and sale of land Airport Rail Link OFFICE OF LOCAL GOVERNMENT An Action Plan for Accessible Public Transport in Victoria: 21st Century Correspondence Guidelines (Local Accessibility Government Planning and Marketing Information) Bus Operator Accreditation Facing the Renewal Challenge: Victorian Easygoing Newsletter Nos 2, 3, 4 Local Government Infrastructure Study Exemption Application in relation to Guide to Services and Information Contacts Tram/Light Rail Services in Melbourne: 21st Century Accessibility Towards 2000 and Beyond: Managing Change in a Changing Community August Melbourne’s Light Rail System 1998 Stationeers; Right on Track OFFICE OF MAJOR PROJECTS Taxi Driver of the Year 1999 Agenda 21 Quarterly Issue Nos 18, 19, 20 The Passengers’ Charter – New Guarantees State Netball and Hockey Centre (brochure) for Public Transport Passengers PLANNING The Water Tower Clock comes home Code of Practice for the Building and UITP modern cities on the move Construction Industry 6. NATIONAL COMPETITIVE NEUTRALITY In late 1998 the Victorian Government agreed COMPETITION POLICY The Victorian Government Statement on to share 9 per cent of the competition LEGISLATIVE REVIEWS Competitive Neutrality sets out the policy and payments it receives from the Commonwealth with local government. It did so in As part of the National Competition Policy implementation timetable for extending recognition of the contribution made by (NCP) agreements signed by the Council of competitive neutrality policies to other areas councils to the implementation of the NCP. Australian Governments in April 1995, all of government business activity to ensure that Payments are made only to councils that meet governments agreed to adopt the following those businesses do not enjoy net competitive the four key objectives set out for NCP guiding legislative principle: advantages over private businesses simply as a result of public ownership. It also sets out compliance in the Competition Principles Legislation should not restrict Agreements that councils entered into with competition unless it can be conditions under which competitive neutrality the State early in 1998. demonstrated that: policies will apply to tax-funded activities within the government sector. All councils received payments for 1997–98, a the benefits of the restriction to the community as a whole outweigh the The Statement describes two models for total of nearly $4.8 million for the sector. costs; and the objectives of the applying competitive neutrality policies: Seventy four of the 78 councils achieved the legislation can only be achieved by Model 1 – corporatisation, and Model 2 – 50 per cent competitive tendering target, the restricting competition. structural and pricing principles reflecting full majority achieving returns in the 50 per cent To give effect to this principle, governments cost. Within DOI, arrangements for to 70 per cent range. The Department of have agreed to: compliance with Model 2 have been Treasury and Finance received comparatively few complaints about councils' application of • review and, where appropriate, reform all developed and are in place for the VicRoads competitive neutrality. Trade practices existing legislative restrictions on activities relating to Land Information Survey, compliance and planning for local laws competition against the guiding Road and Bridge Design, Bituminous reviews were also satisfactory. Payments were legislative principle Surfacing and Printing Services. distributed to councils following the execution APPLICATION OF COMPETITION • ensure that all new legislative proposals POLICY TO LOCAL GOVERNMENT of their Competition Principles Agreements. are assessed against the principle. The Minister for Planning and Local Reporting on NCP compliance should improve The Victorian Government Timetable for Government is responsible for ensuring that for the 1998–99 with new guidelines issued Review of Legislative Restrictions on councils comply with the NCP annual to councils by the Local Government Branch Competition, published in June 1996, reporting requirements, with respect to in June 1999. These require the CEO of a contains major legislation relating to progress in reviewing and reforming council to certify personally to the NCP transport, ports, roads, local government, legislative restrictions on competition and compliance of a council. The Local planning and heritage. All reviews and regarding the implementation of competitive Government Branch is currently working on reforms are required to be completed neutrality principles. an enhanced assessment strategy to support before 2000. the determination of councils' entitlements to The policy statement on the Application of A DOI Steering Committee, established in NCP payments for 1998 – 99. Competition Policy to Local Government, accordance with the Cabinet guidelines, published in June 1996, was prepared by a oversees the legislation review program within Joint State/Local Government Working Group DOI. The Committee has now completed a and in consultation with all local councils and review process of all legislation nominated for other stakeholders. review apart from the Planning and Environment Act 1987. The review of this legislation has just begun. 7. STAFF PROFILE
STATUS ACTUAL ACTUAL ACTUAL F.T.E FEMALE MALE TOTAL TOTAL
EO 1 1 1 1.0
EO 2 3 12 15 15.0
EO 3 8 34 42 42.0
VPS 5 33 73 106 104.4
VPS 4 41 78 119 116.8
VPS 3 58 85 143 141.9
VPS 2 54 29 83 81.4
VPS 1 6 4 10 9.3
OTHER 59 35 94 87.3
(Casual, fixed-term ministerial staff)
TOTAL 262 351 613 599.1
NOTES:
Exclusions: 1. Casual members of panels and committees 2. Staff on LWOP/secondment 3. Eight appointments in progress, offers made, contractual details not yet finalised - giving a total of 66 Executive Officers.
Inclusions : Marine Board Of Victoria 8. CONSULTANTS
The following table lists the consultants engaged in 1998-99 where the cost of the engagement In addition, 174 consultancies costing less exceeded $100,000. than $100,000 were engaged at a total cost of $3,249,164.
CONSULTANT PROJECT TOTAL PAYMENTS FUTURE PROJECT($) $1998-99 EXPENSE Oakton Computing Financial Systems 165,000 121,000 44,000 Improvement Project
Ratio Consultants Small area 133,000 Nil 133,000 employment forecasts
Flagstaff Consulting Docklands project 118,610 51,750 66,860 delivery – road and tram infrastructure
Airport Rail Link – Legal Clayton Utz 152,593 152,593 Nil
Maunsell McIntyre Victorian Ports 423,000 166,000 257,000 Strategic Study NB: POINTS TO NOTE ABOUT * PPK Environment Docklands Traffic 238,748 58,944 Nil SHADED AREAS. and Infrastructure and Transport Study
**Sinclair Knight Scoresby Transport 1,806,916 60,876 Nil * PPK engaged in November 1997, study Merz Corridor EES completed in April 1999.
***Newton Customer satisfaction 976,000 452,200 Nil ** SKM engaged in April 1996, study Wayman Research measurement programs completed in December 1998.
*** Newton Wayman Research engaged during During the 1998-99 financial year, DOI entered into a number of common (internal) use the 1997-98 financial year and arrangements (CUAs). Details of CUAs involving consultants (as per the VGPB definition of project was ongoing through 1998–99 consultant) are listed below.
NAME OF SUPPLIER(S) VALUE OF PAYMENTS CONTRACT ARRANGEMENT CONTRACT $1998-99 END DATE
Provision of Panel of providers 1,800,000 Nil May 2001 consultancy services 15 selected consultants (est. 905,000 - land use planning a year) system Legal panel Panel of providers 200,000 100,334 July 2001 15 selected consultants (est. 100,000 a year) 9. OTHER AVAILABLE • Details of assessments and measures INFORMATION undertaken to improve the occupational
The Directions of the Minister for Finance pursuant health and safety of employees. to the Financial Management Act 1994 require a • A general statement on industrial range of information to be prepared in relation to relations within DOI and details of time the financial year. This material is itemised below lost through industrial accidents and and, where not published in this report, is retained disputes. by the accountable officer and can be made • A list of the major committees available to ministers, Members of Parliament and sponsored by DOI, the purpose of each the public on request, subject to the limitations of committee and the extent to which the the Freedom of Information Act 1982. purpose has been achieved. • Declarations of pecuniary interests BUILDING ACT COMPLIANCE completed by all relevant DOI officers for the The Directions of the Minister of Finance year ended 30 June 1999. requires this Annual Report to include a • Details of shares held by senior officers as statement on the extent of compliance with nominees or held beneficially in a statutory the building and maintenance provisions of authority or subsidiary. the Building Act 1993, for publicly owned • Details of publications produced by DOI and buildings controlled by DOI. DOI does not where the publications can be obtained. own or control any government buildings.
• Details of changes in prices, fees, charges, rates and levies charged by DOI.
• Details of major external reviews carried out on DOI.
• Details of major research and development activities undertaken by DOI.
• Details of overseas visits, including a summary of the objectives and outcomes of each visit.
• Details of major promotional, public relations and marketing activities undertaken by DOI to develop community awareness of DOI and the services it provides. 10. COMPLIANCE INDEX
The Annual Report of the Department of Infrastructure is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index is to facilitate identification of compliance with statutory disclosure requirements and refers to clauses in the Directions of the Minister for Finance
CLAUSE DISCLOSURE PAGE Report of operations Charter and purpose 9.1.3 (i) (a) Manner of establishment and relevant Minister 3,5,8 9.1.3 (i) (b) Objectives, functions, powers and duties 8,9 9.1.3 (i) (c) Services provided and persons or sections of community served 8-11 Management and structure 9.1.3 (i) (d) (i) Name of governing board members, audit committee and chief executive officer 5,6,7,65 9.1.3 (i) (d) (ii) Names of senior office holders and brief description of each office 6,7 9.1.3 (i) (d) (iii) Chart setting out organisational structure 5 9.1.3. (i) (e) Workforce data and application of merit and equity principles 55,56,150 9.1.3 (i) (f) Application and operation of FOI Act 1982 145,146 Financial and other information 9.1.3 (ii) (a) Summary of financial results with previous four-year comparatives 82-84 9.1.3 (ii) (b) Summary of significant changes in financial position 82-84 9.1.3 (ii) (c) Operational and budgetary objectives for the year and performance against those objectives 124-136 9.1.3 (ii) (d) Major changes or factors affecting achievement of objectives 124-136 9.1.3 (ii) (e) Events subsequent to balance date 121 9.1.3 (ii) (f) Consultancies > $100,000 – full details of each consultancy 151 9.1.3 (ii) (g) Consultancies < $100,000 – number and total cost of consulting engagements 151 9.1.3 (ii) (h) Extent of compliance with Building Act 1993 152 9.1.3 (ii) (i) Statement that information listed in Part 9.1.3 (iv) is available on request 152 9.1.3 (ii) (k) Statement on implementation and compliance with NCP 149 Financial Statements Preparation 9.2.2 (ii) (a) Statement of preparation on an accrual basis 92 9.2.2.(ii)(b) Statement of compliance with Australian Accounting Standards and associated pronouncements 92 9.2.2 (ii) (c) Statement of compliance with accounting policies issued by the Minister for Finance 92 Statement of financial operations 9.2.2 (i) (a) A statement of financial operations for the year 88 9.2.3 (ii) (a) Operating revenue by class 88,99,108,112 9.2.3 (ii) (b) Investment income by class 88,108 9.2.3 (ii) (c) Other material revenue by class including sale of non-goods assets and contributions of assets 112 9.2.3 (ii) (d) Material revenues arising from exchange of goods or services 88,108,112 9.2.3 (ii) (e) Depreciation, amortisation or diminution in value 88,102 9.2.3 (ii) (f) Bad and doubtful debts 100 9.2.3 (ii) (g) Financing costs 88,108 9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assets 90,107 9.2.3 (ii) (i) Auditor-General’s fees 100 Statement of financial position 9.2.3 (i) (b) A statement of financial position for the year 90 Assets 9.2.3 (iii) (a) (i) Cash at bank or in hand 90,103,110,112 9.2.3 (iii) (a) (ii) Inventories by class 90,110, 9.2.3 (iii) (a) iIii) Receivables, including trade debtors, loans and other debtors 90,104,110,112 9.2.3 (iii) (a) (Iv) Other assets, including prepayments 90,110 9.2.3 (iii) (a) (v) Investments by class 90,110,112 9.2.3 (iii) (a) (vi) Property, plant and equipment 90,105 Liabilities 9.2.3 (iii) (b (iii Trade and other creditors 90,106 9.2.3 (iii) (b) (v) Provisions, including employee entitlements 90,106 Equity 9.2.3 (iii) (d) Reserves 90,107 Statement of Cash Flows 9.2.2 (i) (c) A statement of cash flows for the year 91,107 Notes to the Financial Statements 9.2.3 (iv) (b) Contingent liabilities 115 9.2.3 (iv) (c) Commitments for expenditure 114 9.2.3 (iv) (d) Government grants received or receivable and source 88,99 9.2.3 (iv) (e) Employee superannuation funds 117 9.2.3 (iv) (f) Assets received without adequate consideration 103 9.4.2 Transactions with responsible persons and their related parties 115 9.6.2 Progress towards Year 2000 compliance 60 11. DIRECTORY PRINCIPAL OFFICES AND AGENCIES Department of Infrastructure Eastern Region 80 Collins Street, Melbourne 3000 120 Kay Street PO Box 2797Y, Traralgon 3844 Melbourne 3001 (03) 5172 2677 (03) 9655 6666 Northern Region Office of the Secretary 57 Lansell Street Level 26, Nauru House Bendigo 3550 80 Collins Street, (03) 5434 5150 Melbourne 3000 North East Region (03) 9655 3311 50-52 Clarke Street Bookshop Benalla 3672 Upper Plaza Level (03) 5761 1888 80 Collins Street, Office of Major Projects Melbourne 3000 Level 18, Nauru House (03) 9655 8829 80 Collins Street, Regional Offices Melbourne 3000 North West Metropolitan (03) 9655 8622 499 Ballarat Road Taxi and Tow Truck Sunshine 3020 Directorate (03) 9313 1307 Level 6, 14-20 Blackwood Street South East Metropolitan North Melbourne 3051 Level 2, 12 Lakeside Drive (03) 9320 4376 East Burwood 3151 VicRoads (03) 9881 8967 60 Denmark Street South West Region Kew 3101 63 McKillop Street (03) 9854 2666 Geelong 3220 (03) 5225 2521 Western Region Level 1, 1315 Sturt St Ballarat 3350 (03) 5333 8790 department of infrastructure 98 99 98 department of infrastructure annual 99 report