2017–18 2017–18 2017–18 ANNUAL REPORT REPORT ANNUAL ANNUAL REPORT Department of Economic Development, Jobs, Transport and Resources DEDJTR 11557 DEDJTR Annual Report 2017-18_cover_ƒ.indd 3 19/9/18 11:47 am Authorised and published by the Victorian Government. Department of Economic Development, Jobs, Transport and Resources 1 Spring Street, Melbourne, VIC 3000 Telephone (03) 9651 9999 September 2018 ISSN 2205-6513 (print) ISSN 2205-6521 (online) Print managed by Finsbury Green Printed on Ecostar (Fsc) 100% recycled paper Unless indicated otherwise, this work is made available under the terms of the Creative Commons Attribution 3.0 Australia Licence. To view a copy of this licence, visit creativecommons.org/licenses/by/3.0/au It is a condition of this Creative Commons Attribution 3.0 Licence that you must give credit to the original author who is the State of Victoria. 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This document is also available in accessible Word and PDF format at economicdevelopment.vic.gov.au 11557 DEDJTR Annual Report 2017-18_cover_ƒ.indd 4 19/9/18 11:47 am CONTENTS SECTION 1: OVERVIEW 1 Secretary’s foreword 2 SECTION 2: FINANCIAL PERFORMANCE 29 SECTION 3: NON-FINANCIAL PERFORMANCE 195 SECTION 4: APPENDICES 249 Appendix 1: Budget portfolio outcomes 250 Appendix 2: Capital projects/asset investment programs 256 Appendix 3: Victorian Government Trade and Investment network 258 Appendix 4: People and workplace 258 Appendix 5: Office-based environmental performance 283 Appendix 6: Implementation of the Victorian Industry Participation Policy 288 Appendix 7: Government advertising expenditure 290 Appendix 8: Consultancy expenditure 292 Appendix 9: Disclosure of major contracts 292 Appendix 10: Information and Communication Technology expenditure 293 Appendix 11: Freedom of Information 294 Appendix 12: Better Roads Victoria Trust account 295 Appendix 13: Victorian Transport Fund 296 Appendix 14: Compliance and attestations 297 Appendix 15: Grants and related assistance 302 Appendix 16: Ministerial Statements of Expectations 337 Appendix 17: Additional departmental information available on request 338 Appendix 18: Acronyms 339 Appendix 19: Disclosure Index 340 DEDJTR Annual Report 2017-18 i 11557 DEDJTR Annual Report 2017 2018 BOOK_ƒ.indb 1 19/9/18 11:45 am ii DEDJTR Annual Report 2017-18 11557 DEDJTR Annual Report 2017 2018 BOOK_ƒ.indb 2 19/9/18 11:45 am 01 OVERVIEW DEDJTR Annual Report 2017-18 1 11557 DEDJTR Annual Report 2017 2018 BOOK_ƒ.indb 1 19/9/18 11:45 am 01 OVERVIEW SECRETARY’S FOREWORD In 2017–18 the Department of Economic The impact of the MTIP goes beyond our transport Development, Jobs, Transport and Resources network. Mandated levels of Victorian content (DEDJTR) made great progress in creating in the projects, and employment and training jobs, connecting Victorians and improving requirements, will magnify the benefits to local our State’s liveability. businesses and job seekers. The amount of work produced this year by The Employment, Investment and Trade (EIT) group DEDJTR people, and its quality and innovation, drove the creation of jobs by connecting Victoria is a high watermark in the delivery of our services to global markets and attracting the investments and is unprecedented in my experience as we need to grow while ensuring all Victorians share a department head. in the benefits of our strong economy. The integration of key economic functions added Whether it be supporting small businesses, start- further value to our work through increased ups and social enterprises or attracting investments collaboration, both within DEDJTR and with from major global corporations, EIT contributed key partners across and outside government. to driving economic growth for Victoria. This involved all portfolio areas and whole-of- government programs such as precinct and regional Major investments secured included a world first development, energy, climate change, emergency hydrogen energy project in the Latrobe Valley using management and regulation reform. coal with carbon capture and storage that will create hundreds of jobs and has the potential In its first full year of operation, Transport for to make a significant contribution to future Victoria (TfV) made considerable progress in energy security. designing, building and operating our transport networks as one system. This was evident in Jobs Victoria provided tailored services to connect the better management of the network impacts long-term jobseekers who face barriers to work with of our growing construction program, and supportive employers. At 30 June 2018, it had helped the initial planning of the Airport and Regional over 7,000 Victorians into work. Rail project (ARRP). We are on track to reach the targets set out in the Good progress was also made on delivering the Victorian Visitor Economy Strategy to increase government’s $38 billion of major infrastructure visitor spending to $36.5 billion and the number and technology projects and the further $10 billion of jobs in the sector to 320,700 by 2025. Our thriving of upgrades and improvements across rail, road tourism industry now employs 214,000 Victorians, and ports. while our creative industries achieved a record number of visits to our cultural institutions. The Major Transport Infrastructure Program (MTIP) has included the removal of the 25th level crossing The Future Industries Fund continued to invest of 50 and the letting of contracts for the Tunnel and in key future growth sectors, achieving success Stations Public Private Partnership and Rail Systems with these sectors creating 38,500 new jobs over Alliance for the Metro Tunnel Project. Progress has the past 12 months. also been made to deliver the Regional Rail Revival Victoria’s key economic precincts such as program, which will see every regional passenger Fishermans Bend, Arden Macaulay, Docklands, train line in the state upgraded, and the West Gate Monash and Latrobe are continuing to develop Tunnel Project, offering a vital alternative to the under the Major Projects team as we prepare West Gate bridge. for Melbourne’s future population growth. Major Risks and pressures on MTIP projects were managed projects that were substantially advanced this year, proactively and the North East Link project and the and near completion, include the upgrade works to ARRP were added to the program of works to be the Administration Building of Flinders Street Station delivered in the coming years. including the Dome and the major expansion of the Melbourne Convention and Exhibition Centre. 2 DEDJTR Annual Report 2017-18 11557 DEDJTR Annual Report 2017 2018 Section 1_ƒr1 v1.indd 2 14/12/18 12:39 pm Building stronger regions remained a high priority. In addition to the regional projects and investments mentioned above, Regional Partnerships in their third year gave regional Victoria an increasingly effective voice and an unprecedented opportunity to connect directly with government and play a real role in decisions. And the Connecting Regional Communities Program tackled key challenges that regional Victorians face when doing business, accessing information and making calls. Supporting this important work, our Strategy and Planning and Corporate Services groups delivered good support to staff and ministers, and made excellent progress on modernising DEDJTR’s systems and accommodation to further increase our productivity and collaboration. Over 2017–18, our many portfolios worked well together to increase jobs, connection and liveability, and DEDJTR’s staff and our agencies did a great job in delivering the government’s programs. On behalf of our ministers and my Executive Board, I’d like to acknowledge their contribution and thank them for their hard work over the year. Accountable Officer’s declaration In accordance with the Financial Management Act 1994, I am pleased to present the Department of Economic Development, Jobs, Transport and Resources’ Annual Report for the year ended 30 June 2018. Richard Bolt Secretary DEDJTR Annual Report 2017-18 3 11557 DEDJTR Annual Report 2017 2018 Section 1_ƒr1 v1.indd 3 14/12/18 12:39 pm 4 DEDJTR Annual Report 2017-18 11557 DEDJTR Annual Report 2017 2018 BOOK_ƒ.indb 4 19/9/18 11:45 am ABOUT THE DEPARTMENT The Department of Economic Our vision Development, Jobs, Transport and Resources (DEDJTR) was established on A productive, competitive and sustainable 1 January 2015. The department brings Victorian economy that contributes together many of the main areas driving to a prosperous and inclusive society. Victoria’s economic development and job creation, including: Our mission • transport and ports The mission of the department is to get our • investment attraction and facilitation economy and society working together for the benefit of all Victorians – by creating more • trade jobs for more people, connecting people and • innovation businesses, and maintaining Victoria’s envied • regional development reputation for liveability now, and for the future. • small business This means: • key services to sectors such as agriculture, • More jobs for more people – we are creating the creative industries, resources and tourism. and maintaining jobs so that more people Our work supports nine ministers, spans 14 portfolios have meaningful work that is safe and secure. and operates across metropolitan, regional and We are doing this by supporting businesses international offices.