ANNUAL REPORT 2011–12 LETTER TO MINISTERS FROM DIRECTOR GENERAL

The Hon. Gladys Berejiklian The Hon. Duncan Gay Minister for Transport Minister for Roads and Ports

Parliament House Macquarie Street Sydney NSW 2000

Dear Ministers

I am pleased to submit for tabling in Parliament the Annual Report for the Department of Transport for the year ended 30 June 2012.

The report includes the Annual Report for Transport for NSW for the period from its constitution on 1 November 2011 to 30 June 2012. Transport for NSW was created as a new integrated transport authority. It has assumed a range of functions previously performed by the Department of Transport and other transport agencies.

This Annual Report has been prepared in accordance with the Annual Reports (Departments) Act 1985, in respect of the Department of Transport, and the Annual Reports (Statutory Bodies) Act 1984 in respect of Transport for NSW. Inclusion of the report in respect of Transport for NSW is authorised by section 3L of the Transport Administration Act 1988.

Yours sincerely

Les Wielinga | Director General Department of Transport o rnpr a hne 13 9 10 5 4 6 7 8 2 changed has Transport How structure and Management Corporate Framework Plan Master Term Long Transport NSW Plan Corporate Interim Values and Vision NSW 2021 About us Overview General’s Director uiesrsls 45 37 Business results Environment and Safety Asset 34 Accessibility 28 24 Travel Customer 17 Contact details details Contact Index Appendices Financial statements performance Operational Overview Contents 249 322 319 50 15 2

Index Appendices Financial statements Operational performance Overview Overview Director General’s Overview

A fresh start for transport In a short period of time we have Monitoring and measuring of built TfNSW and commenced the attributes that customers The establishment of Transport for major reform within the transport value most are now being NSW (TfNSW) on 1 November 2011 operating agencies that deliver used as a means of driving refl ected a fundamental change to rail, bus, ferry, road and maritime service improvements in the way transport is planned and services to customers. the areas that count. delivered in New South Wales. A great deal of eff ort was spent Similarly, consultation with the For the fi rst time, we were on ensuring we had the right community and our customers able to take a completely strategies, structures, processes, has been central to the integrated approach, bringing and most importantly, the right development of the NSW Long together all modes of transport people in place. To begin delivering Term Transport Master Plan. to improve transport for on our responsibilities, experts customers across the State. were recruited from across the To be fi nalised and released in transport cluster and externally. late 2012, the Plan will provide We place the customer at the a framework for transport centre of everything we do. Our goal, to place the customer policy and investment decisions at the centre of everything we do, over the next 20 years. TfNSW is tasked with making the required insight into what customers transport system work better need and expect from transport. The Plan will respond to key now, and to deliver a transport challenges such as population system of the future to meet We have asked and listened to growth, job creation, land the needs of our customers. We customers, across every transport use needs and establishing a must ensure the transport system mode, and right across New transport network that maximises supports the social and economic South Wales. We are establishing benefi ts to the economy. needs of New South Wales. processes to ensure ongoing dialogue with our customers.

2 Transport for NSW Annual Report 2011–12 Overview

Way and Richmond Road to These are just a few of the We place the customer support housing and employment achievements so far. It has at the centre of growth in western Sydney. been a tremendous start and everything we do. our successes are a refl ection We have integrated Sydney’s light of the professionalism, talent rail services into public transport and skills we have across the ticketing, awarded the design and Within the reporting period, NSW transport cluster. construction contract for the city’s we moved ahead with major Inner West Light Rail Extension, There remains much work to infrastructure projects such as and will commence rolling out do. We will continue to improve the North West Rail Link and the Opal electronic ticketing transport services, reduce South West Rail Link, while system later in 2012, beginning road congestion, build new through Sydney’s Rail Future, with a trial on Sydney’s ferries. infrastructure and improve freight we have embarked on a major movements across the State. overhaul of the rail network. We have brought together in TfNSW all policy around licensing We are committed to rising We have added extra rail, bus and registration of drivers and to the challenge of delivering and NightRide bus services to vehicles in NSW (both on road a better transport system for each week’s schedules, enhanced and on water), as well as the customers, where all transport real-time travel information for accreditation and licensing modes work together to meet customers on the M4 and M7 of operators of passenger our social and economic needs motorways, and established an services (including taxi, bus, now, and into the future. agreement to widen the M5 West. rail, ferry and regional air). We have also continued to Pricing has been integrated upgrade major regional highways, for all modes of transport into with a focus on the Pacifi c and TfNSW to ensure coherent Les Wielinga Princes Highways, and road policies for pricing in NSW. Director General infrastructure like Camden Valley Transport for NSW

Overview 3 About us

The Department of Transport This followed the NSW TfNSW manages a multi-billion Government’s announcement dollar transport budget. In The Department of Transport in April that a new, integrated partnership with the transport is the principal department authority would be established to operating agencies, it manages in the transport cluster. ensure coordinated planning and almost $91 billion in assets, one policy across all modes of transport. of Australia’s largest portfolios. It is the principal source of advice on portfolio matters, including TfNSW develops regulations, It funds public bus, rail, roads, ferry the performance of agencies policies and legislation to ensure and community transport services within the transport cluster, to that transport is delivered to and related infrastructure. It also the Minister for Transport and the a high standard, community funds concession schemes such Minister for Roads and Ports. needs are met, assets and as the School Student Transport public money are protected, Scheme, the Private Vehicle This advisory role includes environmental impact is minimised, Conveyance Scheme and the Taxi undertaking high-level and the community is safe. Transport Subsidy Scheme. policy functions. The transferring of policy and A detailed account of the change planning enables operators of that occurred in NSW transport Transport for NSW transport services to focus on management during 2011-12 can providing the highest standard be found in “How Transport has On 1 November Transport for NSW services to their customers. changed” on page 13. (TfNSW) was formally established Transport providers include and assumed co-ordination, funding RailCorp, the State Transit allocation, policy and planning Authority, Roads and Maritime and other non-service delivery Services, Sydney Ferries, private functions for the transport system. bus and light rail operators.

What TfNSW does:

› Planning for both public and private transport, including road, rail, buses, taxis, ferries, light rail, cycling, walking, community transport services, regional air services and freight movement

› Funding for these transport modes

› Moving people safely, moving freight effi ciently, providing transport infrastructure, licensing public transport drivers and accrediting operators.

4 Transport for NSW Annual Report 2011–12 NSW 2021

NSW 2021 is the NSW Government’s • Percentage of timetabled bus • Total proportion of containers 10 year strategic business plan. services in the Sydney area which transported by rail through

Released in September 2011, it commenced their trip on time Port Botany, including import, Overview sets priority areas for action and • Percentage of actual ferry export and empty containers guides NSW resource allocation in services operated by Sydney • Proportion of import, export and conjunction with the State Budget. Ferries which commenced empty containers transported The Government has committed their trip on time by rail through Port of through NSW 2021 to deliver an • Proportion of peak hour Newcastle and Port Kembla. effi cient and eff ective transport journey by public transport system that reduces the time it takes across various regions Implementing NSW 2021 to travel around Sydney and across • Proportion of journeys to work There are various mechanisms to NSW, delivering signifi cant benefi ts by public transport in the support the implementation of NSW to the community and business. Sydney Metropolitan Region 2021. Localised plans are being put in place through an extensive Transport for NSW is the lead agency • Modal share of bicycle trips made consultation process to help TfNSW for delivering on the following in the Greater Sydney region, focus on the transport outcomes NSW 2021 goals and measures: at a local and district level that matter most in diff erent • Modal share of walking trips made communities. Baseline reporting Goal 7 – Reduce travel times in the Greater Sydney region, has been established to outline (private and public transport) at a local and district level. how success will be measured. • Coverage of real time information on motorways Goal 9 – Improve customer TfNSW planning and performance experience with public transport management systems ensure • AM and PM peak hour travel services that it and its people are speeds in kilometres per hour accountable for delivering on on 100 road corridors • Customer Scorecard measures specifi c components of the plan. • Average unplanned incident under development clearance time on principal • Percentage of public transport Performance is publicly reported transport routes for 98 services with accessible online so the NSW community can track TfNSW’s progress, and tabled per cent of incidents and accurate real time in NSW Parliament in an annual traveller information. • Number of major incidents NSW 2021 performance report. that take longer than These processes ensure that TfNSW Goal 10 – Improve road safety four hours to clear is clear about how it is contributing • Increase in the frequency of • Number of fatalities per to the NSW Government’s vision for services as evidenced by revised 100,000 population. transport, and there is transparency public transport timetables in the way that TfNSW measures TfNSW also contributes to: and reports its performance. • Number of services that meet scheduled travel times. Goal 19 – Invest in critical NSW 2021 will be reviewed infrastructure periodically in consultation with Goal 8 – Grow patronage on public the community, and TfNSW transport by making it a more • Percentage of State Roads will work to improve its targets attractive choice with a ‘good’ road smoothness over time as more accurate where surface ‘roughness’ is • Percentage of peak CityRail trains and nationally comparable less than 4.2 IRI (International arriving at Central Station within measures become available. Roughness Index) fi ve minutes of scheduled time for suburban services and within six minutes for intercity services

Overview 5 Vision and Values

Vision A transport system that maximises benefi ts for the community and the economy.

Values Accountability Teamwork

Our values are the qualities that We seek to achieve the best We work together in dynamic, refl ect what we stand for as an possible use of our resources, integrated teams and partnerships agency. They underpin everything and take responsibility for to deliver high quality we do, the way we interact with our decisions and actions. transport results for NSW. each other, the community and our partners in business. They We will be held to account for We are committed to establishing are the way we work to deliver the way we conduct ourselves and working in true partnerships. customer-focused services and and our business. We will This will be demonstrated through integrated transport solutions. ensure that honesty and collaboration, consultation and accountability are at the core cooperation across communities, of our actions and decisions, government, business and internally. and all aspects of our work. Commitment to teamwork will Integrity help us realise a greater level of We are committed to transport integration in NSW. working honestly, ethically, Responsiveness transparently and fairly. We are responsive to, and Safety We will ensure that we consistently proactively seek to address work with integrity and honesty, and the needs of the NSW We are committed to the safety, understand that everything we do community. We are dedicated wellbeing and security of the NSW is in the interests of the NSW public. to improvement and delivering community and our employees. We will hold ourselves accountable customer focused services. to our code of conduct and ethics. Safety is a critical focus for our Our responsiveness to the needs agency, for the NSW public and of the community will be a critical for our colleagues. Truly valuing part of delivering our results. We safety means developing policies will maintain commitment to our and upholding practices that reduce customers across the agency the risk to individuals and minimise – in the way we work each day, the impact when incidents occur. deliver projects and measure our progress. We aim to improve the transport experience in NSW by continually monitoring and improving our performance.

6 Transport for NSW Annual Report 2011–12 Interim Corporate Plan Overview

Transport for NSW launched an The Interim Corporate Plan, A The Interim Corporate Plan guided Interim Corporate Plan in December new beginning, acknowledges TfNSW’s actions while a fi ve as a fundamental part of the fresh that a transport system shaped year corporate plan was being start for transport in NSW. by customer requirements is developed. This will provide a essential to ensuring that the more detailed picture of its vision It was developed to fully refl ect needs of the community and for transport, and the strategic TfNSW being established economy are being met. direction of the organisation with a unique, unprecedented and the transport cluster. opportunity to create a better The document has played a role and more integrated transport in ensuring that customer needs The Corporate Plan 2012–17, system, fundamentally are a driving force in TfNSW’s Connections, was launched in designed around the needs planning, policy, decision-making, August 2012. and expectations of customers, activities and operations. communities and the economy. The plan established priorities to be achieved in the fi rst part of 2012:

• deliver on near-term commitments • plan and shape our future • enable and engage our teams • put the customer at the centre of everything we do.

Overview 7 NSW Long Term Transport Master Plan

The Long Term Transport Master road, buses, ferries, cycling, and More than 1,200 responses Plan will outline a clear direction for walking. The Plan will also help were received to a discussion transport in NSW over the next 20 develop a freight network that paper released in February. years. It will build on investments maximises benefi ts to the economy. More than 1000 stakeholders in roads and transport by the NSW attended 14 community forums Government of a record $13.1 billion Transport for NSW extensively in regional areas and in Sydney in its 2011-12 budget and $13.2 billion consulted customers, between February and May. in 2012-13. communities, government, industry, transport specialists A draft NSW Long Term Transport It will identify the role of each and operators in advisory groups Master Plan will be released for transport mode in meeting future set up to gather contributions comment in September 2012. transport needs, including rail, to development of the Plan.

NSW 2021

TfNSW The NSW Long Term Transport Master Plan

Regional, interstate Integrated Modal Sydney Regional Freight and international Strategies Transport Plans Transport Plans Transport Plans planning use land infrastructure, with Integration connections

NSW Freight and Interchange Strategy Corridor Strategy Western Major Airports Ports Strategy

City Access NSW Roads Modal Strategies Central West Strategies Strategy

Sydney Murray- CountryLink Rail’s Future Murrumbidgee Strategy

Road Strategy Southern

Bus Strategy New England

Light Rail Links to National Strategies and Plans Strategy Northern Rivers

Ferry Strategy Hunter

Cycling Strategy Mid North Coast

Pedestrian Strategy Central Coast

Illawarra

Customer Services Strategy

8 Transport for NSW Annual Report 2011–12 Corporate Framework

The Results in Transport for NSW’s Community Results Business Results Corporate Framework are the high • Customer – The customer is at • The community, partners and level outcomes that the Department Overview the centre of everything we do. stakeholders are consulted and of Transport, Transport for NSW informed about transport issues. and the transport cluster deliver for • Travel – The movement of people the community and the economy. and goods is effi cient and reliable. • Eff ective governance is in place to deliver our results and services. • Accessibility – The availability They provide a basis for integrated of transport options is aligned • Value for money is delivered planning and performance to the needs of the community within the integrated budget. processes, strategy development and the economy. and risk management. Performance • Occupational Health and Safety against these Results drive • Asset – Transport infrastructure is strengthened. meets acceptable standards. business and measure success. • Workforce commitment • Safety – The safety and security of and capability is supported the transport system is maximised. and developed. • Environment – The impact of transport on the environment is minimised.

GOVERNMENT PRIORITIES

Commonwealth priorities TfNSW Legislation NSW 2021 e.g. COAG* and Infrastructure Australia

LONG TERM STRATEGIC PLANNING

Long Term Transport Freight and Ports Metropolitan and regional Modal strategies and Master Plan Strategy land use strategies regional plans

CORPORATE PLANNING AND RESOURCE ALLOCATION

TfNSW Corporate Plan Results and Services Plan Total Asset Management (5 years) (1+4 years) (10 years)

OPERATIONAL AND SERVICE PLANNING

Service agreements Corporate controls Operating Agency Business Plans (Contracts, MOUs,^ (Transport wide policies. corporate plans Statements of Intent) Chief Executive reviews)

INDIVIDUAL ACCOUNTABILITY

Senior Service Individual performance reviews performance reviews (Management) (Staff )

*Council of Australian Governments ^Memorandum of Understanding

Overview 9 Management and structure

Gladys Berejiklian Minister for Transport Transport Duncan Gay Advisory Board Minister for Roads and Ports

TRANSPORT FOR NSW SUPPORT DIVISIONS Les Wielinga Director General Finance, Audit and Strategy

CORE DIVISIONS Human Resources and Business Services Customer Experience Planning and Programs Transport Projects

PROJECT OFFICE

Freight and Regional Policy and Regulation Transport Services Development North West Rail Link

Sydney Ports Roads and Maritime Sydney Ferry Operator Corporation Services

Newcastle Port Private bus operators RailCorp Corporation

Port Kembla Light Rail Operator State Transit Authority Port Corporation

PORT CORPORATIONS PRIVATE OPERATORS OPERATING AGENCIES

Service Providers

Director General Transport for NSW

Customer Freight and Regional Planning and Policy and Transport Transport Experience Development Programs Regulation Projects Services Tony Braxton-Smith, DDG Rachel Johnson, DDG Carolyn McNally, DDG Tim Reardon, DDG Chris Lock, DDG Fergus Gammie, DDG

Customer Insight Freight, Strategy, Bureau of Efficiency and Project Service and Service Policy and Industry Transport Effectiveness Development Planning Improvement Relations Statistics

Freight Network Service Marketing and Transport National and Project Efficiency and Procurement and Communication Planning Priority Initiatives Delivery Regulation Performance

Customer Investment Centre for Trains, Buses Service

Service Programs Road Safety and Ferries Coordination

Strategic Office of Technical Ticketing Coordination and Boating Safety Services Services Customer Relations

Timetable Development

Transport Management Centre

10 Transport for NSW Annual Report 2011–12 Job Descriptions

Director General • Develop and implement transport • Promote safety in all aspects brand strategies that refl ect of infrastructure delivery • Provide overarching leadership the core value proposition of • Employ sustainable practices, in the development, coordination transport products and services innovation and excellence and implementation of the NSW • Coordinate the provision of advice in design and delivery Government’s transport plans to Ministers to enable them to of a quality product and their associated policies,

fulfi l Parliamentary obligations Overview reforms, projects and services • Ensure value for money for and respond to correspondence stakeholders through the • Lead, advise and direct Transport • Analyse trends in customer eff ective and effi cient delivery for NSW and operating agencies feedback to inform thinking of transport infrastructure on the strategic direction of about service improvements their organisation, the direction • Ensure best practice business of reform, investment and the • Manage the systems that give systems exceed customer and resolution of commercial, customer customers the information they stakeholder expectations. service and performance issues need to access and navigate the transport system • Promote the overall safety Deputy Director General and security of the NSW • Sponsor and provide guidance Policy and Regulation transport system on key service improvement programs and major projects • Oversee the planning, maintenance • Drive customer focused strategic across the transport cluster. and delivery of transport policy for the transport portfolio infrastructure and services to the • Shape NSW’s contribution to benefi t of the people of NSW Deputy Director General the national transport agenda and to support the social and Planning and Programs • Drive integration and economic needs of the State simplifi cation of regulatory • Guide the prioritisation, • Identify transport needs and and legislative instruments procurement and delivery develop strategic transport • Engage with industry and key of integrated solutions for plans including the Long Term stakeholders on policy reforms transport infrastructure across Transport Master Plan, Regional NSW to cater for population Transport Plans, city access • Deliver policy reforms to improve and economic challenges and strategies and modal strategies services, access and safety for customers and industry. to build a sustainable future • Deliver an integrated approach • Provide expert advice to the to transport planning, funding and delivery in NSW Premier and Portfolio Ministers Deputy Director General on strategies and policies to • Ensure the customer experience Freight and Regional further the objectives of the is central to transport planning Development Government for the delivery and program outcomes of transport services. • Determine investment priorities for • Develop a NSW Freight transport infrastructure including and Ports Strategy Deputy Director General the Transport Access Program • Develop strategic planning for Customer Experience • Collect, analyse and present key freight precincts including transport statistics and ports and intermodal terminals to • Build the evidence base of conduct modelling to provide support regional development customer and stakeholder insights an evidence-base to support • Identify private sector to inform customer-centric policy, eff ective decision-making. investment opportunities planning and service delivery • Develop a freight evidence base • Establish customer-based • Monitor and benchmark performance standards Deputy Director General freight performance and measures based on Transport Projects customer insights • Establish relationships with • Drive the planning, construction key industry stakeholders • Direct communications programs and delivery of current to engage with customers, infrastructure projects stakeholders and staff

Overview 11 • Provide a central point of • Benchmark and drive • Drive a wide range of strategic contact for freight customers improvements in service projects and initiatives to and the freight industry to performance continue to progress the overall raise issues and concerns • Coordinate service activities reform agenda to maximise • Develop freight policy such as incident management, operational eff ectiveness and effi ciency across the cluster and manage reform special events, security and • Ensure that State marine emergency management, • Drive the reform of internal pollution response interchange/precinct legal services in the portfolio to arrangements are eff ective management and transport improve effi ciencies and value operational improvements for money including the provision • Regulate the port safety of external expert legal services operating framework • Manage ticketing services, by a portfolio-wide legal panel including purchase of integrated • Identify the urban and electronic ticketing services, • Provide strategic HR program regional freight network management of passes, across the cluster • Ensure that economic analysis concessions and subsidy schemes, • Lead consolidation and supports freight business cases and revenue protection strategies optimisation of the provision and funding submissions • Manage the country rail network. of shared services to the • Provide expert advice on the transport cluster that ensures regulation for freight movements compliance and supports of dangerous goods, and Chief Financial Offi cer core business outcomes of emissions and noise • Ensuring the capability of the • Provide strategic fi nance • Establish a Bureau of workforce to meet organisational services across the portfolio Freight Statistics demands and requirements • Ensure priority programs • Review port access arrangements • Lead the implementation of and projects are resourced, governance frameworks for • Coordinate key commodity chains. funded and supported Transport for NSW and the • Deliver ongoing day to day operating agencies to comply with Deputy Director General fi nance and services so that best practice risk management Transport Services the core divisions can deliver and legislative requirements. their business objectives • Develop and improve service plans • Set the TfNSW corporate for rail, bus and ferry services, planning strategy and measure Project Director including timetable specifi cation its performance against results North West Rail Link • Develop the rail Standard • Strategic and business planning • Lead the development of the Working Timetable for • Develop best practice audit North West Rail Link, including: passengers and freight and risk processes that focus –project defi nition • Coordinate service plan delivery on improving performance. and timetable integration – customer product requirements across all transport modes –identifi cation of delivery strategy • Purchase rail, bus, ferry and Executive Director – tender and award of major light rail services and develop Human Resource and construction contracts associated contracts Business Services – planning approvals • Develop community transport –land acquisition • Lead business and commercial agreements and strategies – construction and delivery management of human of an integrated transport • Develop agreements with resources, ICT and legal services and land use product. transport agencies and other across the transport cluster government departments • Drive organisational effi ciency to enable close working through the development, relationships and delivery of implementation and continuous the NSW Government’s goals improvement of business for the transport sector systems and processes for • Manage and monitor contract/ the best provision of services, agreement compliance systems and projects

12 Transport for NSW Annual Report 2011–12 How Transport has changed

It has been a year of A reform of RailCorp was Both divisions then have roles landmark change in transport announced in May, with new in delivering some of the management in NSW. specialist organisations to services, policy and performance Overview be formed to meet diff erent targets that will ensure TfNSW In April 2011 the Minister for customer needs. achieves its results. Transport and Minister for Roads and Ports announced that for Sydney Trains will serve customers Planning and Programs Division the fi rst time an integrated who need quick, frequent and and Policy and Regulation Division transport planning agency reliable trains in the greater develop TfNSW’s program of would be established in NSW. Sydney suburban area. NSW works and establish customer- Trains will serve intercity, regional focused policy solutions to address Eight months later, on 1 November, and country customers who strategic transport challenges. Transport for NSW came into travel longer distances and being. It became responsible for need comfortable and reliable Both divisions consider TfNSW’s the coordinated planning and services with on-board facilities. government priorities and delivery of transport services commitments, its relationship across all modes. Its prime focus In May, Harbour City Ferries won and agreements with the was putting customers fi rst, a contract to operate Sydney Commonwealth Government ensuring the transport system Ferries, with the transition to taking and the evidence base gathered is designed around their needs over management occurring in by the Customer Experience and expectations. Although on July 2012. Prime responsibilities and Freight and Regional 1 November there was a signifi cant for the operator are to improve Development divisions. transfer of functions to TfNSW, the the customer experience for the Department of Transport continues 14 million trips carried out on ferries They also examine information to exist. Through it, TfNSW provides each year, with better services that includes planning and land policy advice to the Ministers. provided at less cost to taxpayers. use policy; future transport and demographic demands; TfNSW now leads planning and TfNSW’s business model is environmental, accessibility investment to ensure good planning based on the structure of its and safety standards; as well as informs investment strategies. This core Divisions and their roles available funding and current enables the transport agencies in delivering the objectives of use of the transport system. to concentrate on delivering the transport system in NSW. quality services to customers. The key focus of Transport Projects Customer Experience Division and Division and Transport Services Roads and Maritime Services Freight and Regional Development Division is to ensure that the (RMS) was also established on 1 Division engage with customers plans and program of works are November, replacing the Roads and key representative groups. delivered by either contracting or and Traffi c Authority and NSW procuring services from operating Maritime. RMS focuses on service They gain insight and build an agencies or private service delivery, including building and evidence base about customers that providers, or by delivering the maintaining road infrastructure and informs TfNSW’s understanding project or service themselves. managing compliance and safety of their expectations, perceptions on NSW roads and waterways. and satisfaction with its services. This information becomes the basis for plans and strategies to put the customer at the centre of everything TfNSW does.

Overview 13 These divisions establish Examples are: • Metro Transport Sydney the standards, performance (March). This company owned measurement and controls • The North West Rail Link Project Sydney’s light rail and monorail. that deliver high quality and offi ce. The North West Rail Link Its purchase by the NSW consistent models for delivering is a priority public transport Government will enable TfNSW TfNSW’s outcomes. infrastructure task for the NSW to more effi ciently plan and Government that will deliver travel integrate public transport and Where a signifi cant project is to improvements for communities traffi c in central Sydney. be delivered over a long period in north west Sydney, providing of time, a separate program or access to jobs and services. • The Transport Construction project offi ce can be established Authority (April). The transfer of to focus resources and eff ort on • The Offi ce of Boating Safety and more than 250 TCA employees to successful delivery. An example Maritime Aff airs (November). the Transport Projects Division is a is the North West Rail Link. It develops recreational and signifi cant step toward delivering commercial boating safety integrated transport networks. Two support divisions, Finance, policy, maritime property Audit and Strategy and Human policy and infrastructure and • The Waratah train project team Resources and Business waterways management policy. (May). The Waratah Public Services, deliver eff ective Private Partnership is Australia’s business systems, governance • The RMS Roads Licensing and largest single trains procurement and processes that enable the Registration Branch (November). project. There will be 78 new organisations to function and Its work involves developing air-conditioned Waratah trains. focus on what must be delivered. and implementing strategic driver and vehicle policies A further two expert These include effi cient and eff ective and related legislation. transport groups joined human resources, business services, TfNSW from 1 July 2012: fi nancial management, strategy • The Bureau of Transport Statistics and performance measurement, (November). It provides the NSW • The Public Transport Ticketing workplace safety, and legal services. Government and the community Corporation. It will design and access to independent evidence, develop the new electronic Opal TfNSW has continued to increase analysis and advice to support the ticketing system customers will its expertise and improve its development of transport policy, use on trains, buses, ferries and capability to deliver integrated plans, infrastructure and services. light rail. Trials are scheduled transport services across NSW. to begin in late 2012. This has been done by establishing • The Centre for Road Safety business areas whose functions (November). It develops best • The Country Rail Infrastructure match organisational goals. practice, evidence-based policies Authority. It is responsible for Each included expertise added and strategies to improve road delivering safe and reliable from across the transport sector. safety and reduce fatalities and passenger and freight services serious injuries on NSW roads. on the country rail network and managing its infrastructure. • The RailCorp Timetable Development and Integration Unit (February). It allows TfNSW to better coordinate all transport timetables and improve customer service. The team is responsible for developing the Rail Standard Working Timetable.

14 Transport for NSW Annual Report 2011–12 Operational performance Operational performance Operational

Operational performance reports on Community Results outlined in the Interim Corporate Plan. Results are the high level outcomes for Transport for NSW and the transport cluster. The following Results areas are reported on:

Customer 17

The customer is at the centre of everything done by the NSW transport cluster.

Travel 24

The movement of people and goods is effi cient and reliable.

Accessibility 28

The availability of transport options is aligned to the needs of the community and the economy.

Asset 34

Transport infrastructure meets acceptable standards.

Safety and Environment 37

The safety and security of the transport system is maximised. The impact of transport on the environment is minimised. Operational performance 15 Background

This Performance report for 2011-12 From 1 July to 31 October 2011, the At the same time, the operational for the Department of Transport department continued its primary framework of TfNSW was decided and Transport for NSW is made responsibility for transport policy, so that it would deliver NSW against the Result areas of TfNSW’s planning and coordination, while Government objectives. To reinforce Interim Corporate Plan. overseeing infrastructure delivery this, work began on an Interim and asset management. Corporate Plan, completed by The Department of Transport TfNSW when it was formed, to is the principal department At the same time, it was preparing introduce staff to the key people, in the transport cluster. for 1 November, when most of structures and processes of these tasks would be taken over by the new entity. It is the principal source of advice TfNSW. This involved identifying on portfolio matters, including the functions and people within NSW The Department of Transport performance of agencies within the Government transport-related was responsible for considering transport cluster, to the Minister for agencies – including the department options for the integrated transport Transport and Minister for Roads itself – that should be moved to the authority including the operating and Ports. new, integrated transport authority. model, legislative framework, functional alignment and human This advisory role includes resources required to have TfNSW undertaking high-level up and running on 1 November. policy functions.

Establishing Transport for NSW

A considerable focus of the fi rst Many staff transferred into the The following section on eight months of Transport for NSW new organisation from operating Operational performance reports was ensuring that it had the right agencies within the transport on Community results outlined people, structures and processes in cluster. While these staff in the Interim Corporate Plan. place to meet its long term goals. movements took place, they were Results are the high level outcomes being complemented by targeted for Transport for NSW and the A transition team was established recruitment of specialists from transport cluster. The following in July 2011 to assist progression outside the transport cluster. Results areas are reported on: towards the new organisation. The organisational structure • Customer This team, consisting of managers of TfNSW and divisional from across the transport portfolio, responsibilities and goals • Travel was tasked with carrying out a key were fi nalised as staffi ng • Accessibility leadership and communications of divisions continued. role during the transition period. • Asset At the same time, TfNSW developed its Interim Corporate • Safety and Environment Plan, which was released in December. A fi ve year Corporate Plan was published in August 2012.

16 Transport for NSW Annual Report 2011–12 Operational performance Operational performance Operational

Customer

The customer is at the centre of everything done by the NSW transport cluster

Meeting this Result is fundamental to ensuring that the transport system and all other Results are aligned to what customers expect from transport.

Customers are to be listened to: the information, intelligence and insights will build the evidence base needed to ensure that their needs, preferences and expectations are understood. This is shaping everything that is done by the NSW transport cluster. Operational performance Customer 17 Customer

The customer at Working collaboratively across TfNSW’s research showed there are the centre the transport cluster, the division four distinct “customer needs-sets” provides TfNSW and service for public transport. Customers who Transport for NSW is focused on delivery agencies with a clear use transport services generally delivering a customer experience perspective of customers’ needs place most emphasis on one of these that better meets the needs of the and gives guidance on how to four needs-sets. The elements of people and businesses that rely on deliver improved outcomes. the service off ered that satisfy these the transport systems and supply needs become the essence of four chains it permits. Delivering results Customer Value Propositions around for customers is a fundamental which the public transport services off ered are being shaped. A focus objective for the transport system. Understanding Customer on improving how TfNSW delivers Value Propositions its Customer Value Propositions will drive results for customers. To gain a clear understanding of Laying the foundations what public transport customers need and expect, and what for customer-focused The Four Core Customer they value in the transport decisions and actions services off ered, comprehensive Value Propositions: A summary By establishing TfNSW and defi ning customer insights research has been completed. the role of its Customer Experience Timeliness: Services that run Division, the NSW Government A picture of customer needs was frequently, keep to their schedule established the organisational built by walking in their shoes and help customers get from framework to place the customer through typical journeys, and A to B in a timely manner. at the centre of transport planning, asking customers in research policy and service delivery. Systems and Effi ciency: groups to identify the key service A service that off ers integrated attributes they value at each The role of the division is to: tickets, effi cient connections and stage and what matters most. eff ectively uses technology to • build the evidence base make the journey more effi cient of insights on customer From this, the needs and preferences and keeps customers updated. needs and preferences of customers were profi led, and a clear picture developed of • guide TfNSW to ensure Reassurance: A safe, clean the service that will meet their that transport policy, environment on board and adequate needs and expectations. investment and services are shelter, lighting and personal based on the customer security features in and around stations, stops and interchanges. • shape public transport to be a more attractive option Comfort: Services with easy access for people by making it to stations and vehicles. On board, seamless and easy to use a clean, pleasant environment, • act as the advocate for with temperature controls, customers in the operations suffi cient personal space and a of the transport agencies. comfortable seat when needed.

18 Transport for NSW Annual Report 2011–12 The insights gained from researching A new Customer A feasibility study was completed the Customer Value Propositions Scorecard for the commencement of a daily are now being applied to develop return service between Bathurst and detailed plans for service To measure the progress and eff ect Central, with stops at Lithgow, Mt enhancements as well as guiding of future actions to improve results Victoria and Katoomba. It has since the design blueprints for the future for customers, the framework of a been announced that this service of each mode of transport service. new Customer Scorecard is being will commence in October 2012. developed. This will enable the The extensive body of evidence Transport for NSW introduced Bureau of Transport Statistics to gathered in this project, with other additional bus services under gather and publish an enhanced customer insights, is also being used its Growth Bus Program, which set of customer ratings of transport to inform TfNSW’s decision-making provided another 64 new buses. services. Field work programs on a number of transport programs New bus services have been were designed and commissioned, and initiatives. Insights have been introduced to areas previously fulfi lling another commitment of the used to inform thinking on the Long without public transport. More NSW Government’s NSW 2021 plan. Term Transport Master Plan, the services were added in key performance Operational Fixing the Trains program, Sydney’s employment areas in the north- Rail Future, the North West Rail Link, west and south-west of Sydney to the performance framework in new support an increased shift by the bus services contracts, the Light Rail and bus service community to public transport, by: Rail Strategy and the preparations enhancements for rolling out the Opal electronic • introducing or extending ticketing system for public transport. During 2011-2012, TfNSW delivered a bus services in new growth number of immediate improvements areas in north-west and The customer insights work is to current services, as well as south-west Sydney; and also used to inform targeted advancing preparations for future • improving bus links to the and prioritised development of enhancements that will deliver key employment areas of service standards and service better customer outcomes. Parramatta, Liverpool, Macquarie delivery improvement initiatives. Park, the Western Sydney The fi rst Waratah train entered Employment area, North revenue service on 1 July 2011, Sydney and the Sydney CBD. followed by another nine by 30 June 2012. Another 11 four-carriage TfNSW developed detailed plans Oscar trains entered service on for coordinated bus and rail the South Coast and Central timetable changes that will result Coast. The new trains enabled in the introduction of more new TfNSW to introduce rail passenger rail services from October 2012, timetable enhancements in October, and a number of improvements January, March and June. This also in the connecting bus services. increases the total number of trains For the longer term, TfNSW in service, easing crowding and defi ned the service principles and providing greater levels of comfort completed detailed specifi cations and amenity for customers. to enable a fundamental revision of timetables in 2013.

Operational performance Customer 19 Quiet carriages Sydney Light Rail Cleaning standards integrated into Quiet carriages have now become As a fi rst step to Fixing the Trains, a permanent feature for intercity MyZone fares new cleanliness standards based train customers on the Newcastle on customer expectations have The Sydney Light Rail was and Central Coast Line after been developed and are now being integrated into the metropolitan a successful three-month trial implemented. Quality assurance multi-transport mode MyZone fares and strong commuter support inspections refl ecting the new structure. This allows customers for this new service feature. standards have been implemented. to use light rail services with The fi rst and last carriages of six and MyMulti, Pensioner Excursion and Rubbish bins have been reintroduced eight car trains (and the last carriage Family Funday-Sunday tickets. at stations to reduce the amount of on four-car trains) are designated litter on the system. An accelerated as quiet zones in which customers The initiative proved immediately program of patch painting and are asked to not talk loudly, play successful, with 1,925,093 MyZone special cleaning commenced to loud music or use mobile phones. trips made in 2011-12, or almost rectify damage caused by vandals to half of patronage. Light rail use carriage interiors. Additional roving Almost 90 per cent of respondents grew 44 per cent in the year. to a TfNSW survey on the quiet teams of cleaners now provide carriages trial said travelling in them greater coverage of the network had improved their overall travel during service hours. A process to experience. No less than 98 per cent reform the management of cleaning of quiet carriage customers said they Fixing the Trains services delivery on the rail network intended to continue using them. was commenced that will bring Following an extensive review, a further improvement in 2012-13. Similar three months quiet carriages new operating model for rail services trials were launched on 1 June on was announced in May 2012 with the intercity trains on the South Coast aim of positioning rail operators to Line between Kiama and Central become more customer-focussed and the Blue Mountains Line and drive performance to Establishing the Police between Lithgow and Central. world-class standards. Transport Command

To deliver these outcomes, two Customer insights indicate that new organisations will be created users of the public transport system Franchising Sydney from July 2013: Sydney Trains for will feel safer with a greater police Ferries customers of the suburban network presence. The establishment of a and NSW Trains for intercity Police Transport Command will TfNSW led the NSW Government’s and regional customers. This allow the NSW Police to work more franchising of Sydney Ferries, new business model recognises closely with the community to target with the operator to improve the best rail operators in the antisocial and criminal behaviour on the customer experience. The world are focused on the unique the transport system. The presence service contract was awarded needs of their passengers. of NSW Police on the transport to Harbour City Ferries, to take system will make using transport eff ect in July 2012. It will work safer and more attractive particularly with TfNSW on a comprehensive for travel out of peak periods. review of the ferry network, in turn informing development of a fl eet strategy for the medium- term, and a service improvement plan for the nearer-term.

A new Manly – North Sydney – Darling Harbour service was introduced. It is operated on a deregulated basis by Manly Fast Ferries.

20 Transport for NSW Annual Report 2011–12 Poster image used to promote the new Google Maps public transport service. Operational performance Operational

Disruption Preparing for the Partnering with Google communications launch of Opal A new commercial agreement Clear, accurate information is Work progressed on developing with Google was fi nalised in early important to customers on and testing the new integrated 2012. This was followed by several occasions when services are public transport electronic ticketing months of eff ort to put TfNSW not running to schedule. A system that will be rolled out from public transport data into a format detailed study was completed late 2012. The system was named suitable for the world’s most popular based on investigation into Opal, the trademarks registration location tool, Google Maps. customer information needs and processes have commenced From July 2012, customers will preferences during disruptions and all design elements fi nalised. be able to use Google Maps to and the current systems used An extensive customer insights search for travel directions and trip to keep customers informed. review of the new ticketing system options for CityRail, bus services, examined experiences and best ferries and light rail. This new New standards have been developed practice from other jurisdictions. service complements the TfNSW and are in use by the Transport The insights work has informed Transport Info 131500 website, Management Centre and transport the way the new system will be which receives more than 2.5 agencies to deliver more consistent set up, the way customers will million visits every month. Public messages to customers regardless acquire, top up and use the Opal transport information on Google of when and how they are delivered. card, and how customers will be Maps will be updated weekly. The study provides the way brought onto the Opal ticketing forward for further improvements system during the program rollout. TfNSW’s public transport data in the to systems and processes that will new GTFS (General Transport Feed be implemented during 2012-13. Specifi cation) format that is used by Google will be available to other third party application developers.

Operational performance Customer 21 Meeting growing The Transport Info 131500 service data TfNSW supplies to produce demand for public includes the www.131500.com. public transport websites, mobile au website, mobile website websites and applications transport information mobile.131500.com.au, Android • Consolidating public transport and iPhone applications, Interactive More than 37 million requests for information from Sydney Voice Recognition service and the transport information were received Ferries into Transport 131500 call centre. Customers also as customers planned trips, checked Info 131500 to provide a view current service information timetables, viewed routes and one-stop-shop for customers accessed ticket information. This is from Transport Info 131500 an increase of 18.5 per cent over the Twitter accounts @131500trains, It remains a priority for TfNSW previous year, principally on-line. @131500buses and @131500ferries. to use new technologies to make There are more than 12,000 public transport information more Every second there were 1.18 followers of the Twitter accounts. widely available, especially as more requests for trip planning people are turning to the internet for Further improvements to customer information from the Transport Info information. A major review of the information are being made through: 131500 service. The 131500 website future customer information strategy alone handled more than 31 million was completed. It will inform the • Continued support of third party information transactions and development of further initiatives information sharing through the produced more than 50 million trip to meet the growing demand for supply of weekly public transport plans and maps for customers. More public transport information. data through the Public Transport than 118,000 people downloaded Data Exchange program. The the Android and iPhone Transport program supports more than 100 Info application. They executed subscribers who have used the more than 3.8 million trip plans.

Customer information requests (Transport Info application introduced 2010)

2009–10 2010–11 2011–12 Transport Info 131500 requests for public transport information 131500 website visits (sessions) 18,957,629 IVR and calls to call centre 3,916,197 Total 22,873,826 Transport Info 131500 requests for public transport information 131500 website sessions 27,718,301 31,213,771 Mobile website sessions 195,804 233,455 iPhone and Android app usage 309,480 3,825,586 IVR calls resolved for public transport information 678,040 772,664 Calls to call centre 1,503,349 1,280,186 Total 30,404,974 37,325,662 Transport Info 131500 feedback Feedback emails 33,119 31,451 Feedback calls to call centre 90,658 96,059 Total 123,777 127,510

22 Transport for NSW Annual Report 2011–12 Responding to customer feedback Focus on: NSW transport 2011-12 Transport Info 131500 responded to more than 127,500 complaints, • Transport contributes $20.2 billion to NSW’s Gross compliments and other items of State Product. It employs 194,900 people. customer feedback. This customer • CityRail used 1793 carriages to provide 303.5 million interaction delivers invaluable passenger journeys across a 307 station network. information which is used to continuously improve and deliver • State Transit and private operator-provided buses carried quality and timely information. 221.5 million passengers on some 5 million timetabled trips. This did not include the School Student Transport Scheme. Enhanced systems and processes • Sydney Ferries’ passenger numbers grew to 14.768 million, were developed for addressing up 1.8 per cent. On-time running was 98.8 per cent, up from customer correspondence 98.5 per cent. Sydney Ferries off ered customers travel on and responding to issues 31 vessels to 40 destinations over 20 hours each day. that customers raise. • Sydney’s light rail network carried 3.7 million passengers. • CountryLink carried 1.9 million passengers on its rail services linking more than 365 destinations in NSW, Emergency responses Queensland, the ACT and Victoria. It also provides coach services in regional areas to complement rail services. performance Operational TfNSW assisted the NSW • Registration and licensing services were provided to Government’s responses to around 4.89 million licence holders who used the 5.59 fl oods in New South Wales in the million vehicles registered in NSW. There were 22.3 fi rst quarter of 2012, especially million licensing and registration related transactions. with evacuations of aff ected • In 2011-12, almost 2,082,600 passengers travelled on airline individuals and communities. services linking Sydney Kingsford Smith Airport and NSW It provided logistical support to regional centres. In 2011, it handled 11,744 699 international the State Emergency Service in and almost 24.5 million domestic and regional passengers. resupplying fl ood isolated towns by • The Transport Info 131500 website received more than chartered aircraft and transporting 2.5 million visits every month. The Sydney Bus real essential goods and equipment time customer information service, the SMS-delivered by road. TfNSW also coordinated 0488 TXT, delivered almost 10 million messages. bus and rail services to convey • The Transport Management Centre’s Live Traffi c people to evacuation centres. NSW website received more than four million visits in 2011/12. A Live Traffi c NSW iPhone application was downloaded by 234,000 customers. • In NSW the annual freight transport task reached: road 64 billion tonne/kms; rail 23 billion tonne/ kms: and shipping 6 billion tonne/kms. • The latest data show 95.6 million tonnes of cargo were loaded and loaded at the Port of Newcastle, 25.3 million tonnes at the Port of Sydney and 24 million tonnes at Port Kembla. • The NSW road network was 18,028 km of State roads, 163 km of privately-funded toll roads and 2946 km of regional and local roads in unincorporated areas of NSW.

Operational performance Customer 23 Operational performance

Travel

The movement of people and goods is effi cient and reliable

Transport is about the reliable movement of people and goods from one location to another. This Result is about minimising travel time for as many people and goods as possible. This is done by providing infrastructure, operating services, and supporting the productive use of the transport system for both social and economic benefi ts. 24 Transport for NSW Annual Report 2011–12 Travel

Waratah train fl eet Rail Clearways Program The quadruplication will benefi t East Hills Line commuters by Sydney’s new Waratah train The NSW Government’s Rail providing increased reliability and fl eet is the next generation of Clearways Program aims to provide improved services by separating all- suburban passenger trains, more reliable public transport by stops and the express services. The designed to provide customers improving the capacity of Sydney’s second pair of rail tracks will also with improved comfort, security, metropolitan rail network. supply future capacity for services safety and accessibility. from the South West Rail Link. The program involves building The NSW Government’s Rolling additional tracks, platforms, Signifi cant achievements of the Stock Public Private Partnership turnbacks for turning around reporting period as work continued contract between RailCorp and trains and train stabling facilities. on the Kingsgrove to Revesby Reliance Rail was established section of the project included: in 2006 to build and maintain When completed, bottlenecks 626 new Waratah carriages. and junctions will be removed and • improved pedestrian and sharing of critical infrastructure and

passenger movement facilities performance Operational This is the largest single train paths signifi cantly reduced. at Revesby, Padstow, Narwee, procurement of trains in Australian It will mean that an incident on Riverwood and Beverly history. It will replace about half one part of the network will have Hills stations. Streetscape of CityRail’s current fl eet. a limited eff ect on other services. improvements were handed to local councils The project will deliver: TfNSW is responsible for delivering the program’s three • an improved public car park at • 78 eight car sets (626 carriages) remaining projects: Riverwood station was handed including maintenance for to Hurstville City Council. A 30 years. There is an option • Kingsgrove to Revesby reserve at Narwee used as a to extend the contract to Quadruplication worksite during construction include another 20 sets • Liverpool Turnback was rehabilitated and returned • A new maintenance to Canterbury City Council • Macarthur station Upgrade facility at Auburn and Interchange. • substantial large scale civil • Four crew training simulators construction – track building and at the Petersham Learning Kingsgrove to Revesby track overhead wiring – is expected & Development Centre. quadruplication to be completed in July 2012. The largest project in the Rail Waratah trains now operate on Liverpool Turnback the CityRail network’s Airport and Clearways Program involves An additional track, remodelling East Hills, South and Northern lines building a second pair of rail tracks of terminating facilities at the and on weekend Olympic Park between Kingsgrove and Revesby. Liverpool train stabling yard, a shuttle services. As they become Associated works are modifi cations new platform and an extension available, Waratah trains will be to road and rail bridges along of the existing concourse at added to the Bankstown, Western, the line, changes to Revesby Liverpool station are elements of North Shore and Inner West lines. station’s concourse, and installation the Liverpool turnback project. of new overhead wiring and associated civil and rail system works to form a dedicated Campbelltown Express Line.

Operational performance Travel 25 Commuter benefi ts are expected to include better on-time running of rail services and capacity Focus on: Transport Management Centre increases to accommodate future local transport demand. TfNSW’s Transport Management Centre monitors and manages the NSW road network 24 hours a day, 365 days a year. Extensions to Liverpool station concourse and footbridge began The year’s achievements included: in the latter part of 2011-12. • The Transport Operations Room responded to more than Macarthur Station upgrade 230,000 calls to the 131700 incident reporting hotline. and interchange • The Live Traffi c NSW website had more than four The upgrading of Macarthur Station million visits. It was upgraded several times, with is being delivered in two stages. customer feedback driving many of these. Detailed design development • Following customer demand, a Live Traffi c NSW iPhone continued for its fi nal stage application and mobile site was launched. During the year the which involved both a fourth iPhone application was downloaded by 234,000 customers. platform and track works for an • The target for unplanned incident clearance times on principal improved train turnback facility. transport routes is within an average 40 minutes. The result in 2011-12 was 38.36 minutes, down from 39.98 in 2010-11. • More than 25,000 road occupancy licences were issued across Sydney. These permitted major infrastructure upgrading, such The Public Transport as on the Sydney Harbour Bridge and the M2 Motorway. Information and Priority • A coordinated response was provided to more than 568 System disruptions to public transport services, including ticket recognition on alternative transport. Service information updates The Public Transport Information were delivered by various channels, including social media. and Priority System (PTIPS), is a $50 million project that monitors • Five bus marshals were introduced to improve bus service on-time running of bus services in reliability in the Sydney CBD during weekday commuter real time. The system was initially peaks. Initial results included shorter bus queues on installed in August 2009 on all State the Sydney Harbour Bridge and across intersections Transit’s fl eet of more than 2,300 and faster removal of illegally parked vehicles. buses. This year it was expanded • Area Transport Coordinators were introduced to help to another 800 contracted buses customers move between diff erent transport modes, for operating in metropolitan and example from trains to buses, during major service disruptions. outer metropolitan areas. More than 50 groups and a total 1200 visitors including traffi c PTIPS uses satellites to identify and transport professionals, community groups and schools late running buses and when toured the Transport Management Centre in 2011–12. necessary, communicates with Roads and Maritime Services’ traffi c management system via a global positioning system to obtain priority at traffi c lights. PTIPS can provide real time information to passengers over mobile communication networks, at bus stops and at interchanges.

26 Transport for NSW Annual Report 2011–12 Central Sydney Green Light Day Corridor studies Traffi c and Transport The inaugural ‘Green Light’ TfNSW continued to develop Committee Transport and Logistics Day was corridor strategies for the State held in August 2011 to support road network. These are to A State Government-City of Sydney and promote careers in the consider safety, traffi c, asset committee was announced in transport and logistics industry. and development issues relating March to coordinate transport and to specifi c road corridors. traffi c planning in Sydney’s CBD. More than 230 students from 23 schools took part in four The aim is to improve road The committee’s objective is to events across Sydney. management over the centralise traffi c and transport short and long terms. decision making. It will coordinate It was launched at the MLC Centre in the work of a number of existing Martin Place. This was attended by The process has been adopted transport working groups students, teachers, and government, by TfNSW as an approach to and committees on which the along with industry representatives the challenge of managing and NSW Government and the from 25 state, national and maximising the benefi ts for Council are represented. international organisations. the community of large and complex transport systems. Chaired by TfNSW, the committee Open days were held at Axima will have a further three State- Logistics at Smithfi eld, the RAAF Network and corridor planning aims nominated members and three Base at Richmond and the Qantas to identify existing and anticipated members nominated by the Centre of Service Excellence at performance issues, determine performance Operational City of Sydney Council. Alexandria with the support of local relative work priorities and develop Members of Parliament, TAFE and appropriate strategies to address the Australian Trucking Association. them over the longer term.

Students gained valuable insight Road Freight Hierarchy from industry members about the The Metropolitan Road Freight work done in transport and logistics. Hierarchy was developed in Positive feedback has led to a response to a request by the second Green Light Day planned to Road Freight Advisory Council be held in 2012. to improve access for higher mass limit vehicles in NSW.

The subsequent work defi ned a road freight hierarchy for the Road Supply Chain State road network in NSW. This Study Executive will help identify and prioritise initiatives to support road freight. Summary Report

It recognises needs of the TfNSW completed a freight industry and helps state-wide study of regional improve the management and road freight movements. development of the road system. The Road Supply Chain Executive Summary Report identifi ed freight supply chains, inter- and intra-State freight movements and forecasts demand to 2031.

The results are being used to improve long term road network planning.

Operational performance Travel 27 Operational performance

Accessibility

The availability of transport options is aligned to the needs of the community and the economy

This Result is about providing transport that is accessible to all users, when and where it is needed. This Result relates to every type of user, including customers who have higher mobility needs. It also relates to the location and frequency of transport services, to ensure that transport is aligned to current and proposed land use and travel patterns. 28 Transport for NSW Annual Report 2011–12 Accessibility

South West Rail Link Supporting projects include Auburn Worksites were set up in June train stabling and an airport line 2012. Preparatory works such as The South West Rail Link is power upgrade by RailCorp. The geotechnical investigations and designed to meet the predicted new train stabling north-west of surveying have also commenced. population growth in south- Auburn station will cater for the west Sydney and increased expected increase in demand The work by contractor John passenger numbers on the for train services in Sydney’s Holland covers design and metropolitan rail network. inner-west and south-west. construction. Services are expected to begin in early 2014. The link will provide new rail Stage one of the project includes services to the growing south-west accommodation for up to 11 Light rail will play an important region, additional services on the eight-car trains, staff amenities part in meeting the city’s East Hills Line and train stabling and offi ces, and noise mitigation. future transport needs. to support the Airport and East Stage two, including stabling for In March TfNSW purchased Hills Line, South Line, Bankstown fi ve more eight-car trains, will be Sydney’s light rail and monorail Line and Inner West Line. delivered when demand dictates. performance Operational owner, Metro Transport Sydney, The project comprises: for $19.8 million. This was to enable effi cient delivery of Glenfi eld transport interchange future light rail extensions and removal of the monorail to This is a major upgrade to Glenfi eld Inner West Light Rail accommodate a new convention Station including lifts, a multi-storey contract award centre at Darling Harbour. commuter car park (completed), A $176 million contract has been more parking spaces at Seddon In addition to delivering the Inner awarded to build Sydney’s Inner Park (completed), an upgrade West Light Rail Extension, TfNSW West Light Rail Extension. of the bus-rail interchange in – which is now responsible for the Railway Parade, a rail fl yover The work includes: light rail system – is investigating to the north of the station, and the feasibility of extending light rail rail and road modifi cations. • a 5.6 km extension of the existing through the Sydney central business light rail between Central and district to the University of NSW Glenfi eld to Leppington rail line Lilyfi eld to Dulwich Hill, using the and to the University of Sydney. former Rozelle rail freight corridor This includes 11.4 kilometres of This is part of a Sydney Light new twin track from Glenfi eld • nine new light rail stops: Rail Strategic Plan, which is to Leppington. It is in the early Leichhardt North, Hawthorne, being developed with industry stages of construction. Marion, Taverners Hill, experts and local stakeholders. Lewisham West, Waratah Mills, It also includes a new station and Arlington, Dulwich Grove and A dedicated TfNSW light rail commuter car park at Edmondson Dulwich Hill Interchange program team has been established Park, a new station and commuter • real-time passenger information to bring light rail work into a single car park at Leppington and a new at the new and existing stops Sydney Light Rail Program. train stabling facility to the west of Leppington station in Rossmore. • new access paths and facilities for switching The new line is expected be between transport modes integrated into the existing rail • kiss-and-ride parking and network in 2016. accessible parking spaces • protecting fl ora and fauna along the rail corridor.

Operational performance Accessibility 29 Focus on: North West Rail Link

The North West Rail Link will make high The customer-focused transport strategy frequency public transport available will modernise and improve the rail system for the fi rst time to people living in one across Sydney over the next 20 years. of Sydney’s fastest growing areas. Introduction of rapid transit will deliver more trains and more choice for customers. Eight new railway stations are planned for the North West Rail Link: Cherrybrook, Castle Hill, Developed as a core component of the Showground, Norwest (all underground), Bella NSW Long Term Transport Master Plan, it Vista, Kellyville, Rouse Hill and Cudgegong Road. will create the largest Sydney rail network Car parking will be provided for 4000 commuters. capacity increase for 80 years.

The 36 kilometre line, from Cudgegong Until a second harbour crossing is built, the Road at Rouse Hill, will include the existing 13 North West Rail Line will operate as a high kilometres from Epping to Chatswood. New frequency service between Rouse Hill and single deck trains will be used on the line. Chatswood. When the crossing is completed, the new rapid transit system will be extended Trains will operate on a 4km elevated skytrain to the city and eventually linked to southern line between Bella Vista and Rouse Hill. lines, including Bankstown and Illawarra.

Major tunnelling is to begin in 2014. The NSW Government is also moving to ensure the future availability of public When operational, customers will be able to transport in Sydney’s north-west by catch a train every fi ve minutes in peak times. securing an additional land corridor. The new line will support more than 16,200 It is expected that more than 200,000 jobs during construction and add about people will move into the North West Growth $25 billion to the NSW economy. Centre over the next 25 to 30 years – or The North West Rail Link is the fi rst of new some 70,000 new houses in the Riverstone, Sydney rapid transit services to be constructed Schofi elds and Marsden Park areas. under the Sydney’s Rail Future blueprint.

30 Transport for NSW Annual Report 2011–12 Barangaroo Integrated Transport Access Port Botany and Transport Plan Program Sydney Airport

Barangaroo is a $6 billion Sydney A large scale 2011-12 to 2014-15 In November, the NSW Harbour headland development. It Transport Access Program is being Government submitted a funding will accommodate 23,000 residents developed by TfNSW. The program request developed by TfNSW to and workers, along with an delivers accessible, modern, Infrastructure Australia to develop estimated 12 million visitors a year. secure and integrated transport a Port Botany and Sydney Airport infrastructure where it is needed Transport Improvement Plan. A Barangaroo Transport most. This includes station upgrades, Taskforce was established improving interchanges, ferry wharf Sydney Airport, Australia’s largest, in August 2011 to oversee upgrades and commuter car parks. handles 46 per cent of international development of a Barangaroo and 23 per cent of domestic air Integrated Transport Plan. In April the NSW Government passenger journeys and 50 per allocated more than $100 cent of international air freight. Membership includes Lend Lease, million in the fi rst round to fund City of Sydney, Barangaroo improvements across the rail, Port Botany, Australia’s second Delivery Authority, Infrastructure bus and ferry networks at 35 largest container port, handles NSW, Department of Premier and city and regional locations. about one-third of containerised Cabinet, and the Department of freight into and out of Australia. Planning and Infrastructure. TfNSW In May the Government announced leads development of the Plan in a further allocation of $170 Infrastructure Australia called last Operational performance Operational consultation with the Taskforce. million from Transport Access year for projects to be assessed for Program funds to build nine new the national infrastructure pipeline The Plan provides a framework commuter car parks to provide and possible budget consideration. for delivering transport more than 1,200 additional car The NSW Government submission to services and infrastructure to spaces on the CityRail network. Barangaroo to meet future develop the precinct improvement travel demand forecasts. TfNSW has begun planning plan sought funding from the approval, land acquisition Commonwealth Government for the and design development development of a comprehensive for the program. action plan for both road and rail.

Wynyard Walk The program will provide: A strong partnership approach construction begins was emphasised to address • stations accessible to people land transport needs of the Work continued on improving with disabilities, the ageing precinct, from early planning pedestrian access linking and parents with prams through to delivery. Wynyard station, the developing • modern buildings and facilities for The envisaged plan would enable Sydney CBD western corridor all transport modes that meet the integrated rail and road plans to and the Barangaroo precinct. needs of a growing population be developed that are consistent It will allow pedestrians to get • modern interchanges that with Port and Airport masterplans from the Wynyard transport support an integrated network and meet the needs of the hub to Barangaroo in about and allow seamless transfers gateways over the next 25-30 six minutes, avoiding steep between all transport modes years. The approach would also identify the fi nancing strategies inclines and road crossings. • greater safety, including extra and delivery methodology. lighting, help points, fences Major works for Wynyard Walk and security for car parks are expected to begin late in 2012 In June the initiative was included and interchanges, stations, and be completed by late 2015, in the national infrastructure bus stops and wharves coinciding with Barangaroo offi ce priority list and recommended for space becoming available. • improved signage so project development funding. customers can more easily use public transport and A decision from the transfer between modes. Commonwealth on the funding mechanism is awaited.

Operational performance Accessibility 31 Disability Action Plan Community transport New wheelchair accessible buses The current Disability Action TfNSW continued to manage a Plan runs from 2007 to 2012. $52 million Home and Community All new route buses purchased TfNSW is developing a new Care Transport program and the by bus operators in metropolitan Disability Action Plan 2012-2017 Community Transport Program and outer metropolitan areas are for the transport cluster. to improve transport access for required to be air-conditioned disadvantaged people in NSW. and have a low fl oor and step-less entry to allow easy access by the These include isolated families, elderly, people with a disability the frail aged, younger people and passengers in wheelchairs. Review of the NSW with disabilities and their Mobility Parking Scheme carers. Community transport TfNSW in 2011-12 funded the provides access to recreation, purchase of additional buses A review of the NSW Mobility Parking shopping, medical care, social to meet patronage growth: 34 Scheme commenced in May 2012. services and social contact. for Sydney metropolitan bus contract regions and 34 for An Independent Advisory The NSW Government has increased outer metropolitan bus contract Committee, with members funding for the Community Transport regions in Newcastle, Wollongong, from disability groups, health Program by $12 million over four Central Coast, Blue Mountains, practitioners, road users and the years. This represents a 100 per cent and the Lower Hunter. wider community, was established funding increase over the period. in February. It is chaired by an Ageing buses were also replaced: independent consultant. 101 in metropolitan Sydney bus The committee is to review the contract regions; and 66 for existing scheme and identify Regional Transport outer metropolitan bus contract regions in Newcastle, Wollongong, improvements to the integrity Coordination Program of disability parking in NSW Central Coast, Blue Mountains, and increase the community TfNSW administers the Regional and the Lower Hunter. participation of people with Transport Coordination mobility disabilities. Program, which works through 11 coordinators to reduce transport A discussion paper and an online disadvantage and help solve Rail Access review survey have been developed for access and mobility problems. public consultations. Six public TfNSW began a review of the forums and various meetings The program delivered 69 projects NSW Rail Access regime. This with stakeholders have been that included driver licensing provides the regulatory basis conducted across NSW. programs for Aboriginal people, for rail operators to access the isolated communities feeder NSW rail network controlled A report to the Minister for Transport bus services, domestic violence by the NSW Government. is expected in November 2012. transport to safety, bus route variations and car pooling. The review will assess the regime to ensure that it continues to facilitate effi cient use of the network.

32 Transport for NSW Annual Report 2011–12 Vehicle registration Transport concessions Country Passenger initiatives Transport Infrastructure An estimated 120 million subsidised Grants Scheme A range of options are being school student journeys were provided on rail, bus, ferry and long developed for improving the TfNSW’s Country Passenger distance coach services under the NSW vehicle registration Transport Infrastructure Grants School Student Transport Scheme. system as part of a light vehicle Scheme provides grants annually A conveyance subsidy was also registration policy review. to eligible rural areas to construct available for school students in or upgrade public passenger These options will include more private vehicles in areas without transport infrastructure, including fl exible and equitable registration ready access to public transport. interchanges, bus stops, taxi charging models, payment shelters, lighting, and signage. arrangements and registration The estimated value of the concession in 2011–12 was more than terms. A public discussion paper More than $1.47 million was $550 million. will be released by the end of 2012. provided for 37 projects across The Taxi Transport Subsidy NSW. These are detailed in Scheme provides a 50 per cent Appendix 26. subsidy, or up to $30 per trip, Northern Beaches to people unable to use public Bus Rapid Transit transport because of a qualifying severe and permanent disability. pre-feasibility study Casino to Murwillumbah performance Operational More than 72,000 people were transport study A Northern Beaches Bus Rapid registered under the scheme Transit (BRT) study was made in A Casino to Murwillumbah in 2011-12. Almost 2.1 million response to a commitment by the transport study is investigating subsided journeys were provided NSW Government to examine the current and future transport needs at a cost of more $26 million. feasibility of introducing a BRT of people living and working on a north-south corridor within The Wheelchair Accessible Taxi in the region and the potential Sydney’s northern beaches. Driver Incentive Scheme pays for transport connections to taxi drivers trained to assist the South East Queensland Two corridors were assessed: a Taxi Transport Subsidy Scheme public transport network. north-south corridor from Mona participants an incentive to improve Vale to the Sydney CBD, primarily The study includes the the accessibility, reliability and along Pittwater Road and Military feasibility, benefi ts and costs response times for those who Road, and an east-west corridor of reinstating services on the require a wheelchair for travel. from Dee Why to the Chatswood Casino-Murwillumbah Rail Line, CBD following Warringah Road. TfNSW revised payment processes which were cancelled in 2004. for both schemes to deliver faster The results of the study are to be The Casino-Murwillumbah study settlement of accounts. Payments released for comment in July 2012. team is working closely with which previously could take 90 local community members and or more days are now remitted Further detailed analysis will organisations which are contributing within 10 days of the close of the be completed when comments through consultations for the NSW monthly processing period. are received. Long Term Transport Master Plan.

The study will be completed in late 2012. The outcomes will inform development of a Northern Rivers Regional Transport Plan.

Operational performance Accessibility 33 Operational performance

Asset

Transport infrastructure meets acceptable standards

Well maintained assets have implications for the safety, reliability and customer perceptions of the transport system. TfNSW protects the condition and long-term value of assets, as well as determining the assets needed to meet future demand. 34 Transport for NSW Annual Report 2011–12 Asset

Asset enhancements It is a jointly funded Commonwealth It is estimated that within 15 years and NSW Government project, with the project will take 200,000 TfNSW is working with the an estimated cost of $1.1 billion. heavy vehicles off the road each Commonwealth on four major The Commonwealth will contribute year, cut annual diesel fuel use projects that will assist a shift $816 million for three projects on by about 40 million litres and from road to rail and boost the RailCorp network between reduce yearly greenhouse gas productivity and economic activity. Strathfi eld and Newcastle, with emission by 100,000 tonnes. another $24 million allocated to The Northern Sydney Freight a project on the Australian Rail TfNSW became responsible from Corridor Program will reduce the Track Corporation network at 1 April 2012 for delivering three of potential for delays on the rail Hexham. The NSW Government the four elements of the project: network caused by freight and will invest $214 million. at North Strathfi eld, Epping to passenger trains sharing tracks Thornleigh and at Gosford. The between North Strathfi eld in Sydney The program will include grade Australian Rail Track Corporation and Broadmeadow, Newcastle. separation and additional track, is responsible for delivering

and passing loops for additional the Hexham component. performance Operational network capacity to meet the needs of freight and passenger trains. The outcomes will be a more effi cient freight rail network, and more frequent passenger services on the main North Line.

Focus on: Pacifi c Highway upgrade

TfNSW assisted preparation of the NSW Government’s submission last November for a further commitment from the Commonwealth to the upgrading of the Pacifi c Highway.

The highway is part of the National Land Transport Network. The NSW and Commonwealth Governments have been jointly funding its upgrading since 1996. This includes providing a four lane divided road from the F3 Freeway near Hexham, north of Newcastle, to the Queensland border.

Following the submission, the Commonwealth and NSW Governments committed an additional $3.08 billion to the project.

TfNSW has developed a Memorandum of Understanding to formalise the agreement between the two governments. It covers the funding and sequencing of projects.

Operational performance Asset 35 Since 1 April, achievements included: The Metropolitan Freight Network (MFN) is a network of around 80 • Approving concept designs for km of dedicated freight rail track North Strathfi eld rail underpass, within RailCorp’s metropolitan Gosford passing loops and Epping network. It connects freight to Thornleigh third track projects trains from Chullora to Sefton • Preparing environmental Park, Chullora to Port Botany, impact assessment documents Chullora to North Strathfi eld, for each of these projects and Rosehill to Sandown.

• Beginning public exhibition Resulting from a 2004 NSW and of the environmental impact Commonwealth Government assessment for the North agreement, the MFN is being Strathfi eld Rail underpass and the transferred to the Australian Gosford passing loops projects. Rail Track Corporation to assist completion of the SSFL. This will Community consultation be fi nalised in August 2012. will continue during the delivery of the project. The MFN is a key element in delivering the NSW Government’s The Southern Sydney Freight objective of doubling the proportion Line (SSFL) will be a dedicated, of container freight moved by rail 36 km freight line between through NSW ports by 2020. Birrong and Macarthur in southern Sydney. A third track in the rail TfNSW has continued to work corridor for freight trains will allow closely with the Commonwealth passenger and freight services and the private sector to develop to operate independently. an Intermodal Freight precinct at Moorebank in western Sydney. The SSFL will improve the effi ciency and cost-eff ectiveness of rail In April the Commonwealth freight services along the North- announced it would proceed with South Rail Corridor between the project at Moorebank and called Melbourne, Sydney and Brisbane. for tenders from the private sector to design, build and operate it. TfNSW worked with the Australian The terminal will commence port Rail Track Corporation for the shuttle operations by mid-2017. legal and physical transfer to it of the SSFL during 2012. Stage 1 from Enfi eld West to Leightonfi eld was commissioned in June, while Stage 2 from Leightonfi eld to Macarthur will commence operations in early 2013.

36 Transport for NSW Annual Report 2011–12 Operational performance Operational performance Operational

Safety and Environment

The safety and security of the transport system is maximised

This Result covers the safety of the road network, public transport and waterways. The Result is broader than just the safety of transport; it is also about the security of the transport system.

The impact of transport on the environment is minimised

We promote a transport system that meets our present social and economic needs without compromising the quality of life of future generations. An important part of this is minimising the impact of transport on our natural environment now, and into the future. Operational performance Safety and Environment 37 Safety and Environment

NSW Speed Camera P Drivers Project Road safety campaigns Strategy The P Drivers Project, launched Better coordination of marketing A NSW Speed Camera Strategy in October, is a large scale trial of activities across all transport announced in June 2012 will a new young drivers education agencies by TfNSW enables improved targeting of key see money raised from camera- program. More than 27,000 new audiences for road safety messages detected speeding, red-light and provisional drivers in Victoria through integrated campaign point-to-point traffi c off ences and NSW are involved. activities and new forms of media. spent on road safety programs. It aims to achieve measurable This year TfNSW’s Customer The mobile speed camera reductions in the number of Experience division took program is being expanded from novice driver crashes. responsibility for developing six vehicles moving between The project is a partnership of and implementing the Centre 142 locations for 930 hours of the Commonwealth, NSW and for Road Safety’s program of enforcement per month to about Victorian Governments and industry road safety campaigns. 45 mobile speed camera vehicles stakeholders that include NRMA using about 2500 locations for Research and the development Insurance, the Royal Automobile 7000 hours of enforcement per continued of a new drink driving Club of Victoria and the Federal month. The new program will be campaign. It targets young men, Chamber of Automotive Industries. fully operational by July 2013. who are overrepresented in alcohol- related crashes and fatalities. Participants can take part in an TfNSW and the NSW Police Force eight hour educational program have identifi ed 500 new high risk The campaign will encourage developed by professional locations to be scrutinised with the those who decide to drink to behaviour change and road safety choose a plan B instead of current six mobile speed cameras. experts on young drivers. Over driving. The “Plan B” campaign Increased visibility of speed camera a number of sessions it includes is scheduled to be launched monitoring will be provided with face-to-face group discussions across NSW in August 2012. new signs which read ‘Mobile Speed and an on-road coaching session. Camera Vehicle Ahead’ instead of Its focus is on program delivery ‘Safety Camera Vehicle Ahead.’ and implementation in regional There will be two sign warnings, areas, and to disadvantaged at 250m and 50m, as motorists provisional drivers. approach a mobile speed About 9,000 NSW new

camera vehicle. There will A REMINDER TO -R27;EPQSWXSRIMR½ZIVSEHHIEXLWMRZSPZIW provisional drivers had taken part WSQISRI RSX [IEVMRK E WIEXFIPX ;IEVMRK ]SYV WIEXFIPXRIEVP]HSYFPIW]SYVGLERGISJWYVZMZMRK also be another sign after the MREWIVMSYWGVEWLMREWIVMSYWGVEWL 77S7SL7SLS[IZIVWLSVXXLIXVMTLS[IZIVPSRK]SY´ZISLS[IZIVSLSLS[IZILLS[IZIVLS[IZLSS[IZIVS[IZS[S[IZIV[IZ[IIZIVIZIZIVZIVVWLSWLWWLSVWLSWLWLLSLSVLSVXXLILSVXXLSVXXLIVXXLVXX IXVMTXXVMTVMTLVMVMTTLS[LSLS[[IZIIZIVIZIVIZIZIVZIVPSRIVPSRKK ]SY´ZI]SY´ZSY´Z´ZII in the program by June 30. FFIIFIIRHVMZMFIIRHVMZMRKLS[IZIV[IPP]SYORS[XLIVSEHIIIIRHVMZMIIRHVMZIRHVMZMIR HVMHMMHVMZMHVMZHVMZMVMZZMZ MRKRKRKRKKLSLS[IZI LLS[IZIIZIVV[V[I[I[IPPIPP]PP]SYPP ]SY]SY OORS[XLRS[XLIRS[XLI[XLILI VSEHVSE vehicle passes it, reading, “Your HHSR´XJSVKHSHSR´XJSHSR´XJSVKIXXS'PMT)ZIV]8VMTSSRSR´XSR´XJSR´XJSRR´XXJSJSSVSVKKIIXIXXIXXXXSXXSXS'PMTX )ZIZIVIV]8]8V8V8VMVMMTT Speed Has Been Checked.” Some 1,000 of the NSW provisional drivers are involved in a trial in Red light speed camera locations four regions: Tamworth/Armidale, will be increased from 91 to Lismore/Tweed Heads, Dubbo/ 200 intersections by the end Forbes and Western Sydney. of 2014, along with changes in warning signs for drivers. The program will continue throughout 2012, and is expected to end in the second half of 2013.

38 Transport for NSW Annual Report 2011–12 NSW speed zones reviewed Focus on: Police security on A State-wide audit of speed zones was conducted. It was aimed public transport at providing a simpler speed The NSW Police Force began taking over security for public limit regime with fewer speed transport network under a new Police Transport Command. zone changes to make speed compliance easier for road users. The command will see 610 police offi cers allocated to patrol trains, buses and ferries. This will enable transit offi cers to focus As a result, there are 37 fewer on detecting fare evasion and minor compliance off ences. speed zones across NSW, Their patrols will also be extended to buses and ferries. allowing drivers to concentrate on the road, not speed signs. More than 300 existing police offi cers currently attached Additionally, a revised NSW Speed to the Commuter Crime Unit were made immediately Zoning Guidelines was released available to the Police Transport Command; recruitment to in September. It includes a route- the projected 610 should be completed by end of 2014. based approach to assessing The Police Transport Command will allow police to work speed limits, ensuring greater more closely with the community to target transport system consistency in speed zoning. areas where anti-social and criminal behaviour occurs.

Commuters often identify safety as a major concern. performance Operational

The greater police presence will complement security Expansion of measures across the rail network alone of 9300 closed circuit fl ashing lights television (CCTV) cameras, 750 CCTV-visible customer help points that allow direct communication with CityRail Flashing lights were installed staff , and 7000 safety-enhancing high intensity lights. in 140 school zones to improve safety for children. During the year, the NSW Government created a $40 million Park and Travel Safety Fund to further improve CCTV on In May, additional funding of station platforms, on trains and in car parks, improve lighting $4 million over four years was in and around train stations, and increase help point reliability. announced to permit lights to be installed at 160 country regional school zones. There is already a four-year, $13 million NSW Government commitment to install more fl ashing warning lights near schools.

At 30 June, more than 870 school zones covering 1030 of the state’s 3,154 schools had fl ashing lights installed. Some school zones provide coverage for a number of schools that are in close proximity to each other.

Operational performance Safety and Environment 39 Company vehicle traffi c Figure 1 – Fatalities, NSW, 12 Months Ending June 1944-45 to 2011-12 infringements 1500 1337 (81-82) Further enhancements were made 1250 to the process allowing companies to nominate drivers of their vehicles 1000 who committed driving off ences. 750 The changes are to ensure

that fi nes and demerit points 500 396 (11-12p) Number of Fatalities Number of

are correctly allocated. 368 (44-45) 376 (07-08) 367 (10-11p) 250 To discourage non-disclosure

of off enders, fi nancial penalties 0 for companies have been 1951 1981 1972 1975 1978 1957 1987 1993 1963 1945 1954 1969 1999 1996 1966 1948 1984 1960 1990 2002 2005 2008 increased to fi ve times those that 2011p 12 Months Ending 30 June would apply to an individual.

Safer Roads NSW Road fatalities website Fair Go for Safe Drivers Provisional data for 2011-12 A website dedicated to giving indicate that there were 396 Half price licences were the community a voice about fatalities, 8 per cent more than announced for NSW motorists road safety initiatives, including the provisional fi gure for 2010-11, with a good driving record for speed zones, speed signs but the third lowest number for fi ve years – and about 2.1 million and speed cameras, became a fi nancial year since 1944-45. of 4.3 million unrestricted licence operational in July 2011. holders are eligible. It will come Analysis of the provisional fatal into eff ect on 1 July 2012. One of the capabilities of the crash data for the fi nancial year Safer Roads NSW website ending 30 June 2012 revealed that: The scheme applies to renewals enables customers to suggest of unrestricted driver licences: • Speeding was a factor in around locations for speed cameras. annual (full price $52), three years 38 per cent of fatalities ($122) and fi ve years ($162). As at 30 June, there had been • At least 12 per cent of 36,413 visits to the website, with fatalities were the result of Provisional licence holders will 3,295 submissions to “Have a crash involving a driver or also be eligible for the discount. Your Say on Speed Limits”, 113 rider with a blood alcohol However, time without relevant suggestions for speed camera level above the legal limit off ences while holding a P1 or P2 locations and 1,107 subscribers licence will count towards the fi ve- • At least 13 per cent of people to email notifi cations about year eligibility period once holders killed in motor vehicles were not permanent speed limit changes. progress to an unrestricted licence. wearing available restraints Subsequent information • Driver fatigue contributed to Each year, hundreds of people are enhancements about speeding about 18 per cent of fatalities killed on NSW roads due to unsafe have been made available to driving behaviour. The scheme • At least 14 per cent of the customers of this website as is regarded as a practical way to motorcyclists killed were fact sheets and email updates. reward people with good driving not wearing helmets. records and encourage better Motorcyclists accounted for driving behaviour in others. 15 per cent of fatalities.

A similar scheme has been operating successfully in Victoria since 2006. It off ers a 25 per cent licence fee reduction.

40 Transport for NSW Annual Report 2011–12 Figure 2 – Trends in Road Fatalities NSW vs Rest of Australia more than 230,000 enhanced

600 1200 enforcement hours in NSW. This included new operations on Sydney

550 motorways and major highways. 1100 There was also continued signifi cant 500

1000 investment in the NSW Road Safety 21% decrease since 2002 Education in Schools program. A 450 highlight was the release of the early 900 childhood resource, “Road Safety: 400 NSW a Guide for Parents and Carers of Number of Fatalities in NSW Number of Fatalities Rest of Australia 800 Children 0-5 years.” It particularly 350 32% decrease Number of Fatalities in Rest of Australia Number of Fatalities since 2002 focuses on driveway safety.

300 700 TfNSW works with councils across 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 prov Year NSW to deliver the NSW Local Government Road Safety Program.

In 2011-12, 73 councils participated in Since 2002 fatalities have Development countries such as the program, which is administered decreased in NSW by 32 per cent. France (6.4 fatalities per 100,000 by Roads and Maritime Services. In the same period, fatalities for population), Italy (6.8), New It supports Road Safety Offi cers

the rest of Australia decreased Zealand (8.6) and the United States performance Operational implementing road safety programs by 21 per cent. Compared to (10.7), but still behind the leaders: in their local areas. Projects are the road toll improvements Sweden (2.8), United Kingdom based on roads safety crash for the rest of Australia, it is (3.1) and the Netherlands (3.2). data and Police intelligence. estimated that NSW has saved an extra 530 lives since 2002. The NSW’s Government’s NSW 2021 plan outlines a primary road With 376 recorded fatalities in the safety target of 4.3 per 100,000 2011 calendar year (provisional population by 2016. The draft NSW Vehicle sanctions scheme fi gure as at 1 January 2012), NSW Road Safety Strategy outlines achieved the second lowest annual targets based on the National A new vehicle sanction scheme fi gure since 1944 (371 fatalities). Road Safety Strategy objective was developed by TfNSW to help The lowest annual fi gure since 1944 of a 30 per cent reduction in the combat anti-social ‘car hoon’ occurred in 2008 (374 fatalities). number of fatalities and serious behaviour on NSW roads. injuries from 2008 to 2010 baseline However, the road toll deteriorated levels to be achieved by 2021. The scheme, which was to during the fi rst half of 2012. commence on 1 July 2012, allows In the year ending June 2012, Based on expected population police to confi scate the number provisional data indicated that growth and a 30 per cent reduction plates of a vehicle involved in high- there were 396 fatalities on in fatalities, the specifi c objective range speeding, police pursuits, NSW roads. This was the third under the draft NSW strategy street racing and burnouts. lowest fi nancial year outcome is to achieve 3.2 fatalities per since 1944/45 (368 fatalities). 100,000 population by 2021. When an off ence is detected by police and the driver is the The NSW fatality rate per off ending operator, they may 100,000 population in 2011 was 5.1 elect to impound the vehicle – a (provisional fi gure), down from 5.7 in longstanding practice – or they can 2010, the lowest fi gure since records Road safety investment choose to confi scate the number began in 1908. This fi gure compares plates for up to three months. More than $200 million was favourably with the rate for the spent in 2011-12 on improving whole of Australia, which was 5.7 In addition, when the off ending road safety in NSW. fatalities per 100,000 population. driver is not the owner of the vehicle, the vehicle’s International comparisons show High visibility police enforcement registration may be suspended NSW ahead of Organisation operations delivered some for up to three months. for Economic Cooperation and 750,000 baseline hours and

Operational performance Safety and Environment 41 Road Toll Response An advisory panel was School Bus Safety Package also established to make Community Advisory recommendations to the board Committee In 2011–12 TfNSW continued to on course design. Its membership implement the fi ve years NSW includes the NRMA, the Youth The School Bus Safety Community Road Toll Response Package. Action and Policy Association Advisory Committee continued its It began in 2010 to address a NSW, the NSW Youth Advisory review of regional school bus safety. rise in the 2009 road toll. Council, the University of NSW’s Transport and Road Safety The committee is independently Activities included: Research Unit, the Australian chaired by Carolyn Walsh, a Driver Training Association, the Commissioner of the Australian • An engineering works program NSW Driver Training Association, Transport Safety Bureau. There for 38 NSW speed camera sites. Honda Australia Roadcraft Training are representatives of BUS Action After reviews, some are being Group, NSW Country Mayors and community representatives. turned off , others are to operate Association, Isolated Children’s in warning modes, while other Parents’ Association, Coff s Harbour road safety measures will be Health Campus, NSW Centre for used at other sites. This program Road Safety, NRMA Motoring will be delivered in 2012–13 “Yarn Busters: and Services, BusNSW, Council of Catholic School Parents NSW/ • A road safety infrastructure No Gammin” ACT, Federation of Parents and program. This included Citizens’ Associations of NSW, NSW pedestrian fencing, safety A new Aboriginal road safety DVD Parents’ Council Inc, and TfNSW. barriers, audio tactile delineation, titled “Yarn Busters: No Gammin” was developed for use during shoulder widening and safety Its terms of reference are to assess NAIDOC Week in July, 2012. improvements on local school bus safety in regional and government managed roads In NSW, Aboriginal people are rural NSW, consider the full range of school bus safety measures, and • Development of the 2012–13 about 1.4 times more likely to be recommend the most eff ective ways road safety engineering seriously injured in a road crash than to make school bus travel as safe works program. non-Aboriginal people. The DVD as possible, including consideration is designed to increase awareness of seatbelts in school buses. amongst Aboriginal communities about the benefi ts of seatbelts, The committee’s fi nal report child restraints and the issues to Safer Drivers Course is expected in 2012-13. consider when purchasing a vehicle. A Safer Drivers Course is being “Yarn Busters” explores: developed to improve road safety for learner drivers. It is intended that • whether the fl ashiest Future challenges those who complete the course will cars are the safest receive a reduction in the number The NSW road toll trend has • the theory that “you’ll be of learner driver log book hours. decreased in recent years, right” without a seatbelt but strong commitment is A board of independent road • why children need to be required to continue this. The safety experts was established seated in the correct child integration of the Centre for to oversee course development, safety seat to protect them. Road Safety into TfNSW brings to specify its curriculum and how opportunities through working it will be delivered. It includes The DVD supports several TfNSW closely with transport planning. the NSW Police Force, Motor Aboriginal educational programs. Accidents Authority, Youthsafe, These include “Helping Learner Key road safety challenges include: the Department of Education and Drivers Become Safer Drivers” • Speeding, which contributes Communities, the Board of Studies, workshops for supervisors of to more than 40 per cent TAFE, the Insurance Council of learner drivers and TAFE programs of the annual road toll Australia, Aboriginal Aff airs NSW, at Mt Druitt, Wagga Wagga, Bryden Compensation Lawyers Griffi th, Nowra, Wellington, and consultancy RCSC Services. Campbelltown and Kempsey.

42 Transport for NSW Annual Report 2011–12 National Rail Safety Regulator

All Australia’s governments agreed in August to establish a National Rail Safety Regulator (NRSR).

This reform of rail safety regulation and investigation is expected to be operational in January 2013. Relevant legislation will be introduced into the NSW Parliament by the end of 2012.

Under the NRSR, rail operators will be able to obtain national accreditation instead of having to apply for it in each State and Territory, providing more consistency for the industry. A single national regulator will allow • The NSW population is ageing Ports safety the rail industry to concentrate

and will require new initiatives on operating effi cient businesses performance Operational to improve its safety. A TfNSW TfNSW regulates safety in NSW with good safety outcomes. Older Drivers Taskforce is ports, with port corporations reviewing current arrangements required to ensure port safety functions are carried out. • A strong focus on improved data to measure serious Functions which are provided National Heavy Vehicle road related injuries. These include navigation aids, vessel Regulator traffi c control, pilotage services, will inform development of dredging, emergency environment further countermeasures In 2009 the Council of Australian protection services for dealing Governments agreed to establish • Developing initiatives to improve with pollution incidents and the a single National Heavy Vehicle the safety of vulnerable road investigation of marine incidents. Regulator to administer a users including pedestrians, national heavy vehicle law TfNSW sets standards for training cyclist and motorcyclists. across Australia. This is to and health requirements for improve safety, reduce costs and Key aims in 2012-13 to further safety critical workers in NSW regulatory burden for industry. improve road safety include: ports, such as marine pilots. The Intergovernmental Agreement • Greater engagement with key on Heavy Vehicle Regulatory stakeholders and the community Reform was signed by the on road safety issues New website for NSW Premier in August. • Development of the NSW Road boating safety Transport Ministers have endorsed Safety Strategy 2012 to 2021 the draft Heavy Vehicle National A new website designed • Finalisation of the Motorcycle to improve awareness and Law (HVNL) which establishes Safety Strategy understanding of laws that require the regulator. Work continues on people to wear lifejackets was fi nalising the second HVNL bill, • Implementation of initiatives to launched in December 2011. which will consolidate remaining improve young driver safety policy and legislative issues.

• Continued implementation The National Heavy Vehicle of targeted safety works Regulator is expected to be on NSW roads. operation in January 2013.

Operational performance Safety and Environment 43 National Maritime A planning and environment Marine environmental Safety Regulator team provides support management throughout project lifecycles. A national system for commercial The Marine Pollution Bill 2011 (NSW) It also works with TfNSW partners vessel safety regulation is being was passed by the Legislative to develop sustainable solutions established. Businesses will be able Assembly in March. It delivers a and ensure that construction to access a national pool of qualifi ed number of signifi cant environmental properly considers the environment. crew able to work in any State or management improvements: Importantly, it works to ensure Territory. The new national system that completed projects include will allow for the seamless transfer • The legislation now refl ects a positive environmental legacy. of vessels and crew between Australia’s international obligations under the International jurisdictions and reduce costs Sustainable procurement initiatives Convention for the Prevention of particularly for those businesses encourage industry, materials Pollution from Ships, or MARPOL based in multiple jurisdictions. suppliers and construction contractors to explore • Coverage is extended to pollution Progress this year included: more sustainable materials, by oil, chemicals, garbage and sewage from both operational • Signing of the Intergovernmental manufacturing and construction. and accidental causes Agreement on Commercial This includes geopolymer Vessel Safety Reform. • The NSW Government concrete (which re-uses waste can now respond more • Approval of the Marine Safety products like fl y ash and slag), eff ectively to potential marine (Domestic Commercial reductions in the quantity of pollution issues from ships Vessels) National Law. cement in concrete applications, cuts in diesel use across plant and • The Minister can now issue The Bill was introduced into equipment and applying water verbal directions to prevent the Commonwealth Parliament sensitive urban design principles. pollution from ships, while in June. The national law will authorised offi cers are now replace 50 pieces of State able to enter premises to take and Territory legislation and preventative or cleanup actions. combine eight commercial vessel regulatory systems into one. Environment and

Complementary NSW legislation Sustainability Policy will be introduced in the 2012 Spring Framework Hybrid bus trial Sitting of Parliament. The national Progress was made towards system is to begin in January 2013. TfNSW, with the support of the minimising transport’s impact Offi ce of Environment and Heritage on the environment. and the State Transit Authority, A Transport Environment and completed a 12 month trial of a Sustainability Policy Framework hybrid buses. The bus’ power Planning and train comprises a Cummins 3.5 construction builds on the previous individual environmental eff orts across litre six cylinder engine and a 130 environmental the transport portfolio. It kilowatt electric motor connected management comprises objectives, actions in series The diesel engine and targets and is underpinned generates energy which powers Environmental management is by legislation and policies. the battery, while the battery is integral to all TfNSW’s infrastructure used to power the electric motor planning and construction. The aim of the Framework is which drives the wheels. The fi nal Guidance is provided by four to establish an approach for report is expected in August 2012. documents: the Guide for Planning environmental reporting and and Environmental Approvals, targets for performance across Environmental Management the transport portfolio by 2013. System, Sustainability Targets and Sustainable Design Guidelines.

44 Transport for NSW Annual Report 2011–12 Operational performance Operational performance Operational

Business results

Eff ective governance is in place to deliver Results

These results capture a range of outcomes that describe what we aim to achieve in terms of how we do business. They drive good business practices relating to the transport cluster, its workforce, fi nancial management and the safety of those working in transport. Operational performance Business results 45 Business results

The community, partners A NSW local government reference After a report to the Minister for and stakeholders are group is also consulted on issues Roads and Ports that indicated such as heavy vehicle access, there is the potential for the consulted and informed vehicle mass limits on local roads, revival of services subject to about transport issues and livestock loading regulations. contractual commitments for use, TfNSW is working with The Local Government State and local government to Freight industry Representatives Reference Group maximise private sector interest one-stop-shop consists of members from the in operating services on the line. Regional Organisation of Councils, A one-stop-shop was created the Local Government Association within TfNSW to allow freight of NSW, the Shires Association of customers and the freight industry NSW, regional council members and to raise issues and concerns. Roads and Maritime Services staff . Value for money

Several reference groups were set up to establish relationships Communications with the Legal Services Panel with key industry stakeholders to community enable ongoing dialogue and for The NSW Government in August input to the NSW Government’s TfNSW regards communication endorsed legal services reforms Freight and Ports Strategy. with the community as essential, across the public sector to reduce particularly when construction of costs and improve effi ciencies. Consultations were held across transport infrastructure is involved. 15 supply chains: building and An invitation to tender for a construction materials, wool, steel, Communications relating to TfNSW Legal Services Panel bulk liquids and gases, timber construction included 78,040 was released in March. and paper, meat and livestock, project updates, 11 community It establishes a single, centralised motor vehicles, retail, grain, cotton, information sessions, three legal services panel to service coal, minerals, perishables and community liaison group meetings, the external legal needs of horticulture, waste and wine. 31 stakeholder meetings, 721 eligible agencies within the door knocks and 90 surveys. transport portfolio, including Freight reference groups A Project Infoline is available, as TfNSW, Department of Transport, well as a 24-hour Construction RailCorp, Roads and Maritime A transport specialist reference Response Line to respond Services, State Transit Authority group was also consulted. It to community concerns. and other government agencies comprises freight transport experts, across the NSW public sector. academics, consultants and The legal services panel will be representatives of industry bodies Cowra Lines Ministerial available from August 2012. such as Shipping Australia, the Taskforce Australian Trucking Association and The new structure, which includes the Australian Logistics Council. It TfNSW works with industry a Group Corporate Counsel discusses freight challenges across to address issues which aff ect based in TfNSW, will allow for rail, air, road and sea modes as well productivity and jobs, particularly greater coordination of legal as how to enhance cooperation in the regional economy. services and a more integrated between government and industry. approach to the legal requirements An example is involvement in the of the transport agencies. Cowra Lines Ministerial Taskforce investigating revival of rail services between Demondrille and Blayney.

46 Transport for NSW Annual Report 2011–12 Review of GIPA functions

All NSW Government agencies must comply with Focus on: Transport Shared Services the Government Information TfNSW delivers operational shared services for the (Public Access) Act 2009 (GIPA transport cluster. These include fi nance, payroll, human Act) and privacy legislation. resources, information technology, procurement, records Transport cluster agencies have and information management, workers compensation, maintained GIPA/Privacy units facilities, fl eet management and property management. of varying size and seniority, Some of the service delivery achievements were: depending on the volume and complexity of applications. A review • RailCorp’s level of customer satisfaction with business has begun of the best structure, services provided rose from 85 per cent in 2010-11 to policy and process for managing 92 per cent. More than 350 RailCorp customers were the obligations of the transport surveyed about satisfaction with: standard of service, cluster under the GIPA Act. knowledgeability of staff , their professionalism, timeliness and courtesy and their ability to meet customer expectations. The survey covered services such as facilities, fi nance, Bus Procurement Panel information and records management, fl eet management, payroll, procurement and workers compensation. A Bus Procurement Panel • processing 442,660 supplier invoices. performance Operational was established by TfNSW to maximise value for money • handling 15,620 workers compensation claims. through volume purchasing and • recruiting 2203 positions. consistent bus specifi cations. • responding to more than 194,000 information Contracts were signed in February technology helpdesk inquiries. with 10 prime contractors.

Streamlining supplier relationships

TfNSW is committed to work with suppliers to improve communication, information sharing and payment performance. This is being done by:

• more suppliers can trade electronically with RailCorp. In 2011-12, 70 per cent of invoices were received electronically, up 21.9 per cent on the previous year • forums, a help desk and electronic communication streamlining procurement to payment • suppliers regularly become involved in procurement panels, and electronic information interfaces, training and ongoing support improving communications, catalogues, purchase orders and invoicing.

Operational performance Business results 47 Capability reviews of corporate functions were carried out in January to establish common structures across the transport cluster. These would enable TfNSW to deliver effi cient corporate services support to the operating agencies.

New structures were developed for information and communications technology (ICT), human resources, fi nance, and legal and governance across the cluster, and audit and risk and safety and quality within TfNSW. Recruitment for them began in June 2012.

Several projects are expected to deliver early benefi ts: consolidation of ICT licence contracts, data centres, use of print services, Workforce is supported In particular the award excludes procurement processes and positions above $122,000 per and developed motor vehicle management. annum, with positions with higher salaries being included An overall objective of the review in the Senior Service covered Occupational Health was to design an operating model by contractual arrangements. and Safety that would optimise delivery of services, consolidate and remove A complementary policy and Occupational Health and Safety duplication of functions and better procedures framework will support for the establishment support staff on the front line. support the consent award. of TfNSW began in April 2011. A staged implementation ensured that it was operational when Staff inductions Transport Shared Services staff began joining the new In 2011–12 TfNSW assumed organisation from 1 November. Welcome days are held for management responsibilities for both CBD and regionally-based Transport Shared Services. employees. Information presented Consent Award approved has included TfNSW’s Interim Changes implemented Corporate Plan, workplace safety, The Transport for NSW Award, already include: working conditions and building a consent award covering a customer-focused culture. • Contribution to RailCorp’s Auto TfNSW employees, was Logbook project to automate approved by the Industrial recording of trip data, realising Relations Commission in May. cost savings through better use It covers conditions of employment of fl eet, automated reporting of Corporate and Shared fringe benefi t tax and fuel tax including rates of pay, scheduled Services Reform pay increases, leave provisions, credits, and providing drivers with satellite navigation and Bluetooth and other benefi ts and the Reform of corporate and shared inclusion of a fl exible working services across the transport • A renewed master computer hours arrangement for a 19 day cluster began in January. It is services contract delivers a 5 per month in lieu of a 9 day fortnight. focusing on four areas: Corporate cent cost saving, while enhancing Services, Shared Services, RailCorp’s information capabilities Enterprise Resource Planning and Early Benefi ts Projects.

48 Transport for NSW Annual Report 2011–12 • TfNSW’s payroll system Strategic Freight Model was established and more than 1100 staff from other The fi rst NSW-wide Strategic systems transitioned to it Freight Model now being developed will be based on consistent, reliable • An integrated agency data data sources that include Roads management network and Maritime Services, Bureau of that enables TfNSW to Transport Statistics and Bureau operate as one entity of Infrastructure, Transport • Procurement systems and and Regional Economics. accounts payable of four portfolio agencies were The model will overcome previous integrated into TfNSW systems. inconsistent and unreliable freight data, and will enable testing of diff erent scenarios for better decision making Governance relating to NSW freight network planning and investments.

Investment Portfolio Transport Enterprise Management

Resource Program performance Operational A program began to deliver best The Transport Enterprise Resource practice portfolio management Program is a multiyear project techniques to support investment that will standardise the way that decisions made across the the transport cluster performs transport cluster. It will be back offi ce business functions. implemented by the end of 2012. These include human resources It includes: management, payroll and • techniques to support the annual fi nance and procurement, on a investment planning cycle, which standard information technology produces outputs such as the platform. The initiative covers the Transport Investment Plan, Total design of standard processes, Asset Management Plan and communication and training and the transport budget submissions implementation of the enterprise application software, SAP. • ensuring maximum use of current- year funds and management The project commenced in visibility of portfolio performance late 2011-12 with a small team. • governance and assurance Initially it will determine the practices that support approach for the program. investment decision making It will also determine how the and staged release of funds transport cluster could align the during programs and projects. standard processes with whole of government standards which are being developed by the Department of Finance and Services.

Operational performance Business results 49 Financial statements

50 Transport for NSW Annual Report 2011–12 Financial performance summary

During 2011-12 the Department of Transport (DoT) and Transport for NSW (TfNSW), which commenced on 1 November 2011, funded transport services and infrastructure provided by Government-owned and private sector entities to achieve equitable transport outcomes for the community of New South Wales.

In 2011-12 DoT and TfNSW were responsible for a State budget allocation for transport of almost $9.7 billion.

2011-12 Operating Result 2011-12 Balance Sheet 2011-12 Consolidated Fund Allocations The entity’s Net result in 2011-12 The Balance Sheet as at 30 June was $277.9 million, $222.9 million 2012 disclosed total assets of An initial recurrent budget higher than the 2010-11 amount of $2343.7 million. These assets allocation of $9,712.2 million $55.0 million. This increase mainly included the net book value of was provided for transport for refl ects additional consolidated new additional and replacement 2011-12. However, adjustments fund allocations for capital projects, buses ($958.4 million) funded to the allocation mainly relating including property acquisitions under the metropolitan and to changes in the timing of for the North West Rail Link and outer metropolitan bus system Commonwealth funding for roads, parking space levy funds received contracts and $318.1 million saw the recurrent budget allocation in 2011-12 that will be available in land and buildings, mainly reduced to $9,378.8 million. for use in subsequent years. properties acquired for future transport corridors. In addition, After allowing for the reduced Total expenses also increased assets were transferred to TfNSW requirements for grants and in 2011-12 to $9,973.5 million, from the former Public Transport subsidies payments, the total compared to $8,715.4 million Ticketing Corporation and Sydney adjusted allocation of $9,378.8 in 2010-11. This increase was Metro prior to 30 June 2012. million was used in meeting primarily due to additional the DoT and TfNSW recurrent grants & subsidies and transport The disclosure of the lease expenditure, including grants statements Financial operator contract payments. arrangements for additional new and subsidies and transport buses, the property acquisitions operator contract payments. Grants, subsidies and service for the North West Rail Link and contract payments were the major the transfer of assets from PTTC $267.5 million of the capital expense items in 2011-12. This and Sydney Metro contributed allocation was used in 2011-12. This expenditure included $4,434.3 to a total increase of $1119.0 amount was mainly used to fund million for the roads program; million in the value of the total the extension of the Light Rail, $120.1 million provided to Sydney assets as at 30 June 2012, as North West Rail Link property Ferries and $3,232.1 million for rail compared to 30 June 2011. acquisitions and improvements in improvements, maintenance and management information systems. services provided to RailCorp, the During 2011-12 TfNSW also former Transport Construction incorporated ACN 156 211 906 Pty Authority and the former Country Ltd, a proprietary limited liability Financial Management Rail Infrastructure Authority. An company which subsequently amount of $916.8 million was acquired all the shares of the Metro During the fi nancial year DoT and also provided to the State Transit Transport Sydney Pty Ltd group, the TfNSW continued to maintain and Authority and private transport owners of the monorail and existing further improve control over the operators under the Metropolitan light rail networks in Sydney. fi nancial aspects of core business and Outer Metropolitan Bus operations and related projects DoT and TfNSW net assets totalled System Contracts, with a further to ensure that the entity was $603.7 million as at 30 June 2012. $374.5 million provided for successfully able to operate within bus services in rural & regional the budget allocation for 2011-12. areas of New South Wales.

Financial statements 51 2011-12 Consolidated • Country Rail Infrastructure The consolidated fi nancial Financial Statements Authority statements net result in 2011-12 amounted to $1,585.0 million, with • State Transit Authority In 2011-12 DoT again prepared total comprehensive income for the and its division consolidated fi nancial statements year totalling almost $161.9 million. for the following agencies • Sydney Ferries Total assets in the consolidated and their special purposes fi nancial statements as at 30 entities or divisions: • Public Transport Ticketing June 2012 amounted to $97,557.5 Corporation • TfNSW million, with net assets totalling • Sydney Metro $88,729.6 million. The assets • Transport Service mainly consist of road and rail • ACN 156 211 906 Pty Ltd and infrastructure ($86,215.4 million) • Rail Corporation its wholly owned subsidiaries and also include rail rollingstock ($2,938.3 million), bus related • Roads and Maritime Services Transport Construction Authority assets ($1,088.5 million), and land and its division (including creased operations on 30 March and buildings ($3,347.7 million). the Roads & Traffi c Authority 2012, with the roles, functions, up to 31 October 2011) assets, rights and liabilities The sources and applications of transferred to TfNSW. • Transport Construction Authority funds for the consolidated entity for 2011-12 are provided below:

Source of funds

Recurrent and Capital appropriation $9.7 billion (75%)

Sale of goods and services $1.5 billion (12%)

Farebox revenue $1.1 billion (9%)

Other revenue and use of cash balance $0.5 billion (4%)

Application of funds

Purchases of property, plant, equipment and other assets Net repayment of borrowings $4.9 billion (38%) $0.5 billion (4%)

Other operating expenses Employee related $1.6 billion (12%) $2.6 billion (21%)

Grants, subsidies and service contract payment Maintenance $1.7 billion (14%) $1.5 billion (11%)

52 Transport for NSW Annual Report 2011–12 Department of Transport Financial statements Financial

Financial statements 53 54 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 55 Department of Transport Statement of comprehensive income for the year ended 30 June 2012

Consolidated Parent Actual Actual Actual Actual 2012 2011 2012 2011 Notes $'000 $'000 $'000 $'000

Expenses excluding losses Operating expenses Employee related expenses 2(a) 2,946,339 2,538,274 63,260 65,002 Personnel service expense 2(b) - - 34,146 57,801 Other operating expenses 2(c) 1,231,914 1,068,439 33,456 106,794 Maintenance 2(d) 1,465,684 1,408,033 104 626 Depreciation and amortisation 2(e) 1,994,255 1,886,614 16,235 41,338 Grants and subsidies 2(f) 552,356 497,299 2,417,142 7,286,446 Finance costs 2(g) 205,808 177,247 21,398 55,527 Other expenses 2(h) 854,469 822,774 413,450 1,101,882

Total expenses excluding losses 9,250,825 8,398,680 2,999,191 8,715,416 Less: Revenue Recurrent appropriations 3(a) 9,378,797 8,595,254 2,905,834 8,595,254 Capital appropriations 3(b) 267,543 3,979 - 3,979 Sale of goods and services 3(c) 1,887,094 1,596,243 1,069 22,371 Investment revenue 3(d) 164,655 127,424 2,682 6,059 Other revenue 3(e) 197,317 162,762 1,285 - Retained taxes, fees and fines 3(f) 54,652 20,589 1,147 2,160 Grants and contributions 3(g) 275,229 188,468 38,184 80,723 Acceptance by the Crown Entity of employee benefits and other liabilities 3(h) 15,200 3,323 3,437 2,579 Personnel service revenue 3(i) - - 72,589 57,801 Total Revenue 12,240,487 10,698,042 3,026,227 8,770,926 Gain / (loss) on disposal 4 2,261 5,917 - - Other gains/(losses) 5 (1,406,921) (243,237) (7) (500)

Net result 1,585,002 2,062,042 27,029 55,010 Other comprehensive income Net losses in commodity swaps and foreign exchange (3,495) 1,951 - - Net (decrease)/increase in asset revaluation reserve 13 (464,850) 4,029,307 - - Actuarial losses on defined benefit superannuation schemes 20 (965,367) (27,677) - - Other 10,585 1,535 - - Total other comprehensive income for the year (1,423,127) 4,005,116 - - TOTAL COMPREHENSIVE INCOME FOR THE YEAR 161,875 6,067,158 27,029 55,010

The accompanying notes form part of these financial statements.

56 Transport for NSW Annual Report 2011–12 Department of Transport Statement of financial position as at 30 June 2012

Consolidated Parent Actual Actual Actual Actual 2012 2011 2012 2011 Notes $'000 $'000 $'000 $'000 ASSETS

Current assets Cash and cash equivalents 7 837,470 1,106,128 93,856 70,118 Receivables 8 582,134 347,868 258 124,929 Inventories 9 55,064 63,951 - - Financial assets at fair value 10 48,894 3,743 - - Non-current assets held for sale 11 68,320 52,726 - - Total current assets 1,591,882 1,574,416 94,114 195,047

Non-current assets Receivables 8 56,878 45,033 - - Inventories 9 32,347 28,878 - - Financial assets at fair value 10 28 992 - - Other financial assets 12 145,013 122,004 - 585 Property plant and equipment 13 Land and buildings 13 3,347,776 3,646,792 - 55,606 Infrastructure systems 13 86,215,411 83,517,469 - 38,398 Plant and equipment 13 4,499,595 4,240,991 - 884,370 Property, plant and equipment 13 94,062,782 91,405,252 - 978,374 Investment property 14 129,466 - - - Intangible assets 15 552,942 310,426 - 17,938 Other assets 16 888,752 767,926 - 32,707 Deferred tax asset 17 97,417 74,579 - - Total non-current assets 95,965,625 92,755,090 - 1,029,604 Total assets 97,557,507 94,329,506 94,114 1,224,651

LIABILITIES

Current liabilities

Payables 18 1,724,926 1,395,009 89,395 158,402 statements Financial Borrowings 19 243,592 712,688 - 44,942 Employee benefits 20 877,085 881,188 4,719 6,596 Other provisions 21 54,655 60,655 - - Other 22 211,472 166,352 - 2,784 Financial liabilities at fair value 23 13,811 14,209 - - Total current liabilities 3,125,541 3,230,101 94,114 212,724

Non-current liabilities Borrowings 19 2,584,207 2,276,447 - 836,869 Employee benefits 20 2,402,834 1,188,603 - - Other provisions 21 91,767 78,171 - - Other 22 553,382 341,857 - 45 Financial liabilities at fair value 23 2,355 2,389 - - Deferred tax liability 24 67,792 64,002 - - Total non-current liabilities 5,702,337 3,951,469 - 836,914 Total liabilities 8,827,878 7,181,570 94,114 1,049,638 Net assets 88,729,629 87,147,936 - 175,013

EQUITY Reserves 10,867,870 39,840,671 - - Accumulated funds 77,861,759 47,307,265 - 175,013 Total Equity 88,729,629 87,147,936 - 175,013

The accompanying notes form part of these financial statements.

Financial statements 57 Department of Transport Statement of changes in equity for the year ended 30 June 2012

Hedging Assets Gains & Accumulated Revaluation Losses Consolidated Funds Surplus Reserves Total Notes $'000 $'000 $'000 $'000 Balance at 1 July 2011 47,307,265 39,852,534 (11,863) 87,147,936

Net result for the year 1,585,002 - - 1,585,002 Other comprehensive income: Net gains in hedging contracts - - (3,495) (3,495) Net (decrease)/increase in asset revaluation reserve 13 - (464,850) - (464,850) Actuarial losses on defined benefit superannuation schemes 20 (965,367) - - (965,367) Other 18,400 (7,815) - 10,585 Total other comprehensive income (946,967) (472,665) (3,495) (1,423,127) Total comprehensive income for the year 638,035 (472,665) (3,495) 161,875 Transaction with owners in their capacity as owners Increase in net assets from equity transfers 31 1,419,818 - - 1,419,818 Transfers to / from reserves to accumulated funds 28,496,641 (28,496,641) - - Balance at 30 June 2012 77,861,759 10,883,228 (15,358) 88,729,629

Parent entity at 1 July 2010 64,044 - - 64,044 Equity of controlled entities at 1 July 2010 44,890,710 35,934,570 (13,814) 80,811,466 Net result for the year 2,062,042 - - 2,062,042 Other comprehensive income: Net gains in hedging contracts - - 1,951 1,951 Transfers to / (from) reserves to accumulated funds 112,228 (112,228) - - Net increase in asset revaluation reserve 13 - 4,029,307 - 4,029,307 Actuarial gains/(losses) on defined benefit superannuation schemes 20 (27,677) - - (27,677) Others 650 885 - 1,535 Total other comprehensive income 85,201 3,917,964 1,951 4,005,116 Total comprehensive income for the year 2,147,243 3,917,964 1,951 6,067,158 Transaction with owners in their capacity as owners Increase in net assets from equity transfers 31 205,268 - - 205,268 Balance at 30 June 2011 47,307,265 39,852,534 (11,863) 87,147,936

58 Transport for NSW Annual Report 2011–12 Department of Transport Statement of changes in equity for the year ended 30 June 2012

Hedging Assets Gains & Accumulated Revaluation Losses Parent Funds Surplus Reserves Total Notes $'000 $'000 $'000 $'000 Balance at 1 July 2011 175,013 - - 175,013 Net result for the year 27,029 - - 27,029 Other comprehensive income - - - - Total other comprehensive income - - - - Total comprehensive income for the year 27,029 - - 27,029 Transaction with owners in their capacity as owners Increase in net assets from equity transfers 31 (202,042) - - (202,042) Balance at 30 June 2012 - - - -

Balance at 1 July 2010 64,044 - - 64,044 Net result for the year 55,010 - - 55,010 Other comprehensive income - - - - Total other comprehensive income - - - - Total comprehensive income for the year 55,010 - - 55,010 Transaction with owners in their capacity as owners Increase in net assets from equity transfers 31 55,959 - - 55,959 Balance at 30 June 2011 175,013 - - 175,013 Financial statements Financial

Financial statements 59 Department of Transport Statement of cash flows for the year ended 30 June 2012

Consolidated Parent Actual Actual Actual Actual 2012 2011 2012 2011 Notes $'000 $'000 $'000 $'000 CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee related (2,625,058) (2,369,163) (95,753) (50,879) Grants and subsidies (854,831) (464,658) (2,439,902) (7,311,185) Finance costs (187,602) (154,884) (21,390) (55,508) Other (3,801,037) (4,067,117) (530,130) (1,218,901) Total Payments (7,468,528) (7,055,822) (3,087,175) (8,636,473)

Receipts Recurrent appropriation 9,378,797 8,598,038 2,905,834 8,598,038 Capital appropriation (excluding equity appropriations) 269,813 3,979 - 3,979 Cash transfers to the Consolidated Fund - (3,796) (2,784) (3,796) Sale of goods and services including GST refunds 2,700,068 2,401,836 266,823 168,626 Retained taxes, fees and fines 14,313 10,949 1,147 2,160 Interest received 82,211 87,877 3,056 5,186 Total Receipts 12,445,202 11,098,883 3,174,076 8,774,193

NET CASH INFLOWS FROM OPERATING ACTIVITIES 28 4,976,674 4,043,061 86,901 137,720

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 40,825 38,049 - - Purchases of property, plant and equipment and intangible assets (4,852,345) (4,561,024) (21,026) (87,078) Advances made (472) (12,000) (12) (66)

NET CASH OUTFLOWS FROM INVESTING ACTIVITIES (4,811,992) (4,534,975) (21,038) (87,144)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings and advances 3,202,334 3,159,622 - - Repayment of borrowings and advances (3,689,000) (2,718,858) - -

NET CASH INFLOWS FROM FINANCING ACTIVITIES (486,666) 440,764 - -

NET (DECREASE) / INCREASE IN CASH (321,984) (51,150) 65,863 50,576 Opening cash and cash equivalents 1,106,128 19,542 70,118 19,542 Cash and cash equivalents transferred in as a result of administrative restructure 101,432 1,137,736 (42,125) -

CLOSING CASH AND CASH EQUIVALENTS 7 885,576 1,106,128 93,856 70,118

The accompanying notes form part of these financial statements.

60 Transport for NSW Annual Report 2011–12 - 5,917 20,589 (24,191) 497,299 177,247 127,424 188,468 822,774 162,762 (243,237) 2011 $'000 8,398,680 2,062,042 4,005,116 6,067,158 2,538,274 1,068,439 1,408,033 1,886,614 8,602,556 1,596,243 4,029,307 10,698,042 - Total 2,261 54,652 552,356 205,808 854,469 164,655 275,229 197,317 161,875 (464,850) (958,277) 2012 $'000 2,946,339 1,231,914 1,465,684 1,994,255 9,250,825 9,661,540 1,887,094 1,585,002 (1,406,921) (1,423,127) 12,240,487 ------120 867 867 17,728 (35,934) (105,235) (164,176) (100,429) 2011 $'000 (7,174,119) (7,160,958) (7,361,935) (7,361,068) ------(16) (786) elimination (3,804) Inter-services 38,967 46,611 (25,349) (70,894) (13,012) (13,012) (309,404) (111,898) (331,825) 2012 $'000 (7,794,199) (8,156,058) (7,762,531) (8,169,054) ------(52) 629 (500) 2,160 6,215 23,777 39,551 29,577 36,817 36,817 71,557 126,912 108,538 2011 $'000 7,488,655 7,526,024 7,189,248 7,416,515 - 7 (8) (8) (39) services * 1,550 3,083 2,165 3,802 73,159 10,485 13,150 10,905 32,837 166,105 157,830 150,771 262,878 262,870 2012 $'000 Integrated transport 7,832,811 8,258,173 8,320,603 8,521,083 ------9 190 203 127 127 (653) 9,482 2,670 2,797 67,034 27,848 18,291 41,334 84,622 122,845 126,168 2011 $'000 ------Ferry 14 473 560 352 services * (202) 8,727 9,818 (9,466) (9,466) 92,892 29,450 21,317 42,219 152,859 120,086 162,879 2012 $'000 - - 6,887 (1,682) 89,131 38,403 10,395 587,397 457,941 615,251 849,154 373,538 409,682 141,645 158,339 (591,677) (111,660) (593,359) 2011 $'000 4,240,791 2,972,412 4,999,255 1,922,070 1,328,711 - services * 1,672 92,142 88,976 82,974 42,907 61,705 662,893 458,229 686,421 904,851 413,478 513,851 185,083 192,586 (970,150) (562,611) (549,686) 2012 $'000 Roads and maritime 3,306,990 4,432,069 5,449,470 1,174,002 Financial statements Financial (1,112,297) - - 694 536 (854) 4,033 2,073 1,696 (3,711) (3,656) (1,960) 50,189 29,224 20,896 48,601 97,198 421,298 121,893 296,541 779,568 2011 $'000 1,520,266 1,528,864 1,182,492 Department of Transport Service group statements - - for the year ended 30 June 2012 869 services * (480) 1,038 2,852 (4,077) 50,212 78,961 89,422 48,682 31,842 (50,540) (18,698) (15,846) 436,784 130,958 100,266 793,922 319,017 2012 Buses and related $'000 1,680,525 1,318,328 1,687,934 - (64) 7,331 4,423 4,579 27,479 82,067 43,086 95,585 11,434 (18,980) 941,305 457,454 732,482 948,440 (126,713) 2011 $'000 4,619,288 1,436,062 2,839,094 3,656,437 3,878,799 4,600,308 4,695,893 - Rail 786 services * 8,528 4,733 1,310 51,157 41,801 69,347 79,521 65,919 567,345 719,560 986,043 148,464 (432,685) (348,577) (282,658) (134,194) 2012 $'000 1,641,644 4,008,336 3,232,985 1,193,061 4,588,175 Employee related expenses Personnel service expense Other operating expenses Maintenance Consolidated REPORTING ENTITY'S EXPENSES AND INCOME Expenses excluding losses Operating expenses ! ! ! ! Depreciation and amortisation Grants and subsidies Finance costs Other expenses Total expenses excluding losses Revenue Government contributions Sale of goods and services Investment revenue Retained taxes, fees and fines Grants and contributions Other revenue Total Revenue Gain / (loss) on disposal Other gains / (losses) NET RESULT FOR THE YEAR Other Comprehensive Income Increase / (decrease) in assets revaluation reserve Other - mainly actuarial superannuation losses Total Other Comprehensive Income TOTAL COMPREHENSIVE INCOME

Financial statements 61 - - - 24,189 15,210 39,687 2011 $'000 2,624,473 2,624,473 2,545,387 - - - Total 29,980 16,229 36,901 2012 $'000 2,681,344 2,764,454 2,764,454 ------2011 $'000 ------elimination Inter-services 2012 $'000 - - - - 265 24,189 15,210 39,664 39,664 2011 $'000 - - - - 355 services * 29,980 16,229 46,564 46,564 2012 $'000 Integrated transport ------2011 $'000 ------Ferry services * 2012 $'000 - - - - - 39,687 2011 $'000 2,545,122 2,584,809 2,584,809 - - - - - services * 36,901 2012 $'000 Roads and maritime 2,680,989 2,717,890 2,717,890 ------2011 $'000 Department of Transport Service group statements ------for the year ended 30 June 2012 services * 2012 Buses and related $'000 ------2011 $'000 ------Rail services * 2012 $'000 dministered assets and liabilities are disclosed in Note 30. A ADMINISTERED EXPENSES AND INCOME Expenses Administered Transfer payments Other Expenses Total Administered Income Administered Private Transport Operators' Fees Port Cargo Access Charges fees and fines Taxes, Other Incomes Total Administered Income less Expenses Administered

62 Transport for NSW Annual Report 2011–12 - 992 3,743 63,951 45,033 28,878 74,579 52,726 347,868 122,004 310,426 767,926 2011 $'000 1,574,416 1,106,128 91,405,252 92,755,090 94,329,506 Total 28 55,064 48,894 68,320 56,878 32,347 97,417 837,470 582,134 145,013 552,942 888,752 129,466 2012 $'000 1,591,882 94,062,782 95,965,625 97,557,507 ------1 179 (178) 2,998 (147,288) (144,290) (144,289) 2011 $'000 ------elimination Inter-services (345,430) (345,430) (345,430) 2012 $'000 ------585 58,319 72,411 83,418 127,662 200,073 142,322 342,395 2011 $'000 ------671 services * 9,285 3,593 329,110 354,371 692,766 171,342 175,606 868,372 2012 $'000 Integrated transport ------7,807 4,938 3,432 2,749 13,988 101,642 106,580 120,568 2011 $'000 ------Ferry services * 15,097 29,463 34,350 78,910 71,550 71,550 150,460 2012 $'000 ------12,498 44,469 45,876 296,650 145,784 121,419 665,242 499,401 2011 $'000 62,686,636 63,519,173 64,018,574 - - - services * 6,167 11,805 48,106 22,525 356,671 329,691 768,798 144,342 136,447 818,657 129,466 2012 $'000 Roads and maritime Financial statements Financial 64,446,711 65,681,790 66,450,588 ------456 9,453 2,726 13,356 14,060 74,579 37,325 2011 $'000 1,390,320 1,427,645 1,313,015 Department of Transport Service group statements ------for the year ended 30 June 2012 13 406 services * 8,152 2,383 18,237 13,820 40,615 97,417 2012 Buses and related $'000 1,382,582 1,482,395 1,523,010 - - - 992 7,801 3,743 34,193 44,854 28,878 102,684 717,281 204,901 173,468 967,919 2011 $'000 27,245,818 27,596,694 28,564,613 - - - Rail 28 788 services * 1,754 35,107 50,698 32,347 70,095 118,355 200,219 356,223 242,770 2012 $'000 28,158,346 28,554,284 28,910,507 Consolidated REPORTING ENTITY'S ASSETS AND LIABILITIES Current Assets Cash and cash equivalents Receivables Inventories Financial assets at fair value Non-current assets held for sale Total current assets Non-current Assets Receivables Inventories Financial assets at fair value Property plant and equipment Other financial assets Intangible Assets Other assets Deferred tax asset Investment property Total non-current assets TOTAL ASSETS

Financial statements 63 2,389 60,655 78,171 64,002 14,209 712,688 881,188 166,352 341,857 2011 $'000 3,230,101 3,951,469 7,181,570 1,395,009 2,276,447 1,188,603 87,147,936 Total 2,355 54,655 13,811 91,767 67,792 243,592 877,085 211,472 553,382 2012 $'000 1,724,926 3,125,541 2,584,207 2,402,834 5,702,337 8,827,878 88,729,629 ------(1,954) (142,335) (142,335) (142,335) 2011 $'000 ------elimination Inter-services (10,876) (334,554) (334,554) (334,554) 2012 $'000 ------45 2,784 6,596 (9,892) 65,349 65,304 172,939 104,619 286,938 352,287 2011 $'000 ------45 services * 2,270 15,640 413,446 110,745 542,101 153,106 153,151 695,252 173,120 2012 $'000 Integrated transport - - - - - 394 143 128 4,000 1,407 6,506 5,550 23,701 30,729 36,279 84,289 2011 $'000 ------Ferry 276 106 106 services * 5,604 59,833 65,713 65,819 84,641 2012 $'000 - - - 748 12,646 136,121 279,909 632,005 730,377 137,754 341,812 2011 $'000 1,067,029 1,284,909 2,053,492 3,338,401 60,680,173 - - - services * 5,356 70,737 85,610 10,440 894,886 183,298 553,337 2012 $'000 1,239,887 1,043,163 1,445,142 3,052,082 4,291,969 Roads and maritime 62,158,619 - - - 153 5,406 7,136 55,787 43,813 64,002 93,310 760,205 154,866 205,452 979,226 242,967 2011 $'000 1,184,678 Department of Transport Service group statements - - - for the year ended 30 June 2012 161 services * 3,652 56,072 48,447 10,619 67,792 100,863 219,653 788,672 215,382 231,350 2012 Buses and related $'000 1,072,007 1,291,660 - - 2,389 52,377 20,280 65,229 14,209 428,135 571,735 477,672 379,909 400,325 847,852 2011 $'000 1,564,408 2,412,260 26,152,353 - - Rail services * 2,355 13,663 38,404 22,252 13,811 81,060 689,472 615,139 599,266 742,310 2012 $'000 1,392,741 1,424,991 2,817,732 26,092,775 The inter-services eliminations represent the net effect of consolidation adjustments that impact on both Statement of Comprehensive Income and Financial position. * The purpose of each service group is summarised in Note 1(s). * Roads and Maritime Services figures for 2010-11 relate only to the former Traffic Authority as Maritime Services Authority became part of the group on 1 November 2011 (Note (a)) Current liabilities Payables Borrowings Employee benefits Other provisions Other Financial liabilities at fair value Total current liabilities Non-current liabilities Borrowings Employee benefits Other provisions Other Deferred tax liability Fiinancial liabilities at fair value Total non-current liabilities TOTAL LIABILITIES NET ASSETS / (LIABILITIES)

64 Transport for NSW Annual Report 2011–12 ------3,979 3,979 3,979 3,979 Fund $'000 Net Claim on Expenditure / Consolidated - - - - - 3,979 3,979 3,979 $'000 Capital Appropriation - 2011 (2,784) 86,462 54,616 (507,262) (366,184) 8,961,438 8,961,438 8,595,254 8,598,038 Fund $'000 Net Claim on Expenditure / Consolidated - 86,462 54,617 (507,262) (366,183) 8,964,222 8,964,222 8,598,039 $'000 Recurrent Appropriation - - 4,000 (2,270) 47,218 51,218 216,325 216,325 267,543 269,813 aid the Consolidated Fund allocations to Department of Transport and for Fund $'000 tified or prescribed). Liability to Consolidated Fund represents the difference between Net Claim on Expenditure / Consolidated - - 4,000 47,218 51,218 218,595 218,595 269,813 $'000 Capital Appropriation - - - - 2012 11,323 11,323 9,367,474 9,367,474 9,378,797 9,378,797 Fund $'000 Net Claim on Expenditure / Consolidated Financial statements Financial - - - 19,256 19,256 Department of Transport 9,712,165 9,712,165 9,731,421 $'000 Recurrent for the year ended 30 June 2012 Appropriation Summary of compliance with financial directives Compliance is based on the assumption that Consolidated Fund moneys are spent first (except where otherwise iden ummary of Appropriation Act Treasurer's Advance Transfers to / from another agency (s33 of the Appropriation Act) Under expenditure on protected items Over expenditure "Amount Drawn Down against Appropriation" and the "Total Expenditure/Net Claim on Consolidated Fund". In 2011-12 NSW Treasury p New South Wales. Accordingly this statement summarises the compliance with financial directives by these two entities. Department of Transport and for NSW ORIGINAL BUDGET APPROPRIATION / EXPENDITURE ! OTHER APPROPRIATIONS / EXPENDITURE ! ! ! ! Total Appropriations / Expenditure Net Claim on Consolidated Fund (includes transfer payments) Amount draw down against Appropriation Liability to Consolidated Fund (Note 22) The S

Financial statements 65 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Department of Transport - Reporting entity

The Department of Transport is a NSW Government entity. The Department is a not-for-profit entity as profit is not its principal objective and it has no cash generating units. The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

As a result of amendments to the Transport Administration Act 1988 (The Act) the following changes were made to the controlled entities in the Department of Transport group:

Transport for NSW was established on 1 November 2011 as a statutory corporation to take over the roles and functions previously carried on by the Department of Transport including the planning, procurement, delivery and coordination of transport services and infrastructure in NSW. Transport for NSW (through the Director General of the Department of Transport) may, for the purpose of exercising its functions, give directions to the following transport entities – Railcorp, Roads and Maritime Services, State Transit Authority, Sydney Ferries, Transport Construction Authority, and Country Rail Infrastructure Authority.

Transport Service of New South Wales was established on 1 November 2011 as an agency to employ staff and to provide personnel services to Transport for NSW which cannot directly employ staff.

Transport Construction Authority was abolished as a statutory authority with effect from 31 March 2012 and its functions and roles transferred to Transport for NSW.

The Roads and Traffic Authority and Maritime Authority of NSW were abolished on 1 November 2011 and their functions and roles transferred to the Roads and Maritime Services.

Country Rail Infrastructure Authority and Public Transport Ticketing Corporation were abolished on 1 July 2012 and their functions and roles transferred to Transport for NSW.

On 12 March 2012, Transport for NSW, with the approval of the NSW Treasurer and the Minister for Transport, incorporated ACN 156 211 906 Pty Ltd, a proprietary limited liability company under Australian Corporations Law. Transport for NSW, as the sole shareholder, subscribed $19.8m to the issued share capital of ACN 156 211 906 Pty Ltd which used the funds raised to buy out the shareholders and bond holders of Metro Transport Sydney Pty Ltd group (comprising Sydney Light Rail Co Pty Ltd, Metro Transport Security Co Pty Ltd, Pyrmont Light Rail Co Ltd, SLR Corporate Development Pty Ltd and Light Rail Construction Co Pty Ltd) the owners of the monorail and light rail in Sydney.

The Act states that the affairs of Transport for NSW are to be managed and controlled by the Director General. The Director General is defined as the Director General of the Department of Transport. Consistent with the Director General’s power of direction it is considered that the Department of Transport has control for the purposes of preparing consolidated financial statements for the following agencies and special purpose entities or divisions:

! Transport for NSW (from 1 November 2011) ! Transport Service of New South Wales (from 1 November 2011) ! Country Rail Infrastructure Authority ! Transport Construction Authority ! Roads and Maritime Services (from 1 November 2011) ! Roads and Traffic Authority (until 31 October 2011) ! Sydney Ferries ! State Transit Authority ! Rail Corporation New South Wales ! Public Transport Ticketing Corporation ! Sydney Metro ! ACN 156 211 906 Pty Ltd ! Metro Transport Sydney Pty Ltd ! Sydney Light Rail Co Pty Ltd ! Metro Transport Security Co Pty Ltd ! Pyrmont Light Rail Co Ltd ! SLR Corporate Development Pty Ltd ! Light Rail Construction Co Pty Ltd

66 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(a) Department of Transport - Reporting entity (cont'd)

These consolidated financial statements were authorised for issue by the Director General on XXX October 2012. (b) Principles of consolidation

The consolidated financial statements comprise the financial statements of the parent entity and its controlled entities, after elimination of all inter-entity transactions and balances. The controlled entities are consolidated from the date the parent entity obtained control and until such time as control passes.

The financial statements of the controlled entities are prepared for the same reporting period as the parent entity, using generally consistent accounting practices. As a result no adjustments were required for any material dissimilar accounting policies. (c) Basis of preparation

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with:

! applicable Australian Accounting Standards (which include Australian Accounting Interpretations); ! the requirements of the Public Finance and Audit Act 1983 and Regulation; and ! the Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector Entities or issued by the Treasurer.

Property, plant and equipment, investment property, assets (or disposal groups) held for sale and financial assets at "fair value through profit or loss" and available for sale are measured at fair value. Other financial report items are prepared in accordance with the historical cost convention.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. (d) Critical accounting estimates, judgements and assumptions

In the application of accounting standards and the Financial Reporting Code for NSW General Government Sector Entities (the Code), management is required to make judgements, estimates and assumptions about the

carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and statements Financial associated assumptions are based on historical experience and various factors that are believed to be reasonable under the current set of circumstances. Actual results may differ from these estimates.

Management evaluates these judgements, estimates and assumptions on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision effects both current and future periods.

Significant judgements, estimates and assumptions made by management in the preparation of the consolidated financial statements are outlined below:

Property, plant and equipment - Note 1 (o) (iii) and (vi), and Note 13.

Other assets note 1(o)(xxiv) and note 16.

Employee benefits note 1(p)(iii) and note 20.

Commitments - Rollingstock Public Private Partnership note 25.

Financial statements 67 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(e) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

Changes in presentation and classification.

The revised Financial Reporting Code for NSW General Government Sector Entities which was issued in March 2012 mandated changes to the presentation and classification of certain items in the consolidated financial statements. The key mandated changes are:

Statement of Comprehensive Income: ! Recurrent and capital appropriations and employees benefits and other liabilities assumed by the Crown Entity previously reported under Government Contributions are to be reported under revenue. ! The separate disclosure of “Personnel Services” expenses and revenue on the face of the Statement of Comprehensive Income where employment arrangements exist between two entities. ! The term “net cost of services” being the excess of expenses over revenue is no longer to be calculated and disclosed in the Statement of Comprehensive Income. ! The budget amounts disclosed comprises the original budgeted financial statements approved by NSW Parliament adjusted for S24 of the Public Finance and Audit Act 1983 (allocations adjustments for transfer of functions between departments). Other amendments made to the budget are not reflected in the budget amounts. ! The term “surplus for the year” has been replaced by “net result”.

These changes do not impact on the financial performance of the reporting entity in that the net result for the year should not be different from the net result for the year as was previously calculated. The presentation of financial information for comparative year 2010-11 has been changed in line with the current year’s mandated presentation. The above changes also impact on the Statement of Cash Flows and the note Reconciliation of Cash Flows from Operating Activities to Net Result. Other minor changes relate to the omission of note disclosures for individually significant items, administered income - debts written off, administered income - schedule of uncollected amounts and other expenditure commitments.

Exemption from the Financial Reporting Code On 29 June 2011 the reporting entity was granted exemption by the Treasurer of NSW under S 45E of the Public Finance and Audit Act 1983 from complying fully with the requirements of the Code. The exemption relates to the separate disclosure of maintenance expenses in the Statement of Comprehensive Income and liabilities for employees' benefits in the Statement of Financial Position on the basis of their materiality and greater transparency. This exemption does not impact on the financial performance of the reporting entity.

On 1 August 2012 the reporting entity was granted a further exemption from the requirement to include the Budget column in the primary consolidated financial statements (Note 27 and 31).

Exemption from preparing Transport for NSW consolidated financial statements The Treasurer of NSW on 14 March 2012 granted an exemption to Transport for NSW, a controlled entity of the Department of Transport, from preparing consolidated financial statements on the basis that its controlled entities are included in the Department of Transport consolidated financial statements (Note 1(a) above).

(f) Administered activities

The reporting entity administers, but does not control, certain activities on behalf of the Crown Entity. It is accountable for the transactions relating to those administered activities but does not have the discretion, for example, to deploy the resources for the achievement of the reporting entity’s own objectives.

Transactions and balances relating to the administered activities are not recognised as the reporting entity’s income, expenses, assets and liabilities, but are disclosed in note 30

Where appropriate the accrual basis of accounting and applicable accounting standards have been adopted for the reporting of the administered activities.

68 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(g) Employee related expenses

Employee related expenses includes salaries, wages, leave entitlements, superannuation, workers’ compensation insurance premium, payroll tax, fringe benefits tax and redundancies.

For further details on the recognition and measurement of employee related expenses refer to Employee Benefits note 1(p)(iii).

Some employee-related expenses are included in the construction costs of certain non-physical assets and are, therefore, not included in employee related expenses.

Personnel services

In addition to permanent staff, whose cost is included in employee related expenses, the parent entity also engages staff from group entities on a fee for services basis. The cost of these seconded staff is recognised as fee for personnel service in the Statement of Comprehensive Income. Refer to note2(b).

(h) Other operating expenses and maintenance

Other operating expenses generally represent the day-to-day running costs incurred in the normal operations of the reporting entity. The recognition and measurement policy for non-employee provision expenses is detailed below in note 1(p)(iv).

Maintenance costs relate principally to rail, road and maritime infrastructure systems and do not include employee-related expenses (refer also to Note 1(o)(ix). (i) Grants and subsidies

Grants and subsidies generally comprise contributions in cash or in kind to various local government authorities and not-for-profit community organisations. The contributions include transfers of roads and bridges, cash grants for road maintenance and the provision of transport services. The grants and subsidies are expensed on the transfer of the cash or assets. The transferred assets are measured at their fair value and transferred for nil consideration.

(j) Borrowing costs statements Financial

Borrowing costs comprise mainly interest on borrowings, finance lease interest charges and the unwinding of discounts on non-employee provisions. In accordance with Treasury’s Mandate for the not-for-profit general government sector agencies, borrowing costs are expensed and recognised in the Statement of Comprehensive Income in the period in which they are incurred. This also includes any borrowing costs that relate to qualifying assets. (k) Insurance

The reporting entity arranges insurance cover through the NSW Treasury Managed Fund and private insurance companies. Some group entities hold a group self insurer’s licence with Work Cover Authority to self insure workers’ compensation. The cost of insurance is expensed in the period to which the insurance cover relates. (l) Other expenses

Other expenses include payments to bus operators for the provision of bus services in the metropolitan, regional and rural areas of New South Wales. These payments are made at the end of the month for services provided in that month and are expensed as incurred.

Financial statements 69 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(m) Accounting for the Goods and Services Tax (GST) and Income Tax Expense

Income, expenses and assets are recognised net of the amount of GST, except that:

! the amount of GST incurred by the reporting entity as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense and ! receivables and payables are stated with the amount of GST included.

Cash flows are included in the Statement of Cash Flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

State Transit Authority (STA) is the only group for-profit entity that is subject to the National Tax Equivalent Regime under which it is required to pay taxation equivalent to the NSW Government. The proprietary companies listed in Note 1(a) are subject to NSW Income Tax regime (Accounting Profit Model).

Tax effect accounting is applied using the balance sheet method. The income tax expense or benefit for the year is the tax payable on the STA's current year's taxable profit, adjusted by changes in deferred tax assets and liabilities attributable to amounts recognised as assets or liabilities and any unused tax losses.

The income tax expense for the year is $3.057m (2010-11 $2.478m) and is included in other expenses (Note 2(h)).

Deferred tax assets are recognised for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.

Deferred tax assets and liabilities are recognised for temporary differences between the assets and liabilities for accounting purposes and the tax bases of those assets and liabilities (Note 17 and 24). (n) Income recognition

Income is recognised and measured at the fair value of the consideration or contribution received or receivable to the extent that it is probable that the economic benefits will flow to the reporting entity and the income can be reliably measured. The following specific criteria must also be met before income is recognised:

(i) Parliamentary appropriations and contributions

Parliamentary appropriations and contributions are generally recognised as income when the reporting entity obtains control over the assets comprising the appropriations/contributions. Control over appropriations/contributions is normally obtained upon the receipt of cash. At 30 June unspent appropriations are recognised as liabilities rather than income, as the authority to spend the money lapses and the unspent amount must be repaid to the Consolidated Fund in the next financial year. The liability is disclosed under Other Liabilities (Note 22).

(ii) Sale of goods and services

Revenue from the sale of goods is recognised as revenue when the reporting entity transfers the significant risks and rewards of ownership of the assets.

Revenue from the provision of services (including passenger transport services) is recognised as revenue when the service is provided or by reference to the stage of completion.

(iii) Retained taxes, fines and fees

Retained taxes, fines and fees are recognised when the cash is received.

70 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(n) Income recognition (cont'd)

(iv) Investment revenue

Interest revenue on cash and cash equivalents and financial assets at fair value through profit or loss are recognised in accordance with AASB 139 Financial Instruments: Recognition and Measurement. Rental revenue is recognised in accordance with AASB 117 Leases on a straight-line basis over the lease term. Royalty revenue is recognised in accordance with AASB 118 Revenue on an accrual basis in accordance with the substance of the relevant agreement.

(v) Grants and contributions receivable

Grants and contributions comprising mainly cash and in kind contributions are recognised as revenues when control passes to the reporting entity and the contractual obligations have been satisfied. In kind contributions (e.g. roads and bridges from local councils) are measured at fair value on transfer and recognised as property, plant and equipment (note 1(o)(ii)).

(vi) Other revenue

Other revenue includes mainly the value of the emerging rights to receive private sector provided infrastructure. The non-cash revenue is also recognised as an asset (note 1(o)(xxiv)). (o) Assets (i) Property, plant and equipment

Property, plant and equipment comprise land and buildings, plant and equipment (rolling stock, buses, ferries and general plant and equipment) and infrastructure systems (rail, road and maritime infrastructure including related land and buildings). (ii) Capitalisation and initial recognition

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the reporting entity in accordance with AASB 116 Property, Plant and Equipment. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the

time of its acquisition or construction or, where applicable, the amount attributed to that asset when statements Financial initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition. The Roads and Maritime Services as the owner of major NSW ports recognises costs incurred by the port corporations in NSW in dredging of channels (harbour deepening) as an asset. A corresponding amount is also reported as income received in advance under liabilities and amortised over a period of 99 years.

Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment amount is effectively discounted at an asset-specific rate.

The cost of assets constructed for own use includes the purchase cost, other directly attributable costs and the initial estimate of dismantling and restoration costs. Borrowing costs on qualifying assets are expensed as per note 1(j).

Under certain long-term lease agreements where development has been carried out by the private sector, Roads and Maritime Services may take control of various wharf constructions after 99 years. Due to the length of time until control may be achieved, they are currently recorded at $1. In addition, certain wetland leases may be returning to Roads and Maritime Services in a relatively short period of time. These assets have been independently valued and are stated at fair value in the Statement of Financial Position.

Financial statements 71 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(ii) Capitalisation and initial recognition (cont'd)

Generally property, plant and equipment and intangible assets with a greater value than $5,000 are capitalised except for computer equipment which is normally capitalised irrespective of the $5,000 threshold where it is considered to be part of a network of assets. (iii) Valuation of property, plant and equipment

Subsequent to initial recognition, property, plant and equipment are valued in accordance with the ''Valuation of Physical Non-Current Assets at Fair Value'' Policy and Guidelines Paper (TPP 07-1). This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment and AASB 140 Investment Property.

Property, plant and equipment is measured on the basis of the fair value of its existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use.

Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Market evidence is available and used for the following major items of property, plant and equipment:

! Land under roads valued at existing use, based on an en globo valuation approach or proxy such as open space land; ! Land under trackwork valued at existing use (adjacent land use values); ! Non-specialised land and buildings, which include commercial and general purpose buildings for which there is a secondary market.

Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost.

The depreciated replacement cost method is used to revalue specialised buildings (designed for a specific limited purpose), trackwork and rail infrastructure systems, road infrastructure systems, maritime infrastructure systems, buses, ferries and certain plant and equipment. Depreciated replacement cost for these types of assets is based on the “incremental optimised replacement cost”. Optimised replacement cost is the minimum cost, in the normal course of business, to replace the existing asset with a technologically modern equivalent asset with the same economic benefits, adjusting for any overdesign, overcapacity and redundant components. Incremental optimisation means that optimisation is limited to the extent that optimisation can occur in the normal course of business using commercially available technology.

Non-specialised assets such as computer and office equipment with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. (iv) Revaluation of property, plant and equipment

The entities in the group revalue each class of property, plant and equipment at least every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Revaluations are performed by independent and / or in- house professionally qualified valuers.

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. This is because any difference between fair value and depreciated historical cost is unlikely to be material.

When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated.

72 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(iv) Revaluation of property, plant and equipment (cont'd)

For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

As a not-for-profit reporting entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds. (v) Impairment of property, plant and equipment

As a not-for-profit reporting entity with no cash generating units, the reporting entity is effectively exempted from AASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This means that, for an asset already measured at fair value, impairment can only arise if selling costs are material. Selling costs are regarded as immaterial.

Notwithstanding the exemption, the reporting entity generally reviews the carrying values of major assets for objective evidence of impairment. Where such an indication exists, an estimate of the recoverable amount is made. An impairment loss is recognised in the Statement of Comprehensive Income when the carrying amount of an asset exceeds its recoverable amount unless the asset has been revalued in which case the impairment loss is treated as a revaluation decrease. When the impairment subsequently

reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, statements Financial but only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (vi) Depreciation of property, plant and equipment

Except for certain heritage assets, depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the reporting entity.

All material separately identifiable components of assets are depreciated over their shorter useful lives. A component is accounted for separately if it has a useful life materially different from that of the prime asset and, therefore, requires separate replacement during the life of the prime asset; is material enough to justify separate tracking; and is capable of having a reliable value attributed to it. A dedicated spare part does not normally have a useful life of its own.

Certain heritage assets including original artworks and collections and heritage buildings may not have a limited useful life because appropriate curatorial and preservation policies are adopted. The decision not to recognise depreciation for these assets is reviewed annually.

Financial statements 73 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(vi) Depreciation of property, plant and equipment (cont'd)

Land is not a depreciable asset. Buildings which have been acquired for future transport infrastructure are not depreciated as these assets are not purchased to generate revenue and are ultimately demolished for transport infrastructure projects. The expected useful lives of property, plant and equipment for depreciation purposes are as follows:

Depreciation Rates Useful Lives

Rail systems 10-100 years Road systems 15-100 years Maritime systems 5-40 years Rollingstock 32-35 years Buildings 5-200 years Buses 15-20 years Ferries 15-40 years Plant and equipment 3-30 years Finance leased buses 15 years

The assets residual values, useful lives and depreciation methods are reviewed, and adjusted, if approrpriate, at each financial year end.

(vii) Major inspection costs

When each major inspection is performed, the labour cost of performing major inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is derecognised. (viii) Restoration costs

The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability. If the effect of the time value of money is material, these costs are discounted at the appropriate market yields on government bonds. (ix) Maintenance

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or a component of an asset, in which case the costs are capitalised and depreciated. (x) Leased assets

As lessee

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the commencement of the lease term. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Under the Metropolitan and Outer Metropolitan Bus System Contracts, payments to bus operators for the acquisition of new buses are considered to be in the nature of finance leases and are recognised in accordance with AASB 117 Leases.

74 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(x) Leased assets (cont'd)

The leased asset is amortised on a straight line basis or on a systematic basis over the term of the lease or, where it is likely that the reporting entity will obtain ownership of the asset, the useful life of the asset to the reporting entity.

Operating lease payments are charged to the Statement of Comprehensive Income in the periods in which they are incurred.

As lessor

The reporting entity,as the lessor, classifies its long term land leases (typically where the initial lease term exceeds 50 years), as finance leases if it transfers to the lessee substantially all the risks and rewards incidental to ownership of the land. The leased assets are recognised as current and non-current receivables at amounts equal to the net investment in the leases.

The lease receipt is recognised in two components, one as a reduction of the lease receivables and the other as a finance income. The finance income is calculated relevant to the term of the lease. (xi) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset and are included in the Statement of Comprehensive Income.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds. (xii) Intangible assets

Intangible assets are recognised only if it is probable that future economic benefits will flow to the reporting entity and the cost of the asset can be measured reliably. Intangible assets are measured

initially at cost which includes the purchase price and any costs directly attributable to preparing the asset statements Financial for its intended use. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

All research costs are expensed. Development costs are only capitalised when certain criteria are met.

The useful lives of intangible assets are assessed to be finite.

Intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for the reporting entity’s intangible assets, the assets are carried at cost less any accumulated amortisation.

The reporting entity’s intangible assets comprise principally information technology systems which are amortised using the straight line method over periods ranging from 2 years to 10 years.

Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.

Financial statements 75 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(xiii) Cash and cash equivalents

Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and in hand and NSW Treasury Corporation short-term deposits. These deposits have an original maturity of three months or less, are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. The NSW Treasury Corporation short-term deposits are designated at fair value through the profit and loss. The movement in the fair value of these deposits is reported as investment revenue.

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above and all TCorp Hour Glass investment facilities including deposits classified as financial assets at fair value through profit and loss. (xiv) Inventories

Generally inventories are held for distribution (consumed in the ordinary activities of the reporting entity) or for sale. Inventories held for distribution are valued at the lower of current replacement cost or cost; inventories held for sale are valued at the lower of cost and net realisable value. Costs are assigned to inventory using the weighted average, First-In-First-Out or specific identification methods depending on the nature of the inventory.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Current replacement cost is the cost the reporting entity would incur to acquire the asset.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. (xv) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. (xvi) Other financial assets

Other financial assets comprise receivables, loan to the Sydney Harbour Tunnel and promissory notes issued by the operators of private sector provided infrastructure assets. These assets are measured at amortised cost using the effective interest rate method. (xvii) Investment properties

Initially, investment properties are measured at cost including transaction costs. Subsequent to initial recognition, investment properties are revalued annually and stated at fair value, which is based on active market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset at the reporting date. Gains and losses arising from changes in the fair value of investment properties are included in the Statement of Comprehensive Income in the year in which they arise.

Investment properties are derecognised when they have either been disposed of or when the investment property is permanently withdrawn from use and no future benefit is expected from its disposal. Any gains and or losses on the derecognition of an investment property are recognised in the Statement of Comprehensive Income in the year of derecognition.

76 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(xvii) Investment properties (cont'd)

Transfers are made to and from investment property when, and only when, there is a change in use. Where properties are transferred from investment property, the deemed cost for subsequent accounting is its fair value at the date of change in use.

Rental income and operating expenses from investment property are reported within revenue and other expenses respectively. (xviii) Business combinations

The reporting entity applies the acquisition method in accounting for business combinations.

The consideration transferred by the reporting entity to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred and liabilities incurred, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The reporting entity recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of (a) fair value of consideration transferred and (b) the recognised amount of any non-controlling interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (ie gain on a bargain purchase) is recognised in profit or loss immediately.

Goodwill acquired in a business combination is not amortised. Instead, it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

(xix) Goodwill statements Financial

Goodwill represents the future economic benefits arising from a business combination that are not individually identified and separately recognised. See Note 1(o)(xviii) for information on how goodwill is initially determined and carried in the Statement of Financial Position. (xx) Investments

Investments are initially recognised at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs. The reporting entity determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.

! Fair value through profit or loss - The reporting entity subsequently measures investments classified as ''held for trading'' or designated upon initial recognition ''at fair value through profit or loss'' at fair value. Financial assets are classified as ''held for trading'' if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading (Note 10). Gains or losses on these assets are recognised in the net result for the year.

The NSW TCorp Hour-Glass Investment Facilities are designated at fair value through profit or loss using the second leg of the fair value option i.e. these financial assets are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management strategy, and information about these assets is provided internally on that basis to the key management personnel.

The movement in the fair value of the NSW TCorp Hour-Glass Investment Facilities incorporates distributions received as well as unrealised movements in fair value and is reported in the line item investment revenue.

Financial statements 77 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(xx) Investments (cont'd)

! Held-to-maturity investments - Non-derivative financial assets with fixed or determinable payments and fixed maturity that the reporting entity has the positive intention and ability to hold to maturity are classified as “held-to-maturity”. These investments are measured at amortised cost using the effective interest method. Changes are recognised in the net result for the year when impaired, derecognised or though the amortisation process.

! Available-for-sale investments - Any residual investments that do not fall into any other category are accounted for as available-for-sale investments and measured at fair value in other comprehensive income until disposed or impaired, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the net result for the year. However, interest calculated using the effective interest method and dividends are recognised in the net result for the year.

Purchases or sales of investments under contract that require delivery of the asset within the timeframe established by convention or regulation are recognised on the trade date, i.e. the date the reporting entity commits to purchase or sell the asset.

The fair value of investments that are traded at fair value in an active market is determined by reference to quoted current bid prices at the close of business on the Statement of Financial Position date.

Unquoted investment in subsidiaries incorporated as proprietary companies are stated at cost less accumulated impairment in the parent entity's Statement of Financial Position. The investment is subject to at least annual reviews for impairment. (xxi) Impairment of financial assets

All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that the reporting entity will not be able to collect all amounts due.

For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the year.

When an available-for-sale financial asset is impaired, the amount of the cumulative loss is removed from equity and recognised in the net result for the year, based on the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss previously recognised in the net result for the year.

Any reversals of impairment losses are reversed through the net result for the year, where there is objective evidence, except reversals of impairment losses on an investment in an equity instrument classified as available-for-sale must be made through the reserve. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss. (xxii) Derecognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if the reporting entity transfers the financial asset:

! where substantially all the risks and rewards have been transferred; or

! where the reporting entity has not transferred substantially all the risks and rewards, if the reporting entity has not retained control.

Where the reporting entity has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the reporting entity's continuing involvement in the asset.

78 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (o) Assets (cont'd)

(xxii) Derecognition of financial assets and financial liabilities (cont'd)

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. (xxiii) Non-current assets (or disposal group) held for sale

Certain non-current assets (or disposal groups) are classified as held for sale, where their carrying amount will be recovered principally through a sale transaction, not through continuing use.

Non-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell, in accordance with AASB 5 Non-Current Assets held for Sale and Discontinued Operations. These assets are not depreciated while they are classified as held for sale. (xxiv) Other assets - Private sector provided infrastructure

In these private sector provided infrastructure arrangements, the grantor (the reporting entity) gives the service concession in exchange for the right to receive the infrastructure from the operator (private sector entity) at the end of the concession period. The operator is required to design, finance and build the infrastructure and use it to provide services directly to the public during the concession period. The operator is permitted to charge the public for the services it provides. The service concession arrangement infrastructure is operator-controlled during the concession period and grantor-controlled thereafter.

In the absence of a specific Australian Accounting Standard, Treasury Policy and Guidelines Paper Accounting for Privately Financed Projects (TP 06-8) applies. This policy requires the reporting entity to initially determine the estimated written down replacement cost by reference to the project’s historical cost escalated by a construction index and the system’s estimated working life. The estimated written down replacement cost is then allocated on a systematic basis over the concession period using the annuity method and the government bond rate at the commencement of the project. During the concession period, the reporting entity recognises the annual value of the right to receive the infrastructure as an asset and as revenue (note 1(n)((vi)). (p) Liabilities

(i) Payables statements Financial

These amounts represent liabilities for goods and services provided to the reporting entity and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. (ii) Borrowings

Borrowings are not held for trading or designated at fair value through profit or loss. Borrowings are initially measured at the fair value of the consideration received. Any difference between the proceeds and the redemption amount (premium or discount) is recognised in the net result over the period of the borrowings using the effective interest method.

The finance lease liability is determined in accordance with AASB 117 Leases.

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid is recognised in profit or loss as other income or finance costs.

Borrowings are classified as current liabilities unless the reporting entity has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Financial statements 79 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (p) Liabilities (cont'd)

(iii) Employee benefits

(a) Salaries and wages, annual leave, sick leave and on-costs

Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that fall due wholly within 12 months of the reporting date are recognised and measured in respect of employees' services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.

Long-term annual leave that is not expected to be taken within twelve months is measured at present value in accordance with AASB 119 Employee Benefits. Market yields on government bonds are used to discount long-term annual leave.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

The outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.

(b) Long service leave and superannuation

A liability for long service leave is measured in accordance with AASB 119 Employee Benefits. at the present value of future payments anticipated for the employee services that the reporting entity has taken at the reporting date. An actuary calculates this using:

! expected future wage and salary levels; ! experience of employee departures; and ! periods of service.

Estimated future cash outflows are discounted using market yields at the reporting date that closely match the term of maturity of government bonds.

Apart from the parent entity, Transport Service of New South Wales and Country Rail Infrastructure Corporation, the controlled entities are responsible for funding their employees' accrued long service leave entitlements which are reported under employee benefits. However, in the case of the parent entity, the long service leave liabilities are assumed by the Crown Entity and accordingly are recognised in the Statement of Comprehensive Income as "Acceptance by the Crown Entity of employee benefits and other liabilities".

In the case of defined benefit plans (SASS, SANCSS and SSS), the unfunded superannuation liability is recognised in accordance with AASB 119 Employee Benefits. It is measured as the difference between the present value of members' accrued benefits (as determined by actuaries) as at reporting date and the estimated net market value of the superannuation scheme's assets at that date.

For those group entities that are responsible for funding their accrued superannuation liabilities, superannuation expense recognised in the Statement of Comprehensive Income comprises: ! For defined contribution plans, the contribution payable for the period; and ! For defined benefit plan, the expense as determined by the actuaries.

In the case of the parent entity, the superannuation expense recognised in the Statement of Comprehensive Income comprises: ! For defined contribution plans, the contribution payable for the period; and ! For defined benefit plans, the superannuation expense is a multiple of the employees' superannuation contributions as specified in the Treasury Circular "Accounting for Superannuation" (TC 11/04).

80 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) (p) Liabilities (cont'd)

(iii) Employee benefits (cont'd)

The parent entity's defined benefit plan superannuation expense is assumed by the Crown. The parent entity accounts for the liability as having been extinguished resulting in the amount assumed being shown as part of the non-monetary revenue item described as "Acceptance by the Crown Entity of the employee benefits and other liabilities". (iv) Other provisions

Other provisions exist when the reporting entity has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

Any provisions for restructuring are recognised only when the reporting entity has a detailed formal plan and it has raised a valid expectation in those affected by the restructuring that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected.

If the effect of the time value of money is material, provisions are discounted at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. (q) Equity and reserves

(i) Asset revaluation reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets. This accords with the reporting entity’s policy on the revaluation of property, plant and equipment as discussed in note (1)(o)(iii) and (iv).

(ii) Accumulated funds

The category "Accumulated Funds" includes all current and prior period retained funds.

(iii) Contributed equity Financial statements Financial Contributed equity represents generally assets less liabilities transferred to the reporting entity by the NSW Government.

(iv) Reserves

Separate reserve accounts are recognised in the financial statements only if such accounts are required by specific legislation or Australian Accounting Standards (e.g. hedging gains and losses).

(v) Equity transfers

Equity transfers represent the transfer of net assets between agencies as a result of an administrative restructure, transfers of programs / functions and parts thereof between NSW public sector agencies and "equity appropriations". These equity transfers are designated or required by Accounting Standards to be treated as contributions by owners and recognised as an adjustment to "Accumulated Funds". This treatment is consistent with AASB 1004 Contributions and Australian Interpretation 1038 Contributions by Owners made to Wholly-owned public Sector Entities.

Transfers arising from an administrative restructure involving not-for-profit and for-profit government entities are recognised at the amount at which the assets and liabilities were recognised by the transferor immediately prior to the restructure. Subject to below, in most instances this will approximate fair value.

All other equity transfers are recognised at fair value, except for intangibles. Where an intangible has been recognised at (amortised) cost by the transferor because there is no active market, the transferee agency recognises the asset at the transferor's carrying amount. Where the transferor is prohibited from recognising internally generated intangibles, the transferee agency does not recognise that asset.

Financial statements 81 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(r) Budgeted amounts

For the parent entity only, the budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting period as adjusted for S24 of the Public Finance and Audit Act 1983 (allocations adjustments for transfer of functions between departments). Other amendments made to the budget are not reflected in the budget amounts. (s) Disaggregation of financial information by main activities of the reporting entity

In accordance with the Code the reporting entity has disaggregated expenses and revenue and assets and liabilities by its main activities. The reporting entity’s main activities comprise:

Rail Services - Rail Corporation - Country Rail Infrastructure Authority - Transport Construction Authority - Sydney Metro - Light Rail and Monorail

Road Transport Services - State Transit Authority (mainly Bus Services) - Department of Transport and Transport for New South Wales contributions for bus transport services in the Sydney metropolitan area and rural and regional areas

Roads Traffic and - Roads and Maritime Services Maritime Services

Ferry Services - Sydney Ferries - Private ferries

Integrated Transport - Department of Transport Services - Transport for New South Wales - Transport Service of New South Wales

Integrated Transport Services Activity is responsible for: (a) policy formulation, (b) program and contract management, (c) passenger transport compliance and regulation, (d) transport project development and (e) opal electronic transport ticketing project.

The expenses, revenue, assets and liabilities were allocated to these major activities on an actual basis using the financial statements of the parent entity and its controlled entities.

82 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(t) New Australian Accounting Standards issued but not effective

At reporting date all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board ("the AASB") that are relevant to group operations and effective for the current annual reporting period have been adopted.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted for the financial reporting period ended 30 June 2012 in accordance with Treasury mandated policy. The group’s assessment of the impact of these new standards and interpretations is set out below:

Impact on Reporting Entity’s Financial Standard Summary of key requirements / changes Effective date Statements

AASB 9 Financial AASB 9 introduces new requirements for The IASB has The impact on the Instruments and AASB the classification, measurement and deferred the consolidated financial 2010-7 Amendments to derecognition of financial assets and effective date statements is not Australian Accounting financial liabilities. of this standard expected to be Standards arising from to 1 January significant. AASB 9 2015. It is expected that AASB will also make a similar amendment

AASB 10 Consolidated AASB 10 introduces a new principles-based 1 January 2013 The impact on the Financial Statements control model and requires the parent entity consolidated financial to present consolidated financial statements is not statements as those of a single economic expected to be entity. significant.

AASB 11 Joint AASB 11 aligns more closely the 1 January 2013 The impact on the statements Financial Arrangements accounting by investors with their rights consolidated financial and obligations in the joint venture. The statements is not standard requires the use of equity expected to be accounting method. significant due to the absence of material joint arrangements.

AASB 12 Disclosure of AASB 12 introduces new disclosures about 1 January 2013 The standard may Interests in other Entities the nature and financial effects of an impact on the type of entity’s investment in other entities. information disclosed.

AASB 13 Fair Value The Standard defines fair value, 1 January 2013 It is not possible at Measurement and AASB establishes a single framework or guidance this stage to quantify 2011-8. for the measuring of fair value and requires the impact on the enhanced disclosures about fair value carrying amounts of measurements. the Group's revalued assets.

AASB 2011-9 The main change is that, in the Statement 1 July 2012 Impact on the Amendments to of Comprehensive Income, the “Other financial statements is Australian Accounting Comprehensive Income” section will need not significant. Standards – Presentation to be presented in two sub-sections, based of Items of Other on whether the items may be recycled to Comprehensive net result in the future.

Financial statements 83 Department of Transport Notes to the financial statements for the year ended 30 June 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(t) New Australian Accounting Standards issued but not effective (cont'd) Impact on Reporting Entity’s Financial Standard Summary of key requirements / changes Effective date Statements

AASB 119 Employee This Standard will mainly impact the 1 January 2013 It is not possible at Benefits AASB 2011-10 accounting for defined benefit pension with this stage to and AASB 2011-11 schemes. retrospective determine the impact implementation of this new Standard . on the consolidated financial statements.

AASB 127 Separate The new Standard prescribes the 1 January 2013 The impact on the Financial Statements accounting and disclosure requirements for consolidated financial investments in subsidiaries, joint ventures statements is not and associates when an entity prepares expected to be separate financial statements (in addition to significant. consolidated financial statements).

AASB 128 Investments in This Standard prescribes the accounting for 1 January 2013 The impact on the Associates and Joint investments in associates and defines consolidated financial ventures “significant influence”. statements is not expected to be significant.

AASB 1053 and AASB AASB 1053 requires entities that prepare 1 January 2013 NSW Treasury 2010-2 regarding general purpose financial statements to expects all public differential reporting adopt Tier 1 (full compliance with AASB) or sector entities to Tier 2 (Reduced Disclosure Requirements). prepare accounts in accordance with Tier 1 requirements.

AASB 2010-8 regarding The amendments in AASB 2010-8 relate to 1 January 2012 No impact on the deferred tax the measurement of deferred tax assets reporting entity’s and deferred tax liabilities that arise from financial statements investment property being measured at fair as the controlled entity value. that owns investment properties is not subject to tax regime.

AASB 2010-10 regarding AASB 2010-10 amendments affect AASB 1 1 January 2013 The impact on the removal of fixed dates for First Time Adoption of Australian consolidated financial first time adopters Accounting Standards and provide relief for statements is not first-time adopters of Australian Accounting expected to be Standards. significant.

AASB 2011-3 AASB 1049 aims to harmonise the 1 July 2012 The impact on the Amendments to Government Finance Statistics (GFS) and reporting entity’s Australian Accounting general purpose financial statements. financial statements is Standards – Orderly expected to be Adoption of Changes to insignificant. the ABS GFS Manual and Related Amendments (AASB 1049)

84 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

2 EXPENSES EXCLUDING LOSSES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (a) Employee related expenses

Salaries and wages (including recreation leave) 2,223,659 2,027,383 44,076 47,690 Superannuation - defined benefit plans 16,011 16,855 1,026 1,036 Superannuation - defined contribution plans 140,007 127,791 3,323 2,684 Long service leave 139,209 65,504 2,355 1,486 Workers' compensation insurance 41,334 50,478 183 148 Payroll tax and fringe benefit tax 128,025 117,801 2,732 2,663 Redundancy Payments 124,341 5,906 2,284 - Other 27,162 998 93 239 Skilled Hire Contractors 106,591 125,558 7,188 9,056 2,946,339 2,538,274 63,260 65,002

Employee related costs of $398m (2011: $388m) (parent entity: nil) have been capitalised in property, plant and equipment and intangible assets (computer systems) and are excluded from the above.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (b) Personnel service expense

Fees for Personnel Services - - 34,146 57,801 - - 34,146 57,801

Personnel service expense comprises fees charged to the parent entity for personnel services provided by various controlled entities. Financial statements Financial

Financial statements 85 Department of Transport Notes to the financial statements for the year ended 30 June 2012

2 EXPENSES EXCLUDING LOSSES (cont'd) Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (c) Other operating expenses include the following:

Auditor's remuneration - audit of the financial reports 2,935 2,214 60 191 Bad and doubtful debts 72 149 - - Cashback Refund M4/M5 67,486 64,638 - - Communications 42,969 47,285 637 1,879 Consultancy costs 15,364 9,709 411 2,956 Contractors 212,735 165,295 14,767 62,679 Electricity and gas 89,115 78,196 28 397 Fleet hire & leasing charges including access fees 52,237 32,351 141 284 Fuel Costs 98,749 89,191 31 67 General expenses 172,274 123,912 4,227 7,993 Information technology (Computer expenses) 104,574 94,656 1,456 3,771 Insurance 53,184 46,790 173 509 Internal audit 661 424 17 71 Land and buildings remediation 6,842 5,684 - - Legal costs 37,567 22,076 2,303 3,363 Office expenses 59,965 62,285 4,962 9,348 Payments to councils and external bodies 14,736 31,425 - - Rental expense relating to operating leases 90,650 88,221 3,201 10,297 Security costs 34,430 39,218 836 2,589 Sydney Harbour Tunnel operating expenses 32,362 31,357 - - Taxes, rates and related charges 3,763 4,498 - - Travel 10,966 9,919 206 400 Tripartite agreement payment - 11,820 - - Derecognition and write off of assets - 3,224 - - Materials 28,278 3,902 - - 1,231,914 1,068,439 33,456 106,794

General expenses of $172m (2011: $124m) includes bus services for rail replacement, public liability claims, merchant and bank fees, vehicles number plates and occupational health and safety expenses.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (d) Maintenance

Maintenance - general 25,001 30,208 104 626 Maintenance - buses and ferries 47,989 49,114 - - Maintenance - rail infrastructure systems 422,149 402,297 - - Maintenance - trains 296,114 329,040 - - Maintenance - road infrastructure systems 664,202 597,374 - - Maintenance - maritime infrastructure systems 10,229 - - - 1,465,684 1,408,033 104 626 Reconciliation - Total maintenance Maintenance expense - contracted labour and other (non- employee related), as above 1,465,684 1,408,033 104 626 Employee related maintenance expense included in Note 2(a) 551,691 513,675 - - Total maintenance expense included in Note 2(a) + 2(d) 2,017,375 1,921,708 104 626

86 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

2 EXPENSES EXCLUDING LOSSES (cont'd)

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (e) Depreciation and amortisation expense

Depreciation (Note 13) Infrastructure systems: Depreciation - Maritime systems 6,641 - - - Depreciation - Road systems 849,936 817,215 - - Depreciation - Rail systems 744,528 682,924 - - Buildings: Depreciation - Buildings 28,319 17,676 3 14 Plant and equipment: Depreciation - Rolling stock 172,867 186,036 - - Depreciation - Ferries 16,255 13,510 - - Depreciation - Buses 39,418 34,743 - - Depreciation - Plant and equipment 68,976 72,181 293 707 Total Depreciation 1,926,940 1,824,285 296 721 Amortisation Amortisation - Computer systems (Note 15) 41,921 41,877 720 2,437 Amortisation - Finance Leased Buses (Note 13) 25,394 20,452 15,219 38,180 1,994,255 1,886,614 16,235 41,338

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (f) Grants and subsidies

Taxi transport subsidy scheme 26,080 25,715 8,515 25,715 Community transport groups 53,041 51,414 23,643 51,414 Private vehicle conveyance 21,145 20,069 9,907 20,069 Financial statements Financial Rail Corporation - - 790,881 2,499,622 Country Rail Infrastructure Authority - - 55,143 173,608 Sydney Ferries - - 33,305 84,989 Carparks and interchanges 8,322 15,378 1,251 15,297 Transport Construction Authority - - - 160,443 Roads and Maritime Services - - 1,484,615 4,240,791 Grants under road safety program 12,753 19,177 - - Grants to local councils – maintenance of transport infrastructure 379,514 310,345 22 1,363 Grants to local councils – transfer of roads and bridges 25,066 45,379 - - Other 26,435 9,822 9,860 13,135 552,356 497,299 2,417,142 7,286,446

The parent entity and Transport for NSW paid grants and subsidies to various transport entities in 2011-12. These payments were eliminated on consolidation in accordance with Note 1(b).

Financial statements 87 Department of Transport Notes to the financial statements for the year ended 30 June 2012

2 EXPENSES EXCLUDING LOSSES (cont'd)

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (g) Finance costs

Finance lease interest charges 119,870 97,470 21,390 55,508 Interest expense on NSW TCorp borrowings 72,329 72,054 - - Interest expense on non current provisions and liabilities (Note 21) 6,541 5,774 - - Debt guarantee 80 583 - - Finance costs - others 6,988 1,366 8 19 205,808 177,247 21,398 55,527

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (h) Other expenses

Service costs – metropolitan and outer metropolitan bus operators 457,915 416,056 266,526 740,849 Major events - hire of bus and rail services 5,053 7,632 1,822 7,632 Service costs – rural and regional private bus operators 374,508 353,401 123,729 353,401 Project costs expensed 13,936 43,207 21,373 - Income tax expense (note 1(m)) 3,057 2,478 - - 854,469 822,774 413,450 1,101,882

3 REVENUE

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

(a) Appropriations

Recurrent appropriations Total recurrent drawdowns from NSW Treasury (per Summary of Compliance with Financial Directives) 9,378,797 8,598,038 2,905,834 8,598,038 Less: Liability to Consolidated Fund (per Summary of Compliance with Financial Directives) (Note 22) - 2,784 - 2,784 Recurrent appropriations (per Statement of Comprehensive Income) 9,378,797 8,595,254 2,905,834 8,595,254

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

(b) Appropriations

Capital appropriations Total capital drawdowns from NSW Treasury (per Summary of Compliance with Financial Directives) 269,813 3,979 - 3,979 Less: Liability to Consolidated Fund (per Summary of Compliance with Financial Directives) (Note 22) 2,270 - - - Capital appropriations (per Statement of Comprehensive Income) 267,543 3,979 - 3,979

88 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

3 REVENUE (cont'd)

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

(c) Sale of goods and services Passenger service revenue 1,096,956 1,008,898 - - Toll revenue including E-Tag 137,415 138,641 - - Access fees 67,492 77,906 - - Number plates 93,771 86,626 - - Works & services including construction contract revenue 120,541 44,989 - - Third party insurance data access charges 17,901 16,769 - - Advertising 46,770 44,706 - - Publications 7,012 7,108 - - Fees for services rendered including salary recoupments 69,842 29,738 713 16,054 Other 229,394 140,862 356 6,317 1,887,094 1,596,243 1,069 22,371

Other revenue of $229m (2011: $141m) includes vehicle related fees, commissions, tours, catering, leases, sale of scrap, sale of products and the early repayment of third party contract contributions on the transfer of the inland route to Australian Rail and Track Corporation.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (d) Investment revenue

Rents 104,738 61,854 466 370 TCorp Hour-Glass Investment Facilities designated at fair value through profit or loss 41,834 54,150 - - Interest revenue from financial assets not at fair value through profit or loss 10,583 11,420 2,216 5,689 Interest on finance lease receivables 7,500 - - - 164,655 127,424 2,682 6,059

Rental income related to: (a) property which is held mainly to earn rental income ($9m) and for capital appreciation statements Financial (loss - $3m). This property is reported as investment property (note 14) in the Statement of Financial Position and (b) other properties which are primarily held to support the core transport functions of the reporting entity. The leasing of parts of these properties ($96m) is, therefore, incidental to the core function of the reporting entity. Accordingly these properties are reported as property, plant and equipment (Note 13) in the Statement of Financial Position.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (e) Other revenue

Value of emerging interests of Private Sector Provided Infrastructure (Notes 1(o)(xxiv) and 16) 158,146 142,449 1,285 - Amortisation of deferred revenue on Private Sector Provided Infrastructure 12,179 12,179 - - M2 and Eastern Distributor promissory notes 15,806 1,489 - - Value of emerging interests in Sydney Harbour Tunnel Loan 7,116 6,645 - - Value of other emerging interests 4,070 - - - 197,317 162,762 1,285 -

Financial statements 89 Department of Transport Notes to the financial statements for the year ended 30 June 2012

3 REVENUE (cont'd)

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (f) Retained taxes, fees and fines

Taxi operators accreditation renewal fees 2,165 2,160 1,147 2,160 Fees earned from maritime infrastructure assets 30,112 - - - Fines 22,375 18,429 - - 54,652 20,589 1,147 2,160

The reporting entity collects taxi operators' accreditation fees which can only be used to fund taxi industry related operations and initiatives.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 (g) Grants and contributions

Community transport grants 48,682 48,601 20,933 48,601 NSW Government agencies - others (Non-transport) 12,981 20,858 - - Private firms and individuals 62,884 12,343 - - Transport entities - - 17,251 32,122 Local councils 3,018 103,599 - - Other government agencies - inter-state and Commonwealth Government 147,664 3,067 - - 275,229 188,468 38,184 80,723

Community transport grants of $49m (2011: $49m) represent grants received from the Department of Family and Community Services, Ageing, Disability and Home Care for the Community Transport Group funding scheme.

Local councils grants of $3m (2011: $104m) include roads and bridges transferred (fair value - $3m (2011: $98m)) to the reporting entity.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

(h) Acceptance by the Crown Entity of employee benefits and other liabilities Superannuation - defined benefit 2,875 1,780 1,026 1,036 Long service leave 12,236 1,486 2,355 1,486 Payroll tax 89 57 56 57 15,200 3,323 3,437 2,579

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

(i) Personnel service revenue Fees for personnel services provided - - 72,589 57,801 - - 72,589 57,801

90 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

4 GAIN/(LOSS) ON DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Proceeds from disposal including credit sales 42,965 47,712 - - Written down value of assets disposed (40,704) (41,795) - - Net gain on disposal of property, plant and equipment 2,261 5,917 - -

5 OTHER GAINS / (LOSSES)

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Property, plant and equipment Bargain purchase gain on acquisition of MTS Group 57,781 - - - Revaluation decrement (796,975) (13,272) - (500) Impairment (969) (513) - - Write offs and asset transfers free of charge (658,068) (230,401) (7) - (1,398,231) (244,186) (7) (500) Receivables Decrease in allowance recognised in net result (Note 8) (5,790) 1,279 - - Write offs (77) (188) - - (5,867) 1,091 - - Other Investment property fair value gains / (losses) (Note 14) (2,823) - - - Total (2,823) - - -

Losses on sale of units (NSW TCorp - short term deposits) - (142) - - - (142) - - Financial statements Financial (1,406,921) (243,237) (7) (500)

In 2011-12 the land under the roads revaluation model was reviewed and amended resulting in a revaluation decrement of $2.7bn of which $1.9bn was charged to asset revaluation reserve to offset previously recognised increments. The residual revaluation decrements of $792m was recognised as a revaluation decrement in the Statement of Comprehensive Income.

The amount of $658m includes the transfer of part of the NSW rural rail network ($327m) to Australian Track Rail Corporation for nil consideration and the write down of assets which had reached the end of their technical working lives.

6 CONDITIONS ON CONTRIBUTIONS

The reporting entity collects taxi operators' accreditation fees and receives grants and contributions whose usage is restricted by requirements of the grantors. The reporting entity has complied in full with the externally-imposed requirements in the year under review.

Financial statements 91 Department of Transport Notes to the financial statements for the year ended 30 June 2012

7 CASH AND CASH EQUIVALENTS

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Cash at bank and on hand 146,638 101,562 93,856 70,118 Short-term deposits with NSW TCorp 594,293 917,963 - - Public revenue bank account 36,265 29,454 - - Security deposits 60,274 57,149 - - 837,470 1,106,128 93,856 70,118

For the purposes of the Statement of Cash Flows, cash and cash equivalents include cash at bank, cash on hand, and all investments with NSW TCorp.

Cash and cash equivalent assets recognised in the Statement of Financial Position are reconciled at the end of the financial year to the Statement of Cash Flows as follows: Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Cash and cash equivalents (per Statement of Financial Position) 837,470 1,106,128 93,856 70,118 Financial assets at fair value (Note 10) 48,106 - - - Closing cash and cash equivalents (per Statement of Cash Flows) 885,576 1,106,128 93,856 70,118

Refer Note 32 for details regarding credit risk, liquidity risk, and market risk arising from financial instruments.

Credit standby arrangements and loan facilities with NSW TCorp

Details of credit standby arrangements available to and used by the reporting entity are provided under Financial Instruments (Note 32(c)).

Restricted cash and cash equivalents

Cash and cash equivalent assets include restricted cash of $104m (2011: $33m) (parent entity: $94m (2011: $33m)) which can only be used for specific purposes and are, therefore, not available to fund the ongoing operations of the reporting entity.

8 RECEIVABLES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Receivables Sale of goods and services 156,773 64,262 258 14,792 Retained taxes, fees and fines 4,737 7,757 - - Goods and Services Tax recoverable 110,595 102,444 - 9,623 Prepayments 29,624 25,513 - - Income receivable 97,981 122,310 - 97,581 Other debtors 160,719 27,899 - 2 Investment income receivable 3,617 3,222 - 2,957 Finance leases 28,817 604 - - 592,863 354,011 258 124,955 Less: Allowance for impairment 10,729 6,143 - 26 582,134 347,868 258 124,929

92 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

8 RECEIVABLES (cont'd) Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Movement in the allowance for impairment: Balance at 1 July 6,143 7,585 26 26 Transfer of provision on administrative restructure 1,267 - (26) - Increase/(Decrease) in allowance recognised in net result (Note 5) 5,790 (1,279) - - Bad debts written off (2,471) (163) - - Balance at 30 June 10,729 6,143 - 26

Non-current Receivables Finance leases 30,820 28,599 - - Other receivables 26,058 16,434 - - 56,878 45,033 - -

Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 32.

9 INVENTORIES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Inventories Materials, spare parts and other stores 59,663 68,147 - - Work in progress 1,088 800 - - Less: Provision for obsolescence (5,687) (4,996) - - 55,064 63,951 - -

Non-current Inventories statements Financial Materials, spare parts and other stores 32,347 28,878 - - 32,347 28,878 - -

10 FINANCIAL ASSETS AT FAIR VALUE

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Financial assets held for trading Derivative financial instruments 788 3,743 - -

Financial assets at fair value through profit or loss Tcorp - Hour-Glass investment facilities (note 7) 48,106 - - - 48,894 3,743 - -

Non-current Financial assets held for trading Derivative financial instruments 28 992 - - Total 28 992 - -

Financial statements 93 Department of Transport Notes to the financial statements for the year ended 30 June 2012

10 FINANCIAL ASSETS AT FAIR VALUE (cont'd)

Refer to Note 32 for further information regarding credit risk, liquidity risk, and market risk arising from financial instruments.

Railcorp is the only group entity that uses derivative financial instruments. The activity is carried in accordance with Railcorp Treasury Management Policy which establishes a prudential framework covering policies, best practice, internal controls and reporting systems for the management of financial risk within Railcorp's operations. The policy covers specific areas such as foreign exchange risk, interest rate risks, commodity risk, credit risk, use of derivative financial instruments and investment of excess funds. The reporting entity has derivative financial instruments as an asset and liability.

This Policy complies strictly with the internal policies and guidelines within the broad framework of the NSW "Treasury Management Policy" (TPP07 7). Accounting for Treasury instruments is in accordance with NSW Treasury Accounting Policy, "Accounting for Financial Instruments" (TPP08 1). Treasury instruments approved for the management of financial risk are in accordance with the Public Authorities (Financial Arrangements) Act 1987.

Derivative financial instruments are used to hedge against exposures to foreign currency risk on overseas purchase commitments and on commodity price risk on forecast distillate and electricity purchases (where applicable).

Forward foreign exchange contracts are used to hedge against currency risk on firm commitments for the purchase of goods or services from overseas suppliers. These contracts entail a right to receive a fixed amount of foreign currency at a specified future date, which is offset by an obligation to pay a fixed amount of domestic currency at that time.

11 NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD FOR SALE

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 Non-current Assets held for sale Land and buildings 49,973 50,941 - - Plant and equipment 9,873 1,329 - - Infrastructure systems 8,068 - - - Buses 406 456 - - Total 68,320 52,726 - -

The assets held for sale relate to property, plant and equipment that have been determined as being surplus to needs. In such case sales are expected to be realised within the next reporting period.

12 OTHER FINANCIAL ASSETS

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 Non-current Other financial assets Interest free advances to taxi operators(1) 671 585 - 585 Loan to Sydney Harbour Tunnel Company(2) 111,547 104,431 - - Promissory Notes(3) 32,795 16,988 - - 145,013 122,004 - 585

Refer to Note 32 for further information regarding credit risk, liquidity risk, and market risk arising from financial instruments. 1 The reporting entity provides repayable interest-free loans to assist taxi operators (in rural and regional NSW) to make taxis wheel-chair accessible. The reporting entity holds bills of sale as security for these advances and has recorded its financial interests in the vehicles in the Register of Encumbered Vehicles. 2 This loan is considered to be part of the reporting entity's interest in the Sydney Harbour Tunnel and as at 30 June 2012 has been valued on a net present value (NPV) basis. The loan is due for repayment on 31 December 2022. 3 Promissory notes relate to amounts receivable under the Private Sector Road Toll agreement in respect of the M2 Motorway and Eastern Distributor. The promissory notes are redeemable at the earlier of the achievement of certain Internal Rate of Return (IRR) or the end of the respective concession period. The promissory notes are valued on a net present value (NPV) basis as at 30 June 2012.

94 Transport for NSW Annual Report 2011–12 94,062,782 91,405,252 (41,706,654) Plant & (39,714,425) Equipment Total Property, 4,499,595 4,240,991 (5,750,136) Total (5,537,530) 48,215 55,615 (191,975) (175,776) Ferries 579,274 565,110 (478,334) (512,053) Buses 2,938,281 2,667,363 (4,513,734) (4,324,386) Rolling stock - - 509,202 479,797 buses Finance leased 424,623 473,106 (566,093) (525,315) Plant and equipment 86,215,411 83,517,469 Total (35,812,227) (34,059,949) - - Department of Transport (140,283) 1,382,286 Financial statements Financial Maritime systems for the year ended 30 June 2012 Notes to the financial statements Rail 24,652,225 Infrastructure Systems Plant and Equipment 24,271,744 (14,025,338) (14,260,346) systems 60,180,900 59,245,725 (21,646,606) (19,799,603) Road systems (144,291) (116,946) 3,347,776 3,646,792 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Land and buildings 13 PROPERTY, PLANT AND EQUIPMENT Net carrying amount 30 June 2012 At At costAccumulated amortisation and impairmentAt fair valueAccumulated depreciation and impairment Net carrying amount 3,492,067 - 81,827,506 - 38,677,563 - 1,522,569 - 122,027,638 990,716 - - - - - 7,452,015 1,057,608 - - 240,190 9,740,529 - - 135,260,234 584,509 (75,307) ------584,509 (75,307) 584,509 (75,307) Consolidated 1 July 2011 At At costAccumulated amortisation and impairmentAt fair valueAccumulated depreciation and impairment 3,763,738 - 79,045,328 - 38,532,090 - - - 117,577,418 - - 998,421 - - - 6,991,749 - - 1,077,163 231,391 - - 9,298,724 529,709 130,639,880 (49,912) ------529,709 (49,912) 529,709 (49,912)

Financial statements 95 (792,287) 1,146,333 94,062,782 Plant & Equipment Total Property, (3,578) 2,472 19,781 4,499,595 Total - 48,215 Ferries - 579,274 Buses - 2,938,281 stock Rolling ---- - 509,202 buses Finance leased ------4,887 ------ormer Maritime 19,781 424,623 Plant and equipment reporting period is set out below. 1,011,675 Total 86,215,411 Department of Transport for the year ended 30 June 2012 Notes to the financial statements 1,377,665 1,382,286 Maritime systems 4,887 - 4,887 (329,400) Rail 24,652,225 Infrastructure Systems Plant and Equipment systems (36,590) 148,665 343,717 - 492,382 1,898 - 13,210 - - 15,108 (369,658) 2,597,788 1,255,956 19,737 3,873,481 64,571 54,799 430,575 125,085 8,943 683,973 5,111,404 60,180,900 (cont'd) Road systems (2,924) (186,546)(7,025) (159,600) (791,309) (7,427) 6,047 (353,573) (6,154) - (785,262) - - (745) (88) (6,987) (363,484) 114,877 3,347,776 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Land and buildings AND EQUIPMENT f ear ended 30 June 2012 Net carrying amount at beginning of the yearAdditionsTransfers to and from other transport entities 3,646,792 59,245,725 24,271,744 553,950 1,909Transfer to and from other non-transport entities (refer to note below) - - 83,517,469 4,141 473,106 479,797 - 2,667,363 4,141 565,110 (3,578) 55,615 4,240,991 91,405,252 Reclassifications ( refer to note below)Depreciation and amortisation expense (Note 2(e))Impairment losses (28,319) (54,336) (849,936) 53,103 (744,528) (739) (6,641) (1,601,105) (1,048) (68,976) 51,316 (25,394) (56,025) (172,867) (39,418) - (16,255) (322,910) - (1,952,334) (70,758) - (126,783) (129,803) Acquisition on business combinationsNet revaluation increment less revaluation decrements *Disposals (877,148) - - 13 PROPERTY, PLANT Y Net carrying amount at end o year The reclassifications comprise mainly transfer of plant and equipment to intangible assets new buses put in service. The transfer to and from other non-transport entities include mainly the of property, plant equipment f Services Authority to Roads and Maritime on 1 November 2011 (Note 31). The revaluation decrement ($369.6m) is included in the statement of comprehensive income under other ($464.8m). Consolidated - reconciliation A reconciliation of the carrying amount each class property, plant and equipment at beginning end current

96 Transport for NSW Annual Report 2011–12 52,926 205,268 (1,844,737) 91,405,252 Plant & Equipment Total Property, 16,320 (25,047) (326,922) 4,240,991 Total 55,615 (13,510) Ferries (34,743) 565,110 Buses (186,036) 2,667,363 Rolling stock ---- (20,452) 479,797 buses Finance leased ------(72,181) 473,106 Plant and equipment reporting period is set out below. (1,500,139) Total 83,517,469 Department of Transport Financial statements Financial - - for the year ended 30 June 2012 Notes to the financial statements Maritime systems (682,924) 4,609,492 - 3,912,362 (127) - - (2,012) - (2,139) 4,006,237 Rail 24,271,744 Infrastructure Systems Plant and Equipment systems (817,215) 2,349,963 1,545,169 - 3,895,132 82,596 132,234 205,923 137,042 12,339 570,134 4,690,622 59,245,725 (cont'd) Road systems - 52,926 - - 52,926 4,995 - (5,698) - (5,698) (817) - - (276) - (1,093) (1,796) (17,676) (36,525)(34,669) (96,346) 34,602 (120,641) (41,300) - (216,987) - (23,392) (6,698) 16,320 - - (746) (1,329) (25,467) (278,979) 3,439,893 58,225,145 18,925,562 - 77,150,7073,646,792 470,707 368,015 2,647,476 465,845 58,115 4,010,158 84,600,758 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Land and buildings f AND EQUIPMENT f ear ended 30 June 2011 Depreciation and amortisation expense (Note 2(e)) Net carrying amount at start o Net revaluation increment less revaluation decrements * 96,014 (697,130) Assets held for sale Reclassification and transfers to intangible assets(Note 15) Disposals 13 PROPERTY, PLANT Y year AdditionsTransfers to and from owners (Note 31) 225,356 Net carrying amount at end o (30,596)year * Net revaluation is recognised in both the net result (Note 5) and other comprehensive income. 193,780 42,084 - 235,864 Roads and bridges transferred to and from local councils (Notes 2(f) and 3(g)) Consolidated - reconciliation A reconciliation of the carrying amount each class property, plant and equipment at beginning end previous

Financial statements 97 - - (6,662) 978,374 Total Plant & Property, Equipment - - (3,091) 884,370 Total - - - 243) (92,243) (92,243) 881,810 leased buses Finance - - 2,560 (3,091) Plant and equipment - - - 38,398 38,398 5,651 - 5,651 103,226 Total - - - Infrastructure Plant and Equipment 38,398 Rail systems ------974,053 974,053 974,053 - Department of Transport for the year ended 30 June 2012 (3,571) Notes to the financial statements 55,606 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Land and buildings (cont'd) AND EQUIPMENT t fair valuet fair value 59,177 38,398 ------ccumulated amortisation and impairmentccumulated amortisation and impairment ------(92, - - - - ccumulated depreciation and impairment ccumulated depreciation and impairment t cost t cost Parent At 1 July 2011 13 PROPERTY, PLANT A A A A Net carrying amount At 30 June 2012 A A A A Net carrying amount

98 Transport for NSW Annual Report 2011–12 - (38,901) 978,374 Total Plant & (1,008,165) Property, Equipment - (38,887) 884,370 Total (910,300) - (38,180) 881,810 (907,912) leased buses Finance - (707) (293) (15,219) (15,512) (15,515) 2,560 (2,388) Plant and equipment - - 38,398 (41,848) Total Department of Transport Financial statements Financial for the year ended 30 June 2012 Notes to the financial statements - - Infrastructure Plant and Equipment 38,398 (41,848) Rail systems - - - - (5) - (5) (5) (14) 55,606 (56,017) $'000 $'000 $'000 $'000 $'000 $'000 $'000 Land and buildings (cont'd) (Note2(e)) (3) - - expense(Note2(e)) AND EQUIPMENT cquisitions through administrative dditionsdditions 414 3,450 3,450 126 949 41,321 36,919 41,447 36,919 45,311 1,056 297,919 298,975 336,843 ear ended 30 June 2012 ear ended 30 June 2011 reconciliation of the carrying amount each class property, plant and equipment at beginning end restructuresNet revaluation increment less decrementsDepreciation / amortisation 54,972 (500) - - - - 517 - - 517 - 55,489 - (500) Net carrying amount at beginning of the year 55,606 38,398 38,398Net carrying amount at beginning of the year 2,560 881,810 884,370 199 978,374 1,479 1,479 1,694 622,071 623,765 625,443 13 PROPERTY, PLANT Y A Net carrying amount at end of year Y A A Net carrying amount at end of year Revaluation decrementsDepreciation / amortisation expense ------Disposals Transfers to and from owners (Note 31) Parent - reconciliation A current reporting period is set out below.

Financial statements 99 Department of Transport Notes to the financial statements for the year ended 30 June 2012

14 INVESTMENT PROPERTY Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Transactions with owners as owners 132,289 - - - Net gain / (loss) from fair value adjustment (Note 5) (2,823) - - - Closing balance as at 30 June - fair value 129,466 - - -

Investment properties are valued annually at fair value by an independent, professionally qualified valuer.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 The following amounts have been recognised in net result for the year: Rental Income (Note 3(d)) 8,731 - - - Direct operating expenses arising from investment properties that generated rental income (Note 2(c)) 1,742 - - - Direct operating expenses that did not generate rental income - - - -

15 INTANGIBLE ASSETS Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Intangible assets - computer systems Cost (gross carrying amount) 797,294 585,993 - 34,901 Accumulated amortisation and impairment (244,352) (275,567) - (16,963) Net carrying amount at fair value 552,942 310,426 - 17,938

Net carrying amount at beginning of the year 310,426 214,792 17,938 10,733 Additions 230,504 115,639 1,815 9,642 Reclassifications from plant and equipment (Note 13) 58,477 25,047 - - Amortisation expense (Note 2(e)) (41,921) (41,877) (720) (2,437) Acquisitions through administrative restructure 860 - (19,033) - Disposals and write offs (5,404) (3,175) - - Net carrying amount at end of year 552,942 310,426 - 17,938

100 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

16 OTHER ASSETS

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Non-current Other Assets Right to receive privately financed transport infrastructure (see below for movements) 858,880 733,439 - 32,707 Milestone advances under rollingstock Public Private Partnerships (PPP) contract 29,872 34,487 - - 888,752 767,926 - 32,707

Movement in right to receive privately financed transport infrastructure Net carrying amount at beginning of the year 733,439 590,990 32,707 32,707 Period increment - emerging right to receive (Note 3(e)) 158,146 142,449 1,285 - Transactions with owners as owners - transfer to TfNSW - - (33,992) - Revaluation decrement (32,705) - - - Net carrying amount at end of year 858,880 733,439 - 32,707

17 DEFERRED TAX ASSET

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Non-current Deferred tax asset Deferred tax asset(Note 1(m)) 97,417 74,579 - - 97,417 74,579 - -

18 PAYABLES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000 statements Financial

Current payables Accrued salaries, wages and on-costs 66,418 66,517 601 3,587 Trade Creditors 414,799 282,834 88,625 4,601 Interest 22,330 40,641 - - Accruals 1,171,905 941,626 169 150,214 Other creditors 49,474 63,391 - - 1,724,926 1,395,009 89,395 158,402

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables, are disclosed in Note 32.

Financial statements 101 Department of Transport Notes to the financial statements for the year ended 30 June 2012

19 BORROWINGS

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Borrowings Secured NSW Treasury advances repayable 2,011 1,898 - - NSW TCorp borrowings 88,184 510,854 - - NSW TCorp - Come and Go Facility 38,250 138,148 - - Finance leases (Note 25) 114,656 61,392 - 44,942 Other loans and deposits 491 396 - - 243,592 712,688 - 44,942

Non-current Borrowings Secured NSW Treasury advances repayable 6,337 8,348 - - NSW TCorp borrowings 1,081,420 968,242 - - Finance leases (Note 25) 1,496,079 1,299,025 - 836,869 Other loans and deposits 371 832 - - 2,584,207 2,276,447 - 836,869

Repayment of Borrowings

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Not later than one year 243,592 712,688 - 44,942 Between one and five years 1,169,511 1,093,342 - 214,569 Later than five years 1,414,696 1,183,105 - 622,300 Total borrowings at amortised cost 2,827,799 2,989,135 - 881,811

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables, are disclosed in Note 32.

102 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

20 EMPLOYEE BENEFITS

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Employee benefits Recreation leave 290,062 286,001 3,724 5,648 Long service leave 407,731 534,524 - - Workers compensation insurance 24,850 24,162 107 105 Payroll tax 4,212 3,458 553 689 Fringe benefits tax 131 66 45 36 Public holidays 24,175 21,696 - - Superannuation 21,854 11,154 290 118 Severance payments/redundancies 104,070 127 - - 877,085 881,188 4,719 6,596

Non-current Employee benefits Recreation leave 1,334 - - - Long service leave 292,085 47,777 - - Payroll tax 703 1 - - Workers compensation insurance 117,174 111,856 - - Superannuation 1,991,538 1,028,969 - - 2,402,834 1,188,603 - -

Defined-benefit superannuation overview

Employer contributions are made to three defined-benefit superannuation schemes administered by the SAS Trustee Corporation (STC): The State Authorities Superannuation Scheme (SASS), the State Authorities Non-Contributory Superannuation Scheme (SANCSS) and the State Superannuation Scheme (SSS), which together form the Pooled Fund. Each scheme is closed to new members and its investments are held in trust by the Pooled Fund. At least a component of the final benefit is derived from a multiple of members' salary and years of membership. All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers. statements Financial

An under funded scheme is recognised as a provision and an overfunded scheme is recognised as an asset. Details of both provisions and assets are given below. ! Recognised liability or asset at reporting date comprised the following: Minor Year ended 30 June 2012 SASS SANCSS SSS superannuation Total $'000 $'000 $'000 $'000 $'000

Under funded schemes Accrued liability 2,663,002 305,254 1,545,199 - 4,513,455 Estimated reserve account balance (1,736,408) (192,740) (573,511) - (2,502,659) Under funded schemes at the end of the year 926,594 112,514 971,688 - 2,010,796 Future service liability 170,771 86,753 36,368 - 293,892 The superannuation liabilities of $2.013bn comprises superannuation defined benefits liabilities of $2.011bn (see table above) and superannuation defined contribution liabilities of approximately $3m.

Financial statements 103 Department of Transport Notes to the financial statements for the year ended 30 June 2012

20 EMPLOYEE BENEFITS (cont'd) Minor Year ended 30 June 2011 SASS SANCSS SSS superannuation Total $'000 $'000 $'000 $'000 $'000

Under funded schemes Accrued liability 2,343,515 274,856 1,075,429 226 3,694,026 Estimated reserve account balance (1,859,529) (219,281) (575,093) - (2,653,903) Under funded schemes at the end of the year 483,986 55,575 500,336 226 1,040,123 Future service liability (166,801) (85,451) (30,861) - (283,113)

The Future Service Liability (FSL) does not have to be recognised by an employer. It is only used to determine if an asset ceiling limit should be imposed. Any prepaid superannuation asset recognised cannot exceed the total of any unrecognised past service cost and the present value of any economic benefits that may be available in the form of refunds from the plan or reductions in future contributions to the plan. Where the “surplus in excess of recovery” is zero, no asset ceiling limit is imposed.

! Number of members in superannuation schemes

Year ended 30 June 2012 SASS SANCSS SSS Total No. No. No. No.

Contributors 5,794 6,234 439 12,467 Deferred benefits - - 54 54 Pensioners 529 - 1,172 1,701 Pensions fully commuted - - 507 507 6,323 6,234 2,172 14,729

Year ended 30 June 2011 SASS SANCSS SSS Total No. No. No. No.

Contributors 6,197 6,655 458 13,310 Deferred benefits - - 60 60 Pensioners 441 - 1,111 1,552 Pensions fully commuted - - 507 507 6,638 6,655 2,136 15,429

104 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

20 EMPLOYEE BENEFITS (cont'd) ! Reconciliation of the present value of the defined benefit obligation

Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Present value of defined benefit obligations at the beginning of the year 2,360,997 278,682 1,134,248 3,773,927 Current service costs 35,293 12,083 5,151 52,527 Interest cost 119,298 13,911 58,717 191,926 Contributions by Fund participants 25,708 - 6,962 32,670 Actuarial losses / (gains) 327,053 36,444 397,582 761,079 Benefits paid (205,347) (35,866) (57,461) (298,674) Present value of defined benefit obligations at the end of the year 2,663,002 305,254 1,545,199 4,513,455

Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Fair value of Fund assets at the beginning of the year 1,877,314 223,488 617,004 2,717,806 Expected return on Fund assets 153,666 18,126 51,229 223,021 Actuarial gains / (losses) (137,068) (18,045) (45,950) (201,063) Employer contributions 22,137 5,037 1,727 28,901 Contributions by Fund participants 25,706 - 6,962 32,668 Benefits paid (205,347) (35,866) (57,461) (298,674) Fair value of Fund assets at the end of the year 1,736,408 192,740 573,511 2,502,659

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000 Financial statements Financial

Present value of defined benefit obligations at the beginning of the year 2,279,466 267,508 1,059,710 3,606,684 Current service costs 37,078 11,880 5,415 54,373 Interest cost 113,312 13,135 53,806 180,253 Contributions by fund participants 25,439 - 6,888 32,327 Actuarial gains / (losses) 38,349 (5,861) (6,223) 26,265 Benefits paid (150,129) (11,806) (44,167) (206,102) Present value of defined benefit obligations at the end of the year 2,343,515 274,856 1,075,429 3,693,800

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Fair value of Fund assets at the beginning of the year 1,818,810 208,893 566,067 2,593,770 Expected return on fund assets 149,517 17,013 47,099 213,629 Actuarial gains / (losses) (203) 149 (1,391) (1,445) Employer contributions 16,095 5,032 597 21,724 Contributions by Fund participants 25,439 - 6,888 32,327 Benefits paid (150,129) (11,806) (44,167) (206,102) Fair value of Fund assets at the end of the year 1,859,529 219,281 575,093 2,653,903

Financial statements 105 Department of Transport Notes to the financial statements for the year ended 30 June 2012

20 EMPLOYEE BENEFITS (cont'd)

! Reconciliation of the assets and liabilities recognised in the Statement of Financial Position

Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000 Fair value of partly funded defined benefit obligations at the end of year 2,663,002 305,254 1,545,199 4,513,455 Fair value of Fund assets at the end of the year (1,736,408) (192,740) (573,511) (2,502,659) Net Liability recognised in the Statement of Financial Position at end of year 926,594 112,514 971,688 2,010,796

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Fair value of partly funded defined benefit obligations at the end of year (2,343,515) (274,856) (1,075,429) (3,693,800) Fair value of Fund assets at the end of the year 1,859,529 219,281 575,093 2,653,903 Net Liability recognised in Statement of Financial Position at end of year (483,986) (55,575) (500,336) (1,039,897)

! Expense recognised in the Statement of Comprehensive Income Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000 Components recognised as expenses Current service costs 35,293 12,083 5,151 52,527 Interest cost 119,298 13,911 58,717 191,926 Expected return on Fund assets (net expenses) (153,666) (18,121) (51,229) (223,016) Superannuation expense for the year 925 7,873 12,639 21,437

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Current service costs 37,078 11,880 5,415 54,373 Interest cost 113,312 13,135 53,806 180,253 Expected return on Fund assets (net expenses) (149,517) (17,013) (47,099) (213,629) Superannuation expense for the year 873 8,002 12,122 20,997

The superannuation expense of $16m (2011: $17m) in Note 2(a) comprises the expense of $21m (2011: $21m) as per this table, the parent entity's superannuation expense of $3m (2011: $1m) assumed by the Crown less capitalised superannuation of approximately $8m (2011: $5m).

! Amount recognised in Other Comprehensive Income Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Actuarial losses / (gains) recognised in the year 464,121 54,490 443,531 962,142

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Actuarial (gains) / losses recognised in year 38,551 (6,009) (4,865) 27,677

106 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

20 EMPLOYEE BENEFITS (cont'd)

! Fund Assets

2012 2011 % %

Australian equities 28 33 Overseas equities 24 30 Australian fixed interest securities 5 6 Overseas fixed interest securities 2 3 Property 9 10 Cash 19 5 Other 13 13 100 100 ! Fair value of Fund Assets All Fund assets are invested by SAS Trustee Corporation (STC) at arm’s length through independent fund managers.

! Expected rate of return on assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.

Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Actual return on Fund assets 956 72 77 1,105 956 72 77 1,105

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000 Financial statements Financial Actual return on Fund assets 151,698 17,161 46,881 215,740 151,698 17,161 46,881 215,740

! Valuation method and principal actuarial assumptions at the Statement of Financial Position date (a) Valuation method The Project Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

(b) Economic assumptions 2012 2011 % p.a. % p.a. Salary increase rate (excluding promotional increases) 2.5 3.5 Rate of CPI increase 2.5 2.5 Expected rate of return on assets 8.6 8.6 Discount rate 3.1 5.3 (c) Demographic assumptions The demographic assumptions at 30 June 2012 are those that were used in the 2009 triennial actuarial valuation. The triennial review report is available from the NSW Treasury website.

Financial statements 107 Department of Transport Notes to the financial statements for the year ended 30 June 2012

20 EMPLOYEE BENEFITS (cont'd)

! Funding arrangements for employer contributions (a) Deficit The following is a summary of the financial position of the Fund calculated in accordance with AASB 25.

Year ended 30 June 2012 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Accrued benefits 2,135,184 257,202 847,217 3,239,603 Net market value of Fund assets (1,757,555) (194,169) (577,056) (2,528,780) Net deficit / (surplus) 377,629 63,033 270,161 710,823

Year ended 30 June 2011 SASS SANCSS SSS Total $'000 $'000 $'000 $'000

Accrued benefits 2,094,096 249,547 772,168 3,115,811 Net market value of Fund assets (1,859,529) (219,281) (575,093) (2,653,903) Net deficit 234,567 30,266 197,075 461,908

(b) Contributions recommendations

Year ended 30 June 2012 SASS SANCSS SSS % p.a. % p.a. % p.a.

Recommended contributions rates for the reporting entity were: 9 9 9 9 9 9

Year ended 30 June 2011 SASS SANCSS SSS % p.a. %p.a. %p.a.

Recommended contributions rates for the reporting entity were: 9 9 9 9 9 9

(c) Funding method The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.

(d) Economic assumptions 2012 2011 % p.a. % p.a. Weighted average assumptions adopted for the last actuarial review Expected rate of return on Fund assets backing current pension liabilities 8.3 8.3 Expected rate of return on Fund assets backing other liabilities 7.3 7.3 Expected salary increase rate 4.0 4.0 Expected rate of CPI increase 2.5 2.5

! Nature of asset / liability If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligations.

108 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

21 OTHER PROVISIONS

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Other provisions Airport Line asset replacement 1,340 719 - - Ballast disposal 5,684 14,562 - - Land and buildings remediation 11,967 15,131 - - Land tax and related charges - 511 - - Lease make good costs 5,356 3,522 - - Legal and related claims 10,544 12,660 - - Property reimbursement claims 30 600 - - Marine damage claims 2 23 - - Marine hull damage 46 214 - - Public liability claims 7,350 4,751 - - Quarry restoration 1,717 - - - Other 10,619 7,962 - - 54,655 60,655 - -

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Non-current other provisions Airport Line asset replacement 8,128 7,955 - - Ballast disposal 12,522 - - - Land and buildings remediation 53,433 49,207 - - Lease make good costs 13,815 12,646 - - Marine damage claims 2 23 - - Marine hull damage 12 54 - - Public liability claims 92 4,052 - - Other 3,763 4,234 - - 91,767 78,171 - -

Movements in other provisions Financial statements Financial Movements in each class of provision during the financial year, other than employee benefits are set out below:

Airport Line Land and Legal and asset Ballast buildings related Lease make replacement disposal remediation claims good Others Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 Consolidated

2012 Carrying amount at the beginning of year 8,674 14,562 64,338 12,660 16,915 21,677 138,826 Increase in provisions - 8,325 6,665 6,546 2,462 7,639 31,637 Amounts used (272) (3,194) (6,342) (6,709) - (5,917) (22,434) Unused amounts reversed - (748) - (1,952) - (789) (3,489) Interest expense (refer to note below) 1,067 (739) 739 - (206) 1,022 1,883 Carrying amount at end of financial year 9,469 18,206 65,400 10,545 19,171 23,632 146,423

The interest expense ($6.5m) in finance costs (Note 2(g)) comprises interest expense on the above provisions ($1.9m) and on workers' compensation provision ($4.6m).

Financial statements 109 Department of Transport Notes to the financial statements for the year ended 30 June 2012

21 OTHER PROVISIONS (cont'd)

Airport Line asset replacement

The provision $9m (2010-11 $9m) recognises the reporting entity's contractual obligation to fund the replacement of major track and tunnel assets of the Airport Line by the line's maintenance contractor during the term of the contractor to 2030. Any unused balance of the provision remaining in 2030 will be shared equally with the maintenance contractor.

The liability at year end is the unused portion of the contractually specified maximum amount to be provided. The quantum and timing of payments are inherently uncertain as they are based on unpredictable future claims by the maintenance contractor. The provision has been discounted to a present value that reflects the time value of money.

Ballast disposal

The provision $18m (2010-11 $15m) recognises the reporting entity's legal obligation in relation to the disposal of non recyclable landfill and materials arising from ballast recycling operations.

The liability was assessed at 30 April 2012 by management after investigation of stockpiles at the Chullora site. The liability is inherently uncertain due to the quantum and timing of future disposals.

Land and buildings remediation

The provision $65m (2010-11 $64m) comprises remediation of asbestos $32m (2010-11 $32m) and of contaminated land $33m (2010-11 $32m). In response to the identification of asbestos contamination in a railway station in March 2006, the reporting entity initiated during 2005 / 06 a program of hazardous materials surveys to identify the full extent of contamination and remedial action required in stations. During 2006 / 07 the program was extended to encompass other hazardous materials and operational buildings including signal boxes, depots and maintenance centres as well as rolling stock.

RailCorp will undertake incident management and remediation funded by this provision out to 30 June 2017.

Legal claims

This provision recognises claims against the reporting entity arising from prosecutions or fines in relation to legislative or contractual breaches or other matters. The liability at year end was assessed by management by reviewing individual claims. The liability is inherently uncertain due to disputes over the existence or quantum of individual claims.

Others

Others include provisions for various items such as public liability, income tax provision etc. The liability at period end was assessed by management and is inherently uncertain due to disputes over the existence or quantum of individual claims.

22 OTHER LIABILITIES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current Other liabilities Liability to Consolidated Fund (Note 3 (a) and b)) 2,270 2,784 - 2,784 Statutory creditors 20,845 17,788 - - Sydney Harbour Tunnel tax liabilities 1,919 1,876 - - Holding accounts 99,428 90,748 - - Lease incentive 1,886 2,297 - - Deferred revenue - Private sector provided infrastructure reimbursement 12,179 12,179 - - Income received in advance 72,945 38,680 - - 211,472 166,352 - 2,784

110 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

22 OTHER LIABILITIES (cont'd)

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Non-current Other liabilities Sydney Harbour Tunnel tax liabilities 23,688 23,018 - - Deferred revenue - Private sector provided infrastructure reimbursement 283,756 295,935 - - Unearned rent on M4 and M5 motorways 6,898 7,578 - - Income received in advance 238,995 15,281 - - Other 45 45 - 45 553,382 341,857 - 45

23 FINANCIAL LIABILITIES AT FAIR VALUE

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Current derivative financial instruments Derivative financial instruments 13,811 14,209 - - 13,811 14,209 - -

Non-current derivative financial instruments Derivative financial instruments 2,355 2,389 - - 2,355 2,389 - -

Refer to note 10 above.

24 DEFERRED TAX LIABILITY

Consolidated Parent Financial statements Financial 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Non-current deferred tax liability Deferred tax liability (Note 1(m)) 67,792 64,002 - - 67,792 64,002 - -

25 COMMITMENTS FOR EXPENDITURE

(a) Capital Commitments Aggregate capital expenditure for the acquisition of property, plant and equipment contracted for at reporting date and not provided for:

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Not later than one year 1,609,060 3,013,773 - 1,754 Later than one year and not later than five years 1,898,094 2,904,420 - - Later than five years - 85,653 - - Total (including GST) 3,507,154 6,003,846 - 1,754

Financial statements 111 Department of Transport Notes to the financial statements for the year ended 30 June 2012

25 COMMITMENTS FOR EXPENDITURE (cont'd)

(b) Operating Lease Commitments Future non-cancellable operating lease rentals not provided for and payable

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Not later than one year 155,341 190,227 - 10,693 Later than one year and not later than five years 219,626 298,165 - 27,411 Later than five years 59,829 136,953 - - Total (including GST) 434,796 625,345 - 38,104

Operating leases include office accommodation and plant and equipment.

Input tax on all commitments estimated at $358m (2011: $602m) (parent entity: $Nil (2011: $3m)) will be recouped from the Australian Taxation Office.

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

(c) Finance Lease Commitments Minimum lease payment commitments in relation to finance leases payable as follows:

Not later than one year 192,204 143,345 - 104,979 Later than one year and not later than five years 661,468 633,008 - 419,917 Later than five years 2,212,459 1,695,402 - 812,250 Minimum lease payments 3,066,131 2,471,755 - 1,337,146 Less: future finance charges 1,455,396 1,111,338 - 455,335

Present value of minimum lease payments 1,610,735 1,360,417 - 881,811

The present value of finance lease commitments is as follows: Not later than one year 114,656 61,392 - 44,942 Later than one year and not later than five years 396,902 345,784 - 214,570 Later than five years 1,099,177 953,241 - 622,299 1,610,735 1,360,417 - 881,811

Classified as: Current borrowings(Note 19) 114,656 61,392 - 44,942 Non-current borrowings (Note 19) 1,496,079 1,299,025 - 836,869 1,610,735 1,360,417 - 881,811

(d) Other Public and Private Partnerships contract commitments

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Not later than one year 107,018 20,388 - - Later than one year and not later than five years 843,161 823,911 - - Later than five years 7,372,332 8,106,135 - - Total (including GST) 8,322,511 8,950,434 - -

112 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

26 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The parent entity had no contingent liabilities as at 30 June 2012 (2010-11 nil). The reporting entity had contingent liabilities and contingent assets at 30 June 2012 in respect of:

(i) Public Private Partnership arrangements

Rail Corporation has certain obligations under the contract for the Rollingstock Public Private Partnership (PPP) and the NSW Government guarantees the performance of those obligations. However, there is no expectation that those guarantees will ever be exercised.

The Roads and Maritime Services has certain obligations under contracts with private sector parties with the performance of these obligations guaranteed by the NSW Government. The current guarantees outstanding are for the Sydney Harbour Tunnel, the M2 Motorway, the Eastern Distributor, the Cross City Tunnel, the Western Sydney Orbital and the Lane Cove Tunnel. There is no reason to believe that these guarantees are ever to be exercised.

(ii) Court actions

The 2010-11 consolidated financial statements reported that the Public Transport Ticketing Corporation and the contractor of the former Tcard project were involved in a court case. In February 2012 the matter was settled out of court. Under the settlement terms the Corporation retained previously recovered amounts ($27m)and received an additional cash payment ($5m). All pending court cases were discontinued.

(iii) Others

The Roads and Maritime Services has a number of contractual and compulsory property acquisition disputes with an estimated contingent liability of $87m (2010-11 $109m).

Rail Corporation, by virtue of its operations, has a range of possible contamination in land and buildings. Rail Corporation is engaged in an ongoing process of identifying necessary remediation of land and buildings the final amount of which is contingent on further investigation and cannot be accurately calculated at the date of preparation of these financial statements. Rail Corporation has provided for land and buildings remediation where there is a legal or constructive obligation to undertake remediation and the cost of which can be reliably estimated.

In addition there are various claims for contractual damages occurring through the ordinary course of business existed at balance date. The existence or quantum of each claim is usually disputed and the outcome cannot be measured reliably. Financial statements Financial (iv) Guarantees and performance bonds

At reporting date the reporting entity holds guarantees and performance bonds totalling $95m (2010-11 $159m).

(v) Sydney Metro projects

At the time of the Government 's decision to stop work on its metro projects, Sydney Metro had initiated a structured property acquisition programme for Metro Network Stage 1. Whilst seven properties had been acquired, a number of other properties and associated leaseholds had reached varying stages of acquisition at the time of Sydney Metro ceasing negotiations. As part of its February 2010 decision, the NSW Premier announced that, in cases where the acquisition of properties was not completed, the NSW Government would put processes in place to assist property owners and tenants who had incurred legal, valuation and other costs relating to property acquisition.

A detailed assessment process was approved by the NSW Government to assess cost reimbursement claims from affected parties, applying assessment principles consistent with the Land Acquisition (Just Terms Compensation) Act. As at 30 June 2012, 81 claims totalling $12.74m had been finalised. A provision of $0.03m to cover a further claim that has certainty about the settlement amount has been included in Sydney Metro's financial statements (2011: $.6m). In addition to these items, Sydney Metro has received a further 2 claims for which no provision has been made since the amounts that may become payable cannot be estimated reliably. These claims are expected to be resolved during the next reporting period.

Whilst a significant number of affected parties have already lodged claims, under the relevant legislation remaining directly affected property and leasehold owners have up to 3 years from the rescission of the acquisition notice to lodge a claim.

Financial statements 113 Department of Transport Notes to the financial statements for the year ended 30 June 2012

27 BUDGET REVIEW OF THE PARENT ENTITY AND TRANSPORT FOR NEW SOUTH WALES

The budget review is for the Department of Transport, Transport for New South Wales and Transport Service of New South Wales as the financial performance of these entities is aggregated for Treasury reporting purposes. The aggregated financial performance of these entities is shown in Note 31.

Net result

The actual net result for the 12 months ended 30 June 2012 was $277.9m compared to the budget of $216.3m, an under spending of $61.6m mainly due to higher revenue partly offset by the increase in the costs of operating Transport for NSW. The result was significantly impacted by the administrative restructure which included the transfer of a number of functions to Transport for NSW from the various transport operating agencies.

Employee related expenses and other operating expenses were in total $131.6m higher than budget due to the transfer of certain functions to Transport for NSW from various transport operating agencies.

Grants and subsidies were $282.3m lower than budget. This was mainly due to lower than expected Commonwealth funding for Roads and Maritime Services and the transfer of Sydney Light Rail Extension expenditure to capital.

Other expenses were $307.6m higher than budget mainly due to expenditure incurred in relation to infrastructure projects including North West Rail Link, South West Rail Link and other rail projects.

Sale of goods and services revenue was $309.9m higher than budget mainly due to recoupment from RailCorp for expenditure related to infrastructure projects including North West Rail Link, South West Rail Link and other rail projets.

Recurrent appropriations were $333.4m lower than budget. This was mainly due to the lower than expected Commonwealth funding for Roads and Martime Services and the transfer of Sydney Light Rail Exention expenditure to capital.

Capital appropriations were $48.9m higher than budget mainly due to the transfer of Sydney Light Rail Extension expenditure to capital.

Assets and liabilities

The main variations in the Statement of Financial Position are set out below:

Total Assets were higher than budget by $758.3m mainly due to the transfer of assets including cash, work in progress and properties to Transport for NSW from other transport entities including Transport Construction Authority and the Public Transport Ticketing Corporation.

Total Liabilities were higher than the budget by $545.9m mainly due to the transfer of liabilities in particular borrowings to Transport for NSW from other transport entities uncluding the Transport onstruction Authority and the Public Transport Ticketing Corporation.

Cash flows

The closing cash balance was $260.8m higher than budget. This was mainly due to administrative restructures involving a number of transport entities.

A variation was also evidenced in total payments of $161.4m which was mainly due to higher grants and subsidies ($91.4m) and other payments ($73.4m).

There was also a variation in total receipts of $197.7m which was mainly due to an increase in revenue from sales of goods and services ($477.1m), which was partly offset by a decrease in the recurrent and capital appropriation ($284.4m).

114 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

28 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET RESULT

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Net cash inflows from operating activities 4,976,674 4,043,061 86,901 137,720 Depreciation and amortisation (1,994,255) (1,886,614) (16,235) (41,339) Non-cash revenue and expenses 270,792 196,584 1,285 (330) Derecognition, impairment and write off assets (658,068) (234,600) - - Revaluation decrement of assets (799,798) (13,272) - (500) (Decrease) / increase in receivables, inventories and other assets 405,469 (104,132) 912 92,812 Increase / (decrease) in creditors and provisions (615,812) 61,015 (45,834) (133,353) Net result 1,585,002 2,062,042 27,029 55,010

29 NON-CASH FINANCING AND INVESTING ACTIVITIES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Non-cash investing activities Acquisition of assets free of charge (transactions with owners as owners) 1,332,612 205,266 (1,008,165) 55,959 Plant and equipment acquired by finance lease 397,784 111,782 41,321 259,739 Roads transferred from councils 2,027 98,305 - - Roads transferred to councils (25,066) (45,379) - - Value of emerging interests in Private Sector Provided Infrastructure 161,949 142,449 1,285 - Non-cash financing activities Financial lease liabilities in respect of the acquisition of property, plant and equipment (397,784) (111,782) (907,912) (259,739) statements Financial Employee entitlements and liabilities assumed by the Crown Entity (8,109) (3,323) (3,437) (2,579) Borrowings transferred from a non-transport entity (47,706) - - - 1,415,707 397,318 (1,876,908) 53,380

30 ADMINISTERED ASSETS AND LIABILITIES

Consolidated Parent 2012 2011 2012 2011 $'000 $'000 $'000 $'000

Administered Assets Cash 26,643 20,930 - 330 Total Administered Assets 26,643 20,930 - 330

Administered Liabilities Payables 305,707 315,803 - 330 Total Administered Liabilities 305,707 315,803 - 330

Financial statements 115 Department of Transport Notes to the financial statements for the year ended 30 June 2012

31 ADMINISTRATIVE RESTRUCTURE

On 1 November 2011 the Department of Transport (the parent entity) transferred its functions, roles, assets and liabilities at fair value to Transport for NSW (Note 1(a)). At the same time Transport Service of New South Wales was established to provide personnel services to Transport for NSW.

The tables below provide an overview of the aggregated financial position of the Department of Transport (the parent entity), Transport for NSW and Transport Service of New South Wales. Transactions between the entities have been eliminated for the purpose of these tables. Aggregated Statement of Comprehensive Income for the above entities showing actuals and budget for the year ended 30 June 2012: DoT/TfNSW/ TS Actual Budget 2012 2012 $'000 $'000

Expenses excluding losses Operating expenses Employee related expenses 237,941 201,967 Other operating expenses 150,702 55,082 Maintenance 1,271 - Depreciation and amortisation 50,913 52,453 Grants and subsidies 7,933,077 8,215,430 Finance costs 64,896 66,063 Other expenses 1,511,077 1,203,441 Total expenses excluding losses 9,949,877 9,794,436 Less: Revenue Recurrent appropriations 9,378,797 9,712,165 Capital appropriations 267,543 218,595 Sale of goods and services 330,706 20,740 Investment revenue 10,726 5,736 Retained taxes, fees and fines 2,165 2,042 Grants and contributions 65,932 45,406 Acceptance by the Crown Entity of employee benefits and other liabilities 8,110 2,390 Personnel service revenue 159,992 - Other revenue 3,804 3,696 Total Revenue 10,227,775 10,010,770 Gain / (loss) on disposal (7) - Net result 277,891 216,334

DOT = Department of Transport

TfNSW = Transport for NSW

TS = Transport Service of New South Wales

116 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

31 ADMINISTRATIVE RESTRUCTURE (cont'd)

Aggregated Statement of Financial Position for the above entities showing actuals and budget as at 30 June 2012 DoT/TNSW/ TS Actual Budget 2012 2012 $'000 $'000 ASSETS

Current assets Cash and cash equivalents 329,109 68,350 Receivables 354,370 83,757 Non-current assets held for sale 9,285 - Total current assets 692,764 152,107

Non-current assets Other financial assets 21,076 365 Property plant and equipment 1,335,794 1,295,684 Intangible assets 171,341 14,624 Other assets 36,511 36,402 Total non-current assets 1,564,722 1,347,075 Total assets 2,257,486 1,499,182

LIABILITIES

Current liabilities Payables 413,442 122,184 Borrowings 171,693 30,000 Employee benefits 15,641 4,294 Other 2,270 - Total current liabilities 603,046 156,478

Non-current liabilities statements Financial Borrowings 1,050,648 951,312 Other 45 45 Total non-current liabilities 1,050,693 951,357 Total liabilities 1,653,739 1,107,835 Net assets 603,747 391,347

EQUITY Acumulated funds 603,747 391,347 Total equity 603,747 391,347

Financial statements 117 Department of Transport Notes to the financial statements for the year ended 30 June 2012

31 ADMINISTRATIVE RESTRUCTURE (cont'd)

Aggregated Statement of Cash Flows for the above entities showing actuals and budget as at 30 June 2012 DoT/TNSW/ TS Actual Budget 2012 2012 $'000 $'000 Cash flows from operating activities

Payments Employee related/Personnel service expenses (217,339) (203,834) Grants and subsidies (8,286,130) (8,194,745) Finance costs (64,888) (66,063) Bus payments (1,205,999) (1,221,715) Other (253,461) (180,086) Total Payments (10,027,817) (9,866,443)

Receipts Recurrent appropriation 9,378,797 9,712,165 Capital appropriation 267,543 218,595 Cash transfers to the Consolidated Fund (514) (2,784) Sales of goods and services/Personnel services 625,294 148,220 Grants and contributions 49,010 47,458 Retained taxes, fees and fines 2,165 2,101 Interest received 7,023 5,867 Total Receipts 10,329,318 10,131,622

Net cash inflows from operating activities 301,501 265,179

Cash flows from investing activities Purchases of land and buildings, plant and equipment and infrastructure systems (247,067) (218,595) Purchase of finance leased assets (48,003) (48,352) Advances made (472) - Purchases of investments (20,004) - Net cash outflows from investing activities (315,546) (266,947)

Net (decrease)/increase in cash (14,045) (1,768) Opening cash and cash equivalents 70,118 70,118 Cash transfer in through administrative restructure 273,036 - Closing cash balance 329,109 68,350

118 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

31 ADMINISTRATIVE RESTRUCTURE (cont'd)

As disclosed in Note 1 (a) above the Roads and Maritime Services took over the functions, roles, assets and liabilities of the former Roads and Traffic Authority and the Maritime Services Authority. Details of the assets and liabilities transferred (under this administrative restructure) are provided in the table below.

Consolidated Parent 2012 2011 2012 2011 Transfer in Transfer in Transfer out Transfer in $'000 $'000 $'000 $'000

Assets Current assets Cash and cash equivalents 57,398 - 42,125 - Trade and other receivables 32,652 - 125,662 470 Inventories 155 - - - Financial assets at fair value through profit or loss 43,239 - - - Total current assets 133,444 - 167,787 470

Non-current assets Trade and other receivables 6,552 - 557 - Property, plant and equipment 1,510,171 205,268 1,008,322 55,489 Investment property 132,289 - - - Intangible assets 860 - 18,876 - Other assets - - 33,992 - Total non-current assets 1,649,872 205,268 1,061,747 55,489

Total assets 1,783,316 205,268 1,229,534 55,959

Liabilities Current liabilities Trade and other payables 49,095 - 119,535 - Interest bearing borrowings 22,576 - 47,704 - Provisions 20,414 - - - Total current liabilities 92,085 - 167,239 - Financial statements Financial Non-current liabilities Trade and other payables 243,000 - 45 - Interest bearing borrowings 25,130 - 860,208 - Provisions 3,283 - - - Total non-current liabilities 271,413 - 860,253 -

Total liabilities 363,498 - 1,027,492 -

Net assets transferred to the Transport Group 1,419,818 205,268 202,042 55,959

Transfers in 2012 comprise mainly transfers of net assets from the former Maritime Services Authority of NSW ($1.4bn) and sundry transfers ($3.6m). Parent transfers out in 2012 comprise mainly transfer of net assets from Department of Transport to Transport for NSW.

Financial statements 119 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS

The reporting entity’s principal financial instruments are outlined below. These financial instruments arise directly from the reporting entities operations or are required to finance the reporting entity’s operations.

The reporting entity does not enter into trade financial instruments, including derivative financial instruments, for speculative purposes. Derivatives are exclusively used for hedging purposes.

The operational activities of the reporting entity expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate risk currency risk, and commodity price risk in respect of distillate and electricity purchases). The main risks arising from these financial instruments are outlined below together with the reporting entity’s objectives, policies and processes for measuring and managing risk.

Methods used to measure risk include sensitivity analysis in the case of interest rate, foreign exchange and other commodity price risks, and an ageing analysis for credit risk. Further quantitative and qualitative disclosures are included throughout these financial statements.

The Director General and each of the Chief Executives of the controlled entities have overall responsibility for the establishment and oversight of risk management and review and determine policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the reporting entity, to set limits and to monitor risks. Compliance with these policies is reviewed by internal audit.

(a) Financial instrument categories

Financial Assets Note Category Carrying Carrying Amount Amount Consolidated 2012 2011 $'000 $'000 Class: Cash and cash equivalents 7 N/A 837,466 1,106,128 Receivables1 8 Loans and receivables (at amortised cost) 486,720 222,784 Financial assets at fair value 10 At fair value through profit or loss - designated 48,106 - upon initial recognition Other financial assets 12 Loans and receivables (at amortised cost) 145,013 122,005 Financial assets at fair value Fair value through profit or loss - held for trading 816 4,735 1,518,121 1,455,652

Financial Liabilities Note Category Carrying Carrying Amount Amount Consolidated 2012 2011 $'000 $'000 Class: Payables2 18-22 Financial liabilities measured at amortised cost 1,850,302 1,441,860

Borrowings 19 Financial liabilities measured at amortised cost 2,827,798 2,989,135 Financial liabilities at fair Fair value through profit or loss - held for trading 16,166 16,598 value 4,694,266 4,447,593

120 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS (cont'd)

Financial Assets Note Category Carrying Carrying Amount Amount Parent 2012 2011 $'000 $'000 Class: Cash and cash equivalents 7 N/A 93,856 70,118 Receivables1 8 Loans and receivables (at amortised cost) 258 110,670 Other financial assets 12 Loans and receivables (at amortised cost) - 586 94,114 181,374

Financial Liabilities Note Category Carrying Carrying Amount Amount Parent 2012 2011 $'000 $'000 Class: Payables2 18 Financial liabilities measured at amortised cost 89,397 158,439 Borrowings 19 Financial liabilities measured at amortised cost - 881,810 89,397 1,040,249

1 Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7)

2 Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7)

(b) Credit Risk

Credit Risk arises where a debtor or counterparty does not complete their obligations, resulting in financial risk to the Reporting Entity.

Credit risk can arise from financial assets of the reporting entity, including cash and cash equivalents, derivative financial instruments, deposits with banks and NSW TCorp, as well as credit exposure to customers, including outstanding receivables and committed transactions. The reporting entity holds bank guarantees for significant customers as well as property bonds for some leased premises. The reporting entity has not granted any financial guarantees.

Credit risk policy is aimed at minimising the potential for counter party default. Financial statements Financial Credit risk associated with the reporting entity’s financial assets, other than receivables, is managed through the sound selection of counterparties and establishment of minimum credit rating standards. All debt management and investment activities are undertaken with NSW TCorp, which is guaranteed by the NSW Government.

Credit risk impacts on the following financial instruments which are discussed below:

Cash

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthly average NSW TCorp 11am unofficial cash rate, adjusted for a management fee to NSW Treasury.

Receivables - trade debtors

All trade debtors are recognised as amounts receivable at balance date. Collectibility of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the reporting entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors. Sales are generally made on 30 day terms.

The reporting entity is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Based on past experience, debtors that are not past due (2012: $393m; 2011: $183m; parent entity 2012: $nil; 2011: $100m) and not more than 3 months overdue (2012: $49m; 2011: $21m; parent entity - $nil; 2011: $2m) are not considered impaired. These debtors represent 97% (2011: 94%) of the total trade debtors.

Financial statements 121 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS (cont'd)

The only financial assets that are past due or impaired are ''sales of goods and services'' in the ''receivables'' category of the statement of financial position.

Past due but not Considered Total1,2 impaired1,2 impaired1,2 $'000 $'000 $'000 Consolidated 2012 < 3 months overdue 49,304 48,634 670 3 months – 6 months overdue 9,942 9,040 902 > 6 months overdue 11,723 6,924 4,799 70,969 64,598 6,371

Past due but not Considered Total1,2 impaired1,2 impaired1,2 $'000 $'000 $'000 Consolidated 2011 < 3 months overdue 21,081 20,530 551 3 months – 6 months overdue 10,041 9,088 953 > 6 months overdue 8,630 4,016 4,614 39,752 33,634 6,118

Past due but not Considered Total1,2 impaired1,2 impaired1,2 $'000 $'000 $'000 Parent 2012 < 3 months overdue --- 3 months – 6 months overdue --- > 6 months overdue ------

Past due but not Considered Total1,2 impaired1,2 impaired1,2 $'000 $'000 $'000 Parent 2011 < 3 months overdue 1,722 1,722 - 3 months – 6 months overdue 7,952 7,952 - > 6 months overdue 1,135 1,135 - 10,809 10,809 -

1 Each column in the table reports ''gross receivables''. 2 The aging analysis excludes receivables that are not past due and not impaired. Therefore the total will not reconcile to the receivables total recognised in the Statement of Financial Position.

122 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS (cont'd)

Derivatives

Only two entities have undertaken both forward exchange currency swaps and commodity swaps, being Rail Corporation and the State Transit Authority. The risks associated with these arrangements are mitigated by only entering into arrangements with reputable, well established financial institutions with high level credit ratings.

The reporting entity held derivative financial assets $.816m (2010-11: $4.735m) and derivative financial liabilities $16.166m (2010-11: $16.598m). Further details on derivates are provided in Notes 10 and 23.

Other financial assets

The repayment of the Sydney Harbour Tunnel loan ranks behind all creditors to be paid. Redemption of the M2 and Eastern Distributor promissory notes is dependent upon counterparties generating sufficient cash flows to enable the face value to be repaid.

(c) Liquidity risk

Liquidity Risk is the risk that the reporting entity will be unable to meet its payment obligations when they fall due. The reporting entity continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances.

The reporting entity has access to credit facilities with NSW TCorp of $1,838 million (2011: $1,834 million) of which $389 million (2011: $787 million) had been used at reporting date. Financial statements Financial

Financial statements 123 - 1,432,414 1,825,031 1,842,890 $'000 > 5 yrs - 1,173,559 1,355,603 1,360,978 $'000 1-5 yrs 16,166 802,290 2,104,947 2,221,090 $'000 < 1 yr - 16,166 1,883,522 1,442,034 $'000 bearing Non-interest - 263,850 506,563 506,563 Rate $'000 Variable Interest - Interest Rate Exposure Maturity Dates Department of Transport 2,563,548 3,476,361 3,476,361 Rate for the year ended 30 June 2012 $'000 Notes to the financial statements Fixed Interest s 4,710,920 5,424,958 3,982,924 $'000 Nominal Amount 6.80 2,827,398 2,563,548 263,850 - 244,478 1,169,512 1,413,408 6.14 Rate Average Weighted Effective Int. sis and interest rate exposure of financial liabilitie y Anal y Consolidated 2012 Payables: Trade creditors and accrualsBorrowings: NSW TCorp borrowings and finance leases Derivatives: - 1,867,356 - - 16,166 - 1,867,356 1,844,303 4,047 19,006 Maturit Consolidated 2011 Payables: Trade creditors and accrualsNSW TCorp borrowings and finance leases - 1,442,034 - - 1,442,034 1,418,800 5,375 17,859 32 FINANCIAL INSTRUMENTS (cont'd)

124 Transport for NSW Annual Report 2011–12 - - 622,298 622,298 $'000 > 5 yrs - - 214,570 214,570 $'000 1-5 yrs - 89,397 44,942 203,344 $'000 < 1 yr - - 89,397 158,402 $'000 bearing Non-interest - - - - Rate $'000 Variable Interest - - Interest Rate Exposure Maturity Dates Department of Transport Financial statements Financial 881,810 881,810 Rate for the year ended 30 June 2012 $'000 Notes to the financial statements Fixed Interest 89,397 1,040,212 $'000 Nominal Amount -- 7.37 881,810 Rate Average Weighted Effective Int. Parent 2012 Payables: Trade creditors and accrualsBorrowings: NSW TCorp borrowings and finance leases - 89,397 - - 89,397 89,397 - - Parent 2011 Payables: Trade creditors and accrualsBorrowings: NSW TCorp borrowings and finance leases - 158,402 - - 158,402 158,402 - - 32 FINANCIAL INSTRUMENTS (cont'd)

Financial statements 125 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS (cont'd)

(d) Market risk

Market risk relates to fluctuations in the fair value of future cash flows of financial instruments because of changes in market prices. This applies to the reporting entity’s foreign exchange, interest rate and commodity price hedging instruments.

Sensitivity analysis on market risk is based on a reasonably possible price variability taking into account the economic environment in which the reporting entity’s operates and the time frame for assessment, that is, until the end of the next reporting period. The sensitivity analysis is based on financial instruments held at the balance date. The analysis assumes that all other variables remain constant.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information provided below, for interest rate risk and other price risk including currency movements. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the reporting entity operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the balance date. The analysis is performed on the same basis for 2010 and assumes that all other variables remain constant.

The reporting entity is exposed to market risks in respective of

(i) Interest rate risk

Exposure to interest rate risk arises primarily through the reporting entity’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW Treasury Corporation (NSW TCorp).

The reporting entity’s s exposure to interest rate risk is set out in the table below. Impact of 1% Decrease Impact of 1% Increase Profit Equity Profit Equity Carrying Consolidated Amount $'000 $'000 $'000 $'000 2012 Financial assets: Cash and cash equivalents 837,466 (6,661) (6,661) 6,661 6,661 Receivables 486,720 ---- Other financial assets 145,013 ---- Financial assets at fair value 48,922 (477) (477) 477 477 Financial liabilities: Payables (1,850,302) ---- Borrowings (2,827,798) 17,789 17,789 (17,789) (17,789) Financial liabilities at fair value (16,166) - - - - Net financial liabilities (3,176,145) 10,651 10,651 (10,651) (10,651)

2011 Financial assets: Cash and cash equivalents 1,106,128 (11,323) (11,323) 11,323 11,323 Receivables 222,784 ---- Other financial assets 122,005 ---- Financial assets at fair value 4,735 ---- Financial liabilities: Payables (1,441,860) ---- Borrowings (2,989,135) 7,058 7,058 (7,058) (7,058) Financial liabilities at fair value (16,598) - - - - Net financial liabilities (2,991,941) (4,265) (4,265) 4,265 4,265

126 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS (cont'd) Impact of 1% Increase Impact of 1% Decrease Profit Equity Profit Equity Carrying Parent Amount $'000 $'000 $'000 $'000 2012 Financial assets: Cash and cash equivalents 93,856 (562) (562) 562 562 Receivables 258 ---- Other financial assets - ---- Financial liabilities: Payables (89,397) ---- Borrowings - - - - - Net financial assets 4,717 (562) (562) 562 562

2011 Financial assets: Cash and cash equivalents 70,112 (1,384) (1,384) 1,384 1,384 Receivables 110,670 ---- Other financial assets 586 ---- Financial liabilities: Payables (158,439) ---- Borrowings (881,810) - - - - Net financial liabilities (858,881) (1,384) (1,384) 1,384 1,384

(ii) Other price risk - NSW TCorp Hour-Glass facilities

Exposure to other price risk primarily arises through the investment in the NSW TCorp Hour-Glass Investment facilities which are held for strategic rather than trading purposes. The reporting entity has no direct equity investments and holds units in the following Hour-Glass Investment Trusts:

Facility Investment Sectors Investment 2012 2011 Horizon $'000 $'000 Consolidated

Cash facility Cash, money market instruments Up to 1.5 years 594,293 917,963 statements Financial Strategic Cash Cash, money market and other interest 1.5 years to 3 years 4,929 - facility rates instruments Medium-term Cash, money market instruments, 3 years to 7 years 32,167 - growth facility Australian bonds, listed property, and Australian and International shares Long-term growth Cash, money market instruments, 7 years and over 11,010 - facility Australian bonds, listed property, and Australian and International shares

The unit price of each facility is equal to the total fair value of the net assets held by the facility divided by the total number of units on issue for that facility. Unit prices are calculated and published daily.

NSW TCorp is the trustee for each of the above facilities and is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, NSW TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. However, NSW TCorp acts as manager for part of the Cash Facility. A significant portion of the administration of the facilities is outsourced to an external custodian.

Investment in the Hour-Glass facilities limits the reporting entity’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments.

NSW TCorp provides sensitivity analysis information for each of the Investment facilities, using historically based volatility information. The NSW TCorp Hour-Glass Investment facilities are designated at fair value through profit and loss and, therefore, any change in unit price impacts directly on net result (rather than equity). A reasonably possible change is based on the percentage change in unit price (as advised by NSW TCorp) multiplied by the redemption value as at 30 June each year.

Financial statements 127 Department of Transport Notes to the financial statements for the year ended 30 June 2012

32 FINANCIAL INSTRUMENTS (cont'd)

The impact on the net result as a result of changes in the unit prices of the investments is not considered to be material. (e) Fair value compared to carrying amount

Financial instruments are generally recognised at cost, with the exception of the NSW TCorp Hour-Glass facilities and derivatives, which are measured at fair value through profit or loss. As discussed, the value of the Hour-Glass Investments is based on the reporting entity’s share of the value of the underlying assets of the facility, based on the market value. All of the Hour-Glass facilities are valued using “redemption” pricing.

The fair value of financial instruments approximates their carrying amounts as disclosed in the Statement of Financial Position at reporting date.

(f) Fair value recognised in the Statements of Financial Position The reporting entity uses the following hierarchy for disclosing the fair value of financial instruments by valuation technique: ! Level 1 - Derived from quoted prices in active markets for identical assets / liabilities. ! Level 2 - Derived from inputs other than quoted prices that are observable directly or indirectly. ! Level 3 - Derived from valuation techniques that include inputs for the asset / liability not based on observable market data (unobservable inputs).

Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000

Consolidated - 2012

Financial assets at fair value Derivatives - 816 - 816 NSW TCorp Hour-Glass Investment Facility - 642,399 - 642,399 Financial libilities at fair value - - - - Derivatives - (16,166) - (16,166) - 627,049 - 627,049

Consolidated - 2011

Financial assets at fair value Derivatives - 4,735 - 4,735 NSW TCorp Hour-Glass Investment Facility - 917,963 - 917,963 Financial libilities at fair value - - - - Derivatives - (16,958) - (16,958) - 905,740 - 905,740

128 Transport for NSW Annual Report 2011–12 Department of Transport Notes to the financial statements for the year ended 30 June 2012

33 AFTER BALANCE DATE EVENTS

Country Rail Infrastructure Authority and Public Transport Ticketing Corporation ceased operations on 1 July 2012 and their roles, functions, assets and liabilities were transferred to Transport for NSW.

The NSW Government has awarded the contract for the operations of the Sydney Ferries to a private operator with effect from 28 July 2012. The contract will run for 7 years with the NSW Government retaining ownership of the Sydney Ferries vessels and Balmain shipyard. Transport for NSW will be responsible for fares control and setting service levels for the new operator. Further details on this contract can be found in Note 18 in the 2011-12 financial statements of Sydney Ferries

RailCorp entered a lease on 5 August 2012 transferring the management and operation of the Sydney Metropolitan Freight Network to Australian Rail Track Corporation Limited until 2064. It will result in the de-recognition by RailCorp of associated land and Infrastructure assets with a written down value of approximately $150m in financial year 2012- 13. End of audited financial statements Financial statements Financial

Financial statements 129 Transport for NSW

130 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 131 132 Transport for NSW Annual Report 2011–12 Transport for NSW Statement of comprehensive income For the period from 1 November 2011 to 30 June 2012

2012 Notes $’000 Expenses excluding losses Operating expenses Personnel service expenses 2(a) 164,255 Other operating expenses 2(b) 117,246 Maintenance 2(c) 1,167 Depreciation and amortisation 2(d) 34,678 Grants and subsidies 2(e) 5,515,935 Finance costs 2(f) 43,498 Other expenses 2(g) 1,097,627 Total Expenses excluding losses 6,974,406

Revenue Recurrent appropriations 3(a) 6,472,963 Capital appropriations 3(b) 267,543 Sale of goods and services 3(c) 329,637 Investment revenue 3(d) 8,044 Shared services revenue 3(e) 108,706 Retained taxes, fees and fines 3(f) 1,018 Grants and contributions 3(g) 27,748 Resources received free of charge 3(h) 7,090 Other revenue 3(i) 2,519

Total Revenue 7,225,268 statements Financial

Net result 250,862

Other comprehensive income -

Total comprehensive income for the period 250,862

The accompanying notes form part of these financial statements.

Financial statements 133 Transport for NSW Statement of financial position as at 30 June 2012

Actual 2012 Notes $’000 ASSETS Current assets Cash and cash equivalents 6 234,762 Receivables 7 440,809 Non-current assets for sale 8 9,285 Total current assets 684,856

Non - current assets Other financial assets 9 21,076 Property, plant and equipment Land and buildings 10 318,068 Infrastructure systems 10 55,638 Plant and equipment 10 962,088 Property, plant and equipment 1,335,794 Intangibles 11 171,341 Other assets 12 36,511 Total non - current assets 1,564,722

Total assets 2,249,578

LIABILITIES Current liabilities Payables 13 421,175 Borrowings 14 171,693 Other 15 2,270 Total current liabilities 595,138

Non - current liabilities Borrowings 14 1,050,648 Other 15 45 Total non - current liabilities 1,050,693

Total liabilities 1,645,831

Net assets 603,747

EQUITY Accumulated funds 603,747

Total Equity 603,747

The accompanying notes form part of these financial statements.

134 Transport for NSW Annual Report 2011–12 Transport for NSW Statement of changes in equity For the period from 1 November 2011 to 30 June 2012

Accumulated Funds Notes $’000

Balance at 1 November 2011 - Net result for the period 250,862

Other comprehensive income -

Total other comprehensive income -

Total comprehensive income for the period 250,862

Transactions with owners in their capacity as owners

Increase / (decrease) in net assets from equity transfers 21 352,885

Balance at 30 June 2012 603,747

The accompanying notes form part of these financial statements. Financial statements Financial

Financial statements 135 Transport for NSW Statement of cash flows For the period from 1 November 2011 to 30 June 2012

Actual 2012 Notes $’000 Cash flows from operating activities Payments Personnel services fees (142,572) Grants and subsidies (5,846,228) Finance costs (43,498) Bus contract payments (813,921) Other (115,409) Total Payments (6,961,628)

Receipts Recurrent appropriations 6,472,963 Capital appropriations 269,813 Sale of goods and services 400,057 Grants and contributions 27,919 Retained taxes, fees and fines 1,018 Interest received 3,967 Total Receipts 7,175,737

Net cash inflows from operating activities 19 214,109

Cash flows from investing activities Purchases of land and buildings, plant and equipment and infrastructure systems (241,260) Purchase of finance leased assets (32,784) Advances made (460) Purchases of investments (20,004) Net cash outflows from investing activities (294,508)

Net (decrease)/ increase in cash (80,399)

Cash transferred as a result of administrative restructure 21 315,161

Closing cash and cash equivalents 6 234,762

The accompanying notes form part of these financial statements.

136 Transport for NSW Annual Report 2011–12 8,044 7,090 2,519 27,748 329,637 108,706 1,097,627 ------164,255 117,246 1,167 34,678 5,515,935 43,498 - 6,974,406 n the "Not Attributable" column. Financial statements Financial - - - 6,472,963 6,472,963 ------43,498 - - 1,018 - - 1,018 - - - 267,543 267,543 512 1,261 746 632 33,415 631 168 652 347 1,635 4,025 2,384 1,441 3,548 2,101 5,641 13,885 8,222 98,344 243,083 143,335 6,740,506 7,225,268 22,100 54,396 32,210 16,985 65,355 34,906 23,797 91,556 48,902 67,015 164,950 97,672 304,924 792,703 - 2,995,611 2,642,023 1,336,772 2,649,105 1,614,844 1,251,986 (2,897,267) (2,398,940) (1,193,437) 6,740,506 250,862 (2,897,267) (2,398,940) (1,193,437) 6,740,506 250,862 $’000 $’000 $’000 $’000 $’000 & Development& Service Delivery Planning Management & Transport Infrastructure*Transport Integrated Transport* Integrated Transport* Attributable** Non Total Maintenance Other operating expenses Personnel service expense Transport for NSW for Transport statements group Service 30 June 2012 2011 to 1 November from period the For Total Other comprehensive income Other revenue Total Revenue Net result Other expenses Revenue Recurrent appropriations Grants and subsidies Finance costs Shared services revenue Depreciation and amortisation Expenses excluding losses Operating expenses Expenses and Income 2012 2012 2012 2012 2012 * The names and purposes of each service group are summarised in summarised are service purposes of Note and names The each group 5. * entity individual made on an to not are basis Appropriations and service** Consequently, included groups. are i appropriations Total comprehensive for the income period Retained taxes, fees and fines Investment revenue Resources received free of charge Total Expenses excluding losses Capital appropriations Grants and contributions Sale of goods and services

Financial statements 137 - 234,762 - - 1,050,648 - 1,050,648 - 1,050,693 - - 1,050,693 -- 171,693 - - - - 2,270 171,693 2,270 4--45 -45- 9,285 - - - 9,285 1,198 959,691 1,199 - 962,088 20,004 671 401 - 21,076 36,511 - - - 36,511 55,638 - - - 55,638 296,212 283,004 13,652 2,270 595,138 626,810 55,787 2,259 684,856 296,212 111,311 13,652 - 421,175 315,967 1,050 1,051 - 318,068 388,827 51,427 555 - 440,809 228,698 4,360 1,704 296,212 1,333,697 13,652 2,270 1,645,831 372,803 960,741 2,250 - 1,335,794 154,684584,002 8,328 969,740 8,329 10,980 - 171,341 1,564,722 914,600 (308,170) (413) (2,270) 603,747 1,210,812 1,025,527 13,239 - 2,249,578 $’000 $’000 $’000 $’000 $’000 & Development Service Delivery & Planning Management Not Attributable Total Transport Infrastructure* Integrated Transport* Integrated Transport* assets ilities Infrastructure systemsInfrastructure Land and buildings Plant and equipment Transport for NSW for Transport statements group Service 30 June 2012 as at and Liab Assets Total current liabilities Non - current liabilities Borrowings Total current assets Total non - current liabilities Total assets Borrowings Other Current liabilities Payables Non - current assets Other financial assets Property, plant and equipment Receivables Non -currentNon assets for sale Total liabilities Current assets Cash and cash equivalents Other Property, plant and equipment Intangibles Other assets Total non - current Net assets * The names and purposes of each service group are summarised in summarised are service purposes of Note and names The each group 5. *

138 Transport for NSW Annual Report 2011–12 Financial statements Financial - - - 270 270 - - - 19,627 19,627 - - - 19,627 19,627 - - - 19,357 19,357 $’000 $’000 $’000 $’000 $’000 & Development Service Delivery & Planning Management Not Attributable Total Transport Infrastructure* Integrated Transport* Integrated Transport* Taxes, fees and fines Transport for NSW for Transport statements group Service 30 June 2012 2011 to 1 November from period the For expenses and income Administered Administered income less expenses income Administered Total administered income Administered income Administered Consolidated Fund Total administered expenses * The names and purposes of each service group are summarised in summarised are service purposes of Note and names The each group 5. * 20. Note in disclosed are liabilities and assets Administered Administered expensesAdministered Transfer of taxes, fees and fines to the Crown Entity - - - 19,357 19,357

Financial statements 139 Transport for NSW Summary of compliance with financial directives For the period from 1 November 2011 to 30 June 2012

Expenditure/ Expenditure/ net Claim on net Claim on Recurrent Consolidated Capital Consolidated Appropriation Fund Appropriation Fund $'000 $'000 $'000 $'000 Original Budget Appropriation/ Expenditure - S 24 PF&AA - transfers of functions between entities 6,931,712 6,461,640 218,595 216,325

6,931,712 6,461,640 218,595 216,325

OTHER APPROPRIATIONS/ EXPENDITURE - Treasurer's advance - - 47,218 47,218 - Transfers to/from another entity (S 33 of the Appropriation Act) 19,256 11,323 4,000 4,000

19,256 11,323 51,218 51,218

Total Appropriation/Expenditure/ Net Claim on Consolidated Fund 6,950,968 6,472,963 269,813 267,543

Drawdown against Appropriations 6,472,963 269,813 (Notes 3(a),(b)) 6,472,963 269,813

Liability to Consolidated Fund (note 15) - 2,270

The Summary of Compliance is based on the assumption that Consolidated Fund moneys are spent first (except where otherwise identified or prescribed). Liability to Consolidated Fund represents the difference between the "Amount Drawn Down against Appropriation" and the "Total Expenditure/Net Claim on Consolidated Fund".

140 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies a) Transport for NSW – Reporting entity

Transport for NSW was established on 1 November 2011 as a statutory authority to take over the roles and functions previously carried on by the Department of Transport including the planning, procurement, delivery and coordination of transport services and infrastructure in NSW. Transport for NSW (through the Director General of the Department of Transport) may, for the purpose of exercising its functions, give directions to the following transport entities – RailCorp, Roads and Maritime Services, State Transit Authority, Sydney Ferries, Transport Construction Authority, and Country Rail Infrastructure Authority.

As a result of other amendments to the Transport Administration Act 1988 the following other changes were made to the Department of Transport group:

The Transport Service of New South Wales was established on 1 November 2011 as an agency to employ staff and to provide personnel services to Transport for NSW which cannot directly employ staff.

Transport Construction Authority was abolished as a statutory authority with effect from 31 March 2012 and its functions and roles transferred to Transport for NSW.

Public Transport Ticketing Corporation was abolished on 1 July 2012 and its functions and roles were transferred to Transport for NSW.

On 12 March 2012, Transport for NSW, with the approval of the NSW Treasurer and the Minister for Transport, incorporated ACN 156 211 906 Pty Ltd, a proprietary limited liability company under Australian Corporations Law. Transport for NSW as the sole shareholder, subscribed $19.8m to the issued share capital of ACN 156 211 906 Pty Ltd which used the funds raised to buy out the shareholders and bond holders of Metro Transport Sydney Pty Ltd

group (comprising Sydney Light Rail Co Pty Ltd, Metro Transport Security Co Pty Ltd, Pyrmont statements Financial Light Rail Co Ltd, SLR Corporate Development Pty Ltd and Light Rail Construction Co Pty Ltd) the owners of the monorail and light rail in Sydney.

The Transport Administration Act 1988 states that the affairs of Transport for NSW are to be managed and controlled by the Director General of the Department of Transport. Consistent with the Director General’s power of direction it is considered that the Transport for NSW has control for the purposes of preparing consolidated financial statements for the following agencies and special purpose entities or divisions: x Transport Service of New South Wales x Country Rail Infrastructure Authority (ceased operations on 1 July 2012) x Transport Construction Authority (ceased operations on 31 March 2012) x Roads and Maritime Services x Sydney Ferries x State Transit Authority x Railcorp x Public Transport Ticketing Corporation (ceased operations on 1 July 2012) x Sydney Metro x ACN 156 211 906 Pty Ltd x Metro Transport Sydney Pty Ltd x Sydney Light Rail Co Pty Ltd

Financial statements 141 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

a) Transport for NSW – Reporting entity (cont’d)

x Metro Transport Security Co Pty Ltd x Pyrmont Light Rail Co Ltd x SLR Corporate Development Pty Ltd x Light Rail Construction Co Pty Ltd

The Treasurer of NSW on 14 March 2012 granted an exemption to Transport for NSW, a controlled entity of the Department of Transport from preparing consolidated financial statements on the basis that the Department of Transport, as the ultimate parent entity, produces consolidated financial statements. These financial statements are for the Transport for NSW parent entity only.

Transport for NSW is a not-for-profit organisation.

The financial statements of Transport for NSW for the period from 1 November 2011 to 30 June 2012 were authorised for issue by the Director General on 10 October 2012.

b) Basis of preparation

The financial statements are general purpose financial statements which have been prepared in accordance with:

x Applicable Australian Accounting Standards (which include Australian Accounting interpretations); x The requirements of the Public Finance and Audit Act 1983 and Regulation; and x The Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector Entities or issued by the Treasurer under section 9(2)(n) of the Act.

Property, plant and equipment, investment property, assets (or disposal groups) held for sale and financial assets at “fair value through profit or loss” and available for sale are measured at fair value. Other financial report items are prepared in accordance with historical cost convention.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

c) Critical accounting estimates, judgement and assumptions

In the application of accounting standards and the Financial Reporting Code for NSW General Government Sector Entities (the Code), management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various factors that are believed to be reasonable under the current set of circumstances. Actual results may differ from these estimates.

142 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) c) Critical accounting estimates, judgement and assumptions (cont’d)

Management evaluates these judgements, estimates and assumptions on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The judgements, key assumptions and estimates management has made are disclosed in the relevant notes to the financial statements. d) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations. As this is the first year of operations these financial statements do not include comparative figures. e) Administered activities

Transport for NSW administers, but does not control, certain activities on behalf of the Crown Entity. It is accountable for the transactions relating to those administered activities but does not have discretion, for example, to deploy the resources for the achievement of Transport for NSW’s own objectives.

Transactions and balances relating to the administered activities are not recognised as Transport for NSW’s income, expenses, assets and liabilities, but disclosed in the accompanying schedules as “Administered income”, “Administered expenses”, “Administered assets” and “Administered liabilities”. Financial statements Financial f) Personnel services

Transport for NSW cannot directly employ staff. The personnel services are provided by the Transport Service of New South Wales, Department of Transport and various transport agencies until all staff have been transferred to the Transport Service of New South Wales. As a result, Transport for NSW reports personnel service expenses, not employee related expenses.

Personnel service expenses include salaries, wages, leave entitlements, superannuation, workers’ compensation insurance premium, payroll tax, fringe benefits tax and redundancies.

For further details on the recognition and measurement of personnel service expenses refer to Note 2(a)

Some personnel service expenses are included in the construction costs of intangible assets and rail infrastructure system and are, therefore, not included in the personnel service expenses.

Financial statements 143 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

g) Other operating expenses and maintenance

Other operating expenses generally represent the day-to-day running costs incurred in the normal operations of Transport for NSW.

Maintenance costs relate principally to interchanges and do not include personnel service expenses.

h) Grants and subsidies

Grants and subsidies generally comprise contributions in cash or in kind to transport services providers and various local government authorities and not-for-profit community organisations.

i) Finance costs

Finance costs comprise mainly interest on borrowings and finance lease interest charges. In accordance with Treasury’s mandate for the not-for-profit general government sector agencies, finance costs are expressed and recognised in the Statement of comprehensive income in the period in which they are incurred. This also includes any finance costs that relate to qualifying assets.

j) Insurance

Transport for NSW arranges insurance cover through the NSW Treasury Managed Fund. The cost of insurance is expensed in the period to which the insurance cover relates.

k) Other expenses

Other expenses include payments to bus operators for the provision of bus services in the metropolitan, regional and rural areas of New South Wales. These payments are made at the end of the month for services provided in that month and are expensed as incurred.

l) Accounting for the Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of GST, except that:

x the amount of GST incurred by Transport for NSW as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense and

x receivables and payables are stated with the amount of GST included.

Cash flows are included in the Statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

144 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) m) Income recognition

Income is recognised and measured at the fair value of the consideration or contribution received or receivable to the extent that it is probable that the economic benefit will flow to Transport for NSW and the income can be reliably measured. The following specific criteria must also be met before income is recognised:

(i) Parliamentary appropriations and contributions

Parliamentary appropriations and contributions from other bodies (including grants and contributions) are generally recognised as income when Transport for NSW obtains control over the assets comprising the appropriations/ contributions. Control over appropriations/ contributions are normally obtained upon the receipt of cash. At 30 June unspent appropriations are recognised as liabilities rather than income, as the authority to spend the money lapses and the unspent amount must be repaid to the Consolidated Fund. The liability is disclosed in note 15 as part of “Current liabilities – Other”. The amount will be repaid and the liability will be extinguished next financial year. Any liability in respect of transfer payments is disclosed in Note 20 “Administered assets and liabilities”.

(ii) Sale of goods and services

Revenue from the sale of goods is recognised as revenue when Transport for NSW transfers the significant risks and rewards of ownership of the assets.

Revenue from the provision of services (including passenger transport services) is recognised as revenue when the service is provided or by reference to the stage of completion.

(iii) Retained taxes, fines and fees statements Financial

Retained taxes, fines and fees are recognised when cash is received.

(iv) Investment revenue

Interest revenue on cash and cash equivalents is recognised using the effective interest method as set out AASB 139 Financial Instruments: Recognition and Measurement. Rental revenue is recognised in accordance with AASB 117 Leases on a straight line basis over the lease term. Royalty revenue is recognised in accordance with AASB 118 Revenue on an accrual basis in accordance with the substance of the relevant agreement.

(v) Shared services revenue

Shared services revenue represents revenue for the provision of shared services to various transport operating entities.

(vi) Other revenue

Other revenue comprises the value of the emerging rights to receive private sector provided infrastructure. The non-cash revenue is also recognised as an asset (Note 12).

Financial statements 145 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

n) Property, plant and equipment

(i) Property, plant and equipment

Property, plant and equipment comprise land and buildings, plant and equipment (general plant and equipment and finance lease assets) and infrastructure systems (rail infrastructure including related land and buildings

(ii) Capitalisation and initial recognition

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by Transport for NSW in accordance with AASB 116 Property, Plant and Equipment. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.

Fair value is the amount for which an asset cold be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment amount is effectively discounted at an asset- specific rate.

The cost of assets constructed for own use includes the purchase cost, other directly attributable costs and the initial estimates of dismantling and restoration costs.

Generally property, plant and equipment and intangible assets with a greater value than $5,000 are capitalised except for computer equipment which is normally capitalised irrespective of the $5,000 threshold where it is considered to be part of a network of assets.

(iii) Valuation of property, plant and equipment

Subsequent to initial recognition, property, plant and equipment assets are valued in accordance with the “Valuation of Physical Non – Current Assets at Fair Value” Policy and Guidelines paper (TPP 07-1). This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment and AASB 140 Investment Property.

There has been no revaluation to date.

Property, plant and equipment is measured on its existing use, where there are no feasible alternative uses in the existing natural, legal, financial and socio – political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use.

146 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) n) Property, plant and equipment (cont’d)

(iv) Revaluation of property, plant and equipment

Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Market evidence is available and used for non-specialised land and buildings, which include commercial and general purpose buildings for which there is a secondary market.

Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost.

The depreciated replacement cost is used to revalue specialised buildings (designed for a specific limited purpose), trackwork and rail infrastructure systems, buses and certain plant and equipment. Depreciated replacement cost for these types of assets is based on “incremental optimised replacement cost”. Optimised replacement cost is the minimum cost, in the normal course of business, to replace the existing asset with a technologically modern equivalent asset with the same economic benefits, adjusting for any overdesign, overcapacity and redundant components. Incremental optimisation is limited to the extent that optimisation can occur in the normal course of business with commercially available technology.

Non-specialised assets such as computer and office equipment with short useful lives are measured at depreciated historical cost, as a surrogate for fair value.

Transport for NSW revalues each class of property, plant and equipment at least every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Revaluations are performed by

independent and/ or in-house professionally qualified valuers. statements Financial

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. This is because any difference between fair value and depreciated historical cost is unlikely to be material.

When revaluing non- current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated.

For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exits in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

Financial statements 147 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

n) Property, plant and equipment (cont’d)

(iv) Revaluation of property, plant and equipment (cont’d)

As a not-for-profit reporting entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

(v) Impairment of property, plant and equipment

As a not-for-profit reporting entity with no cash generating units, Transport for NSW is effectively exempted from AASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the recoverable amount test to the higher of fair value less cost to sell and depreciated replacement cost. This means that, for an asset already measured at fair value, impairment can only arise if selling costs are material. Selling costs are regarded as immaterial.

(vi) Depreciation of property, plant and equipment

Except for finance leased assets, depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to Transport for NSW. Finance leased assets are amortised on a systematic basis over their useful life (15 years) in accordance with the terms of the lease agreements.

Land is not a depreciable asset. Buildings which have been acquired for future transport infrastructure are not depreciated as these assets are not purchased to generate revenue and are ultimately demolished for transport infrastructure projects. The expected useful lives of property, plant and equipment for depreciation purposes are as follows: Depreciation Rates Useful Lives Plant and equipment 3- 30 years Finance leased buses 15 years Rail infrastructure system 10 -100 years

The asset residual values, useful lives and depreciation methods are reviewed, and adjusted, if appropriate, at each financial year end.

(vii) Major inspection costs

When each major inspection is performed, the labour cost of performing major inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is derecognised.

(viii) Restoration costs

The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability. If the effect of the time value of

148 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) n) Property, plant and equipment (cont’d)

(viii) Restoration costs (cont’d) money is material, these costs are discounted at the appropriate market yields on government bonds.

(ix) Maintenance

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or a component of an asset, in which case the costs are capitalised and depreciated.

(x) Leased assets

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits.

Where a non – current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the commencement of the lease term. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Under the Metropolitan and Outer Metropolitan Bus System Contracts, payments to bus operators for the acquisition of new buses are considered to be in the nature of finance leases and are recognised in accordance with AASB 117 Leases.

The leased asset is amortised on a straight line basis or on a systematic basis over the term of statements Financial the lease or, where it is likely that the reporting entity will obtain ownership of the asset, the useful life of the asset to Transport for NSW.

Operating lease payments are charged to the Statement of comprehensive income in the periods in which they are incurred.

(xi) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of the asset and are included in the Statement of comprehensive income. o) Intangible assets

Intangible assets are recognised only if it is possible that future economic benefits will flow to Transport for NSW and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost which includes the purchase price and any costs directly attributable to preparing the asset for its intended use. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

Financial statements 149 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

o) Intangible assets (cont’d)

All research costs are expensed. Development costs are only capitalised when certain criteria are met.

The usefully lives of intangible assets are assessed to be finite.

Intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for Transport for NSW’s intangible assets, the assets are carried at cost less any accumulated amortisation.

Transport for NSW’s intangible assets comprise principally information technology systems which are amortised using the straight line method over periods ranging from 2 to 10 years.

Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.

p) Cash and cash equivalents

Cash and cash equivalents in the Statement of Financial Position comprises cash at bank and in hand and NSW Treasury Corporation short-term deposits. These deposits have an original maturity of three months or less, are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value. The NSW Treasury Corporation short-term deposits are designated at fair value through the profit and loss. The movement in the fair value of these deposits is reported under investment revenue.

For the purposes of the Statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

q) Loans and Receivables

Loans and receivables are non derivative financial assets with fixed or determined payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the period when impaired, derecognised or through the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

150 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) r) Investments

Investments comprise deposits in Treasury Corporation investment accounts and shares in subsidiaries. Investments are valued at their market value which is assessed on an annual basis.

Investments are initially recognised at fair value plus, in the case of investments not at fair value through profit and loss, transaction costs. Transport for NSW determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.

(i) Fair value through profit and loss: Transport for NSW subsequently measures investment classified as “held for trading” or designated upon initial recognition “at fair value through profit and loss” at fair value. Financial assets are classified as “held for trading” if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading. Gains or losses on these assets are recognised in the net result for the period.

(ii) Held-to-maturity investments: Non derivative financial investments with fixed or determinable payments and fixed maturity that Transport for NSW has the positive intention and ability to hold to maturity are classified as “held to maturity”. These investments are measured at amortised cost using the effective interest rate method. Changes are recognised in the net result for the period when impaired, derecognised or through the amortisation process.

(iii) Available-for-sale investments: Any residual investments that do not fall into any other category are accounted for as available-for-sale investments and measured at fair value in other comprehensive income until disposed or impaired, at which time the cumulative gain

or loss previously recognised in other comprehensive income is recognised in the net statements Financial result for the period. However, interest calculated using the effective interest method and dividends are recognised in the net result for the period.

Purchases or sales of investment under contract that require delivery of the asset within the timeframe established by convention or regulation are recognised on the trade date, i.e. the date Transport for NSW commits to purchase or sell the asset.

The fair value of investments that are traded at fair value in an active market is determined by reference to quoted current bid prices at the close of business on the Statement of financial position date.

Unquoted investment in subsidiaries incorporated as proprietary companies are stated at cost less accumulated impairment in the parent entity's Statement of Financial Position. The investment is subject to at least annual reviews for impairment. s) Impairment of financial assets

All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that Transport for NSW will not be able to collect all amounts due.

Financial statements 151 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

s) Impairment of financial assets (cont’d)

For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the period.

When an available for sale financial asset is impaired, the amount of the cumulative loss is removed from equity and recognised in the net result for the period, based on the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss previously recognised in the net result for the period.

Any reversals of impairment losses are reversed through the net result for the period, where there is objective evidence, except reversals of impairment losses on an investment in an equity instrument classified as available - for - sale must be made through the reserve. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

t) Derecognition of Financial Assets and Financial Liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if Transport for NSW transfers the financial assets:

x where substantially all the risks and rewards have been transferred; or

x where Transport for NSW has not transferred substantially all the risks and rewards, if the reporting entity has not retained control.

Where Transport for NSW has neither transferred nor retained substantially all the risk and rewards or transferred control, the asset is recognised to the extent of Transport for NSW’s continuing involvement in the asset.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

u) Non-current assets (or disposal groups) held for sale

Certain non-current assets (or disposal groups) are classified as held for sale, where their carrying amount will be recovered principally through a sale transaction, not through continuing use.

Non-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell, in accordance with AASB 5 Non- Current Assets held for Sale and Discontinued Operations. These assets are not depreciated while they are classified as held for sale.

152 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) v) Other assets – Private sector provided infrastructure

In these private sector provided infrastructure arrangements, the grantor (Transport for NSW) gives the service concession in exchange for the right to receive the infrastructure from the operator (private sector entity) at the end of the concession period. The operator is required to design, finance and build the infrastructure and use it to provide services directly to the public during the concession period. The operator is permitted to charge the public for the services it provides. The services concession arrangement infrastructure is operator – controlled during the concession period and grantor- controlled thereafter.

In the absence of a specified Australian Accounting Standard, Treasury Policy and Guidelines Paper Accounting for Privately Financed Projects (TP06-08) applies. The policy requires Transport for NSW to initially determine the estimated written down replacement cost by reference to the project’s historical cost escalated by a construction index and the system’s estimated working life. The estimated written down replacement cost is then allocated on a systematic basis over the concession period using the annuity method and the government bond rate at the commencement of the project. During the concession period, the reporting entity recognises the annual value of the right to receive the infrastructure as an asset and revenue (Note 3(i) and Note (12)). w) Liabilities

(i) Payables

These amounts represent liabilities for goods and services provided to Transport for NSW and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest

method. Short – term payables with no stated interest rate are measured at the original invoice statements Financial amount where the effect of discounting is immaterial.

(ii) Borrowings

Borrowings are not held for trading or designated at fair value through profit or loss. Borrowings are initially measured at the fair value of the consideration received. Any difference between the proceeds and the redemption amount (premium or discount) is recognised in the net result over the period of the borrowings using the effective interest method.

The finance lease liability is determined in accordance with AASB 117 Leases.

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid is recognised in profit or loss as other income or finance costs.

Borrowings are classified as current liabilities unless the reporting entity has an unconditional right to deter settlement of the liability for at least 12 months after the reporting date.

Financial statements 153 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

w) Liabilities (cont’d)

(iii) Other provisions

Other provisions exist when Transport for NSW has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

Any provisions for restructuring are recognised only when Transport for NSW has a detailed formal plan and it has raised a valid expectation in those affected by the restructuring by starting to implement the plan or announcing its main features to those affected.

If the effect of the time value of money is material, provisions are discounted at a pre- tax rate that reflects the current market assessments of the time value of money and risk specific to the liability.

x) Equity and reserve

(i) Asset revaluation reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets. This accords with Transport for NSW’s policy on the revaluation of property, plant and equipment as discussed in note 1(n)(iv).

(ii) Accumulated funds

The category “Accumulated Funds” includes all current and prior period retained funds.

(iii) Equity transfer

Equity transfers represent the transfer of net assets between agencies as a result of an administrative restructure, transfers of programs / functions and parts thereof between NSW public sector agencies and "equity appropriations". These equity transfers are designated or required by Accounting Standards to be treated as contributions by owners and recognised as an adjustment to "Accumulated Funds". This treatment is consistent with AASB 1004 Contributions and Australian Interpretation 1038 Contributions by Owners made to Wholly-owned public Sector Entities.

Transfers arising from an administrative restructure involving not-for-profit and for-profit government departments are recognised at the amount at which the assets and liabilities were recognised by the transferor immediately prior to the restructure. Subject to below, in most instances this will approximate fair value.

All other equity transfers are recognised at fair value, except for intangibles. Where an intangible has been recognised at (amortised) cost by the transferor because there is no active market, the agency recognises the asset at the transferor’s carrying amount. Where the transferor is prohibited from recognising internally generated intangibles, the transferee agencies does not recognise that asset.

154 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d) y) Budgeted amounts

NSW Treasury granted approval for Transport for NSW not to disclose the budgeted amounts on the basis that Transport for NSW, established on 1 November 2011, did not operate the full financial year to 30 June 2012.

The budget review (Note 18) includes the full year results and budgets for the Department of Transport, Transport for NSW and the Transport Service of New South Wales, as this allows better transparency and meaningful disclosure of the performance of the Department of Transport, Transport for NSW and the Transport Service of New South Wales.

In general, the budgeted amounts reflect the budget figures disclosed in the NSW Budget Papers as adjusted for S24 of the Public Finance and Audit Act 1983 (allocations adjustments for transfer of functions between Departments). Other amendments made to the budget are not reflected in the budget amounts. z) Service Groups costing

Service Groups costs comprise direct costs and indirect costs. Direct and indirect costs include employee related expenses, depreciation and amortisation, grants and subsidies, finance charges and operating expenses. Direct costs relate to those activities that contribute specifically to the service delivery of one of the Service Groups. Indirect costs relate to those general activities that benefit all Service Groups. Indirect costs are allocated across the three service groups on a pro-rata basis having regard to the direct allocations to each service groups with this method considered to be both systematic and rational and is applied consistently to all costs having similar characteristics.

Assets and liabilities that could be attributed to one of the service groups were allocated to that statements Financial service group. The other assets and liabilities are allocated across the three service groups on a pro-rata basis having regard to the direct allocations to each service groups with this method considered to be both systematic and rational and is applied consistently to all assets and liabilities having similar characteristics. aa) New Australian Accounting Standards issued but not effective

At reporting date all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (“the AASB”) that are relevant to Transport for NSW and effective for the current annual reporting period have been adopted.

Early adoption of new or revised Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted for the financial reporting period ended 30 June 2012. Transport for NSW’s assessment of the impact of these new standards and interpretations is set out below:

Financial statements 155 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

1. Summary of significant accounting policies (cont’d)

aa )New Australian Accounting Standards issued but not effective (cont’d) Applicable to annual Standard Summary of key reporting periods Impact on financial requirements/changes beginning on or after statements

AASB 9 Financial AASB 9 introduces new requirements The IASB has Impact on the Instruments and for the classification, measurement deferred the effective financial statements is AASB 2010-7 and derecognition of financial assets date of this standard not expected to be Amendments to and financial liabilities. to 1 January 2015. It is significant. Australian expected that AASB Accounting will also make a Standards arising similar amendment. from AASB 9

AASB 12 AASB 12 introduces new disclosures 1 January 2013 May impact on the Disclosure of about the nature and financial effects type of information Interests in other of an entity’s investment in other disclosed. Entities entities.

AASB 127 The new standard prescribes the 1 January 2013 Impact on the Separate accounting and disclosure financial statements is Financial requirements for investments in not significant. Statements subsidiaries, joint ventures and associates when an entity prepares separate financial statements (in addition to consolidated financial statements).

AASB 128 This Standard prescribes the 1 January 2013 The impact on the Investments in accounting for investments in financial statements is Associates and associates and defines “significant not significant. Joint ventures influence”.

AASB 13 Fair The Standard defines fair value, 1 January 2013 It is not possible at this Value establishes a single framework or stage to quantify the Measurement guidance for the measuring of fair impact on the carrying and AASB 2011- value and requires enhanced amounts of the 8. disclosures about fair value revalued assets. measurements.

AASB 1053 and AASB 1053 requires entities that TfNSW prepares AASB 2010-2 prepare general purpose financial general purpose regarding statements to adopt Tier 1 (full financial statements differential compliance with AASB) or Tier 2 that comply with the reporting (Reduced Disclosure Requirements). AASB.

AASB 2011-9 The main change is that, in the 1 July 2012 Impact on the Amendments to Statement of Comprehensive Income, financial statements is Australian the “Other Comprehensive Income” not significant. Accounting section will need to be presented in Standards – two sub-sections, based on whether Presentation of the items may be recycled to net result Items of Other in the future. Comprehensive

156 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

2012 $’000 2. Expenses excluding losses

(a) Personnel service expenses

Salaries (including recreation leave) 133,584 Superannuation - Defined benefits plan 1,249 Superannuation - Defined contribution plan 3,615 Long service leave 5,841 Workers’ compensation insurance 154 Payroll tax and fringe benefit tax 2,948 Redundancies 1,425 Other employee expenses 226 Skill hire contractors 15,213 Fee for Personnel Services - 164,255

Personnel service costs of $0.6m have been capitalised in rail infrastructure system and intangible assets (computer systems) and are excluded from the above.

(b) Other operating expenses including the following:

Consultants 5,536 Project Contractors 15,063 Contractors 37,778 Electricity 169 External Audit fees - for audit of the annual financial statements 240

Fleet hire and leasing charges including statements Financial contingent rents and rail access fees 121 Fuel costs 41 Information technology 5,755 Insurance - other than workers compensation insurance 354 Internal audit fees 26 Legal services 5,519 Office expenses 29,463 Property rent and other related expenses 5,547 Security costs 1,984 Telecommunications 1,982 Travel expenses - domestic and international 391 General expenses 7,277

117,246

(c) Maintenance

Maintenance 1,167 1,167

Maintenance expenses of $1.2m do not include staff costs.

Financial statements 157 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

2012 $’000 2. Expenses excluding losses (Cont’d)

(d) Depreciation and Amortisation

Depreciation Depreciation - Buildings (note 10) 12 Depreciation - Plant and equipment (note 10) 644 656 Amortisation Amortisation - Finance leased buses (note 10) 32,783 Amortisation - Computer systems (note 11) 1,239 34,022

34,678 (e) Grants and subsidies

Taxi transport subsidy scheme 17,565 Community transport groups 29,398 Private vehicle conveyance 11,238 Rail Corporation 2,259,175 Country Rail Infrastructure Authority 110,186 Sydney Ferries 86,781 Carparks and interchanges 12,989 Transport Construction Authority 16,700 Roads and Maritime Services (including the former RTA) 2,949,660 Grants to councils - maintenance of transport infrastructure 6,405 Others 15,838

5,515,935 (f) Finance costs

Finance lease interest charges 43,482 Finance costs - other 16

43,498 (g) Other expenses

Bus contract payments - metropolitan and outer metro bus operators 537,347 Major events - hire of bus and rail services 4,577 Bus contract payments - rural and regional bus operators 250,779 Infrastructure projects 304,924

1,097,627

158 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

2012 $’000 3. Revenue

(a) Recurrent Appropriations

Total recurrent drawdowns from NSW Treasury (per Summary of compliance with financial directives) 6,472,963 Less: Liability to Consolidated Fund (per Summary of compliance with financial directives) - 6,472,963 Comprising: Recurrent appropriations (per Statement of comprehensive income) 6,472,963 6,472,963

(b) Capital Appropriations

Total capital drawdowns from NSW Treasury (per Summary of compliance with financial directives) 269,813 Less: Liability to Consolidated Fund (per Summary of compliance with financial directives) (note 15) (2,270) 267,543 Comprising: Capital appropriations (per Statement of comprehensive income) 267,543 267,543 (c) Sale of goods and services Financial statements Financial Recoupment of project costs 323,713 Fees for services rendered 1,512 Major events revenue 3,920 Other 492

329,637 (d) Investment revenue

Rents 2,682 Interest on financial assets at fair value through profit or loss ( Tcorp Deposits) 1,309 Interest on bank balance 4,053

8,044 (e) Shared services revenue

Shared services revenue 108,706

108,706

Shared services revenue comprises fees charged by the entity for the provision of shared services to other transport entities.

Financial statements 159 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

2012 $’000 3. Revenue (cont’d)

(f) Retained taxes, fees and fines

Taxi operators' accreditation renewal fees 1,018

1,018

Transport for NSW collects taxi operators' accreditation fees which can only be used to fund taxi industry related operations and initiatives.

(g) Grants and contributions

Community transport groups 27,748

27,748

Transport for NSW received $27.7m in grants from the Department of Aging Disability and Home Care for the Community Transport Group funding scheme.

(h) Resources received free of charge

Resources received free of charge represents acceptance by the Crown Entity of employee benefits and other liabilities.

Personnel services - Superannuation - defined benefit 1,249 Personnel services - Long service leave 5,841

7,090 (i) Other revenue

Emerging interests - Private Sector Provided Infrastructure (Note 12) 2,519

2,519

4. Conditions on contributions

Transport for NSW collects taxi operators' accreditation fees and receives grants and contributions whose usage is restricted by requirements of the grantors. Transport for NSW has complied in full with the externally-imposed requirements in the period under review.

160 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

5. Service groups of Transport for NSW

Transport for NSW has three service groups namely:

Transport Infrastructure and Development: Description: This service group covers developing and building new infrastructure along with enhancing the existing transport system and the road network.

Integrated Transport Service Delivery Description: This service group covers the delivery of a range of transport services, from operation, coordination and regulation of public transport, to transport service contracts, pricing and ticketing and customer information services. This also includes delivering more specialised services to better connect local communities and helping disadvantaged groups. This service group seeks to implement initiatives to increase safe road use behaviour to ensure that drivers and riders are eligible, competent and identified, vehicles are roadworthy and meet emissions standards and a high standard of customer service is maintained.

Integrated Transport Planning and Management Description: This service group covers planning for integration between transport modes to deliver a more efficient and reliable customer experience. It also includes the development of strategic policy to influence land use planning, coordinates strategies to address future growth and transport demands of the community and industry. This service group also seeks to ensure safe, reliable movements of people and goods on the arterial road network and manage the primary arterial network to retain the value and quality of the infrastructure as a long term renewable asset. 2012 $'000 6. Cash and cash equivalents Financial statements Financial Cash at bank and on hand 14,958 NSW TCorp Investment - Cash Facility 219,804

Total cash and cash equivalents 234,762

For the purposes of the Statement of cash flows, cash and cash equivalents include cash at bank, cash on hand, and NSW TCorp Investment Cash Facility

Cash and cash equivalent assets recognised in the Statement of financial position are reconciled at the end of the financial period to the Statement of cash flows as follows:

Cash and cash equivalents (per Statement of financial position) 234,762

Closing cash and cash equivalents (per Statement of cash flows) 234,762

Refer Note 22 for details regarding credit risk, liquidity risk, and market risk arising from financial instruments.

Restricted cash and cash equivalents

Cash and cash equivalent assets include restricted cash of $9.8m which can only be used for

Financial statements 161 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

specific purposes and are, therefore, not available to fund the ongoing operations of Transport for NSW. 2012 $'000 7. Receivables

Sale of goods and services 221,756 Goods and Services Tax recoverable 9,973 Prepayments 88 Income receivable 205,503 Investment Income receivable 3,512 Other debtors 3 440,835

Less: Allowance for impairment (26)

440,809

Movement in the allowance for impairment Balance transferred in through administrative restructure (26) Decrease in allowance recognised in net result -

Balance at 30 June (26)

Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 22.

8. Non-current assets held for sale

Non-current assets held for sale comprise land and buildings transferred from Transport Construction Authority as part of the administrative restructure. These assets are not required for any future transport infrastructure projects and accordingly are earmarked for sale in 2012- 13. The land and buildings were valued at fair value on 31 March 2012 prior to being transferred to Transport for NSW and they are part of the Integrated transport infrastructure and development service group.

Land and buildings held for sale 9,285

9,285 9. Other financial assets

Interest free advances to taxi operators 671 Investment in A.C.N. 156 211 906 Pty Ltd 20,004 Loan to A.C.N. 156 211 906 Pty Ltd 401

21,076

162 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

9. Financial assets (cont’d)

Interest free advances to taxi operators:

Transport for NSW provides repayable interest-free advances to assist taxi operators (in rural and regional NSW) to make their taxi wheel-chair accessible. Transport for NSW holds bills of sale as security for these advances and has recorded its financial interests in the vehicles in the Register of Encumbered vehicles.

Investment in and loans to A.C.N. 156 211 906 Pty Ltd:

A.C.N. 156 211 906 Pty Ltd is a for-profit proprietary company limited by shares and domiciled in Australia. The company was incorporated on 12 March 2012 and is fully owned subsidiary of Transport for NSW.

On 23 March 2012 Transport for NSW, acting on behalf of A.C.N. 156 211 906 Pty Ltd, paid $19.738m for the 100% acquisition of Metro Transport Sydney Pty Ltd and its Group, the owners of the Light Rail and Monorail Systems in Sydney (Note 9). A.C.N. 156 211 906 Pty Ltd issued 20m shares of $1 each fully paid to Transport for NSW to fund this acquisition($19.738m) and related stamp duty costs ($0.266m).

On 1 June 2012, Transport for NSW provided a short term interest bearing loan to A.C.N. 156 211 906 Pty Ltd. The loan is due for repayment on 31 July 2012.

Refer to Note 22 for further information regarding credit risk, liquidity risk, and market risk arising from financial instruments.

10. Property, plant and equipment Plant and Equipment Financial statements Financial Rail Finance Total Property, Land and Plant and infrastructure leased Total Plant & buildings equipment syste m buses Equipment $’000 $’000 $’000 $’000 $’000 $’000

At 30 June 2012 At cost - 55,638 - 991,275 991,275 1,046,913 Accumulated amortisation and impairment - - - (32,783) (32,783) (32,783) At fair value 318,080 - 4,240 - 4,240 322,320 Accumulated depreciation and impairment (12) - (644) - (644) (656) Net carrying amount 318,068 55,638 3,596 958,492 962,088 1,335,794

Reconciliation

Period ended 30 June 2012 Acquisitions through administrative restructure (note 21) 99,376 41,848 2,546 907,911 910,457 1,051,681 Additions 218,704 13,790 1,694 83,364 85,058 317,552 Depreciation/ amortisation expenses (Note 2(d) (12) - (644) (32,783) (33,427) (33,439)

Net carrying amount at end of the period 318,068 55,638 3,596 958,492 962,088 1,335,794

Transport for NSW’s rail infrastructure system is under construction and as a result, the depreciation for rail infrastructure system is nil for the period ended 30 June 2012.

Financial statements 163 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

2012 $’000

11. Intangible assets At cost (gross carrying amount) 172,580 Accumulated amortisation and impairment (1,239) Net carrying amount at fair value 171,341

Reconciliation

Acquisitions through administrative restructure (Note 21) 165,509 Additions 7,071 Amortisation expenses (Note 2(d) (1,239) Net carrying amount at end of the period 171,341

12. Other assets- Private sector provided infrastructure

Emerging interest in Ultimo Pyrmont Light Rail

Acquisitions through administrative restructure (Note 21) 33,992 Emerging interest in the period (note 3(i)) 2,519

Net carrying amount at end of the period 36,511

13. Payables

Accrued salaries, wages and on-costs 103 Trade Creditors 7,633 Accruals 403,212 Other creditors 10,227

421,175

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables, are disclosed in Note 22.

164 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

2012 $’000 14. Borrowings

Current Borrowings NSW TCorp borrowings 110,745 Finance leases 60,948

Borrowings - current 171,693

Non-current borrowings NSW TCorp borrowings 153,104 Finance leases 897,544

Borrowings - non-current 1,050,648

Repayment of Borrowings Not later than one year 171,693 Between one and five years 270,492 Later than five years 780,156

Total borrowings at amortised costs 1,222,341

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables, are disclosed in Note 22.

15. Other liabilities Financial statements Financial

Current Other liabilities

Liability to Consolidated Fund (note 3(b)) 2,270 2,270 Non- current Other liabilities

Security deposit 45 45

Financial statements 165 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

16. Commitments for expenditure

(a) Capital Commitments

Aggregate capital expenditure for the acquisition of property, plant and equipment contracted for at reporting date and not provided for: 2012 $'000

Not later than one year 115,053 Later than one year and not later than five years 90,743 Total (including GST) 205,796

(b) Operating lease commitments

Not later than one year 14,437 Later than one year and not later than five years 24,738

Total (including GST) 39,175

(c) Finance lease commitments

Minimum lease payments commitments

Not later than one year 114,991 Later than one year and not later than five years 459,963 Later than five years 826,337 Minimum lease payments 1,401,291 Less: Future finance charges (442,799) Present value of minimum lease payments 958,492

The present value of finance lease commitments is as follows:

Not later than one year 60,948 Later than one year and not later than five years 250,207 Later than five years 647,337 958,492 Classified as: Current borrowings (Note 14) 60,948 Non-current borrowings (Note 14) 897,544 958,492

Future non-cancellable operating lease rentals not provided for and payable.

Operating leases include office accommodation and plant and equipment.

166 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

Input tax on all commitments estimated at $22.2m will be recouped from the Australian Taxation Office.

17. Contingent liabilities and contingent assets

In the ordinary course of business, contract disputes have been notified to and by Transport for NSW in relation to its construction activities. As the outcomes of these disputes remain uncertain, it is not practicable to estimate any potential financial effect from these disputes.

Apart from the contract disputes mentioned above, Transport for NSW does not have any contingent liability or contingent asset that would significantly impact on the state of affairs of Transport for NSW or have a material effect on these financial statements.

Guarantees and performance bonds

At reporting date Transport for NSW holds guarantees and performance bonds totalling $95.2m.

18. Budget review

As previously mentioned in Note 1(y) the budget review includes the full year results and budgets for the Department of Transport, Transport for NSW and the Transport Service of New South Wales, as this allows better transparency and meaningful disclosure of the performance of the three entities.

Department of Transport, Transport for NSW and Transport Service of New South Wales Combined Statement of comprehensive income for the year ended 30 June 2012

DoT TS TfNSW Interagency Total Actual Actual Actual eliminations Actual Budget

2012 2012 2012 2012 2012 2012 statements Financial $’000 $’000 $’000 $’000 $’000 $’000 Expenses excluding losses Operating expenses Employee related /personnel service expenses 97,406 40,465 164,255 (64,185) 237,941 201,967 Other operating expenses 33,456 - 117,246 150,702 55,082 Maintenance 104 - 1,167 1,271 - Depreciation and amortisation 16,235 - 34,678 50,913 52,453 Grants and subsidies 2,417,142 - 5,515,935 7,933,077 8,215,430 Finance costs 21,398 - 43,498 64,896 66,063 Other expenses 413,450 - 1,097,627 1,511,077 1,203,441 Total Expenses excluding losses 2,999,191 40,465 6,974,406 (64,185) 9,949,877 9,794,436

Revenue Recurrent appropriations 2,905,834 - 6,472,963 9,378,797 9,712,165 Capital appropriations - - 267,543 267,543 218,595 Sale of goods and services 1,069 - 329,637 330,706 20,740 Investment revenue 2,682 - 8,044 10,726 5,736 Personnel service/shared services revenue 72,589 35,792 108,706 (57,095) 159,992 - Retained taxes, fees and fines 1,147 - 1,018 2,165 2,042 Grants and contributions 38,184 - 27,748 65,932 45,406 Non cash employee entitlements assumed by Crown 3,437 4,673 7,090 (7,090) 8,110 2,390 Other revenue 1,285 - 2,519 3,804 3,696 Total Revenue 3,026,227 40,465 7,225,268 (64,185) 10,227,775 10,010,770

(Loss)/Gain on disposal (7) - - (7) - Net result 27,029 - 250,862 - 277,891 216,334

Total other comprehensive income for the year ------Total comprehensive income for the year 27,029 - 250,862 - 277,891 216,334

Notes:

Financial statements 167 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

DoT: Department of Transport TS: Transport Service of New South Wales TfNSW: Transport for NSW

18. Budget review (Cont’d)

Net result The actual net result for the 12 months ended 30 June 2012 was $277.9m compared to the budget of $216.3m, an under spending of $61.6m mainly due to higher revenue partly offset by the increase in the costs of operating Transport for NSW. The result was significantly impacted by the administrative restructure which included the transfer of a number of functions to Transport for NSW from the various transport operating agencies.

Contributing to this variation were the following:

x Employee related and other operating expenses were in total $131.6m higher than budget due to the transfer of certain functions to Transport for NSW from various transport operating agencies.

x Grants and subsidies were $282.3m lower than budget. This was mainly due to lower than expected Commonwealth funding for Roads and Maritime Services and the transfer of Sydney Light Rail Extension expenditure to capital.

x Other expenses were $307.6m higher than budget mainly due to expenditure incurred in relation to infrastructure projects including North West Rail Link, South West Rail Link and other rail projects.

x Sale of goods and services revenue was $309.9m higher than budget mainly due to recoupment from RailCorp for expenditure incurred in relation to infrastructure projects including North West Rail Link, South West Rail Link and other rail projects.

x The recurrent appropriations were $333.4m lower than budget. This was mainly due to lower than expected Commonwealth funding for Roads and Maritime Services and the transfer of Sydney Light Rail Extension expenditure to capital.

x The capital appropriations were $48.9m higher than budget mainly due to transfer of Sydney Light Rail Extension expenditure to capital.

168 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

18. Budget review (Cont’d)

Department of Transport, Transport for NSW and Transport Service of New South Wales Combined Statement of financial position as at 30 June 2012

DoT TS TfNSW Interagency Total Actual Actual Actual eliminations Actual Budget 2012 2012 2012 2012 2012 2012 $’000 $’000 $’000 $’000 $’000 $’000 ASSETS Current assets Cash and cash equivalents 93,856 491 234,762 329,109 68,350 Receivables 258 11,995 440,809 (98,692) 354,370 83,757 Non-current assets for sale - - 9,285 9,285 - Total current assets 94,114 12,486 684,856 (98,692) 692,764 152,107

Non - current assets Other financial assets - - 21,076 21,076 365 Property, plant and equipment Land and buildings - - 318,068 318,068 228,602 Infrastructure systems - - 55,638 55,638 83,398 Plant and equipment - - 962,088 962,088 983,684 Property, plant and equipment - - 1,335,794 1,335,794 1,295,684 Intangibles - - 171,341 171,341 14,624 Other assets - - 36,511 36,511 36,402 Total non-current assets - - 1,564,722 - 1,564,722 1,347,075

Total assets 94,114 12,486 2,249,578 (98,692) 2,257,486 1,499,182

LIABILITIES Current liabilities Payables 89,395 1,564 421,175 (98,692) 413,442 122,184 statements Financial Provisions 4,719 10,922 - 15,641 4,294 Borrowings - - 171,693 171,693 30,000 Other 2,270 2,270 - Total current liabilities 94,114 12,486 595,138 (98,692) 603,046 156,478

Non-current liabilities Borrowings - - 1,050,648 1,050,648 951,312 Other - - 45 45 45 Total non-current liabilities - - 1,050,693 - 1,050,693 951,357

Total liabilities 94,114 12,486 1,645,831 (98,692) 1,653,739 1,107,835

Net assets - - 603,747 - 603,747 391,347

EQUITY Accumulated funds - - 603,747 603,747 391,347 Total Equity - - 603,747 - 603,747 391,347

Notes: DoT: Department of Transport TS: Transport Service of New South Wales TfNSW: Transport for NSW.

Financial statements 169 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

18. Budget review (Cont’d)

Assets and liabilities

The main variations in the Statement of financial position are set out below:

The main reason for the increase in assets ($758.3m) and liabilities ($545.9m) was the administrative restructure, involving a number of transport entities including the Transport Construction Authority and the Public Transport Ticketing Corporation.

170 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

18. Budget review (Cont’d)

Cash flows

Department of Transport, Transport for NSW and Transport Service of New South Wales Combined Statement of cash flows for the year ended 30 June 2012

DoT TS TfNSW Interagency Total Actual Actual Actual eliminations Actual Budget 2012 2012 2012 2012 2012 2012 $’000 $’000 $’000 $’000 $’000 $’000

Cash flows from operating activities Payme nts Employee related/Personnel service expenses (95,753) (36,109) (142,572) 57,095 (217,339) (203,834) Grants and subsidies (2,439,902) - (5,846,228) (8,286,130) (8,194,745) Finance costs (21,390) - (43,498) (64,888) (66,063) Bus payments (392,078) - (813,921) (1,205,999) (1,221,715) Other (138,052) - (115,409) (253,461) (180,086) Total Payments (3,087,175) (36,109) (6,961,628) 57,095 (10,027,817) (9,866,443)

Receipts Recurrent appropriation 2,905,834 - 6,472,963 9,378,797 9,712,165 Capital appropriation - - 267,543 267,543 218,595 Cash transfers to the Consolidated Fund (2,784) - 2,270 (514) (2,784) Sales of goods and services/ Personnel services 245,732 36,600 400,057 (57,095) 625,294 148,220 Grants and contributions 21,091 27,919 49,010 47,458 Retained taxes, fees and fines 1,147 - 1,018 2,165 2,101 Interest received 3,056 - 3,967 7,023 5,867 Total Receipts 3,174,076 36,600 7,175,737 (57,095) 10,329,318 10,131,622

Net cash inflows from operating activities 86,901 491 214,109 - 301,501 265,179

Cash flows from investing activities Purchases of land and buildings, plant and equipment and infrastructure systems (5,807) - (241,260) (247,067) (218,595) statements Financial Purchase of finance leased assets (15,219) - (32,784) (48,003) (48,352) Advances made (12) - (460) (472) - Purchases of investments - - (20,004) (20,004) - Net cash outflows from investing activities (21,038) - (294,508) - (315,546) (266,947)

Net (decrease)/ increase in cash 65,863 491 (80,399) (14,045) (1,768) Opening cash and cash equivalents 70,118 - - 70,118 70,118 Cash transfer in through administrative restructure (42,125) - 315,161 273,036 - Closing Cash balance 93,856 491 234,762 - 329,109 68,350

Notes: DoT: Department of Transport TS: Transport Service of New South Wales TfNSW: Transport for NSW.

Financial statements 171 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

18. Budget review (Cont’d)

Cashflows

The closing cash balance was $260.8m higher than budget. This was mainly due to administrative restructures involving a number of other transport entities.

A variation was also evidenced in total payments of $161.4m, with was mainly due to increased grants and subsidies ($91.4m) and other payments ($73.4m).

There was also a variation in total receipt of $197.7m, which was mainly due to an increase in revenue from sales of goods and services ($477.1m), which was partly offset by a decrease in the recurrent and capital appropriation ($284.4m).

19. Reconciliation of cash flows from operating activities to net result

2012 $’000

Net cash inflow from operating activities 214,109

Non -cash revenue 2,519 Depreciation and amortisation (34,678) Increase/(Decrease) in receivables 253,470 (Increase)/Decrease in creditors (184,558)

Net Result 250,862

20. Administered assets and liabilities

Administered assets

Cash 270

Total administered assets 270

Administered liabilities

Cash 270

Total administered liabilities 270

172 Transport for NSW Annual Report 2011–12 - 2012 Total Sydney Metro Ticketing Corporation Public Transport Public Transport & Infrastructure Depart. Land of RailCorp Transport for NSW for Transport 823,209 (828,853) 5,644 - - 41,848 Authority Transport Transport Financial statements Financial Construction Construction Notes to the financial statements financial to the Notes 167,787 231,112 (105,851) - 8,109 208,868 510,025 167,239 93,597 - - 134,701 - 395,537 860,253 - - - 153,104 - 1,013,357 027,492 93,597 - - 287,805 - 1,408,894 1,061,762 866,568 (828,853) 5,644 146,633 - 1,251,754 For the period from 1 November 2011 to 30 June 2012 2011 to 30 June 1 November from period the For Transport Depart. of ansport forfollows: NSW as ansport were ilities ilities transferred to Tr Plant and equipment 910,457 - - - - - 910,457 Land and buildings systemsInfrastructure 41,848 56,017 43,359 - - - 99,376 ASSETSCurrent assets Cash and cash equivalentsReceivablesNon-current assets sale held for (note 8) - 42,125 $’000 168,165 9,285 125,662 $’000 (105,851) 53,662 - $’000 - - $’000 - 1,854 $’000 - 208,868 - $’000 315,161 6,255 - $’000 - 9,285 185,579 Total current assets current Total Non - current assets current - Non Financial assets 572 - - - - 572 Property, plant and equipment Property, plant and equipment (note 10) 1,008,322 866,568 (828,853) 5,644 - - 1,051,681 Total assetsLIABILITIES liabilities Current PayablesBorrowings liabilities current Total liabilities current - Non Borrowings 1,229,549 1,097,680 119,535 47,704 (934,704) 860,208 93,597 5,644 - - - 154,742 - 208,868 - - 1,761,779 - 23,956 - 110,745 153,104 - - 237,088 - 158,449 1,013,312 Intangibles (note 11)Other assets (note 12)Total assets current non - 18,876 33,992 ------146,633 - - - 165,509 33,992 Other 45 - - - - - 45 Total liab current non - Total liabilitiesTotal Net assets 1, 202,057 1,004,083 (934,704) 5,644 (133,063) 208,868 352,885 21. Administrative restructure and liab assets Net

Financial statements 173 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

22. Financial instruments

Transport for NSW’s principal financial instruments are outlined below. These financial instruments are required to finance Transport for NSW’s operations.

Transport for NSW does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The operational activities of Transport for NSW expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate risk and currency risk). The main risks arising from these financial instruments are outlined below together with Transport for NSW’s objectives, policies and processes for measuring and managing risk.

Methods used to measure risk include sensitivity analysis in the case of interest rate, foreign exchange and other commodity price risks, and an ageing analysis for credit risk. Further quantitative and qualitative disclosures are included throughout these financial statements.

The Director General of the Transport for NSW has overall responsibility for the establishment and oversight of risk management and review and determine policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the reporting entity, to set limits and to monitor risks. Compliance with these policies is reviewed by internal audit.

(a) Financial instrument categories 2012 $'000

Financial Assets Notes Category Carrying Amount

Class: Cash and cash equivalents 6 N/A 234,762 Receivables 7 Loans and receivables (at amortised cost) 418,384 Other financial assets 9 Loans and receivables (at amortised cost) 21,076

674,222

174 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

22. Financial instruments (cont’d)

(a) Financial instrument categories (cont’d) 2012 $'000

Financial Liabilities Notes Category Carrying Amount

Class: Payables 13 Financial liabilities measured at amortised cost 421,175 Borrowings 14 Financial liabilities measured at 1,222,341 amortised cost 1,643,516

During the period from 1 November to 30 June 2012, there were no defaults on any loans payable.

(b) Credit risk

Credit Risk arises where a debtor or counterparty does not complete their obligations, resulting in financial loss to Transport for NSW.

Credit risk can arise from financial assets of the reporting entity, including cash and cash equivalents, deposits with banks and NSW TCorp, as well as credit exposure to customers, including outstanding receivables and committed transactions. Transport for NSW holds bank guarantees for significant customers as well as property bonds for some leased premises. Transport for NSW has not granted any financial guarantees.

Credit risk policy is aimed at minimising the potential for counter party default. statements Financial

Credit risk associated with Transport for NSW’s financial assets, other than receivables, is managed through the sound selection of counterparties and establishment of minimum credit rating standards. All debt management and investment activities are undertaken with NSW TCorp, which is guaranteed by the NSW Government.

Credit risk impacts on the following financial instruments which are discussed below:

Cash

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthly average NSW TCorp 11am unofficial cash rate, adjusted for a management fee to NSW Treasury.

Financial statements 175 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

22. Financial instruments (cont’d)

(b) Credit risk (cont’d)

Receivables - trade debtors

All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the reporting entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors. Sales are generally made on 30 day terms.

Transport for NSW is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Debtors that are not past due ($115.4m) are not considered impaired. $0.6m was considered impaired for debtors not more than 6 months overdue ($17.5m).

The only financial assets that are past due or impaired are ''sales of goods and services'' in the ''receivables'' category of the statement of financial position.

Past due but Considered Total 1,2 not impaired Impaired 2012 $'000 $'000 $'000

< 3 months overdue 15,549 15,121 428 3 months - 6 months overdue 1,983 1,810 173

17,532 16,931 601

1 Each column in the table reports ''gross receivables''.

2 The aging analysis excludes receivables that are not past due and not impaired. Therefore the total will not reconcile to the receivables total recognised in the Statement of Financial Position.

(c) Liquidity risk

Liquidity Risk is the risk that Transport for NSW will be unable to meet its payment obligations when they fall due. Transport for NSW continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances.

Transport for NSW has access to credit facilities with NSW TCorp of $308m of which $263.8m had been used at reporting date.

176 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

22. Financial instruments (cont’d)

(c) Liquidity risk (cont’d)

Maturity analysis and interest rate exposure of financial liabilities Interest Rate Exposure Maturity Dates Weighted Fixed Variable Non- Average Nominal Interest Interest Interest Effective Int. Amount Rate Rate bearing <1 year 1-5 years >5 years 2012 Rate $'000 $'000 $'000 $'000 $'000 $'000 $'000 Payables: Accrued salaries, wages and on-costs - 103 - - 103 103 - - Trade creditors - 7,633 - - 7,633 7,633 - - Accrued expenses - 403,212 - - 403,212 403,212 - - Other current payables - 10,227 - - 10,227 10,227 - - Borrowings: Come and Go facility - Litigation 4.60% 32,100 - 32,100 - 32,100 - - Come and Go facility -Other 4.62% 6,150 - 6,150 - 6,150 - - TCorp borrowings - short term 4.62% 72,495 - 72,495 - 72,495 - - TCorp borrowings - long term 5.26% 235,497 235,497 - - - 24,814 210,683 Finance leases - 958,492 958,492 - - 60,948 250,207 647,337

1,725,909 1,193,989 110,745 421,175 592,868 275,021 858,020

(d) Market risk

Market risk relates to fluctuations in the fair value of future cash flows of financial instruments because of changes in market prices. Transport for NSW’s exposures to market risk are primarily through interest rate risk on Transport for NSW’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment Facilities.

The effect on net result and equity due to a reasonably possible change in risk variable is outlined in the information provided below, for interest rate risk and other price risk including

currency movements. A reasonably possible change in risk variable has been determined after statements Financial taking into account the economic environment in which Transport for NSW operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the balance date. The analysis assumes that all other variables remain constant

Transport for NSW is exposed to market risks in respective of Interest rate risk on the Transport for NSW’s borrowings. Transport for NSW has no exposure to foreign currency risk and does not enter into commodity contracts.

Exposure to interest rate risk arises primarily through Transport for NSW’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW Treasury Corporation (NSW TCorp).

Financial statements 177 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

22. Financial instruments (cont’d)

(d) Market risk (cont’d)

(i) Interest rate risk Exposure to interest rate risk arises primarily through Transport for NSW’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW Treasury Corporation (NSW TCorp).

Transport for NSW’s s exposure to interest rate risk is set out in the table below.

-1% 1% Carrying amount Profit Equity Profit Equity $'000 $'000 $'000 $'000 $'000 2012 Financial assets Cash and cash equivalents 234,762 (1,081) (1,081) 1,081 1,081 Receivables 418,384 - - - - Other financial assets 21,076 - - - - Financial liabilities Payables 421,175 - - - - Financial liabilities at amortised cost 1,222,341 384 384 (384) (384)

(ii) Other price risk – TCorp Hour-Glass facilities Exposure to other price risk primarily arises through the investment in the TCorp Hour-Glass Cash Facility, which is held for up to 1.5 years.

The unit price of each facility is equal to the total fair value of the net assets held by the facility divided by the number of units on issues for that facility. United prices are calculated and published daily.

NSW TCorp is trustee for each of the above facilities and is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. However, TCorp acts as manager for part of the Cash and Strategic Cash Facilities and also manages the Australian Bond portfolio. A significant portion of the administration of the facilities is outsourced to an external custodian.

Investment in the Hour-Glass facilities limits Transport for NSW’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments.

NSW TCorp provides sensitivity analysis information for each of the investment facilities, using historically based volatility information. The NSW TCorp Hour-Glass Investment facilities are designed at fair value through profit and loss and, therefore, any change in unit price impacts directly on the result (rather than equity). A reasonably possible change is based on the percentage change in unit price (as advised by NSW TCorp) multiplied by the redemption value as at 30 June each year for each facility.

Given that the TCorp Hour-Glass Cash Facility is held for a short period of time, the impact on any price changes on the net result would be immaterial.

178 Transport for NSW Annual Report 2011–12 Transport for NSW Notes to the financial statements For the period from 1 November 2011 to 30 June 2012

22. Financial instruments (cont’d)

(d) Market risk (cont’d)

(ii) Other price risk – TCorp Hour-Glass facilities (cont’d)

Transport for NSW has assessed the fair value of its financial instruments on the basis of inputs other than quoted prices that are observed directly or indirectly (Level 2) with TCorp Hour-Glass Cash Facility disclosed at $219.8m.

23. After balance date events

Under the Transport Administration Amendment Act 2011, Country Rail Infrastructure Authority (CRIA) ceased to operate on 1 July 2012 with all the assets, rights, liabilities and functions of CRIA (net assets of $1,819.7m) transferred to Transport for NSW. In addition, the Public Transport Ticketing Corporation also ceased to exist on 1 July 2012 with its responsibilities and functions also transferred to Transport for NSW.

The NSW Government has awarded the contract for the operations of the Sydney Ferries to a private operator with effect from 28 July 2012. The contract will run for 7 years with the NSW Government retaining ownership of the Sydney Ferries vessels and Balmain shipyard. Transport for NSW will be responsible for fares control and setting service levels for the new operator. Further details on this contract can be found in Note 18 in the 2011-12 financial statements of Sydney Ferries.

End of audited financial statements Financial statements Financial

Financial statements 179 Transport Service of New South Wales

180 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 181 182 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 183 184 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 185 186 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 187 188 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 189 190 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 191 192 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 193 194 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 195 196 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd Financial statements Financial

Financial statements 197 198 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Statement of comprehensive income

For the period from 12 March 2012 to 30 June 2012

Financial statements Financial

This statement should be read in conjunction with the notes to the financial statements.

1

Financial statements 199

A.C.N. 156 211 906 Pty Ltd

Statement of financial position

As at 30 June 2012

This statement should be read in conjunction with the notes to the financial statements.

200 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Statement of changes in equity

For the period from 12 March 2012 to 30 June 2012

Financial statements Financial

This statement should be read in conjunction with the notes to the financial statements.

Financial statements 201 A.C.N. 156 211 906 Pty Ltd

Statement of cash flows

For the period from 12 March 2012 to 30 June 2012

This statement should be read in conjunction with the notes to the financial statements.

202 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

1. Corporate Information

A.C.N. 156 211 906 Pty Ltd (the parent company) is a for-profit proprietary company limited by shares and domiciled in Australia. The company was incorporated on 12 March 2012 and is fully owned subsidiary of Transport for NSW, a general government sector agency of the NSW Government. The company’s ultimate parent is the NSW Government and it is consolidated as part of the Total State Sector Accounts. The registered address of the company is Level 6, 16-18 Lee Street Chippendale NSW 2008.

On 23 March 2012 Transport for NSW, acting on behalf of A.C.N. 156 211 906 Pty Ltd, paid $19.738m for the 100% acquisition of Metro Transport Sydney Pty Ltd and its Group, the owners of the Light Rail and Monorail Systems in Sydney (Note 9). A.C.N. 156 211 906 Pty Ltd issued 20m shares of $1 each fully paid to Transport for NSW to fund this acquisition and related stamp duty costs (Notes 9 and 16).

As a result of this acquisition the principal activities of A.C.N. 156 211 906 Pty Ltd and its wholly owned subsidiaries (the Group) comprise the operations and management of the Light Rail and Monorail Systems in Sydney. The Group comprises:

The parent entity: A.C.N. 156 211 906 Pty Ltd

The subsidiaries: Metro Transport Sydney Pty Ltd Sydney Light Rail Co Pty Ltd Pyrmont Light Rail Co Ltd SLR Corporate Development Pty Ltd Light Rail Construction Co Pty Ltd Metro Transport Security Co Pty Ltd

The consolidated financial statements cover the period from 12 March 2012 to 30 June 2012 and statements Financial were approved and authorised for issue by the board of directors on 10 October 2012.

2. Summary of Accounting Policies

(a) Basis of preparation

The consolidated financial statements are general purpose financial statements prepared on an accruals basis and in accordance with applicable Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Regulation 2010.

The consolidated financial statements have been prepared on the basis of historical cost except for property, plant and equipment. The methods used to measure the fair values of these assets are discussed in Note 2 (n).

The financial statements are presented in Australian dollars, which is the Group’s functional currency. All values are rounded to the nearest thousand dollars ($’000) unless otherwise stated.

Financial statements 203 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (Cont’d)

(b) Statement of Compliance

The consolidated general purpose financial statements of the Group have been prepared in accordance with the requirements of Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

(c) Basis of consolidation

The Group financial statements consolidate those of the parent entity and all of its subsidiary companies (Note 1 above) for the period from 12 March 2012 to 30 June 2012. Subsidiary companies are all the entities which the Group has the power to control the financial and operating policies. The Group obtains and exercises control through 100% ownership of the voting rights and the power to appoint the board of directors. All subsidiaries have a reporting date 30 June.

All transactions and balances between the Group companies are eliminated on consolidation. Amounts reported in the financial statements have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

(d) Significant accounting judgements, estimates and assumptions

In the application of accounting standards, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various factors that are believed to be reasonable under the current set of circumstances. Actual results may differ from these estimates.

Management evaluates these judgements, estimates and assumptions on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision effects both current and future periods.

Significant judgements, estimates and assumptions made by management in the preparation of the consolidated financial statements and included in the appropriate notes are outlined below:

Business combinations: Management uses valuation techniques in determining the fair value of the various elements of a business combination (Note 2(e) and Note 9). Valuation uncertainty relates to cost estimations and assumptions about the condition of the assets.

Impairment: In assessing impairment, management estimates the recoverable amount of each asset or cash generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

204 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(d) Significant accounting judgements, estimates and assumptions (Cont’d)

Useful lives of depreciable assets: Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the asset. Uncertainties in these estimates relate to economic useful life of the assets.

(e) Business combinations

The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred and liabilities incurred, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The reporting entity recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Management engaged external professional advisors to advise on the fair value of the net assets acquired.

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of (a) fair value of consideration transferred and (b) the recognised amount of any non-controlling interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in profit or loss immediately. Financial statements Financial

Goodwill acquired in a business combination is not amortised. Instead, it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

(f) Revenue

Revenue is recognised when the Group is legally entitled to the income and the amount can be quantified with reasonable accuracy. Revenues are recognised net of the amounts of goods and services tax (GST) payable to the Australian Taxation Office. The Group’s principal sources of revenue are:

(i) Rendering of services

The Group’s primary source of revenue is the sale of fares to passengers using the Light Rail and Monorail systems in Sydney. Revenue from the provision of this service is recognised as revenue when the cash consideration is received or receivable.

(ii) Sale of advertising space

Revenue from sale of advertising space is recognised as revenue when the service is provided.

Financial statements 205 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(f) Revenue (cont’d)

Fees for the provision of services received but not earned in the period are recognised as income in advance under current liabilities (Note 15).

(g) Expenses

Operating expenses comprise management fees payable to the operator of the Light Rail and Monorail systems, depreciation, employee entitlements, maintenance and administration and marketing expenses. Operating expenses are recognised in profit or loss on an accrual basis as services are utilised.

(h) Insurance

The Group arranges insurance cover for property, public liability, workers’ compensation through a private insurance company.

(i) Taxation Tax equivalent As a NSW Government owned Group, the Group is exempt from paying Commonwealth income tax on profits. However, the for-profit Group is subject to the NSW Tax Equivalent regime so that tax at prevailing rate of company income tax (30% for 2011-12) is payable on the accounting profit earned to the NSW Office of State Revenue. Under this tax equivalent regime deferred tax assets and liabilities are not recognised in the financial statements.

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office, in which case it is recognised as part of the cost of acquisition of an asset or as part of an item of expense.

Receivables and payables are recognised inclusive of GST. The net amount of GST recoverable from or payable to the Australian Taxation Office is included as part of receivables or payables.

Cash flows are included in the statement of cash flows on a gross basis inclusive of GST. The GST component of cash flows arising from investing and financing activities which is recoverable from or payable to the Australian Taxation Office is classified as operating cash flows.

(j) Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

206 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(k) Trade and other receivables

Trade receivables, which comprise amounts due from sales of goods and from services provided to customers, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. Normal terms of settlement are 30 days. The carrying amount of the receivable is deemed to reflect fair value.

An allowance for impairment is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.

(l) Investments in and receivables from subsidiaries

Investments in and receivables from subsidiaries are stated at cost less an allowance for impairment. Cost is the fair value of the consideration paid for the purchase of the interests in the subsidiaries. Consideration is generally cash paid.

(m) Inventory

Inventory of spare parts used for asset maintenance is valued at lower of cost and net realisable value.

(n) Property, plant and equipment

Property, plant and equipment relate mainly to the Light Rail and Monorail systems in Sydney and comprise mainly rolling stock and related plant and equipment (rail infrastructure assets).

Capitalisation and initial recognition The cost method of accounting is used for the initial recording of all acquisitions of assets

controlled by the Group in accordance with AASB 116 Property, Plant and Equipment. Cost is the statements Financial amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost or for a nominal consideration are initially recognised at their fair value at the date of acquisition.

Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction as at the valuation date.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment amount is effectively discounted at an asset-specific rate.

The cost of assets constructed for own use includes the purchase cost, other directly attributable costs and the initial estimate of dismantling and restoration costs. Borrowing costs on qualifying assets are capitalised during the construction period.

Financial statements 207 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(n) Property, plant and equipment (cont’d)

Property, plant and equipment and intangible assets with a greater value than $300 are assessed on a case-by-case basis to determine whether the expenditure should be capitalised or not.

Subsequent valuation of property, plant and equipment Following initial recognition at cost, rail infrastructure assets carried at a revalued amount which is the fair value at the date of the revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses.

In the absence of market-based evidence of the fair value, the Group uses the income approach to estimate the fair value of property, plant and equipment.

Buildings and plant and equipment with short working lives are measured at depreciated historical cost as a surrogate for fair value.

Revaluation of property, plant and equipment The Group revalues property, plant and equipment at least every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Revaluations are performed by independent and / or in-house professionally qualified valuers.

Rail infrastructure assets which include mainly rolling stock and related plant and equipment are treated as one class of assets for the purpose of these financial statements. Revaluation increments are credited directly to the asset revaluation reserve, except to the extent that, where an increment reverses a revaluation decrement for an asset previously recognised as a loss in the statement of comprehensive income, the increment is recognised as a gain in the statement of comprehensive income.

Revaluation decrements are recognised immediately in the statement of comprehensive income, except that they are debited directly to the asset revaluation reserve to the extent that a credit exists in the asset revaluation reserve in respect of the asset.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to equity.

Depreciation of property, plant and equipment All material separately identifiable components of assets are depreciated over their shorter useful lives. A component is accounted for separately if it has a useful life materially different from that of the prime asset and, therefore, requires separate replacement during the life of the prime asset; is material enough to justify separate tracking; and is capable of having a reliable value attributed to it. A dedicated spare part does not normally have a useful life of its own.

Items of property, plant and equipment are depreciated over their useful lives to the Group commencing from the time the asset is held ready for use. Depreciation is calculated on a straight line basis over the expected useful economic lives of the assets as follows:

% Rail Infrastructure assets 6.15 The assets residual values, useful lives and depreciation methods are reviewed, and adjusted, if appropriate, at each financial year end.

208 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(n) Property, plant and equipment (cont’d)

Impairment The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, with recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.

For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). The Light Rail and Monorail are the main cash generating units of the Group.

An impairment loss is recognised for the amount by which the asset’s or cash-generating unit's carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value-in-use. To determine the value-in-use, management estimates expected future cash flows from each cash-generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Group's latest approved budget adjusted as necessary to exclude the effects of future reorganisations and asset enhancements.

Discount factors are determined individually for each cash-generating unit and reflect management’s assessment of respective risk profiles, such as market and asset-specific risks factors.

Impairment losses for cash-generating units reduce first the carrying amount of any goodwill allocated to that cash-generating unit. Any remaining impairment loss is charged pro rata to the other assets in the cash-generating unit. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment charge is reversed if the cash-generating unit’s recoverable amount

exceeds its carrying amount. statements Financial

Derecognition and disposal An item of property, plant and equipment is derecognised upon disposal when the item is no longer used in the operations of the Group or when it has no sale value. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.

Any part of the asset revaluation reserve attributable to the asset disposed of or derecognised is transferred to retained earnings at the date of disposal.

(o) Intangible assets

The Group recognises intangible assets only if it is probable that future economic benefits will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses. Where the asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition. The Group’s intangible asset relates to the right to extend and operate the Inner West Light Rail Line. This intangible asset will be amortised using the straight-line method over the period the future economic benefits from the asset are consumed by the Group. The assets are reviewed for impairment at each reporting date.

Financial statements 209 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(p) Trade and other payables

Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid. Payables are generally short-term and are recognised at fair value, usually based on the transaction cost or face value.

(q) Borrowings

Borrowings are not held for trading or designated at fair value through profit or loss. Borrowings are initially measured at the fair value of the consideration received. Borrowings are subsequently measured at amortised cost using the effective interest method.

Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of the borrowings that has been extinguished or transferred to another party and the consideration paid is recognised in the profit or loss as other income or finance costs.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

(r) Employee benefits

Employee benefits comprise wages and salaries, annual, non-accumulating sick and long service leave, and contributions to defined contributions superannuation plans.

Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that fall due wholly within twelve months of the reporting date are recognised and measured in respect of employees’ service up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.

Long-term annual leave that is not expected to be taken within twelve months is measured at present value. Market yields on government bonds are used to discount long-term annual leave.

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method.

The Group pays contributions to certain defined contribution superannuation plans. Contributions are recognised in the statement of comprehensive income when they are due. The Group has no obligation to make further contributions to these plans if the plans do not hold sufficient assets to pay all employee benefits relating to employee service in current and prior periods.

(s) Provisions

Provisions for legal disputes, onerous contracts or other claims are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain.

210 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(s) Provisions (cont’d)

Restructuring provisions are recognised only if a detailed formal plan for the restructuring has been developed and implemented, or management has at least announced the plan’s main features to those affected by it. Provisions are not recognised for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Provisions are discounted to their present values, where the time value of money is material.

Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognised.

(t) Equity and reserves

The components of equity and reserves include:

Share capital represents the fair value of shares that have been issued to Transport for NSW. Any transaction costs such as stamp duty associated with the issuing of shares are deducted from share capital.

Retained earnings include all current and prior period retained earnings.

Revaluation reserve comprises gains and losses from revaluation of property, plant and statements Financial equipment (mainly rail infrastructure assets).

Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been approved in a general meeting prior to the reporting date.

All transactions with owners are recorded separately within equity.

Financial statements 211 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

(u) New Australian Accounting Standards issued but not effective

At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have been published but are not yet effective and have not been adopted early by the Group. Management anticipates that all of the relevant pronouncements will be adopted in the Group’s accounting policies for the first period after the effective date of the pronouncement. The Group’s assessment of the impact of these new standards and interpretations is set out below:

Applicable to annual Summary of key reporting periods Impact on Group Standard requirements/changes beginning on or after financial statements

AASB 9 Financial AASB 9 introduces new requirements The IASB has deferred Impact on the Instruments and for the classification, measurement and the effective date of consolidated financial AASB 2010-7 derecognition of financial assets and this standard to 1 statements is not Amendments to financial liabilities. January 2015. It is expected to be Australian expected that AASB significant. Accounting will also make a Standards arising similar amendment. from AASB 9

AASB 10 AASB 10 introduces a new principles- 1 January 2013 Impact on the Consolidated based control model and requires the consolidated financial Financial parent entity to present consolidated statements is not Statements financial statements as those of a significant. single economic entity.

AASB 11 Joint AASB 11 aligns more closely the 1 January 2013 Impact on the Arrangements accounting by investors with their consolidated financial rights and obligations in the joint statements is not venture. The standard requires the use significant. of equity accounting method.

AASB 12 AASB 12 introduces new disclosures 1 January 2013 May impact on the type Disclosure of about the nature and financial effects of information Interests in other of an entity’s investment in other disclosed. Entities entities.

AASB 127 The new standard prescribes the 1 January 2013 Impact on the Separate accounting and disclosure consolidated financial Financial requirements for investments in statements is not Statements subsidiaries, joint ventures and significant. associates when an entity prepares separate financial statements (in addition to consolidated financial statements).

212 Transport for NSW Annual Report 2011–12

A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

2. Summary of Accounting Policies (cont’d)

Applicable to annual Summary of key reporting periods Impact on Group Standard requirements/changes beginning on or after financial statements

AASB 128 This Standard prescribes the 1 January 2013 The impact on the Investments in accounting for investments in Group’s financial Associates and associates and defines “significant statements is not Joint ventures influence”. significant.

AASB 13 Fair The Standard defines fair value, 1 January 2013 It is not possible at this Value establishes a single framework or stage to quantify the Measurement guidance for the measuring of fair impact on the carrying and AASB 2011- value and requires enhanced amounts of the Group’s 8. disclosures about fair value revalued assets. measurements.

AASB 119 This Standard will mainly impact the 1 January 2013 with Not applicable to the Employee accounting for defined benefit pension retrospective. Group as it does not Benefits AASB schemes. have defined benefits 2011-10 and . superannuation plans. AASB 2011-11

AASB 1053 and AASB 1053 requires entities that Group prepares AASB 2010-2 prepare general purpose financial general purpose regarding statements to adopt Tier 1 (full financial statements differential compliance with AASB) or Tier 2 that comply with the reporting (Reduced Disclosure Requirements). AASB. statements Financial

AASB 2010-8 The amendments in AASB 2010-8 Not applicable to regarding relate to the measurement of deferred Group as it is subject deferred tax tax assets and deferred tax liabilities to the NSW Tax that arise from investment property Equivalent Regime being measured at fair value (Accounting Profit Model).

AASB 2010-10 AASB 2010-10 amendments affect 1 January 2013 Not applicable to regarding AASB 1 First Time Adoption of Group removal of fixed Australian Accounting Standards and dates for first time provide relief for first-time adopters of adopters Australian Accounting Standards.

AASB 2011-9 The main change is that, in the 1 July 2012 Impact on the Amendments to Statement of Comprehensive Income, consolidated financial Australian the “Other Comprehensive Income” statements is not Accounting section will need to be presented in significant. Standards – two sub-sections, based on whether Presentation of the items may be recycled to net result Items of Other in the future. Comprehensive Income

Financial statements 213 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

3. Expenses

Expenses consist of:

214 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

4. Tax Equivalent expense

5. Cash and cash equivalents Financial statements Financial

6. . Trade and other receivables

Impairment allowances recognised at the reporting date have been determined after a review of amounts outstanding. The movement in the allowance for impairment in respect of trade debtors during the period was as follows:

Financial statements 215 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

6. . Trade and other receivables (cont’d)

Details regarding credit risk, liquidity risk and market risk including financial assets that are either past due or impaired are disclosed in Note 21.

7. Other financial assets

Other financial assets comprise the parent entity’s investment in Metro Transport Sydney Pty Ltd Group and are reported as follows:

Current at cost:

The short-term interest bearing loan is repayable on 31 July 2012.

Non-current at cost:

Non-current other financial assets represent the fair value consideration ($19.7m) paid by A.C.N. 156 211 906 Pty Ltd for the acquisition of Metro Transport Sydney Pty Ltd and its Group (Notes 1 and 9).

The non-current other financial assets are unsecured and are stated at cost less provision for impairment. At balance date there were no indicators that the other financial assets were impaired which would have required an impairment loss to be recognised in the profit or loss.

Details regarding credit risk, liquidity risk and market risk including financial assets that are either past due or impaired are disclosed in Note 21.

8. Inventory

216 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

9. Business combination

On 23 March 2012, A.C.N. 156 211 906 Pty Ltd acquired control of the Metro Transport Sydney Pty Ltd group, a NSW based group that owned the Monorail and Light Rail Systems in Sydney. The primary reason for the business combination was to gain right to proceed with the development of the Light Rail system in the inner western extension.

Transport for NSW, acting on behalf of the company, paid $19.7m to the owners of Metro Transport Sydney Pty Ltd group. Details of the recognised assets and liabilities of the Metro Transport Sydney Pty Ltd group at 23 March 2012, the date of acquisition were as follows:

Financial statements Financial

Financial statements 217 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

9. Business combination (cont’d)

The following table summarises the revenue and loss of the Metro Transport Sydney Pty Ltd group for the period from 1 July 2011 to 23 March 2012 (the acquisition date) and for 2011-12 as if the acquisition took place on 1 July 2011.

10. Property, plant and equipment

Details of the Group’s property, plant and equipment and their carrying amounts are as follows:

The above table relates to the Group subsidiaries as the parent entity did not own any property, plant and equipment at balance date. Rail infrastructure assets include mainly rolling stock and related plant and equipment..

On 22 June, 2012, the NSW Government announced the closure of the monorail on 30 June 2013 and subsequent removal of the infrastructure to accommodate the new convention centre at Darling Harbour. Based on an independent valuation commissioned in March 2012, management does not consider that the carrying amount of the monorail infrastructure exceeds its recoverable amount at balance date and consequently no impairment charge has been recorded.

218 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

11. Intangible assets

12. Trade and other payables

Details regarding credit risk, liquidity risk and market risk including maturity analysis of the above payables are disclosed in Note 21.

13. Borrowings Financial statements Financial

Transport for NSW, on behalf of A.C.N. 156 211 906 Pty Ltd, provided a short-term interest bearing loan to Metro Transport Sydney Pty Ltd for working capital purposes. The loan is repayable to Transport for NSW on 31 July 2012.

Details regarding credit risk, liquidity risk and market risk including maturity analysis of the above borrowings are disclosed in Note 21.

14. Employee benefits

The Group has no liability for superannuation obligations apart from making the periodic statutory and contractual employer’s contributions to superannuation defined contribution plans.

Financial statements 219 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

15. Other liabilities

16. Share capital

17. Reconciliation of cash flows from operating activities

220 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

17. Reconciliation of cash flows from operating activities (cont’d)

18. Segment reporting

The Group operates in one segment – transport service, and, therefore, there is no need to prepare separate segment reporting.

19. Contingent assets and contingent liabilities

At balance date the Group did not have any material contingent assets or contingent liabilities.

On 22 June, 2012, the NSW Government announced the closure of the monorail on 30 June 2013 and subsequent removal of the infrastructure to accommodate the new convention centre at Darling Harbour. As a result the Group may have a contingent liability as at 30 June 2012 in respect of the decommissioning and removal of the Monorail. At this stage the financial impact of statements Financial this decision cannot be quantified.

20. Commitments

At balance date the Group did not have any material commitments.

21. Financial Instruments

(a) Financial risk management – objectives and policies

The Group’s financial instruments comprise cash and cash equivalents, trade and other receivables, trade and other payables and borrowings.

The Group board of directors has overall responsibility for risk management, including risks associated with financial instruments. Risk management policies are established to identify and analyse the risks associated with the Group’s financial instruments, to set appropriate risk limits and controls and to monitor the risks and adherence to limits.

The Group’s current exposure to liquidity risk, credit risk and market price risk are insignificant as detailed below Accordingly the Group does not use derivative instruments to manage risks associated with its financial instruments.

Financial statements 221 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

21. Financial Instruments (cont’d)

This note presents information about the Group’s exposure to liquidity, credit and market price risk and its objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included throughout these financial statements.

(b) Financial Instruments categories:

(c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to fund its obligations as they fall due.

The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate liquid funds are available to meet normal operating expenses. Where the forecast cash flows have identified a liquidity shortfall, the Group board submits a funding request to Transport for NSW, as the sole shareholder, for bridging finance to meet this shortfall.

(d) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

The Group manages credit risk by monitoring regularly its trade and other receivables. The Group’s credit risk is minimal on the basis of materiality of the Group’s trade and other receivables. The Group does not carry “past due” or impaired debtors at balance date.

(e) Market price risk

Market price risk is the risk that changes in market prices such as interest rates, foreign exchange rates, and equity prices will affect the Group’s income or the value of its holdings of financial instruments.

The Group is not exposed to changes in market prices that will affect the Group’s financial performance as detailed below:

222 Transport for NSW Annual Report 2011–12 A.C.N. 156 211 906 Pty Ltd

Notes to the financial statements

For the period from 12 March 2012 to 30 June 2012

21. Financial Instruments (cont’d)

(i) Interest rate risk

Interest rate risk refers to the risk that the value of financial instruments or cash flows associated with the instrument will fluctuate due to changes in market interest rates.

The Group has no material exposure to interest rate fluctuations on its cash at bank and cash on deposit. It does not have a material risk in relation to its interest-bearing loans.

Sensitivity analysis: A change of 1% in interest rates at the reporting date would, with all other variables held constant, would have minimal impact on the Group’s profits.

(ii) Currency risks

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Group has no material exposure to currency risks because it sources its goods and services in Australia.

(iii) Equity price risk

Equity price risk arises from fluctuations in the market values of available-for-sale securities.

The Group does not hold available-for-sale securities and, therefore, has no exposure to equity price risks.

22. Related parties and related-party transactions

(a) Directors’ compensation statements Financial The directors who are all officers of the Transport for NSW, act in an honorary capacity and receive no compensation for their services or reimbursement of incidental expenses.

(b) Transactions with director related entities and economic dependency

All transactions between the Group and director related entities are disclosed in Note 7 above. The Group is dependent on the ongoing strategic, financial, and technical support of Transport for NSW to ensure the continuance of its operations. The directors of A.C.N. 156 211 906 Pty Ltd are also officers of Transport for NSW.

(c) Key management personnel compensation

Mr K. Warrell is the Chief Executive of the Metro Transport Sydney Pty Ltd and its Group. The compensation paid to Mr K Warrell was $68K.

23. After balance date events

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.

End of audited financial statements

Financial statements 223 224 Transport for NSW Annual Report 2011–12 Sydney Metro Financial statements Financial

Financial statements 225 226 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 227 228 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 229 230 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 231 232 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 233 234 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 235 236 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 237 238 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 239 240 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 241 242 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 243 244 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 245 246 Transport for NSW Annual Report 2011–12 Financial statements Financial

Financial statements 247 248 Transport for NSW Annual Report 2011–12 Appendices Appendices

Appendices 249 Contents

Appendix 1: Acts administered by the Appendix 17: Human Resources 295 Minister for Transport and the Minister for Roads and Ports. 251 Appendix 18: Equal Employment Opportunity (EEO) 297 Appendix 2: Government Information (Public Access) Act 2009 254 Appendix 19: Occupational Health and Safety (OHS) 305 Appendix 3: Privacy and Personal Information Protection Act 1998 257 Appendix 20: Disability Plan 306

Appendix 4: Public Information Disclosures Appendix 21: Multicultural Policies and Act 1994 258 Services Program 308

Appendix 5: Management and structure, Appendix 22: Agreements with the including Executive Community Relations Commission 309 Performance Statements 259 Appendix 23: Implementation of price Appendix 6: Management and activities 276 determinations 310

Appendix 7: Response to matters raised by Appendix 24: Payment of accounts 311 Auditor General 289 Appendix 25: Time for payment of accounts 311 Appendix 8: After balance date events 289 Appendix 26: Grants to non-government Appendix 9: Exemptions from the Financial community organisations 313 Reporting Code 289 Appendix 27: Overseas travel by TfNSW offi cers 317 Appendix 10: Major assets 290 Appendix 28: Payments to consultants 318 Appendix 11: Land disposals 290 Appendix 29: Research and development 319 Appendix 12: Disclosure of controlled entities 290 Appendix 30: Waste Reduction 320 Appendix 13: Disclosure of subsidiaries 290 Appendix 31: Bus contract region map 321 Appendix 14: Internal audit and risk Appendix 32: CityRail network map 322 management disclosure 291 Appendix 33: CountryLink network map 323 Appendix 15: Risk management and insurance 293 Appendix 34: Sydney Ferries network map 324 Appendix 16: Credit card certifi cation by the Director General 294 Appendix 35: Regional air services map 324

250 Transport for NSW Annual Report 2011–12 Appendix 1: Acts administered by the Minister for Transport and the Minister for Roads and Ports.

This appendix also includes legislative change and signifi cant judicial decisions.

The following Acts are allocated to the Minister for Transport as at 20 June 2012*

• Air Navigation Act 1938 • Civil Aviation (Carriers’ Liability) • Railway Construction (Maldon to Act 1967 Port Kembla) Act 1983 • Air Transport Act 1964 • National Rail Corporation • Transport Administration Act 1988 • Broken Hill to South Australian (Agreement) Act 1991 (except Parts administered by the Border Railway Agreement Minister for Roads and Ports) Act 1968 • Parking Space Levy Act 2009

• City of Sydney Act 1988 • Passenger Transport Act 1990 (Part 4A and Schedule 2 only – administered jointly with the • Rail Safety Act 2008 Minister for Roads and Ports)

* The Glenreagh to Dorrigo Railway (Closure) Act 1993 was repealed with eff ect from 6 January 2012.

Changes in Acts administered by the Minister for Transport 2011 – 2012

Statute Law (Miscellaneous • establish the Transport Service Transport Legislation Provisions) Act 2011 as the employment entity Amendment Act 2011 for certain transport staff Relevant provisions Parts of the Act commenced on • alter provisions for the commenced on 08.07.2011 30.03.2012 amended the Transport transfer of staff between Administration Act 1988 to: Amendments in the way of public transport agencies statute law revision to: • amend the obligation of a railway • provide for the functions of network controller to give priority Transport for NSW to include the Transport Administration Act 1988 to railway passenger services responsibility of determining the Standard Working Timetable for Addition of Schedule 10 • make consequential amendments the delivery of transport services Transferred provisions – by public transport agencies Tocumwal Railway Extension Act Statute Law (Miscellaneous for all modes of transport in the 1906 on repeal of that Act: Provisions) Act (No 2) 2011 metropolitan rail area; and • abolish the Transport Transport Legislation Commenced on 06.01.2012 Construction Authority and Amendment Act 2011 Amendments to eff ect to transfer its functions Appendices Parts of the Act commenced statute law revision to: to Transport for NSW. on 01.11.2011 to amend the • Transport Administration Act Transport Administration Act City of Sydney Act 1988 1988 – update references 1988 and other legislation to: (Part 4A and Schedule 2 only to the NSW Police Force – administered jointly with the • Specify the common objectives • Glenreagh to Dorrigo Railway Minister for Roads and Ports) and service delivery priorities (Closure) Act 1993 –repeal of public transport agencies the Act. The City of Sydney Amendment • establish Transport for NSW and (Central Sydney Traffi c and Roads and Maritime Services Transport Committee) Act 2012 and confer functions on them inserted a new Part in the City of Sydney Act 1988 establishing

Appendices 251 a Central Sydney Traffi c and co-ordination of transport and and 51N containing notifi cation Transport Committee consisting traffi c management in the Sydney and consultation requirements of representatives of the State Central Business District. which will commence on a government and the Sydney City date to be proclaimed. Council to provide for eff ective Part 4A and Schedule 2 commenced on 25.06.2012 except new sections 51L, 51M,

Changes in subordinate legislation administered by the Minister for Transport 2011 – 2012

Statute Law (Miscellaneous of the Government Service as Statute Law (Miscellaneous Provisions) Act 2011 persons to whom functions Provisions) Act (No 2) 2011 under the Passenger Transport Relevant provisions Act 1990 may be delegated. Commenced on 06.01.2012 commenced on 08.07.2011 Amendments to eff ect Amendments in the way of Passenger Transport Amendment statute law revision to: statute law revision to: (Taxi Fare Pre-payment Trial) Regulation 2011 • Transport Administration (Staff ) Passenger Transport Regulation 2005 – to remove Regulation 2007 Commenced on 28.11.2011 redundant provisions relating to the State Rail Authority To update a reference to the Amended the Passenger Institute of Public Accountants Transport Regulation 2007 to: and updates a reference to a Transport Administration certifi cate issued by that body. • provide for a trial for 12 months (General) Amendment (Light of a taxi pre-payment scheme Rail) Regulation 2012 for taxi-cabs for which a Passenger Transport booking service is provided Commenced on 23.03.2012 Amendment (Authorised by Central Coast Taxis, Persons) Regulation 2011 Declared, for the purposes of • provide for off ences, and the Transport Administration Commenced on 01.11.2011 penalty notices for off ences, Act 1988, an extension of the relating to payment of fares and route of the light rail system Amended the Passenger Transport deposits and the provision of consisting generally of a section Regulation 2007 to prescribe information under that scheme. of the Rozelle freight rail corridor persons employed in the Roads (from Balmain Road, Lilyfi eld, to and Maritime Services Division Dulwich Hill railway station).

Signifi cant judicial decisions

AJO v Director General, Department of Transport [2012] NSWADT 101

This matter was an appeal to disclosure of information that School Student Behaviour on Buses the Administrative Decisions may identify the driver or the issued under clause 99 of the Tribunal from a decision of the school children involved. Passenger Transport Regulations Director General to suspend and 2007, off ences relevant to drivers of subsequently cancel the authority The ADT reviewed the law on the buses and the published policy on to drive a bus issued to “AJO” under suspension/cancellation criterion of use of hand-held mobile phones by the Passenger Transport Act 1990. “fi t and proper person” in relation drivers of public passenger vehicles. to authorities issued to drivers The relevant events took public passenger vehicles under The original decisions were place on a school bus and the the Passenger Transport Act 1990. affi rmed by the ADT. ADT made a non-publication It also considered the operation order which prevents the of the Guidelines for Managing

252 Transport for NSW Annual Report 2011–12 Director General, Transport NSW v AIC (GD) [2011] NSWADTAP 65

This matter was an appeal from The ADT originally granted a stay of safety objective of passenger a decision of the Administrative the suspension decision and after transport regulation to the Decisions Tribunal concerning the a hearing set that decision aside. exercise of suspension powers. suspension of a taxi driver authority under section 33F of the Passenger The Appeal Panel found that the The charges against the driver Transport Act 1990 after the holder ADT had made errors of law and were dismissed before the Appeal “AIC” had been charged with two reinstated the original decision Panel published its reasons. A counts of indecent assault of a child. to suspend the driver’s authority. non-publication order prevents In particular it emphasised the disclosure of information the relevance of the public that may identify the driver.

Acts administered by the Minister for Roads and Ports

The following Acts are allocated to the Minister for Roads and Ports as at 30 June 2012.

Minister for Roads and Ports City of Sydney Act 1988 (Part 4A and Schedule 2 only – administered jointly with the Minister for Transport) Driving Instructors Act 1992 Marine Pollution Act 1987 Marine Pollution Act 2012 Marine Safety Act 1998 Marine Safety Legislation (Lakes Hume and Mulwala) Act 2001 Maritime Services Act 1935 Motor Vehicles Taxation Act 1988 Navigation Act 1901 Photo Card Act 2005 Ports and Maritime Administration Act 1995 Recreation Vehicles Act 1983 (Parts 4 and 6 only – remainder, the Minister for the Environment) Road Transport (Driver Licensing) Act 1998 Road Transport (General) Act 2005 Road Transport (Safety and Traffi c Management) Act 1999 Road Transport (Vehicle Registration) Act 1997 Roads Act 1993 (except parts, the Minister for Primary Industries, parts, the Minister for the Environment, and parts, the Minister for Local Government)

Sydney Harbour Tunnel (Private Joint Venture) Act 1987 Appendices Tow Truck Industry Act 1998 Transport Administration Act 1988, (Parts only – remainder the Minister for Transport)

Changes in Acts administered by the Minister for Roads and Ports 2011 – 2012

Details of changes to legislation administered by the Minister for Roads and Ports are included in the annual report of Roads and Maritime Services.

Appendices 253 Appendix 2: Government Information (Public Access) Act 2009

1. Review of proactive release program – Clause 7(a)

Under section 7 of the Government of information that can be made being transferred to it. As a result of Information (Public Access) publicly available. This review these changes, TfNSW is reviewing Act 2009, (GIPAA), agencies must be done at least annually. all the information it holds. The must review their programs review is also examining public for the release of government The establishment of Transport for ease of access to information. information to identify the kinds NSW on 1 November resulted in several transport-related agencies

2. Number of access applications received – Clause 7(b)

During the reporting period, TfNSW received 74 access applications (including withdrawn applications but not invalid applications).

3. Number of refused applications for Schedule 1 information – Clause 7(c)

TfNSW refused 10 access applications because the information requested was information referred to in Schedule 1 to the GIPA Act. Of those applications, seven were refused in full, and three were refused in part.

4. Statistical information about access applications – Clause 7(d) and Schedule 2

Table A: Number of applications by type of applicant and outcome* Refuse to confi rm/deny Access Access Access Information Refuse to whether granted granted refused Information already deal with information Application in full in part in full not held available application is held withdrawn Media 12 4 10 4 1 5 0 1 Members of 112 2 0 1 0 0 Parliament Private sector 001 0 0 0 0 0 business Not for profi t 100 0 0 0 0 1 organisations or community groups Members of 020 1 0 0 0 0 the public (application by legal representative) Members of the 422 0 0 2 0 0 public (other)

* More than one decision can be made in respect of a particular access application. If so, a recording must be made in relation to each such decision. This also applies to Table B.

254 Transport for NSW Annual Report 2011–12 Table B: Number of applications by type of application and outcome Refuse to confi rm/deny Access Access Access Information Refuse to whether granted granted refused Information already deal with information Application in full in part in full not held available application is held withdrawn Personal information 221 1 0 1 0 0 applications* Access applications 16 7 14 6 1 6 0 2 (other than personal information applications) Access applications 000 0 0 0 0 0 that are partly personal information applications and partly other

* A personal information application is an access application for personal information (as defi ned in clause 4 of Schedule 4 to the Act) about the applicant (the applicant being an individual). The total number of decisions in Table B should be the same as Table A.

Table C: Invalid applications Reason for invalidity Number of applications Application does not comply with formal requirements (section 41 of the Act) 5 Application is for excluded information of the agency (section 43 of the Act) 0 Application contravenes restraint order (section 110 of the Act) 0 Total number of invalid applications received 5 Invalid applications that subsequently became valid applications 5

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the Act Number of times consideration used* Overriding secrecy laws 0 Cabinet information 8 Executive Council information 0 Contempt 2 Legal professional privilege 0 Excluded information 0 Documents aff ecting law enforcement and public safety 0

Transport safety 0 Appendices Adoption 0 Care and protection of children 0 Ministerial code of conduct 0 Aboriginal and environmental heritage 0

* More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be recorded (but only once per application). This also applies in relation to Table E.

Appendices 255 Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of the Act Number of occasions when application not successful Responsible and eff ective government 10 Law enforcement and security 1 Individual rights, judicial processes and natural justice 6 Business interests of agencies and other persons 4 Environment, culture, economy and general matters 2 Secrecy provisions 0 Exempt documents under interstate Freedom of Information legislation 0

Table F: Timeliness Number of applications Decided within the statutory timeframe (20 days plus any extensions) 55 Decided after 35 days (by agreement with applicant) 0 Not decided within time (deemed refusal) 2 Total 57

Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome) Decision varied Decision upheld Total Internal review 4 0 4 Review by Information Commissioner* 0 0 0 Internal review following recommendation under section 93 of Act 1 0 1 Review by ADT 0 0 0 Total 505

* The Information Commissioner does not have the authority to vary decisions, but can make recommendations to the original decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been made.

Table H: Applications for review under Part 5 of the Act (by type of applicant) Number of applications for review Applications by access applicants 5 Applications by persons to whom information the subject of access application 0 relates (see section 54 of the Act)

State Aviation Working Group

For the purposes of the GIPA Act, TfNSW is the parent of the State Aviation Working Group.

TfNSW’s review of its proactively released information will include that held by the State Aviation Working Group.

256 Transport for NSW Annual Report 2011–12 Number of access applications received – Clause 7(b)

During the reporting period, the State Aviation Working Group received no formal access applications.

Accessing and amending documents

Documents may be accessed in Applications under the GIPA Act Or in writing to: several ways, including via the and privacy enquiries should be Manager of Government internet at transport.nsw.gov.au. directed to the Information Unit at: Information and Privacy Transport for NSW Telephone: (02) 8202 2200 PO Box K659 Email: [email protected] Haymarket NSW 1240

Appendix 3: Privacy and Personal Information Protection Act 1998

Clause 6 of the Annual Reports (Department) Regulation 2010 requires NSW Government Agencies to report on privacy compliance issues and to provide statistical details of any review carried out under Part 5 of the Privacy and Personal Information Protection Act 1998 (PPIPA).

Privacy Management Plan The Privacy Management Plan Privacy Reviews (PMP) is being reviewed and will be In compliance with the requirements updated in 2012-2013. The Privacy During 2011-12 TfNSW was not of the PPIPA and the Health Management Plan can be found on involved in any reviews of conduct Records and Information Act 2002, the website at transport.nsw.gov.au. relating to the use, access or TfNSW has a Privacy Management release of personal information. Plan and has appointed a The Privacy Offi cer can be designated Privacy Offi cer. contacted by telephone on 8202 3768. Appendices

Appendices 257 Appendix 4: Public Interest Disclosures Act 1994

The Public Interest Disclosures They can make a Public Interest In TfNSW the public interest Act 1994 sets out the system Disclosure about maladministration, disclosures process is detailed by which people working within corrupt conduct, serious and in a Public Interest Disclosures the NSW public sector can substantial waste, and a failure Policies and Procedures document receive special protections when to properly fulfi l functions under available on the Conduct and making complaints about the the Government Information Ethics page on its Intranet. functioning of the public sector. (Public Access) Act 2009.

Statistical information on PIDs

Jan 2012 – June 2012 Number of public offi cials who made PIDs 5 Number of PIDs received 3 Of PIDs received, number primarily about: Corrupt conduct 2 Maladministration 1 Serious and substantial waste 0 Government information contravention 0 Local government pecuniary interest contravention 0 Number of PIDs fi nalised 1

Note: The number of PIDs fi nalised only refers to PIDs that have been received since 1 January 2012.

Commentary on PID obligations

Internal reporting policy Ombudsman and in annual The Statement of Business reports would be compatible. Ethics is a key compliance The Public Interest Disclosures Policy document in Transport for NSW’s and Procedures (policy document) When TfNSW came into being, the supplier contracts. A mail-out for TfNSW was launched when it policy document was relaunched of the Statement of Business was established on 1 November. for the new agency. It was Ethics to all Transport for NSW communicated by the Director vendors is being planned. Making staff aware of General to staff through an PID obligations intranet message in November. TfNSW’s Senior Service Performance Agreements and The Director General approved The policy document is on Executive Performance Agreements the launch of the policy document TfNSW’s intranet under a Conduct include a requirement for senior for the Department of Transport and Ethics page, where internal offi cers to ensure that their staff s in September 2011. This was reporting hotlines and the Code “are aware of the protections communicated to all staff in an of Conduct are also located. This available under the Public email from the Director General page provides information on the Interest Disclosures Act 1994.” on 30 September 2011. signifi cance and purpose of the Act. As part of TfNSW’s 2011-12 In September 2011 the Director The policy document is also corruption control activities, training General, after interagency referred to in Transport for and presentation sessions have consultation, provided advice to all NSW’s Code of Conduct and the been provided to staff and senior Transport Chief Executives on how Statement of Business Ethics. offi cers on corruption awareness. public interest disclosures policies This included information about The Code of Conduct, which refers within agencies were to be aligned. the Public Interests Disclosures to the Public Interest Disclosures This was to ensure that statistical Act 1994 and its protections. More Act 1994, is a key document information to be provided by training will be held in 2012-13. presented to staff during inductions. transport agencies to the NSW

258 Transport for NSW Annual Report 2011–12 Appendix 5: Management and structure, including Executive Performance Statements

Names, offi ces and qualifi cations of principal offi cers as at 30 June 2012.

Department of Transport Senior Executive Service

Name Position SES Level Qualifi cations Les Wielinga Director General 8 BE (civil), Grad Dip Mgmt (Technology Management)

TfNSW Transport Executive

Senior Service Name Position Level Qualifi cations Rodd Staples Project Director North West 6 Bachelor of Engineering (Civil), Masters of Rail Link Finance (Business) Tony Braxton-Smith Deputy Director General 6 Masters of Business Administration Customer Experience Carolyn McNally Deputy Director General, 6 Bachelor of Arts (Sociology & English Planning and Programs Literature) Chris Lock Deputy Director General 6 Bachelor of Science (Honours) Building Transport Projects Economics & Measurement Rachel Johnson Deputy Director General 6Certifi cate in Education (Math & Science), BSc Freight and Regional (Honors) Aeronautical Engineering Science Development Tim Reardon Deputy Director General 6 Bachelor of Technology (Engineering & Policy and Regulation Management); Graduate Certifi cate in Natural Resources; Diploma of Engineering (Civil); Business Management Certifi cate, AIM; Company Directors Diploma, AICD Fergus Gammie Deputy Director General 6 Bachelor of Arts, Executive Certifi cate in Transport Services Management Fran McPherson Executive Director Human 6Executive Management Certifi cate at PSM Resources and Business University of Technology, FAIM Graduate Services studies in Public Sector Management Arthur Diakos Chief Financial Offi cer 6 Bachelor of Business (Accounting Major & Finance, Audit and Strategy Finance Sub-major), FCPA

Performance and Numbers of Executive Offi cers Appendices The total number of Transport Senior Service employees with remuneration equal to or exceeding Senior Executive Service (SES) Level 1 (total remuneration package $159,000) as at 30 June 2012 was 214.

Of the 214 employees, there are 42 women (19.63%).

As shown below, there was a total of 49 individuals in receipt of remuneration equal to or exceeding SES Level 5 throughout the reporting period.

With the establishment of Transport for NSW on 1 November 2011, no comparison to the previous reporting period is provided.

Appendices 259 Executive performance statements

Director General

Name: Les Wielinga

Position – Dual responsibility: Director General, DoT Chief Executive, TfNSW Level: Senior Executive Service Level 8 Period: 1 July 2011 to 30 June 2012 Total annual remuneration package: $507,563

Signifi cant achievements 1 November 2011 to 30 June 2012

• Provide overarching leadership • Promote the overall safety • Guide the prioritisation, in the development, coordination and security of the NSW procurement and delivery and implementation of the NSW transport system. of integrated solutions for Government’s transport plans • Oversee the planning, transport infrastructure across and their associated policies, maintenance and delivery NSW to cater for population reforms, projects and services. of transport infrastructure and economic challenges and • Lead, advise and direct Transport and services to the benefi t to build a sustainable future. for NSW and operating of the people of NSW and • Provide expert advice to the agencies on the strategic to support the social and Premier and Portfolio Ministers direction of their organisation, economic needs of the State. on strategies and policies to the direction of reform, further the objectives of the investment and the resolution of Government for the delivery commercial, customer service of transport services. and performance issues.

Deputy Directors General

Name: Rachel Johnson

Position: Deputy Director General Freight & Regional Management Level: Transport Senior Service Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $385,900

Signifi cant achievements 1 November 2011 to 30 June 2012

• Established the Division • Oversaw the passing of • Instigated substantial progress as a one-stop-stop for the Marine Pollution Bill in developing an enhanced industry to raise issues • Finalised the Metropolitan Freight model for the delivery of port • Completed the fi rst draft of the Network and Southern Sydney safety for implementation NSW Freight and Ports strategy Freight Line lease/licence • Successfully consolidated freight • Established the Bureau • Negotiated signifi cant functions which previously of Freight Statistics improvements to and signing resided across Government • Established the NSW of the memorandum of • Brokered agreement on the Freight Advisory Council understanding for the Northern contractual framework between Sydney Freight Corridor (NSFC) NSW and the Commonwealth • Represented TfNSW in the to give legal enforceability Pembroke and Belmore to the NSFC MOU projects for Port refi nancing

260 Transport for NSW Annual Report 2011–12 • Instigated substantial progress • Oversaw the embedding of • Finalised the Cowra Lines on the development of Marine Incident Communications Ministerial Taskforce and worked legislation and standards into the TfNSW incident with Councils to develop a for NSW ports, vessel traffi c communications network market testing process services and dangerous goods • Progressed Moorebank • Progressed rail requirements • Undertook extensive engagement Intermodal proposals associated with the with the freight industry as proposed Cobbora coal • Provided advice to informing part of the development of the mine in central NSW. the Independent Pricing and Freight and Ports Strategy Regulatory Tribunal review of grain freight line access charges

Name: Fergus Gammie

Position: Deputy Director General Transport Services Level: Transport Senior Service Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $402,159

Signifi cant achievements 1 November 2011 to 30 June 2012

• Led the establishment of the • Chairperson of companies • Led process of franchising Transport Services Division, associated to Light Sydney Ferries and transition including transition of timetable Rail and Monorail to new operator development, country rail • Established business • Managed transport contracts, ticketing and transport improvement projects for response to NSW fl oods management to TfNSW ticketing services and passes and • Led development of the Opal • Led delivery of service schemes to improve customer electronic ticketing system. planning, service procurement, service and value for money ticketing, and community transport functions

Name: Carolyn McNally

Position: Deputy Director General Planning & Programs Level: Transport Senior Services Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $399,750

Signifi cant achievements 1 November 2011 to 30 June 2012

• Established the Planning • Successfully launched and led a • Assisted with the preparation

and Programs Division. It is 12 month extensive consultation of the Barangaroo Integrated Appendices responsible for developing an process across NSW to develop a Transport Plan. This plan integrated program of works Long Term Transport Master Plan. provides a framework for and services by consolidating future transport services and • Established four Advisory Groups transport planning and infrastructure to support the representing customers and determining investment Barangaroo development community, local government, priorities that are supported including public transport, industry and transport specialists by a strong evidence base walking and cycling to the site to inform the NSW Long Term Transport Master Plan

Appendices 261 • Initiated a study to evaluate • Oversaw progressive North West Rail Link and Port the current and future implementation of a new, $770 Botany and the Sydney Airport transport needs of people million Transport Access Program. Transport Improvement Plan living in the Casino to It will deliver interchanges, • Oversaw the fi rst Public Transport Murwillumbah rail corridor additional commuter car parking User’s Satisfaction Survey, and safety improvements • Managed development of which measured customer at stations and car parks Sydney’s Rail Future. Released in satisfaction with train, bus and June 2012, the strategy outlines • Led development of priority ferry services in Sydney a long term transformation projects submitted by the NSW • Led the Bureau of Transport to increase the capacity of Government to Infrastructure Statistics focus on providing Sydney’s rail network. It is an Australia for funding freely available, accessible, integral part of the NSW Long consideration. They include accurate and credible transport Term Transport Master Plan Pacifi c Highway upgrading, data and forecasts on the website www.bts.nsw.gov.au/website.

Name: Christopher Lock

Position: Deputy Director General Transport Projects Level: Transport Senior Service Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $501,020

Signifi cant achievements 1 November 2011 to 30 June 2012

• Established Transport Projects • Actively promoted safety across • Developed the capability to Division as the deliverer of choice the industry and achieved a procure and deliver train, bus, for transport infrastructure 12-month rolling average lost ferry transport systems and strategic assets time injury frequency rate • Supported the capture, of 0.3 at 30 June 2012 • Oversaw the delivery of programs dissemination and implementation including Rail Clearways • Developed strong relationships of knowledge transfer across Program, South West Rail Link, and supporting processes with Transport Projects Division Transport Access Program, other divisions of TfNSW and • Developed industry engagement Northern Sydney Freight Corridor with other transport entities and confi dence in delivery Program, Asset Divestment • Supported RailCorp reform of transport infrastructure Program, Wynyard Walk and and assisted with the and strategic assets Sydney Light Rail Program establishment of a single, • Oversaw the recruitment, separate Design Authority retention and development • Established the Waratah project of the people that enable the and other transitioned projects vision for Transport Projects. from RailCorp within Transport Projects governance framework

262 Transport for NSW Annual Report 2011–12 Name: Anthony Braxton-Smith

Position: Deputy Director General Customer Experience Level: Transport Senior Service Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $430,500

Signifi cant achievements 14 November 2011 to 30 June 2012

• Customer Value Propositions of information in disruptions. • An audit of existing brands within (CVPs) for each of the public Supported by customer the portfolio was completed. transport modes were researched research, a program was Interim standards for corporate to provide the evidence base developed to enhance document presentation were of customers’ needs and disruptions communications. developed and applied preferences. CVPs were used Implementation commenced and • A new systems architecture to inform the RailCorp Reform work will continue in 2012-13 was developed for addressing program, the Bus Contract • New standards were developed correspondence, and KPIs, the Light Rail program, for station and train cleanliness, responding to the issues the Long Term Transport Master and provided to RailCorp, raised by constituents Plan, North West Rail Link, Rail along with a suite of short-term Futures and other initiatives • An agreement was brokered with initiatives (like reintroduction Google for the inclusion of public • The framework for a new of bins) to improve cleaning transport information on Google Customer Scorecard was standards on the rail network Maps, and its implementation fast- designed, with supporting • A new drink-driving advertising tracked for delivery in July 2012 processes to enable an enhance campaign was developed, and set of customer ratings of • Customer insights were 10 other road safety campaigns transport performance to generated to validate the integrated into a coordinated be produced by the Bureau design review, product and program for 2012-2013. A uniform of Transport Statistics pricing for the Opal integrated look and feel was created, and electronic transport ticketing • An in-depth review was the media buying plan integrated card. The brand was developed completed of the current and registration progressed. internal systems communication

Name: Timothy Reardon

Position: Deputy Director General Policy & Regulation Level: Transport Senior Service Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $393,500

Signifi cant achievements 1 November 2011 to 30 June 2012

• Established the Policy and • Delivered changes to improve • Commenced a pre-pay taxi fares Appendices Regulation Division to lead the transport services in NSW trial on the Central Coast and a development of customer- including the release of three-month cross border bus focused policy for the transport, taxi licences for 2012-13 trial between NSW and ACT roads and maritime portfolio and commencement of • Developed pricing and fare the tender process for new • Commenced reviews of legislation principles as well as fare changes airline licences for 2013-18 and regulations to deliver service across Transport including a 50% improvement and reduce red • Developed a new Maritime Policy discount on licence renewals tape (the Passenger Transport Agenda to guide boating safety, as an incentive for safe drivers; Act, Passenger Transport waterways access and reduce red fares and pricing changes Regulations and Consolidation tape within maritime services for CityRail trains, rural and of Road Transport legislation) regional buses, Government and private ferries, and taxis

Appendices 263 • Commenced reviews of rail, road • Continued implementation of • Developed the NSW Road and wharf access to improve the road toll response package Safety Strategy and NSW Speed wharf access on Sydney Harbour, Camera Strategy including the • Completed recommendations increase dedicated freight access hypothecation of fi ne revenues to from the Auditor-General’s on rail and introduce B-Triple a Community Road Safety Fund Performance Audit into access on key freight routes speed cameras in NSW and • Continued the roll out of fl ashing • Delivered a range of road completed the Top 100 speed lights at schools with an additional safety initiatives including zone review across NSW $4 million for country schools. the implementation of NSW actions that support the National Road Safety Strategy

Name: Frances McPherson

Position: Executive Director Business & Human Resources Level: Transport Senior Service Level 6 Period: 27 January 2012 to 30 June 2012 Total annual remuneration package: $389,500

Signifi cant achievements 17 February 2012 to 30 June 2012

• Responsible for TfNSW • The implementation of a new • Responsible for the design, information and communication Transport Service Award and planning and implementation technology, Legal, Transport Agreement, the creation of a for delivery of the TfNSW Shared Services and Human new classifi cation structure Corporate and Shared Services Resources functions including a new Transport Reform Program across Senior Service structure all transport agencies • Responsible for the planning and negotiations to establish the six • Responsible for realising • Led the establishment of the core divisions within TfNSW effi ciency savings identifi ed Transport Corporate Shared within the business case Services Reform Program • Transition to TfNSW of the for creating TfNSW Management Offi ce and formal Country Rail Infrastructure program governance reporting Authority and the Transport • Filling of over 800 positions structure for the Director General Construction Authority. • Publishing of a suite of • Led the initial consolidation human resources policies of the ICT contracts benefi t stream with savings exceeding business case requirements.

264 Transport for NSW Annual Report 2011–12 Name: Arthur Diakos

Position: Chief Financial Offi cer Level: Transport Senior Service Level 6 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $393,500

Signifi cant achievements 1 November 2012 to June 2012

• Provided eff ective and • Established corporate fi nancial • Directed the preparation and strategically focused fi nancial and budgetary policies, systems submission of the Transport and budgetary management and procedures, including consolidated statutory accounts advice and reporting improved corporate fi nancial and budgetary reporting, allocation • Participated in the development • Established strategic fi nance, and governance framework of budget effi ciency strategies audit and risk and business and provided eff ective strategy functions • Directed the development monitoring systems and reporting of Transport revenue and against established targets • Directed the development of funding strategy risk based corporate internal • Participated in the development audit program, enterprise • Established system based and delivery of corporate and risk framework and fraud and executive management reporting shared services effi ciency corruption preventative program systems, facilitating eff ective key review and the wider result and performance indicator Transport reform programs based fi nancial and resource monitoring and reporting • Sound consolidated fi nancial and budget results achieved across Transport.

Name: Rodd Staples

Positions: Deputy Director General Transport Infrastructure Project Director North West Rail Link Project Level: Transport Senior Service Level 6 Period: 1 July 2011 to 30 June 2012 Total annual remuneration package: $432,490

Signifi cant achievements 2 March 2012 to June 2012

• Leadership of international • Led the development of the • Achieved all key NWRL Industry Engagement Process delivery strategy for NWRL milestones, including exhibition to determine preferred as Sydney’s fi rst single deck of the fi rst project Environmental delivery strategy for the rapid transit service in line Impact Statement and the release North West Rail Link with Sydney’s Rail Future of Expressions of Interest for the

fi rst major construction contract. Appendices

Appendices 265 Name: Terence Brown

Position: Principal Manager Metro Rail Contracts Road Agreements Level: Transport Senior Service Level 3 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $275,343

Signifi cant achievements 1 November 2011 to 30 June 2012

• Establishment of the new • Project managed development • Managed the contract under transport security model of a new rail services contract which light rail services are provided in Sydney. • Development of the TfNSW • Project managed the cross-modal revenue development of the TfNSW/ protection framework Roads and Maritime Services Statement of Intent services agreement

Name: Craig Dunn

Position: Principal Manager Bus & Ferry Contracts Level: Transport Senior Service Level 3 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $250,100

Signifi cant achievements 20 January 2012 to 30 June 2012

• Managed the Bus and • Oversaw the continued rollout • Extended the Liverpool to Ferry Services Contract of the Passenger Transport Parramatta (T80) contract with function within budget Information Priority System the State Transit Authority (PTIPS) and continued • Established for the fi rst time • Assisted development of new growth in the use of the a bus procurement panel bus contracts for metropolitan SMS Next Bus facility Sydney which are to be released for tender in July 2012.

Name: Gregory Ellis

Position: General Manager Electronic Ticketing Systems Level: Transport Senior Service Level 3 Period: 19 March 2012 to 30 June 2012 Total annual remuneration package: $299,400

Signifi cant achievements 19 March 2012 to 30 June 2012

• Dissolved the Public Transport • Preparatory works for equipment Ticketing Corporation installation for rail, bus and ferry • Undertook system design review • Led Bus Driver Console replacement program.

266 Transport for NSW Annual Report 2011–12 Name: John Karaboulis

Position: Executive General Manager Service Procurement & Performance Level: Transport Senior Service Level 5 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $382,760

Signifi cant achievements 20 January 2012 to 30 June 2012

• Led the establishment of the Authority and commencement • Oversaw the development Police Transport Command of the Country Rail Contracts of the Rail Services Contract and the Safe and Secure unit within TfNSW and the development and model for Public Transport • Developed and implemented implementation of the • Led the successful transition the new Sydney Metropolitan Statement of Intent with RMS of the Timetable Development Bus Contract procurement • Managed the successful function from RailCorp to process, and the new Bus transition to the new Ferry TfNSW. Also led the abolition of Procurement Panel operator – Harbour City the Country Rail Infrastructure Ferries on 28 July 2012.

Name: Kenneth Roughley

Position: General Manager Ticketing Program Level: Transport Senior Service Level 3 Period: 1 February 2012 to 30 June 2012 Total annual remuneration package: $263,733

Signifi cant achievements 1 February 2012 to 30 June 2012

• Responsible for preparatory TfNSW Schemes to integrate • Completion of systems and works for co-location and ticketing services, schemes process reviews for passes and amalgamation of the RailCorp, and concessions functions schemes and ticketing services to State Transit Authority and identify customer experience and value for money improvements.

Name: Rita Harding

Position: General Manager Marketing and Communications Level: Transport Senior Service Level 3 Period: 6 February 2012 to 30 June 2012 Total annual remuneration package: $276,750

Signifi cant achievements 6 February 2012 to 30 June 2012

• Designed and developed a new • Reviewed and audited the existing • Reviewed existing crisis drink driving campaign – Plan B sponsorship programs across communication frameworks, Appendices • Planned and scheduled the the transport cluster to inform protocols and practices to program to rollout nine existing development of a new policy establish common standard Road Safety campaigns for • Planned and developed the across the transport cluster the 2012/13 fi nancial year 2012/13 marketing program • Established the Marketing and • Designed and launched a which will leverage TfNSW’s Communication team for TfNSW. program to support the sponsorship of Cricket NSW Government decision to • Developed standard media introduce new speed and protocols and practices safety camera initiatives which are now applied across the transport cluster

Appendices 267 Name: Catherine Foy

Position: General Manager Customer Service Level: Transport Senior Service Level 4 Period: 20 December 2011 to 30 June 2012 Total annual remuneration package: $261,375

Signifi cant achievements 17 February 2012 to 30 June 2012

• Completed detailed review • Managed a variety of • Established Customer Services of the Integrated Transport communications channels Team and recruit key positions Information Systems program that answered more than 30 and establishing a new program to align customer information million inquiries from customers management offi ce in line with projects to the needs and seeking transport information the operating model for the preferences of the customer Customer Experience Division • Completed customer research • Developed the project plan to to help shape customer • Supported major projects by deliver the Google Transit project elements of the Opal shaping them to customer on time and to budget (with the electronic ticketing project requirements, including Opal, project launched 25th July 2012) light rail and Wynyard Walk.

Name: Paul Passmore

Position: General Manager Customer Insight Service Improvement Level: Transport Senior Service 4 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $270,000

Signifi cant achievements 1 February 2012 to 30 June 2012

• Led the defi nition of customer • Led the Customer Experience • Led a review program to value propositions for public contribution to the Long Term identify near term improvement transport including heavy rail, Transport Master Plan opportunities for disruption bus, light rail and ferries communications and • Led development of new develop new disruption • Led development of the customer cleaning standards for communication standards. customer scorecard construct rail and associated measurement for public transport of current state performance

Name: Martin Berry

Position: General Manager Investment Programs Level: Transport Senior Services Level 4 Period: 16 January 2012 to 30 June 2012 Total annual remuneration package: $306,885

Signifi cant achievements 16 January 2012 to 30 June 2012

• Developed the Transport Access and guidance documentation. • Established a Portfolio Program to implement transport This ensures alignment to the Management Offi ce to works to improve station and corporate strategic objectives implement best practice portfolio wharf facilities for customers management tools and systems. • Implemented the TfNSW • Developed and implemented assurance process to assess and an Investment and Governance analyse prospective programs Framework across the transport potential for investment cluster providing policy, systems

268 Transport for NSW Annual Report 2011–12 Name: Stephen Enticott

Position: General Manager Transport Planning Level: Transport Senior Services Level 4 Period: 23 January 2012 to 30 June 2012 Total annual remuneration package: $299,400

Signifi cant achievements 23 January 2012 to 30 June 2012

• Promoted development of • Established teams to develop • Chaired the monthly Sydney integrated transport planning Regional Access Plans and City Airport Working Group seeking outcomes by creating in-house, Access Strategies as part of the to promote improved access multimodal project planning Long Term Transport Master Plan to the Airport through the teams that collaborate with • Managed planning of projects coordination of planning initiatives other areas of TfNSW such as the Northern Beaches Bus • Advanced the promotion of the • Developed professional Rapid Transit Prefeasibility Report, active travel mode by recruiting relationships with the Department the Barangaroo Integrated experienced team managers of Planning and Infrastructure Transport Plan, the Sydney City dedicated to progressing and the City of Sydney Access Strategy, the Sydney Light walking and cycling planning. Rail Studies and the Strategic Transit Network Plan for Sydney

Name: Patrick Fernandez

Position: Principal Manager Services & Asset Investment Level: Transport Senior Services Level 3 Period: 6 February 2012 to 30 June 2012 Total annual remuneration package: $256,250

Signifi cant achievements 6 February 2012 to 30 June 2012

• Determined the funding required • Assisted development of a • Established a team with the for capital and maintenance Transport Investment Plan as required skills and expertise to programs across in the the single source of information implement the TfNSW investment transport cluster and managed for investments in physical portfolio management framework, consideration of them in the assets and services by TfNSW including the identifi cation 2012-13 Budget Papers and the transport agencies and prioritisation of programs over a 10-year period for investment in transport.

Name: Samuel Lackey

Position: Principal Manager Investment Strategy Level: Transport Senior Services Level 3 Period: 1 November 2011 to 30 June 2012 Total annual remuneration package: $255,000 Appendices

Signifi cant achievements 16 March 2012 to 30 June 2012

• Managed fi nancing and legal • Prepared a fi nancial model • Provided investment, funding and aspects of the widening the and briefi ng paper on toll economic advice on transport scope of Sydney motorway standardisation on the public private partnerships public private partnerships Sydney motorway network • Awarded First Prize by • Completed fi nancial credit • Evaluated funding mechanisms, Infrastructure Partnerships analyses of companies doing availability and options Australia for Best Public business with TfNSW for transport projects Private Partnership in Australia for fi nancial work on M2 Motorway Widening.

Appendices 269 Name: Helen Vickers

Position: Corporate Counsel, Legal Services Level: Transport Senior Service Level 5 Period: 1 June 2012 to 30 June 2012 Total annual remuneration package: $370,000

Signifi cant achievements 1 May 2012 to 30 June 2012

• Responsible for legal • Responsible for restructuring • Established transport portfolio services for TfNSW transport portfolio external legal panel. in-house legal services

Name: Andrew Barè

Position: Project Director Wynyard Walk Level: Transport Senior Service Level 5 Period: 1 May 2012 to 30 June 2012 Total annual remuneration package: $330,000

Signifi cant achievements 1 May 2012 to 30 June 2012

• Managed the delivery of the Wynyard Walk project.

Name: Kathryn Barnes

Position: Project Director Level: Transport Senior Service Level 4 Period: 23 May 2012 to 30 June 2012 Total annual remuneration package: $299,400

Signifi cant achievements 4 June 2012 to 30 June 2012

• Managed the transfer of • Managed the development accountability for 10 RailCorp of the Memorandums of capital works projects and the Understanding between RailCorp assignment of 150 RailCorp and Transport Projects Division. project staff (employees/ contractors) to the Transport Projects Division of TfNSW

270 Transport for NSW Annual Report 2011–12 Name: Anthony Wing

Position: General Manager Effi ciency & Eff ectiveness Level: Transport Senior Service Level 4 Period: 6 February 2012 to 30 June 2012 Total annual remuneration package: $276,750

Signifi cant achievements 6 February 2012 to 30 June 2012

• Effi cient and eff ective transport • a 50 per cent discount on • Reducing red tape and making services in NSW, including release licence renewals as an incentive life easier for transport customers, of taxi licences for 2012-13, for safe drivers (received by including abolishing registration commencement of the tender more than 46,000 customers labels for 5.5 million cars and process for new airline licences in the fi rst two months) light vehicles in NSW from 2013 for 2013-18 and advising on policy • new laws to prevent drivers • Co-ordinating transport for effi cient and eff ective public of company vehicles who compliance with disability transport and roads reform commit traffi c off ences from legislation and the existing • Prices, fares, concessions and avoiding demerit points, and 2007-2012 Disability Plan; and fare regulation for transport, • a major trial of a world-leading commencing work on a new including the development of behaviour change program fi ve year Disability Action Plan fares and fare structures for to improve safety for young for the transport cluster. the introduction of the new P plate drivers, known as electronic ticketing system, Opal MyLiveTribe to participants • Driver licensing initiatives for eff ective road safety outcomes, including:

Name: Kim Crestani

Position: Principal Manager, Architecture and Station Precincts Level: Transport Senior Service Level 4 Period: 13 April 2012 to 30 June 2012 Total annual remuneration package: $286,274

Signifi cant achievements 13 April 2012 to 30 June 2012

• Developed landscape and • Coordinated station precinct urban design vision for skytrain design for North West Rail Link. component of North West Rail Link (NWRL) project

Name: Thomas Gellibrand Appendices Position: Deputy Project Director, Customer Strategy and Planning Level: Transport Senior Service Level 3 Period: 14 February 2012 to 30 June 2012 Total annual remuneration package: $342,852

Signifi cant achievements 17 February 2012 to 30 June 2012

• Completed development and • Developed and implemented • Developed business case exhibition of NWRL Environment strategic land use planning for North West Rail Link. Impact Statement 1 process for new NWRL station catchments • Identifi ed strategic opportunities for development of residual lands

Appendices 271 Name: Warwick Proctor

Position: Deputy Project Director, Governance and Controls Level: Transport Senior Service Level 4 Period: 2 March 2012 to 30 June 2012 Total annual remuneration package: $284,070

Signifi cant achievements 30 March 2012 to 30 June 2012

• Established unifi ed • Commissioned strategic • Initiated development of governance and controls review of safety management integrated management system team spanning a number of for the NWRL project • Facilitated major project critical project functions peer review.

Name: Colin Rudd

Position: Deputy Project Director Project Delivery Level: Transport Senior Service Level 5 Period: 16 April 2012 to 30 June 2012 Total annual remuneration package: $389,220

Signifi cant achievements 16 April 2012 to 30 June 2012

• Finalised the procurement • Completed major land • Completed call for Expressions strategy for North West Rail Link acquisitions for NWRL of Interest for tunnelling contract for NWRL. • Completed the peer review of the NWRL delivery strategy

Personnel transferred from Transport Construction Authority from 1 April 2012

Details of the remuneration and performance of Transport Construction Authority offi cers for the period 1 July 2011-31 March 2012, before they transferred to Transport for NSW’s Transport Projects Division, may be found in the Authority’s fi nal annual report.

Name: Michael Barnfi eld

Position: Deputy Project Director Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $320,830

Name: Glenn Bentley

Position: Project Director Clearways / Auburn Stabling Level: Transport Senior Service Level 4 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $403,351

272 Transport for NSW Annual Report 2011–12 Name: Bevan Brown

Position: Technical Director Commercial Level: Transport Senior Service Level 4 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $355,648

Name: David Dalton

Position: Principal Manager Engineering Services Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $249,075

Name: David Gainsford

Position: Technical Director Planning and Environment Services Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $266,500

Name: Craig Gillman

Position: Technical Director Program Management Offi ce Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $256,250

Name: Darren Hayward

Position: Deputy Project Director Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $283,669

Name: Michael Hickey

Position: Principal Manager Reliability and Operational Readiness Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012

Total annual remuneration package: $280,617 Appendices

Appendices 273 Name: Graham Jackson

Position: Technical Director Safety and Quality Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $291,056

Name: Scott Lyall

Position: Director Project Delivery Level: Transport Senior Service Level 5 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $445,000

Name: Michael Magney

Position: Director Project Development Level: Transport Senior Service Level 5 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $344,300

Name: Stephen Pascall

Position: Project Director South West Rail Link Level: Transport Senior Service Level 4 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $349,250

Name: David Roberts

Position: Chief Engineer Level: Transport Senior Service Level 4 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $361,641

Name: John Templeman

Position: Project Director Transport Access Program Level: Transport Senior Service Level 4 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $373,039

274 Transport for NSW Annual Report 2011–12 Name: Anand Thomas

Position: Project Director Clearways / Auburn Stabling Level: Transport Senior Service Level 4 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $310,000

Name: Geoff rey Walker

Position: Principal Manager Engineering Assurance Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $278,162

Name: Martin Walsh

Position: Project Director Light Rail Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $281,875

Name: Peter Whelan

Position: Technical Director Project Communication Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $266,920

Name: James White

Position: Technical Director, Project Property Services Level: Transport Senior Service Level 3 Period: 1 April 2012 to 30 June 2012 Total annual remuneration package: $316,910

Other Department of Transport offi cers

Several senior Department of Transport offi cers whose Executive levels met the reporting requirement separated from the organisation soon after the fi nancial year began.

They were: Matthew Browne, Joanna Quilty, Elizabeth Zealand, Peter Scarlett and Louise Hicks. Appendices

Appendices 275 Appendix 6: Management and activities

NSW 2021 is the Government’s transport system and provides The following table gives an 10-year plan to make NSW number Transport for NSW with guidance overview of performance indicators. one. It guides policy and decision in delivering on these priorities. making in conjunction with the • Targets: these were either budget process, and outlines how The NSW Government has set carried over from the former government agencies will deliver up public reporting with a 2011 State Plan (2016) or developed on priorities for local communities baseline report (http://2021. in the new NSW 2021 plan for and regions across NSW. nsw.gov.au/sites/default/fi les/ a later date (e.g. for 2020). pdf/120208_NSW_2021_Baseline. • Missing targets: these are either NSW 2021 clearly establishes the pdf) and the publication of regular being developed or have not been Government’s focus in delivering progress reports. The Transport approved for publication yet. an integrated, customer-focused progress report can be accessed at: http://2021.nsw.gov.au/sites/ default/fi les/pdf/09_Transport.pdf.

NSW 2021 Performance indicator 09/10 10/11 11/12 target (by) Public transport Customer Satisfaction (%) Trains n/a 81 - n/a Ferries n/a 96 - n/a Buses n/a 86 - n/a All public transport n/a 85 - n/a Passenger journeys (m) CityRail 289.1 294.5 303.6 n/a CountryLink 1.81 1.89 2.0 n/a Sydney Ferries 14.3 14.5 14.8 n/a Metropolitan buses – STA 153.6 153.7 154.1 n/a Metropolitan buses – PBO 41.2 45.0 49.3 n/a Outer metropolitan buses 15.0 15.6 16.0 Light Rail 2.8 2.7 3.9 n/a Passenger journeys growth (%) CityRail -1.1 1.8 3.1 n/a CountryLink 7.5 4.5 5.8 n/a Sydney Ferries 0.2 1.1 1.8 n/a Metropolitan buses – STA -2.1 0.1 0.3 n/a Metropolitan buses – PBO 1.9 9.3 9.4 n/a Outer metropolitan buses -0.2 3.4 2.8 Light Rail 3.6 -1.3 43.9 n/a On-time running (%) CityRail 95.9 94.6 93.4* 92 CountryLink 74.8 72.7 62.1* n/a Sydney Ferries* 98.1 98.5 98.8 98.5 Metropolitan buses – STA** n/a 91.2 90.8 95 Metropolitan buses – PBO** n/a 91.5 93.2 95

276 Transport for NSW Annual Report 2011–12 NSW 2021 Performance indicator 09/10 10/11 11/12 target (by) Complaints (per 100,000 passenger journeys) CityRail 7.6 7.2 7.7 n/a CountryLink 92.7 139.7 154.8 n/a Sydney Ferries 4.4 4.7 3.3 n/a Metropolitan buses – STA 18.3 18.5 17.3 n/a Metropolitan buses – PBO 25.7 27.9 26.4 n/a Outer metropolitan buses 24.1 25.8 24.0 n/a Peak hour journeys to/from work by public transport (%) Sydney CBD 76.5 74.3 - 80 (2016) Parramatta CBD 39.6 40.4 - 50 (2016) Newcastle CBD 14.5 15.7 - 20 (2016) Wollongong CBD 8.7 8.2 - 15 (2016) Liverpool CBD 15.7 14.4 - 20 (2016) Penrith CBD 20.2 21.3 - 25 (2016) Journeys to/from work by public transport within Greater Sydney 23.9 22.4 - 28 (2016) Metro (%) Sustainable modes Bicycle trips at the local/district level within Greater Sydney Metro 1.9 2.2 - 2.5 (2016) (%) Walking trips at the local/district level within Greater Sydney Metro 22.5 22.5 - 25 (2016) (%) Roads Road fatalities Total 445 367* 396* 341 (2016) Per 100,000 population 6.3 5.1* 5.5* 4.3 (2016) Per 100m VKT 0.67 0.55* 0.58* 0.43 (2016) Incident clearance time on principal transport routes for 98% of n/a 39.98 38.36 40 incidents (mins) State roads that meet national road smoothness standard (%) 91.5 91.2 - 93 (2016) Freight Freight movements by rail through NSW ports (%) 18.8 14.0 14.5 28 (2020)

Notes:

- Data were not available at the time of print Appendices * Figures are provisional ** Measured at commencement of trip STA: State Transit Authority PBO: privately-owned bus operators VKT: vehicle kilometres travelled

The nature and extent of performance review practices and of improvements in organisational achievements as assessed by both internal and external performance reviews

Appendices 277 External performance reviews

TfNSW is performance-focused, Statements of Expectations, TfNSW’s formal performance where individuals and teams Statements of Intent and management tools include: are accountable for delivering service contracts are some of outcomes. It measures performance the mechanisms used to drive NSW 2021 Performance Reports at all levels, based on how performance with TfNSW’s – a report to Cabinet of the eff ectively TfNSW contributes service providers and to make transport cluster’s contribution to to what it must deliver for sure all are working together. achieving the goals of NSW 2021. customers and the community. TfNSW measures the performance Executive Dashboard Reporting of its service providers System – a regular report to Enhancing performance according to the transactional the Executive on the status of measurement capability is an elements of service contracts a range of high-level corporate ongoing priority. While many as well as their contribution to performance indicators. performance indicators are organisational outcomes. already measured and monitored, Director General performance including the targets outlined An integrated performance meetings – regular forums between in NSW 2021, TfNSW will reporting structure provides the Director General and each continue to develop ways of comprehensive information on member of the Executive and the demonstrating the achievement transport cluster-wide performance respective senior management of outcomes and strategies in to support government team. This is to discuss the its performance frameworks. objectives in integrated planning, performance of each Division strategic decision making against agreed strategies, The performance of TfNSW’s and resource allocation. service providers is also initiatives and risk mitigation. important, not only because Individual performance reviews – TfNSW provides funding, but a formal agreement between the because often the providers are Director General and each member responsible for service interactions of the Executive that defi nes with TfNSW’s customers. responsibilities and deliverables. The actions outlined in these reviews are delivered through the business planning process. Performance reviews also refl ect the personal contribution of individuals to the organisation achieving its goals.

TfNSW manages performance in an ongoing performance cycle. It has the following phases and key elements:

Plan Commit Monitor and act Review • Purpose and values • Senior Service and individual • Regular performance • Mid and full year performance reviews meetings performance reports • Direction setting • Business plans • NSW 2021 reporting • Mid and full year • Resource allocation business plan reports decision making • Budget Papers • Business planning process • Annual Report

278 Transport for NSW Annual Report 2011–12 Internal reviews

During the year the Internal • intermodal interchanges • optimised operational Audit function undertook program management performance reviews that facilitated • infrastructure portfolio and • procured and managed the improvement in the areas of: program management supply of goods, services and human resources. • construction cost benchmarking • shared services transaction processing, analysis and control. • electronic ticketing system All management action plans arising program management from reviews were undertaken by Benefi ts achieved as a result of the the Internal Audit function were • human resource and payroll reviews included improvements reported to and monitored by the to how management: • data and transaction process Director General and oversighted change management • framed and applied corporate by the Audit and Risk Committee. • information security management strategies, policies and regulations No external performance • Rail Link integrated offi ce • governed corporate reviews where undertaken program management accountabilities by the Auditor General. • corporate performance • managed infrastructure asset management portfolios, programs and projects

Transport infrastructure funding

The 2011-12 New South Wales State Budget announced the beginning of a record infrastructure investment program worth over $62.6 billion over the four years to 2014-15. In 2011-12 the total NSW State infrastructure investment was budgeted at $15.3 billion with 41.3 per cent, or $6.32 billion, for improving transport infrastructure.

Major transport funding allocated in 2011-12 included:

• $3.2 billion for roads, including • $119 million for 261 new buses The arrangements establishing $1 billion for work on the Pacifi c for the State Transit Authority the new integrated transport Highway, $250 million for work and private operators. authority, Transport for NSW, will on the Hume Highway and improve the delivery of public $570 million to continue work • $2.2 billion for rail projects, transport services and associated on the Hunter Expressway. including $198 million for work major infrastructure projects. on the Rail Clearways program, • $222 million for land acquisition $292 million for the South West TfNSW also provides a single for the North West Rail Link. Rail Link, $130 million toward the focus for annual reporting on This is in addition to acquisition of Outer Suburban infrastructure outcomes and Rail Carriages – Tranche 3, achievements each fi nancial year. • $92 million of spending in and $92 million to start North the Public Trading Enterprise West Rail Link, in addition to sector to start the project. $222 million of spending in the General Government sector Appendices to secure the rail corridor.

Appendices 279 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000

Roads & Traffi c Authority of NSW

Sydney Alfords Point Bridge, Northern Padstow Heights Completed 2011 42,000 8,396 30,898 Approach, Widen to 4 Lanes Alfords Point Road, Brushwood Alfords Point NA NA 789 251 Drive to Brushwood Drive to Georges River (Planning) Anzac Bridge Structural Pyrmont 2015 60,000 23,186 8,025 Upgrades Bringelly Road, Camden Valley Bringelly NA NA 1,890 3,271 Way to The Northern Road (Planning) Bus Priority on Strategic Various Completed 2012 295,000 31,700 265,300 Corridors Camden Valley Way, Bernera Edmondson Park Completed 2011 48,000 2,468 42,881 Road to Cowpasture Road, Widen to 4 Lanes Camden Valley Way, Leppington – NA NA 16,860 22,561 Cowpasture Road to Cobbitty Harringon Park Road, Widen to 4 Lanes (Planning and Preconstruction) Campbelltown Road, Camden Ingleburn NA NA 851 806 Valley Way to Zouch Road, Ingleburn (Planning) Erskine Park Link Road, Old Eastern Creek 2013 48,000 6,582 6,893 Wallgrove Road to Lenore Lane F5 Widening, Brooks Road to Ingleburn – Completed 2011 116,000 24,759 85,825 Narellan Road (Federal Funded) Campbelltown General Holmes Drive, Remove Mascot NA NA 312 1,925 Rail Level Crossing (Planning, Federal Funded) Heathcote Road, Deadman’s Sandy Point 2016 NA 649 14 Creek Bridge Upgrade Hoxton Park Road, Banks Road Hoxton Park Completed 2011 62,000 6,789 54,247 to Cowpasture Road, Widen to 4 Lanes M2 Enhancements, Windsor Baulkham Hills – 2013 550,000 3,759 12,277 Road to Lane Cove Road (State Macquarie Park and Private Sector Funded)* M5 Widening, King Georges Road Beverly Hills – 2014 400,000 966 19,693 to Camden Valley Way (Planning Prestons and Preconstruction, State and Private Sector Funded)*

280 Transport for NSW Annual Report 2011–12 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Mona Vale Road, McCarrs Creek Ingleside NA NA 724 836 Road to Powder Works Road (Planning) Narellan Road, Camden Valley Narellan – NA NA 435 470 Way to F5 Freeway (Planning) Campbelltown Network Management (Pinch Various Completed 2012 100,000 32,300 70,300 Point Strategy) Old Wallgrove Road, M7 to Eastern Creek NA NA 1,064 665 Erskine Park Link Road (Planning) Richmond Road, Bells Creek to Marsden Park NA NA 948 730 Grange Avenue (Planning) Richmond Bridge Congestion Richmond NA NA 1,065 82 Study (Planning, Federal Funded) Schofi elds Road, Windsor Road Rouse Hill 2014 65,000 4,476 9,050 to Tallawong Road, Widen to 4 Lanes (Planning and Preconstruction) Schofi elds Road, New Rail Schofi elds Completed 2011 13,000 10,316 2,169 Bridge for Future Westerly Extension of Schofi elds Road Schofi elds Road, Tallawong Schofi elds NA NA 4,980 2,849 Road to Richmond Road (Planning) Showground Road, Old Castle Hill NA NA 420 909 Northern Road to Carrington Road (Planning) The Northern Road, Camden Oran Park NA NA 5,074 2,298 Valley Way to Bringelly Road (Planning) Werrington Arterial Stage 1, M4 Claremont NA NA 437 54 Motorway to Great Western Meadows Highway (Planning, State and Federal Funded) Windsor Bridge over Windsor NA NA 3,023 2,136 Appendices Hawkesbury River Replacement Great Western Highway Woodford to Hazelbrook, Woodford, 2014 175,000 25,271 92,745 Station Street to Ferguson Hazelbrook Avenue, Widen to 4 Lanes (State and Federal Funded) Lawson, Ferguson Avenue to Lawson 2012 220,000 40,701 163,232 Ridge Street, Widen to 4 Lanes

Appendices 281 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Bullaburra, Ridge Street to Bullaburra 2015 NA** 2,112 9,285 Genevieve Road, Widen to 4 Lanes Bullaburra to Wentworth Falls, Bullaburra, 2014 85,000 12,458 14,035 Genevieve Road to Tableland Wentworth Falls Road, Widen to 4 Lanes Wentworth Falls East, Tableland Wentworth Falls 2012 115,000 23,644 85,543 Road to Station Street, Widen to 4 Lanes (State and Federal Funded) Mount Victoria to Lithgow Mt Victoria, NA NA 17,784 18,748 (State And Federal Funded) Hartley Kelso, Ashworth Drive to Kelso NA NA 2,687 1,906 Stockland Drive, Widen to 4 Lanes (Planning) Hume Highway Tarcutta Bypass, Dual Tarcutta Completed 2011 290,000 58,314 204,969 Carriageways (Federal Funded) Holbrook Bypass, Dual Holbrook 2013 247,000 79,065 28,028 Carriageways (State and Federal Funded) Woomargama Bypass, Dual Woomargama Completed 2011 265,000 53,155 179,845 Carriageways (Federal Funded) Pacifi c Highway Bulahdelah Upgrade, Dual Bulahdelah 2013 315,000 62,580 143,565 Carriageways (State and Federal Funded) Herons Creek to Stills Road Herons Creek 2013 60,000 12,387 12,404 (State and Federal Funded) Oxley Highway to Kempsey Port Macquarie – NA NA 23,611 19,528 (Planning and Preconstruction, Kempsey State and Federal Funded) Kempsey Bypass, Dual Kempsey 2013 618,000 303,958 176,461 Carriageways (Federal Funded) Frederickton to Eungai Clybucca 2016 NA** 14,759 2,196 (Planning and Preconstruction, State and Federal Funded) Warrell Creek to Urunga Nambucca NA NA 18,672 42,945 (Planning and Preconstruction, Heads State and Federal Funded) Coff s Harbour Bypass (Planning, Coff s Harbour NA NA 3,807 40,132 State and Federal Funded) Coff s Harbour (Sapphire) to Woolgoolga 2014 705,000 147,785 259,861 Woolgoolga, Dual Carriageways (State and Federal Funded)

282 Transport for NSW Annual Report 2011–12 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Woolgoolga to Ballina (Planning Grafton, Maclean NA NA 57,862 72,719 and Preconstruction, State and Federal Funded) Glenugie Upgrade, Dual Glenugie Completed 2011 60,000 15,752 46,807 Carriageways (State and Federal Funded) Devils Pulpit Upgrade, Dual Tabbimoble Completed 2012 640,000 39,894 592,472 Carriageways (State and Federal Funded) Ballina Bypass, Dual Ballina 2014 862,000 54,738 115,880 Carriageways (State and Federal Funded) Tintenbar to Ewingsdale Dual Bangalow 2014 862,000 54,738 115,880 Carriageways (State and Federal Funded) Banora Point Upgrade, including Banora Point Completed 2012 359,000 124,031 195,784 Sexton Hill (State and Federal Funded) Princes Highway Gerringong Upgrade, Mount Gerringong 2015 310,000 31,267 11,776 Pleasant to Toolijooa Road Foxground and Berry Bypasses Berry NA NA 17,821 27,276 (Planning and Preconstruction) Berry to Bomaderry Upgrade Berry, NA NA 493 1,099 (Planning) Bomaderry South Nowra Duplication, Nowra 2014 62,000 9,403 6,757 Kinghorne Street to Forest Road Victoria Creek Realignment Central Tilba 2013 40,000 13,738 4,437 Dignams Creek Realignment Dignams Creek NA NA 769 3,156 (Planning) Bega Bypass (State and Federal Bega 2014 60,000 4,157 5,365 Funded) Illawarra Picton Road Road Safety Wilton – Mount 2013 43,600 9,100 21,200 Treatments Keira Appendices Central Coast Central Coast Highway, Brisbane West Gosford NA NA 18,473 43,197 Water Drive, Manns Road Intersection Upgrade (Planning and Preconstruction) Central Coast Highway, Carlton Erina Heights 2012 75,000 14,693 55,018 Road to Matcham Road, Widen to 4 Lanes

Appendices 283 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Central Coast Highway, Wamberal 2013 80,000 22,875 29,641 Matcham Road to Ocean View Drive, Widen to 4 Lanes Central Coast Highway, Kariong 2013 13,000 2,970 614 Wisemans Ferry Road Intersection Upgrade (Planning and Preconstruction) F3 Freeway, Wyong Road Tuggerah 2013 18,000 1,575 1,292 Interchange Upgrade Pacifi c Highway, Wyong Town Wyong NA NA 668 2,138 Centre Upgrade (Planning) Pacifi c Highway, Wyong Road Tuggerah NA NA 1,195 357 Intersection Upgrade (Planning) Pacifi c Highway, Lisarow to Lisarow NA NA 3,267 7,924 Ourimbah, Railway Crescent to Glen Road, Widen to 4 Lanes (Planning) Pacifi c Highway, Narara to Narara – Lisarow NA NA 2,049 6,505 Lisarow Upgrade, Manns Road to Railway Crescent (Planning) Terrigal Drive Improvements Erina – Terrigal NA NA 1,971 5,720 Hunter (F3 to Branxton) (State and Seahampton – 2013 1,700,000 509,514 388,107 Federal Funded) Branxton Hunter Expressway Ancillary Wallsend – 2013 NA** 8,832 2,632 Works, F3 to Broadmeadow Broadmeadow (Planning and Preconstruction) Limeburners Creek Road, Clarence Town 2014 NA 646 3,207 Upgrade of Williams River Bridge Newcastle Inner Bypass, Sandgate 2013 133,000 22,993 36,936 Shortland to Sandgate New England Highway, Scone Scone NA NA 731 66 Level Crossing Study (Planning, Federal Funded) Paterson Road, Upgrade of Woodville 2013 13,800 4,358 5,751 Dunmore Bridge Thornton Railway Bridge Thornton 2012 20,000 13,745 2,686 North Coast North Coast Oxley Highway, Upgrade from Port Macquarie Completed 2011 115,000 30,999 76,969 Wrights Road to the Pacifi c Highway

284 Transport for NSW Annual Report 2011–12 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Summerland Way, Additional Grafton NA NA 4,921 5,834 Crossing of the Clarence River at Grafton (Planning) Waterfall Way, Replacement of Fernmount 2013 NA 1,105 266 Burdett Park Creek Culvert South Western NSW Barton Highway, Safety Murrumbateman Completed 2012 22,000 7,909 12,669 Improvements, Gounyan Curve Realignment (Federal Funded) Olympic Highway, Kapooka Kapooka NA NA 1,804 471 Bridge and Approaches (Planning) Western NSW Kamilaroi Highway, Beemery 2013 7,300 2,119 2,034 Replacement of Bridge over Bogan River Newell Highway Overtaking Various 2014 NA 629 0 Lanes Orange – Parkes Road, Boree Completed 2012 7,100 3,590 3,231 Replacement of Boree Creek Bridge

Country Rail Infrastructure Authority

New Works Bridge Renewals Various Complete 2012 10,325 7,011 0 Concrete Resleepering Various Complete 2012 1,804 1,120 0 Conversion to Welded Track Various Complete 2012 3,665 1,983 0 Level Crossing Safety Wimbledon Complete 2011 750 770 0 Improvements Level Crossing Surface Upgrade Various Complete 2012 915 820 0 Signalling System Upgrade Various Complete 2011 1,500 3,305 0 Steel Resleepering Various Complete 2012 55,677 44,742 0 Work-In-Progress

Signalling and Train Control Various Complete 2012 29,630 1,019 28,982 Appendices Systems

Sydney Ferries

New Works Circular Quay and Manly Sydney 2013 5,050 562 0 Hydraulic Ramp Replacement Work-In-Progress Balmain Western Corner Balmain 2012 530 0 1815 Storage Upgrade

Appendices 285 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Ferry Operations and Customer Various 2013 13,662 1,589 642 Information System Gangway Repairs and Various 2019 1,029 0 189 Replacement Upgrade of CCTV Wharf Various 2019 1,453 0 4 Infrastructure

Maritime Authority of NSW

New Works Rozelle Bay Precinct Rozelle 2015 2,140 88 0 Refurbishment Wharf Upgrades – New Various 2015 7,500 0 0 Commitment Work-In-Progress Blackwattle Bay Foreshore Glebe Completed 2012 550 103 460 Development Charter Vessel Wharves – Various 2015 6,425 1,781 2,575 Upgrade Program Circular Quay Southern Sydney 2015 4,645 87 580 Promenade Commuter Wharves – Upgrade Various 2016 90,000 11,868 17,654 Program

State Transit Authority

New Works Depot Facilities Various 2015 8,000 249 - Equipment for Depots Various 2013 600 1 - Northern Region Capacity Brookvale 2013 750 269 - Upgrade Safety Systems on Buses Various 2013 1,275 50 - Security Systems on Buses Various Completed 2012 1,200 1302 - Work-In-Progress Depot Facilities Various 2015 1,300 338 78 Depot Redevelopment Waverley Completed 2012 400 166 234 PTIPS Bus Communications Various Completed 2012 1,600 767 833 Upgrade Recommissioning of Tempe Tempe Completed 2012 17,400 4,983 12,417 Depot Safety Systems at Depots Various Completed 2012 300 159 89

286 Transport for NSW Annual Report 2011–12 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000

Rail Corporation NSW

New Works Easy Access Station Upgrades – Various 2015 60,000 0 0 Additional Program North West Rail Link Various NA 155,768 900 Work-In-Progress Assets and Facilities Safety and Various 2017 6,123 94,436 Security Automatic Train Protection* Various 2020 27,349 48,276 Business Support Systems Various 2017 34,015 124,185 Clearways Various 2014 2,019,505 216,439 1,599,658 Digital Train Radio Various 2016 37,723 61,198 Easy Access Station Upgrades Various 2016 22,252 181,041 Emu Plains Stabling Emu Plains 2017 4,542 26,118 Hurstville Station Upgrade Hurstville 2014 34,900 3,831 17,279 Information Communications Various 2016 5,320 47,659 Technology Support Systems Internal Emergency Door Various 2015 51,730 2,026 9,183 Release* Level Crossing Upgrades Various 2017 3,214 18,235 Lidcombe to Granville – Corridor Various 2019 36,015 32,594 Upgrade* Mechanised Track Patrol Various 2016 38,810 992 11,185 Network Communications Various 2017 13,836 43,994 Systems** Oatley Sutherland Resignalling Various Completed 2012 82,410 2,332 76,907 and Overhead Wiring Outer Suburban Cars – Various 2013 473,800 136,354 295,106 Tranche 3 Park and Travel Safety Various 2015 8,937 37,579 Passenger Information Various 2017 7,707 64,270

Plant and Equipment Various 2017 7,234 59,131 Appendices Acquisitions** Power Supply Various 2017 74,171 288,809 Rail Heritage Portfolio Various Completed 2016 34,885 191 33,884 Rollingstock Upgrades Various 2017 9,426 88,427 Signalling Improvements Various 2017 92 27,551 Southern Sydney Freight Line – Various 2013 74,635 18,215 42,170 ARTC Interface Stabling Upgrades Preliminary Various 2017 3,699 9,817 Works

Appendices 287 Previous year’s Announced Announced Exp in expenditure Completion Est tot cost 2011-12 to Jun 2011 Location Status date $000 $000 $000 Station Development and Various 2016 41,967 160,214 Upgrades Waratah Rollingstock – Various 2014 107,263 420,811 Enabling and Ancillary Works – Implementation Wayside Protection Systems Various Completed 2012 27,453 3,860 23,527 Upgrade Wollongong Stabling Wollongong 2013 5,248 11,126 Wynyard Walk Sydney 2015 18,822 9,694

Transport Construction Authority

Work-In-Progress Commuter Car Park Program Various 2012 242,400 10,117 217,738 Commuter Car Park and Various 2013 80,473 19,596 19,604 Interchange Program Epping to Chatswood Rail Link – Various 2012 2,332,000 924 2,302,536 Finalisation South West Rail Link Various 2017 2,122,255 313,833 391,066

Department of Transport

New Works 104 Replacement Buses for Various 2012 46,259 40,378 0 Private Operators 64 Growth Buses Various 2012 28,563 12,199 0 93 Replacement Buses for State Various 2012 43,989 45,326 0 Transit Authority Bus Depots Various 2012 45,000 445 0 North West Rail Link – Land Various 2012 222,000 278,069 0 Acquisition Works-In-Progress Finalisation of Payments for 41 Various 2012 29,043 29,043 0 Buses Delivered 2010-11

Note: TfNSW makes contract payments to bus operators for bus services that include payments to fi nance the cost of agreed buses purchased. The ‘actual expenditure’ noted in the table represents the capital value of the buses purchased under these arrangements.

288 Transport for NSW Annual Report 2011–12 Appendix 7: Response to matters raised by Auditor General

The Auditor General in the Statutory Audit Reports for the year ended 30 June 2012 has raised no matters of signifi cance.

Appendix 8: After balance date events

The Country Rail Infrastructure The NSW Government awarded retaining ownership of the ferry Authority and Public Transport the contract for the operation vessels and the Balmain Shipyard. Ticketing Corporation ceased of ferries in Sydney to a private TfNSW will be responsible for operations on 1 July 2012, with operator with eff ect from 28 July fares control and setting service their roles, functions, assets and 2012. The contract will run for seven levels for the new operator. liabilities transferred to TfNSW. years with the NSW Government

Appendix 9: Exemptions from the Financial Reporting Code

In 2011-12 the Treasurer under • Inclusion of a separate line • TfNSW is not required to section 45E of the Public Finance item for ‘maintenance’ in the prepare consolidated fi nancial & Audit Act 1983 approved Department’s consolidated statements on the basis that its exemptions from fully complying statement of comprehensive controlled entities are included with the Financial Reporting income, on the condition that in the Department of Transport’s Code. The exemptions included: ‘employee related maintenance consolidated fi nancial statements. expenses’ continue to be included • Budget information is not as part of ‘employee related required for the Department expenses’ in the statement of of Transport’s consolidated comprehensive income, with fi nancial statements a separate reconciliation to ‘total maintenance’, including ‘employee related maintenance’ in the notes, as required by TPP 10-1 and TPP 06-6 Guidelines for Capitalisation of Expenditure on Property, Plant and Equipment Appendices

Appendices 289 Appendix 10: Major assets

The entity’s physical assets In addition, TfNSW also reports in corridors and the funding of new consist of offi ce leasehold fi t-outs, its fi nancial statements the NSW buses under the Metropolitan computer equipment and systems Government’s emerging interest in and Outer Metropolitan Bus and offi ce furniture. TfNSW leases the Ultimo Pyrmont Light Rail, the System Contracts. These new bus its motor vehicles and offi ce space. work-in-progress on the extension assets are brought to account as of the existing Light Rail system, deemed fi nance leased assets. property acquisitions for transport

Appendix 11: Land disposals

There was no disposal of land during the reporting period.

Appendix 12: Disclosure of controlled entities

The Department of Transport • Transport Construction Authority The Transport Construction for the purpose of fi nancial Authority ceased operations on • Country Rail Infrastructure reporting had the following 30 March 2012, with the roles, Authority controlled entities for which it functions, assets and liabilities prepared consolidated fi nancial • State Transit Authority transferred to TfNSW. statements as at 30 June 2012: and its division Each of the entities provides • Sydney Ferries • Transport for NSW transport services and while the • Public Transport Ticketing consolidated fi nancial statements • Transport Service Corporation provide the fi nancial results • Rail Corporation • Sydney Metro of the group, each entity will • Roads and Maritime Services also prepare separate fi nancial • ACN 156 211 906 Pty Ltd and & Divisions (including the statements as at 30 June 2012. its wholly owned subsidiaries. Roads & Traffi c Authority up to 31 October 2011)

Appendix 13: Disclosure of subsidiaries

ACN 156 211 906 Pty Ltd, a Transport for NSW incorporated proprietary limited liability ACN 156 211 906 Pty Ltd on 12 company, is a wholly owned March 2012, with the company subsidiary of Transport for NSW. subsequently acquiring all the shares of the Metro Transport Sydney Pty Ltd group, the owners of the monorail and existing light rail networks in Sydney.

290 Transport for NSW Annual Report 2011–12 Appendix 14: Internal audit and risk management disclosure Appendices

Appendices 291

292 Transport for NSW Annual Report 2011–12 Appendix 15: Risk management and insurance

Risk management Risk can be considered to be the • determine whether the eff ect of uncertainty on objectives. procedures adopted and Transport for NSW has a Risk It is often expressed in terms of a information gathered for Management Policy that commits combination of the consequences undertaking the assessment it to managing risk as a strategic of an event and the associated were appropriate business objective and adopting likelihood. Consequence is the • determine whether improved a risk-based approach consistent level of impact associated with knowledge would have helped with the Australian Standard for the realisation of the risk, and to reach better decisions and Risk Management. The Policy addresses the key categories of identify what lessons could be recognises that the diligent safety, environment, reputation learned for future assessments management of risk increases the and fi nancial. Likelihood is the and management of risks. likelihood of TfNSW’s success, level of possibility that the risk and reduces both the probability will occur. TfNSW maintains a The Executive Strategy Committee of failure and the uncertainty of register of risks that supports also provides strategic leadership achieving its overall objectives. the management of risk. and assurance in risk management, including identifying, monitoring, Supporting the Policy is TfNSW’s To guide its management response and reviewing opportunities Risk Management Standard, which to risk, it uses a risk-ranking to continually improve risk aims to establish a comprehensive, framework to assign ratings management performance. integrated and systematic and prioritise the response to approach to managing risk by: individual risks. TfNSW’s Risk Tolerance table provides a means • requiring that risks are identifi ed, Insurance of assigning a risk rating of low, analysed, evaluated and treated medium, high or severe. The Risk TfNSW is now responsible for • building management awareness Tolerance rating provides guidance coordinated planning and delivery of risk and ensuring that risk on whether the risk level is such of transport services and projects. is integrated into business that it requires further treatment It is committed to develop an on- actions and decision making activities. The expected risk going risk management culture in • creating an environment where management response required response to the increasing variety all employees understand should apply to most situations. of risks due to the expanding and manage risks for which roles of the organisation. Risk management is a continual they are responsible process and part of the day-to- Because it is exposed to additional • establishing the processes for day management of TfNSW’s risks, TfNSW has arranged adequate formally documenting and business. Reports of risk insurance protection against reviewing risks, along with the management information are unforseen costs that may arise from key mitigating controls and tasks, received and reviewed by the claims associated with insured risks. and reporting on the process to Executive Strategy Committee. It management on a regular basis receives and reviews reports of Such risks can directly aff ect the day to day operations which • providing an assurance risk management information to: can result in non-provision of Appendices framework for the executive • ensure that risks are eff ectively service, increasing expenses management and stakeholders. identifi ed and assessed and and loss of revenues. that appropriate controls and responses are in place • determine whether the measures adopted resulted in what was intended

Appendices 293 TfNSW has various types of • Property loss/damage – GIO A principal arranged insurance insurance cover for staff , property property insurance provides program is in place to provide and liability, with the Treasury cover to all building and material damage and third Managed Fund (TMF) being the contents owned by TfNSW and party liability cover for major main insurance provider. TMF is acquired registered properties construction contracts such as the a self-insurance scheme covering • Motor vehicle (commercial Epping to Chatswood Rail Link, all the insurable risks of the auto insurance) Chatswood Transport Interchange participating government agencies. and North West Rail Link. Through this scheme, TfNSW is • Miscellaneous insurance – transferring risk to the TMF for a covers personal accident for TfNSW has been working closely premium to cover a specifi ed limit non-workers compensation, with TMF to identify liability gap or defi ned in the contract of coverage. overseas travel, fi delity, personal any residual risks to which TfNSW eff ects (baggage, tools of is exposed, and which need to be Insurance coverage includes: trade and fi eld equipment). covered by insurance. This review will also enable removal of no longer • Workers compensation – covers The former Transport Construction required insurance coverage. against work place injury or Authority, now TfNSW’s accidents. The QBE insurance Transport Projects Division, The NSW Government now requires company is selected by TMF to is also insured under TMF for mandatory membership in TMF manage workers compensation non-construction cover. and mandatory Principal Arranged insurance for TfNSW Insurance for all major capital works. • General Insurance – A GIO policy A review began of the insurances provides protection against the of NSW transport agencies. legal liability (public liability This is part of the integration and professional indemnity), of transport. The benefi ts will indemnity for board members, be savings delivered through directors and offi cers effi ciencies and economies of scale.

Appendix 16: Credit card certifi cation by the Director General

294 Transport for NSW Annual Report 2011–12 Appendix 17: Human Resources

In 2011 a small interim Human Industrial Relations The Corporate Services Review Resources management team aims to create effi cient, eff ective of professionals from across the The Transport for NSW Award, a and service-oriented corporate transport portfolio was created to consent award covering TfNSW approach across the transport help establish TfNSW. It worked employees was lodged by TfNSW portfolio. A key strategy for with functional teams to set and the combined unions, was obtaining that effi ciency is up the Customer Experience, approved by the Industrial Relations standardising roles where possible Planning and Programs, Transport Commission in May 2012. and focussing on improving Projects, Freight and Regional capability in the functional The provisions of the award Development, Policy and Regulation areas of human resources, are eff ective from 1 November and Transport Services divisions. information and communications 2011 and expire on 31 October technology, legal and fi nance. The Human Resources 2013. The Award followed team’s expertise: extensive TfNSW and union negotiation on the conditions of • supported the functional employment, including rates of Recruitment teams to design to design the pay, scheduled pay increases, leave More than 800 positions were organisation of the core divisions, provisions and other benefi ts. recruited for TfNSW structure including the setting of skill through the following methods: and capability specifi cations Recruited No. • helped develop and apply Policy and procedures the principles for matching Direct Appointments 537 Transport for NSW has established existing staff to positions Expression of Interest 83 an eff ective human resources • assisted recruitment, induction policy framework to support Advertised 191 and career transition of staff , the new Transport Service and Total 811 ensuring alignment of capability Senior Service to deliver improved to the new positions; and customer-focused transport Note: the above fi gure diff ers from • provided continuing skilled services. This framework, the Public Service Commission human resources support which has been the subject of workforce profi le headcount to the new divisions. consultation with Unions NSW, (i.e. people on board) of 740 will facilitate the achievement as these numbers refl ect the Following the set up of the core of TfNSW’s corporate plan. TfNSW recruitment process. divisions, the following were incorporated into TfNSW: Corporate Services Review • The Waratah (train) Public Private Partnership program, The interim human resources group the Centre for Road Safety, played a central role in developing the Transport Construction and implementing the human Authority, RailCorp’s Timetable resources principles and processes Development and Integration for the transport portfolio-wide Appendices unit, the Offi ce of Boating Corporate Services Review. This Safety and Maritime Aff airs, was part of a Corporate and the former Roads and Traffi c Shared Services Reform Program. Authority’s Roads Licensing and Registration branch, and the Bureau of Transport Statistics.

Appendices 295 Remuneration Level of Substantive Position

Award Staff

Salary Male Female Total SES administration < $50,000 0 0 0 The Statutory and Other Offi ces $50,001 – $75,000 29 89 118 Remuneration Tribunal awarded $75,001 – $100,000 88 96 184 Chief Executive Offi cers and $100,001 – $125,000 92 72 164 Senior Executive Service Offi cers $125,001 – $150,000 20 8 28 an increase of 2.5 per cent in $150,001 > 1 0 1 remuneration packages.

TOTAL 230 265 495 This was applied in accordance with the Tribunal’s determination Transport Senior Service and instructions, along with Grade Level Male Female Total the Department of Premier and Cabinet guidelines. Level 1 110 24 134 Level 2 17 4 21 The applying of variances to Level 3 26 9 35 remuneration was considered in light of the individual offi cer’s Level 4 15 3 18 performance. This consideration Level 5 6 2 8 included alignment of their Level 6639performance against their TOTAL 180 45 225 performance agreement, which related directly to the overall organisational goals and objectives. Payroll services Financial assistance and study time In line with government policy, Industrial relations policies a transport shared services TfNSW continues to provide staff and practices framework was developed to with access to fi nancial assistance TfNSW industrial relations provide payroll services. Transport for undertaking independent policies and procedures align Shared Services (TSS) now provides studies that have a relevance to with the requirements of the standardised transaction processing their employment and/or career. central agencies for public and value adding services Further to this staff are provided service departments. across the transport portfolio. with access to study time as provided under the Transport for New South Wales Award. Development opportunities Communication and consultation During the transition to the Recruitment new organisational structure, TfNSW has a consultative mechanism in place through the development opportunities TfNSW continues to recruit. Most Joint Consultative Committee in continued to be made available recruitment to establish it was accordance with the Department to staff across the transport completed in December 2011. of Premier and Cabinet portfolio. Many have arisen from New governance and structural Consultative Arrangements. portfolio staff having had the arrangements were developed occasion to work collaboratively in early 2012 to help create in an interagency basis. effi cient, eff ective and service- oriented Corporate and Shared Services across the transport cluster. Recruitment to fi ll roles in them began in June 2012.

296 Transport for NSW Annual Report 2011–12 Movement in salaries, wages Industrial Relations and allowances Commission

Staff employed under the provisions During the reporting period of the Transport Service of there were two industrial New South Wales Salaries and disputes notifi ed to the Industrial Conditions of Employment Award Commission of NSW. Neither 2011 were entitled to a 2.5 per dispute involved any bans, cent increase in remuneration limitations or stoppage of work. eff ective from 1 July 2011.

Appendix 18: Equal Employment Opportunity (EEO)

The Equal Employment There was a large transfer of It is expected that a more Opportunity information reported staff from the Department of consistent profi le of EEO within for 2011-12 for the Department Transport to TfNSW during the TfNSW will be reported in of Transport (full year period) year, with very few intakes, while the 2012-13 annual report. and TfNSW (1 November 2011 – TfNSW’s profi le was aff ected by 30 June 2012 only) is aff ected it being a new organisation. by two signifi cant factors.

Workforce Profi le

Cluster Reporting Entity Transport Department of Transport

Trends in the Representation of EEO Groups EEO Group Benchmark/Target 2010 2011 2012 Women 50% 53.5% 53.0% 46.2% Aboriginal People and Torres Strait Islanders 2.6% 1.1% 0.9% 0.0% People whose First Language Spoken as a Child was not English 19.0% 23.8% 20.4% 23.9% People with a Disability N/A 4.8% 4.9% 5.0% People with a Disability Requiring Work-Related Adjustment 1.5% 1.7% 1.4% 1.6%

Trends in the Distribution of EEO Groups EEO Group Benchmark/Target 2010 2011 2012 Women 100 86 86 89 Appendices Aboriginal People and Torres Strait Islanders 100 N/A N/A N/A People whose First Language Spoken as a Child was not English 100 97 97 90 People with a Disability 100 N/A 92 N/A People with a Disability Requiring Work-Related Adjustment 100 N/A N/A N/A

Note 1: A Distribution Index of 100 indicates that the centre of the distribution of the EEO group across salary levels is equivalent to that of other staff . Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is the case for other staff . The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at lower salary levels.

Note 2: The Distribution Index is not calculated where EEO group or non-EEO group numbers are less than 20.

Appendices 297 Workforce Profi le

Cluster Reporting Entity Transport Transport for NSW

Trends in the Representation of EEO Groups EEO Group Benchmark/Target 2010 2011 2012 Women 50% N/A N/A 42.7% Aboriginal People and Torres Strait Islanders 2.6% N/A N/A 0.3% People whose First Language Spoken as a Child was not English 19.0% N/A N/A 23.3% People with a Disability N/A N/A N/A 4.8% People with a Disability Requiring Work-Related Adjustment 1.5% N/A N/A 0.0%

Trends in the Distribution of EEO Groups EEO Group Benchmark/Target 2010 2011 2012 Women 100 N/A N/A 86 Aboriginal People and Torres Strait Islanders 100 N/A N/A N/A People whose First Language Spoken as a Child was not English 100 N/A N/A 98 People with a Disability 100 N/A N/A 99 People with a Disability Requiring Work-Related Adjustment 100 N/A N/A N/A

Note 1: A Distribution Index of 100 indicates that the centre of the distribution of the EEO group across salary levels is equivalent to that of other staff . Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is the case for other staff . The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at lower salary levels.

Note 2: The Distribution Index is not calculated where EEO group or non-EEO group numbers are less than 20.

It should be noted that Transport NSW public sector workforce The research will provide the basis for NSW began operations data show a steady decline in the for the next stage of TfNSW’s on 1 November 2011. representation of people with disability employment strategy. disability, although the extent to As an EEO initiative, TfNSW is which this is also a function of taking part with the Public Service under-reporting remains unclear. Commission in research to identify systemic barriers to recruiting, The project involves detailed developing and retaining employees interviews with a range of with disability in the NSW public employees with disability enquiring sector. The research is an action into factors that attracted them identifi ed in EmployABILITY, the to TfNSW, their experiences strategy to increase employment and career intentions and any opportunities for people with barriers they have identifi ed disability in the NSW public sector. to their development.

298 Transport for NSW Annual Report 2011–12 Appendix 19: Occupational Health and Safety (OHS)

The occupational health and Key performance indicators A new return-to-work program safety of the large number for safety were developed was released in May after extensive of staff who began joining to ensure eff ective safety staff consultation. This permits TfNSW from 1 November was inspections, assessment of managed returns to work for underpinned by foundations risks and consultation. staff recovering from injury or laid from the previous April. signifi cant illness. A team manages A register of audits and inspections this and workers compensation An initial Safety Working Group and their results was established. cases for both TfNSW and addressed anticipated safety needs. Roads and Maritime Services. An interim OHS management Scheduled audits and inspections system was produced to guide were made of all offi ces, including An off er of fl u vaccinations staff in health and safety matters. those of the North West Rail was taken up by 502 staff . This was incorporated in TfNSW’s Link project. Results were tabled new Safety Management System. at consultative meetings with Ergonomic assessments off ered hazards recorded in a safety risk to staff , along with regular offi ce A TfNSW Consultation Work register. Potentially hazardous inspections and replacement Health and Safety Committee was substances are included in of older chairs. Offi ce-based established to provide an eff ective a safety data register. risks have been reduced avenue for developing improved health and safety outcomes for Safety is integral to staff induction. The Working Together Workplace staff . It does so by identifying and Training in provisions of the Health & Safety and Injury suggesting controls of workplace Work Health and Safety Act and Management Strategy 2011-2012 hazards and risks. Its membership Regulations 2011 was delivered audit was completed in January represents the diversity and to project teams. A new safety and submitted to NSW WorkCover. geographic makeup of TfNSW. policy provides guidance towards building a culture of working safely. TfNSW’s OHS Consultation Its message is: “Safety is a core Committee members raised funds value and a key contributor to the for charity by involvement in the success of Transport for NSW.” Wollongong to Sydney bike ride and the JP Morgan corporate fun run.

Occupational Health and Safety 2011-12 No. of reported work-related injuries 27 No. of reported journey time injuries 9 No. of reported work related illnesses 0 Total weeks lost due to workplace-related injuries or illness 26 Total weeks lost due to journey injuries 0 No. of workers compensation claims 8 No. of prosecutions reported 0 Prosecutions under the Act 0 Appendices No. of audits and safety inspections 51 Percentage of identifi ed safety hazards closed 96% Percentage of planned Work Health and Safety consultation meetings held 100%

Appendices 299 Appendix 20: Disability Plan

Outcome areas Targets Actual Performance Identifying and removing Ensure a disability awareness module is Disability awareness modules for induction barriers to services for included in employee induction programs programs have been implemented by all people with a disability and promote general staff awareness of transport agencies. disability and access issues. Review communication channels A centralised complaints system is in suitable for persons with a disability and place through the 131 500 Transport incorporate the results of the review in Infoline by telephone (131 500); TTY the development of a new integrated telephone (1800 637 500) and website customer relations management system. (www.131500.com.au). Increase the availability of Wheelchair As at 1 June 2012, there were 842 Accessible Taxis. accessible taxis in NSW, an increase of 3.1% from 2011. In May 2012, the gap in response times between standard and WATs was 3.85 minutes. Provide hearing loops in infrastructure Partially achieved. Information help points (where required) including hearing loops are being trialled at three CityRail stations Providing information in a Ensure implementation of new information Information on all public transport services range of formats that are systems across a range of modes and is available on the Transport Info 131 accessible to people with transport tasks improves information 500, including call centre, website and a disability accessibility for people with disabilities. TTY facility.

The 131 500 Transport Infoline website complies with Web Content Accessibility Guidelines issued by Offi ce of Information Technology. Improve destination signage and voice Partially achieved. announcements on rail stations.

300 Transport for NSW Annual Report 2011–12 Outcome areas Targets Actual Performance Making government Compliance with DDA Transport Access Increased percentage of public transport buildings and facilities Standards. services are accessible. physically accessible to people with a disability All new infrastructure works comply with the relevant disability standards. Review pedestrian strategies and State All new infrastructure works comply with Road network standards to improve the relevant disability standards. the quality of the road environment for pedestrians with mobility impairments. Undertake access audits as part of Asset All corporate offi ces are accessible. Management Plans and make changes where necessary. Provide access to portable boarding Achieved. ramps on all CityRail station platforms Examine access for people with disabilities Pedestrian level crossing design standards at pedestrian level crossings. have been amended following consultation with and tests by disability peak groups of an improved design. All new transport infrastructure projects to Achieved. have accessible destination signage and/or voice announcements. Liverpool- Parramatta Transitway incorporates electronic destination signage and Transitway buses have hearing loops installed at shops. Assisting people with a Ensure consultation is carried out Establishment of the Accessible Transport disability to participate in with the disability community for the Consultative Group, with representatives public consultations and consideration of information, infrastructure from Government, peak disability groups apply for, and participate and other initiatives being progressed by and industry. in, government advisory transport agencies. boards and committees Using government Use contracts and incentives to increase Introduction of new bus contracts that decision-making, accessible transport by private operators. require compliance with DDA Transport programs and operations Standards and preparation of Action Plans. to infl uence other agencies and sectors to improve A range of incentives are in place to community participation increase the number wheelchair accessible and quality of life for taxis, particularly in non-metropolitan areas. people with a disability Ensure that all new retail concessions Achieved. at railway stations, ferry wharves and transport interchanges are accessible. Appendices Transport for NSW is currently developing a new Disability Action Plan for 2012-2017 in consultation with disability stakeholders. The Plan is expected to be released in December 2012.

Appendices 301 Appendix 21: Multicultural Policies and Services Program

Transport for NSW recognises that it operates in a culturally, linguistically and religiously diverse environment.

Established in November, TfNSW is working with the Community Relations Commission (CRC) to develop a Multicultural Plan that refl ects the revised CRC Multicultural Policies and Services Program. It will further refi ne the transport portfolio’s existing multicultural programs and activities.

The operating agencies RailCorp, Access and equity Social & economic Roads & Maritime Services, State development Transit Authority, and Sydney TfNSW continued to encourage use Ferries are statutory bodies under of the Australian Government’s 131 The TfNSW Regional Transport the Public Finance and Audit Act, 450 Translating and Interpreting Coordination program funds non- and as such are required to submit Service. This telephone service recurrent projects with partner a yearly report under the Annual is promoted in community agencies to address access and Reports (Statutory Bodies) Act languages on the TfNSW website, mobility problems at local level. and Regulations 2010. They will and in community notifi cations, Current projects with a specifi c report their multicultural policies newsletters and other publications. multicultural focus include: and services programs in them. The Transport Info service at The Multicultural Community www.131500.com.au is a multi- Signifi cant activities in 2011-2012 Transport Trial by TfNSW that contributed to modal website, supported by multicultural outcomes included: TfNSW and its operating agencies, TfNSW is administering funding for with trip planner instructions this trial project in the Bankstown, available in 10 languages other than Liverpool and Fairfi eld Local Communications English. The service also encourages Government Areas (LGA) to the use of the 131 450 phone develop an information bridge Access continued to be available Translating and Interpreting Service. between local community to a large variety of road safety transport providers and culturally community education resources and linguistically diverse (CALD) in multiple languages. These Consultation and feedback residents who are unable to included school road safety carry out the activities of daily TfNSW consults its communities resources, and brochures, fl yers, living, and their carers. Language through methods such as posters and CDs on safety issues groups include Cantonese, information sessions and liaison such as pedestrian safety, seat Arabic, Vietnamese, Italian and groups, and employs interpreters belt restraints and learner driver Spanish. Bilingual staff share to assist those who do not speak workshops, available in more than information on cultural norms English as a fi rst language. 25 languages other than English. and languages to assist transport Multicultural stakeholders and peak providers better connect with Part of the Take it Easy campaign, organisations were consulted on these community members. specifi cally promoting personal matters such as service changes water craft safety in southern caused by bus reform in Sydney. Wagga Wagga Learner Sydney waterways, was directed Driver Program to many linguistically and TfNSW has feedback mechanisms through its Transport Info culturally diverse groups through This program provides low 131500 service and dedicated the multicultural media, social cost options for vulnerable and 1800 numbers for enquiries and networking sites and community disadvantaged young people aged complaints. Examples are the engagement events. It is part of a 17 to 25 to achieve the 120 hours Project Infoline 1800 684 490 wider program to promote safe and required to attain a driver licence. and the Construction Response responsible boating in the NSW Wagga Wagga has a migrant Line 1800 775 465. Customers personal watercraft community. The resettlement program, and TfNSW and stakeholders using these campaign ran during 2011-12 and will strongly engages with this group mechanisms are also able to continue in 2012-13. It won the 2011 to provide access to the program. Austswim NSW Water Safety Award use the 131 450 Translating for a community education project. and Interpreting Service.

302 Transport for NSW Annual Report 2011–12 Transport Pathways to Strategic Community Assistance Kooringal Kids Transport Good Dental Health to Refugee Families Connections

This project began in May and TfNSW funded this project, which This program provides transport provides access to transport options began in January, to transport for 5-12 years old children from for socially and economically students from CALD backgrounds social housing areas of Wagga disadvantaged groups in Wagga in the Wollongong LGA to a SCARF Wagga to access community and Wagga. It particularly targets young homework centre in Wollongong, recreational facilities, improving people up to 25 years to access assisting them to complete school. social inclusion. Since this initiative dental or oral health care services. commenced in July 2011 it has Children from an African migrant assisted 11 families, including two resettlement program are being from African backgrounds. assisted through this program.

Appendix 22: Agreements with the Community Relations Commission

There has been no requirement for an agreement specifi ed by the Community Relations Commission. Appendices

Appendices 303 Appendix 23: Implementation of price determinations

The Independent Pricing and Buses Taxis Regulatory Tribunal, IPART, determines maximum fares In January 2012, the NSW In July 2011, maximum fares for for the following services: Government increased Sydney, urban taxis were increased by 3.5 Newcastle, Wollongong, the per cent. For country taxis they rose • CityRail Central Coast, and the Hunter 3.6 per cent. Both increases were in • Buses bus fares by an average of 5.4 line with IPART’s recommendations. per cent line with cost of living • Sydney Ferries and increases for 2010 and 2011. Stockton Ferry. Private Ferries In December 2011, IPART increased TfNSW determines maximum maximum fares for country town In December 2011, maximum fares for private ferry and bus services by an average of 2.4 fares for slow ferry services taxi services based on per cent and reduced maximum increased by up to 6.1 per cent recommendations from IPART. fares for rural services by an and for fast ferry services fares average of 8 per cent. IPART’s increased by up to 4.5 per cent. determination means that the These increases were consistent CityRail maximum fares for country town with IPART’s recommendations. and rural bus services are now the In January 2012, the NSW same. The new determination came Government increased CityRail into eff ect on 1 January 2012. fares by an average of 5.4 per cent line with cost of living increases for 2010 and 2011. This was less than the 10.6 per cent Sydney Ferries and increase allowable under IPART’s Stockton Ferry maximum fare determination. In January 2012, the Government increased Sydney Ferries fares by an average of 5.4 per cent line with cost of living increases for 2010 and 2011.

In January 2012, the Government increased Stockton Ferry fares by 4.3 per cent in line with IPART’s determination of maximum fares.

304 Transport for NSW Annual Report 2011–12 Appendix 24: Payment of accounts

Payment of Accounts – Part A

0–30 30–60 60–90 90+ Total Quarter $’000 $’000 $’000 $’000 $’000 Payment of Accounts September 184,225 8,388 1,518 1,325 195,456 December 495,178 11,086 2,035 2,007 510,306 March 1,724,350 40,871 7,177 2,708 1,775,106 June 2,357,592 49,283 20,672 11,757 2,439,304

Payment of Accounts – Part B

Quarter Sept Dec Mar Jun Payment of Accounts Dollar amount of accounts due for payment ($'000) 195,456 510,306 1,775,106 2,439,304 Dollar amount of accounts paid on time ($'000) 184,225 495,178 1,724,350 2,357,592 Actual percentage of accounts paid on time (based on $) 94% 97% 97% 97% Target 95% 95% 95% 95%

Time for payment of accounts

Quarter Sept Dec Mar Jun Number of payments for interest on overdue accounts - - - - Interest paid on overdue accounts - - - -

Appendix 25: Time for payment of accounts

Payments to small business suppliers

Aged Analysis at the end of each quarter – TfNSW / DOT

Current (ie within Less than 30 Between 30 and Between 61 and More than 90 due date) days overdue 60 days overdue 90 days overdue days overdue $’000 $’000 $’000 $’000 $’000 All suppliers

September 184,225 8,388 1,518 592 733 Appendices December 495,178 11,086 2,035 1,157 850 March 1,724,350 40,871 7,177 1,604 1,104 June 2,357,592 49,283 20,672 3,486 8,271 Small business suppliers September 5 December 751 290 46 March 1,741 571 96 1 25 June 2,733 479 150 72 12

Appendices 305 Aged Analysis at the end of each quarter – TfNSW / DOT

Measure Sept Dec Mar Jun All suppliers Number of accounts due for payment 4,970 4,307 5,849 8,917 Number of accounts paid on time 4,159 3,376 4,044 6,040 Actual percentage of accounts paid on time (based on 84% 78% 69% 68% number of accounts) Dollar amount of accounts due for payment ($'000) 195,456 510,306 1,775,106 2,439,304 Dollar amount of accounts paid on time ($'000) 184,225 495,178 1,724,350 2,357,592 Actual percentage of accounts paid on time (based on $) 94% 97% 97% 97% Number of payments for interest on overdue accounts – – – – Interest paid on overdue accounts – – – –

Notes: 1) Number of accounts paid on time is based on invoice date 2) Signifi cant increase from 3rd quarter in both numbers and $ due to Transport Construction Authority being incorporated into TfNSW from April 2010

Aged Analysis at the end of each quarter – TfNSW / DOT

Measure Sept Dec Mar Jun Small business suppliers Number of accounts due for payment to small businesses 2 144 479 775 Number of accounts due to small businesses paid on time 2 121 352 547 Actual percentage of small business accounts paid on 100% 84% 73% 71% time (based on number of accounts) Dollar amount of accounts due for payment to small 51,0872,4343,446 businesses ($'000) Dollar amount of accounts due to small businesses paid 57511,7412,733 on time ($'000) Actual percentage of small business accounts paid on 100% 69% 72% 79% time (based on $) Number of payments to small businesses for interest on – – – – overdue accounts Interest paid to small businesses on overdue accounts – – – –

306 Transport for NSW Annual Report 2011–12 Appendix 26: Grants to non-government community organisations

These funds were provided needs groups who fi nd it more CTP aims to address transport for Home and Community diffi cult than most to access disadvantage at the local Care (HACC) and Community services. These groups include: level, primarily by promoting Transport Providers (CTP). effi cient use of a community’s • people from culturally and existing transport resources. HACC services in NSW, including linguistically diverse backgrounds transport, provide support to frail Transport disadvantage is defi ned • Aboriginal and Torres older people, younger people with as a circumstance or set of Strait Islander people a disability and their carers. Some circumstances that leaves those HACC services are mostly for, or • people with dementia that are aff ected by it with limited or may give priority to, special • fi nancially disadvantaged people no access to private transport. They have diffi culty in gaining access to • people living in remote conventional transport systems. or isolated areas

HACC and CTP Payments to Non-Government Community Transport Providers – Fiscal Year 2011-12

Community Transport Service Provider $ HACC $ CTP $ Total Accessible Bridge Service Inc 228,723 0 228,723 Awabakal Newcastle Aboriginal Cooperative Ltd 200,958 0 200,958 Bankstown Canterbury Community Transport Inc 1,338,509 0 1,338,509 Auburn Community Transport (Baptist Community Services 272,636 72,072 344,708 – NSW and ACT) Wagga Community Transport (Baptist Community Services 259,371 0 259,371 – NSW and ACT) Bathurst Community Transport Group Inc 425,551 77,907 503,457 Batlow Community Transport (Valmar Support Services Ltd) 72,176 30,308 102,484 Bega Valley Community Transport Service Inc 254,859 38,429 293,288 Blacktown Community Transport Inc 1,096,594 54,938 1,151,532 Blind and Vision Impaired Support Group (NSW Far North Coast) Inc 0 8,974 8,974 Aboriginal Culture & Resource Centre (ACRC) Blue Mountains 53,401 0 53,401 Bungree Aboriginal Association Inc 149,760 0 149,760 Orange Community Transport (CareWest Inc) 235,411 0 235,411 Cessnock Community Transport Inc 248,731 177,418 426,149 Clarence Community Transport Inc 1,060,530 94,058 1,154,588 Coalfi elds Neighbour Aid and Transport Service Inc 258,888 0 258,888 Coastwide Community Transport Ltd 1,440,745 40,263 1,481,007

Coff s Harbour, Bellingen and Nambucca Community Transport Inc 1,287,693 149,514 1,437,207 Appendices Community Transport (Central Coast) Inc 1,356,173 32,368 1,388,541 Community Transport Warren Inc 91,628 0 91,628 Community Wheels Inc 1,058,820 130,342 1,189,162 Cowra Information and Neighbourhood Centre Inc 104,485 54,774 159,259 Disabled Alternative Road Travel Service 335,184 0 335,184 Community Transport Port Stephens Ltd 517,219 96,452 613,671 Dubbo Neighbourhood Centre Inc 331,488 14,354 345,843 Dungog and District Neighbourcare Inc 209,372 11,499 220,871 Far West HACC Services Inc 130,809 33,917 164,727

Appendices 307 Community Transport Service Provider $ HACC $ CTP $ Total Gandangara Transport Services Ltd 542,193 0 542,193 GREAT Community Transport Inc 1,057,381 124,501 1,181,882 Gwydir HACC Services Inc 222,661 21,458 244,119 Hastings Macleay Community Transport Service Inc 1,125,464 15,784 1,141,248 Holdsworth Street Community Centre Inc 317,787 0 317,787 Hornsby Ku-ring-gai Community Aged/Disabled Transport Service Inc 935,759 0 935,759 Inner West Community Transport Inc 889,883 0 889,883 Deniliquin and Griffi th Community Transport (Intereach Ltd) 479,344 75,092 554,436 Inverell HACC Services Inc 183,671 17,733 201,404 Kalianna Enterprises Inc 545,851 27,582 573,434 Lake Cargelligo and District Care for the Aged Association Inc 122,219 20,388 142,607 Lane Cove Meeting House Association Inc 48,417 0 48,417 Leichhardt Community Transport Group Inc 908,197 70,844 979,041 Liverpool District Combined Senior Citizens Progress Association Inc 0 31,661 31,661 Lockhart and District Community Services Inc 76,166 22,699 98,865 Lower North Shore Community Transport Inc 569,387 39,794 609,181 Maitland Community Care Services Inc 546,347 72,726 619,073 Manly-Warringah Pittwater Community Transport Inc 660,564 43,535 704,100 Manning Valley and Area Community Transport Group Inc 1,051,632 131,668 1,183,300 Lake Macquarie Community Transport (Mercy Community Services) 1,125,396 92,204 1,217,599 Murrumburrah Harden Flexible Care Services Inc 115,183 15,760 130,943 Narrabri Home and Community Care Inc 140,030 0 140,030 Newcastle Community Transport Group Inc 774,638 0 774,638 Northern Illawarra Neighbour Aid Inc 89,210 16,612 105,823 Northern Rivers Community Transport Inc 1,239,060 92,593 1,331,653 Northern Rivers Public Transport Development Program 0 91,553 91,553 Ourcare Services Ltd 270,453 0 270,453 Oxley Community Transport Service Inc 427,828 116,305 544,133 Parkes and District Neighbourhood and Information Centre Inc 320,197 58,578 378,775 Peak Hill Community Bus Committee Inc 34,265 0 34,265 Peppercorn Services Inc 439,058 176,698 615,756 Randwick Waverley Community Transport Group Inc 998,698 0 998,698 Ryde-Hunters Hill Community Transport Association Inc 544,276 0 544,276 Rylstone District Care and Transport 99,925 0 99,925 Scotland Island Residents Association Inc 0 28,860 28,860 Shoalhaven Community Transport Service Inc 801,114 178,053 979,167 South East Neighbourhood Centre (Botany) 277,326 0 277,326 South East Sydney Community Transport Inc 1,002,310 76,916 1,079,227 Southern Highlands Community Transport Inc 743,048 83,948 826,996 South West Community Transport Inc 2,737,806 24,376 2,762,183 St George Community Transport Project Inc 1,156,365 46,007 1,202,372 Sutherland Shire Community Transport Inc 1,053,617 34,704 1,088,322 Tenterfi eld HACC Committee Inc 226,063 226,063

308 Transport for NSW Annual Report 2011–12 Community Transport Service Provider $ HACC $ CTP $ Total TransCare Hunter Ltd 393,906 141,187 535,094 Translinc Inc 224,409 36,341 260,749 Tweed, Byron and Ballina Community Transport Inc 1,685,280 80,766 1,766,046 Upper Clarence Valley Health and Welfare Council Inc 1,689 0 1,689 Weddin Community Services Inc 102,935 29,906 132,841 Western Region Community Transport Forum Inc 25,844 0 25,844 Western Sydney Community Forum 0 165,632 165,632 Wyalong and District Community Transport Group Inc 121,156 0 121,156 Young Community Transport Service Inc 131,637 25,965 157,602 $ TOTAL 40,605,364 3,446,016 44,051,379

Country Passenger Transport Infrastructure Grants

This scheme provides funding to improve the amenity of passenger transport infrastructure in rural, regional and remote communities of NSW.

State Grant LGA electorate Proponent Project description Towns approved Upper Hunter Upper Hunter Scone Solar transport lighting Scone $17,708 Neighbourhood at bus interchange and Resource Centre signage Scone Railway Station Susan St Scone Murrumbidgee Murrumbidgee Murrumbidgee 2 bus stop shelters Darlington $125,000 Shire Council Point, Waddi; Coleambally Narrandera Murrumbidgee Narrandera Shire Construction of amenities Barellan $50,000 Council – Yapunyah Street Barellan Cabonne Dubbo Cabonne Council Memorial Park Canowindra $23,200 Canowindra Country Link Bus Stop Northern Tweed Transit Australia Tweed Shire passenger Tweed Heads; $9,720 Rivers Group (Surfside timetable and bus stop Pottsville; Buslines) network map facilities Murwillumbah Cowra Burrinjuck Cowra Shire CHART Cowra Hail and Cowra $34,000 Council Ride Terminals Uralla Northern Uralla Shire 19 J poles and 9 seats Uralla $31,330 Tablelands Council project Appendices Gwydir Northern Gwydir State Warialda Rail CountryLink Warialda $6,000 Tablelands Council bus stop lighting improvement Young Burrinjuck Young Shire Lynch St passenger Young $48,200 Council shelter and improvements Walgett Barwon Walgett Shire Taxi shelter at Walgett Walgett $14,409 Council CBD Berrigan Murray Darling Berrigan Shire Finley bus stop relocation Finley $12,400 Council and upgrade

Appendices 309 State Grant LGA electorate Proponent Project description Towns approved Port Stephens Port Stephens Lions Club of Bus shelter modifi cation – Salamander $7,500 Soldiers Point disabled Bay; Anna Bay; One Mile; Salt Ash; Soldiers Pt; Corlette; Shoal Bay; Bobs Farm Mid Western Bathurst Mid Western Ilford rest stop amenities Ilford $35,000 Regional Council Narrabri Barwon Narrabri Shire Pilliga bus shelter Pilliga $43,000 Council Warren Barwon Warren Shire Warren Shire bus shelter Warren Nevertire $8,600 Council enhancements Lismore Lismore Lismore City Installation of new Lismore $28,975 Council community shelter complying with disability standards for accessible public transport Liverpool Upper Hunter Liverpool Plains Quirindi community public Willow Tree $14,040 Plains Shire Council transport infrastructure Quirindi Port Stephens Port Stephens Port Stephens DDA-compliant public Raymond Terrace; $160,000 Council transport Infrastructure Medowie; Corlette; Nelson Bay Wingecarribee Goulburn; Wingecarribee Wingecarribee public Robertson; New $196,000 Kiama Shire Council transport access Berrima; Exeter; improvement program Colo Vale; Hill Top; Berrima Village; Mittagong Yass Valley Burrinjuck Yass Valley Country passenger bus Yass $ 20,686 Council stop Eurobadalla Bega Eurobadalla Shire Bus shelter, The Manor Catalina $ 15,000 Council Bus shelter, southbound, Denhams Beach $ 20,000 Denhams Beach Bus shelter, southbound, Bodalla $ 20,000 Bodalla Bus shelter, northbound, Bodalla $ 20,000 Bodalla Port Port Macquarie Port Macquarie- Accessible bus shelters Laurieton; $ 120,000 Macquarie Hastings Council Wauchope; Pt Macquarie; Lake Cathie; North Haven Cessnock Cessnock Cessnock City Cessnock public transport North Rothbury; $ 109,632 Council improvements program Heddon Greta; Kurri, Branxton; East Branxton; Abermain; Quorrobolong; Neath; Weston

310 Transport for NSW Annual Report 2011–12 State Grant LGA electorate Proponent Project description Towns approved Dubbo Dubbo Dubbo City Installation of a bus Dubbo $ 33,250 Council stop in Darling St near intersection of Talbragar St Installation of a bus stop in Dubbo $ 29,000 Jack William Dr Installation of a bus stop in Dubbo $ 29,000 Myall St near intersection of Websdale Dr Upgrade three existing Dubbo $ 32,000 bus shelters to meet disability access standards Greater Taree Myall Lakes Greater Taree City Krambach bus shelter Krambach $ 17,600 Council Greater Taree Myall Lakes Greater Taree City J poles and related Tinonee; Burrell $ 2,850 Council equipment Creek Kiama Kiama Kiama Municipal Passenger amenity Kiama Gerringong $ 63,000 Council upgrades, Kiama Bogan Barwon Bogan Shire Vanges Park bus shelter Nyngan $ 18,500 Council Kempsey Oxley Kempsey Shire York St, CBD taxi rank Kempsey $ 40,000 Council Bus shelter, Gordon Young South West Rocks $ 10,200 Dr, South West Rocks Bus shelter, Crescent Crescent Head $ 10,200 Head CBD TOTAL $ 1,476,000

Appendix 27: Overseas travel by TfNSW offi cers

Offi cer Name Date Destination Purpose Rachel Johnson 18-20 November New Zealand In capacity as NSW Marine Pollution Controller to assist response to the oil spill near Tauranga Harbour by the vessel Rena. Shayne Wilde 18-20 November New Zealand To assist response to the oil spill near Tauranga Appendices Harbour by the vessel Rena. Keith Simmons, Principal 14 – 16 March Wellington, To attend Australian New Car Assessment Program Manager Safer Vehicles New Zealand (ANCAP) board meeting Brendan Nugent Mexico City, To attend World Road Association Congress to Mexico present papers and chair sessions Brendan Nugent Paris, France Chair of Technical Committee for the World Road Association

Appendices 311 Appendix 28: Payments to consultants

Consultants over $50,000 Name of Consultant Purpose $'000 Ernst & Young Long Term Master Plan 805 Deloitte Touche Tohmatsu Franchising Sydney Ferries 794 Hyder Consulting Pty Ltd Modelling Framework for NSW Freight Strategy 390 Booz & Company (Aust) Pty Ltd Transport Corridor Strategy for Sydney 370 Deloitte Touche Tohmatsu Advice on strategic commercial issues 311 Price Waterhouse Coopers Plan & Governance Framework 254 Capgemini Australia Pty Ltd TfNSW Integration project 168 Capgemini Australia Pty Ltd Reform of Corporate Shared Services 115 Deloitte Touche Tohmatsu Freight Strategy Support 159 Booz & Company (Aust) Pty Ltd Revenue Strategy Development 151 Lek Consulting Consulting Services Port Botany 136 The Boston Consulting Group Pty Ltd NSW Transport & Ticketing 135 Evans & Peck Pty Ltd Transport Cluster Review 135 P & L IT Business Advice Pty Ltd Franchising Sydney Ferries Project 122 Booz & Company (Aust) Pty Ltd Revenue Protection Framework 113 Ernst & Young Customer Experience Railcorp Reform 112 Monash University Road Safety Strategy Modelling 107 Booz & Company (Aust) Pty Ltd Change Manage Support 104 ILX Group Speed Management Strategy 101 HP Autonomy Speed Management Strategy 100 IPSOS Public Aff airs Pty Ltd National Motorcycle Research Study 92 Taylor Nelson Sofres Australia Pty Segmentation Study 92 Price Waterhouse Coopers Advice for Sydney Annual Taxi Licence determination 85 KPMG Advisory services to Department of Transport 84 UXC Connect T/A Preparation Of TfNSW ICT Strategy 75 Ernst & Young CRSC System Architecture 71 Manidis Roberts Pty Ltd North West Rail Link planning overview 67 P & L IT Business Advice Pty Ltd Strategic IT advice and development 62 Capgemini Australia Pty Ltd Information & Communication Technology Strategy 58 Manidis Roberts Pty Ltd DoT Strategic Alignment 55 Rare Consulting Pty Ltd Strategy for Rail Freight in NSW 52 5,476

Consultants under $50,000 $'000 25 engagements 503 Total payments to consultants in 2011-12 5,979

312 Transport for NSW Annual Report 2011–12 Appendix 29: Research and development

Primary Research • Public Transport Project Model – Papers to Australasian This was developed to estimate Transport Research Forum: • Household Travel Survey 2011–12 public transport patronage for – This continuous survey by project evaluation. It has been • Extending the Sydney Strategic TfNSW’s Bureau of Transport used extensively to provide Model to represent toll road Statistics provides comprehensive patronage forecasts for the and park-and-ride choices information on the travel North West Rail Link and Sydney • An empirical assessment of patterns of residents of Sydney, Strategic Light Rail Plan projects, teleworking using Sydney Newcastle and the Illawarra. Long Term Transport Master Household Travel Survey data It informs transport planning Plan, Rail Strategy and Bus Plan. and policy and monitors the • Forecasting car ownership strategic NSW 2021 targets for in the Sydney area public transport mode share. Other Research • Prediction of vehicle • Sydney Cycling Survey 2011 kilometres travelled: A multi- – TfNSW and Roads and • Transport market surveys for level modelling approach the North West Rail Link, Light Maritime Services measured • Detailed analysis of the travel Rail and Wynyard Master Plan: cycling activity (mode share) patterns of rail users in Sydney. against the NSW 2021 target. modelling to estimate likely The survey also collected demand for each project. information on community • Sydney CBD shuttle service cycling participation and its customer surveys and passenger attitudes about toward cycling. counts: On-board customer • Rail barrier counts for CBD surveys and passenger counts Stations 2012 – The annual collected information about trip barrier count of CBD stations characteristics and customer was conducted in May. The profi les to inform service reviews. data collected is an important input to rail patronage estimates, for strategic rail Publications and planning and timetabling. statistical products

• 2011 Transport Customer Survey, Customer Satisfaction with Model Development Public Transport Services • Strategic Travel Model (STM) – • 2009/10 Household Travel Survey TfNSW continued to improve Summary Report, released in 2011 STM as part of better meeting • 2010/11 Household Travel customer needs. The work Survey – Key Indicators for involved updating parameters Sydney, released in 2012 to separately model park and

ride, kiss and ride access, and • Detailed tables and Appendices bus and walk modes to rail. graphs from the 2010/11 Household Travel Survey • Population Segmentation Forecasting Model – Forecasting • Summary transport statistics models were developed to inform by Local Government Area. the STM. This allows long-term small area population forecasts to be segmented by selected socio- demographic characteristics.

Appendices 313 Appendix 30: Waste Reduction

Transport for NSW has a range TfNSW is also required to Equipment and furniture is of programs to ensure it meets purchase products with recyclable re-assigned whenever possible requirements of the NSW Waste content where possible. There to reduce the need to purchase Reduction and Purchasing Policy. is no requirement on the grade new replacements. Excess-to- of recyclability, but it makes requirement workstations are kept In TfNSW’s construction projects, this grade as high as possible for future use, while redundant sustainable procurement initiatives without compromising cost, components are scrapped. Surplus encourage industry, materials effi ciency and quality. furniture is made available to suppliers and construction other government agencies. contractors to explore Several types of recycling bins more sustainable materials, are present throughout offi ces, Recycling of mobile phone and manufacture and construction. including co-mingle bins in toner cartridges continues. kitchen, to ensure that staff have This includes use of geopolymer many options when disposing concrete (which re-uses waste of recyclable material. products like fl y ash and slag), reductions in the quantity of The National Australian Built cement in concrete applications, Environment Rating System cuts in diesel use across plant and (NABERS) assists owners and equipment and applying water tenants to reduce energy use, sensitive urban design principles. reduce energy costs and reduce greenhouse emissions. TfNSW’s In its offi ces, all photocopy and headquarters offi ce at Lee printing material purchased Street, Sydney, has increased for general use is made up of its rating 3.5 stars to 4.5 stars 100 per cent recycled content, from 2010-2012. It continuously exceeding the quantity mandated looks at ways to improve by government. Stationery NABERS ratings for all offi ces. procurement is centralised to ensure sustainable products are purchased.

314 Transport for NSW Annual Report 2011–12 Appendix 31: Bus contract region map

Upper Mangrove Wrights Creek Palm Grove Ourimbah Mangrove Mountain Colo Heights OMBSC Region 6 – Central Coast – Peats Ridge Wollangambe Webbs Creek Lower Macdonald Busways Central Coast Pty Ltd Lisarow Somersby

Gunderman 6 Narara Wyom Glenworth Valley Calga Upper Colo Colo Gosford 7 Lower Portland Leets Vale Spencer Mountain Lagoon Laughtondale Mount White Tascott Green P Bilpin Wheeny Creek Kariong Maroota Saratoga Woy Woy Blaxlands Ridge Sackville North Bar Point Canoelands Wondabyne Kurrajong East Kurrajong South Maroota Ebenezer Glossodia Box Head Tenny son Patonga The Devils Wilderness Wilberforce Cattai Kurmond Fiddletown Freemans Reach North Richmond Glenorie Cowan Brooklyn Grose Vale Pitt Town 4 Cornwallis Maraylya Scheyville Grose Wold Richmond Berrilee Arcadia Oakville Berowra Avalon Agnes Banks Ku-ring-gai Chase OMBSC Region 8 - Nelson Yarramundi Kenthurst Blue Mountains - Vineyard Galston Box Hill 12 Blue Mountains Bus Co. Londonderry 14 Mona Vale Riverstone Winmalee 1 Dural Ingleside Castlereagh Rouse Hill 8 Springwood Cranebrook Marsden Park Schofields Kellyville Hornsby Wahroonga Yellow Rock Llandilo Shanes Park Belrose Lawson St Ives Collaroy Warrimoo Castle Hill 8 Pymble Frenchs Forest Blaxland Penrith Woodford Baulkham Hills Gordon Blacktown Kingswood Seven Hills Epping Lindfield Mount Druitt Eastwood Chatswood Blue Mountains National Park St Clair Eastern Creek Ryde Orchard Hills Prospect 7 Manly Erskine Park Parramatta Rosehill Mulgoa North Sydney Kemps Creek Wetherill Park Olympic Park Horsley Park Smithfield Auburn Strathfield Luddenham Fairfield Town Hall Badgerys Creek 3 Wallacia Cecil Hills 6 Central Cecil Park 13 Yagoona Bondi Greenacre Bankstown Liverpool 9 Austral Greendale Moorebank Mascot Silverdale Maroubra Prestons KSA Bringelly Rossmore Milperra 5 Coogee 2 Casula Bexley

National Park Leppington Glenfield Hurstville Oatley Botany Bay Denham Court Werombi Theresa Park Cobbitty Illawong Ingleburn Oran Park Varroville 10 Raby Kurnell Menai Minto Orangeville Sutherland

Cronulla Kentlyn Nattai Campbelltown Holsworthy Spring Farm Engadine 15 Oakdale

The Oaks Heathcote 11 Mount Hunter Cawdor Royal National Park

Menangle Gilead Wedderburn

Razorback Woronora Dam

Douglas Park Helensburgh Lilyvale Picton Lakesland

9Otford Appendices Thirlmere Appin Darkes Forest Tahm oor OMBSC Region 9 – Pheasants Nest North Wollongong – Northern Wollongong Wilton Area Management Pty Ltd

Wattle Ridge Cataract Balmoral Thirroul

Bulli Metropolitan Bus Services Contract Regions August 2012 . MBSC Region 1 – Area 1 Management Company Pty Ltd MBSC Region 6 - (South) - Sydney Buses - STA MBSC Region 11 - Veolia Transport South Pty Ltd 05102.5 Km MBSC Region 2 – Area 2 Management Company Pty Ltd MBSC Region 7 - (West) - Sydney Buses - STA MBSC Region 12 - Transdev NSW Pty Ltd MBSC Region 3 - Area 3 Management Company Pty Ltd MBSC Region 8 - (North) - Sydney Buses - STA MBSC Region 13 - Veolia Transport NSW Pty Ltd

MBSC Region 4 - Hillsbus Co Pty Ltd MBSC Region 9 - (East) - Sydney Buses - STA MBSC Region 14 - Forest Coach Lines Pty Ltd

MBSC Region 5 - Punchbowl Bus Company Pty Ltd MBSC Region 10 - Veolia Transport NSW Pty Ltd MBSC Region 15 - Busways Campbelltown Pty Ltd Produced by TfNSW, Bureau of Transport Statistics Req11/257, Date 10/09/2012

Appendices 315 Appendix 32: CityRail network map

)

e e h llarobba rabrookrata (University larah ctoria Street rro CityRail network DungogWirragullaWa HilldalMartinsPaterson CreekMindaribbaTe MaitlandHigh StreetEast MaitlandVi MetfordThorntonBeresfieldTa HexhamSandgatWa Wa

Lochinvar a Greta ralb HamiltonWickhamCivic FassifernBooragul Cockle Te Creek Includes South West rail link - under construction Awaba Scone a n Dora Creek ff Aberdeen SingletonBranxton Morisset Cardi Kotar Muswellbrook Newcastle Wyee Adamstow Broadmeadow Blackalls Warnervale Park Wyong Bathurst Toronto Tuggerah Kelso Ourimbah Raglan Lisarow Yetholme Niagara Park Meadow Flat Narara Mount Lambie Wallerawang Gosford Lithgow Point Clare Zig Zag ondabyne Tascott Cowan HawkesburyW River Koolewong Bell Berowra Mount Victoria Woy Woy Blackheath Mount Kuring-gai Hawkesbury River Medlow Bath Hornsby Mount Colah Katoomba Asquith Richmond Normanhurst Waitara Leura East Richmond Thornleigh Wahroonga Wentworth Falls Warrawee Clarendon Pennant Hills Bullaburra Turramurra Windsor Lawson Beecroft Pymble Hazelbrook Mulgrave Gordon Woodford Vineyard Killara Cheltenham Lindfield Linden Roseville Faulconbridge Riverstone Epping Chatswood Springwood Schofields Artarmon Valley Heights Quakers Hill St Leonards Warrimoo Carlingford Macquarie Wollstonecraft North Ryde Blaxland Marayong University Waverton Sydney Harbour Eastwood Macquarie Park Glenbrook Telopea North Sydney Lapstone Denistone Milsons Point Blacktown Circular Quay Dundas West Ryde

Penrith rringtonSt Marys Seven Hills Meadowbank Rooty HillDoonside Rydalmere Emu Plains KingswoodWe Toongabbie Mount Druitt Wynyard y Martin Place Pendle Hill Rhodes Camellia s Mktl Wentworthville Concord West Town Kings Cross entworth Park Westmead LilyfieldRozelleJubilee BayGlebe ParkW Fish MarketJohn StStar Square CityPyrmontConvention BaExhibitionPaddy’ CentreCapitoSquare Hall St James Edgecliff CityRail suburban train lines Rosehill North Strathfield Parramatta City Bondi Olympic Central Circle Junction Eastern Suburbs & Illawarra Line Harris Park Park Bankstown Line Redfern Merrylands Clyde Inner West Line Museum Guildford Cumberland Line Granville n Airport & East Hills Line Yennora e n Peak hours only Aubur Erskineville CroydonAshfield Lewisham StanmorNewtown Homebush Burwood Petersham Green Square South Line Fairfield Lidcombe Flemington Strathfield Summer Hill St Peters n Berala Macdonaldtow North Shore & Western Line illawood Canley Vale CarramarV LeightonfieldChesterSefto Hill Regents Park Peak hours only Mascot Northern Line Cabramatta Sydenham n k y k Carlingford Line Warwick Farm Birrongagoona Campsie Y LakembaBelmore Tempe Liverpool Wiley Par Canterbur Domestic Airport Olympic Park Sprint BankstowPunchbowl DulwichMarrickville Hill and special event services Casula Hurlstone Par International Station access Wolli Creek Airport fee applies at CityRail intercity train lines these stations Glenfield LeppingtonEdmondson Park South Coast Line y a w k Arncliffe Banksia Turrella South West rail link Panani Padsto Narwee Rockdale Weekends and selected weekday services East Hills Revesby under construction Holsworth Riverwood Beverly HillsKingsgrove Kogarah Botany Bay Bexley NorthBardwell Par Carlton Southern Highlands Line Macquarie Fields Allawah Hurstville Blue Mountains Line Ingleburn Penshurst Mortdale Newcastle & Central Coast Line Minto Oatley e

CityRail regional train line Como a Leumeah Jannali ooloowaronulla Hunter Line Some Southern Highlands services Sutherland Kirrawee Gyme Miranda CaringbahW Cr operate directly to and from Central. Campbelltown CityRail bus services Loftus Engadine South Coast to Southern Heathcote Highlands and Macarthur Bowral to Picton (Loop Line) Waterfall Helensburgh Bathurst to Lithgow* Menangle Park Otford Toronto to Fassifern Menangle Stanwell Park * Bookings are essential for this service. Coalcliff For reservations, please phone 13 22 32. Douglas Park Scarborough Tram line Picton Wombarra Lilyfield Line Coledale Operated by Metro Transport Sydney. Austinmer Separate fares apply. Thirroul Bulli Transport interchanges Woonona Interchange between CityRail services Tahmoor Bellambi Bus (including bus transitways) Thirlmere Corrimal Ferry wharf near station Towradgi Couridjah Bargo Monorail stop near station Fairy Meadow Buxton North Wollongong Tram Balmoral Yerrinbool Wollongong s Coach Coniston Sydney Airport Hill Top LysaghtCringilaPort KemblaPort Kembla North Car park near station Colo Vale Unanderra Stations with wheelchair access Kembla Grange Racecourse N Dapto Wheelchair access Mittagong (staffed for all train services) Albion Park Oak Flats Wheelchair access Bowral Burrawang Robertson (not staffed for all train services) Dunmore (Shellharbour) Burradoo Minnamurra Assisted access (May be accessible Moss Vale with help from a friend or carer. Bombo Please check prior to travel.) Exeter Kiama

Map full network grid 440x317 (A3 oversize) welcome aboard April 2011 Bundanoon Gerringong © Copyright RailCorp April 2011 Penrose Berry Wingello Bomaderry (Nowra) Tallong Marulan Goulburn www.cityrail.info Transport Info 131 500

316 Transport for NSW Annual Report 2011–12 Appendix 33: CountryLink network map

CountryLink services, facilities and bookings CountryLink Roma Street (Brisbane) CountryLink train services Interchanges and station facilities Beenleigh North Coast train services Interchange between CountryLink services Gold Coast Robina Surfers Paradise train and coach North Western train services Car park at station Burleigh Heads Palm Beach Western train services Stations with wheelchair access Queensland Tweed Heads Southern train services Assisted access South Tweed Heads network Chinderah (May be accessible with help from a friend Kingscliff CountryLink coach services or carer. Please check prior to travel.) New Murwillumbah Bogangar Hastings Point North Coast coach services Burringbar South Pottsville CountryLink bookings Mooball NT North Western coach services Wales Northern Rivers Billinudgel turnoff Qld s6isit www.countrylink.info Ocean Shores turnoff WA Brunswick Heads Western coach services Kyogle SA s0HONE Mullumbimby NSW LismoreBexhill Clunes Binna BurraBangalow Southern coach services s/RCONTACTYOURNEAREST#OUNTRY,INKTRAVELCENTRE Byron Bay Vic or licensed travel agent. Casino Suffolk Park All CountryLink coach services are wheelchair Eltham Lennox Head T accessible (with 48 hours’ notice to CountryLink) Tenterfield Ballina Ballina West Goonellabah llongbar Wardell Bolivia Wo Alstonville Broadwater Evans Head Deepwater Woodburn Woombah Iluka

a Dundee Chatsworth Island Clarence River f l riald Maclean Biniguy Gravesend Wa DelungraMt Russellturnof Inverel st a Moree Glen Innes y We Lightning Ridge Gibraltar Range Tyndale Yamb mba Warialda Rail Gilgai Glencoe Cowper Ya North West Palmers Island Jackadger Ulmarra Bingara Tingha Bellata Llangothlin Grafton Bourke Brewarrina Burren Junction Wee Waa Cobbadah Bundarra Guyra Walgett Northern Coffs Harbour Narrabri Barraba Yarrowyck Tablelands Sawtell Upper Manilla Gongolgon Armidale Urunga Byrock Manilla Nambucca Heads Upper West Uralla Coonamble Macksville Boggabri Walcha Attunga Eungai Coolabah Baradine Walcha Road Kempsey Hastings River Gunnedah Kootingal Wauchope Port Macquarie Coonabarabran n Girilambone Tamworth Kendall Gulargambone North Coast a e e Werris Creek Taree Binnaway Wilcanni Emmdal Cobar Boppy Mountai Hermidal Quirindi Hallidays Point turnoff Nyngan Mendooran Coolah Willow Tree Wingham Tuncurry Warren Gilgandra Murrurundi Mt George turnoff Forster Nevertire Burrell Creek Broken Hill Dunedoo Scone Forster Keys Gloucester Krambach Craboon Junction Tiona Park Aberdeen Eumungerie Gulgong Belbora Pacific Palms Trangie Mudgee Town Stratford Mudgee Station Craven Smiths Lake turnoff Dubbo Lue Menindee Muswellbrook Wards River Bungwahl Narromine Stroud Road Rylstone Rylstone Hospital Dungog Geurie t Tomingley Kandos Stroud Bulahdelah Darnick Charbon Booral Nerong Singleton ea Gardens Wellington Clandulla Allworth turnoff T Hawks Nes Peak Hill Ilford Limeburners Tea Gardens turnoff Central West Running Stream Creek Karuah Port Stephens est Stuart Town Maitland Ivanhoe Alectown Central Capertee e Raymond Terrace Ben Bullen Tablelands Hunter Newcastle Cullen Bullen Port Hunter rrabandai Orange Portland East Broadmeadow Euabalong W Condobolin Ootha Ya Bogan Gat Parkes Molong Derriwong Lucknow e Portland Fassifern Spring Hill Wallerawang Central Euabalong Millthorpe tholme Wyong Coast Manildra Kelso RaglanYe MeadowMt Flat Lambi Lithgow ictoria Gosford

Lake Cargelligo Forbes Mt V Hornsby Cudal KatoombaPenrithBlacktownParramatta Eugowra Carcoar Central Rydal Sydney Harbour Blayney Tarana (Sydney) Tullibigeal Canowindra Mandurama Bathurst Lower West Botany Bay Lyndhurst Strathfield Ungarie t Woodstock Bumbaldry Oberon Hartley Campbelltown Wollongong West Wyalong Cowra Hampton n Grenfell Good Fores Little Hartley Mittagong Dapto Wyalong BurrawangRobertso Koorawatha Bowral Albion Park Port Kembla Barmedman Moss Vale Illawarra Lake Illawarra Bendick Murrell Southern Tablelands Bundanoon Exeter Young

enda mora Harden Yass Junction Gunning Y Binya BarellanArdlethanBeckom Ariah Park Te Stockinbingal Griffith Goulburn

f Wallendbeen

o Cootamundra Galong n BinalongBowning d anc Yass Y n n ACT Tarago Sunraysia Whitto Muttama Narrandera Coolamon Murrumbateman BurongaEusto BalranalHay CarrathoolDarlington turnof Point Grong GrongMatong Ganmai Coolac Jervis Bay Leeton Canberra Junee Gundagai Bungendore Mildura Canberra Civic Tumut Robinvale t Queanbeyan New South Wales Tumblong Adelong Jerilderie Urana Lockhar Victoria n Wagga Wagga Wondalga Canberra John James Hospital y Batlow Batemans Bay Deniliqui Blight Finley Riverina South Canberra Hospital Berrigan The Rock Laurel Hill South a West a Henty Snowy Michelago Coast Mathoura Tocumwal Slopes Tumbarumba Howlong Culcairn Mountains N Mulwal Corow Bredbo Moama Barooga Albury Cooma Echuca Wangaratta Nimmitabel

Cobram Victoria New South Wales Bemboka Yarrawonga Benalla Bega Bibbenluke Wolumla

Bombala Merimbula Pambula Eden Twofold Bay Appendices

Southern Cross (Melbourne)

Port Phillip Bay #,ALLNETWORK*UNEXTRIM www.countrylink.info "OOKINGS

¥2AIL#ORP*UNE Map not to scale

Appendices 317 Appendix 34: Sydney Ferries network map

Appendix 35: Regional air services map

Lismore Ballina Queensland

Moree Grafton

Coffs Narrabri Harbour Armidale

Tamworth Lord Port Howe Macquarie Island Cobar Broken Hill Taree Dubbo South Australia Mudgee Newcastle (Williamtown)

Parkes Orange Bathurst

Sydney Griffith

Narrandera

Wagga Wagga Queanbeyan (Canberra) ACT Moruya Albury Victoria Cooma

Merimbula

318 Transport for NSW Annual Report 2011–12 Index Index

Index 319 Index

This index lists the legislative requirements set out in the NSW Treasury checklist for public sector annual reporting, and the pages on which the relevant information can be found.

A E I

Access (contact details) 322 Equal Employment Opportunity 297 Identifi cation of audited Activities 4 Executive offi cers 259 fi nancial statements 55 After balance date events 289 Executive performance 260 Implementation of price Agreements with Community Exemptions from the Financial determinations 304 Relations Commission 303 Reporting Code 289 Independent Auditor’s Report 50 Aims and objectives 4, 6 Index 320 Annual Report production cost 322 Internal Audit and Risk Management Statement 291 F

B 2011-12 Financial Statements 50 Funds granted to non-government J community organisations 307

C G K Charter 6, 7 Consultants 312 Government Information Credit card certifi cation 294 (Public Access) Act 254

L

D H Land values and disposals 290 Legal changes 251, 252 Disclosure of Controlled Entities 290 Human Resources 295 Letter of Submission Disclosure of Subsidiaries 290 inside front cover

M

Management and activities 276 Management – executive and qualifi cations 259 Multicultural policies and services program 302

320 Transport for NSW Annual Report 2011–12 N S X

Summary review of operations 4

O Y T Occupational health and safety 299 Organisation structure 10 Table of Contents inside front cover Time for payment of accounts 305 Z

P U Payment of accounts 305 Promotion (Overseas visits by TfNSW offi cers) 311 Privacy and Personal Information Protection Act 1998 257 V Public Interest Disclosures (Public Interest Disclosures Act 1994) 258

W

Q Waste 314 Works in progress included in Projects listings pp 280–288

R

Research and development 313 Response to matters raised by the Auditor General 289 Review of operations 15–49 Risk Management 293 Index

Index 321 Contact details

Transport Info 131500 www.131500.com.au

24 hour traffi c information line 132701 Incident reporting hotline 131700 www.livetraffi c.com

Head offi ce Newcastle Offi ce Transport Management Centre 18 Lee Street, Ground Floor, 239 King Street, 25 Garden Street, Chippendale NSW 2008 Newcastle NSW 2300 Eveleigh NSW 2015 PO Box K659, Haymarket NSW 1240 PO Box 871, Newcastle NSW 2300 PO Box 1625, Ph: 02 8202 2200 Toll Free: 1800 049 983 Strawberry Hills NSW 2012 Fax: 02 8202 2209 Ph: 02 4929 7006 Ph: 02 8396 1400 Fax: 02 4929 6288 Parramatta Offi ce Bureau of Transport Statistics Level 6, 16-18 Wentworth Street, Wollongong Offi ce 18 Lee St Chippendale NSW 2008 Parramatta NSW 2150 280 Keira Street, PO Box K659 Haymarket NSW 1240 Locked Bag 5085, Wollongong NSW 2500 Ph: 02 8202 3868 Parramatta NSW 2124 PO Box 5215, Fax: 02 8202 3890 Ph: 02 8836 3100 02 Wollongong NSW 2520 Fax: 8836 3151 Toll free: 1800 049 961 Ph: 02 8265 6600 Fax: 02 8265 6633

To minimise environmental and fi nancial costs, Transport for NSW does not produce paper copies of its annual report.

The annual report is available on Transport for NSW’s internet home page www.transport.nsw.gov.au under the About Us tab.

The cost of producing this annual report was $41,422.47.

322 Transport for NSW Annual Report 2011–12 Local and Illawarra Riverina/Murray Community Transport Level 5, 280 Keira Street, Premier’s Department Regional Coordinators Wollongong NSW 2500 PO Box 2460, Ph: 02 8265 6624 Wagga Wagga NSW 2650 Central Coast Fax: 02 8265 6633 Ph: 02 6926 8620 PO Box 1327, Gosford NSW 2250 Fax: 02 6921 4654 Ph: 02 4337 2313 Mid North Coast Fax: 02 4324 2698 PO Box 505, South East Coff s Harbour NSW 2450 Premiers Department Offi ce Central West Ph: 02 6648 7231 PO Box 1594 Level 2, 140 William St, Fax: 02 6650 9982 Queanbeyan 2620 Bathurst NSW 2795 Ph: 02 6229 7811 Ph: 02 6339 4910 New England/North West Fax: 02 6229 7801 Fax: 02 6339 4949 PO Box 494, Armidale NSW 2350 Ph: 02 6773 7015 Far West Fax: 02 6772 2336 For more information about c/- NSW Industry & Investment, this annual report: Ground Floor, Northern Rivers Aboriginal Project and PO Box 786, Broken Hill NSW 2880 Department of Transport Liaison Offi cer Ph: 08 8087 7050 Transport for NSW PO Box 693, Lismore NSW 2480 Fax: 08 8088 5100 PO Box K659 Ph: 02 6621 9424 Haymarket NSW 1240 Hunter Fax: 02 6621 2006 Ph: 02 8202 2200 239 King Street, Newcastle NSW 2300 Orana Ph: 0408 679 202 c/- Communities, Fax: 02 4929 6288 Sport and Recreation PO Box 2913, Dubbo NSW 2830 Ph: 02 6884 6626 Fax: 02 6884 7812 © Transport for New South Wales 2012

For further enquiries Pub. 09.261 transport.nsw.gov.au | 131 500 ISBN 978-1-922030-27-6