Great Southern Development Commission Building partnerships for regional prosperity
STATEMENT OF COMPLIANCE
Hon John Bowler, JP MLA Minister for Local Government and Regional Development; Land Information; Goldfields-Esperance and Great Southern 11th Floor Dumas House 2 Havelock Street WEST PERTH WA 6005
Sir,
In accordance with provisions of Section 66 of the Financial Administration and Audit Act 1985 [as amended], we submit the report of operations and proceedings of the Great Southern Development Commission for the period from 1 July 2004 to 30 June 2005.
RUSSELL HARRISON BRUCE W MANNING CHAIRMAN CHIEF EXECUTIVE OFFICER
Great Southern Development Commission Great Southern Development Commission Pyrmont House 10 Dore Street 110 Serpentine Road KATANNING WA 6317 ALBANY WA 6330 Telephone: (08) 9821 3211 Telephone: (08) 9842 4888 Facsimile: (08) 9821 3336 Facsimile: (08) 9842 4828 Email: [email protected] Email: [email protected] Web site: www.gsdc.wa.gov.au
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STATEMENT OF COMPLIANCE WITH RELEVANT WRITTEN LAW
The Great Southern Development Commission was established under the Regional Development Commissions Act 1993.
Legislation Administered
The Commission does not administer legislation.
Legislation Impacting on Office Activities
In the performance of its functions, the Commission has complied with the following relevant written laws:
* The Regional Development Commissions Act 1993 (as amended) * Financial Administration and Audit Act 1985 * Public Service General Agreement 2004 * Public Sector Management Act 1994 * Public Service Award 1992 * State Supply Commission Act 1991 * State Records Act 2000 * Salaries and Allowances Act 1975 * Equal Opportunity Act 1984 * Freedom of Information Act 1992 * Government Employees Superannuation Act 1987 * Occupational Safety and Health Act 1984 * Official Corruption Commission Act 1998 * Library Board of Western Australia Act 1951 * Disability Services Act 1993 * Public Disclosure Act 2003 * Worker’s compensation and Assistance Act 1981 * Circulars to Ministers from the Premier
In the financial administration of the Commission, we have complied with the requirements of the Financial Administration and Audit Act 1985 and every other relevant written law, and exercised controls which provide reasonable assurance that the receipt and expenditure of moneys and the acquisition and disposal of public property and incurring of liabilities have been in accordance with legislative provisions.
At the date of signing, we are not aware of any circumstances which would render the particulars included in this statement misleading or inaccurate.
RUSSELL HARRISON BRUCE W MANNING BERT PARDINI CHAIRMAN CHIEF EXECUTIVE PRINCIPAL ACCOUNTING
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OFFICER OFFICER TABLE OF CONTENTS Page
1 CHAIRMAN’S FOREWORD 5
2 THE GREAT SOUTHERN REGION 8
3 GSDC CORPORATE PROFILE 10 3.1 General Information 10 3.2 Corporate Structure 11 3.3 Board 12 3.4 GSDC Operational Staff Complement 15
4 GSDC STRATEGIC PLAN 16 Key Goals of the Commission 17 4.1 Goal 1 Regional Leadership 17 4.2 Goal 2 Industry Development 18 4.3 Goal 3 Improve Infrastructure 19 4.4 Goal 4 Natural Resource Management 20 4.5 Goal 5 Efficient Agency Performance 21
5 REPORT ON OPERATIONS FOR THE 2004/2005 YEAR 22 5.1 Output: Regional Development 22 5.1.1 Goal 1 Regional Leadership 27 5.1.2 Goal 2 Industry Development 34 5.1.3 Goal 3 Improve Infrastructure 41 5.1.4 Goal 4 Natural Resource Management 47 5.1.5 Goal 5 Efficient Agency Performance 51 Mungart Boodja Noongar Art Centre 51 Capital Purchases 51 Financial Management Information System (FMIS) 51 Staff Training, Recruitment and Development 51 Workers Compensation and Rehabilitation Arrangement 52 WA Cleaner Production 52 Sustainability Action Plan 52
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Complaints Policy 54 Equal Employment Opportunity Outcomes 54 Cultural Diversity and Language Services Outcomes 54 Youth Outcomes 55 Recordkeeping Plan 55 Freedom of Information Statement 56 Disability Service Plan 57 Risk Management Plan 58 Electoral Act 1907 Compliance 58 Statement of Compliance with Public Sector Standards 59 Method of assessment 59 Summary of extent of compliance 59 Public Interest Disclosures 61
6 REGIONAL DEVELOPMENT POLICY IMPLEMENTATION 62
7 REPORTING ON BETTER PLANNING – BETTER SERVICES 65
8 PERFORMANCE INDICATORS 68
8.1 Certification of Performance Indicators 68 Opinion of the Auditor General 69 8.2.1 Key Performance Indicators 70 8.2.2 Key Effectiveness Indicator 70 8.2.3 Key Efficiency Indicator 72
9 FINANCIAL STATEMENTS 73
9.1 Certification of Financial Statements 73 Opinion of the Auditor General 74 9.2 Statement of Financial Performance 75 9.3 Statement of Financial Position 76 9.4 Statement of Cash Flows 77 9.5 Notes to the Financial Statements 79
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1 CHAIRMAN'S FOREWORD
This year revealed that “the secret” is out about the Great Southern and its regional centre, Albany. It is apparent that sea changers have discovered the South Coast, as reflected in housing construction figures and the rise in Albany and Denmark housing prices. It is interesting to note that major property magazines are now highlighting Albany as one of the last remaining cities where people can still buy affordable coastal housing.
We are now witnessing the consolidation of a new regional economic driver, the plantation blue gum industry. Last year some 350,000 tonnes were harvested with 1 million tonnes expected in 2005/06. This is encouraging other value adding industries to emerge, such as industries proposed at the Mirambeena Timber Processing Precinct, which include the Lignor’s Engineered Strand Lumber plant and the Beacon’s Biomass Energy plant. Assuming both projects come to fruition, they will contribute an additional $63 million to Gross State Product.
The GSDC has won praise from these companies for the leadership role it has taken in regard to securing the necessary planning and environmental approvals for their projects. In brief, the Commission has facilitated and chaired a regular meeting with the proponents and senior representatives of all relevant State agencies and local government in order to ensure that a co-ordinated and consistently supportive response is provided by government.
As more major development projects are proposed, this work is emerging as a key role for the Commission and is highly valued by project proponents. As a further example, the same approach has been initiated by the Commission this year in regard to supporting the development of a proposed iron ore mine 90 kilometres east of Albany by Grange Resources. In terms of providing income and further diversifying the regional economy, this is potentially a highly significant project. The current feasibility phase alone will see the company expend $14m and employ about 40 people on the South Coast.
Despite an “average” year for the farming sector, the region’s economic backbone, the region remained buoyant with skilled labour shortages emerging. These shortages were evident through the Great Southern Development Commission’s (GSDC) role as a Certifying body for the Commonwealth Department of Immigration’s Skilled Visa Program. GSDC processed some seventy-five applications on behalf of the region’s businesses, ranging from the world’s leading geneticists for blue gums to panel beaters in Albany.
The State Government through GSDC made significant infrastructure commitments to the region this year which will help secure its future. The leading project, the Albany Waterfront Development, received virtually unanimous support of the community.
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The formal sign off by Albany City Council in May reflected the patience of GSDC’s approach. Working in partnership with Department for Planning and Infrastructure, and the City of Albany, we successfully undertook a major consulting process with the community to engage them in the project.
This has enabled the State Government through Minister MacTiernan and the Member for Albany, Peter Watson MLA, to move the project from a water based boat harbour to include a major land based infrastructure development involving LandCorp. Consequently, additional funds of $15m have been committed to the project, making the total value $27.8m
As well as economic infrastructure, GSDC was active in monitoring and supporting the enhancement of the social infrastructure in the region. We were able to secure State funding for a day therapy centre for the elderly with the aim of keeping our older generation active in the community, an entertainment centre to be located on the foreshore and a revamped aquatic centre.
Away from the coast, GSDC was very active with regional community activities, such as continuing to support the proposed $1 million Yongergnow Malleefowl Interpretative Centre at Ongerup, the proposed redevelopment of the Katanning saleyards, timber roads through The Timber Industry Roads Evaluation Strategy (TIRES) to which the Government has contributed $3.86 million to date, and the invariable innovative and creative projects that come from our small regional communities. These include the upgrading of the Jones’ Building in Broomehill, housing facilities in Ongerup, support for the proposed Jerramungup pelletising plant, the Mungart Boodja art centre in Katanning and the Heritage Museum in Gnowangerup.
A major constraint to regional development is the lack of adequate power infrastructure. GSDC has been working with the inland Shires of Gnowangerup, Jerramungup and Ravensthorpe to secure better energy supplies coinciding with the proposed magnetite mine at Wellstead. GSDC also continues to vigorously promote within Government the importance of an extension to the natural gas pipeline from Bunbury to Albany.
In addition to these major projects, GSDC staff worked diligently on projects where the results are often understated. For example, securing a Youth Officer for the region, securing the lease for the Denmark Centre of Sustainable Living and a $100,000 grant through the Regional Infrastructure Fund, locking Telstra into delivering broadband to smaller regional communities and outlying suburbs of Albany, and assisting the region’s wood turners to secure markets in Japan. All up, the GSDC was involved in some 50 projects, often, through this project assistance, leveraging large amounts of money into the region.
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We appreciate the partnership and support of all our stakeholders, in particular Local Government and the Commonwealth through an active Area Consultative Committee.
In last year’s Annual Report I noted a rise in our client satisfaction rating as assessed independently by client survey. I am pleased to note that this year the Commission recorded its highest ever client satisfaction rating.
On behalf my fellow Board members, I again commend CEO Bruce Manning and his team at the Commission for their efforts.
I invite you all to take a thorough read of the Annual Report, in particular the project sections and to provide feedback and input to GSDC staff.
RUSSELL HARRISON CHAIRMAN
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2 THE GREAT SOUTHERN REGION
The Great Southern region comprises twelve local governments extending over 39,007 square kilometres, encompassing the City of Albany and the Shires of Broomehill, Cranbrook, Denmark, Gnowangerup, Katanning, Kent, Kojonup, Jerramungup, Plantagenet, Tambellup and Woodanilling.
The maps below show the local government boundaries in the Great Southern region and the location of the region within Western Australia.
The region has a population of 53,656, with over half living in the City of Albany. The coastal areas of Denmark and Albany have experienced population growth over recent years; however, growth for the region as a whole has leveled off. Albany is the main administrative and commercial centre for the southern portion of the region, while Katanning, 180 kilometres to the north, services the northern shires. Smaller towns provide businesses and services for local requirements.
The region’s economy is largely based on the agricultural production of wool, grain and livestock and totals about $726.6 million. However, primary production enterprises such as vineyards, horticultural crops and timber plantations have been established, and concerted efforts are being made to add value and diversity to this primary industry base.
Fisheries off the region's coastline produce a significant proportion and range of the State's table fish. Aquaculture is an emerging industry with freshwater species such as abalone, yabbies, marron and trout produced and harvested inland, and mussels and oysters produced commercially in Albany.
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Tourism is an important industry for the region, with excellent prospects for growth. Overnight visitor spending is estimated at more than $200 million annually.
The manufacturing sector in the Great Southern is primarily based in Albany. Some of the major operations include vegetable processing, joinery works, marine engineering, fertiliser works and sandalwood oil and cosmetics manufacturing at Mirambeena Industrial Park. Large export abattoirs are located in Katanning and Narrikup, near Albany. There are also many small businesses throughout the region manufacturing and fabricating a range of goods, mainly for local agricultural and domestic use.
The region is gaining a reputation as a producer of premium quality red and white wine on both the domestic and export markets.
A woodchip mill operates north of Albany in the Mirambeena Timber Processing Precinct processing resource from the region’s vast blue gum timber plantations. Other timber companies have commenced infield woodchipping operations.
The Port of Albany is the point of export for most of the region’s bulk grain and agricultural commodities, including woodchips.
The Great Southern has a comprehensive transport system including an extensive sealed road network, road and rail freight services, a regional airport and a seaport. The Albany Airport has a runway capable of handling 737-size aircraft and operates an Instrument Landing System (ILS).
The region welcomes new residents, industries and businesses and has a range of support services to encourage, assist and promote all facets of development.
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3 GSDC CORPORATE PROFILE
3.1 General Information
Establishment
The Great Southern Development Commission was established by the Regional Development Commissions Act 1993.
Ministerial Responsibility
The Commission is formally responsible to the Hon John Bowler JP MLA, whose ministerial portfolio interests include the Great Southern region.
Purpose
To assist the Great Southern region in achieving its economic development potential.
Role
The role of the Commission is to coordinate and promote the economic development of the Great Southern region of Western Australia.
Objects and Functions (Based on the Regional Development Commissions Act 1993 and amendments)
The objects and functions of the Commission are to:
* Maximise job creation and improve career opportunities in the region, * Develop and broaden the economic base of the region, * Identify infrastructure services to promote economic and social development within the region, * Provide information and advice to promote business development within the region, * Seek to ensure that the general standard of government services and access to those services in the region is comparable to that which applies in the metropolitan area, * Generally take steps to encourage, promote, facilitate and monitor the economic development in the region.
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3.2 Corporate Structure
CABINET
MINISTER
Great Southern Development Commission
GSDC
Chairman Deputy Chairman
7 Members CEO – ex officio
Operational Branch
Chief Executive Officer and 15 Officers
Consultants as Assistance of other required Government agencies
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3.3 Board
The GSDC Board of Management is the governing body of the Commission and is responsible for exercising and pursuing its functions. It is comprised of a Chairman, Deputy Chairman, seven members and the CEO [ex-officio], a total of 10 members. With the exception of the CEO, Board members may be nominated by the Minister, by local authorities, and by community nomination as prescribed under the Regulations of the Regional Development Commissions Act 1993.
The Board holds regular meetings to consider matters relating to the development of the region. It also sets major policy directions for the Commission, formulates budget priorities, approves major expenditure and advises the Minister on regional affairs.
Board Membership
As at 30 June 2005, Board members by nomination categories were:
Ministerially Nominated:
Russell Harrison (Chairman) Mr Harrison is a partner at Lincoln’s Accountants, one of the largest accounting firms in regional WA. With a strong background in community service, Russell is currently serving on the Board of the Albany Port Authority and acts as financial advisor to the Albany Community Hospice. He lives in Albany with his family. Mr Harrison’s Board term expiry date is 30 November 2005.
Denis Sawers (Deputy Chair) Mr Sawers is the General Manager of the Albany Plantation Export Company (APEC). Denis has presided over APEC’s value adding initiative, the production and export of wood chips from Albany Port. Denis is a member of both the Albany Port Users Liaison Group and the Timber Industry Roads Evaluation Strategy (TIRES). Mr Sawers’ Board term expiry date is 30 September 2006.
Beverley Gilbert Ms Gilbert manages the family vineyard, Gilberts, in Kendenup. She was a co- founder of the Great Southern Region Marketing Association, and remains a strong advocate of the Great Southern Naturally brand label, which distinguishes Great Southern produce. Ms Gilbert’s Board term expiry date is 30 November 2005.
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Community Nominated:
Craig McVee Mr McVee is a leading representative of Kojonup’s Noongar community, Chairman of both the Kojonup Aboriginal Corporation and The Kodja Place, an interpretive centre in Kojonup noted for cultural exchange and reconciliation between Indigenous and non-Indigenous Australians. Mr McVee’s Board term expiry date is 30 November 2005.
Colleen Donnelly Mrs Donnelly is a Councillor and former Shire President of the Denmark Shire,. She is a strong advocate for tourism initiatives in the region, chairing the Great Southern Region Marketing Association. Colleen is also chairman of the Great Southern Regional Recreation Group and member of the of the Lower Great Southern Regional Strategy steering committee. Ms Donnelly’s Board term expiry date is 30 November 2006.
Robert Lucas Mr Lucas manages the historic Camp Quaranup, and is the proprietor of a local mussel and abalone farm. He is a current member of several industry and community groups, including the Great Southern Aquaculture Association (President). Mr Lucas’ Board term expiry date is 30 November 2007.
Nominated by Local Government:
Michael Watkins Mr Watkins is an operational manager for the Frankland River Olive Company and a Councillor for the Shire of Cranbrook. Mr Watkins’ Board term expiry date is 30 November 2007.
Glenyse Garnett Ms Garnett is Shire President of the Shire of Jerramungup and a Justice of the Peace. Ms Garnett’s Board term expiry date is 30 November 2007.
Ray Baxter Mr Baxter is a farmer at Woodanilling and a Shire Councillor with 14 years experience in local government. He was the former Chairman of the Great Southern Regional Road Group and has a long record of active involvement in transport issues in the region. Mr Baxter’s Board term expiry date is 30 November 2005.
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By Virtue of Office:
Bruce W Manning Mr Manning is the Chief Executive Officer of the GSDC.
During the year, Mrs Carolyn Daniel completed her term as Deputy Chair of the Board of the Great Southern Development Commission.
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3.4 GSDC Operational Staff Complement
As at 30 June 2005, the staff members were:
Bruce Manning, Chief Executive Officer
Maynard Rye, Deputy Chief Executive Officer
Duane Schouten, Senior Development Officer
Russell Pritchard, Regional Officer (at Katanning Office)
Graham Townley, Manager, Aboriginal Economic Development
Jon Bettink, Albany Waterfront Manager
Mark Pitts-Hill, Senior Development Officer
Stevie Cole, Development Officer
Pene Fewson, Development Officer
Kate Sounness, Tradestart Export Advisor
Athol Farmer, Noongar Arts Marketing Officer (at Katanning Office)
Bert Pardini, Manager, Corporate Services
Alison Carpenter, Executive Assistant
Rowena Carnaby, Finance Officer
Debbie Johnston, Administrative Support Officer
Toni Wheatcroft, Administrative Support Officer
Rhonda Horsting, Casual Administrative Support Officer, Albany Waterfront
During the year, resignations were accepted from the following staff:
Justin Laing, TradeStart Officer Jan Axe, Development Officer Averil Besier, Executive Assistant
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4 GSDC STRATEGIC PLAN
During the year the GSDC continued to implement its Strategic Plan, Strategic Directions 2001 – 2005, which was developed through a broad ranging community consultation process.
Strategic Directions 2001 – 2005 captures the aspirations of the regional communities of the Great Southern to achieve optimum and sustainable economic growth and social well-being.
Strategic Directions 2001 – 2005 reflects key elements of regional development, which the Government seeks to secure for regional and rural areas in Western Australia.
Strategic Directions 2001 – 2005 is a concise statement that reflects the Government’s intentions to improve the quality of life for regional Western Australians as presented in “Better Planning: Better Services” and reported on in Section 7.
This Strategic Plan, which took effect from 1 July 2001, has been communicated to the Commission’s stakeholders and is being progressively implemented by the Commission through its project work programs. The activities of the Commission are presented under Goals, as outlined in the Strategic Plan on the following pages.
Vision
The sustainable development of our region’s natural and built environment for the long-term well-being of all.
Role
To build partnerships for regional prosperity by planning, coordinating and promoting sustainable development.
Guiding Principles
• Maintain an independent, non-parochial and cross-regional approach, • Work with regional communities to increase their capacity to realise their own vision for a vibrant and sustainable future, • Maintain an industry sector focus, and develop strategic alliances to achieve sustainable market outcomes, • Develop partnerships to integrate best practice Natural Resource Management principles, • Maintain high levels of professional services and integrity.
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Key Goals of the Commission
4.1 Goal 1 - Regional Leadership
Under this Goal, the GSDC seeks to:
Support initiatives that build the capacity of regional and rural communities to respond to needs and opportunities for sustainable development.
Under this Goal, GSDC undertakes to:
• Provide an effective link to Government on the key issues and policies that impact on the region,
• Monitor levels of social infrastructure in the region,
• Work with rural communities to increase their capacity and attract resources to realise their own vision for the future,
• Link people and organisations with opportunities for diversification and value-adding,
• Promote opportunities and services that encourage people, particularly young people, to remain in rural communities.
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4.2 Goal 2 - Industry Development
Under this Goal, the GSDC seeks to:
Support and facilitate new and existing enterprise and industry development by broadening and strengthening the region’s economic base.
Under this Goal, the GSDC undertakes to:
• Develop and maintain an understanding of the key factors that shape our regional economy,
• Facilitate trade and export opportunities,
• Encourage capital and knowledge-intensive industries,
• Expand the range of Indigenous economic and employment opportunities,
• Develop industry partnerships to achieve market outcomes and minimise impediments to growth,
• Monitor and promote the region’s areas of competitive advantage to all industry sectors,
• Encourage the tourism industry in the further development of product.
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4.3 Goal 3 - Improve Infrastructure
Under this Goal, the GSDC seeks to:
Apply a coordinated approach to infrastructure development that facilitates business, industry and community development and improves service provision to the region.
Under this Goal, the GSDC undertakes to:
• Work with community and industry sectors to identify and prioritise infrastructure requirements and attract public or private investment,
• Support key infrastructure development to enhance business and industry investment and educational and training opportunities,
• Facilitate the development and enhancement of regional services through partnerships with the public and private sector.
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4.4 Goal 4 - Natural Resource Management
Under this Goal, the GSDC seeks to:
Promote and support best practice Natural Resource Management in the region.
Under this Goal, the GSDC undertakes to:
• Participate in a collaborative planning approach to resources which links agencies, industry and communities to local, regional, national and international resources,
• Facilitate the provision of current information and access to regional data,
• Support the research and development of a diverse range of ecologically sustainable rural products and industries,
• Promote and facilitate research, education and training initiatives linked to Natural Resource Management,
• Encourage best practice Natural Resource Management in project development.
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4.5 Goal 5 - Efficient Agency Performance
Under this Goal, the GSDC seeks to:
Manage its resources to achieve its core business of economic development with optimum efficiency.
Under this Goal, the GSDC undertakes to:
• Support the core business activities of the Commission with highly skilled staff and modern and efficient internal systems,
• Develop, manage and encourage its staff to realise their full potential,
• Effectively and efficiently manage its financial and physical resources,
• Develop and maintain modern and flexible information and reporting systems,
• Continuously seek best practice, creative and innovative solutions for internal practices and processes,
• Develop and maintain a risk management culture which will protect the Commission and its resources.
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5 REPORT ON OPERATIONS FOR THE 2004/2005 YEAR
5.1 Output: Regional Development
In pursuing its activities for the year, the Great Southern Development Commission consolidated the implementation of its Strategic Plan.
The GSDC reports its operations under one Output of Regional Development. Within this Output the GSDC has identified four external Goals and one internal Goal, as detailed within its Strategic Plan.
To give the reader an appreciation of the environment in which the GSDC has operated in over the year and to report on the economic health of the region, the following information about the region has been included.
Gross Regional Product
The Gross Regional Product (GRP) measures the economic wealth of the region. It represents the value of production within the region at market prices.
The chart below shows the annual percentage change for real GRP (adjusted for inflation) over the past ten years. Real GRP increased by 15.5% over the 2003/04 year.
Real Gross Regional Product Percentage Change 20.0% 15.5% 16.0% 12.1% 12.0% 6.1% 7.2% 5.6% 8.0% 4.1% 4.0% 0.0% Percentage -4.0% -1.5% -3.8% -3.9% -8.0% -5.1% 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
Source: Department of Local Government and Regional Development using ABS data
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Unemployment
The unemployment rate in June 2004 was 7.3%, up from last year’s figure of 6.9%. The graph below shows the unemployment rate from 1994.
Great Southern Unemployment Rate 9.0%
8.0%
7.0%
6.0% Percentage 5.0%
4.0%
3.0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Department of Employment and Workplace Relations
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Construction and Building
The graph below shows the value of construction approvals for the Great Southern as a whole and the municipality of Albany. Construction approvals for the region in 2003/04 were valued at $113.7 million, up 48.8% from the previous year. Construction activity in Albany made up 72.6% of the value of approvals in 2003/04.
Great Southern Value of Construction Approvals
$140.0 $120.0 $100.0 $80.0 $60.0
Million Dollars $40.0 $20.0 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Great Southern Albany Source: Australian Bureau of Statistics
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Population
The estimated resident population of the Great Southern as of June 2004 was 53,656, a decrease of 0.2% from 2003. The graph below shows that the region as a whole experienced steady overall growth until 2001, which has since leveled off.
Great Southern Population
55,000 54,000 53,716 53,762 53,000 53,598 53,656 52,981 52,000 52,400 50,912 51,000 51,691 50,000 49,263 50,114 49,000 49,448 48,000 47,000 46,000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Department of Local Government and Regional Development using Australian Bureau of Statistics data
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Performance of the Commission
The GSDC’s project work is undertaken in the context of its Strategic Plan addressing four Goals:
1 Regional Leadership, 2 Industry Development, 3 Improve Infrastructure, 4 Natural Resource Management.
In these four Goals, or key result areas, the GSDC works extensively with all levels of government, businesses, industry sectors and community groups to provide regional development project management, information and facilitation services. Essentially, the GSDC provides officer time and other resources to complete regional development projects.
The Great Southern Development Commission applied 10.65 FTE’s, or full-time staff equivalents, to achieve regional economic development work within the above Goals. A further 5.27 FTE’s provided administrative support.
The GSDC produced the following hours against its four Goals:
2005 2004 2003 2002 2001
Regional Leadership 4,767 5,261 5,822 3,889 2,486 Industry Development 11,010 10,247 10,949 10,574 7,888 Improve Infrastructure 4,858 4,059 2,090 2,822 3,978 Natural Resource Management 934 1,238 979 1,150 375 Sub Totals 21,368 20,805 19,840 18,435 14,727
Plus Board member hours 343 328 380 328 428 Consultant hours purchased 1,163 1,318 2,582 3,388 5,779 Total chargeable hours 22,874 22,451 22,802 22,151 20,934
Total cost as per Statement of $2,473,479 $2,151,801 $2,602,398 $2,150,157 $2,353,380 Financial Performance Less paid for grants and subsidies $456,796 $462,190 $790,856 $493,859 $776,718
Adjusted total cost of services $2,016,683 $1,689,611 $1,811,542 $1,656,298 $1,576,662
Divided by chargeable hours of: 22,874 22,451 22,802 22,151 20,934
Chargeable hourly rate $88.16 $75.26 $79.45 $74.77 $75.32
For 2004/2005 a further 7,577 hours were recorded by the GSDC corporate services officers supporting the main core business of the Commission.
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The operations of the Great Southern Development Commission during 2004/2005 are reported below against its four key result area, or Goals.
5.1.1 Goal 1 - Regional Leadership
Supporting initiatives that aim to build the capacity of regional and rural communities to respond to needs and opportunities for sustainable development.
Under the Regional Development Commission’s Act 1993, the GSDC’s key focus is economic development. However, we also undertake a monitoring role in the delivery of government services to the region, and provide advice to the State Government on servicing regional needs. This has led, for example, to attracting funding through GSDC for a Day Centre for the Elderly. The Commission works in partnership with all three levels of government, industry groups and community-based organisations, including the Great Southern Area Consultative Committee, Timber 2020, the Business Enterprise Centres, Australia’s South West Regional Tourism Association and Natural Resource Management agencies.
The GSDC has also played a key role in promoting the region through the WA on Show and the Great Southern Region Marketing Association.
Regional Development Scheme
The Great Southern Regional Development Scheme is one of five funding schemes implemented through the State Government’s WA Regional Investment Fund (RIF). The aim of RIF is ‘to assist with the economic and social development of regional Western Australia or improve the access by regional communities to services.’
An additional $80 million over four years has been allocated to RIF through the May 2004 State Budget process with funding becoming available in 2005 / 2006.
The specific aim of the Regional Development Scheme component of RIF is to provide financial assistance to a mix of capital works and other projects which may include feasibility studies, regional and local marketing programs, as well as festivals and events.
To date, the GSDC has administered grants under RDS to the value of $400,000 each year over four years.
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In August 2004, the GSDC received 53 expressions of interest from proponents of regional projects seeking $1.23 million in funding. Twenty nine were successfully funded.
The projects approved for funding reflect the GSDC strategic goals of regional leadership, industry development, infrastructure improvement and natural resource management. They include:
1. Projects in rural communities which focus on diversification of the economic base and value adding, 2. Activities which attract investment and generate the development of export product, 3. Projects leading to the development of tourism and tourism-related product, 4. Support for Indigenous groups in enterprise development, 5. Projects which focus on increased marketing of the region and its products.
The round 4 funding allocations included:
• $53,000 to the Shire of Denmark towards construction of the Denmark Visitor Centre, • $30,000 to the Shire of Gnowangerup to assess options to improve electrical power to the shires of Gnowangerup, Jerramungup and Ravensthorpe, • $27,000 to the UWA Perth International Arts Festival for the February 2005 three week festival program, • $20,000 to Denmark Farmhouse Cheese towards equipping a new cheese factory, • $18,000 to the Great Southern Regional Marketing Association (Inc) to continue to improve the profile of the region’s food, wine, lifestyle and tourism products, • $17,500 to the Great Southern Milk Company towards the cost of launching a range of boutique value added milk products, • $17,000 to the Albany Maritime Foundation to construct an Artisan’s Gallery in the Albany Boatshed, • $15,000 to the Stud Merino Breeders of WA Inc to assist in the planning and presenting of the Great Southern segment of the tour to showcase the region’s merino sheep and wood industry, regional foods, wines and tourism attractions, • $15,000 to the Nathan Drew Memorial Trust for the further development and installation of remotely monitored rescue float cages, • $15,000 to the Albany based UWA Institute for Regional Development to examine future development options for agriculture and other industries in the Albany Hinterland, focusing on land and water resources, • $15,000 to Regional Training Services to extend a transition program for youth to link 15-19 year olds with employment opportunities, training, social support and work experience.
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Great Southern Region Marketing Network
The Great Southern Marketing Network was established in 2001. It coordinates major marketing efforts of key regional marketing associations in the areas of tourism, wine, horticulture, specialty foods and agribusiness. The Network was the initiative of GSDC and followed extensive consultation with the industry.
Approximately $100,000 per annum has been made available to the network over the last three years to coordinate key events giving the region access to avenues of promotion that would not otherwise have been possible for individual companies or individual organisations. The added benefit of a cross sector approach is the wide range of marketing expertise on the Network panel. This ensures high quality marketing programmes and outcomes for the region. A collective cross sector approach also helps increase exposure for the region’s food, wine and tourism product in a highly competitive world environment.
It is pleasing to note the significant industry contribution to the Network in real cash term. This demonstrates how cooperation between government and the private sector can produce tangible outcomes and the role government can play to support projects through the developmental stage.
Key events under the Network’s program include Perth Wine Tasting Event, Great Southern Wine Festival, WA on Show, support of wine regional promotion programme, Regional Culinary and Food Festival and the Regional Food and Wine Map.
South Coast Regional Initiative Planning Team (SCRIPT)
SCRIPT provides a strategic regional approach to Natural Resource Management (NRM). It aims to bring together interested persons, existing NRM organisations and agencies to facilitate community-driven projects and balance environmental, social (including cultural issues) and economic outcomes. GSDC continues to be an active supporter of SCRIPT since its inception in 1995.
The organisation has applied to receive funding totaling $74 million from National Action Plan and National Heritage Trust funding sources from 2005/06 to 2007/2008 and if successful, will be able to implement the accredited Investment Plan that contains eleven programs.
These programs will be geographically focused and encompass natural resource values, planning for future land uses, securing investment opportunities, fostering sustainable natural systems and implementing sustainable industries.
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Tourism Development in Northern Great Southern
The Hidden Treasures Group has been innovative in the last year, having identified five drive trails to promote tourism within the Great Southern. So far, GSDC has spent $10,000 acquiring and facilitating information exchange between the Shires of Jerramungup, Gnowangerup, Broomehill, Katanning, Woodanilling, Tambellup, Cranbrook and Kent. A brochure has been produced and will be marketed widely in 2005/06.
Western Australian Community Foundation (WACF)
WACF CEO (Kathryn Sydney-Smith) and Community Development Coordinator (Trevor Chapman) introduced the concept of communities creating futures. Based on the notion of giving, the Foundation primarily acts as an independent catalyst to grow and distribute endowed funds. These two regional presentations sponsored by the GSDC, City of Albany and Shire of Katanning were hosted on the 14th and 15th June in Albany and Katanning respectively.
Learning Region
In recognisng the valuable contribution that learning makes to a sustainable economy, the Great Southern Area Consultative Committee, with support from the GSDC and other agencies, led a number of workshops and round table forums to determine the concept of developing a Learning Region. A Learning Region is defined as one that develops a culture in which people learn, research and share knowledge to sustain the economic health, quality of life and environment in the region.
An audit was undertaken through 55 taped interviews of representatives from organisations in the education and training, community (social/cultural), environmental and economic and Local Government sectors in the region. This resulted in a compilation of learning assets, existing networks and possible partnerships that will assist in developing a framework to further develop the concept.
There was broad recognition of the role that the UWA Albany campus has to play in a Learning Region and a desire to see this role expanded.
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Centre for Regional Innovation and Enterprise (CRIE)
CRIE is an Incorporated Association which aims to draw together regional business, academic researchers and government agencies in a common cause of industry development through the enhancement of managerial excellence and industry innovation.
GSDC has sponsored the CRIE and some of its projects. This year the Centre launched a web site and its latest project started late in 2005. This is a four month part-time program for 20 regional businesses that will receive 20 hours of mentoring, comprehensive business diagnostics and online assignment tasks that guide them through a strategic review and implementation/change strategies. The program was developed by the Centre for Entrepreneurial Management and Innovation (CEMI) at the University of Western Australia with funding from Ausindustry.
Great Southern Youth Committee
The Great Southern Youth Committee (GSYC) is a unique regional forum that brings together government agencies, service providers and community leaders to identify and address key issues impacting on young people in the Great Southern.
Over the past year the Committee developed a strategic plan in consultation with key stakeholders, to guide its activities over the next 5 years. Sub-committees were formed to work on key goal areas which include, 1) research, networking and governance, 2) public events, seminars, education and promotion, and 3) media and advocacy. Outcomes include production of a regional youth services directory, establishment of a website and delivery of a series of events as part of National Youth Week celebrations.
GSDC’s contribution of $7,000 over the 2003-04 financial year, combined with a $2,500 contribution from Office for Children and Youth enabled the group to appoint a part-time Project Officer to coordinate the Youth Committee’s key activities.
Southern Regions Community Leadership Forum
During 2004 the Southern Region Community Leaders Forum Working Group was formed. The group comprised representatives from the Great Southern, Peel and South West Development Commissions, the Department of Local Government and Regional Development, Department of Education and Training, Edith Cowan University and the Institute of Regional Development - UWA.
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Through this collaboration a strategy was developed aimed at promoting community leadership by example, maintaining the momentum from previous leadership programs offered in the regions, and creating training and development opportunities for current and emerging community leaders. The initial phase of the strategy was delivered through the inaugural annual Southern Regions Community Leadership Forum, held in Bunbury on June 30 and July 1 2005. The Forum brought together around 150 existing and emerging community leaders from across the Great Southern, Peel and South West regions who explored community leadership topics, participated in personal development and training opportunities, and enjoyed regional networking opportunities. The Forum provided an opportunity to build the sustainable capacity of community organisations such as progress associations, visitor centres, chambers of commerce, telecentres, events committees, youth groups, as well as economic and community development officers employed by local and state governments. An awards night was one of the highlights of the Forum which recognised the valuable contribution leaders in the Southern Regions make to our communities, Two of the Great Southern’s Noongar community leaders received awards in recognition of their inspirational work with their respective communities. The 2005 Forum was made possible through funding and support provided by a range of Government, private and community partners. The GSDC contributed $4,500.
Regional Achievers Awards
Two nominations for the 2005 Department of Local Government and Regional Development and Regional Achievers Awards were put forward by the GSDC were successful. The nominees were Pleun and Hennie Hitzert (The Lily) and Diana Holly (Broomehill Barramundi).
These two nominations represented community members that were catalytic in improving tourism in regional Western Australia.
Runaway Beach Bus
In 2005, for the fourth consecutive year, the GSDC organised and managed a Holiday Bus running two trips per week. The bus ran a day return trip from Katanning to Albany including stops at every town along the Great Southern Highway and stops on the Albany Highway from Cranbrook south. As in the previous years, Yvonne Fleay coordinated the initiative and through an open
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expression of interest process, Nicholls Bus and Coach Service (Narrogin) was selected to deliver the service.
The GSDC’s contribution of $5,000 was complemented by cash and in kind by the Shire of Katanning, Family and Children’s Services, Katanning Police Aboriginal Police Liaison Officer, the Department of Community Development and parents. Reports from the Coordinator and the Police Liaison Officer indicated that the project was well received by approximately 160 participating young people.
Migration Assistance
The GSDC has spent considerable time in conjunction with the Department for Immigration and Multicultural and Indigenous Affairs in assisting people who want to become either a temporary or permanent resident in Australia. Where the local labour market is unable to find employees, GSDC has assisted skilled migrants under the Skilled Independent Regional Visa to gain sponsorship and regional work placements.
The 2005/06 Migration (Non-Humanitarian) Planning levels are estimated to increase the skilled migrant workforce up to a total of 140,000 people. The Skill Stream Migration Program will be increased, providing up to 20,000 additional places to meet Australia’s labour force needs.
The primary aim of this program is to increase the number of skilled migrants entering under the employer-sponsored categories.
To help address migration-related skills and labour issues, the Government will fund the out-posting of ten Department for Immigration and Multicultural and Indigenous Affairs (DIMIA) staff to work closely with the GSDC and industry bodies.
Other changes to make Australia’s skilled migration arrangements more competitive include the addition of more trades and engineering related occupations to the Migration Occupations in Demand List (MODL). This will be reviewed every six months to reflect emerging labour shortages.
Regional Development Officer Russell Pritchard went to York in the United Kingdom in 2005 to promote the region at a major migration expo and increase the Great Southern region’s competitiveness in attracting skilled workers.
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5.1.2 Goal 2 - Industry Development
Support and facilitate new and existing enterprise and industry development by broadening and strengthening the region’s economic base.
The GSDC is working to create a stronger and more diverse economic base, capable of adapting to global market forces. To this end, we are actively involved in attracting investment and new industries into the region, strengthening existing companies and working with small business and farmers to create new opportunities.
Aboriginal Economic Development
The GSDC’s Aboriginal Economic Development Unit facilitated a range of regional economic and enterprise development opportunities for Aboriginal clients and communities in the Great Southern in 2004/2005. The Commission received $80,000 p.a. in direct grant assistance to employ an Aboriginal Economic Development Officer over the term of a three year project support agreement with the Department of Industry and Resources.
In the past year, priority Aboriginal economic development projects included:
- completion of a feasibility study for the Stirling Range Discovery Centre, - referral of small business clients to the State’s Office of Aboriginal Economic Development and other planning agencies for further advice, - planning for the restoration of the Gnowangerup Aboriginal Corporation’s Old Noongar Centre as a Heritage Museum, - opening of the Mungart Boodja Art Centre in Katanning to support the region’s Noongar arts development program, - facilitating land acquisitions through the Indigenous Land Corporation in partnership with clients, - support for Aboriginal participation in the WA Community Leadership program, - facilitating Aboriginal cultural heritage research for the Stirling Range National Park in partnership with the University of Western Australia, Department of Indigenous Affairs and the Department of Conservation and Land Management.
Noongar Arts Development
The GSDC appointed a Noongar Arts Development Officer in February 2004 to facilitate industry marketing and product development initiatives in the Great Southern. $72,578 in funding was secured through the WA Regional Investment
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Scheme for the position, with an additional $69,422 secured for the programme from the GSDC and State’s Office of Aboriginal Economic Development.
GSDC established the Mungart Boodja Art Centre in Katanning as an office and product development facility which was opened in September 2004 by Minister Chance. A part-time Aboriginal administrative assistant was also employed to support the program in 2004/2005.
The GSDC’s Noongar art program assisted artists and communities to: (1) establish arts development funds in the region, (2) coordinate exhibitions and events, (3) promote marketing and public art opportunities through the public sector, and (4) assist with advice in developing art and cultural tourism infrastructure projects in the Great Southern.
Highlights in 2004/2005 included: facilitating several regional arts business and skill development workshops with Artsource, Creative Economies and other agencies, (2) assisting with overseas exhibition in Italy at the Tuscan International Handicrafts Fair and, (3) visiting Colgate University in the United States in partnership with the University of WA’s Berndy Museum and the Perth International Arts Festival to promote Noongar heritage and the arts. The visit to Colgate was instrumental in helping PIAF secure an agreement to exhibit Carrolup heritage artworks from Colgate University in New York for exhibition at Perth metropolitan and regional PIAF events for the 2006 program.
As a result of the program, eight artists have consistently entered the market place through sales at exhibitions and events.
Breaksea Island Heritage Restoration and Tourism Development project
The Breaksea Island heritage restoration and tourism development project is a multi-staged strategic project which aims to fully restore the Breaksea Island lighthouse and heritage precinct and see it developed in the longer term as a niche eco-tourism, conservation and community education facility.
The project is a component of GSDC’s maritime heritage tourism development strategy and is a response to the findings of the Vancouver Waterways study (2000), commissioned by GSDC in partnership with the City of Albany, the Albany Port Authority and the Department of Transport.
The Breaksea Island Lighthouse complex has considerable heritage value, is an important example of Albany’s extensive maritime history, and contributes to the ongoing significance of Albany and its environs as a prominent historic region. The buildings appear on both the State and National Registers of Heritage Places and are considered ‘rare’ as a complex of structures.
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Work commenced on Stage one of the project during the 2004-05 financial year, through the collaboration of a steering committee consisting of trade professionals, community volunteers and government agencies. The aim of the initial stage is to carry out emergency works to arrest the rapid deterioration of the buildings. The Heritage Council WA recognises the importance of the initiative and has issued an emergency works permit in the absence of a heritage plan.
The proposed development stages include: • Stage 1 (current project) - emergency restoration works. Replacement of roofs and verandahs (to heritage standard) of two of the three buildings which form the Breaksea Island lighthouse complex, and stabilisation of a third cottage, • Stage 2 – research and production of a combined heritage conservation plan, management plan and cultural tourism development plan, • Stage 3 – full restoration of the original access track, the jetty landing and loading apparatus to heritage standard where possible, • Stage 4 - full restoration and fit-out of all three heritage buildings as a facility for niche eco-tourism, and community education (e.g. research groups).
The project budget for Stage one is around $120,000 plus in-kind. Resources for this multi-partnership project have been secured through State Government grants, private businesses and community individuals. Key partners include the GSDC contribution of $75,000 and the Department of Conservation and Land Management with a $25,000 contribution.
Preparatory work commenced at the site in early 2005. Stage one building works will commence later in the year and will draw to completion in early 2006.
Work is also underway to secure resources for Stage two.
Tourism Industry and Promotion
Sustainable tourism development continues to be a priority area for the GSDC as it has the potential to deliver a broad range of economic, social and cultural benefits to the region. Strong partnerships with Australia’s South West Inc (ASW) and Tourism WA, as well as key industry stakeholders, are imperative to realising this potential.
• GSDC continues to work in partnership with ASW to refine a promotional strategy for the Great Southern MICE (meetings, incentives, conferences and exhibitions) industry. Activities for 2004-05 include production of a MICE planner which will provide a prospectus of industry and visitor information to potential industry partners and customers. The City of Albany has also committed resources to the strategy as a component of their business
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development planning process for the proposed Albany Convention and Entertainment Centre. • GSDC and ASW are working cooperatively on the design of a product development and marketing project which proposes the development of a series of Great Southern food and wine trails. Funding is being sought from State and Commonwealth grant programs. • The GSDC continues to work closely with Tourism WA which is facilitated through the collocation of the Great Southern Regional Manager at the GSDC office in Albany. The arrangement is strategically advantageous for both organisations in that it promotes a collaborative Government approach to tourism development and promotion in the region. • The GSDC has committed funding to the upgrade of roadside signage located at key entry points to the region. The new signs are designed to promote recognition of the Great Southern regional brand and the iconic natural assets of the region.
UWA Perth International Arts Festival (PIAF), Great Southern Program 2005
In its third year the Great Southern was once again acknowledged by UWA Perth International Arts Festival as the stand-out success of PIAF’s regional programs for 2005.
Thirty world-class events were distributed around the Great Southern over three weeks in February and early March 2005. The program included a diverse range of entertainment including theatre, film, jazz, world music, chamber music, cabaret, literature, visual arts and community events. Most performed to sell-out audiences.
Through its strategic partnership with UWA PIAF, the GSDC is contributing to the development of the region’s cultural capacity. The key aims of the project are twofold: 1) improving the standard of living in regional communities by providing access to high quality international entertainment, previously only available in metropolitan areas, and 2) the development of quality cultural tourism product to increase tourism and extend the duration of the traditional summer holiday period.
GSDC as the major local sponsor matched PIAF’s contribution of $26,000 this year through the Regional Development Scheme. Other funding partners included the City of Albany, Timbercorp, Albany Office of the Water Corporation and the State Government through the WA Regional Initiatives Scheme (WARIS) grant program.
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Albany Boat Shed
The Albany Maritime Foundation (AMF) has secured more than $120,000 over the 2004-05 financial year towards the Albany Boat Shed project. The aim of the project is to develop the Albany Boat Shed’s tourism capacity through implementation of a product development strategy. The Boat Shed is positioned to capitalise on the iconic potential of Albany’s maritime heritage tourism theme. The facility is located on Albany’s scenic foreshore adjacent to the proposed Albany Waterfront development.
With the support of the Great Southern Area Consultative Committee, AMF has secured grants through the Department of Transport and Regional Services Regional Partnerships program, the City of Albany, the Department of Local Government and Regional Development, the Australian National Maritime Museum, and GSDC’s RDS program to the value of $17,000. Local building and design professionals are also contributing expertise on a pro-bono basis, valued at around $20,000.
Alterations to the Albany Boat Shed facility are scheduled to commence at the end of 2005. The work will include construction of a formal entry area, an overhead visitor walkway and viewing platform, a maritime heritage gallery and artisans’ work space.
Regional Equine Facility
During the 2004-05 financial year the Southern Horse Council (SHC), the (informal) peak body for equine activities in the Great Southern, secured $15,000 to undertake a pre-feasibility study into the viability of establishing a regional equine facility in the region. The GSDC contributed $5,000 to the study in partnership with the Department of Sport and Recreation, Department of Education and Training, Racing and Wagering WA and the Rainbow Coast Breeders Association.
The study is a response to an industry forum held in 2003 which highlighted stakeholder concern for the future viability of the region’s equine industry which contributes around $8 million per annum to the local economy. The equine industry is made up of a diverse array of activities including commercial, sport, leisure, training, education and servicing. While the needs of these various sectors differ considerably the key common challenges include escalating operational costs, inadequate infrastructure and ‘burn-out’ of volunteers.
The project aims to investigate the viability of a regional facility or precinct that will address the needs of the majority of the existing equine groups and activities in the Great Southern region. The vision to come out of the forum was for a joint facility that would act as a headquarters for a core group of equine stakeholders
Page 38 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity located in the Southern, more densely populated part of the region, and a special events venue for equine groups outside of this area.
The report is due to be handed down in July 2005.
The Jones’s Building
The Jones’s Building is a historic precinct of Broomehill houses and shops. Over the last year a comprehensive development plan has been produced with GSDC contributing $15,000 to the $32,500 project. Private interests have begun renovating the building which will be used for wine cellar sales, café, Indigenous art displays and tourism purposes in the near future.
TradeStart
The GSDC has continued to deliver the TradeStart program, a joint initiative with Austrade. The TradeStart program assists small and medium businesses to develop skills and knowledge about exporting and gives access to the Austrade network that opens market opportunities for exporting. TradeStart program clients are able to attend seminars to develop their skills, access one on one coaching with the TradeStart export advisor, participate in international buyer visits or international events and obtain tailored advice on market research and market selection.
A key seminar in 2004-2005 was the E-Business workshops, held for the first time across Australia and reaching Albany in February. Twenty local businesses attended the workshop. In the events calendar, GSDC, in conjunction with the South West Development Commission, WA Department of Industry and Resources, Tourism Western Australia and of course Austrade supported the Indulgence Exhibition held in Singapore April 29-30 and Kuala Lumpur May 3-4. The Indulgence Exhibition was a showcase of West Australian gourmet food, wine, tourism and lifestyle products and services.
In 2004-2005 10 new GSDC clients joined Austrade’s key program for delivering services to exporters, the New Exporter Development Program. Diverse fields represented include wine, gourmet food, aquaculture, agribusiness, forestry and agricultural machinery, beauty and therapeutic products, and surveillance systems services. Three clients achieved export success, with many more making plans to make an impact in 2005-2006.
This year Justin Laing completed his many years of service to the local exporting community to pursue his own business opportunity and was replaced by Kate Sounness.
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Organic Dairy
The GSDC contributed $5,000 to examine the technical and economic feasibility of organic milk production in the Great Southern region. The project was a joint initiative of GSDC and the Department of Agriculture. The results will be presented to the industry at a seminar in early 2005/06. The study identified that the barriers producers need to assess include the availability of advice, markets, change in management methodology, soil ph and nutrition, availability of organic grain and fodder, and pest control.
Major Project Register
In 2004/05 GSDC continued to maintain a major projects register to provide regular updates on major industry, infrastructure and construction-related projects occurring in the region. The aim of the register is to better inform the community of the status of major projects and to maximise local and regional business and employment involvement. These projects are listed on GSDC’s website and periodically sent out with GSDC’s Bulletin.
WA on Show
‘WA on Show’ was the State's show-case event and exhibition that coincided with the opening of the Perth Convention Centre in August 2004. GSDC took 114 square metres of floor space, and through the assistance of the Great Southern Regional Marketing Association secured 18 regional exhibitors. The Great Southern stand attracted approximately 35,000 people over the five day event or approximately 30% of total traffic. Most exhibitors reported an excellent return on investment.
Yongergnow Malleefowl Centre
During 2004-2005, the newly appointed Yongergnow Board appointed an architect to complete concept drawings and costings for the Ongerup Research and Interpretive Centre. The community’s expectations and initial concept plan was accepted by the Board, allowing for local input in the constructions phase.
This community-driven iconic tourism and research Centre should complete the development stage in 2005/06. The project budget of over $1.2 million has been boosted by a significant Lotterywest grant that has funded the fit-out of the interpretive and research components of the Centre.
GSDC will continue to work with the Yongergnow Management Committee in gaining further funding from the State and Commonwealth Governments to complete the development phase. Additional funding is required for roof construction, concrete floor and kitchen facilities.
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5.1.3 Goal 3 - Improve Infrastructure
A coordinated approach to infrastructure development that facilitates business, industry and community development and improves service provision to the region.
Albany Waterfront Development
This project has a 15 year old legacy of attempts to achieve a successful resolution for the development of the Albany Foreshore. In contrast, the current proposal has the virtually unanimous support of the Albany community. The City of Albany has formally signed off on the final concept plan on 30th May.
This outcome reflects the positive working relationship between GSDC, the City, LandCorp and DPI in progressing the project, the substantial community consultation including 3 workshops, community survey and the engagement with the local community by Minister MacTiernan through public meetings and Council briefings.
The project has developed beyond the original concept of a small harbour development to involve short stay accommodation, commercial land based activities and the location of the new Entertainment and Cultural Centre. It will create a dynamic new vista for Albany residents and tourists alike, creating jobs and further economic activity for the region.
It represents an important diversification of the region’s economy, breaking Albany’s total dependence on the agricultural sector and the associated vagaries of the cobweb cycle and recent seasonal variations.
The embracement by the region of the development reflects the maturing of the community attitudes towards economic infrastructure, and the important role that government can play in such provision.
As the project has moved considerably on from a boat harbour to include substantial land development, LandCorp will now take a lead role in the project.
GSDC was successful in attracting $13,986,000 to the project
Timber Industry Road Evaluation Strategy (TIRES)
Great Southern TIRES continues to be highly active in ensuring the Local Government road system is adequate for the timber transport task. GSDC
Page 41 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity provides executive support to TIRES, with Main Roads coordinating the planning process.
TIRES, through the funding support of GSDC and matched contribution from Local Government and industry, have prepared a 5 year Regional Transport Plan identifying the high priority road infrastructure required.
The aim of the Plan is to provide focus for the development of a road network to accommodate the change in road use from low intensity pastoral and agriculture to intensive timber use.
Another purpose of the Plan is not only to seek Commonwealth and State Governments’ funding into Local Government timber roads, but to also manage the network over time. This will require maintaining the currency of the Plan involving a continual assessment of the road network and an ongoing commitment by the Local and State Governments and the companies.
It is the view of the TIRES such an approach is the new paradigm in terms of obtaining funding from the Commonwealth Government, that is, using a robust ‘rolling’ Plan over time, with the partners’ contributions clearly spelled out.
This is the strength of the plan. For the current exercise, TIRES has been able to “lock in” Councils and industry-specific commitments to TIRES roads which, with the State Government’s contribution, puts the case to the Commonwealth for its “partnership” contribution.
While the Plan was favourably received by the Commonwealth, election commitments have depleted the AusLink program in the short term.
However, the State Government has contributed an extra $1.2m to TIRES roads in addition to the budget commitment of $0.9m. It also brought forward the first phase of the Albany Ring Road due to commence in 2005/06 and the Mt Barker By-pass to 2007/08.
Vancouver Waterways Project.
Capital works funding of $954,000 has been allocated over 2001/02 to 2005/06, to develop marine infrastructure at Whale World that will create another entry point to the region’s major tourism icon. In an agreement reached with the State Government, Jaycees Community Foundation Inc., custodians of Whale World, will build and manage the facility. The Foundation has been successful in attracting a grant from the Commonwealth’s Regional Partnerships program.
The GSDC, working in partnership with the Foundation and the Department for Planning and Infrastructure, has completed the detailed design of the marine
Page 42 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity infrastructure. All the environmental approvals have been obtained from the Department of Environment and City of Albany.
The proposed infrastructure will attract commercial boat operators and provide recreational facilities for divers and the public. The facility will enhance the tourism product at Whale World and complement the Albany Waterfront Development.
Environmental and engineering studies have indicated the need for a breakwater to protect the facility, resulting in delays and extra costs in design changes, which were taken to the community for input and endorsement.
Jaycees have called for tenders in June to commence construction.
Stirling Range Discovery Centre
Consistent with the State Government’s Sustainability Strategy and commitment to develop joint management partnerships in National Parks, the GSDC takes a lead role in supporting the proposed development of a Mountain Discovery Centre near Bluff Knoll in the Stirling Range National Park. The proposal is being developed in partnership with a range of State and Commonwealth government agencies and Aboriginal stakeholders. Following extensive consultation with the Noongar community and formation of a planning group, GSDC commissioned a feasibility study to determine planning requirements for the development.
Following a positive feasibility assessment in 2004/2005 the partner agencies are progressing negotiations with Commonwealth and State Government agencies for the next stage in the project.
Albany Convention and Entertainment Centre
During 2004, the GSDC held a position on the City of Albany’s steering committee to guide the design phase for the proposed Albany Convention and Entertainment Centre. GSDC contributed $10,000 and the City of Albany $148,000 to the process.
Key stakeholders were engaged and a report produced with design options for a dual use entertainment and convention facility with seating for between 600 and 650 patrons in a lyric style theatre, readily convertible to seat 500 convention delegates for plenary dinners and a flat floor for exhibitions.
The State Government has since committed $14 million to the project and the City has lodged further grant submissions in an effort to secure a contribution from the Commonwealth. The project continues to gain momentum and an
Page 43 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity alternative site is currently being assessed which would see the facility located within the Albany Waterfront Development.
The Albany Convention and Entertainment Centre will contribute to the region’s economic growth, increase tourist visitation and expenditure, and will stimulate visitor dispersal throughout regional WA. It is also expected to generate further private sector investment in business support services and tourist accommodation.
Day Therapy Centre for the Aged
GSDC was able to attract $820,000 to build this new facility at Albany Hospital. The Centre will provide multi-disciplinary care (medical, nursing, pharmacy, occupational therapy, physiotherapy and speech pathology) for older people requiring rehabilitation. It will divert elderly people away from the hospital system.
Key outcomes expected for older people are: Improved functioning; an increase in the number able to live in their home; a reduction in the number requiring residential high level care; improved continuity of care; reduced hospitalisation; reduced lengths of stay in hospital and improved quality of life.
Substantial cost sayings are envisaged for the Health budget, as elderly people are directed away from the hospital system. Benefits will also include increased employment in the region.
Without a Day Facility, the elderly will be forced prematurely into institutional care. Studies indicate that 27% of all admissions at Albany Hospital are elderly.
Kodja Place
In 2004/2005, GSDC secured $22,500 in funding assistance for the Kodja Place Visitor and Interpretive Centre in Kojonup. The funding package will help develop a new web site in partnership with the University of Western Australia and improve the Centre’s regional tourism profile and commercial viability through marketing assistance.
Gnowangerup Heritage Museum
The GSDC supported the development of the Gnowangerup Heritage Museum in Gnowangerup, a community project initiated by the Gnowangerup Aboriginal Corporation that will provide a suitable space in which to store and display the community’s stock of cultural, heritage, photographic and archival material. The
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Museum will be a significant educational and tourism resource both for the local community and visitors to Gnowangerup.
GSDC grant funding of $15,000 was secured through the Regional Development Scheme for capital works, with an additional $40,000 leveraged from other agencies for planning and minor works. GSDC’s Aboriginal Economic Development Unit also assisted in lodging a further $355,000 in capital funding submissions for the project through the Department of Local Government and Regional Development and Lotterywest in 2004/2005.
A Conservation Plan was produced for the building restoration works with funding assistance from the Department of Indigenous Affairs. Other partnering agencies include the Shire of Gnowangerup, Community Arts Network of WA, Great Southern College of TAFE, the Heritage Council of WA and the WA Museum.
Infrastructure Working Groups
The GSDC continued to chair the Timber Processing Precinct Group to address environmental, planning and infrastructure issues relating to two major timber processing projects proposed for the Mirambeena Timber Processing Precinct. The working group is comprised of industry and relevant State and Local Governments representatives.
Beacons International is leading a consortium of companies to establish a 40MW biomass power station using plantation blue gum residue as fuel. Lignor Pty Ltd is proposing to produce engineered strand lumber from blue gum timber. Total investment for the projects is estimated at some $270 million.
The GSDC also convened and chaired the Southdown Magnetite Working Group to assist Grange Resources through the planning and approvals processes for the establishment of its $400 million magnetite mine at Wellstead in the Great Southern.
Energy Infrastructure
The GSDC chaired the South East Shires Regional Power Group (SESRPG), which is a working committee comprised of the CEOs and Shire Presidents of Jerramungup, Gnowangerup and Ravensthorpe Shires, and the GSDC. SESRPG was initiated with a two-fold objective: 1) to influence Western Power, where possible, to address power supply gaps in the South East subregion of the Great Southern, and 2) to examine long-term options to address power supply problems in the area.
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In 2004/05 GSDC undertook a $3,500 study to re-assess the known and likely major energy demands in the Shire of Jerramungup and Ravensthorpe. The study documented where growth in electricity demand is likely to come from. The information will be given to Western Power for its assessment of power supply options to areas beyond the proposed Southdown mine at Wellstead.
Telecommunications (broadband) The Australian Telecommunications Users Group (ATUG) were pleased when 80 people attended Broadband road show seminar held in Albany during October 2004 to find out more about how to get faster internet. Albany was one of only 30 national locations for the roadshow. The road show included Telstra, Optus, Netcomm, Westnet, Australian Communication Authority, Department of Communications and local providers – Australian Unified Services, Omninet, Pre-emptive Strike and Albany Business Telephones. Telecommunication companies described the benefits of faster Internet services to homes and business. GSDC has also been working with local shires, small business and Telstra to build demand for ADSL services in smaller towns and suburbs of Albany. In addition to Albany, Katanning and Denmark a further nine exchanges have now qualified for ADSL installation. However, these services currently reach four kilometres only. GSDC and the Western Australian Local Government Association have recently secured a Commonwealth grant to continue to work in this area and extend low cost fast internet services to farming communities.
Katanning Saleyard Complex
The Shire of Katanning is planning to construct a new regional sheep saleyard complex in Katanning. Currently there are two regional sheep saleyards in WA, these being Midland and Katanning. Both saleyards are nearing the end of their useful lives and require new modern facilities.
The new proposed greenfield site will provide an environmentally-friendly and efficient new facility that will house a viewing platform for tourists and a kiosk.
The project is estimated to cost $7,000,000 and GSDC is assisting the Shire of Katanning with the feasibility study and applications for funding.
The construction of the new saleyard in Katanning will relocate the saleyards from the townsite to a more appropriate site adjacent to the WAMMO Abattoir, provide for efficient sheep throughput and additional employment. It will optimise
Page 46 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity the tourist potential of the saleyard and allow modern Quality Assurance Accreditation to be implemented.
Ongerup Housing Project
This project has come to fruition since initial planning began in April 2003. The result has been the construction of two community-owned and managed houses.
This infrastructure will provide for employee positions in the Shire. GSDC has contributed $30,000 of funding towards the $175,720 project. The GSDC has liaised with the Shire of Gnowangerup, to assist in funding applications and worked directly with the group.
5.1.4 Goal 4 - Natural Resource Management
Promote and Support Best Practice Natural Resource Management in the Region.
The GSDC has given prominence and focus to Natural Resource Management in the Great Southern region, identifying it as one of four key Goals within its Strategic Plan.
The GSDC recognises the manifold natural resource problems of salinity, soil acidity and general land degradation in the region and that these challenges require a co-ordinated effort by many agencies.
Centre of Excellence in Natural Resource Management
The Albany-based Centre of Excellence in Natural Resource Management (CENRM) is looking forward to a period of consolidation in 2005/06. The Centre secured more than $1.2m in research grants (half of them nationally competitive) for a wide range of projects relating to sustainable development, the utilisation and management of natural resources and the maintenance of healthy, diverse and properly functioning ecosystems.
CENRM has a staff of 12 and is undertaking targeted, cost-effective and innovative research in the field of natural resource management. It has contributed extensively to research papers and its positive contributions are beginning to be felt nationally and internationally.
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Since its inception, CENRM has attracted more that $2m in funding and has worked on over 60 separate research and teaching projects. New grants have been received from SCRIPT, ABRS, SWIC and Greening Australia. Over $3m of grant applications have been written and $750,000 is being sought from AusAID to finalise the Australian Water Research Facility.
CENRM is a partnership involving the University of WA, the WA Departments of Agriculture and the Environment, the City of Albany, the Department of Premier and Cabinet, GSDC and the Federal Government’s Regional Assistance Program through the Great Southern Area Consultative Committee.
GSDC Medal of Excellence
The GSDC’s Medal for Excellence in Natural Resource Management (NRM) is now in its fourth year and attracted a strong field of candidates. The Medal gives public recognition and reward for outstanding individual achievement in best practice NRM by people working in, or for the Great Southern region. The four finalists were Pattie Leighton, Liz Bungey, Russel Thomson and Keith Bradby.
The 2005 winner, Keith Bradby, was presented with a sterling silver medal by the Hon Kim Chance MLC at a formal dinner for distinguished guests.
Former 2003 medal winner, Jean Webb, used her award grant to investigate NRM practices in New Zealand. Jean has provided a comprehensive report on some NRM delivery models which give a useful insight into sustainable land use practices that other environmental organisations can benefit from.
The Denmark Centre for Sustainable Living (DCSL)
DCSL is an initiative of the Denmark Education and Innovation Centre (DEIC), a community-based group with strong local support. It was opened in February.
An early partnership between the Great Southern Area Consultative Committee and GSDC on this project certainly assisted in bringing early resources into the project and enabled the Centre to lever other sponsors including Lotterywest, Sustainable Energy Development Office, Myer and Ian Potter Foundations, the Foundation for Rural and Regional Renewal and the most important sponsor of all, the Denmark community itself.
With assistance from a Murdoch University team, the Centre features many sustainable living principles, such as the use of low toxic materials, eco friendly landscape design, recycling, passive solar heating, renewable energy and onsite wastewater management system.
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The key aims of the Centre are to:
• be a working example of sustainable living, • offer an educational program of courses, conferences and field trips.
The newly refurbished Centre offers a 66 bed residential facility with self catering and catered options for groups.
The WA Government in the early stages provided $100,000 towards its development from the Regional Infrastructure fund.
In addition, GSDC provided a $10,200 grant, through the Government’s Regional Development Scheme, to Greenskills, the current Centre managers, to develop a Nature Based Tourism Information Package directly relevant to marketing the Centre.
GSDC also provided a $5,000 sponsorship grant to assist in running the State’s NRM Conference in 05/06.
Development of High-Value Timber Opportunities for Drylands – Swamp She-oak – Casuarina obesa (C.obesa)
The need to develop more productive tree species for marginal, unproductive land has been identified by a range of agencies involved with strategic planning for the low rainfall agricultural zone in the Great Southern. An example of such planning is through Timber 2020's Regional Industry Development Plan for Farm Forestry in the Dryland Zone, in part funded by the GSDC.
C obesa has been identified as a potential species. However there remain many critical deficiencies in the technical knowledge about C.obesa and there is a need to quantify and validate claims about salinity control, agricultural benefits, carbon sequestration and the capacity for profitable sawlog production.
A five staged research and development project has been developed by the Centre for Excellence in Natural Resource Management for the C.obesa Working Group convened by GSDC and Timber 2020.
The goal of this R&D Strategy is to raise investor confidence in C.obesa by developing reliable production systems and multiple product/service and market opportunities to reduce investment risks.
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Research into the value of Agonis Fragrans
The commercial potential of agonis fragrans oil was recognised in 1996 through a Rural Industries Research and Development Corporation (RIRDC) project, ‘Management of Bush Stands for Cut Flowers and Foliage’.
Further studies occurred this year to investigate chemical variation of the species across its natural range to ensure that any further commercial development was based upon a suitable chemotype. The aim was also to confirm antimicrobial status of the oil, identify uses and clarify regulatory processes to increase its commercial application.
Extensive clinical trials to support a commercial launch of Agonis fragrans oil are now being conducted on behalf of a core commercial development group, which includes French interests.
Inland Trout
A three-year study that seeks solutions to sustainable trout farming in inland saline water has finished its first phase. GSDC is contributing $20,000 to the $87,500 project. The study is being conducted jointly by Murdoch University’s Fish Health Unit and the Saltwater Trout Alliance on properties in the Great Southern and Wheatbelt Regions.
Recent studies have concluded that the most potential for industry growth comes from the application of semi-intensive production systems in which fish feed on natural and supplemented diets. This method reduces production costs and decreases harmful nutrient outflow to the environment.
Years two and three studies will consist of experimental manipulation of invertebrate composition in ponds and complete economic analysis of inland aquaculture production systems.
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5.1.5 Goal 5 - Efficient Agency Performance
The effective management of the Commission’s resources, so that its core business of economic development is achieved with optimum efficiency.
‘Mungart Boodja’ Noongar Art Centre at Katanning
As part of its Aboriginal Economic Development program, the GSDC has established an Indigenous Noongar Art Centre at Katanning, situated in the old library building on Austral Terrace in Katanning. This Noongar Art and Craft Centre has been staffed by Mr Athol Farmer, a well-known Noongar artist who has participated in promoting Aboriginal art at national and international levels. Ms Hazel Hansen was contracted to assist at the Centre to provide administrative support on a part-time basis.
Capital Purchases
During the year, the GSDC purchased 17 new computers for its staff as part of its assets replacement program agreed with the Department of Treasury and Finance. Some software associated with the new computers was also purchased along with several small items of furniture and equipment.
In all, capital purchases amounted to $47,955.
Financial Management Information System (FMIS)
The GSDC considered a number of options to replace its ageing, and sometimes problematic, financial management information system. During the year the Commission was advised that it will be absorbed into Cluster A of the shared corporate services reform program in April 2007. In view of this impending transition, the Commission has decided to persevere with its present system until that time.
Staff Training, Recruitment and Development
In line with its Goal 5 objective “to develop, manage and encourage its staff to realise their full potential,” GSDC arranged for a number of training activities for staff during the year.
As a preference, the GSDC attempts to satisfy the training needs of staff in- house or at the local level by bringing specialised training personnel to Albany.
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One such training activity organised for all of the staff of the Commission was delivered by Priority Management on the most efficient use of the Microsoft application, Outlook.
Other training activities included management courses, advanced Microsoft Excel courses and training on a computerised budget system, developed especially for the GSDC. Over the year, the GSDC spent $20,581 on training activities for staff.
The GSDC has developed human resource management standards for the recruitment and development of staff, in accordance with Government policy guidelines. Training needs are identified by the Commission’s staff performance appraisal system.
Short in-house training sessions are conducted periodically through the year and cross-training and multi-skilling is encouraged generally throughout the Commission but especially across key functional positions.
Workers Compensation and Rehabilitation Arrangement
In compliance with Treasurer's Instruction 903, it is reported that the GSDC has not been required to provide payments or extend assistance for workers compensation claims or rehabilitation of staff.
WA Cleaner Production
The GSDC became a signatory to the WA Cleaner Production statement in early 2003. An internal working group was formed to develop a GSDC Policy document and an Action Plan. The Action Plan being implemented is bringing savings to the Commission.
Initiatives identified by the working group have included more efficient use of energy, heat and power throughout the Commission’s offices, enhanced paper recycling practices and an increased ratio of LPG vehicles in the GSDC’s vehicle fleet.
Targets for 2005/06 include reducing power consumption by 10% and increasing our LPG vehicle fleet from 50% to 75%.
Sustainability Action Plan
The Great Southern Development Commission is committed to embracing sustainability as a fundamental driver towards a better future for the people of the Great Southern region.
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The GSDC has always been mindful of the importance of sustainability through its legislative mandate under the Regional Development Commission’s Act.
This is evidenced in the Commission’s Strategic Plan where its commitment to sustainability is clearly articulated in its Vision, Guiding Principles and Goals. In particular, Goal 4, Natural Resource Management, guides GSDC’s work in relation to sustaining the primary asset of the Great Southern region, its environment.
In all GSDC’s project work, the outcome of sustainability is an essential assessment criterion, to ensure regional development activities will deliver benefits in an enduring manner.
GSDC also endeavours to engage in ”sustainability best practice” in the agency’s operational environment and has developed established benchmarks over the last 4 years.
The Commission is in a unique position as a State agency with its development and coordinating and legislative mandates to strongly influence the culture of other State Government agencies in relation to achieving sustainability outcomes.
For example, the Commission has been instrumental in such initiatives as Southern Region Interagency Team in responding to seasonal variations, NRM Centre for Excellence and management plans and strategies for the Stirling Range and Fitzgerald Biosphere areas, as well as numerous regional development scheme projects involving cross agency cooperation throughout the region.
The Great Southern Development Commission will continue to pursue outcomes that are sustainable and which deliver sustainable benefits to the people and communities of the Great Southern region.
To assist in achieving such outcomes GSDC has established as required for Government agencies its sustainability Action Plan.
Under the Action Plan committed actions have been developed along with time lines in the following areas:
• GSDC’s planning, reporting and decision making are conducted in accordance with sustainability principles, • Agency operations support sustainability, • Employees are encouraged and empowered to support sustainability.
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Complaints Policy
The GSDC values the working relationships and partnerships it has with its clients and is committed to providing its customers with high quality services to meet their needs.
In the event that a client is not satisfied with the services provided by the GSDC, a Complaints Policy has been developed. The Policy is designed to accept and process any complaints received. Any complaints received would be investigated and if necessary, improvements would be made to the GSDC’s modus operandi.
The Complaints Policy is in accordance with Government policy and is accessible through the GSDC’s website.
Equal Employment Opportunity Outcomes
The GSDC is committed to the principles of Equal Employment Opportunity. This is evidenced in its human resources standards and practices which are free from bias or discrimination on the grounds of gender, age, cultural or racial background or disability.
The GSDC has advertised and undertaken staff selection and recruitment processes in accordance with human resources standards, which have been based on those developed with the assistance of the Office of the Public Sector Standards Commissioner.
Cultural Diversity and Language Services Outcomes
In the course of its work the GSDC provides project management, information and facilitation services to clients within and without the Great Southern region.
All staff are encouraged to be aware of the needs of people who may need language assistance when planning their work activities, particularly public functions such as workshops or seminar events, so that these people may have the same access to our services as other members of the community.
The GSDC is committed to the Government’s Language Services Policy and is sensitive to the cultural and linguistic diversity of the Western Australian community and our client base.
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Should the need arise, the GSDC will provide appropriate interpretive, translation, sign language, or other mechanisms to ensure that clients with particular needs are treated equitably in the delivery of our services.
Youth Outcomes
The GSDC has assisted the youth of the Great Southern region through a number of its projects. These included the summer bus to Middleton Beach from Katanning during January, the Local Learning and Employment Project, GSDC funding of the Central Great Southern school transition project and funding support of the Great Southern Youth Committee project.
The GSDC’s activities in this area are more fully described in Section 5.1.1 of this Report, under the headings of Great Southern Community Youth Committee and Regional Youth Development Officer – Great Southern.
Recordkeeping Plan
As required by the State Records Act (2000), the GSDC developed a Recordkeeping Plan (RKP) which was approved by the State Records Commission on 29 January 2004.
During the year the GSDC continued to provide in-house training on record- keeping and developed a Records Management Manual to assist staff with clear procedures of records management functions and responsibilities.
GSDC also evaluated its RKP by an internal survey and consulted with staff on the efficiency and effectiveness of its recordkeeping systems. This process will be repeated annually.
GSDC maintains a standing agenda item of recordkeeping in its formal fortnightly staff meetings and the GSDC’s induction program has been modified to address the roles of staff and their responsibilities in regard to their compliance with the Commission’s RKP.
The Records Team within the GSDC reviewed the efficiency and effectiveness of its recordkeeping training program during the year to ensure that key record systems objectives and recordkeeping practices were being met.
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Freedom of Information Statement
The GSDC is comprised of a Board of Management of ten (10) members which meets bi-monthly and an operational branch of fifteen (15) officers.
The Board of Management is the executive body, comprising a Chairperson, Deputy Chairperson and seven members, with the Chief Executive Officer as an ex-officio member. The Board decides policy matters and considers projects which have been brought to the attention of the Commission. Members of the Board are selected from local government, industry and Ministerial appointees, with the exception of the Chief Executive Officer, who is a contracted full-time public servant.
Members of the public may participate in the formulation of the Commission’s policy and the performance of the agency’s functions by writing to the Commission or by personal contact with the Commission’s senior officers in the first instance.
The Commission holds information in working files, feasibility studies and various printed materials from a variety of sources. The Commission usually provides information free of charge; however, the Commission may charge a nominal amount for bulky reports, which are expensive to produce. Usually such items are available on the GSDC’s website.
Members of the public are welcome to visit the Commission and peruse the information available to parties interested in regional development matters. Much of this information is displayed in the reception area for members of the public to examine.
If members of the public wish to view information on working files or library documents, they are encouraged to speak with senior officers of the GSDC in the first instance. The documents of the GSDC may be inspected if application for inspection is in accordance with the Freedom of Information Act 1992. The Commission did not receive any requests for information under the Freedom of Information Act 1992 in 2004/2005.
Initial enquiries for access to information held by the Commission, other than those easily satisfied by a personal visit, are to be directed in writing to the:
Manager Corporate Services Great Southern Development Commission Pyrmont House 110 Serpentine Road PO Box 280 ALBANY WA 6331
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Disability Service Plan
The GSDC seeks to provide its services equally to all people interested in regional economic development.
The GSDC has a Disability Service Plan, which has been developed with assistance from the Disability Services Commission.
The Plan outlines 13 strategies under five outcomes. The five outcomes are:
1 Existing services are adapted to meet the needs of people with disabilities, 2 Access to building and facilities is improved, 3 Information about services and programs is provided in formats that enhance the communication needs of people with disabilities, 4 Advice and services are delivered by staff who are aware of, and who understand, the needs of people with disabilities, and 5 Opportunities are provided for people with disabilities to participate in public consultations, grievance mechanisms and decision making processes.
The intent of the Plan is to ensure that people with disabilities are not disadvantaged.
Staff are encouraged to be aware of the needs of people with disabilities in planning their work and to ensure that these people have the same access to our services as do other members of the community.
The implementation of the GSDC Disability Services Plan is an ongoing initiative.
The GSDC has always been supportive of agencies and businesses which facilitate the employment of people with disabilities. Over many years, the GSDC has engaged the services of a local business which employs people with disabilities for various tasks such as large mail-outs, car washing and detailing, and general administrative duties such as filing.
The GSDC will continue to use the personnel from this local agency to ensure that people with disabilities can access a range of employment opportunities and gain confidence in an office workplace environment.
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Risk Management
The GSDC has a Risk Management Policy and a Risk Management Plan.
The GSDC Risk Management Committee (RMC) met twice during the year and reviewed the controls exercised by the Commission against its risk categories, as identified in the Risk Management Plan. During its review the Committee identified two additional categories.
During the year the RMC reported to the CEO and the Board of the GSDC on the progress and status of the Risk Management Plan’s implementation, and on raising the awareness of risk generally within the Commission.
The Risk Management Committee will continue to meet twice per year and will report bi-annually to the CEO and annually to the Board on all matters of risk management.
The Commission has risk management as a standing agenda item at its fortnightly General Staff Meetings to maintain staff awareness and to promote a risk management culture within the agency.
The GSDC has expanded its audit program to include its risk management plan and practices.
Electoral Act 1907 Compliance
In compliance with the Electoral Act of 1907 section 175ZE, the Commission reports that it has incurred expenditure in the following categories as noted hereunder:
Expenditure with Advertising Agencies $4,238 Market research organisations $6,620 Expenditure with Polling Agencies Nil Expenditure with direct mail organisations Nil Expenditure with media advertising organisations Nil
TOTAL EXPENDITURE $10,858
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Statement of Compliance with Public Sector Standards
As required under Section 31 (1) of the Public Sector Management Act, I certify that I have complied with public sector standards in human resource management and the Western Australian Public Sector Code of Ethics.
The GSDC has developed policies, guidelines and processes for the Human Resource Standards for Staff Selection and Appointment, Transfer, Secondment, Performance Management, Redeployment, Termination and Discipline. Procedures have been put in place which are designed to ensure compliance to these policies and guidelines.
These policies, guidelines and processes have been communicated to all staff, who are aware of them and can access them from the Manager Corporate Services.
With respect to applications made for breach of standards review and corresponding outcomes for the 2003/2004 year, I advise the following:
Number lodged Nil Breaches found (including multiple breaches) Nil Applications still under review Nil
Method of Assessment
The Great Southern Development Commission has followed the Public Sector Standards in Human Resource Management as developed with the assistance of Office of the Public Sector Standards Commission. All staff selection processes have been effected through open advertising, merit based selection protocols, and managed through a panel of three officers. All HR processes have been documented and feedback has been sought throughout the year from unsuccessful job applicants. No claims of breach were lodged with the Commission.
Summary of extent of compliance with Public Sector Standards
Only three Standards applied to the Commission for 2004/2005, these were the Recruitment, Selection and Appointment, Termination and Performance Management Standards. Against these standards, the GSDC complied fully.
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With respect to the Recruitment Standard, the GSDC sought clearance from Public Sector Management Office, advertised openly, acknowledged all applications received, informed all applicants of their rights with respect to possible breaches and the lodgement of breach process, managed all staff selection processes through a three person panel, including one female panel member, short-listed applicants against the job selection criteria, interviewed short-listed applicants, offered and provided feedback when sought by unsuccessful applicants, documented all processes and ratings, including a formal staff selection report to the CEO.
With respect to terminations, the GSDC has dealt fairly with all terminating staff and provided the full entitlements as per the Award or contractual instruments.
BRUCE W MANNING CHIEF EXECUTIVE OFFICER
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Public Interest Disclosures
The Great Southern Development Commission does not tolerate corrupt or other improper conduct, including mis-management of public resources, in the exercise of the public functions of the GSDC and its officers, employees and contractors.
The Great Southern Development Commission is committed to the aims and objectives of the Public Interest Disclosure Act 2003. It recognises the value and importance of contributions of staff to enhance administrative and management practices and strongly supports disclosures being made by staff to bring to light any corrupt or improper conduct.
A ‘Public Interest Disclosure Act 2003 Policy’ and internal procedures have been developed to meet the Great Southern Development Commission’s obligations under the Act.
The GSDC will take all reasonable steps to provide protection to staff that make such disclosures from any detrimental action in reprisal for the making of a public interest disclosure.
The GSDC does not accept any of its officers, employees or contractors engaging in acts of victimisation or reprisal against those who make public interest disclosures.
The Public Interest Disclosure Officer is responsible for receiving disclosures of public interest information relating to matters falling within the sphere of responsibility of the Great Southern Development Commission.
The contact details of the Public Interest Disclosure Officer are as follows:
Mr Bruce W Manning Chief Executive Officer Great Southern Development Commission 110 Serpentine Road Albany WA 6330
There were no Public Interest Disclosures during the year in review.
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6 REGIONAL DEVELOPMENT POLICY IMPLEMENTATION
GSDC is required to report on its activities pertaining to the implementation of the State Government’s Regional Development Policy.
GSDC reports on the following outcomes and strategies to the Department of Local Government and Regional Development:
Outcome 1 - Government Decision-Making is Based on a Thorough Understanding of Regional Issues • Monitor and increase the level of community consultation and engagement on key Government agency decisions affecting the regions.
Outcome 2 - Planning in Partnership for a Sustainable Future • Develop and implement regional sustainability strategies. • Encourage stronger regional partnerships and agreements under the overarching State and local governments agreement. • Identify and fund regional research and development, and encourage funding from the private sector, Commonwealth Government and the tertiary education sector.
Outcome 3 - Effective Government Service Delivery to Regions • Enhance the coordinating role of regional development commissions on economic, social and environmental projects and initiatives in their regions. • Facilitate the collocation of Government agencies.
Outcome 4 - Skilled Communities • Encourage and enhance regional community leadership training and networks. • Support Indigenous communities in building their skills and capacity to plan and manage their own futures. • Improve training and employment outcomes for young people in the regions through school/work transition initiatives. • Continue to identify and deliver programs to assist regional residents and businesses to understand and embrace information and other new technologies.
Outcome 5 - Improved Regional Infrastructure • Consult with regional communities to determine the appropriate provision and maintenance of social infrastructure. • Support community infrastructure and projects through the Regional Investment Fund. • Continue to assist regional communities to access Commonwealth funding for infrastructure.
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Outcome 6 - Diversified Regional Economies • Encourage new regional industries and exports, for example green industries, aquaculture and plantation timber crops. • Enhanced enterprise development, employment opportunities and wealth creation for regional and remote Indigenous West Australians, particularly in areas such as arts and crafts and cultural and eco-tourism. • Develop partnership approaches between all spheres of Government, key industry associations and regional organisations to maximise regional employment and purchasing in relation to major mining, agribusiness and industrial development projects. • Support small and medium sized regional businesses to access government initiatives and programs.
Outcome 7 - Enhanced Regional Investment • Market regional investment opportunities within the regions and to Perth, other states and overseas. • Promote investment in regional industries, including mining, agriculture, tourism, aquaculture, timber and fishing. • Develop the export readiness of companies in regional areas. • Minimise constraints and encourage a positive climate to attracting investment in regional areas. • Provide an adequate supply of land for the expansion of residential, commercial and industrial uses. • Develop a coordinated regional and promotional approach to attracting potential business migrants.
Outcome 9 - Life Long Learning in the Regions • Investigate and develop ways of providing more tertiary education opportunities in the regions.
Outcome 10 - Effective Health Service Delivery • Develop a regional network of health infrastructure that supports the delivery of safe and sustainable health services to regional communities.
Outcome 12 - Enhanced Quality of Regional Lifestyles • Increase opportunities for regional communities to be involved in locally based arts and cultural activities.
Outcome 15 - Sustainable NRM • Develop better information at a regional level to support environmental and Natural Resource Management decisions. • Integrate the work of the Natural Resource Management strategies within broader regional planning processes.
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• Continue the partnership approach between regional development commissions, other Government agencies, Local Government, the Natural Resource Management Council and community based Natural Resource Management groups.
Outcome 16 - Conservation and Management of Our State's Natural and Built Heritage. • Determine environmental water requirements for regional water resources.
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7 REPORTING ON ‘BETTER PLANNING: BETTER SERVICES’
‘Better Planning: Better Services’ is a concise statement of the State Government’s intentions to improve the quality of life for all Western Australians comprised of five goal areas:
• People and Communities • The Economy • The Environment • The Regions • Governance
Government agencies are required to report on activities which have contributed to achieving the goals of this strategic planning framework. Selected GSDC activities are listed in the tables below. For a full description of each activity, please refer to the relevant section of this Annual Report shown in the second column of each table.
7.1 People and Communities – To enhance the quality of life and wellbeing of all people throughout Western Australia.
GSDC Activity Reference Western Australian Community Foundation 5.1.1 Learning Region 5.1.1 Great Southern Youth Committee 5.1.1 Southern Regions Community Leadership Forum 5.1.1 Runaway Beach Bus 5.1.1 Noongar Arts Development 5.1.2 UWA Perth International Arts Festival – GS 5.1.2 Day Therapy Centre for the Aged 5.1.3 Ongerup Housing Project 5.1.3
7.2 The Economy – To develop a strong economy that delivers more jobs, more opportunities and greater wealth to Western Australians by creating the conditions required for investment and growth.
GSDC Activity Reference Regional Development Scheme 5.1.1 Tourism Development in Northern Great Southern 5.1.1 Centre for Regional Innovation and Enterprise 5.1.1 Regional Achievers Awards 5.1.1 Aboriginal Economic Development 5.1.2
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Regional Equine Facility 5.1.2 The Jones’s Building 5.1.2 TradeStart 5.1.2 Organic Dairy 5.1.2 WA on Show 5.1.2 Kodja Place 5.1.3 Gnowangerup Heritage Museum 5.1.3
7.3 The Environment – To ensure that Western Australia has an environment in which resources are managed, developed and used sustainably, biological diversity is preserved and habitats protected.
GSDC Activity Reference South Coast Regional Initiative Planning Team 5.1.1 GSDC Medal of Excellence 5.1.4 Denmark Centre for Sustainable Living 5.1.4 Casurina Obesa 5.1.4 CENRM 5.1.4 Inland Trout 5.1.4
7.4 The Regions – To ensure that Western Australia is strong and vibrant.
GSDC Activity Reference Great Southern Region Marketing Network 5.1.1 Migration Assistance 5.1.1 Breaksea Island Heritage Resortation 5.1.2 Tourism Industry and Promotion 5.1.2 Albany Boat Shed 5.1.2 Yongergnow Malleefowl Centre 5.1.2 Albany Waterfront Development 5.1.3 Timber Industry Road Evaluation Strategy 5.1.3 Vancouver Waterways 5.1.3 Stirling Range Discovery Centre 5.1.3 Albany Convention and Entertainment Centre 5.1.3 Energy Infrastructure 5.1.3 Telecommunications 5.1.3
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7.5 Governance – To govern for all Western Australians in an open, effective and efficient manner that also ensures a sustainable future.
GSDC Activity Reference WA Cleaner Production 5.1.5 Equal Employment Opportunity Outcomes 5.1.5 Cultural Diversity and Language Services Outcomes 5.1.5 Recordkeeping Plan 5.1.5 Freedom of Information Statement 5.1.5 Disability Service Plan 5.1.5 Risk Management 5.1.5 Electoral Act 1907 Compliance 5.1.5 Compliance with Public Sector Standards 5.1.5 Sustainability Code of Practice 5.1.5
Page 67 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
8 PERFORMANCE INDICATORS 2004/2005
8.1 Certification of Performance Indicators
We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Great Southern Development Commission’s performance and fairly represent the performance of the Great Southern Development Commission for the financial year ended 30 June 2005.
RUSSELL HARRISON BRUCE W MANNING CHAIRMAN CHIEF EXECUTIVE OFFICER
Page 68 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
BLANK PAGE
FOR THE OPINION OF THE
AUDITOR GENERAL
Page 69 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
8.2 Government Desired Outcome
To ensure that regional Western Australia is strong and vibrant.
The Great Southern Development Commission has one Output, being Regional Development and its legislative mandate is:
“The sustainable development of the Great Southern region’s natural and built environment for the well-being of all”
The Government’s Desired Outcome undertaken by the GSDC is measured below.
8.2.1 Key Performance Indicators
Treasurer’s Instruction 904 requires accountable authorities to submit Performance Indicators showing the efficiency with which they have used their resources and their effectiveness in achieving the objectives they have set.
8.2.2 Key Effectiveness Indicator
Like most State Government agencies, the GSDC attempts to gauge its effectiveness through responses of its clients.
During the year the GSDC engaged Patterson Market Research to conduct a client survey. The GSDC provided Patterson Market Research with a list of 277 clients who had significant dealings with the Commission over the year. Patterson Market Research surveyed 165, and achieved a high response rate of 65%, of these clients by telephone, with a forecasting accuracy of + 4.5% at a 95% confidence level.
The results of the 2004/2005 Client Survey, and the Client Survey of the previous years, are summarised below:
Effectiveness Indicator 1 – Regional Development
The clients of the GSDC rated the Commission’s perceived performance in coordinating and promoting economic development in the Great Southern region as follows:
Extremely Effective or Very Effective Ineffective/ Very Ineffective
2005 2005 2004 2003 2002 2001 2005 2004 2003 2002 2001 Target Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
75% 81% 77% 75% 73% 70% 3% 5% 4% 3% 8%
Page 70 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Excellent/Good Poor/Very Poor
2005 2004 2003 2002 2001 2000 2005 2004 2003 2002 2001 2000 Performance in lobbying to improve 78% 64% 64% 58% 62% 72% 6% 8% 5% 13% 10% 5% infrastructure development. N=84 Performance in enhancing investment 68% 61% 70% 60% 56% 64% 8% 5% 6% 8% 12% 4% opportunities. N=84 Performance in providing business 76% 77% 70% 66% 68% 69% 5% 5% 9% 8% 7% 7% information and advice. N=101 Performance in creating economically 63% 63% 60% 56% 57% 50% 7% 8% 7% 9% 14% 7% sustainable development. N=90 Performance in improving access to 67% 71% 69% 57% 58% 52% 6% 5% 2% 10% 7% 5% services. N=92 Performance in improving quality of 70% 61% 63% 54% 53% 53% 9% 9% 5% 9% 14% 7% life. N=84 Performance in developing career 55% 55% 55% 52% 49% 44% 9% 13% 6% 15% 9% 7% opportunities. N=84
Page 71 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
8.2.3 Key Efficiency Indicator
The key performance indicator used by the Commission, to assess its performance and report its efficiency is cost per project.
This efficiency indicator, for this solitary Output is calculated by dividing the cost of services of the Commission, as reported in the Statement of Performance, less the grants and subsidies processed, divided by the number of projects undertaken by the Commission in the year.
2002/03 2003/04 2004/05 Target 2004/05 Actual Actual Actual
Cost $1,811,542 $1,689,611 $2,582,000 $2,016,683
Projects completed 56 48 60 43
Cost per $32,349 $35,200 $43,033 $46,900 project
Reasons for Significant Variation from Target for 2004/2005:
• The GSDC paid $179,170 more in capital user charges than the previous year
• Only 43 projects were completed compared to the target of 60 for the year
• There was an extra pay this year
Note: In addition to the 43 projects completed in 2004/05, the GSDC processed 34 milestone payments against 22 other projects pertaining to the Regional Development Scheme
Page 72 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
9 FINANCIAL STATEMENTS
For the period 1 July 2004 to 30 June 2005
9.1 Certification of Financial Statements
The accompanying financial statements of the Great Southern Development Commission have been prepared in compliance with provisions of the Financial Administration and Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2005 and the financial position as at 30 June 2005.
At the date of signing, we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.
RUSSELL HARRISON CHAIRMAN
BRUCE W MANNING CHIEF EXECUTIVE OFFICER
BERT PARDINI PRINCIPAL ACCOUNTING OFFICER
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PAGE LEFT BLANK
FOR THE
OPINION
OF THE
AUDITOR GENERAL
Page 74 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
GREAT SOUTHERN DEVELOPMENT COMMISSION Statement of Financial Performance for the year ended 30 June 2005
2005 2004 $ $
COST OF SERVICES Note Expenses from ordinary activities Employee expenses 2 1,010,249 895,461 Supplies and services (a) 3 664,699 624,407 Depreciation expense 4 33,120 43,426 Accommodation expenses 5 95,295 92,167 Grants and subsidies 6 456,796 462,190 Capital user charge 8 213,320 34,150 Total cost of services 2,473,479 2,151,801
Revenues from ordinary activities Revenue from operating activities User charges and fees 9 80,992 47,273 Commonwealth grants and contributions 10 89,408 129,352
Revenue from non-operating activities Interest Revenue 9 1,863 1,769 Proceeds from disposal of non-current assets 11 0 48 Other revenues from ordinary activities 9 10,131 11,868 Total revenues from ordinary activities 182,394 190,310
NET COST OF SERVICES 23 2,291,085 1,961,491
REVENUES FROM STATE GOVERNMENT Service appropriation 12 1,602,000 2,187,000 Resources received free of charge 12 2,637 0 Grants received from Government 12 675,789 564,940 Total revenues from Government 2,280,426 2,751,940
Change in net assets before extraordinary (10,659) 790,449 items
Total changes in equity other than those resulting from transactions with WA State (10,659) 790,449 Government (a) Administration expenses are include in supplies and services
The Statement of Financial Performance should be read in conjunction with the accompanying Notes.
Page 75 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
GREAT SOUTHERN DEVELOPMENT COMMISSION Statement of Financial Position as at 30 June 2005
Note 2005 2004 $ $ Current Assets Cash assets 23 231,678 128,174 Restricted cash assets 13 6,852,510 2,023,931 Receivables 14 130,098 6,760 Amounts receivable for services 15 30,000 30,000 Other assets 16 6,332 9,399 Total Current Assets 7,250,618 2,198,264
Non-Current Assets Amounts receivable for services 15 118,000 105,000 Property, plant and equipment 17 93,297 78,461 Infrastructure 18 339,224 139,896 Total Non-Current Assets 550,521 323,357
Total Assets 7,801,139 2,521,621
Current Liabilities Payables 19 44,931 58,821 Provisions 20 214,964 215,067 Other liabilities 21 599,964 584,617 Total Current Liabilities 859,859 858,505
Non-Current Liabilities Provisions 20 106,023 66,200 Total Non-Current Liabilities 106,023 66,200
Total Liabilities 965,882 924,705
NET ASSETS 6,835,257 1,596,916
Equity Contributed equity 22 5,700,310 451,310 Accumulated surplus 22 1,134,947 1,145,606
TOTAL EQUITY 6,835,257 1,596,916
The Statement of Financial Position should be read in conjunction with the accompanying Notes.
Page 76 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
GREAT SOUTHERN DEVELOPMENT COMMISSION Statement of Cash Flows for the year ended 30 June 2005
Note 2005 2004 $ $ CASH FLOWS FROM STATE GOVERNMENT Service appropriation 12 1,559,000 2,139,000 Capital appropriations 5,249,000 322,000 Holding account drawdowns 12 30,000 30,000 Resources received free of charge 2,637 0 Grants from State Government agencies 12 675,789 564,940 Net Cash Provided by State Government 7,516,426 3,055,940
Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES
Payments Employee costs (918,631) (881,336) Supplies and services (465,801) (374,966) Accommodation (95,295) (92,167) Grants and subsidies (456,796) (462,190) Capital User Charge (213,320) (34,150) GST payments on purchases (82,800) (32,851) GST payments to taxation authority (280,561) (249,605) (2,513,204) (2,127,265) Receipts User charges and fees (32,215) 92,160 Commonwealth grants and contributions 10 89,408 129,352 Interest received 1,863 1,769 GST receipts from taxation authority 117,089 104,776 Net cash provided by/(used in) operating 23 (2,337,059) (1,799,208) activities
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds of sale of non-current physical assets 0 48 Purchase of non-current physical assets (247,284) (164,819) Net cash provided by/(used in) investing activities (247,284) (164,771)
TOTAL CASH FLOWS FROM OPERATING (2,584,343) (1,963,979) AND INVESTING ACTIVITIES
Net Increase/(decrease) in cash held 4,932,083 1,091,961
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2005 2004
Cash assets at the beginning of the financial 2,152,105 1,060,144 year
CASH ASSETS AT THE END OF THE 23 7,084,188 2,152,105 FINANCIAL YEAR
The above Statement of Cash Flows should be read in conjunction with the accompanying Notes.
Page 78 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending June 30, 2005
Significant Accounting Policies
The following accounting policies have been adopted in the preparation of the financial statements. Unless otherwise stated these policies are consistent with those adopted in the previous year.
1 General Statement
The financial statements constitute a general purpose financial report which has been prepared in accordance with Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board, and Urgent Issues Group (UIG) Consensus Views as applied by the Treasurer's Instructions. Several of these are modified by the Treasurer's Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer's Instructions are legislative provisions governing the preparation of financial statements and take precedence over Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board and UIG Consensus Views. The modifications are intended to fulfill the requirements of general application to the public sector, together with the need for greater disclosure and also to satisfy accountability requirements.
If any such modification has a material or significant financial effect upon the reported results, details of that modification and where practicable, the resulting financial effect, are disclosed in individual notes to these financial statements.
Basis of Accounting
The statements have been prepared on the accrual basis of accounting using the historical cost convention, with the except for certain assets and liabilities which, as noted, are measured at fair value.
(a) Service Appropriation
Service appropriations are recognised as revenues in the period in which the Commission gains control of appropriated funds. The Commission gains control of appropriated funds at the time those funds are deposited into the Commission’s bank account or credited to the holding account held at the Department of Treasury and Finance.
(b) Contributed Equity
Under UIG 38 “Contributions by Owners Made to Wholly-Owned Public Sector Entities” transfers in the nature of equity contributions must be designated by the Government (owners) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions in the financial statements. Capital contributions (appropriations) have been designated as contributions by owners and have been credited directly to the Contributed Equity in the Statement of Financial Position.
Page 79 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2
(c) Grants and Other Contributions Revenue
Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Commission obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt. Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.
(d) Revenue Recognition
Revenue from sale of goods and disposal of other assets and the rendering of services, is recognised when the Commission has passed control of the goods or other assets or delivery of service to the customer.
(e) Acquisitions of assets
The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition. Assets acquired at no cost or for nominal consideration, are initially recognised at the fair value at the date of acquisition.
(f) Depreciation of non-current assets
All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner which reflects the consumption of their future economic benefits. Depreciation is calculated on the straight line basis, using rates which are reviewed annually. Expected useful lives for each class of depreciable asset are:
Furniture and fittings 10 years Plant and equipment 5 years Computer hardware and software 3 years
(g) Leases
The Commission has entered into a number of operating lease arrangements for the rent of the building where the lessor effectively retains all of the risks and benefits incident to ownership of the items held under the operating lease. Equal installments of the lease payments are charged to the Statement of Performance over the lease term as this is representative of the pattern of benefits derived from the leased property.
(h) Cash
For the purpose of the Statement of Cash Flows, cash includes cash assets and restricted cash assets net of outstanding bank overdrafts. These include short-term deposits that are readily convertible to cash on hand and are subject to insignificant risk of changes in value.
Page 80 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity Notes to the Financial Statements for the year ending 30 June 2
(i) Receivables
Receivables are recognised at the amounts receivable as they are due for settlement no more than 30 days from the date of recognition. Collectability of receivables is reviewed on an on-going basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised where some doubt as to the collection exists and in any event where the debt is more that 60 days overdue.
(j) Payables
Payables, including accruals not yet billed, are recognised when the Commission becomes obliged to make future payments as a result of a purchase of assets or services. Payables are generally settled within 30 days.
(k) Employee benefits
Annual leave
This benefit is recognised at the reporting date in respect to the employee’s services up to that date and is measured at the nominal amounts expected to be paid when the liabilities are settled.
Long service leave
The liability for long service leave expected to be settled within 12 months of the reporting date is recognised in the provisions for employee benefits, and is measured at the nominal amounts expected to be paid when the liability is settled. The liability for long service leave expected to be settled more than 12 months from the reporting date is recognised in the provisions for employee benefits and is measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given, when assessing expected future payments, to expected future wage and salary levels including relevant on costs, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
(l) Superannuation
Staff may contribute to the Pension Scheme, a defined benefits pension scheme now closed to new members, or the Gold State Superannuation Scheme, a defined benefit lump sum scheme now also closed to new members. All staff who do not contribute to either of these schemes become non-contributory members of the West State Superannuation Scheme, an accumulation fund. The Commission contributes to this accumulation fund in compliance with the Commonwealth Government's Superannuation Guarantee (Administration) Act 1992. All of these schemes are administered by the Government Employees Superannuation Board (GESB).
From June 30, 2004, the Treasurer has assumed the liability for the pension and pre- transfer benefit superannuation liabilities. The assumption was designated as a contribution to owners under TI 955(3) on 30 June 2004.
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Notes to the Financial Statements for the year ending 30 June 2
The liabilities for superannuation charges under the Gold State Superannuation Scheme and West State Superannuation Scheme are extinguished by payment of employer contributions to the GESB.
(m) Employee benefit on-costs
Employee benefit on-costs, are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities and expenses.
(n) Accrued Salaries
Accrued salaries represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. The Commission considers the carrying amount approximates net fair value.
(o) Resources Received Free of Charge or For Nominal Value
Resources received free of charge or for nominal value which can be reliably measured are recognised as revenues and as assets or expenses as appropriate at fair value.
(p) Comparative Figures
Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented in the current financial year.
Page 82 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity Notes to the Financial Statements for the year ending 30 June 2005
2005 2004
2 Employee Expenses Wages and salaries 878,218 794,195 Superannuation 92,311 86,652 Long service leave 41,164 26,114 Annual leave (1,444) (11,500) 1,010,249 895,461 These employee expenses include superannuation, payroll tax (if applicable) worker’s compensation premiums and other employment on-costs associated with the recognition of annual and long service leave liability. The related on-costs liability is included in employee benefits liabilities at Note 20.
3 Supplies and Services Communication 39,641 34,834 Consultants and contractors 125,302 113,019 Consumables 63,214 67,621 Travel 31,078 71,574 Subsidies and transfer payments 342,841 313,704 Other (staff costs) 62,623 23,655 664,699 624,407 4 Depreciation expense Furniture and fittings 2,798 2,015 Office Equipment 9,067 11,546 Computing hardware 18,262 26,792 Computing software 2,993 3,073 33,120 43,426 5 Accommodation expenses Lease rentals 70,133 70,459 Repairs and maintenance 15,655 13,030 Cleaning 9,507 8,678 95,295 92,167 6 Grants and subsidies Grants expensed by the raising of liabilities for legally enforceable 328,100 380,000 contracts under the Regional Development Scheme. Perth International Arts Festival 26,800 0 Denmark Farmhouse Cheese 20,000 0 University of Western Australia 8,495 25,000 Western Australian Museum 9,600 0 Great Southern Regional Training Services 7,500 Centre of Excellence in NRM 0 20,000 Great Southern Equine Industry 4,500 0 Great Southern Community Youth Committee 4,500 0 Harboursound 4,000 0 Timber 2020 Group Inc 3,000 0 Albany Maritime Foundation 3,590 0 Great Southern Area Consultative Committee 2,000 City of Albany 12,000 9,500 Albany Chamber of Commerce 2,000 0 Denmark Artists 2,000 0 Great Southern Farmers Markets Albany 2,000 0
Page 83 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity Notes to the Financial Statements for the year ending 30 June 2005
2005 2004
City of Albany Band 3,000 0 Mount Barker Tourist Bureau 1,000 0 Malleefowl Preservation Group 1,000 0 MIX Artists Inc 1,000 0 Project Related Grants (various) 10,711 27,690 456,796 462,190
7 Grants and subsidies (continued)
Recurrent: The following grants were paid against liabilities raised in the previous financial year. These did not flow through the Statement of
Financial Performance and are reported hereunder for transparency and record purposes:
Great Southern Region Marketing Association 130,125 112,875 Ongerup Community Development 30,000 0 Prospects for Environmental Accreditation 0 25,000 Perth International Arts Festival 0 23,000 Shire of Denmark 23,409 0 AWI World Merino Conference 20,000 0 Shire of Jerramungup 0 17,000 Whaleworld 12,500 0 Timber Infrastructure Roads Evaluation Study (TIRES) 8,500 0 Timber 2002 Inc 0 10,000 Seafood Industry Marketing 0 10,000 Master Builders Association of WA 0 10,000 Stirling Range Visitor Centre 0 10,000 Timber 2020 Incorporated 0 10,000 Shire of Tambellup – Heritage trail 0 10,000 Albany Maritime Foundation 0 13,000 Nichol Business Development 10,750 0 Shire of Katanning 10,000 8,000 Shire of Broomehill 10,000 0 Pingrup Progress Association 10,000 0 Albany Racing Club 10,000 0 Saltwater Trout Alliance 5,969 6,804 Dept of Agriculture Western Australia 5,000 0 Harboursound 5,000 0 Agri Business Centre Tambellup 5,000 0 Mandalay to Albany interactive CD 0 6,084 Down South Festival 500 4,500 Great Southern Thoroughbred Marketing 0 4,000 Albany Chamber of Commerce and Industry Inc 4,000 0 The Lily 4,000 0 Artsouth WA 4,000 0 Great Southern Equine Council 3,000 4,500 Mount Barker Turf Club 1,000 0 City of Albany (Windfarm attraction) 0 5,000 Miscellaneous minor projects 0 12,724 312,753 302,487
Page 84 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
2005 2004 8 Capital User Charge A capital user charge of 8% has been set by the Government for 2004/05 and represents the opportunity cost of capital invested in the net assets of the Commission used in the provision of services. 213,320 34,150 The charge is calculated on the net assets adjusted to take account of exempt assets. Payments are made to the Department of Treasury and Finance on a quarterly basis.
9 Other revenues from ordinary activities Rent received 10,131 11,868 Other 1,863 1,769 Project Fees (services provided) 80,992 47,273 92,986 60,910
10 Commonwealth grants and contributions Australian Taxation Office 2,292 0 Dept of Transport and Regional Services 0 26,900 Rural Industries Research and Development Corporation 5,053 34,153 Austrade 82,063 68,299 89,408 129,352
11 Net profit/(loss) on disposal of non-current assets Gain on disposal of non-current assets Office equipment 0 70 Loss on disposal 0 22 Net gain/(loss) 0 48
12 Revenues from State Government Appropriation revenue received during the year: Service appropriation (i) 1,559,000 2,187,000 Less amounts receivable for Outputs 13,000 -48,000 1,572,000 2,139,000 Plus drawdowns from the Holding Account 30,000 30,000 1,602,000 2,169,000 Resources received free of charge Based on estimates provided by agencies: Department of Treasury and Finance for super liability assumed 2,637 0 1,604,637 2,169,000
(i) Output appropriations are accrual amounts reflecting the full cost of outputs delivered. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year. (ii) Where assets or services have been received free of charge or for nominal consideration the Commission recognises revenues (except where the contribution of assets or services is in the nature of contributions by owners, in which case the Commission shall make a
direct adjustment to equity) equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have been purchased if not donated, and those fair values shall be recognised as assets or expenses, as applicable.
Page 85 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
2005 2004
12 Revenues from State Government (continued)
Revenues received from State agencies: Dept of Local Government and Regional Development 428,789 400,000 Dept of Industry & Technology (DOIT) – formerly DOCAT 0 20,000 Dept of Conservation and Land Management 80,000 9,940 Dept of Industry & Resources 5,000 0 Office of Aboriginal Economic Development 160,000 125,000 Department of Indigenous Affairs 0 10,000 Dept for Community Development 2,000 0 675,789 564,940
Commencing with the 2003/04 audit, the Office of the Auditor General began charging a fee for auditing accounts, financial statements and performance indicators. The fee for the 2003/04 audit of $12,000 (exclusive of GST) was paid in the 2004/05 financial year.
13 Restricted cash assets Special purpose accounts * 18,412 35,000 Cash held to be used only in accordance with grant conditions 6,234,134 1,404,314 Legally enforceable grants relating to contracts entered into by 599,964 584,617 the Commission under the Regional Development Scheme 6,852,510 2,023,931 * CBA interest bearing account for Transport Study
14 Receivables Current: Trade debtors 130,098 6,760 130,098 6,760
15 Amounts receivable for services Current 30,000 30,000 Non-current 118,000 105,000 148,000 135,000 This asset represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.
16 Other assets Current: Prepayments 6,332 9,399 6,332 9,399
Page 86 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
2005 2004 17 Plant, equipment and infrastructure Furniture and fittings 55,237 54,313 Accumulated depreciation -34,576 -31,778 20,661 22,535
Office equipment 110,208 110,038 Accumulated depreciation -88,257 -79,190 21,951 30,848
Computing hardware 178,322 137,176 Accumulated depreciation -132,310 -114,666 46,012 22,510
Computing software 70,319 65,223 Accumulated depreciation -65,646 -62,655 4,673 2,568
Total property, plant and equipment 93,297 78,461
Infrastructure (works in progress) 339,224 139,896 Accumulated depreciation 0 0 339,224 139,896
Total of plant, equipment and infrastructure 432,521 218,357
Page 87 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
Reconciliations
Reconciliations of the carrying amounts for equipment at the beginning and end of the current financial year are set out below:
Furniture Office Computing 2005 Computing TOTAL & fittings equipment hardware software
Carrying amount at start 22,534 30,849 22,509 2,570 78,462 of year
Additions 925 169 41,765 5,096 47,955
Disposals 0 0 0 0 0
Reclassification 0 0 0 0 0
Depreciation (2,798) (9,067) (18,262) (2,993) (33,120) Carrying amount at end of 20,661 21,951 46,012 4,673 93,297 year
Page 88 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
2005 2004 18 Infrastructure At fair value 339,224 139,896 (This represents the capitalisation of the Albany Boat Harbour) 339,224 139,896
19 Payables Current: GST Payable (includes PAYG) 44,931 5,030 Trade payables 0 53,791 44,931 58,821 20 Provisions Current: Annual Leave 126,307 127,751 Long Service Leave 88,657 87,316 214,964 215,067 Non-Current: Long Service Leave 106,023 66,200 320,987 281,267
On June 30, 2004, unfunded liabilities relating to the Pension Scheme and the pre-transfer benefit for employees who transferred to the Gold State Superannuation Scheme were assumed by the
Treasurer. An expense equivalent to the movement in this liability during the financial year has been included in Employee Expenses in the Statement of Financial Performance.
The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including superannuation, payroll tax (if applicable) and workers compensation premiums. The liability for such on-costs is included here. The associated expense is included under employee Expenses Note 2.
The Commission considers the carrying amount of employee
entitlements approximates the net fair value
Page 89 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
2005 2004 21 Other liabilities Current: Grant liabilities 599,964 584,617 599,964 584,617 22 Equity Contributed equity Opening balance 70,000 50,000 Capital contributions (i) 20,000 20,000 Albany Waterfront capitalized 4,711,000 302,000 Day Therapy Centre capitalized 820,000 0 Liability assumed by Treasurer (ii) 79,310 79,310 Closing balance 5,700,310 451,310
Accumulated surplus Opening balance 1,145,606 355,157 Change in net assets -10,659 790,449 1,134,947 1,145,606 Closing balance 6,835,257 1,596,916
(i) Capital appropriations, have been designated as contributions by owners and are credited directly to equity in the Statement of Financial Position. (ii) Assumption of superannuation liability by the Treasurer - refer to Note 1 (l).
23 Notes to the Statement of Cash Flows
Reconciliation of Cash: Cash at the end of the financial year showing in the Statement
of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows. Cash assets 231,678 128,174 Committed funds from external sources, see Note 13 6,234,134 1,404,314 Legally enforceable grants 599,964 584,617 Restricted cash assets (special purpose accounts) 18,412 35,000 7,084,188 2,152,105
(b) Non-Cash financing and investing activities 0 (c) Reconciliation of net cost of services to net cash
flows provided by (used in) operating activities
Net cost of services (2,291,085) (1,961,491)
Page 90 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity Notes to the Financial Statements for the year ending 30 June 2005
2005 2004 Non-cash Items: Depreciation expense 33,120 43,426 (Increase)/decrease in assets: Current receivables (123,338) 33,020 GST receivables 32,996 -3,437 Other current assets (prepayments) 3,067 -8,965 Profit or loss on sale of assets 0 -48 Increase/(decrease) in liabilities: Current payables (38,444) 98,776 Employee entitlements: Accrued salaries and PAYG 6,906 -18,049 Movement in provision for annual leave (1,445) -11,500 Movement in provision for long service leave 41,164 26,114 Movement in provision for superannuation 0 2,946 GST liability 0 0 Net cash provided by/(used in) operating activities (2,337,059) (1,799,208)
24 Commitments for expenditure (a) Non-cancelable operating lease commitments
Commitments in relation to leases contracted for at the reporting
date but not recognised as liabilities, payable:
For Vehicles: Within 1 Year 24,299 35,172 Later than 2 years but not later than 5 years 1,211 30,870 25,510 66,042
For Office Accommodation: Within 1 Year 64,672 63,023 Later than 2 years but not later than 5 years 194,016 189,069 258,688 252,092 25 Contingent Liabilities
At the reporting date the Commission had no contingent liabilities
26 Controlled Entities At the reporting date the Commission had no controlled entities
27 Events Occurring After Reporting Date No material events have occurred after June 30th 2005
Page 91 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
28 Explanatory Statement
(i) Significant variations between estimates and actual results for the financial year.
Details and reasons for significant variations between estimates and actual results are detailed below. Significant variations are considered to be those greater than 10% and $20,000.
2005 2005 Budget Actual Variation $ $ $ Employee expenses: 1,241,786 1,010,249 -231,537 The GSDC budgeted and reserved an amount of $140,000 to meet potential future leave liabilities and leave estimated to be cleared during the year was lower actually than expected.
Supplies and services: 876,624 664,699 +211,925 GSDC carried forward unspent funds for on-going projects into 2005/2006.
Purchase of capital (depreciable) items On average the GSDC spends $50,000 74,896 47,955 -26,941 per year on capital items. From 2003/2004 the GSDC carried forward $24,896 which was quarantined for capital items.
Grants and subsidies 3,028,564 456,796 - 2,571,768 As at 30 June the GSDC was holding $795,000 for the Day Therapy Centre, $754,617 for the Vancouver Waterways project, $75,000 for the UWA Albany Centre and amounts payable under the Regional Development Scheme amounted to $599,964.
Capital user charge 236,000 213,320 -22,680 Exempt assets held at 30 June 2005 reduced this charge.
Page 92 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
28 Explanatory Statement (Continued)
(ii) Significant variations between actual revenues and expenditure for the financial year and revenues and expenses for the immediately preceding year.
Details and reasons for significant variations between actual results with the corresponding items of the preceding year are detailed below. Significant variations are considered to be those greater than 10% and $20,000.
2005 2004 Variation $ $ $
Employee expenses 1,010,249 895,461 + 114,788 An additional staff member and Increases in Awards and superannuation effected this figure. Also an extra $8,608 was paid in higher duties allowance.
Capital user charge (CUC) 213,320 34,150 +179,170 GSDC paid $213,320 out of a CUC budget allocation of $236,000. GSDC received a larger CUC amount this year because GSDC’s total budget included large amounts of expensed capital works items
Page 93 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005 2005 2004 Remuneration of Members of the Accountable Authority 29 and Senior Officers Remuneration of Members of the Accountable Authority The number of members of the Accountable Authority, whose total fees, salaries, superannuation and other benefits for the financial year, fall within the following bands: $ Under $3,000 7 11 3,000 - 10,000 2 0 20,000 - 30,000 1 0 Total remuneration of the members of Accountable Authority: 36,384 30,022
The superannuation included here represents the superannuation expense incurred by the Authority in respect of members of the Accountable Authority. No members of the Accountable Authority are members of the
Pension Scheme.
Remuneration of Senior Officers The number of members of the Senior Officers, whose total fees, salaries, superannuation and other benefits for the financial year, fall within the following bands: $ 120-000 – 130,000 0 1 130,000 – 140,000 1 0 Total remuneration of Senior Officers: 130,021 120,027
The superannuation included here represents the superannuation expense incurred by the Authority in respect of
Senior Officers other than senior officers reported as members of the Accountable Authority. No members of the Accountable Authority are members of the
Pension Scheme.
30 Remuneration of Auditor Remuneration to the Auditor General for the financial year is as
follows: Auditing the accounts, financial statements and performance 12,000 10,000 indicators Note, the payment for auditing services occurs in the following year. The fee for the 2003/04 year of $12,000 (exclusive of
GST) was paid in the 2004/05 financial year and the auditing fee of $15,000 for 2004/05 will be paid in the 2005/06 year.
31 Related Bodies The Commission has no related bodies as defined by
Treasurer’s Instruction 951 32 Write – offs The Commission had no write-offs for 2004/2005 33 Output Information The Commission has only one output being Regional
Development
Page 94 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
Notes to the Financial Statements for the year ending 30 June 2005
33 Financial Instruments
(a) Interest Rate Exposure
The following table details the Commission’s exposure to interest rate risk as at the reporting date:
Fixed Interest Rate Maturity
2005 Weighted Variable Less 1 to 5 More Non- Total Average Interest than Years than 5 Interest Effective Rate 1 Years bearing Interest Year Rate
$000 $000 $000 $000 $000 $000 Financial Assets Cash assets 232 232 Restricted cash 5.07% 18 6,834 6,852 assets Receivables 130 130 18 7,196 7,214
Financial Liabilities Payables 45 45 Employee 320 320 entitlements 365 365
2004 Financial assets 4.75% 35 2,124 2,159 Financial liabilities (335) (335)
(b) Credit Risk Exposure All financial assets are unsecured
(c) Net Fair Values The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values, determined in accordance with the accounting policies disclosed in the financial statements.
Notes to the Financial Statements for the year ending 30 June 2005
Page 95 GSDC ANNUAL REPORT 2004 - 2005 Great Southern Development Commission Building partnerships for regional prosperity
34 The Impact of Adopting International Accounting Standards
The Great Southern Development Commission is adopting international accounting standards in compliance with AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards (IFRS).
AASB 1 requires an opening balance sheet as at I July 2004 and the re-statement of the financial statements for the reporting period to 30 June 2005 of the IFRS basis. These financial statements will be presented as comparatives in the first annual financial report prepared on an IFRS basis for the period ending 30 June 2006.
AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards (IFRS) requires financial reports for periods ending on or after 30 June 2004 to disclose:
1. How the transition to Australian equivalents to IFRS is being managed:
The Commission has had the 1 July 2004 IFRS opening Balance Sheet and accompanying notes reviewed by the Office of the Auditor General and is working towards a full set of Financial Statements under the IFRS.
2. Key differences in accounting policies that are expected to arise from adopting Australian equivalents to IFRS:
The Great Southern Development Commission has assessed the impact on the Commission as being minor.
The key difference is as per the reconciliation below with computer software being recognized as an intangible asset. There has been no identified impact on the Commission’s equity or on the Commission’s reported surplus or deficit.
30 June 2005
Previous Effect of Australian GAAP transition to Equivalents Australian to IFRS Equivalents to IFRS
Balance Sheet Adjustment
Property, plant and equipment 93,297 (4,673) 88,624 Intangibles 0 4,673 4,673 93,297 0 93,297
35 Rounding of Amounts
Amounts in the financial statements have been rounded to the nearest dollar.
Page 96 GSDC ANNUAL REPORT 2004 - 2005