ANNUAL REPORT 2011–12 Department of Trade and Investment, Regional Infrastructure and Services 31 October 2012 The Hon Andrew Stoner, MP Deputy Premier Minister for Trade and Investment Minister for Regional Infrastructure and Services Parliament House Macquarie Street SYDNEY NSW 2000 Dear Deputy Premier In accordance with the Annual Reports (Departments) Act 1985, the Public Finance and Audit Act 1983, and the Regulations under these Acts, I am pleased to submit to you as the Department’s co-ordinating Minister, the 2011–12 Annual Report of the New South Wales Department of Trade and Investment, Regional Infrastructure and Services (NSW Trade & Investment) for presentation to Parliament. The document reports on the achievements for the past year against the Department’s Strategic Plan 2012–15 outcomes. These achievements were made possible by the willingness and commitment of staff and I would like to take this opportunity to thank them for their dedication and hard work, as well as the leadership and direction provided by the Divisional heads throughout the year. The report also includes a summary of the major achievements of the Department’s statutory agencies. These agencies will also be submitting their own Annual Reports as required under the Act. Yours sincerely Mark I Paterson AO Director General CONTENTS Director General’s Report 2 NSW Trade & Investment 6 Organisational structure 7 Our results 8 Financial overview 2011–12 10 NSW Trade & Investment Operations 12 NSW Department of Primary Industries 13 Industry, Innovation and Investment Division 37 Resources and Energy Division 55 Finance, Strategy & Operations Division 70 Strategic Policy & Economics Division 76 Areas Independent of Divisional Structure 82 NSW Trade & Investment Statutory Agencies 86 Forests NSW 87 NSW Food Authority 87 NSW Rural Assistance Authority 88 Game Council of NSW 89 Screen NSW 89 Destination NSW 90 State Library of NSW 90 Sydney Opera House 91 Art Gallery of NSW 91 Australian Museum 92 Museum of Applied Arts and Sciences 92 Responsible Gambling Fund 93 Independent Liquor and Gaming Authority 93 Catchment Management Authorities 94 Appendices 99 Financial statements 2011–12 185 Index 256 Access and business hours Inside back cover © State of New South Wales through Department of Trade and Investment, Regional Infrastructure and Services 2012. ISSN 1833-2080 NSW TRADE & INVESTMENT ANNUAL REPORT 2011–12 CONTENTS 1 DIRECTOR GENERAL’S REPORT In the year to 30 June 2012, the Department of Trade and ● international trade and investment missions during which Investment, Regional Infrastructure and Services (NSW Trade over $50 million in commercial outcomes and over $18 & Investment) continued to support sustainable economic million in bilateral education, research and development growth in New South Wales (NSW). We have the lead outcomes were announced, and responsibility for work towards achieving the following goals ● an annual program of missions and exhibitions to assist in the Government’s NSW 2021 – A Plan to Make NSW Number NSW businesses seeking to compete internationally, One (NSW 2021): including flagship events such as G’Day USA and CeBIT ● improving the performance of the NSW economy, Australia. ● driving economic growth in regional NSW, NSW Trade & Investment offices in Guangzhou, Shanghai, ● increasing the competitiveness of doing business in NSW, Mumbai and Abu Dhabi continued to identify opportunities for NSW. Our fifth overseas office opened on 1 June 2012 in ● securing potable water supplies, and San Francisco. ● enhancing cultural, creative, sporting and recreation During the year, the NSW Innovation and Productivity Council opportunities. advised on which industry sectors should be selected for We are also co-leading work for the NSW 2021 goal aimed at Industry Action Plans, targeting sectors exhibiting high increasing opportunities for people to look after their own performance, high Asian market export growth potential and neighbourhoods and environments. strong productivity-enabling characteristics. The department’s 2011–12 annual report looks at the Draft Industry Action Plans for four key industry sectors – achievements made by the organisation during the year to professional services, the digital economy, international drive sustainable economic development in the State. Some education and research, and manufacturing – were highlights are set out below. The detailed review of NSW developed by high-level industry-led taskforces, with industry Trade & Investment’s operations is set out on a divisional and stakeholder consultation. The draft plans include basis later in the annual report. recommendations for industry and government in areas Industry, innovation and investment such as microeconomic reform, innovation and developing centres of excellence. The final plans will be considered by The department worked during the year with NSW government towards the end of 2012. businesses, international corporations and government agencies to promote the State’s capabilities in priority sectors, A fifth taskforce was established in June 2012 to develop a attract and facilitate investment in NSW and support NSW plan for the creative industries. Work by the Visitor Economy exporters seeking to expand internationally. Taskforce, established under NSW 2021, will lead to the development of a plan for the visitor economy in 2012–13 to Despite a challenging international economic environment, grow tourism and double visitor expenditure by 2020. the department attracted investment to NSW across a range of industries, including renewable energy, manufacturing, During the year, the department established two new high- defence, financial services, and screen and media. level advisory bodies created to add impetus to investment attraction and trade promotion. The Export and Investment We worked to ensure investments by global clean energy Advisory Board works to help increase the international companies in NSW, supported the establishment in NSW competitiveness of NSW industry, to promote investment of Australia’s two largest solar projects, helped to win the into NSW and to encourage growth in NSW business activity Australian Government tender to establish the Centre for in overseas markets. The second board established this year, International Finance and Regulation in Sydney and provided the Multicultural Business Advisory Panel, harnesses the support to major global corporations seeking innovative State’s cultural diversity to strengthen trade and investment infrastructure investment opportunities in NSW. between NSW and priority markets, particularly in the Asia- Highlights during the year included: Pacific region. ● investment and export projects forecast to deliver $1.8 The department developed a comprehensive business billion of new investment and export sales and over 5600 migration strategy for NSW, the NSW strategy for business jobs over the next five years, migration & attracting international students: Supporting the State’s economic development. The strategy focuses on skilled and business migration, investor migration, and international 2 DIRECTOR GENERAL’S REPORT NSW TRADE & INVESTMENT ANNUAL REPORT 2011 –12 education, and aims to boost the State’s share of the skilled Arts NSW signed a Memorandum of Understanding with and business migrant intake. Ageing, Disability and Home Care (ADHC), part of the NSW Significant achievements in advancing regional development Department of Family and Community Services, for a $1.5 included the establishment with the Federal Government million two year NSW Arts and Disability Partnership. The and BlueScope Steel of a $30 million Illawarra Region partnership is funded by ADHC under its Stronger Together Innovation and Investment Fund to support innovative job Two disability service plan and is administered by Arts NSW. creation in the region. Funding of regional capacity-building The partnership is increasing opportunities for people with projects from the Regional Industries Investment Fund a disability to participate in arts and cultural activities and to supported the creation of 2857 new jobs and retention of live creative lives. 346 existing jobs in places such as Whitton, Young, Somersby Through the Office of Liquor, Gaming and Racing the and Broken Hill. department continued to develop the effectiveness and This year, the government appointed the State’s first Small efficiency of regulation of the liquor, gaming, racing and Business Commissioner. Following a review of existing charity sectors. The ‘Three Strikes and You’re Out’ initiative was programs for small business, new initiatives were introduced, introduced on 1 January 2012, targeting problem liquor- including the Small Biz Connect program which aims to licensed premises with the aim of reducing alcohol-related deliver comprehensive support and advisory services for violence and anti-social behaviour and improving venue small businesses across NSW. operation and management. The first NSW Cross-Border Commissioner was appointed The department also implemented a new ClubGRANTS in February 2012. The Commissioner will provide advocacy scheme from 1 September 2011 that provides gaming for businesses, organisations and residents in border machine tax rebates to registered clubs where they spend an communities, review existing cross-border governance equivalent amount on approved community development and management arrangements, and develop strategies to and support. The department also implemented reforms to optimise the delivery