SERVING OUR COMMUNITIES Annual report 2015–16 14 September 2016 The Honourable Curtis Pitt MP The Honourable Mark Bailey MP Treasurer Minister for Main Roads, Road Safety and Ports Minister for Aboriginal and Torres Strait Islander Partnerships Minister for Energy, Biofuels and Water Supply Minister for Sport Level 15, Capital Hill, 85 George Street Level 9, Executive Building, 100 George Street BRISBANE QLD 4000 BRISBANE QLD 4000 Dear Ministers I am pleased to present the Annual Report 2015–16 and financial statements for the Queensland Bulk Water Supply Authority, trading as Seqwater. The report details the non-financial and financial performance of Seqwater from 1 July 2015 to 30 June 2016. I certify that this Annual Report complies with: • the prescribed requirements of the Financial Accountability Act 2009 and the Financial Performance Management Standard 2009, and • the detailed requirements contained in the Annual report requirements for Queensland Government agencies. A checklist outlining the annual reporting requirements with page references is included in this report. Yours sincerely Mr Dan Hunt Chairman 1 Seqwater | Annual Report 2015–16 About this report This Annual Report records our achievements in delivering Translation and interpreting assistance a safe, secure and cost-effective water supply to the people of South East Queensland in 2015–16. Our performance is Seqwater is committed to providing measured against the objectives and targets in our Operational accessible services to Queenslanders Plan 2015–16 and the Statement of Obligations set by our from all culturally and linguistically responsible Ministers. The report also describes our financial diverse backgrounds. If you have difficulty position for the year. understanding this Annual Report please contact us and we will arrange an Our report theme, Serving our communities, reflects our efforts interpreter to share the report with you. this year to achieve community benefits in everything we do and help our communities understand the bulk water supply Your feedback is welcome system from catchment to tap, as well as the assets, issues and events that influence water quality, demand, supply and We invite your feedback on our report. Please contact our access. Corporate and Community Relations team, telephone 1800 771 497, fax 3229 7926, This report is a key accountability document and the principal email [email protected] or complete our way in which we report on our activities to Parliament and the survey at seqwater.com.au South East Queensland (SEQ) community. The report has been produced in accordance with the standards detailed in the Seqwater Annual Report 2015–16 following Queensland legislation and Government guidelines: ISSN: 1837-4549 © Queensland Bulk Water Supply Authority 2016. • Financial Accountability Act 2009 • Financial Performance Management Standard 2009 • South East Queensland Water (Restructuring) Act 2007 • Annual report requirements for Queensland Government agencies – requirements for the 2015–16 reporting period. The report is available on our website. A printed copy of the report is available on request. On the cover Pictured on the cover are Brett, Senior Dam Operator and Brodie, our Cultural Heritage Officer. They are pictured at Enoggera Dam, which celebrates its 150th anniversary this year. Every day, they are part of the team that serves our communities. Brett makes sure our dams are operating as they should to provide a safe and secure water supply. Brodie protects and preserves the cultural heritage found within our sites. Seqwater | Annual Report 2015–16 2 Table of contents About this report.............................................................2 Table of contents.............................................................3 Who we are and what we do.........................................4 Our strategic direction....................................................7 Foreword from our Chairman and CEO........................... 9 Highlights of our year..................................................... 12 Our Water Grid............................................................... 13 Performance report card................................................. 15 Skilled and committed workforce...................................21 Knowledgeable and engaged communities................... 25 Trusted and respected partner........................................ 29 Optimised water and catchment services...................... 31 Sustainable financial performance.................................35 Corporate governance.................................................... 39 Our organisational structure...........................................46 Economic and financial performance............................. 49 Financial report.............................................................. 51 Glossary.......................................................................... 110 Checklist......................................................................... 111 3 Seqwater | Annual Report 2015–16 Who we are and what we do Seqwater is the Queensland Government statutory authority We strive to balance catchment health with the quality of the responsible for producing bulk drinking water for 3.1 million region’s drinking water while providing community access to a people across South East Queensland. We provide irrigation range of water-based and onshore activities at our dams, lakes water to 1,200 rural customers in seven water supply schemes, and parks. as well as essential flood mitigation services. Seqwater was formed on 1 January 2013 through a merger Our operations extend from the New South Wales border to of three State-owned water businesses, the SEQ Water Grid the base of the Toowoomba ranges and north to Gympie. This Manager, LinkWater and the former Seqwater, in accordance makes us one of Australia’s largest water businesses, with with the South East Queensland Water (Restructuring) Act the most geographically spread and diverse asset base of any 2007 as amended by the South East Queensland Water capital city water authority. (Restructuring) and Other Legislation Amendment Regulation (No.1) 2012. On behalf of our communities, we manage and maintain $12 billion of water supply assets, including dams, weirs, At the same time, Seqwater assumed some responsibilities conventional water treatment plants, reservoirs, pumps and undertaken by the former Queensland Water Commission, pipelines, as well as climate resilient water sources, such as including long term urban water planning. On 6 July 2015, we the Gold Coast Desalination Plant and the Western Corridor published our Water Security Program–a 30-year plan for SEQ’s Recycled Water Scheme. drinking water supply. During 2015–16, more than 2.6 million people visited our recreation areas. We are one of the few bulk water providers in Australia that manage open catchments, allowing the public to enjoy recreational activities on and around the dams and lakes that supply our drinking water. Our recreation areas provide more than 50% of the green space in South East Queensland, outside of national parks. We also manage parts of the natural catchments of the region’s water supply sources. Seqwater | Annual Report 2015–16 4 Our role in the water sector Water is essential for life. At Seqwater, it’s our job to produce Flood mitigation occurs when the floodwater released through water for communities across South East Queensland. We live the gates is less than the rate flowing into the dam from and work in the communities we serve, and our team is proud rainfall and catchment run-off. Wivenhoe and Somerset can to deliver Water for life. temporarily store floodwater, causing the water level in the dam to rise above the normal drinking water supply level. This As the region’s bulk water supply authority, our role is to water must be released to bring the dam back to its drinking source, store and supply water from catchments and other water supply level again. sources. Our other 23 dams are un-gated. These dams have a spillway We work in partnership with Unitywater, Queensland Urban that is lower than the top of the dam embankment so water Utilities, and the water businesses of the Redland, Logan and can safely flow out of the dam and downstream. We cannot City of Gold Coast councils, to deliver value for customers. control water flows through our un-gated dams. Source Supply Rain that falls in the catchments is our primary source of Our source water must be treated to make it safe to drink. We drinking water. The health of the catchments directly impacts have 37 conventional water treatment plants (WTP), the the treatment required to supply safe drinking water to our Gold Coast Desalination Plant and the Western Corridor communities. Recycled Water Scheme (WCRWS) to treat water. To move water around and supply it to our water service provider We work to meet the needs of the communities who live, work partners, we maintain 646 kilometres of trunk mains, including and play in the water source catchments while protecting the 223 kilometres of WCRWS pipelines and 183 kilometres of raw quality of the region’s bulk drinking water supply. water pipelines. There are also 22 bulk water pump stations Healthy catchments are essential for a productive and liveable and 17 bulk water reservoirs in our network. South East Queensland. We aim to be a good neighbour and Our dams, water treatment plants, reservoirs and pipelines we partner with individuals, community groups and