ANNUAL REPORT 2012–13 Department of Trade and Investment, Regional Infrastructure and Services 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 Department of Trade & Investment, Regional Infrastructure & Services Annual Report 2012–13 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 2012–13 Annual Report of the New South Wales Department of Trade and Investment, Regional Infrastructure and Services, for tabling in Parliament. The document reports on the achievements for the past year against the outcomes articulated in the Department’s Strategic Plan 2012–15. 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. I also thank the senior management team for the leadership and direction they have provided throughout the year. Yours sincerely Mark I Paterson AO Director General NSW Trade & Investment Level 49 MLC Centre, 19 Martin Place, Sydney NSW 2000 Australia, GPO Box 5477 Sydney NSW 2001 Australia Tel: +612 9338 6600 Fax: +612 9338 6860 www.trade.nsw.gov.au ABN: 72 189 919 072 CONTENTS Director General’s Report 2 NSW Trade & Investment 5 NSW Trade & Investment Organisational Structure 7 Our Results 8 Financial overview 2012–13 10 NSW Trade & Investment Operations 12 NSW Department of Primary Industries 13 Industry, Innovation, Hospitality & the Arts Division 35 Resources & Energy Division 61 Finance, Strategy & Operations Division 75 Office of Coal Seam Gas 81 Areas Independent of Divisional Structure 83 Appendices 88 Financial Statements for the year ended 30 June 2013 164 Index 234 Access and business hours Inside back cover © State of New South Wales through Department of Trade and Investment, Regional Infrastructure and Services 2013. ISSN 1833-2080 CONTENTS | 1 DIRECTOR GENERAL’S REPORT The year to 30 June 2013 was a period of substantial policy The framework represents a new focus on capability achievement for NSW Trade & Investment. The department building, innovation and collaboration across the NSW continued to lead or co-lead the delivery of six goals in economy. It aims to make it easier to do business in New the Government’s NSW 2021 – A Plan to Make NSW Number South Wales and to position industry for long-term global One (NSW 2021). These goals included improving the competitiveness through innovation and productivity. The performance of the NSW economy and driving economic framework is built on five key principles: demonstrating growth in regional New South Wales. They also included leadership, making it easier to do business, collaborating to enhancing cultural, creative, sporting and recreation drive innovation and competitiveness, investing in critical opportunities. infrastructure, and raising the global profile of Sydney and The NSW Trade & Investment Strategic Plan 2012–2015 reflects New South Wales. the department’s responsibilities under NSW 2021. The Another key part of the department’s economic plan articulates the department’s vision and values, key development work was the release of the NSW International results and intended outcomes, together with strategies Engagement Strategy in April 2013. This strategy is the to achieve those outcomes. The plan assisted NSW Trade State’s first whole-of-government approach to growing & Investment in supporting the NSW economy’s growth the international trade and investment activities in New during 2012–13. South Wales. The strategy identifies the State’s top ten During the year, we developed and delivered a number of trade and investment partners. It also includes actions high profile, high impact initiatives that will make a positive to better promote NSW capabilities, attract investment, difference to the lives of the people of New South Wales. facilitate exports, strengthen international relationships and I am immensely proud of the efforts of the department’s coordinate Government efforts in these top ten markets. staff throughout the year that helped make this possible. The priority markets are Japan, the United States of America, China, the United Kingdom, India, Malaysia, Industry, innovation and investment the United Arab Emirates, South Korea, Singapore and In 2012–13 the department helped to deliver a range Indonesia. Priority sectors identified for each market include: of investment and export projects for New South Wales. professional services, construction/infrastructure, advanced These projects are forecast to deliver $1.7 billion of new manufacturing, education and research, information and investment and export sales and over 3700 jobs over the communication technology, clean technology, mining, next three years. agribusiness and tourism. Work also continued on a number of Industry Action Plans As part of the NSW Economic Development Framework, the to position key NSW industry sectors for future success. department established Innovate NSW, a new program The department supported industry-led taskforces in the aimed at helping NSW research agencies, industry and small development of these plans. Ten-year plans were delivered businesses work together. This program is intended to help during the year for six industry sectors: the digital economy; develop new strengths in areas such as e-health, energy manufacturing; international education and research; technology and services, online and interactive education, professional services; creative industries; and the visitor advanced manufacturing, and transport, infrastructure and economy. logistics. During 2012–13 NSW Trade & Investment helped to To drive economic growth in regional New South Wales, prepare Government responses to all of these plans. the department also continued to implement the While undertaking this work, we identified a number of Government’s Decade of Decentralisation policy. The policy broad guiding principles common to each Industry Action is aimed at supporting the development of regional Plan. The department used these principles to develop economies and communities. Key initiatives under the A Platform for Growth: the NSW Economic Development Decade of Decentralisation policy include the Regional Framework. This framework will now guide implementation Relocation Grant, Jobs Action Plan (regional component), of the various Industry Action Plan recommendations. Restart NSW (regional component), Resources for Regions, The framework identifies 40 priority actions that will be and the decentralisation of Government agencies. reviewed annually at a Business Leadership Forum. The first The decentralisation of agencies is also designed to forum was held in September 2013. transfer knowledge and skills to support the economic 2 | NSW TRADE & INVESTMENT ANNUAL REPORT 2012–13 development of non-CBD locations in Greater Sydney and The Act puts local decision making and priority setting regional New South Wales. at the centre of the new LLS. The Act makes New South Wales the only state in which publicly-funded biosecurity, Hospitality and the arts natural resources management and agricultural advisory During the year, the department’s Screen NSW supported services are provided by a single entity. LLS organisations more than 28 projects under the Production Finance Fund are expected to be operational across 11 regions in January and the Regional Filming Fund. Projects supported included 2014. the production of The Sapphires. These projects leveraged 2012–13 also saw NSW Trade & Investment involvement in more than $100 million in production expenditure in New reviews of the marine parks estate and the management South Wales and supported the creation of more than 4950 of Crown land. The department also implemented jobs. Government-initiated reforms to commercial fisheries, and Significant progress was made during the year on the Walsh to the management of cemeteries and crematoria. Bay Arts Precinct redevelopment, including confirming the Sydney Theatre Company as a long-term tenant. Resources and energy Ongoing planning and design work for the redevelopment During the year, NSW Trade & Investment approved ten of the precinct included community consultation and new major coal and mineral development proposals. These the completion of a final business case to support the proposals collectively involve more than $1.7 billion in new redevelopment is underway. capital investment in regional New South Wales with the In 2012–13 NSW Trade & Investment helped the potential to create over 1250 new jobs. Government to assess licence arrangements for totalizator The department continued to work during the year services. The department worked closely with other on measures to enable uranium exploration in New Government agencies during the year to determine which South Wales. Exploration is intended to help gain an market options would deliver the best value for money understanding of what resources may exist in the State. to the Government and the people of New South Wales. Amendments to the Mining Act 1992 were proclaimed in NSW Trade & Investment helped the Government secure September 2012 to enable this exploration. During the year, $75 million from TAB Limited for a 20-year extension of NSW Trade & Investment coordinated a process to seek exclusivity for off-course