2002 Annual Report Goldfields Esperance Development Commission Contents Page Statement of Compliance 2 Chairman’s Report 3 Overview 7 Map of the Goldfields-Esperance Region 11 Major Achievements in 2001-2002 12 Planned Initiatives for 2002-2003 14 Report on Significant Activities – 2001-2002 16 Organisational Structure 55 Board of Management 56 Staff 60 Administrative Services 62 Report on Equity, Access and Customer Focus 64 Reports on Other Accountability Issues 67 Goldfields-Esperance – a Productive Region 69 Certification of Performance Indicators 74 Key Performance Indicators 75 Certification of Financial Statements 77 Statement of Financial Performance 78 Statement of Financial Position 79 Statement of Cash Flows 80 Notes to the Financial Statements 81 Auditor General’s Opinion – Performance Indicators 97 Auditor General’s Opinion – Financial Statements 98 1 STATEMENT OF COMPLIANCE Hon Nick Griffiths LLB MLC Minister for Racing and Gaming; Government Enterprises; Goldfields-Esperance 10th Floor, 216 St George’s Terrace PERTH 6000 Dear Minister In accordance with Section 66 of the Financial Administration and Audit Act 1985, we submit for your information and presentation to Parliament the report of the Goldfields Esperance Development Commission for the year ended 30 June 2002. The Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985. Kath Finlayson Chairman Colin Purcell Chief Executive Officer 28 August 2002 2 CHAIRMAN’S REPORT You may say ‘Another Annual Report. Another Chairman’s Report’! If you choose to read no further it will be your loss as the document includes comprehensive material on the region and the Goldfields Esperance Development Commission. In a year that has seen unimaginable terrorism in America, we count ourselves fortunate indeed to be living in a country where the possibility of such insanity seems remote. In a region that welcomes people from different backgrounds to call this corner of Australia home. A highlight for me this year was the leading role GEDC took in marketing and co-ordinating the 2002 Year of the Outback. The first six months were a lonely journey until GEDC finally convinced the new State Government to fund the appointment of a Year of the Outback State Co-ordinator, with Barry O’Sullivan first employed by GEDC and subsequently by the Department of Local Government and Regional Development. As a Year of the Outback Ambassador I’ve had the privilege of seeing Australia’s Outback spirit celebrated in so many ways during the year. Schools in far-flung corners of the State are linking up with ‘city kids’, often through videoconferencing, email, and occasionally the mail, so (hopefully) breaking down that country/city divide that still so plagues this country in many ways. Kalgoorlie-Boulder is the largest city in the Australian Outback; our region is one of the major generators of the nation’s wealth – and thus a very appropriate place to nurture the 2002 Year of the Outback. The Golden Mile Trotting Club staged a successful Year of the Outback rodeo in June this year, and it was fantastic to see so many people enjoying the action. Like the inaugural Rhythms in the Outback Festival also staged this year, the rodeo hopefully will become an annual event. GEDC played a supporting role in the planning of these two inaugural events, similar to the role taken with St Barbara’s Festival a few years ago. These fun events do a great deal to enhance the social development of our communities. Some of GEDC’s activities and successes attract media attention, such as the development of the Australia Unlimited Heritage Trails; other ‘facilitation efforts’ are very much behind the scenes, but just as important and rewarding. During the year ten groups of young people from schools across the region, and the two Curtin University campuses, had the opportunity to participate in Young Achievement Australia’s unique brand of entrepreneurial education. They devised and manufactured novel products, and through this process developed business skills and understanding on an essential basic level. Again GEDC has played an important role, organising sponsorship and funding for this program. The Regional Economic Modelling project that the Commission embarked on during the year will offer untold benefits. This priority project will put essential ‘economic science’ into regional planning. The model that’s being developed will enable us to estimate the employment outcome of major developments and to gauge whether existing infrastructure will be adequate. During the year I represented GEDC on the Steering Committee of the Goldfields- Esperance Water Supply Strategy; the members included the CEOs of various State 3 Government agencies. The committee was interactive with five working groups that assessed key areas of the draft strategy. For many years I have been a strong advocate for a comprehensive water strategy for the region. I am also convinced that this must address the issue of a comprehensive, sustainable, cost-effective and viable State Water Strategy. The water situation in the Perth metropolitan area has highlighted the significance of strategic directions. The State Government will be hosting a series of public forums to encourage debate following the release of a draft document, ‘State Water Conservation Strategy’. At the time of writing, State Cabinet had not released the draft Goldfields-Esperance Water Strategy for public comment, or announced water forum dates for our region. The delay in the release of the document is creating uncertainty, and has the potential to undermine future economic development opportunities. The contents of the report, including options and costing data, are integral to the development of the Goldfields-Esperance region. The report must not become redundant before it sees the light of day. The saga continues with the lack of progress on the Outback Highway. Long time champion of the Outback Highway Patrick Hill retired from the GEDC Board in October 2001, but his passion for the development of this vital piece of Outback infrastructure lives on. How much lobbying has to be done, and how many ‘economic drivers’ have to be reiterated before Canberra realises the integral importance of the Outback Highway as part of our future heritage, wealth development and defence capability? Patrick and his Outback Highway Development Council colleagues are unlikely to take ‘no’ for an answer, and they’ll be badgering and lobbying the Federal Government until they get a positive response. It may take years, but I know they won’t give up. During the year we also farewelled GEDC’s former Deputy Chairman Dick Thorp and another ‘Esperance legend’, Ian Mickel. Ian retired due the need for him to devote more time to the restructuring of the WA Municipal Association that saw the inception of the WA Local Government Association. Both Ian and Dick made huge contributions to ‘the GEDC vision’ over many years and they deserve our thanks, and those of the region, for their tenacity and drive. Dick Scallan, whose links to the mining industry were invaluable to GEDC, also retired as a Board member during the year, but now seems busier that ever with a wide range of community organisations. His enthusiasm was infectious, so often urging us, in his words, ‘to turn a lemon into lemonade’, something he achieved many times. God bless, Dick. I was disappointed that criticism of GEDC’s performance and structure outlined by the Shire of Esperance earlier in 2002 was not presented to me or Colin Purcell as CEO. I received a copy of the discussion paper in my role as President of the Shire of Menzies – not as Chairman of GEDC. The paper was written in good faith but contained ill-informed material. We have since received enormous support from other Local Government Authorities and I now look forward to the future, and do not want to dwell on the past. 4 Richard Grant and the staff in GEDC’s Esperance office are outstanding in their work ethics and have achieved in many areas of social and economic development. I congratulate them on their professionalism and achievements. The Commission’s highest profile project during the year was the development of a series of Heritage Trails. The first to be launched will be the Golden Quest Discovery Trail, starting in Coolgardie and wending its way through the Northern Goldfields before finishing in Kalgoorlie. These trails, which are being developed with the strong support of local government authorities, have the potential to develop the region’s tourism and to offer enhanced small business opportunities. The project has brought together a wide range of stakeholders, and again demonstrated GEDC’s strategic vision as an organisation to create true cross-regional focus. The Heritage Trails project has been characterised by good planning, and significant funding has been secured. I look forward to March 28 2003 when the Golden Quest Discovery Trail will be officially launched. Infrastructure development will lead to opportunities. New businesses help to boost population, with families moving to the region. Families are entitled to equitable health care, and during the year GEDC liaised with health professionals and other stakeholders to convene the ‘Goldfields Medical Professionals Shortage Group’, with excellent results. It was good to hear the recent announcement of better public dental health services in the South East. Congratulations to Ross Ainsworth MLA who passionately pursued this aim. I’m personally concerned that the financial responsibility for attracting GPs to smaller centres in the region seems to be increasingly shouldered by Local Government, which can ill-afford this additional financial burden. Strategic directions are needed as to how best to provide medical services to smaller communities. As a nurse and a pastoralist these issues are a passion of mine. There cannot be inequity in the delivery of essential services to those who choose to live in the ‘bush’.