OVERVIEW
Agency
Department of Land and Water Conservation
Total Expenses ...................................................
Asset Acquisitions ...............................................
Department of Fair Trading
Total Expenses ...................................................
Asset Acquisitions ...............................................
Luna Park Reserve Trust
Total Expenses ...................................................
Asset Acquisitions ...............................................
Rental Bond Board
Total Expenses ...................................................
Asset Acquisitions ...............................................
Total, Minister for Land and Water
Conservation and Minister for Fair Trading
Total Expenses ...................................................
Asset Acquisitions ...............................................
Budget
2001-02
$m
556.2
36.2
717.4
43.6
135.7
7.4
1.1
…
24.4
…
Budget
2002-03
$m
721.4
54.4
Variation
%
558.7
47.6
134.5
6.8
0.8
…
27.4
…
0.4
31.4
- 0.9
- 7.1
- 25.2
…
12.4
…
0.6
24.8
DEPARTMENT OF LAND AND WATER CONSERVATION
The Department of Land and Water Conservation is the State’s primary land, vegetation and water manager. The Department’s mission is to work with local communities, other state and local governments and the Commonwealth to achieve a balanced mix of social, economic and environmental outcomes in the management of natural resources across large area landscapes.
E XPENDITURE T RENDS AND R ECENT D EVELOPMENTS
The Department’s expenditure in recent years has included significant funding enhancements to develop and implement major reform priorities in water, salinity and vegetation management.
Budget Estimates 2002-03 11 - 1

Recent major developments include:
 progressive operational implementation of the Water Management Act, 2000 as part of the Government’s water reform initiatives;
 development of an integrated framework for salinity management in
New South Wales, with the Department of Land and Water Conservation having the lead agency role for salinity programs;
 release of draft Catchment Blueprints for public consultation. The draft
Blueprints are a strategic plan for natural resource management for each of
New South Wales’ catchments;
 introduction of the Environmental Services Credits Scheme linking the value of environmental services to economic decision making and rural production; and
 greater certainty of outcome for developers and appropriate environmental safeguards have emerged as a result of the Plantations and Reafforestation
Act 1999 .
S TRATEGIC D IRECTIONS
The role of the Department, as a leader in natural resource management, is to support and facilitate the sustainable use of the State’s limited, and sometimes fragile, natural resources. The Department, in collaboration with the community, achieves an acceptable balance across the competing demands for those resources.
Broad strategies to deliver this approach are:
 the use of catchment-wide planning and targets that provide for the adaptive management of natural resources across the landscape;
 development of markets and investment strategies that encourage public and private participation in activities producing environmental benefits;
 effective regulatory frameworks to ensure the protection and productivity of natural resources;
 enhanced information and scientific knowledge that supports effective decision making; and
 innovative advice and services that are client and outcome focussed.
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2002-03 B UDGET
Total expenses in 2002-03 are estimated at $558.7 million.
Major expenditures include:

$56.4 million to meet commitments to deliver backlog water supply and sewerage projects in country towns. A further $20 million of expenditure was brought forward into 2001-02 in order to accelerate the program. This will result in an average yearly expenditure of $72.4 million over the two years to
2002-03.

$42.8 million for Natural Heritage Trust programs administered by the
Department;
 $21.7 million as New South Wales’ contribution to the operating costs and works program of the Murray Darling Basin Commission;

$16.1 million contribution to the Irrigation Areas and Districts;

$16.8 million for works including the implementation of Land and
Water Management Plans;
 $13.9 million as the State’s contribution towards floodplain management, including $2 million (as part of a two-year, $4 million commitment) to expedite the construction of a levee bank at Lismore;

$13 million to meet implementation costs associated with the
Water Management Act 2000 (part of a total $64.7 million program over four years, spread across several agencies);
 $12.8 million as the State’s contribution towards local government programs in estuary, coastal and waterways management;

$11.7 million in funding towards the implementation of the New South Wales
Salinity Strategy as part of a total $52 million program over four years, spread across several agencies. Expenditure on the Salinity Strategy is recognised as part of New South Wales’ contribution to the National Action Plan on
Salinity and Water Quality. The Plan which is scheduled for completion in
June 2007 will provide $396 million as a joint State/Commonwealth contribution to address New South Wales’ most pressing salinity and water quality problems.
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
$3 million, as part of $12 million over four years, to map native vegetation in
New South Wales;
 $2.5 million as the State’s contribution towards a program to cap and pipe bores;

$2.5 million for incentive payments under the Native Vegetation Management
Fund; and

$1.3 million, as part of an additional $3.9 million over three years, for the remediation of Lake Macquarie and the employment of a Lake Coordinator.
Total asset acquisitions in 2002-03 are estimated at $47.6 million. Major acquisitions include:

$10.4 million for building works at Dubbo, Wellington, Bridge St Sydney and at various dams;

$5.2 million for flood security and upgrade works at Chaffey, Glenbawn,
Burrendong, Copeton and Keepit dams;

$5 million to rehabilitate river structures;

$5 million to undertake periodic maintenance programs at major storages;

$2.9 million for Macquarie River re-regulation capability;

$2.6 million for upgrade works at Blowering, Chaffey and Wyangala Dams;

$1.9 million for works at Wellington, Bethungra and Wyangala Dams; and
 substantial funding on electronic information systems:

$1.8 million towards the Water Information System being developed at a total cost of $4.9 million;

$2.6 million towards eCommerce based initiatives and business systems being developed by the Department;
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
$1.0 million towards further development of the multi-agency program to provide Community Access to Natural Resources Information (CANRI); and

$1.5 million towards the development of a Total Asset Management Plan for water infrastructure.
DEPARTMENT OF FAIR TRADING
The Department of Fair Trading provides a wide range of services to consumers and traders. These services cover business name registrations and licensing information, advice on home building, strata scheme administration and advice, and information on general consumer matters through Fair Trading Centres, as well as investigations and compliance activities.
Other services provided by Fair Trading Centres include information on the rights and obligations of landlords and tenants, and on encumbrances on motor vehicles and boats.
The Department also administers the formation and regulation of co-operatives, and provides trade measurement and technical services. The portfolio incorporates the Consumer, Trader and Tenancy Tribunal.
In 2002-03, the Department expects to provide advice to the public on over
2 million matters. This is in response to an estimated:

785,000 fair trading enquiries;

1,160,000 Register of Encumbered Vehicles database enquiries;

166,000 business names enquiries; and

120,000 traders licensing enquiries.
E XPENDITURE T RENDS AND R ECENT D EVELOPMENTS
Total expenses for 2002-03 are estimated to be $134.5 million compared to a forecast $135.9 million in 2001-02. The fall in expenses is mainly due to a reduction from $12 million to $10 million in the grant paid to the Fair Trading
Administration Corporation. The grant is provided to meet the deficit associated with the previous Statutory Insurance Scheme for residential building works that closed on 30 April 1997. Future liabilities of the Scheme are expected to decline.
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S TRATEGIC D IRECTIONS
The strategic intent of the Department of Fair Trading is for New South Wales to be recognised for value and fairness in the marketplace. The Department’s key corporate objectives are to:
 develop and maintain a policy framework which provides appropriate safeguards for consumers while minimising restrictions on business and traders;
 encourage maximum compliance with regulatory requirements (through information and education for consumers and traders, compliance monitoring and enforcement, complaint handling and dispute resolution, and licensing, registration and certification); and
 use public resources accountably and ensure operations are economical, efficient and customer-focused.
2002-03 B
UDGET
Total expenses for 2002-03 are estimated at $134.5 million. Significant allocations include:

$22.3 million to fund the operations of the Consumer, Trader and Tenancy
Tribunal;

$14.5 million for the operation of the licensing and registration areas that license builders, real estate agents, valuers, conveyancers and private employment agents and the registration of business names, co-operatives, associations and co-operative housing societies;

$14.3 million to detect and ultimately decrease unfair practices in the marketplace through the investigation of illegal conduct which leads to prosecutions; and

$28 million for costs related to the Fair Trading Centres in the city and regional areas, the Registry of Encumbered Vehicles (REVS) and community education programs.
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The Department’s 2002-03 asset acquisition program of $6.84 million provides for:
 implementation of a managed network infrastructure to increase Local Area
Network (LAN)/Wide Area Network (WAN) performance ($1.6 million);
 upgrade of essential business application infrastructures ($292,000);
 expansion of the Department’s Internet/Intranet system ($317,000);
 upgrade of the Department’s Customer Assistance System ($411,000);
 integration of Desktop Personal Computers with the Department’s Network
Operating System ($419,000);
 implementation of an Intelligence Analysis System (NETMAP) ($500,000);
 acquisition of a Natural Language Speech Recognition Interactive Voice
Response System for the Department’s Register of Encumbered Vehicles Call
Centre ($547,000);
 migration of Co-operative Housing Society information onto the
Department’s computer network ($247,000); and
 replacement of minor plant and equipment ($2.5 million).
LUNA PARK RESERVE TRUST
The role of the Luna Park Reserve Trust is to manage the land and other assets of
Luna Park Reserve.
E XPENDITURE T RENDS AND R ECENT D EVELOPMENTS
In February 2001, the Minister for Land and Water Conservation appointed the
Sydney Harbour Foreshore Authority (SHFA) to manage the affairs of the
Luna Park Reserve Trust. The Trust’s expenditure has historically been for administration, legal and consultancy fees.
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Future expenditure will be driven by the Trustee’s role in managing contractual arrangements with the long term operator of Luna Park, Metro Edgley Pty
Limited. Metro Edgley presently occupies and operates the site under a license from the Trust. Future expenditure will also include the maintenance of heritage infrastructure on the site from the Heritage Infrastructure Fund.
S TRATEGIC D IRECTIONS
Metro Edgley has prepared a Development Application for the Luna Park site which received conditional approval from the Minister for Planning in
January 2002. The developer is to advise shortly if it can secure required approvals and finance in order to proceed with the proposed development.
Should the development proceed, the Trust will accrue a percentage of revenue achieved by the developer with contributions to the Heritage Infrastructure Fund, which will be used to maintain the heritage assets of the site. Should the development not proceed, SHFA will consider other options available for the operation of the park.
2002-03 B
UDGET
The level of expenditure for administering the Trust is expected to decrease to
$0.8 million in 2002-03, as the expenditure will be administrative costs only.
On the assumption that the proposed development from Metro Edgely proceeds, no capital expenditure is envisaged.
RENTAL BOND BOARD
The Rental Bond Board is a statutory corporation, established under the Landlord and Tenant (Rental Bonds) Act 1977 , and is the custodian of rental bonds taken on private residential tenancies in New South Wales. It comprises five members, one of whom is the Director-General of the Department of Fair Trading.
The Department of Fair Trading undertakes the administrative functions of the
Board on a user charge basis.
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E XPENDITURE T RENDS AND R ECENT D EVELOPMENTS
The Board is a self-funding body, and derives its income from interest earned on rental bond deposits and accumulated funds. In 2002-03, rental bond deposits are estimated to be $495 million, which should generate approximately $30.6 million of revenue.
As well as the cost of bond administration, the Board funds 50 percent of the operating expenses of the Residential Tribunal and the Tenants Advice and
Advocacy Program and all the costs of Tenancy Services. These programs and services are administered by the Department of Fair Trading.
2002-03 B UDGET
Total expenses are estimated at $27.4 million in 2002-03, representing an increase of 12.4 per cent over the 2001-02 Budget and include:

$7.5 million contribution to the Consumer, Trader and Tenancy Tribunal;

$4.8 million to meet the operating costs of Tenancy Services;

$3.5 million in grants including Tenants Advice and Advocacy Program; and

$1.3 million to meet operating costs of the Strata and Mediation Services.
The increase in expenditure mainly reflects increased costs flowing from the regionalisation of the Consumer Trader and Tenancy Tribunal (formerly the
Residential Tribunal and Fair Trading Tribunal) of $2 million per annum and an increase of $500,000 per annum to fund an expanded Tenancy Advice and
Advocacy Program.
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