Letter to the Ministers
Dear Ministers
In accordance with the Financial Management Act 1994, I am pleased to present the Department of Primary Industries’ Annual Report for the
year ending 30 Jun 2013.
Yours sincerely
Adam Fennessy
Secretary
Department of Environment and Primary Industries
Contents
Letter to the Ministers
1
Secretary’s message
2
Our department
3
Ministers
Executive
Our governance structure
Risk attestation statement
Insurance attestation statement
About us
Our functions and services
Our strategic direction
3
5
6
7
8
9
10
13
Agriculture
14
Dairy
Grains
Horticulture
Red meat
Biosecurity
Natural Disasters
Fisheries
16
19
21
23
26
28
29
Game
33
Forestry
35
Earth Resources
37
Energy
40
Corporate and Business Management
44
Financial review
45
People and culture
48
Organisational Capability
Workplace health and safety
Comparative workforce data
Executive officer data
Environmental performance
Output performance measures
48
50
54
55
58
64
Legislative and other information
70
Appendix 1 - Disclosure index
86
Appendix 2 - Budget Portfolio Outcomes
88
Appendix 3 - Ministerial Statements of Expectation 95
Financial Statements
103
Accountable Officer’s and Chief Finance Officer’s declaration
Auditor General’s report
Comprehensive operating statement
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
105
106
108
109
110
111
112
Secretary’s message
The 2012-13 Annual Report records a year of change, milestones and outstanding achievement in providing services to Victorians.
The most significant change, announced by the Premier of Victoria on 9 April 2013, was the merger of the Department of Primary Industries (DPI) and
the Department of Sustainability and Environment to form the Department of Environment and Primary Industries (DEPI) and the transfer of
DPI’s energy and resources portfolio to the Department of State Development and Business Innovation.
The changes strengthen the government’s focus on jobs, investment and more effective delivery of regional services. Positioning environment
and agricultural services together in one department allows us to deliver better and more efficient environmental management and agricultural
support and provide a ‘one-stop shop’ approach across private and public land and water.
The focus of the new department is on boosting productivity in Victoria’s world class food and fibre sector, managing our natural resources,
protecting the environment and responding to fire, flood and biosecurity emergencies.
After being appointed Secretary of DEPI on 15 April, my first priority was to established a transition taskforce to ensure that the new department
was ‘open for business’ on 1 July 2013. Following an intensive direction-setting process, DEPI’s new structure was announced in late April.
Deputy Secretaries corresponding to each of the six new functional groups were appointed in early May.
The new executive team worked together to organise the department into six regions across Victoria, to better align and scale operations to
government objectives.
Local decision-making and service delivery are key features of the new model, which is designed to create value across the department’s
functions, ensure flexibility and community focus, and deliver on-ground results across Victoria’s landscape and food and fibre industries. In the
coming year, we will continue to improve our responsiveness to opportunities and regional needs, as we work through government priorities,
develop new programs and form new partnerships.
In 2012-13, DPI continued to implement the Victorian Government’s Growing Food and Fibre initiative, which has allocated significant additional
resources into key agricultural industries. A total investment of $61.4 million over four years, with an additional $15.7 million allocated annually on
an ongoing basis, places Victoria at the forefront of agricultural research and development. Major projects receiving support through Growing
Food and Fibre included the new National Plant Genetic Resource centre at Horsham, the Red Meat Innovation Centre at Hamilton, and highly
promising research into genetic improvements and more efficient feeding systems in dairy cattle.
A significant achievement in the agriculture sector was the opening of Victoria’s new $288 million Centre for AgriBiosciences (AgriBio) in April
2013. A joint venture between DPI and La Trobe University, AgriBio is Australia’s only integrated agriculture biosciences research centre and has
been specifically designed to enhance collaboration between scientists on issues of local, national and international importance. Approximately
400 world-leading scientists work at the centre on a range of projects that will benefit the Victorian food and fibre industry.
DPI’s support of Minister Walsh (Agriculture and Food Security) and Minister Kotsiras (Energy and Resources) also benefited Victorian businesses and consumers through a range of successful programs, partnerships and engagement efforts. These included:
•
Fisheries Victoria’s fish stocking program, with a record number of native and salmonid fish stocked across the state
•
successful trade missions to Asia and the Middle East to promote Victoria’s food, fibre and earth resources and capitalise on export opportunities
•
effective and efficient emergency response during the most active bush fire season in four years
•
the Smart Meters program, which continued to roll out to residents and small businesses across Victoria, driving flexible pricing options which
could deliver significant economic benefits to Victoria
•
the launch of the Peter Cook Centre for Carbon Capture and Storage, a joint initiative with the Co-operative Research Centre for Greenhouse
Gas Technologies, Rio Tinto and Melbourne University
In the last quarter of 2012-13, DPI moved through the challenges presented by the Machinery of Government changes, resulting in the establishment of the new Department of Environment and Primary Industries. I am grateful to all staff for their resilience and dedication during this
period of change, especially those staff members who have now moved on to other areas.
I would like to take this opportunity to thank my predecessor Jeff Rosewarne for his contribution as Secretary of DPI, in particular for his commitment to DPI’s vision for productive and competitive primary and energy industries that support Victoria’s long-term prosperity. I am fortunate to
have inherited a legacy of passionate and dedicated staff who have continued to apply these qualities to their roles in the new department.
As we continue into the future, I am confident that we have the resources and capability to make an important contribution to Victoria’s growth
and quality of life.
I encourage you to explore the contents of this report and learn about the programs and services delivered by DPI in its final year of operations.
Adam Fennessy
Secretary
Department of Environment and Primary Industries
Our department
Ministers
Minister for Agriculture and Food Security
The Hon Peter Walsh MLA is the Minister for Agriculture and Food Security and the Minister for Water.
Mr Walsh has been the Member for Swan Hill since 2002 and is the Deputy Leader of the Victorian Nationals. Prior to being elected to parliament,
he undertook a number of roles in the agricultural sectors including President of the Victorian Farmers Federation and Director of SPC Limited.
Minister for Energy and Resources
The Hon Nicholas Kotsiras MP is the Minister for Energy and Resources and the Minister for Multicultural Affairs and Citizenship.
Mr Kotsiras was appointed Minister for Energy and Resources on 13 March 2013. He has been the Member for Bulleen since 1999. Prior to being
elected to parliament he was a secondary-school science and mathematics teacher in both the public and independent school sectors before
taking on the role of political adviser in the areas of multicultural affairs and education.
The Hon Michael O’Brien MP was the Minister for Energy and Resources from 1 July 2012 to 12 March 2013.
Parliamentary Secretaries
Dr Bill Sykes
Parliamentary Secretary for Primary Industries
Gary Blackwood was Parliamentary Secretary for Fisheries and Forestry from 1 July 2012 to 13 March 2013.
Structural changes to the department
On 9 April 2013, the Victorian Premier announced a number of Machinery of Government changes to strengthen the focus on jobs and investment and to deliver frontline services more effectively.
The changes included the merger of the Department of Sustainability and Environment (DSE) and the Department of Primary Industries (DPI) to
form a new Department of Environment and Primary Industries (DEPI) from 1 July 2013.
The new department includes the following functions:
•
Land and fire, regional services, natural resources and environment, capital projects and water from DSE
•
Agriculture, productivity and industry development, regulation and compliance, fisheries and game and business services from DPI.
As part of the Machinery of Government changes, the Energy and Resources portfolio from DPI transferred to the new Department of State
Development, Business and Innovation (DSDBI). Land Victoria transferred from DSE to the new Department of Transport, Planning and Local
Infrastructure (DTPLI).
The transfer of staff and functions following Machinery of Government change is undertaken pursuant to Section 30 of the Public Administration
Act 2004. The Premier signed the Section 30 declaration to officially transfer staff to DEPI or DSDBI on 3 June.
The DEPI Secretary, Adam Fennessy, assumed responsibility for the leadership and direction of the new department and DPI on 15 April. A
transition taskforce with representatives from both departments was formed in April to led the establishment of the new department.
Executive
Adam Fennessy
Adam Fennessy was appointed Secretary of DEPI on 15 April 2013.
Prior to this, Adam was Acting Secretary of DSE. Adam has extensive experience across land, water and natural resources management and
has worked in both the Commonwealth and Victorian public sectors.
Previous senior leadership roles include Deputy Secretary, Environment and Natural Resources within DSE and Executive Director, Infrastructure and Economics in the Department of Premier and Cabinet. Adam has also held leadership roles within DSE’s Office of Water and has
been a Commonwealth Government policy and legal adviser in the areas of transport, communications and the arts.
Jeff Rosewarne was Secretary of the Department of Primary Industries from 1 July 2012 to 14 April 2013.
Deputy secretaries
James Flintoft
James Flintoft is Deputy Secretary for Agriculture Productivity.
James has substantial experience in leadership roles in both the Victorian and Commonwealth Governments.
His previous leadership roles include Deputy Secretary at Department of Agriculture, Fisheries and Forestry, Chair of the Commonwealth’s
emergency taskforce on Live Animal Exports and First Assistant Secretary, Strategic Policy and Delivery Division, Department of Prime Minister
and Cabinet.
Before joining the public service, James held senior roles at ANZ Bank and McKinsey & Company. He has worked and lived in Asia, Europe and
the USA.
James has a Bachelor of Laws and Bachelor of Science from University of Melbourne and an MBA at the Wharton School, University of
Pennsylvania in the USA.
Luke Wilson
Luke Wilson is Deputy Secretary for Regulation and Compliance.
Luke has significant experience across agriculture and resource management and for many years he led policy development on the key issues
facing Victoria’s agriculture and forestry industries. His previous leadership roles include work in energy, water and transport regulation in South
Australia, in economic consulting with PricewaterhouseCoopers, and in policy analysis with the Commonwealth Government. Luke has also
worked as an operational forester with Bowater Tissue Ltd in Myrtleford, Victoria.
Prior to his role as Deputy Secretary, Luke was Executive Director for DPI’s Portfolio Services division, with responsibility for DPI’s communication, legal, audit and risk, regional and organisational development areas.
Bruce Thompson
Bruce Thompson is the Deputy Secretary for Corporate Services.
Bruce has many years of executive experience in the public sector in Victoria and Queensland, including significant contributions to Corporate
Services innovations within DSE.
Prior to his current role, Bruce was Chief Information Officer for DSE and the Director, Spatial Information Infrastructure.
Sandra Denis
Sandra Denis is the Deputy Secretary for Energy and Earth Resources.
With a substantial career of more than 15 years in the Victorian public sector, Sandra Denis has a strong focus on public value. She has a
Bachelor of Economics (Honours), Bachelor of Laws and Master of Economics from Monash University, in addition to experience in energy
policy, regulation, climate change, environment and water, and economic and financial policy.
Prior to becoming the Deputy Secretary for Energy and Earth Resources in 2012, Sandra was responsible for markets, regulation and resources
within Economic and Financial Policy with the Department of Treasury and Finance.
Our governance structure
Executive role
The Secretary of DPI is the head of the department. The Secretary is appointed by the Premier and reports to the Minister for Agriculture and
Food Security.
Prior to April 2013, the Secretary also reported to the Minister for Energy and Resources.
Executive Committee
The Secretary (Chair) and the Deputy Secretaries meet weekly as an Executive Committee.
The Executive Committee is the key decision making body for the department. The members bring a broad range of perspectives and consider
key issues and decisions to ensure they are properly tested before the Secretary makes a final decision.
Standing committees
Standing committees are those required by legislation. Members are appointed by the Secretary.
The Audit and Risk Management Standing Committee provides independent assurance, oversight and review of financial management and
reporting, compliance with applicable laws, regulations and standards, risk management planning and review of the efficiency and effectiveness
of operations.
At 30 June 2013, independent members were Peter Lewinsky (Chair), Kathy Grigg and Fiona Bennett. DPI members were Luke Wilson and
James Flintoft.
Risk attestation statement
Insurance attestation statement
About us
The Department of Primary Industries was established as a separate department in 2002, taking over responsibility for fisheries, minerals and
petroleum, primary industries research and agriculture from the Department of Natural Resources and Environment. As part of the Machinery of
Government changes following the Victorian state election in November 2006, energy technology innovation and policy was transferred to DPI.
Responsibility for biosecurity policy across all tenures and management of weeds and pest animals on private land, as well as all wild dog
operations, was transferred from the Department of Sustainability and Environment to DPI in October 2007.
On 9 April 2013, the Premier of Victoria, the Hon. Denis Napthine, announced that, as of 1 July 2013, the Department of Primary Industries would
join with the Department of Sustainability and Environment to form a new department, the Department of Environment and Primary Industries.
As part of the restructure, energy and resources functions were transferred to the Department of State Development, Business and Innovation on
1 July 2013.
In 2012-13, DPI had responsibility for the ministerial portfolios of Agriculture and Food Policy, and Energy and Resources. The department
administered nearly 40 major Acts across diverse portfolios, from the Agricultural Industry Development Act 1990 to the Victorian Renewable
Energy Act 2006. A complete list of relevant legislation can be found on page 75.
The department carried overall responsibility for Victoria’s agriculture, fisheries, game, earth resources, energy and forestry industries. Our
vision was to achieve productive and competitive primary and energy industries that supported Victoria’s long term prosperity. Our focus was to
create the conditions to enhance the productivity of Victoria’s primary and energy industries, ensuring the productive and responsible use of
natural resources, and maintaining the security of essential services.
In 2012-13, our workforce of over 1600 staff was spread across more than 60 locations in Victoria and overseas. We worked in partnership with
other government departments, agencies and authorities such as the Department of Sustainability and Environment and the Department of State
Development, Business and Innovation to deliver agreed services. As a major contributor to agriculture and energy and earth resources research, we worked in collaboration with national and international science organisations, energy industry bodies and industry-based research
and development corporations.
At the community level we worked with a broad range of stakeholders including animal welfare groups, recreational and cultural fishing organisations and individual landowners to deliver on-ground services designed to raise awareness and promote improved practices.
Our functions and services
As a consequence of policy decisions announced by the Victorian Government on 9 April 2013, the Department of Primary Industries ceased to
exist from 30 June 2013. The Victorian Premier made a declaration under section 30 of the Public Administration Act 2004, which transferred
staff to other departments on 3 June 2013. The organisational chart below shows the department’s structure (and senior executives) as at 3 June
2013.
Agriculture Productivity
In 2012-13, the Agriculture Productivity and Industry Development (APID) Group delivered agriculture policy, research and practice change
services to boost the productivity and profitability of Victoria’s agriculture, with a focus on the four sectors of greatest economic importance to
Victoria: dairy, red meat, grains and horticulture.
The Agriculture and Food Industries Policy branch supported the Minister for Agriculture and Food Security and the Secretary through
analysis and the provision of quality policy advice on national and state agricultural and food industry issues.
The Biosciences Research Division was driven by its vision to be innovative in creating cutting edge knowledge, tools and technology essential to the prosperity and well-being of Victoria’s primary industries, leading to significant industry and societal benefits.
The focus for Future Farming Systems Research Division was to develop innovative farming systems that delivered production and environmental benefits for the temperate zone of south east Australia.
Farm Services Victoria supported the adoption of research by Victorian farmers by working closely with them and a range of other service
providers to increase the productivity, profitability and market opportunities for their produce.
The Office of Science, Technology and Commercialisation (OSTC) oversaw strategy development and the investment, evaluation and
reporting processes used by the APID Group. OSTC was also responsible for the protection and commercialisation of intellectual property
generated by the Group’s research divisions, in association with Agriculture Victoria Services P/L, the commercial arm of DPI.
AgriBio Centre for AgriBioscience was a joint initiative of the Victorian Government, through DPI and La Trobe University. Based at Bundoora,
AgriBio was designed to be one of Australia’s premier biosciences facilities, with a key emphasis on supporting and protecting Victoria’s agricultural sector.
The Deputy Secretary was James Flintoft.
The Deputy Secretary from July 2012 until April 2013 was Dr Bruce Kefford.
Energy and Earth Resources Group
In 2012-13, the Energy and Earth Resources Group was responsible for policy development, legislative and regulatory reform, as well as investment attraction and development activities for the energy, petroleum, minerals and extractive industries. This included delivery of key programs such as Smart Meters, Powerline Bushfire Safety and CarbonNet.
The Energy Sector Development Division provided energy policy and regulatory advice to the Minister for Energy and Earth Resources, along
with managing state-based energy programs and the emergency management framework for the sector. Key programs delivered by this team
included Smart Meters, Powerline Bushfire Safety, the Energy Saver Incentive, Solar Feed-in Tariffs and Facilitating Low Emissions Transition.
The CarbonNet Project is investigating the potential for establishing a large-scale carbon capture and storage network.
The Energy Technology Innovation Branch co-funded research, development and pre-commercial demonstration of low emissions, emerging
energy technologies. The team supported industry to drive these technologies to commercial readiness.
The Earth Resources Development Division promoted investment opportunities in Victoria’s earth resource industries and the provision of
pre-commercial geoscience information. The division provided policy advice and developed legislative and regulatory reforms relevant to these
industries.
The Deputy Secretary was Sandra Denis.
Responsibility for Energy and Earth Resources transferred to the Department of State Development, Business and Innovation on 1 July 2013.
Regulation and Compliance
In 2012-13, the Regulation and Compliance Group brought together regulatory and compliance functions from across DPI. This included regulation of biosecurity, fisheries, game, earth resources and forestry, strengthening and coordinating DPI’s emergency and security risk management capabilities, and delivering programs to preserve market access for Victoria’s agriculture, fisheries and forest industries.
The Fisheries Victoria, Game Victoria and Forestry Regulation division was responsible for the provision of regulatory and education services and targeted research and development to secure and grow Victoria’s fisheries and game resources, as well as forestry regulation to
support management of the state’s productive forest resource.
Biosecurity Victoria delivered programs and services to protect and enhance productivity and market access by minimizing the impact of
animal and plant pests and diseases, promoting appropriate agricultural chemical use, and safeguarding animal welfare. The division also
delivered the State Government’s responsible pet ownership program to the Victorian community. The division led regulatory reform across the
Group.
The Emergency Planning and Compliance division was responsible for strengthening and coordinating DPI’s emergency and security risk
management capabilities, providing offence management services, and developing compliance capabilities across the Group. A key focus of
their work was to ensure that DPI’s preparations for emergencies were integrated with whole of government arrangements.
Earth Resources Regulation Victoria regulated the minerals, extractive, petroleum, and geothermal industries, the development of high
pressure pipelines and geological storage of greenhouse gases in Victoria and Victorian waters.
The Deputy Secretary was Luke Wilson.
The Deputy Secretary from July 2012 to April 2013 was Deborah Peterson.
Corporate Services
The Portfolio Strategy and Business Services Group was responsible for guiding and enabling DPI’s operational groups. The group undertook
portfolio strategy and provided business and technology services, human resources, and finance services.
The Policy, Strategy and Performance division guided the department’s strategic direction and performance and was responsible for
whole-of-department policy coordination and cross-portfolio policy development, including natural resource and rural policy.
The Business Services and Technology division was responsible for supporting a number of people, site and finance and business support
related services. Other key priorities for the division included process and service improvement, project delivery, IT strategy, policy and design
and systems development and maintenance.
The People and Culture division provided strategic and operational human resources advice and services and ensured that the department met
its governance and regulatory obligations in relation to OH&S, workplace relations and people management.
The Finance and Infrastructure division was responsible for financial management and reporting, financial policy and budget strategy, infrastructure and facilities management and procurement.
The Deputy Secretary was Bruce Thompson.
From July 2012 to April 2013 the Deputy Secretary was James Flintoft.
Our Values
In 2012-13, DPI staff were guided by the following values:
•
Be open
•
Work together
•
Respect others
•
Make a difference
•
Focus on safety
•
Lead with purpose
Following the merger of DPI with the Department of Sustainability and Environment, new values aligned with the culture and vision of DEPI will
continue to guide the way we work, make decisions, interact with others internally and externally, and contribute to how we achieve our goals.
Our strategic direction
The Victorian Government 2012-13 Budget Paper No. 3 sets out three strategic long-term objectives and four linked outputs for the department,
described below. Output measures are described in greater detail in Output Performance Measures on pages 64–69.
Departmental Objectives
Outputs
Competitive businesses and efficient markets
through increased productivity, access to global trade
and investment and improved market structure and
function
Primary industries policy
Strategic and applied scientific research
Practice change
Regulation and compliance
Sustainably managed natural resources through
efficient and sustainable allocation and use of natural
resources
Engaged, safe and responsible communities through
improved community engagement, recreation and capacity building and animal welfare
In 2012-13, DPI’s vision of productive and competitive primary and energy industries was focused through additional portfolio objectives. Program highlights relating to each of these objectives are described in detail on pages 14-43.
The Victorian Government has prioritised the productivity of Victorian businesses as the basis for creating wealth for Victorians and DPI has been
committed to delivering services that help to achieve this. Our vision has been for productive and competitive primary and energy industries that
support Victoria’s long term prosperity. In supporting increased productivity, DPI has undertaken research and development and provided
information that has assisted businesses to adopt new technologies and practices and to make new investments. In promoting the responsible
management of natural resources, DPI has worked with communities and industries to ensure Victoria’s natural resources remain productive
now and for future generations. In securing Victoria’s essential services, DPI responded to emergencies and biosecurity threats effectively and
efficiently, while ensuring that our energy supplies are secure, safe and reliable.
During 2012-13 DPI revised its departmental objectives to provide greater clarity and focus to guide policy and program development across the
agriculture, energy, earth resources, fisheries and forestry sectors. These objectives were:
•
Increase the productivity of dairy, red meat, grains and horticulture businesses.
•
Secure investment in coal, gas, renewables and targeted mineral resources.
•
Responsibly manage and secure access to fisheries, forest, game and earth resources for current and future generations.
•
Enable primary and energy industries to access markets and minimise the impact of emergencies and biosecurity threats.
•
Ensure consumers benefit from efficient, reliable and safe energy services.
Agriculture
Victoria is Australia’s largest food and fibre exporting state. Our temperate climate, high quality soils and clean water
support our world-class agriculture industries. The state’s largest export earner, the dairy industry, provides 13 per cent
of dairy products traded globally.
In 2012-13, DPI’s role was to create the conditions to increase productivity of agricultural businesses and to enable
primary industries to access markets and minimise the impacts of emergencies and biosecurity threats.
Agriculture and food is one of Victoria’s most internationally competitive industry sectors, producing exports valued at $9.0 billion in 2011-12
accounting for 29% of the national total. The sector includes 51,000 businesses employing more than 153,000 Victorians. Dairy and grain continue to be the leading export commodities. Dairy exports remained strong at a value of $1.9 billion, while grain exported from Victoria rose by 61
per cent to hit more than $1.8 billion in 2011-12. The huge increase in grain exports represents a strong recovery from years of drought and
episodes of flooding.
Fig 1: Victorian agricultural exports (A$ million)
Source: GTIS and ABS
The top export market continues to be China, with Victoria sending $1.86 billion worth of food and fibre exports in 2011-12. Other major markets
included Japan ($816 million) and New Zealand ($484 million). In 2012-13 DPI was involved in both inward and outward trade missions that
secured export deals such as table grapes and citrus into the Philippines.
DPI continued to provide a responsible and empowering regulatory environment, leading the Victorian Government submission to the Victorian
Parliamentary Inquiry into the impact of food regulation on farms and other businesses. Work commenced on the development of an appropriate
regulatory framework for the establishment of an alkaloid poppy industry in Victoria, and new egg production and processing standards were
enacted.
Through focused and effective agricultural research, development and extension (RD&E), market access and policy initiatives, DPI made significant contributions to the productivity and competitiveness of Victoria’s agriculture sector.
As a strong supporter of the national RD&E framework, DPI worked with the Commonwealth and other state governments, CSIRO, research and
development corporations, industry bodies and the university sector to ensure that net benefits to Australia as a whole were maximised. DPI was
a major provider of national productivity R&D in dairy, temperate horticulture, sheep meat and pulse crops. Other major programs addressed
cross-sectoral issues such as plant biosecurity, animal welfare, climate change, food and nutrition, and soils and water use in agriculture. DPI
was also a support research agency in beef, summer and winter cereals, wine and animal biosecurity. Focusing on priorities under the national
RD&E framework allowed DPI to effectively identify and invest in areas of relevance to Victoria.
DPI continued to develop and improve infrastructure and collaborative arrangements in partnership with other RD&E providers, including:
•
AgriBio
•
Primary Industries Climate Challenges Centre
•
Animal Welfare Sciences Centre
•
Red Meat Innovation Centre at Hamilton
•
Australian Grains Genebank at Horsham.
AgriBio
In April 2013, Victoria’s new $288 million Centre for AgriBiosciences (AgriBio) at Bundoora was officially opened by the Premier, the Hon. Denis
Napthine. The facility is Australia’s only integrated agriculture biosciences research centre and has been specifically designed to enhance collaboration between scientists and to facilitate a multidisciplinary approach to issues of local, national and international importance.
Approximately 400 world-leading scientists work at the Centre on a range of projects that will benefit the Victorian food and fibre industry. It is
anticipated that the research undertaken at AgrioBio will lead to significant on-farm productivity gains as well as new defences against pests and
diseases. Projects will include gene research on major plant and animal species and accelerated precision breeding technologies.
AgriBio complements research centres at Ellinbank, Hamilton and Horsham, where cutting-edge research in dairy, lamb and grains is already
being undertaken. The building includes one of Australia’s largest physical containment level three suites. The pressurised ‘box within a box’
design allows scientists to safely carry out industry-saving research on hazardous pathogens.
AgriBio is a joint venture between DPI and La Trobe University, and is located at the university’s Bundoora campus.
Growing Food and Fibre
In the state budget in May 2012, the Victorian Government announced the Growing Food and Fibre initiative, which is designed to boost
productivity in the dairy, grains, red meat and horticulture sectors and to address biosecurity issues. The government has committed $61.4
million over four years, with an additional $15.7 million allocated annually on an ongoing basis. The funds have been allocated to improve biosecurity and market access ($19.5 million) and to lift productivity in dairy ($14.3 million), grains ($10.6 million), red meat ($9 million) and horticulture ($8.1 million). Major projects receiving support through Growing Food and Fibre are described in more detail in the following industry
sections.
Dairy
Industry overview
The dairy industry is Victoria’s largest rural industry. There are around 4,240 licensed dairy farms in the state, spread relatively evenly between
the three production regions: Western Victoria, Gippsland and Northern Victoria. Australian milk production is expected to reach 9.35 billion litres
in 2012-13 – down 1.4 per cent on the 2011-12 output of 9.48 billion litres.
The 2012-13 season was a difficult one for many dairy farmers, as falling farmgate prices, higher input costs and unfavourable seasonal conditions combined to challenge the profitability of farm businesses.
Western Victoria has suffered from extended dry conditions and a second season of reduced pasture production. Gippsland experienced overly
wet conditions throughout winter and early spring, followed by a dry summer, as well as bushfires. Good irrigation allocations in northern Victoria
allowed farmers to maximise pasture production. While production growth has been slowing across the state as a whole, northern Victoria
consistently tracked ahead of milk production in the 2012-13 season.
Milk price and higher feed and energy costs have been the major concerns during the 2012-13 season, with southern export region farmers
facing an 8-10 per cent price drop.
Despite challenging economic conditions in the US and EU economies during the 2012-13 season, demand has remained steady. The focus of
growth continues to be China, South-East Asia, and parts of the Middle East, supported by more prosperous economic conditions.
Figure 2 below shows trends in productivity for the three dairy regions in Victoria - Gippsland, South West and Northern Victoria, and for Victoria
as whole. Figure 3 presents average annual growth rates of productivity, input use and output use. Over the period from 1988-89 to 2010-11,
productivity growth has varied between the regions, growing at an average annual rate of 1.1 per cent in Gippsland, 1.5 per cent in the South
West, and 0.4 per cent in the Northern region. At state level, productivity grew at an average of 1.2 per cent per annum.
Figure 2: Dairy total factor productivity (TFP), by region and Victoria, 1988-89 to 2010-11
Source: ABARES (2013)
Underlying these productivity trends are the trends in input and output use in the different regions. In Gippsland, input usage grew at an average
annual rate of 0.7 per cent, compared to an output growth rate of 1.8 per cent. South West has experienced input and output growth rates of 1.3
and 2.8 per cent per annum respectively. Finally, growth in inputs and outputs in Northern Victoria was 0.4 and 0.8 per cent per annum respectively. In Victoria as a whole, inputs grew at an average annual rate of 0.6 per cent, while outputs grew at 1.8 per cent.
Figure 3: Dairy TFP, inputs and outputs, av. annual growth rates, by region and Victoria, 1988-89 to 2010-11
Source: ABARES (2013)
DPI’s role
DPI’s provision of technical services to the Victorian dairy industry continued during 2012-13, in what proved to be a challenging year of business
operating conditions. Many of these services provided an integrated ‘route to market’ of new technology and knowledge generated by DPI and its
partners.
Of particular focus in 2012-13 was the development and delivery of business tools, such as those developed in the Blue Waters project, specifically addressing major aspects of business risk primarily relating to water availability and efficiency on farm. It is estimated that over 2000 farm
businesses benefited from this project.
Another area of specific focus was addressing the continual decline in herd reproductive performance on Victorian farms. This project, delivered in conjunction with industry, addressed this key issue which not only limits productivity today, but will also inhibit the benefits of future
genetic technologies developed by DPI research.
DPI has been integral in contributing to regional growth in Victoria’s dairy industry. As a key partner in the Alpine Valleys project in north-eastern
Victoria, DPI allocated a full time extension officer in 2012-13. The project aims to double milk production in this region by 2030.
The past year also saw the emergence of a development function within DPI to complement existing research and extension platforms. This
service will specifically co-design with industry more effective practice change services and tools for delivery by the department and private
service providers across Victoria.
DPI’s world class dairy research has achieved significant improvements in productivity growth and profitability in the dairy industry. In 2012-13,
DPI was focused on developing more productive cows through:
•
application of modern genetic technologies
•
expanding novel feeding systems that cost-effectively integrate higher amounts of supplementary nutrients into the diets of lactating dairy
cows
•
improvements in water use efficiency of dairy production systems.
DPI’s genomic research continued to improve the desirable genetic characteristics for both Australian and international sires. This resulted in
significant adoption of young ‘genomic sires’ for Holstein and Jersey breeds. The high milk producing ability of these ‘genomic sires’ is identified
by genomic analysis and provides real economic advantages to the industry. It is predicted that increasing the rate of genetic gain of heifers will
improve profitability to the average farm by more than $20,000 per annum and improve cow fertility.
DPI research found that novel feeding systems and improved diet formulation can increase milk production by up to 15 per cent. Feeding systems for dairy cows have been traditionally based on grazed and conserved pasture, with low to moderate amounts of cereal grain-based
supplements fed in the dairy. By necessity, these simple systems are being replaced with systems that are more flexible and capable of feeding
higher amounts of supplements to take advantage of improved cow genetics and to cope with variability in economic operating conditions and
weather. DPI research has enabled the dairy industry to produce an additional 6 kg of milk per cow through the formulation of diets to better
match pasture supply.
Research by DPI scientists has uncovered the potential for grasses such as tall fescue and lucerne to become key components in forage systems in irrigated dairy farming systems. Both tall fescue and lucerne have a number of advantages over perennial ryegrass. Strategies are being
developed to manage lucerne performance and persistence under variable irrigation regimes, while DPI scientists are also developing practical,
physiologically based grazing criteria for tall fescue to optimise its production and utilisation by the grazing animal.
Grains
Sector overview
Victoria is the fourth largest grain producing state behind Western Australia, New South Wales and South Australia. In 2011-12 Victoria produced 24.4 per cent of Australia’s barley, 13.2 per cent of Australia’s wheat and 20.1 per cent of Australia’s canola production. Victoria accounts
for approximately 16 per cent of Australia’s grain exports. More than 50 per cent of Victorian grain production goes to domestic consumption,
providing livestock feed and inputs for locally produced commodities such as beer and vegetable oil.
Figure 4: Value of Victorian commodities – Barley, Wheat, Oats, Pulses and other cereals (A$ million)
*other – sorghum, rice, other cereals
Source: ABS
Victorian grain farms are predominantly located in western and northern Victoria, with the majority located within the Mallee and Wimmera
regions. There are approximately 5,500 grain producing farms in Victoria, consisting of around 3,000 specialist grain farms and 2,500 farms that
produce grain as part of a mixed farming enterprise.
Harvest results for 2012 varied across Victoria, reflecting the differing rainfall levels at planting time. The Mallee had below average yields,
particularly for canola due to low soil moisture levels at the time of planting. The Wimmera had higher soil moisture levels which were able to
partially offset the effects of the dry seasonal conditions. It is estimated that reduced wheat, barley and canola production will be recorded in
2013.
Figure 5: Victorian Grain Production, 2004-2012
Source: ABARES (2013)
The Victorian Government has committed $10.6 million over four years to the Growing Food and Fibre initiative, with new research targeting
productivity in the grains sector forming a key element of the program. DPI scientists have helped to accelerate productivity growth in the grains
industry through the development of superior varieties and management practices best suited to local conditions. Central to this research is the
development of new grains germplasm, superior agronomic packages for cereals, oilseeds and pulses and new soil management options for
local production systems. Continuing research into improved soil resilience will deliver tools to help make soils more conducive to sustainable
productivity growth, while research focused on production in high rainfall zones continued. DPI was also active in developing new extension,
training and network programs to build the capability of growers across the state.
There has been increasing demand from domestic and international markets for grain, but in recent years, productivity growth of Victorian
growers has slowed to around one per cent a year, down from the long-term trend of 2.2 per cent. The aim of the research is to reverse this
decline in productivity growth to ensure growers remain competitive, in order to capitalise on the opportunities presented by unprecedented
global demand.
Most of the research will be undertaken by DPI researchers at Horsham, where part of the funding will also be used to help establish the Australian Grains Genebank. This facility will bring together tropical and temperate climate cereal, grain, legume and oil seed collections currently
held in multiple facilities around Australia.
DPI’s role
In 2012-13, DPI’s research for the grains industry was focused on sustaining productivity and profitability growth. Grains research at DPI has
spanned the spectrum from cutting edge gene discovery to improved farm systems, soil health, resource use efficiency, enhanced on-line information networks and on-farm tools. The grains research program was spread across the Horsham Grains Innovation Park, AgriBio and other
key regional locations.
Long term investments in pulse breeding through Pulse Breeding Australia (PBA) saw the release of a range of new PBA varieties in 2012. To
enable grain producers to gain the benefits of pulses for profitability and farm productivity, DPI also invested in pulse agronomy research delivering crop production packages.
A new malting and brewing barley variety, Scope CL, was developed by DPI researchers and released in 2012. Scope CL has high grain yield,
early-mid maturity and good grain plumpness. Scope CL barley was developed through a mutagenesis-based (non-GM) breeding program
conducted by DPI. It is suitable for clear field production in most barley regions of Australia.
Crop diseases continue to be the cause of large losses in production and profitability for grain growers. The DPI crop protection team conducted
diagnostic, research and extension activities from DPI Horsham.
In 2013, this expertise was made available to grain producers via an ‘app’ built for farmers, agronomists and agricultural consultants. The Crop
Disease Application allows users to identify crop varieties and disease ratings in the ute, office or paddock. The app was based on research
funded by DPI and the Grains Research and Development Corporation to help with crop selection, disease identification, and potentially the early
detection of exotic crop diseases.
Increasing grain productivity
In 2012-13, DPI scientists took the lead in research to increase grains productivity in the higher rainfall zone (HRZ) of South-west Victoria.
Expansion of production in the HRZ over the past decade is predicted to continue under future climate change scenarios. Current cultivars lack
specific adaptation to the high rainfall environment, with previous studies indicating that wheat and canola yields could increase by 25-50 per
cent if yield potential is realised. Based on DPI preliminary research, Pacific Seeds released two new cultivars in limited quantities in 2012 and
research has identified optimum sowing dates and nitrogen fertiliser rates.
Horticulture
Sector overview
Vegetables, grapes and other fruit account for the majority of Victoria’s horticulture production. These sectors enjoyed improved growing conditions in 2012-13 relative to previous years, which generally saw increased production. This helped to ensure the Victorian community had
sufficient access to fresh, reasonably priced, locally-grown produce. However, many industry participants continued to face challenging trading
conditions. Increased costs of production, coupled with oversupply in some sectors and intensifying market competition from both domestic and
overseas sources has constrained income growth. The declining fruit processing industry has placed significant pressure on the canning fruit
industry in the Goulburn Valley.
Fig 6: Value of Victorian commodities – Fruit, Vegetables and Nuts (A$ million)
Source: ABS
Fruit and nuts
Victoria produces more than 400,000 tonnes of fruit and nuts each year, worth in excess of $1.3 billion.
The main types of fruit and nuts grown and approximate values (2011-12) are:
•
pome fruits (eg. apples and pears) - 232,000 tonnes worth around $340 million
•
stone fruits (eg. cherries, nectarines, peaches) - 84,000 tonnes worth around $154 million
•
grapes – 444,000 tonnes worth around $343 million
•
citrus fruit (eg. oranges, mandarins) - 60,000 tonnes of worth around $44 million
•
strawberries - 11,500 tonnes worth around $93.5 million
•
almonds - 20,000 tonnes worth around $82 million.
Victoria is the largest almond producing state in Australia, comprising nearly 70 per cent of the industry. Almond production is a fast growing
horticultural industry in Victoria. Almost 20,000 hectares of almond trees are located around the Sunraysia region and the production is expected
to reach 50,000 tonnes by 2015, with an estimated farm gate value of $325 million. The industry is a major social-economic driver in the north
west of Victoria.
Victoria is the second largest wine grape growing state in Australia. About 55 per cent of Victoria’s production is white wine grape varieties, and 45
per cent of production is red wine grape varieties.
Victoria is the largest table and dried grape growing state in Australia, producing around 95,000 tonnes of table grapes each year with an es-
timated value of $250 million and around 13,000 tonnes of dried grapes each year with an estimated value of $25 million. Around 95 per cent of
Victoria’s table grape production is exported. Since 2011, when Australian table grapes gained legal market access into China, the number of
containers exported from Victoria has grown remarkably - from one in 2011, 13 in 2012 to 270 in 2013.
Vegetables
Victoria produces a wide range of vegetable types, the majority of which are grown and shipped to the fresh produce market, for sale and
consumption in major population centres. Victoria produces around 650,000 tonnes of vegetables each year with an estimated value of $840
million.
DPI’s role
DPI’s research program into the pear, stone fruit and almond sectors of the Victorian horticulture industry has significantly improved productivity
and profitability.
DPI’s pear research has been focused on developing new varieties to improve fresh market appeal and productivity, while developing market
opportunities for growers. Two new highly promising pear varieties have been produced as a result of this work, leading the national pear
breeding project.
In 2012-13 an experimental pear orchard was established at Tatura to test new pear varieties and orchard management systems. Much of the
research using new fresh market pear varieties will be undertaken in the pear field laboratory over the next six years. Researchers will look at
ways to speed up tree growth, increase the size and number of fruit per tree and ensure consumer-approved fruit quality. Pear orchards usually
take about 10 years to produce enough fruit for growers to receive a return on their investment and it is hoped that the research will reduce that
time by half.
Increased sugar and antioxidant concentration in fruit through irrigation management could become a point of differentiation for Australian horticulture in national and international markets and possibly result in a price premium at the farm gate. Scientists at DPI were able to produce
pome fruit with increased sweetness and higher antioxidant content by reducing irrigation below the 75% of normal irrigation practice.
DPI research has been addressing the physiological response to water and management of carob moth in almonds which cause a loss in crop
value and added cost to industry.
Carob moth is a widespread pest which has become a significant concern for the almond industry in recent years. In 2012-13, DPI worked in
partnership with the Almond Board of Australia to investigate options for managing carob moth. The research was funded through the Growing Food
and Fibre initiative, based at DPI Irymple.
DPI has assisted producers to develop new markets and grow existing markets for high quality products demanded by consumers. Information
brokering has been enhanced to increase the effectiveness of communication in the digital age, with an increasing reliance on mobile and
web-based technology. Information provided to industry and farm businesses has focused on building industry capability and grower decision
making. This has included business management, economic analysis of adoption of new technologies and practices, climate variability, biosecurity threats, labour costs and availability.
Red meat
Sector overview
Victoria is one of Australia’s leading producers and the second largest exporter of red meat. In 2011-12 the gross value of the Victorian red meat
industry was $3.3 billion ($1.3 billion for cattle and calves, $1.1 billion for sheep and lambs and $670.6 million for wool). This constitutes just
under 30 per cent of the gross value of agricultural commodities produced in Victoria. Around 17,121 properties, occupying about 65 per cent of
Victoria’s arable farm land, carry 2.36 million beef cattle, 15.93 million sheep and 518,000 pigs. These farms constitute around 52 per cent of
Victoria’s agricultural businesses.
Since 2010, sheep numbers have increased by approximately 1.55 million head or 10.8 per cent, after many years of difficult seasons. This partly
reflects the good seasonal conditions experienced over the past three years and the above average prices received by producers over much of
2010 through to early 2012.
Fig 7: Value of Victorian commodities – meat (A$ million)
*Other livestock = pigs, goats, poultry and other livestock
Source: ABS
In 2011-12, Victoria exported just under 20 per cent of Australia’s total red meat exports. Beef and cattle exports were valued at $606 million,
while sheepmeat and sheep exports were worth $601 million.
Approximately 30,000 people are employed in the beef cattle and sheep industries, either directly in the red meat and wool supply chain or in
businesses that service the red meat industry. Of those employed in the red meat industry, just under 20,000 were employed on agricultural
properties engaged in livestock production. A further 9,202 were employed in the meat and meat product processing and manufacturing industries.
There has been significant adjustment in the industry in Victoria over the last twenty years, with both the flock size and the number of sheep
farms falling by around 50 per cent. There has also been a gradual shift from wool towards sheep meat production, particularly prime lambs.
Over the past year, tough trading conditions have unsettled the Victorian livestock sector, with mutton, lamb and beef cattle prices all lower than
the previous two years. However, a late autumn break and early winter rainfall, combined with the falling Australian dollar and tightening supplies
of cattle at saleyards, have helped boost producer confidence across most of Victoria.
DPI’s role
In 2012-13, DPI’s focus was on:
•
enhancing value chain function to improve product integrity and meet customer requirements
•
improving animal production efficiency and reproductive performance
•
developing new farming systems designed for specific regional locations
•
reducing regulatory burden and better managing business risks
•
increasing the capability of research, development, extension and policy service providers to deliver integrated and innovative solutions to
the sector
•
increasing adoption of traceability and improved feedback systems through the value chain
•
developing new technologies and extension packages of research findings focused on animal production efficiency
•
investigating optimum nutrition and genetics for improved lamb survival.
New research was tested and applied across three production zones. In 2012-13 these included dual purpose canola and cropping for lamb
production, and improved perennial grasses. DPI also developed innovative service delivery models to fast-track and increase adoption of
known technologies and new practices, while a review of intensive feeding/feedlot codes of practice was undertaken to identify opportunities for
reducing the regulatory burden on this growing sector of the industry.
Economic monitoring and modelling was used to demonstrate areas of greatest productivity gains, including the modelling of whole farm profit
and risk in response to technological improvements.
On-farm demonstration
DPI has established a number of ongoing on-farm demonstration sites with associated producer groups across Victoria. In 2012-13 there were
34 such sites. DPI’s focus was to demonstrate research and best practice in optimising reproductive efficiency and on farm management, including use of Individual Electronic Identification (EID).
These demonstrations have stimulated significant interest from producers and service providers, with some sites financially supported by Meat
and Livestock Australia (MLA) and Australian Wool Innovation.
The first year of a four year demonstration project (supported by MLA and DPI) is evaluating the impact of grazing green feed, in particular
lucerne, on ewe fertility. Preliminary results indicate increases of up to 25 per cent in conception rates. For an average lamb producer with 1500
ewes this has the potential to improve their gross profit by $33,000 per annum.
Another key management practice that has strong potential to dramatically increase on-farm productivity is the mating of maiden (less than one
year old) ewe lambs. Early indications from a second demonstration site has developed simple decision tools to help producers determine
when it is economically viable to join younger ewes, based on a range of lamb and grain price scenarios.
On-farm trials using EID technologies have demonstrated potential for strong improvements in farm performance. This work has significantly
increased knowledge and skills of producers in the practical on farm application of EID and the potential benefits arising from its use, which has
increased adoption of these technologies.
Red meat innovation
The Minister for Agriculture and Food Security, the Hon. Peter Walsh, officially opened the Red Meat Innovation Centre based around DPI
Hamilton in April 2013. Scientists from DPI have been working with Meat and Livestock Australia to improve lamb lean meat yield and meat
eating quality, which are major drivers of industry productivity and profitability. The research has drawn on recent investments in DPI science
capability and infrastructure at Hamilton and is the first project at the centre. The Victorian Government is providing $4 million over three years for
the research and extension in this area.
Much of this investment has been made available through the Victorian Government’s Growing Food and Fibre (GFF) investment. The red meat
component of the GFF investment is an $8.95 million package over four years (with $2.3 million per annum ongoing) that will be spent on targeted research, development and extension. This package seeks to boost productivity and profitability in Victoria’s red meat (lamb and beef)
industry by focusing on improving livestock fertility, weaner survival, genetics and grazing systems, increasing adoption of traceability and improved feedback systems, and establishing on-farm participatory research and demonstration trials to apply research findings in a commercial
environment, in collaboration with leading producers.
Biosecurity
Biosecurity Victoria
Building stronger regional communities and securing increased profitability and higher productivity for the food and fibre sectors are high priorities for the Victorian Government. Biosecurity Victoria contributed to these commitments by providing high level scientific, policy and operational
expertise and leadership to deliver:
•
an integrated and preventative approach to biosecurity emergency management
•
standards and processes that demonstrate the integrity and safety of Victoria’s agricultural products, thereby supporting market access
locally and internationally for Victorian produce
•
systems to monitor and regulate the use of agricultural and veterinary chemicals, fertilisers and stock foods
•
programs that minimise the impact of plant and animal disease and invasive plants and animals across all land holdings
•
projects and regulation that safeguard the welfare of livestock and nonproduction animals.
Focus areas for action by Biosecurity Victoria in the past year included developing contemporary regulatory and compliance systems, devising
smarter surveillance for biosecurity threats and delivering more effective emergency responses.
Animal welfare
Safeguarding animal welfare is a critical component of Victoria’s biosecurity. During 2012-13, DPI responded to four large incidents involving
stock starvation. The number of stock that required seizure or destruction was minimised by DPI staff working closely with industry to secure feed
and improve animal husbandry. As the primary agency for livestock animal welfare, DPI responded to seven truck rollover incidents and eleven
fires, providing immediate relief of animal suffering and advice regarding on-going care of affected animals. The number of welfare complaints
received by DPI doubled in the past year, largely due to the dry seasonal conditions and the increasing willingness of the community and other
producers to report welfare issues.
Invasive species
Priority responses to eradicate the aquatic state prohibited weeds Salvinia and Alligator Weed (Alternanthera philoxeroides) were deemed
successful in 2012-13. The two species have now been prevented from spreading further downstream, a high risk following the major 2010-11
floods. During 2012-13, active surveillance along 60km of the Bendigo Creek (including 19 monitoring sites) found no new alligator weed infestations north of the known incursion. Surveillance at Warragul found the waterway system clear of alligator weed, with only three terrestrial
plants found. Monitoring of five dams at Dawson in West Gippsland and helicopter surveillance of the Thompson and LaTrobe Rivers confirmed
the absence of Salvinia between Dawson and the RAMSAR listed Gippsland Lakes. This system will be assessed for eradication in 2013-14.
A priority response to an incursion of smooth newt removed 74 animals from four locations during 2012-13. DPI led the inception of the Victorian
Smooth Newt Consultative Committee as part of the response. Agreements with Melbourne Museum and DPI Queenscliff will enable research to
be conducted on the captured population to assist future prevention and eradication activities.
Protecting horticultural production
Chestnut blight, potato spindle tuber viroid and myrtle rust are major biosecurity threats to Victoria’s food production.
Over 2000 chestnut blight host trees were assessed in the 2013 survey period, with no new detections found at previously infected or high risk
sites. The national approval of market access conditions for chestnuts has enabled businesses within the infected area to treat and sell over 40
tonne of chestnuts to various markets this season.
Rapid response to an outbreak of potato spindle tuber viroid in the Mansfield area confined the disease to one property. Destruction of the host
stock has prevented spread of the disease and tracing of infected seed has found no further spread within Victoria. Property inspection is
scheduled in July 2013, and will establish if carryover of the disease has occurred.
Monitoring and surveillance of over 100 properties known to be infected with myrtle rust continued throughout the year. Although it is recognised
that myrtle rust is unlikely to be eradicated from Victoria, DPI has been working in partnership with industry and other government departments to
monitor and help contain its impacts. Around 2,500 people attended DPI myrtle rust information sessions in 2012-13 on how to identify and
manage the disease.
Growing Food and Fibre
Biosecurity Victoria received Growing Food and Fibre initiative funding of $19.5 million over four years to enhance Victoria’s biosecurity preparedness.
To date, all projects have demonstrated they are meeting their aims through the achievement of project activities. Significant achievements
include:
•
completion of the Forests and Timber Biosecurity Framework to improve biosecurity for sustainable timber production
•
distribution of a Bee Toxicity Risk Management Booklet to beekeepers, resellers and industry groups.
Natural Disasters
The 2012-13 fire season was the most active season in four years. More than 190,000 hectares of public and private land were burnt between
December and March and a total of 46 houses were destroyed. Major incidents included the Aberfeldy – Donnelys fire in Gippsland, the
Chepstowe fire in the south west region and the Victoria Valley Complex fire in the Grampians region.
Under the Emergency Management Manual Victoria, DPI was a primary agency for relief and recovery for:
•
animal welfare for companion animal and livestock in accordance with the Victorian Emergency Animal Welfare Plan
•
food supply continuity assessments and coordination of industry contingency actions to maintain overall supply chains in an emergency
•
rural recovery for agri-food businesses and primary industries.
DPI provided services for two main stages of recovery:
•
Initial assessments of impacts on the State of Victoria, including referrals to partner agencies for assistance, coordination of animal welfare
agencies and identification of supply chain issues
•
Long-term recovery, focusing on on-farm assistance through industry specialists.
DPI staff responded to 45 incidents. These were largely bushfires impacting on private land with one tornado event in north east Victoria. DPI
contacted 429 landholders to undertake an assessment of the losses incurred.
In responding to these incidents DPI staff:
•
provided animal health/welfare support services including supplementary feeding advice and the humane euthanasia of sick and injured
animals
•
provided funding to the Victorian Farmer’s Federation to coordinate transport for donated fodder to meet immediate animal welfare needs (up
to 4 weeks after the event)
•
assisted producers with access to urgent recovery information and support services
•
collected and reported on loss and damage data for impacted rural properties
•
undertook community engagement and incident updates.
DPI staff continuously monitored conditions across the state, maintaining a level of preparedness to allow for rapid response where needed.
Through the Industry Specialist program, DPI provided additional assistance to 45 landholders, providing information on farm planning, nutrition,
animal welfare, pasture recovery, and soil conservation.
Fisheries
Victoria’s fisheries are diverse and geographically extensive. Our waters provide some of the world’s finest seafood, as
well as world-class recreational fishing opportunities.
In 2012-13, DPI’s role was to responsibly manage and secure access to fisheries for current and future generations.
Sector overview
Victorian waters include inland lakes, river systems and water storages, estuarine and marine inshore waters to a three nautical mile limit. The
State of Victoria also manages some fisheries beyond this limit, by agreement with the Commonwealth.
Victorian wild fishery resources are harvested by the commercial, recreational and Aboriginal fishing sectors. Aquaculture is also undertaken in a
variety of offshore, coastal and inland facilities.
The Fisheries Status Report, which provides a high level overview of the performance of the sector, was last published in 2010. All key Victorian
managed fisheries were classified as sustainable in that report. The next report is scheduled to be produced in 2013-14.
Victoria’s commercial fisheries produced around 5,300 tonnes of fish from wild catch and 1850 tonnes from aquaculture for the year ending 30
June 2012. This was a decrease of around 200 tonnes (4%) in wild catch production and a decrease of around 700 tonnes (27%) in aquaculture
production.
Victoria’s commercial marine fisheries are generally performing well. Each year, a total allowable commercial catch for the commercial abalone,
rock lobster, giant crab and scallop fisheries is set based on a current assessment of fish stocks, which includes contemporary data on catch and
effort plus inputs from other scientific monitoring such as pre-recruitment surveys, angler diary and boat ramp surveys. Based on this assessment, rock lobster fisheries are improving with 2013-14 total allowable commercial catches increasing or remaining steady from the previous
year. Exceptions to the overall trend are a 10% reduction for the central zone abalone fishery and significant quota reductions for the giant crab
fisheries for 2013-14. DPI is taking steps with industry participants to help rebuild these fisheries.
The state’s freshwater recreational fisheries are also faring well after several years of drought. The impact of drought on carp numbers, habitat
improvement and spawning success resulting from increased rainfall and a record number of fish stocked by DPI have resulted in new and/or
improved recreational fishing opportunities.
The aquaculture sector is also continuing to perform well overall. Shellfish production is being assisted by a reliable supply of hatchery spat
while salmonid production has been adversely affected by import competition due to the strong Australian dollar. Abalone aquaculture is continuing to recover from the impacts of disease.
Figure 8: Wild catch and aquaculture production 2008 to 2012 (tonnes)
Source: Fisheries Victoria Commercial Fish Production Information Bulletin (2012)
DPI’s role
DPI’s overarching role in fisheries is to optimise the economic and social value of the industry across diverse and competing sectors while also
ensuring the sustainability of Victoria’s fisheries resources.
DPI delivers an integrated statewide fisheries program that combines operational policy, management, science, education and enforcement
services. These services include policy, licensing administration, fisheries management and regulation, statutory consultation, stock assessment
and monitoring, aquaculture regulation, intelligence and investigations, compliance operations and education programs.
Other elements include improving opportunities for recreational fishers such as fish stocking, new infrastructure and access and targeted research.
An important continuing focus for DPI is on building and maintaining effective working relationships with its many stakeholders across the fishing
sectors, including via representative bodies Seafood Industry Victoria and VRFish.
A report on DPI’s 2012-13 performance against the Ministerial Statement of Expectations for fisheries, at Appendix 3 of this report, provides
further information on DPI’s role and focus areas as the regulator of Victoria’s wild harvest fisheries and aquaculture industry.
Commercial fishing
DPI completed annual processes to set the total allowable commercial catch for the scallop, abalone, rock lobster and giant crab fisheries. It
also implemented catch controls for Victorian Inshore Trawl licence holders in late 2012 to protect the ongoing sustainability of the western
snapper stock and introduced a ban on mid-water trawling in Victorian waters.
The highest priority for this sector through 2012-13 has been to develop a new commercial scallop dive fishery in Port Phillip Bay. This small,
high value fishery, where scallops would be gathered by hand, is expected to provide benefits to Victoria including new business and employment opportunities and fresh, locally caught seafood. A proposal outlining arrangements for the fishery was released for a 60 day public
consultation period in mid-April 2013.
DPI finalised an agreement with an industry consortium early in 2013 for commercial use of the DPI Queenscliff hatchery facility for blue mussel
and native oyster production on a cost recovery basis, providing this important local industry with future production certainty.
DPI also worked closely with representatives from across the commercial fishing sector throughout the year to progress the development of a
new prospective cost recovery regime, ahead of its planned introduction in April 2014. The Treasurer approved a request for a 30% increase in
commercial cost recovery levies for the year commencing 1 April 2013.
Recreational fishing
Victoria’s 700,000 recreational fishers continue to benefit from DPI’s fish stocking program. A record 2.9 million native and salmonid fish were
stocked into waters across the state over the past year, including more than one million Murray cod and golden perch and more than 630,000
salmonids. Chinook salmon were stocked for the first time since 2006.
Figure 9: Native and salmonid fish stocking – 1999 to 2013
Source: DPI
The Victorian Government’s Recreational Fishing Initiative is delivering improvement projects across Victoria for new infrastructure such as boat
ramps, angler access, fishing platforms, fish cleaning tables and fish passage. Thirty-eight projects have now been completed with another
thirty-three underway.
DPI also completed a number of key research projects including:
•
a survey of snapper breeding in Port Phillip Bay which recorded the best summer of breeding in eight years, an indication of potentially higher
catch rates for fishers in the future
•
a survey of recreational fishing licence holders to help identify key priorities of anglers and opportunities for future investment
•
research work on trout cod and Macquarie perch survival and growth in recreational lakes.
DPI continued to consult with recreational fishers through state wide and regional round table meetings, via surveys and by direct engagement
with key representative bodies such as VRFish. Angler suggestions gathered from round table meetings were published on DPI’s external
website. The department also connected with the recreational fishing community via its Facebook page, the smartphone app and other social
media.
DPI also supported the Victorian Auditor-General’s Office’s performance audit of DPI’s Management of Freshwater Fisheries. The final audit
report was tabled in Parliament in March 2013.
Aboriginal fishing
The recently released Aboriginal Fishing Strategy focuses on three key outcomes:
•
Recognition of customary fishing rights for recognised Traditional Owner settlement groups
•
Better economic opportunities for all Aboriginal people in fishing and related industries
•
Sustainable fisheries management in collaboration with Traditional Owners.
Fisheries Victoria engaged in a process led by the Department of Justice which culminated in an agreement in May 2013 between the Dja Dja
Wurrung Traditional Owner Group and the Victorian Government to settle the group’s native title claim over their traditional lands north of Ballarat
and west of Bendigo.
Education and enforcement
DPI’s fisheries education and enforcement program continued to be directed by an intelligence-led education and enforcement model, which
uses a robust methodology for transparently assessing risks and planning and prioritising its compliance work. Strategic compliance priorities
were published on the DPI external website for the first time in 2012-13, as was information on enforcement outcomes including compliance
performance statistics, major compliance operations and court prosecutions.
The first of three new fisheries patrol boats was launched by the Minister for Agriculture and Food Security in March 2013. This boat will be based
at the Mornington Fisheries Station and will boost DPI’s enforcement capability in the region.
DPI supported the Victorian Auditor-General’s Office’s performance audit of Effectiveness of Compliance Activities: DPI and DSE. The audit
report was tabled in Parliament in October 2012.
DPI continued to connect with the wider community through an activity-based learning program at the recently refurbished Marine and Freshwater Discovery Centre at DPI’s Queenscliff site. More than 37,000 people visited the centre during 2012-13. A mobile outreach program also
engaged communities at locations where fishing activities occur. The program connected with more than 46,000 people over the year, with a DPI
presence at the Goulburn Fish Festival in 2012, the Lake Bolac Eel Festival in 2013 and several other metropolitan and regional community
events.
The program also encouraged community members to report illegal fishing activity to 13FISH – the Fisheries Intelligence Reporting Line.
13FISH received more than 1650 calls from members of the public during 2012-13.
Game
Victoria provides some of the best recreational game hunting opportunities in Australia. Game hunting is managed
sustainably, without placing the conservation status of any game species at risk.
In 2012-13, DPI’s role was to responsibly manage and secure access to game for current and future generations.
Sector overview
Eight species of native duck, one species of native quail, six species of introduced deer and several species of introduced game birds can be
legally hunted in Victoria. There are over eight million hectares of public land on which game can be hunted in the state. Hunting can also occur
on private land with the permission of the landowner.
There are over 43,000 licensed hunters in Victoria, an increase of 46% in the last decade. Introduced game birds are predominantly hunted on
private farms. Approximately 41,000 deer were harvested in 2012, together with 508,000 ducks and 130,000 stubble quail.
Game hunting has been estimated to generate approximately $100 million each year, supporting industry and providing benefits to regional
economies. Industries that benefit from game hunting include the firearms, ammunition, outdoor clothing and camping industries, as well as the
manufacturers of boats, vehicles and suppliers of hospitality services. Game hunting also creates incentives to conserve habitats and maintain
cultural and traditional pastimes.
DPI’s role
DPI’s key responsibility in recreational game hunting was to ensure that it was conducted in a sustainable, safe and humane way. DPI managed
game hunting through a statewide model that combined operational policy, management, science, education and enforcement services.
Through Game Victoria, DPI worked closely with hunting organisations and other land and natural resource management agencies. Key government partners included Victoria Police, Parks Victoria and DSE. Game Victoria was also responsible for providing executive support to the
Victorian Hunting Advisory Committee, an independent advisory committee to the Minister for Agriculture and Food Security on game hunting in
Victoria.
Regulations
The new Wildlife (Game) Regulations were introduced on 11 September 2012 to ensure the sustainable, safe and humane harvest of game
species. Prior to their introduction, a major review of the old regulations was undertaken and a regulatory impact statement released for public
comment. Over 500 responses were received, considered and responded to.
The new Regulations set hunting seasons, bag limits and methods of take and ensure equitable sharing of game resources. Previous arrangements have been modernised to respond to advances in technology, reduce unnecessary administrative burden and introduce mechanisms to assist emerging industries.
The new regulations build on the Victorian Government’s commitment to promote the growth of hunting businesses across the state while
providing enhanced opportunities for Victoria’s 43,000 licensed game hunters to enjoy their recreation.
Education and communication
Education is an important component of game management, ensuring that hunters are aware of the rules and regulations about where, when
and how they may hunt game in Victoria. A well informed hunting community maximises voluntary compliance and leads to better social and
environmental outcomes.
In December 2012, DPI released a new iPhone app, ‘Game Hunting Victoria’. The app includes information on hunting season dates and locations, legal hunting times for any game species, bag limits, game species, duck calls, access to maps and firearms safety. The app is available
free of charge and has had over 10,000 downloads.
The annual Victorian Hunting Guide was mailed to all holders of a game licence. Guides were also made available through the DPI Customer
Service Centre and Regional Offices throughout the state. The Guide provides a variety of information on game hunting including bag limits,
season dates, hunting methods, firearms safety and how to apply for and renew game licences. The Guide was updated to reflect changes to
the game hunting regulations and is available online.
Compliance
In 2012-13, DPI’s game hunting compliance program used a combination of education and enforcement to maximise voluntary compliance and
target known or emerging areas of non-compliance.
Due to the close link between firearms and game hunting, Game Victoria Officers worked closely with Victoria Police to conduct joint operations
across the state, ranging from road blocks and ad-hoc responses to broad-scale major operations. The compliance program also encouraged
community members to report suspected illegal game hunting activity to the DPI Customer Service Centre.
Illegal spotlighting of deer and duck hunting were focus areas for compliance operations for 2012-13. A number of prosecutions resulted from
joint Game Victoria/Victoria Police spotlighting patrols. Over 130 field-based staff contributed to the management of the opening weekend of the
2013 duck hunting season, the largest planned operation during 2012-13.
Game Victoria’s Game Officers and Game Managers connected to the grassroots hunting community by regularly attending meetings, talks,
presentations and workshops held by local hunting organisations.
Shotgunning Education Program
The Victorian Shotgunning Education Program is designed to improve the efficiency and effectiveness of gamebird hunters, thereby minimising
waterfowl wounding and animal welfare concerns. Game Victoria engaged the world’s leading expert ballistician to assist in the development of
a comprehensive and complete program of education, capacity building and delivery.
A standardised training program and manual were developed in 2012-13 to assist with the roll-out of a one-day, in-field training workshop, to
commence in November 2013. The workshop is designed to teach hunters to understand their own skill level, improve their shooting skills,
understand their equipment and improve their distance estimation skills. The field workshops will be delivered by more than 20 expertly trained
volunteers from Field and Game Australia and the Sporting Shooters’ Association of Australia.
Indigenous access to game resources
Game Victoria engaged in a process led by the Department of Justice which culminated in an agreement in May 2013 between the Dja Dja
Wurrung Traditional Owner Group and the Victorian Government to settle the group’s native title claim over their traditional lands north of Ballarat
and west of Bendigo. Traditional Owner access to game resources was included as part of the settlement.
Forestry
Forestry is an important part of the social and economic fabric of Victoria, providing jobs, income and products derived
from a natural, sustainable and renewable resource.
In 2012-13, DPI’s role was to responsibly manage and secure access to forests for current and future generations.
Sector overview
In the past three years, the number of people employed in Victoria’s forest industries has declined by approximately 11%, down from an estimated 23,825 in 2009 to an estimated 21,222 in 2012. These figures include all people working for Victorian-based forest industry businesses in
the growing, services to forestry, primary processing and secondary processing sectors.
Annual volumes of timber harvested in Victoria declined in native forestry in 2011-12 (down 16% to 1.5 million cubic metres) and softwood
plantation timber (down 8% to 3.5 million cubic metres), while annual harvested volumes almost doubled for hardwood plantation timber (up 94%
to 1.5 million cubic metres). Plantation areas in Victoria remained steady in 2011-12, with around 200,000 hectares of hardwood plantations and
around 225,000 hectares of softwood plantations.
There was a corresponding decline in the annual gross value of native timber harvested in Victoria in 2011-12 (down 11% to $123 million) and
softwood plantation timber (down 7% to $235 million), while the gross value of harvested hardwood plantation timber increased significantly (up
70% to $97 million).
DPI’s role
DPI has a variety of roles in Victoria’s forest industries. These include:
•
operational decision making through the management of timber resources including allocation orders and timber release plans for VicForests, wood utilisation plans for small-scale timber harvesting in western Victoria and the legislated wood pulp supply agreement with Australian Paper
•
accountability and reporting activities such as developing forest industries policy, coordinating delivery of the Timber Industry Action Plan,
and supporting the Minister for Agriculture and Food Security as relevant Minister for VicForests
•
regulatory roles such as acting as public safety manager in timber harvesting operation areas, undertaking the coordination, management
and oversight of timber harvesting operator licences, issuing Forest Produce Licences and supervising of small-scale timber harvesting in
western Victoria.
Timber Industry Action Plan
As part of the Timber Industry Action Plan, DPI reviewed parts of the Sustainable Forests (Timber) Act 2004 (SFTA), specifically those parts
relating to the allocation and vesting of timber resources to VicForests and Timber Harvesting Operator Licences. The SFTA provides the legislative framework for sustainable forest management and sustainable timber harvesting in state forests.
The review was central to the Government’s commitment to introduce a simplified legislative system that delivers clarity, efficiency, security and
sustainability to the State and the native timber industry.
DPI undertook a comprehensive engagement process, including a public consultation report and submission process, to ensure that key
stakeholders and the broader community had an opportunity to provide input to the review.
The final report of the review was presented to the Minister for Agriculture and Food Security in late 2012. Subsequent to the review, the Sustainable Forests (Timber) Amendment Act 2013 received Royal Assent in June 2013.
Protestor management
A new public safety zone declaration was introduced on 23 December 2012. The new declaration clearly prohibits public access to operational
timber harvesting coupes, and applies to any coupe (and a 150m safety buffer) specified in a VicForests Timber Release Plan or DPI Wood
Utilisation Plan.
As a result of the changes, public safety zones now occupy a smaller total area in state forests, with access only prohibited while harvesting
operations are underway. However, the clear prohibition on access to operational timber harvesting coupes means that unlawful intruders now
face a greater range of charges.
DPI responded to seven separate protests in timber harvesting coupes in 2012-13. All protests were successfully managed with minimal disruption to timber harvesting.
Review of forestry management
DPI completed a review to update timber resource information and provide new estimates of sustainable harvest levels for all major forest areas
in Western Victoria. The review also investigated improved silvicultural standards and practices, timber allocation and harvesting schedules.
New systems and processes for allocating timber resources and issuing longer term Forest Produce Licences have now been implemented.
Earth Resources
Victoria has a significant earth resources sector with a range of important commodities including brown coal, gold,
petroleum, mineral sands and base metals, as well as emerging industries such as geothermal and geosequestration
(carbon storage).
In 2012-13, DPI’s role was to responsibly manage and secure access to earth resources for current and future generations and to secure investment in coal, gas, renewables and targeted mineral resources
Sector overview
In 2011-12, the earth resources sector contributed $7.45 billion to Victoria’s Gross State Product (around 2.2%). This includes production value
of minerals and extractives of approximately $2 billion (excluding brown coal) and $58.6 million on exploration. Of the total land area in Victoria
available for exploration, approximately 46 per cent is currently under exploration licence.
Victoria’s earth resources include brown coal, petroleum and mineral sands and are used in electricity generation, petroleum refining, industrial
processes, manufacturing and as construction materials. Potential future resources include geothermal energy and geological storage for
greenhouse gases.
The sector employs over 7700 people across Victoria, many based in regional Victoria. The sector contributes to employment both directly in
industries such as manufacturing, and indirectly, in service industries such as catering and cleaning.
DPI’s role
In 2012-13, the department had two divisions responsible for delivering government policy and functions for Victoria’s earth resources.
Earth Resources Development division was responsible for:
•
promoting investment opportunities in Victoria’s earth resources through targeted investment attraction activity and the provision of high
quality geological data and information
•
facilitating projects under development in the state to support economic development
•
providing earth resources policy advice to aid government decision making including legislative and regulatory reform.
Policy, legislative and regulatory reform in the earth resources sector aimed to ensure that frameworks and practices supported investment and
growth, were aligned to best-practice and appropriately managed environmental and social risks.
Earth Resources Regulation Victoria was responsible for the delivery of regulatory services for the minerals, extractive, petroleum, geothermal,
greenhouse gas sequestration and pipeline industries of Victoria.
The division’s core roles in the sector were:
•
licencing, including allocation of licences and revenue collection
•
regulation, including assessment and approvals, audit and incident response
•
engagement and policy, including industry and community engagement and advice and policy development.
The department administered approximately 1700 minerals and petroleum licences, permits and authorities over the 2012-13 year.
Geoscience program
The Geological Survey of Victoria (GSV) generates pre-competitive datasets which are used to inform new earth resource investment opportunities by de-risking exploration. These datasets are used to continually update Victoria’s 3-D geological model, which is used for resource
planning, resource allocation and investment attraction.
In 2013, GSV completed the Victorian Geological Carbon Storage geoscience program. This three year program delivered new insights into the
potential of the Gippsland Basin to geologically store CO2. A complex and detailed 3-D geological model developed during the project shows
potential storage areas.
A comprehensive review of Victoria’s mineral sands endowment in the Murray Basin was also completed during the year.
National regulatory framework
In May 2013, Victoria endorsed the National Harmonised Regulatory Framework (NHRF), a suite of leading practice principles that provide
guidance to regulators in managing development of natural gas from coal seams, ensuring that regulatory regimes are robust, consistent and
transparent across all Australian jurisdictions.
In order to ensure that Victoria’s regulatory framework was aligned with national best practice as set out in the NHRF, the department commissioned an independent review of the adequacy of existing Victorian regulatory arrangements. A number of reforms were identified.
Community engagement
In 2012-13, DPI continued to ensure that communities and key stakeholders were informed and engaged on earth resources issues. In partnership with Southern Rural Water and the Environment Protection Authority, DPI held a series of five information sessions on coal seam gas and
mineral exploration in Leongatha, Sale, Wonthaggi, Bacchus Marsh and Traralgon. Staff with specialist knowledge manned booths over the
course of a day where members of the community were able to ask questions and gather information.
International profile
In April 2013, the Victorian Government supported nineteen Victorian Mining Equipment, Technology and Services sector companies to participate in the Ozmine 2013 conference and associated exhibition in Jakarta. With the assistance of local representatives and Austrade, DPI provided advice to companies wishing to establish entry points into the Asian mining sector.
Other international events at which Victoria promoted its earth resources investment opportunities included:
•
the China Mining Congress and Expo
•
the China - Australia Resources Investment Seminar
•
the Prospectors and Developers Association of Canada International Convention, Trade show and Investors Exchange.
New earth resources budget initiative
Over the last decade, Victoria’s earth resources sector has faced a decline in greenfields exploration and a perception of low prospectivity for
new earth resources developments. The Victorian Government’s Economic Development and Infrastructure Committee inquiry into greenfields
mineral exploration and project development in Victoria (May 2012) identified a number of areas where improvements should be made so as to
attract new investments. To respond to this report and build a strong and prosperous mining industry, the government announced in May 2013
that the 2013-14 Budget would include $27.5 million for a new earth resources initiative. The initiative will fund efforts to attract new investment, increase engagement with the community, implement regulatory reforms and reduce barriers to investment.
Minerals Development Victoria
The Economic Development and Infrastructure Committee (EDIC) 2012 inquiry into greenfields mineral exploration and project development in
Victoria recommended the establishment of a single entry point within government for earth resource projects. EDIC also recommended establishment of processes for improved community and stakeholder engagement.
In May 2013, the Minister for Energy and Earth Resources announced the establishment of Minerals Development Victoria (MDV) to consolidate
existing facilitation and community engagement activities and build capability as the lead government agency in the earth resources sector. MDV
will coordinate input into approvals processes from across government departments and agencies, and assign account managers to engage with
investors over the life of projects.
Revising the definition of low impact exploration
A project to revise the definition of low impact exploration was undertaken in 2012-13 in response to the Victorian Competition and Efficiency
Commission report ‘A Sustainable Future for Victoria: Getting Environmental Regulation Right’. The revised definition now includes a broader
range of activities that have a low environmental impact or are in areas of low risk to the environment. This will significantly reduce regulatory
burden and associated costs to explorers undertaking low impact exploration, while maintaining the same level of protection for the environment
and communities.
Mine stability
The mine stability work program was established in response to the collapse of the North East Batter at Yallourn mine in 2007. Since this collapse
there have been two further significant mine stability incidents in the Latrobe Valley.
In 2012-13, significant progress was made on DPI’s mine stability work program, including:
•
completion of comprehensive stability reviews of Loy Yang, Hazelwood and Yallourn mines and commencement of work to implement the site
specific recommendations
•
commencement of remediation of the Morwell River Diversion and near completion of the Morwell Main Drain
•
completion of the technical investigation into the Morwell River Diversion Collapse and its causes
•
ongoing engagement with mine operators and energy providers to improve mine stability, mitigate environmental risks and ensure reliable
power supply.
Geo-carbon storage
In August 2012 the Peter Cook Centre for CCS Research was launched by the Minister for Energy and Resources. This world class facility is
located at the University of Melbourne and will initially host 30 scientists and engineers working on carbon capture and storage (CCS). The centre
is a collaboration between the Co-operative Research Centre for Greenhouse Gas Technologies (CO2CRC), Rio Tinto, The University of Melbourne and DPI.
CCS has the potential to deliver significant benefits to Victoria, with its large stable storage reservoirs in the Gippsland Basin.
The Victorian Government is contributing $500,000 towards the creation of the Centre, adding to a $6 million contribution from Rio Tinto to create
a research platform that will be integrated with CO2CRC, operator of the successful Otway Project.
A significant proportion of the funding will go towards the continuation of the Otway Project, an international research facility covering subsurface
and monitoring and verification work.
The research outcomes from the University of Melbourne and the Otway Project facilities will support the CarbonNet Project.
Energy
Energy is essential for the economy, businesses and individuals alike. With a privately owned energy sector, Victorians
have access to one of the most competitive retail electricity markets in the world.
In 2012-13, DPI’s role was to enable energy industries to access markets, minimise the impact of emergencies and
ensure consumers benefit from efficient, reliable and safe energy services.
Sector overview
Victoria is part of the National Energy Market (NEM), a regional market which covers Queensland, New South Wales, Victoria, South Australia,
the ACT and Tasmania. Electricity is exported and imported depending on price.
The Victorian energy sector produces around 28% of NEM generation and is a net exporter (about six per cent of generation). In 2012-13,
Victorian generators produced around 54,500 gigawatt hours of electricity. Of this, around 93% was generated from brown coal, 1.4% from gas
and 5.4% from renewable energy resources (hydro, wind, biomass, solar PV).
The sector employs around 14,167 people and provides electricity to 2.33 million residential customers and 330,000 business customers. In
addition, around 265 petajoules of natural gas were consumed by Victorians in 2011-12, equivalent to nearly 25% of Australia’s total natural gas
consumption. Approximately 1.82 million residential customers (82.6% of Victorian households) and 52,000 business customers benefit from
connection to gas.
DPI’s role
DPI’s aim in 2012-13 was to ensure all consumers had access to essential energy services, through:
•
investing in the development of innovative energy technologies
•
building and supporting the energy industry through policy development and regulation
•
helping Victorians manage their own energy use.
Renewable energy
The Solar Systems Project is a joint initiative between the Victorian and Commonwealth Governments and Silex Systems Ltd. Solar Systems has
developed an innovative solar technology that uses mirrors in a dish to track the sun as it moves across the sky, concentrating light on a super-efficient solar receiver. Solar Systems is planning a large scale solar power plant in Mildura with a capacity of around 100 megawatts enough electricity to power more than 35,000 households.
In October 2012, an additional $10M of Victorian Government funding was announced for Stage 2 of the project. In this stage, a 1.5 megawatt
solar pilot plant was built near Mildura, consisting of 40 concentrating photovoltaic dishes. The second stage funding follows the successful
completion of the $5 million first stage, which included a 600 kilowatt pilot installed at Bridgewater.
Subject to the successful completion of milestones and due diligence process, the third stage of the program will include up to an additional $35
million of state government funding for the development of the large scale plant in Mildura.
Coal drying and upgrading
A new $90 million Advanced Lignite Demonstration Program was announced in August 2012. This joint State and Commonwealth initiative will
encourage the development of coal technologies aimed at the drying or dewatering of coal, enabling the development of higher value energy
products including hydrogen, fertiliser and fine chemicals.
The marketing campaign to attract proposals under this program included a targeted international component. Following successful completion
of the Expression of Interest phase, shortlisted proposals were invited to complete a Request for Proposal submission in March 2013. The
detailed review and assessment of submissions is underway with final projects expected to be announced in the latter half of 2013. Construction
is expected to commence during 2013-14.
Coal research and development
An independent company established by the Victorian Government, Brown Coal Innovation Australia (BCIA), continued to co-invest with industry
and research entities in brown coal research and development and skills development. In 2012-13, BCIA expanded its membership base, hosted
its first skills and knowledge workshop for early career researchers, and oversaw the successful completion of four research and development
projects.
Carbon capture and storage
The CarbonNet project is investigating the potential for carbon capture and storage (CCS) in Gippsland. The region is home to a significant
proportion of Victoria’s coal and petroleum resources, with the nearby Latrobe Valley home to power stations responsible for generating more
than 90 per cent of the state’s electricity. The offshore Gippsland Basin has been found to contain both the best quality and largest volume of
CO2 reservoirs of the 25 major basins across Australia (2009 National Carbon Task Force).
The project is exploring the potential to capture and store 1-5 million tonnes of CO2 per year, with the possibility of scaling up. Successful implementation of this project could be the starting point for an expanding commercial scale carbon transportation and storage system, enabling a
significant reduction in carbon emissions from electricity in Victoria and facilitating investment in Victoria’s earth resources, including, potentially,
for export.
In February 2012, CarbonNet was selected by the Australian Government as a CCS Flagship project and awarded an additional $100 million in
joint Commonwealth and Victorian government funding for feasibility studies. This feasibility work continued in 2012-13 and is expected to
conclude in 2014-15. In October 2012, CarbonNet was endorsed by the Carbon Sequestration Leadership Forum, an international climate
change initiative. Endorsement gives CarbonNet greater access to international debate and CCS research, as well as opportunities to collaborate with the international CCS industry.
Smart Meters
A major focus for government in 2012-13 was on bringing forward benefits to consumers from the Smart Meter program. Smart meters continue
to be rolled out to all residential and small business consumers in Victoria by the electricity distribution businesses. By the end of June 2013,
approximately 2.2 million smart meters had been installed.
Following close consultation with industry and key consumer and welfare groups, it was announced in September 2012 that Victorians will have
the option of moving to flexible pricing offers for electricity from mid-2013. The availability of flexible pricing offers is designed to provide energy
customers with more options to reduce their electricity bill, while also providing broader benefits by reducing the need for expensive network
upgrades and new generating plants which elevate costs for all consumers. Flexible pricing gives customers the choice of plans based on
off-peak, ‘shoulder’ and peak times of the day.
A ‘safe try’ period will continue up until March 2015, during which households will be able to move to a new flexible price offer with their current
retailer, with the option to switch back to their previous tariff without penalty if they are uncomfortable with the change. The independent
cost-benefit analysis on the smart meter rollout found that a key benefit of smart meters was the ability to introduce widespread flexible pricing
options, which could deliver economic benefits of up to $229 million to the state. Flexible pricing will be available from participating energy
retailers to customers with smart meters.
In addition to announcing the introduction of flexible pricing, the Victorian Government launched its ‘Switch On’ website and campaign in August
2012. Switch On is designed to provide practical information to consumers and help Victorian households take charge of their electricity bills
and ease cost of living pressures.
Energy market reform
Throughout 2012-13, the Victorian Government sought to ease cost of living pressures by advocating for energy market reform through its role as
a member of the Standing Council of Energy and Resources. Measures included advocating for reforms to the merits review arrangements to
better protect the interests of consumers, submissions to the Australian Energy Market Commission and the Productivity Commission for reforms
to network pricing arrangements, and the passage of legislation to close a legal loophole that would have cost Victorian consumers up to $94
million in additional electricity supply charges.
Solar feed in tariffs
A new, fairer solar feed in-tariff scheme for electricity exported to the grid was launched on 1 January 2013. This scheme delivered on the VCEC
recommendations which found that offering over-generous feed-in tariffs to new solar customers would result in all Victorians, including vulnerable families, paying even more on their electricity bills to subsidise households with rooftop solar.
VCEC recommended establishing a feed-in tariff that is sustainable, predictable and free from cross-subsidies. The new feed in tariff is set at
eight cents and is based on the wholesale price of electricity as recommended by VCEC. The new feed in tariff replaces the former 25 cent
Transitional Feed in Tariff which was closed to new customers on 31 December 2012.
Powerline Bushfire Safety Program
The Victorian Government established the Powerline Bushfire Safety Program (PBSP) in December 2011 to manage the implementation of
recommendations 27 and 32 of the Victorian Bushfire Royal Commission. The program aims to reduce the risk of bushfires caused by electrical
assets without having a significant impact on electricity supply reliability. As part of the plan, Victoria’s electricity distribution businesses are
required to invest an estimated $500 million in new generation electrical asset protection and control equipment, which will deliver major improvements in bushfire safety. In addition, the Government will contribute $250 million towards replacing the most dangerous powerlines in the
state and on measures to mitigate the impacts on supply reliability of new network safety measure, and related R&D activity.
The PBSP will be fully implemented over a 10 year period, with a total investment of $750 million. The program is being managed via five discrete
and interrelated projects, each fulfilling a separate but complementary scope requirement. Improved powerline safety must be integrated with the
existing framework for power distribution and regulation in Victoria.
A number of upgrades to powerlines in rural Victoria were undertaken in 2012 to reduce the risk of related fires for the 2012-13 bushfire season.
Single wire earth return lines in the areas of highest bushfire risk are progressively having their automatic circuit reclosers (ACRs) upgraded from
manual to remote controlled technology. On high bushfire risk days the fault tolerance on these powerlines, which are often located in remote
areas, can now be reduced without the need to send out a service truck. Under the direction of Energy Safe Victoria, 591 ACRs have been
installed in high risk areas, with 410 by SP AusNet, 2 by Jemena and 179 by Powercor.
As a consequence of reducing the fault tolerance, in certain circumstances there is an increased risk of power outages in high bushfire risk areas
on total fire ban and code red days. Some people are critically dependent on electricity for their health and wellbeing, including the aged and
people with a disability. The Local Infrastructure Assistance Fund was established to reduce the risk that critically dependent people will be
affected by electricity outages as a result of the PBSP. This is achieved through funding the purchase and installation of backup electricity
generators for eligible residential care facilities.
The PBSP successfully rolled out five back-up generators to residential care facilities in 2012-13, with twenty more generators expected to be
installed in 2013-14. Over the term of the program it is envisaged that up to 400 facilities will gain access to a generator, assisting thousands of
vulnerable Victorians.
The PBSP will be fully implemented over a 10 year period, with a total investment of $750 million. The program is being managed via five
discrete and interrelated projects, each fulfilling a separate but complementary scope requirement. Improved powerline safety must be integrated with the existing framework for power distribution and regulation in Victoria.
A number of upgrades to powerlines in rural Victoria were undertaken in 2012 to reduce the risk of related fires for the 2012-13 bushfire season.
Single wire earth return lines in the areas of highest bushfire risk are progressively having their automatic circuit reclosers (ACRs) upgraded from
manual to remote controlled technology. On high risk days the fault tolerance on these powerlines, which are often located in remote areas, can
now be reduced without the need to send out a service truck. Under the direction of Energy Safe Victoria, 591 ACRs have been installed in high
risk areas, with 410 by SP AusNet, 2 by Jemena and 179 by Powercor.
As a consequence of reducing the fault tolerance, in certain circumstances there is an increased risk of power outages in high bushfire risk areas
on total fire ban and code red days. Some people are critically dependent on electricity for their health and wellbeing, including the aged and
people with a disability. The Local Infrastructure Assistance Fund was established to reduce the risk that critically dependent people will be
affected by electricity outages as a result of the PBSP. This is achieved through funding the purchase and installation of backup electricity
generators for those people most reliant on electricity.
The PBSP successfully rolled out five back-up generators to residential care facilities in 2012-13, with twenty more generators expected to be
installed in 2013-14. Over the term of the program it is envisaged that up to 400 facilities will gain access to a generator, assisting thousands of
vulnerable Victorians.
Corporate and
Business Management
Structural changes
As part of the Machinery of Government changes outlined on page 4, DPI’s portfolio strategy and business services group began transition to
the DEPI corporate services group on 15 April 2013.
Legislation
Energy and Earth Resources
DPI supported the passage of six bills through Parliament for the Energy & Resources portfolio. These included bills for feed-in tariffs, flexible
pricing for electricity under the advanced metering program, energy efficiency, and enhanced regulation of the mining and offshore resource
sectors. New principal regulations were made for bushfire mitigation by electricity network businesses, and a range of amending regulations
and orders in council were made with respect to flexible pricing, energy efficiency and gas pipelines.
Agriculture
DPI supported the passage of three bills through the Parliament for the Agriculture portfolio including two omnibus Bills. These bills made
amendments to the Domestic Animals Act 1994, the Agricultural and Veterinary Chemicals (Control of Use) Act 1992, the Livestock Management
Act 2010, the Prevention of Cruelty to Animals Act 1986, the Impounding of Livestock Act 1994, the Livestock Disease Control Act 1994, the
Food Act 1984 the Sustainable Forests (Timber) Act 2004 and the Traditional Owner Settlement Act 2010. New principal regulations were
re-made for game under the Wildlife Act 1975 and to provide for over 500 infringeable offences under the Conservation Forests and Lands Act
1987. A range of amending regulations and other subordinate legislation was made with respect to livestock management, livestock disease,
fisheries, codes of practice, plant health, domestic animal businesses, disease declarations, game and safety in timber harvesting zones.
Regional engagement
The newly established Regional Leadership Branch boosted DPI’s engagement and profile with key external partners, stakeholders and rural
communities.
DPI provided strong input into the development of Regional Growth Plans, which ensured the contribution of productive agriculture, earth resources and energy towards strengthening regional development in Victoria was well reflected.
Efficiency
DPI continued to strengthen its financial management processes and identify further efficiencies.
The Technology Branch worked with Divisional staff to identify and prioritise processes and assets to provide efficiencies to both DPI and its
stakeholders in the area of science and farming.
In 2012-13, prompted by the need for greater efficiencies and the desire to have a critical mass of DPI staff at sites to improve wellbeing and
career development opportunities, DPI conducted a review of its statewide office accommodation. This resulted in the consolidation of a
number of sites.
Financial review
Review of operations and financial results
DPI’s financial summary for 2012-13 is provided in the following table. Specific details are included in the financial statements.
Table 1: Five-year financial summary
Departmental
(controlled)
activities
2012-13
2011-12
2010-11
2009-10
2008-09
$’000
$’000
$’000
$’000
$’000
Income from
government
451,856
442,535
499,981
501,717
519,355
Total income from
transactions
512,825
489,172
540,923
551,193
564,330
Total expenses
from transactions
536,653
495,338
543,400
561,319
568,145
Net result from
transactions
(23,828)
(6,166)
(2,477)
(10,127)
(3,815)
Net result for the
period
(19,259)
(3,136)
(3,374)
(14,251)
(5,751)
4,669
24,663
24,756
28,877
27,139
1,042,067
841,190
825,736
633,443
610,700
434,150
245,089
254,530
289,042
269,409
Net cash flow
from operating
activities
Total assets
Total liabilities
Figure 1: 2012-13 total income from transactions by income source
$’m
%
366.6
71%
Section 29 appropriations
85.2
17%
Commercial Trust
46.8
9%
Legislative trust revenue
10.3
2%
3.9
1%
512.8
100%
Income Source
State appropriations
Other revenue
Total revenue
Figure 2: 2012-13 total expenses from transactions by output
Output
$’m
%
Primary industry policy
86.5
16%
Regulation and compliance
111.3
21%
Strategic and applied
scientific research
251.6
47%
Practice change
87.3
16%
Total expenses
536.7
100%
Overview
In 2012-13, the department’s net result for the period was a deficit of $19.3 million, $16.1 million higher than the 2011-12 deficit of $3.1 million.
The main driver for the 2012-13 result was a loss on non-cash items, as well as the planned use of $6.1 million of the Department’s prior years
accumulated surpluses.
Total net assets continued to grow with an increase of $11.8 million, to $607.9 million in 2012-13. This was comprised of an increase in total
assets of $200.9 million, offset by a slightly lower increase in total liabilities of $189.1 million for the period.
There was an overall decrease in cash and cash equivalents of $11.1 million for the 2012-13 financial year, to bring the current cash balance to
$60.1 million. The decrease in cash reflects the transfer of revenue to the Commonwealth for Petroleum Licence Fees collected on their behalf
from prior years, and a decrease in trust balances reflecting departmental expenditure against prior year unspent trust.
Financial performance
For the financial year ended 30 June 2013, DPI recorded a deficit net result of $19.3 million. This result was attributed to the recognition of an
additional expense of $9.6 million associated with the accounting treatment of the Biosciences Research Centre Joi nt Venture at commercial
acceptance, reflecting that LaTrobe University has been effectively provided with a grant to undertake the Joint Venture arra ngement, as well
as the recognition of the state’s interest in the Showgrounds Joint Venture deficit of $7.4 million.
In addition, the department accessed $6.1 million from prior year accumulated surpluses as part of the implementation of long-term efficiencies. The 2012-13 result was offset by a $2.7 million operating surplus in trust fund activity, as well as a net gain of $3.2 million arising from
the revaluation of commercial native forests.
Total income from transactions has increased by $23.7 million in 2012-13, reflecting increased income from Government of $9.3 million for new
initiatives approved in the 2013-13 Budget Papers, including the Advanced Metering Infrastructure and Powerline Bushfire Safety program. The
remaining increase in income from transactions of $14.3 million primarily reflects Commonwealth revenue recognised upon the completion of
milestones for the feasibility stage of the CarbonNet program, as part of the Commonwealth Government’s $70 million funding commitment to the
project, and grant funding received for the Solar Silex program and flood recovery activities.
Financial position - balance sheet
The majority of DPI’s assets were land, buildings and scientific equipment used by the department to deliver research and development for
Victoria’s agriculture, fishing, timber and earth resources industries.
Net assets increased by $11.8 million over the year to $607.9 million, mainly due to an increase in total assets of $200.4 million, with a slightly
lower increase in total liabilities of $189.1 million.
Total assets increased by $200.9 million relating to an increase in non-financial assets of $210.8 million, primarily arising from the recognition of
the state’s share in jointly controlled assets of $192.2 million in the BioSciences Research Centre Joint Venture, the gain on revaluation of
commercial native forests and coupe transfer from VicForests of $5.6 million, as well as the continued investment in new and upgraded facilities
and information technology systems including the construction of the Attwood Redevelopment and continued development of the Resource
Rights Allocation and Management system. This was offset by a decrease in financial assets of $10.4 million, reflecting the transfer of revenue to
the Commonwealth for Petroleum Licence Fees collected on their behalf, and the expenditure of prior year unspent trust.
Total liabilities increased by $189.1 million mainly due to the recognition of the finance lease liability of $202.2 million as part of the accounting
treatment of the Biosciences Research Centre Joint Venture, reflecting the state’s share of principal repayments over the 25 year project term to
the Concessionaire for the design and construction of the AgriBio facility. This was offset by a decrease of $6.3 million in leave provisions due to
the implementation of long-term efficiencies, a reduction in Deposits Repayable of $2.5 million reflecting the transfer of Petroleum License Fees
to the Commonwealth, and a decrease in Finance Motor Vehicle lease liabilities due to a reduction in the number of vehicles leased.
Cash flows
The decrease in net cash flows from operating activities of $20.4 million from the previous year primarily reflects $9.6 million additional expense
associated with the accounting treatment of the Biosciences Research Centre Joint Venture, and departmental expenditure against prior year
unspent trust.
Cash flows from investing and financing activities has also increased from the previous year by $214.9 million and $217.8 million respectively.
The increase in cash flows from investing activities primarily represents the State’s investment in the BioSciences Research Centre Joint Venture
assets of $192.2 million, the transfer of Petroleum License Fees to the Commonwealth of $2.5 million, as well as increased expenditure on
non-financial assets reflecting the progress of various capital programs administered by the department.
The increase in cash flows from financing activities represents the recognition of the BioSciences Research Centre Joint Venture finance lease
liability of $202.2 million, as well as an increase in Owner Contributions from Government of $16.3 million reflecting the increased funding to the
department in line with the progress of capital initiatives, offset by lower Motor Vehicle finance lease liabilities payable.
Subsequent events
Refer to Note 33. Subsequent Events of the Financial Statements.
People and culture
Organisational Capability
Public administration values and employment principles
The Public Administration Act 2004 outlines the values and employment principles that guide behaviour in the public sector organisation. In
2012-13, DPI demonstrated its commitment to the Victorian Public Sector values of upholding public sector conduct, managing and valuing
diversity, managing underperformance, reviewing personal grievances and selecting on merit.
People strategy
2012-13 continued to provide opportunities for the department to invest in our people and deliver a range of initiatives. These initiatives contributed to the department’s ability to strengthen workforce capability, flexibility and resilience.
Key achievements included:
Graduate recruitment
In 2012-13, DPI increased its commitment to developing future leaders and industry experts by recruiting 12 graduates through the VPS and
Science Graduate Program. All roles were in specialty areas and graduates were dispersed across all groups of the department.
Learning and development
DPI conducted over 120 internal staff workshops which were attended by 1310 staff, including:
•
24 staff who were sponsored to participate in a range of external leadership programs
•
14 staff who were selected to undertake the new Graduate Certificate in Management
•
24 managers from across the department who were sponsored to participate in DPI’s Coaching Panel
•
20 emerging leaders who successfully completed studies in the Diploma of Management.
The DPI People Leadership Development Framework, identifying the critical capabilities and learning pathways of DPI people managers, was
further embedded in program identification and design.
An eLearning program to educate managers about how to effectively manage unsatisfactory work performance was developed. DPI’s suite of
orientation programs were revised to ensure alignment to changed structures and priorities.
The Learning @ DPI e-Newsletter was developed and launched to promote learning and development opportunities to all staff. An on-line
Expression of Interest form and database was developed and implemented to enhance scheduling of structured learning and development
programs.
Leadership and talent management
There have been a number of initiatives to build leadership capability, including the annual External Leadership programs expression of interest
process, leadership training programs which have been enhanced by senior leaders sharing their own leadership journey and insights, and 360
degree feedback and executive coaching for individuals and for leadership teams
Team development
A number of customised team and leadership workshops have been delivered to support leaders and teams build on their strengths and identify
where the need to develop. These workshops are designed to support business strategy, plans and transition.
Reward and recognition
The Primary Elements Awards are DPIs premier recognition program and one of the many ways in which DPI acknowledges the work efforts of
its people. In 2012 the Primary Elements Awards winners were:
Collaboration & Internal Partnerships: Flood Recovery
Clive Noble, Jacinta Rossi, Mark Bryant, Greg Young, Aaron Dodd
Environmental Sustainability: Energy in Dairy Project
Claire Swann – Farm Services Victoria, Bendigo
Innovation: Fisheries Engagement via Social Media
Marc Ainsworth, Philippa Dunstan, Steve Lavell, Travis Dowling, Anthony Forster, Ian
Parks, Chris Padovani, Dane Robinson, Iain Bruce
Leadership: Kate Linden, Director Meat and Wool Services, FSV Rutherglen, for displaying consistently high levels of leadership within her
program, the branch, across the division, as a senior manager within DPI, and more broadly with DPI’s partners.
Living the Values: Sally Bourchier, Project Support Officer, Agricultural Resources, FFSR Ellinbank, for her project support officer role within
Future Farming Systems Research (FFSR), support to three of the seven Research Managers within FFSR as well as project support for the
Agriculture and Food Industry Policy branch.
Policy Initiative: Egg Standard Implementation Team
Amanda Ellery, Margaret Darton, Sue Laidlaw, Alda Pellegrini, Yonatan Segal
PrimarySafe Initiative: Attwood Health and Safety Representatives
Kim Andrews, Rebecca Grant, Ben Roddy, Terina Ogden, Bronwyn Kerkhoff,
Michelle Hong, Jodie Crowder
Service Delivery: Powerline Bushfire Safety Program
James Golden and Neil Saul, Energy Sector Development, Melbourne
Young Achiever: Alyce Parker, Project Officer, Recreational Fishing Initiative, Fisheries Victoria, Melbourne, for an outstanding year building
networks within DPI, the Victorian and local government, and with recreational stakeholder groups; leading the development of Australia’s first
official iPhone application for the both the Recreational Fishing Guide and the Hunting Guide; and her innovative and successful ways of engaging with stakeholders.
Workplace relations
The department recorded no industrial relations incidents that resulted in lost time in 2012-13.
There were 12 grievances reported in 2012-13. The table shows grievances by outcome and gender.
Outcome
2012-13
2011-12
2010-2011
2009-10
Ineligible
2
1
0
0
Withdrawn
2
2
1
2
Suspended
0
0
0
0
Resolved
6
8
5
10
Selection grievance upheld
0
0
2
0
Selection grievance rejected
0
2
1
2
Active
2
0
2
0
12
13
11
14
Male
7
9
8
10
Female
5
4
3
4
Total
Grievance by gender
Workplace health and safety
Consultation
DPI recognises the clear benefits of a focus on safety within all departmental workplaces. The consultative structures under the Occupational
Health and Safety Act 2004 (‘OHS Act’) are supported and provided with funding to plan and implement solutions to workplace health and safety
issues. The department’s OHS action planning process, which is conducted through a localised consultative framework by the site OHS
Committee, is used to identify and control health and safety risks effectively at the source.
OHS consultation is reflected in the Work Health and Safety Strategy 2011-14 and the underpinning three year action plan.
Incident reporting and analysis
DPI maintained the Safety Incident Management System (SIMS), a comprehensive incident recording system which supports line management
responsibility for managing the health and safety of all employees. An upgrade to SIMS, including the development of a more user-friendly
interface, was completed in June 2012 and used throughout the year.
The number of incidents reported across the department in 2012-13 increased by approximately 8% compared with 2011-12. However, the
number of reported incidents with an injury decreased by 30% over the same time period.
Emergency management
DPI undertook a range of emergency management activities to support employee health and safety during the year. Priority was given to the risk
assessment of high risk work practices to ensure appropriate health monitoring and the effective delivery of emergency compliance medicals.
DPI continued to actively participate as a partner in the Network of Emergency Organisations Safety Health and Wellbeing Committee.
Promoting health and safety
DPI celebrated WorkSafe week with a range of activities conducted in all workplaces across the state. These included healthy morning teas,
seminars on relevant topics and social events. Many workplaces coordinated formal workplace OHS inspections to take place during WorkSafe
week, in order to involve employees in identifying and remedying workplace issues. Health, safety and wellbeing were actively promoted through
the DPI wellbeing portal PrimaryHealth.
WorkCover and injury management
The department’s WorkCover and injury management continued to focus on early intervention and return-to-work for injured employees. This
included the early engagement of managers in the process to decrease the duration of time lost from work, while providing a supportive and
positive workplace for all employees.
Occupational health and wellbeing
In 2012-13, DPI continued its comprehensive and systematic program of health and wellbeing checks. A new wellbeing program, PrimaryHealth, which commenced in 2012, provided DPI staff with a 12 month calendar of events, including the regular vaccination program, a series
of health and wellbeing seminars and a wellbeing portal that was personal to each staff member.
Figure 1: Number of incidents and rate per 100 FTE
2008-09
2009-10
2010-11
2011-12
266
446
358
226
11.04
18.86
15.56
10.86
Incidents
Rate per 100 FTE
The number of standard WorkCover claims decreased in 2012-13 compared with the previous year, with a corresponding decrease in the claims
rate per 100 FTE.
This reflects DPI’s focus on effective injury prevention and early intervention with the involvement of managers when injuries and illness occur.
Figure 2: Number of standard claims and rate per 100 FTE
2008-09
Standard Claims
Rate per 100 FTE
2009-10
2010-11
2011-12
2012-13
22
34
26
45
19
0.943
1.452
1.13
2.162
1.120
The number of time lost to WorkCover claims remains low within DPI, as does the time lost claims rate. This underlines the effectiveness of early
intervention coupled with manager involvement in the injury management process.
Figure 3: Number of time lost claims and rate per 100 FTE
2008-09
2009-10
2010-11
2011-12
2012-13
Time Loss Claims
6
7
6
11
3
Rate per 100 FTE
0.257
0.299
0.261
0.529
0.177
The number of 13 week time lost claims has reduced significantly with the focus on early intervention and engagement
of managers in return to work planning. This is also reflected in the total number of claims, with a slight reduction in
numbers.
Figure 4: Number of claims exceeding 13 weeks and rate per 100 FTE
2008-09
2009-10
2010-11
2011-12
2012-13
Claims exceeding
13 weeks time
lost
4
1
3
3
2
Rate per 100 FTE
0.171
0.043
0.13
0.144
0.112
DPI’s WorkCover Premium rate increased slightly in 2012-13. A contributing factor was the significant reduction in staff
numbers, which had a proportional effect on the premium rate.
Figure 5: DPI premium rate 2008 – 2013
2008-09
2009-10
2010-11
2011-12
2012-13
0.71
0.56
0.5435
0.5348
0.5947
WorkCover Premium Rate
Occupational Health and Safety statistics 2009 – 2013
Measure:
KPI
Incidents1:
Hazards reported
2012-13
2011-12
2010-11
2009-10
45
43
51
108
Incidents with
injury
115
163
234
316
Incidents without injury
85
63
73
130
Total number
of reports
made
245
226
358
554
Rate per 100
FTE
14.453
10.86
15.6
18.9
Minor WorkCover claims
9
18
29
23
Standard
WorkCover
claims
19
45
26
34
Total Number
of WorkCover
claims
28
63
55
57
1.62
3.03
1.13
1.452
Standard musculoskeletal
disorder (MSD)
claims
14
9
13
26
Standard stress
claims
2
12
10
1
Standard MSD
claims, per 100
FTE
0.825
0.433
0.565
1.11
Standard stress
claims per 100
FTE
0.112
0.577
0.435
0.043
3
11
6
7
0.177
0.529
0.261
0.299
2
3
3
1
0.112
0.14
0.13
0.043
227
560
355
13
Average claim
costs
$9,805
$51,867
$30,544
$20,569
Fatalities:
Fatality claims
0
0
0
0
Return to work
Percentage of
claims with
100%
tba by Claims
Agent
100%
100%
Number of
claims reported2:
Rate per
100FTE
Time lost
standard
WorkCover
claims
Time lost
standard
claims rate per
100FTE
Number of
claims exceeding 13 weeks
time lost
Rate per
100FTE
Claim costs2:
Total days
compensated
due to injury
RTW plan <30
days
1.
data sourced from SIMS as at 30 June 2012
2.
FTE of 1,696
data sourced from WorkSafe WorkCover agent as at 30 June 2013
3. based on the June 2013
Key Performance Indicators 2012 – 13
Measure:
KPI
Management commitment
Evidence of OHS policy statement,
OHS objectives, regular reporting to
senior management and OHS
Plans.
2012-13
Completed
Completed
Evidence of OHS criteria in purchasing guidelines
Consultation and participation
Evidence of agreed structure of
Designated Work Groups (DWGs),
Health and Safety Representatives
(HSRs), and Issue Resolution
Procedures (IRPs)
Completed
Completed
Compliance with agreed structure
on DWGs, HSRs and IRPs.
Risk management
Percentage of internal audits/inspections conducted as
planned
Percentage of issues resolved
arising from:
Internal audits
100%
80%
n/a
HSR provisional improvement
notices
Training:
Managers andsStaff who have
received training
Induction managers/employees/contractors
OHS roles and responsibilities
managers and employees
HSR Initial
HSR Refresher
Vehicle-related (covers defensive
driving, trailer towing, 4WD,
ATV)
275
212
9
25
122
60
256
45
Hazard Specific (covers confined
spaces, working at heights,
noise, chemicals & plants)
First Aid
Site-based emergency
WorkSafe Victoria interventions
Number of Visits
15
Number of WorkSafe Notices Issued
25
Comparative workforce data
At 30 June 2013, DPI employed 1,696 full time equivalent (FTE) staff across Victoria
Table 1: Full time equivalents (FTE) staffing trends 2009 to 2013
2013
2012
2011
2010
2009
1,696
1,999
2,238
2,337
2,334
Table 2: Summary of employment levels in June of 2012 and 2013
Fixed Term and Casual
Total Staff
Employees
(headcount)
Full time
(headcount)
Part time
(headcount)
FTE
FTE
FTE
June 2013
1,650
1,341
309
1,535
161
1,696
June 2012
1,910
1,557
353
1,773
226
1,999
Ongoing
Employees
Table 3: Details of employment levels in June of 2012 and 2013
2013
2012
Ongoing
Fixed Term and Casual
Fixed Term and Casual
Ongoing
(headcount)
FTE
FTE
(headcount)
FTE
FTE
Male
887
868
74
1040
1015
108
Female
763
667
87
870
758
118
17
17
8
26
26
14
25-34
305
283
64
378
349
91
35-44
515
460
46
546
489
59
45-54
472
448
24
557
527
35
55-64
313
300
17
366
348
24
28
27
2
37
34
3
VPS 1
9
7
9
12
10
12
VPS 2
160
141
21
198
174
29
VPS 3
221
209
13
263
247
24
VPS 4
189
180
17
229
215
24
VPS 5
191
177
8
216
201
18
VPS 6
160
156
8
181
173
17
5
5
1
4
4
2
624
572
79
704
649
96
Executives
18
18
0
21
21
0
Other
73
70
5
82
79
4
Gender
Age
Under 25
Over 64
Classification
STS
Science Adaptives
Notes
1.
2.
Ongoing employees includes people engaged on an open ended contract of employment and executives engaged on a standard executive contract who were active in the last full
pay period of June.
FTE means full time staff equivalent and is rounded to the nearest whole number.
3.
4.
Employees reported with a classification of ‘other’ include the following categories: ministerial chauffeur, principal scientists, Mining Warden and Wild Dog Controller.
All figures reflect employment levels during the last full pay period in June each year.
5.
Excluded are those on leave without pay or absent on secondment, external contractors/consultants, temporary staff employed by employment agencies, and people who are not
employees but appointees to a statutory office, as defined in the Public Administration Act 2004.
6.
7.
The changes to DPI’s staffing profile between June 2012 and June 2013 are the result of voluntary departure packages, natural attrition and the sunsetting of fixed term contracts.
These changes were achieved through a focus on back office and administrative functions and reducing duplicated functions.
As a consequence of policy decisions announced by the Victorian government on 9 April 2013, some functions and associated staff were transferred from the department to other
departments on 3 June 2013. The workforce data disclosed has not been adjusted in accordance with the Administrative Order (No.217) 2013. Refer to Note 4 of the financial
statements for further details.
8.
Figures have been standardised to reflect FRD 29. Consequently all figures now exclude employees on leave without pay and reflect a change in analysis from headcount to FTE.
Executive officer data
An executive officer (EO) is defined as a person employed as a public service body head or other executive under Part 3, Division 5 of the Public
Administration Act 2004. All figures reflect employment levels at the last full pay period in June of the current and corresponding previous re-
porting year.
The definition of an EO does not include Governor in Council appointments as statutory office holders.
The total group of executives is classified into two distinct categories based on the following definitions:
•
‘Ongoing’ executives are executives who are responsible for functions or outputs that are expected to be ongoing at the end of the reporting
period
•
‘Special projects’ executives are executives who are employed for a specific project. These projects are generally for a fixed period of time
and relate to a specific government priority.
For the department’s portfolio authorities (public authorities as defined under the Public Administration Act 2004), an EO is defined as a person
employed as an EO at an annual remuneration rate not less than an EO employed by a department.
The following tables disclose the EOs of the department and its portfolio authorities as at 30 June 2013:
•
Table 1 discloses the number of EOs in the categories of ‘ongoing’ and ‘special projects’ and the total numbers of EOs for the department
•
Table 2 provides a breakdown of EOs according to gender for the ‘ongoing’ category
•
Table 3 provides a breakdown of EOs according to gender for the ‘special projects’ category
•
Table 4 provides a reconciliation of executive numbers presented between the report of operations and Note 31 ‘remuneration of executives’ in the financial statements
•
Table 5 provides the total executive numbers for all of the department’s portfolio authorities
•
Tables 1 to 5 al so disclose the variations between the current and previous reporting periods. Current vacancies are shown in Tables 2, 3
and 5.
Table 1: EOs classified as ‘ongoing’ and ‘special projects’
All
Classification
Secretary
Number
Ongoing
Variations from 11-12
0
-1
Special
projects
Number
Variations from 11-12
Number
Variations from 11-12
0
-1
0
0
EO1
0
0
0
0
0
0
EO2
11
-3
11
-2
0
-1
EO3
TOTAL
7
0
6
0
1
0
18
-4
17
-3
1
-1
Table 2: Breakdown of EOs into gender - ongoing
Male
Female
Variations from 11-12
Vacancies
Number
Number
Variations from 11-12
Secretary
0
-1
0
0
1
EO1
0
0
0
0
0
EO2
9
-2
2
0
4
EO3
3
1
3
-1
3
12
-2
5
-1
8
Classification
TOTAL
Table 3: Breakdown of EOs into gender – special projects
Male
Vacancies
Number
Female
Variations from 11-12
Number
Variations from 11-12
Secretary
0
0
0
0
0
EO1
0
0
0
0
0
EO2
0
-1
0
0
0
EO3
1
0
0
0
0
TOTAL
1
-1
0
0
0
Classification
The number of executives in the report of operations is based on the number of executive posit ions that are occupied
at the end of the financial year. Note 31 in the financial statements lists the actual number of, and amount of remuneration paid to, EOs over the course of the reporting period. The Financial Statement note does not distinguish
between executive levels, nor does it disclose separations, vacant positions, executives whose remuneration is below
$100,000. It includes the accountable officer. Separations are those executives who received more than $100,000 in
the financial year and have left the department during the year. These two are reconciled below.
Table 4: Reconciliation of executive numbers
2013
2012
19
23
Vacancies
8
8
Executives with total remuneration
below $100,000
4
5
Accountable Officer (Secretary)
1
2
Executives with remuneration over
$100,000
Separations
TOTAL exec numbers including vacancies at 30 June
6
8
26
30
Table 5: Number of EOs for the department’s portfolio agencies.
Total
Male
Female
Number
Variations
from 11-12
Vacancies
Number
Variations
from 11-12
Number
Variations
from 11-12
Agricultural
Services
Victoria Pty
Ltd
1
0
0
1
0
0
0
Dairy Food
Safety Victoria
2
0
0
1
0
1
-2
Energy Safe
Victoria
9
0
0
7
0
2
0
Murray Valley Citrus
Board
1
0
0
1
0
0
0
PrimeSafe
1
0
0
1
0
0
0
Veterinary
Practitioners
Registration
Board of
Victoria
1
0
0
0
0
1
-1
VicForests
6
0
0
5
0
1
0
21
0
0
16
0
5
-3
Portfolio
Agencies
Total
Environmental performance
Key achievements
In 2012-13, DPI maintained a diverse portfolio of facilities including farms, research laboratories, aquaculture facilities, education centres, office
buildings and depots. The Department’s environmental reporting approach is in line with Whole-of-Victorian-Government Financial Reporting
Direction (FRD) 24C, however DPI exceeded statutory requirements to report on office-based activities by providing data related to all of its
operational activities.
Key achievements for the 2012-13 reporting year include:
•
A reduction of 17 per cent in energy consumption across reported sites
•
A reduction of 5 per cent in paper reams used
•
A reduction in greenhouse gas emissions from the operation of the fleet by 19 per cent.
Energy
Targets
The following targets applied for 2012–13:
Target: Progressively reduce energy intensity (MJ/m 2) across DPI office facilities.
Result: Met
The department’s energy use (electricity, natural gas and LPG) is measured and reported for 93 per cent of DPI sites across the state, covering
activities such as energy intensive research, farming and agricultural plant breeding as well as office-based activities.
In 2012-13 DPI’s total energy usage remained relatively stable, with overall improvements in electricity consumption (-11 per cent), LPG (-14 per
cent) and natural gas consumption (-36 per cent).
Major reductions in natural gas occurred at Werribee and Mildura, due to the completion of various research activities, and Attwood due to
construction activity.
The new AgriBio facility based at La Trobe University came online during this reporting year. The facility is a combination of offices, laboratories,
animal handling facilities and glasshouses, hosting both La Trobe and departmental staff. The DPI energy consumption component of the
facility (75%) is not reported due to the data being unavailable at the time of publication.
Indicator
2012-13
2011-12
Electricity
LPG
Natural
Gas
Greenpower
Electricity
LPG
Natural
Gas
Greenpower
54,408,3
56
4,266,80
1
15,044,3
34
Not provided
61,073,0
73
4,981,47
1
23,629,0
19
12,214,6
15
GHG associated
with stationary
energy (t
CO2 e)
18,604
256
832
16,707
295
1,213
Percentage
Greenpower
Not provided
20%
11,075
9,293
272.7
273.4
All DPI
activities
Total energy use
(MJ)
Office
only
Energy per
FTE (MJ)
Energy per
m2 (MJ)
Actions undertaken 2012-13
Energy-efficient lighting technology was installed at the Mildura Centre.
Explanatory notes
i.
The recently completed Agribio facility is not included in this table, but will be included in the DEPI reportable portfolio next year, after a full year of operation.
The energy figures were to be provided separately within the commentary, however annual figures were not made available at the time of publication. The
State Chemistry Laboratory at Macleod has also been omitted in this report as the principle lease holder is the Environmental Protection Authority.
ii.
Office energy metrics are based upon electricity usage at a total of 23 sites, a building area of 25,467 m2 and 605.23 FTE. Consumption is based upon meters
connected to purely or largely office locations.
iii. Due to delays in obtaining data, DPI reports all FRD 24C indicators based upon the year beginning 1 April to March 31 to allow for reporting of a full year’s
actual data within the Annual Report. Actions are reported as occurred within the relevant financial year.
iv. National Greenhouse Factors 2011 were used to calculate greenhouse emissions for 2011-12. National Greenhouse Factors 2012 were used to calculate
greenhouse emissions for 2012-13. This may account for year-to-year differences in emissions values.
v.
The data comprises an estimation of 5 per cent for electricity and 34 per cent for natural gas due to data lag. Estimations are based upon the same period for
the previous year, or the previous month where significant reductions are anticipated year-to-year.
Waste
Targets
The following targets apply for 2012–13:
Target: Waste audits cover a minimum of 30 per cent of FTEs.
Result: Met
Target: Recycling rate of 85 per cent or greater.
Result: Not met
The waste generated by processes within the department is divided into three general classes – landfill, compost and recycling. Recycling
includes co-mingled (bottles, cans, plastics, paper and cardboard).
The data presented below represents all non-hazardous solid waste material collected from one working day at eight sites: Spring Street, Ellinbank, Hamilton, Horsham, Queenscliff, Rutherglen, Swan Hill and Tatura. This includes general waste and recycling material from office
areas at all sites and lab areas at relevant sites.
Overall, the total weight of waste collected decreased by 11 per cent. However, there was an increase in waste going to landfill of 13 per cent.
This caused a reduction in the overall recycling rate of six percentage points from 78 per cent in 2012-12 to 72 per cent in 2012-13.
Indicator
2012-13
2011-12
Landfill
Compost
Co-mingled
Landfill
Compost
Co-mingled
E-waste
24,375
5,830
56,588
21,545
6,505
69,520
522
Units of
waste per
FTE
28.89
6.91
67.07
15.48
4.67
49.94
Recycling
rate (%)
72
78
GHG emissions associated with
landfill (t CO2
e)
34
34
Total units of
waste disposed (kgs)
Actions undertaken 2012-13
No waste actions were undertaken in the 2012-13 year.
Explanatory notes
i.
Calculations are based upon 843.68 FTE across eight sites.
ii.
National Greenhouse Factors 2012 were used to calculate greenhouse emissions for 2012-13.
Paper
Targets
The following targets apply for 2012–13:
Target: Purchase a minimum of 95 per cent office paper that has a recycled content of 50 per cent or greater.
Result: Not met
The department measures paper use by reams of paper purchased across all of its managed sites. DPI ensures that the online purchasing
system for office paper preferences 80 per cent recycled content paper. Paper purchased has reduced by 5 per cent between 2011-12 and 2012-13. The department has continued to maintain a high percentage of recycled paper purchased, but is yet to meet its target of 95 per cent.
Indicator
2012-13
2011-12
23,181
24,442
13.64
11.73
80
86
Percentage 50-75% recycled content
(%)
0
0
Percentage 0-50% recycled content
(%)
20
14
Total units used (reams)
Reams/FTE
Percentage 75-100% recycled content (%)
Actions undertaken 2012-13
No paper actions were undertaken in the 2012-13 year.
Explanatory notes
i.
Due to delays in obtaining data, DPI reports all FRD 24C indicators based upon the year beginning 1 April to March 31 to allow for reporting of a full year’s
actual data within the Annual Report. Actions are reported as occurred within the relevant financial year.
ii.
Calculations are based upon FTE of 1,696 (FRD reported figure).
Water
Targets
The following targets apply for 2012–13:
Target: Progressively reduce reliance on potable town water.
Result: Not met
The department’s water use is divided into dedicated office locations and other locations representing combined office and research facilities.
This includes offices, farms, depots, and research centres. The department reports town water data for 39 per cent (16) of its reportable sites
(41). Of the 41 sites, three don’t have town water and the remaining 22 lack data.
The department also utilises bore, creek and rainwater for its farm and aquaculture activities.
Compared with 2011-12, the department’s water use has increased (8 per cent). There have been water leaks at Werribee and Horsham, and
consumption increased at Tatura due to irrigation equipment failure. Town water consumption also increased at Mildura due to a particularly dry
year.
Town water consumption for the new Agribio facility (DPI component) was 17,683 KL for the 2012-13 financial year. The majority of this water is
used within the laboratories and glasshouses.
Indicator
2012-13
2011-12
64,303
59,502
16.92
16.19
0.57
0.57
All DPI activities
Total metered town water consumed
(KL)
Office only
Units of town water consumed per
FTE (KL)
Units of town water consumed per m2
Actions undertaken 2012-13
Stormwater recycling was implemented at the Mildura Centre.
Explanatory notes
i.
The recently completed Agribio facility is not included in this table for consistency between years, but will be included in the DEPI reportable portfolio next year,
after a full year of operation. The water figures are provided separately. The State Chemistry Laboratory at Macleod has also been omitted in this report as the
principle lease holder is the Environmental Protection Authority.
ii.
Water reported consists only of metered town water.
iii. Due to delays in obtaining data, DPI reports all FRD 24C indicators based upon the year beginning 1 April to March 31 to allow for reporting of a full year’s
actual data within the Annual Report. Actions are reported as occurred within the relevant financial year.
iv. 2012-13 office water metrics are based upon town water usage at a total of 6 sites, a building area of 14,359 m2 and 483.47 FTE. This is a reduction from 17
sites from the previous year due to lack of data and high estimation required for those sites.
v.
The total data metrics are based upon town water usage at 16 sites with an estimation of 8 per cent due to a data lag. Estimations are based upon the same
period for the previous year, or the previous month where significant reductions are anticipated year-to-year.
vi. The 2011- 2012 figures have been adjusted to align with the 2012- 2013 reported sites (16) for the purposes of easier comparison. A total of 8,957 KL was an
estimated consumption across a total of 22 sites.
Transport
Targets
The following targets applied for 2012–13:
Target: Reduce emissions by 20 per cent from the 2010 baseline by 2015.
Result: On track
Target: Ensure that more than 70 per cent of passenger vehicles are LPG or low emissions (hybrid or 4 cylinder).
Result: Met
Fleet
The nature of DPI operations meant that a relatively large vehicle fleet was required. Furthermore, activities such as emergency response,
fisheries compliance and agricultural research required that a high proportion of vehicles were utility, all-wheel drive (AWD) or four wheel drive
(4WD).As of the end of the reporting year, DPI had 280 dedicated passenger vehicles, 235 of which (84 per cent) were LPG or low emission
vehicles. The Department continued to review its fleet mix as vehicles were scheduled for replacement. Replacement vehicles defaulted to High
Environmental Performance (HEP) models unless an alternative model was required for operational use.
The number of kilometres travelled by both 2WD utility vehicles and 4WD vehicles decreased markedly (-17 per cent) in 2012-13.
In 2012-13, DPI saw a continued decrease in total vehicle kilometres of 20 per cent compared with 2011-12 and greenhouse gas emissions
reduced by 19 per cent. The CO2e per 1000 kilometres indicator remained relatively stable at 0.2 per cent.
Air travel
Air travel includes intrastate, interstate and overseas trips. Overseas trips were driven by market development for agriculture products, investment attraction for major energy programs and global research collaboration. Additional information on overseas trips is available on the
DEPI website.
Indicator
2012-13
2011-12
Utility
Passenger
Hybrid / HEP
Utility
Passenger
Hybrid / HEP
Total energy
consumption
from fleet (MJ)
28,292,303
2,763,662
11,307,700
33,092,286
3,159,055
16,149,718
Total vehicle
travel associated with operations (kms)
6,959,716
788,928
4,036,748
8,173,854
951,695
5,612,805
Total greenhouse gas
emissions
from vehicle
fleet (t CO2 e)
2,103
200
781
2,462
229
1130
Greenhouse
gas emissions
from vehicle
fleet per
1,000km travelled (t CO2 e)
0.262
0.260
5,013,300
4,470,247
Regional
CBD
Metro
Regional
Total kms
travelled by
plane
Percentage of
employees
using sustainable forms
of transport
(%)
CBD
Metro
Not reported
Not reported
Actions undertaken 2012-13
DPI continued to review and improve fleet utilisation throughout 2012-13, reducing the number of pool vehicles by 65 vehicles.
Explanatory notes
i.
Executive vehicles and commercial (farm-based trucks and tractors) are not reported.
ii.
Utility denotes two and four wheel drives.
iii. HEP vehicles are defined as hybrid Toyota Prius and Camry, LPG and the 4 cylinder Toyota Camry.
iv. State Government Vehicle Pool usage by DPI staff is included in reporting.
v.
Air travel data is sourced from the Whole of Victorian Government travel provider and is based upon bookings only.
vi. Staff travel surveys were not undertaken over the past two years due to location-based organisational change taking place.
Greenhouse gas emissions
The emissions disclosed in the section below are taken from the previous sections and brought together here to show the department’s
greenhouse footprint. Overall greenhouse emissions increased between 2011-12 and 2012-13 by 3 per cent. This was largely due to the department ceasing the purchase of Greenpower this year.
No offsets have been purchased for the 2012-13 year.
Indicator
Total GHG associated with stationary
2012-13
2011-12
19,692
18,214
energy (t CO2 e)
Total greenhouse gas emissions from
vehicle fleet (t CO2 e)
3,084
3,821
Total greenhouse gas emissions from
air travel (t CO2 e)
1,303
1,348
Total greenhouse gas emissions from
waste production (t CO2 e)
34
34
Explanatory notes
i.
An update of the factors for greenhouse gas emissions has contributed to changes in the CO 2e for some of the aspects reported.
Environmental procurement
The DPI Procurement Branch provides internal procurement and sourcing advice that includes training and awareness to support and strengthen
environmental procurement practices. Departmental templates for tendering and contracting incorporate requirements for tenderers to
demonstrate their environmental credentials, allowing tender evaluation teams to weight and score this as a separate assessment criterion.
During 2012-13, there was a noticeable increase in contract approval requests that included competitive assessment against environmental,
OH&S and ethical sourcing criteria.
Output performance
measures
As a consequence of policy decisions announced by the Victorian Government on 9 April 2013, all outputs of the Department of Primary Industries have been transferred to other departments as per the adjacent table, effective from 1 July 2013.
As the department continued to have responsibility for the outputs until 30 June 2013, this report of operations presents the full year performance
of all the outputs as specified for this department in the 2012-13 Budget.
2012-13 Outputs
Transferee
Primary Industries Policy
Department of Environment and
Primary Industries
Date of administrative arrangement
3 June 2013
3 June 2013
Department of State Development
and Business Innovation
Regulation and Compliance
Department of Environment and
Primary Industries
3 June 2013
3 June 2013
Department of State Development
and Business Innovation
Strategic and Applied Scientific Research
Department of Environment and
Primary Industries
3 June 2013
3 June 2013
Department of State Development
and Business Innovation
Practice Change
Department of Environment and
Primary Industries
3 June 2013
Primary industries policy
Develop policy frameworks and legislative reforms that aim to improve investment in, and protection of, energy, resources, and primary industries. DPI did this through the establishment of efficient and equitable resource definition, allocation and management processes leading to
improved market access, industry performance, efficiency of resource use and reduced adverse impacts on the environment.
Performance
measure
Unit of measure
2012-13 Published
target
2012-13 Full year
actual
Delivery of milestones for the Safer
Electricity Asset Fund
work program
per cent
100
100
Delivery of Advanced
Metering Infrastructure program in line
with planned project
milestones
per cent
100
100
Exercise strategies
for maintaining security of electricity and
gas supply
number
4
4
Earth resource information packages
released to industry
covering the promotion of new geological
data and regulatory
guidance material
number
8
8
Major strategic policy
briefings to government
number
10
10
Meetings of the Advanced Metering
Infrastructure Ministerial Advisory Council conducted in accordance with terms
of reference and
strategic agenda
number
4
5
Number of native and
salmonid fish stocked
number
340 000
340 000
Number of structured
management arrangements in place
for fisheries
number
21
20
Strategic policy
briefings on energy
matters to portfolio
minister
number
180
182
Proportion of minerals and petroleum
publications and
packages requiring
post-release correction or recall
per cent
<5
0
Delivery of milestones facilitated in
line with grant
agreements for the
brown coal research
and development
grants that form part
of the Energy Technology Innovation
Strategy initiative
per cent
100
100
Delivery of key milestones in line with the
Facilitating Low
per cent
100
50
Comments
The target was
exceeded due to a
special meeting of
the Advanced Metering Infrastructure
Ministerial Advisory
Council to discuss
new flexible pricing
arrangements.
The expected completion date for the
Wild Harvest Abalone Fishery Management Plan has
moved from
2012-13 to 2013-14
due to delays in
restarting the
steering committee
process.
The target was not
met mainly due to
the impact of the
Emission Transition
approved project plan
cessation of the
Commonwealth
Government’s Contract for Closure
program.
Facilitate delivery of
milestones in line with
grant agreements for
the large-scale Carbon Capture and
Storage demonstration program
per cent
100
0
The pathway forward for the next
stage of the program is yet to be
finalised following
the completion of
feasibility studies for
the initial phase of
the program.
Facilitate delivery of
milestones in line with
grant agreements for
Energy Technology
Innovation Strategy
Sustainable Energy
programs
per cent
100
96
Out of 14 projects,
one project has
experienced delays
due to technical
issues resulting in
the achievement of
milestones being
pushed into
2013-14.
Facilitate delivery of
milestones in line with
grant agreements for
Energy Technology
Innovation Strategy
large-scale demonstration projects
per cent
100
0
The Commonwealth
Government has
withdrawn funding
for the HRL/Dual
Gas project. The
funding agreement
for this project is
proposed to be
terminated.
Fisheries management plan actions
implemented in accordance with the
published implementation schedules
per cent
>90
91
Submissions to Environment Effects
Statements (EES) for
earth resource proposals completed
according to EES
panel timelines
per cent
100
100
Facilitate delivery of
milestones for the
feasibility stage of the
CarbonNet (Carbon
Capture and Storage)
project
per cent
100
80
The carbon storage
screening process
was delayed due to
increased time for
evaluation requested during the
independent storage review process.
This delay has been
overcome but has
resulted in work
being re-scheduled
into 2013-14.
Facilitate delivery of
the implementation
plan for the CarbonNet geoscience
evaluation program
by 2014
per cent
100
85
The project schedule was delayed
due to increased
time for evaluation
requested during
the independent
storage review
process.
Total output cost
$ million
85.2
86.5
Regulation and compliance
Protect the sustainability of Victoria’s primary and energy industries by regulating natural resource use in the public interest. Encourage best
practice behaviours through a pro-active approach to self-regulation, while undertaking education, inspection and enforcement services to
ensure industry and community compliance with legislation and regulations. Protect the quality and safety of Victoria’s primary products by
building and maintaining Victoria’s capability to monitor, detect and respond to disease, pest and residue incidents, outbreaks and other biosecurity threats.
Performance
measure
Unit of measure
2012-13 Published
target
2012-13 Full year
actual
Comments
Animal pest, disease
and residue control
programs maintained
to ensure Victorian
agricultural produce
complies with food
safety and biosecurity
standards required to
access markets
number
5
5
Audits completed at
mineral and petroleum sites on specific
high risk issues
number
100
105
Some audits completed were less
complex than
planned, enabling
additional audits to
be completed during the year.
Compliance with
relevant industry
standards for animal
welfare
number
25
28
The number of
random audits
conducted to monitor compliance of
licensed institutions
with the regulatory
framework for animals used in research and teaching
was exceeded.
Detect, disrupt and
dismantle serious or
organised fisheries
criminal entities (individuals or groups)
number
4
4
Develop, implement
and review overarching fisheries
compliance strategy
number
1
1
Enhance levels of
community participation in achieving
fisheries compliance
through calls to the
13FISH reporting line
number
1 500
1 642
Environmental and
compliance audits of
critical minerals and
petroleum sites completed
number
60
62
Game Licence renewals processed by
target dates
per cent
96
100
Known state prohibited weed sites monitored and treated in
line with the relevant
weed action plan
per cent
90
98
Minerals and petroleum licences, permits and authorities
administered by DPI
number
1 700
1 670
Plant pest, disease
and residue control
number
6
6
The target was
exceeded due to
normal seasonal
variation in call
patterns from one
year to another.
Field assessments
have been completed for 56 of 57
State Prohibited
Weed reports.
programs maintained
to ensure Victorian
agricultural produce
complies with food
safety and biosecurity
standards required to
access markets
Properties inspected
for invasive plant and
animal priority species
number
4 800
4 989
Technical Review
Board to complete
the review of stability
reports for Latrobe
Valley coal mines
number
3
3
Minimum number of
Uniformed Fisheries
Officers maintaining
operational coverage
for priority fishing
activity periods, as
defined by the Compliance Strategic
Assessment
number
17
17
Compliance with
relevant international
and national quality
assurance standards
by meeting certification authorities required performance
audits on biosecurity
programs
per cent
95
100
Exploration and mining licences which
are not active
per cent
<20
14
Participation in
agreed national biosecurity, agriculture/veterinary
chemical use and
animal welfare programs
per cent
>95
100
Minerals and petroleum exploration
license applications
not determined after
three months
per cent
<5
1
Mining industry
workplans not processed in one month
per cent
<5
11
Mining licence applications not determined after four
months
per cent
<5
0
hours
<24
<24
Response time to
emergency animal,
pest, disease, residue and disaster
The peak in the
three year inspection cycle for State
Prohibited Weed
monitoring was
achieved.
Of the 18 work
plans processed,
two were processed
outside the one
month target. This
was due to the diversion of experienced resources to
support the development of new
regulatory systems.
incidents
Response time to
emergency plant
pest, disease, residue and disaster
incidents
Total output cost
hours
<24
<24
$ million
98.6
111.3
Actual expenditure
exceeded published
budget due to additional costs incurred
for national cost
sharing agreements
and biosecurity
incursions, as well
as voluntary departure package payments funded via a
Treasurer’s Advance and the Department’s accumulated surplus.
Strategic and applied scientific research
Use science and innovation to increase the productivity, profitability, international competitiveness and export value of primary and energy industries by investing in research and development, knowledge and science based tools, and resource information.
Performance
measure
Unit of measure
2012-13 Published
target
2012-13 Full year
actual
Comments
Commercial technology licence
agreements finalised
number
19
12
Two agreements
are still with commercial partners
awaiting their signature (DEPI has
signed the agreement). Commercial
partners’ mergers
and acquisitions
have delayed finalising three agreements and commercial partners’
internal restructuring and changed
priorities have delayed two agreements.
Applications for intellectual property
protection
number
8
19
There was a need to
develop and accelerate six new provisional patent filings
for one new commercial innovation
and five new plant
variety Plant
Breeder’s Rights
registrations
brought forward due
to commercial demand.
Genetic improvement
of dairy cows
achieved through
breeding contributing
to increased milk
production and dairy
productivity
per cent
1
1
International scientific
workshops/conferences
led/organised by DPI
to promote science
leadership among
peers
number
4
4
New key enabling
technologies and
core science capacity
competencies established/upgraded by
DPI
number
1
1
Postgraduate level/PhD students in
training by DPI
number
64
83
The target has been
exceeded due to
improved relationships with universities, which have
provided an increased opportunity
for PhD students to
be involved in the
Department’s work,
particularly in relation to Future
Farming Systems.
Scientific and technical publications in
international and/or
peer review journals
that promote productive, profitable and
sustainable farming
(including aquaculture) and fisheries
systems
number
298
395
The target has been
exceeded due to the
promotion of quality
publications through
performance management over the
past two years,
combined with the
delayed impacts of
reduced staffing
levels (scientific
publications can
take up to three
years to be approved and published in an approved journal).
Value of external
(non-state) funding
contribution to research projects that
support productive,
profitable and sustainable farming (including aquaculture)
and fisheries systems
$ million
33
36.5
The target has been
exceeded due to a
successful collaboration with industry
partners, which
have delivered
larger than expected external
revenue.
Agrifood, fisheries
and natural resource
management research and development project milestones and reports
completed on time
per cent
80
81
Earth resource geoscience data packages released to
market in line with
agreed timetables
per cent
>95
100
Provision of technical
advice, diagnostic
identification tests on
pests and diseases
including suspected
exotics within agreed
timeframes
per cent
80
83
Total output cost
$ million
296.8
251.6
Actual expenditure
is lower than published budget due to
cash-flow rephases
into future years for
Energy projects
including CarbonNet Carbon Capture
and Storage Large
Scale Demonstrations, Energy
Technology Innovation Strategy HRL
Large Scale
Demonstrations,
Advance Lignite
Demonstrations and
Sustainable Energy.
Practice change
Facilitate the adoption of new ideas and practices and assist industries and communities to understand, manage and adapt to change driven by
economic, social and environmental pressures. Promote trade by enhancing access to markets and securing market opportunities for Victoria.
Performance
measure
Unit of measure
2012-13 Published
target
2012-13 Full year
actual
Comments
Farmers facing significant adjustment
pressures supported
to make better informed decisions
number
2 500
1 849
This outcome is
demand driven by
client needs. The
Rural Financial
Counselling Service
now focuses on
assisting clients to
reach meaningful
and long lasting
adjustment outcomes, requiring
more time per client.
Farmers supported to
make better informed
decisions to increase
productivity through
network services
number
2 500
3 016
The target was
exceeded due to a
special ‘Dealing
with Drought Conditions’ workshop and
seminars conducted
in response to dry
seasonal conditions.
Formal evaluations
that measure improvement to industry
productivity
number
4
4
Significant customer
interactions to facilitate export outcomes
number
50
139
Significant stakeholder interactions on
climate variability,
adaptation and risk
management
number
1 500
1 527
Strategies developed
to overcome identified trade barriers
number
3
3
The target was
exceeded due to
heightened activity
in the market access group in response to the prioritisation of the Food
and Agriculture into
Asia Plan.
Clients are satisfied
that services are
accessible, timely
and relevant
per cent
na
na
Proportion of practice
change and technical
publications submitted to conference
proceedings and peer
review journals that
are accepted for
publication
per cent
90
94
Project milestone
reports completed on
time
per cent
85
72
Total output cost
$ million
85.0
87.3
This is a bi-annual
measure with a
2013-14 target.
The target was not
met due to the refocusing of efforts
into higher priorities.
Legislative and other
information
Compliance with Victorian Government Purchasing Board procurement
policies
During 2012-13, DPI continued to strive for high levels of probity, ethics and governance in all procurement activity by maintaining stringent
compliance with the Victorian Government Purchasing Board (VGPB) procurement policies and guidelines.
DPI maintained a Tier 2 Accreditation from the VGPB throughout 2012-13, allowing internal approval of all procurement up to $10 million without
further reference to the VGPB. No single procurement greater than $10 million was undertaken during 2012-13 and DPI was not required to refer
to the VGPB for further procurement approval.
DPI continued to focus on developing staff awareness on their obligations towards ethical procurement behaviour and continuous improvement
in procurement activity and contract management. Internal monitoring and review of procurement and contract management activity has increased and professional development is offered to staff found to be in breach or non-compliant with either VGPB or internal procurement policy.
DPI’s Procurement Branch (PB) provided a centralised support and advice area for procurement, probity, contract development, negotiation and
on-going contract management. The PB provides in-house training to staff involved in procurement and contract management at both CBD and
regional sites. In order to strengthen procurement and financial compliance within DPI, an internal restructure saw the PB move from the Legal
Services area into the Finance and Infrastructure Division during 2012-13.
The PB is diligent in scrutinising procurement across the department in compliance with VGPB and Accredited Purchasing Unit (APU) requirements and departmental policies and procedures. Increased reporting information around procurement, category management and contract related transactions occurred throughout the year, resulting in greater scrutiny and identification of possible procurement issues. There
were no significant breaches of government procurement policy that required reporting to the VGPB during 2012-13.
All financial delegates attend a mandatory half day training session, Governance of Financial Management (GOFM), focusing on the requirements
of Victorian Government procurement policies and purchasing requirements. Delegates must complete this training at least once every three
years to maintain their financial delegation.
Disclosure of major contracts
DPI did not enter into any contract greater than $10 million dollars during 2012-13 and no single contract required full disclosure in accordance
with the requirements of the Victorian Government purchasing policies on contract disclosure for contracts greater than $10 million.
DPI has disclosed the summary details of all contracts greater than $100,000 in accordance with the requirements of the Victorian Government
purchasing policies on contract disclosure. These details are published on the Victorian Government contracts website
www.contracts.vic.gov.au.
Consultancy agreements exceeding $100,000 (exc. GST)
DPI did not enter into a consultancy agreement in excess of $100,00 during 2012-13.
Details of consultancies under $100,000
In 2012–13, the department engaged a total 22 consultancies during the year, where the total fees payable to the consultants was less than
$100,000. The total value of the 22 consultancies (excluding GST) was $688,256.
Each of the 22 consultancy agreements listed below were engaged for a contract value exceeding $10,000 (excluding GST).
Consultant
ID
Purpose
Total $
Start Date
End Date
David Cornelius
Consulting
316864
Expert advice
on formulation
of advice on
implementation
of flexible electricity pricing
68,182
03/07/12
26/10/12
Farrier Swier
Consulting
317882
Implications of
the AEMC’s
access model
for Victorian
transmission
planning arrangements
19,200
10/09/12
31/10/12
Deloitte Touche
Tohmastu
317445
Phase1 advice
on utilising usage profiles to
assist customer
understanding
of flexible electricity pricing
29,960
12/09/12
15/10/12
ACIL Allen
Consulting
317697
Analysis and
forecasting of
retail electricity
prices in Victoria
45,661
17/09/12
31/12/12
SFS Economics
317649
Develop methodology for
understanding
consumer engagement with
the retail electricity market
21,601
18/09/12
19/10/12
Vic Assoc of
Forest Industries
317728
Advice on Victorian Forest
and Wood
Products industry
15,300
28/09/12
07/12/12
ACIL Allen
Consulting
317884
Distributed
generation
customers and
tariff structures
21,320
04/10/12
30/11/12
ACIL Allen
Consulting
317851
Third parties
and Advanced
Metering Program
10,660
09/10/12
28/12/12
Impaq Consulting
318020
International
benchmarking
of Smart Meter
Programs
12,000
31/10/12
30/11/12
SFS Economics
318072
Carbonnet Policy framework
24,000
31/10/12
07/12/12
Beth Hewitt and
Assocs
318330
Development of
DPI Executive
leadership team
10,800
29/11/12
30/04/13
KPMG
320021
BRC Financial
Advisory Services
45,456
30/11/12
31/03/13
ACILl Allen
Consulting
318761
Third party participation in AMI
program
22,140
30/01/13
29/03/13
Ernst and Young
318657
Refinancing
Victorian Electricity Generation
54,545
27/02/13
10/06/13
ILEX Consulting
319149
Entity Review of
TRB- mine
stability
61,229
08/04/13
30/06/13
EnergyConsultants Pty Ltd
319524
Review of submission for Energy Saver Incentive 2013
16,800
29/04/13
31/07/13
SFS Economics
319523
Report on market failures
preventing uptake of energy
efficiency activities
22,728
10/05/13
10/06/13
SAPERE Research
319432
Future Electricity Networks
80,320
14/05/13
30/06/13
URS Australia
319730
Implications of
Kyoto 2
20,386
14/05/13
14/06/13
ATS Pty Ltd
319903
Technical consultancy for
Stage 2 of LIAF
22,400
20/05/13
07/06/13
Mike Stephens
and Assocs
319958
Irritants and red
tape for Farm
businesses
16,750
31/05/13
31/07/13
Quantum Market
Research
319517
Future Energy
Consumer
46,818
03/06/13
03/07/13
Communication campaigns
The table below shows all DPI communication campaigns with expenditure higher than $150,000 in 2012-13.
Project: Advanced Metering Infrastructure (smart meters)/Switch On.
Duration: The Advanced Metering Infrastructure component ran from 1 July 2012 – 30 June 2013. The
‘Switch-On’ component of the campaign will run from
July to October 2013.
Description: The Smart Meters program provides factual information about the continuation of the meter
roll-out and educates Victorian households and small
businesses about smart meter services, information
about their energy bill and practical advice about ways to
reduce energy use and bills.
The latest phase of the Switch On campaign focuses on
assisting consumers to understand and navigate the
approaching introduction of flexible pricing, a tangible
consumer benefit of Smart Meters.
Advertising (media):
Creative and campaign development:
$1,999,112
$440,000
Research and evaluation:
$27,920
Print and collateral:
$31,741
Other campaign costs:
$642,103
Implementation of the Victorian Industry Participation policy
In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003 which requires public bodies and departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public bodies are required to
apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria.
Details of the contracts commenced to which the VIPP applied are as follows:
•
during 2012–13, the department commenced three contracts totalling $9.563 million in value and all three contracts were awarded for
building and construction work in regional Victoria where the $1 million VIPP threshold applies.
The commitments by contractors under VIPP include:
•
an overall level of local content of 88 per cent of the total value of the contracts
•
commitment equal to 33 full time equivalent jobs including the creation of 10 new jobs and the employment of four new apprentices.
The benefits to the Victorian economy in terms of skills and technology transfer include:
•
development of local industry’s competitiveness with innovative processes
•
a commitment to staff training and skill development in regional areas.
Details of contracts completed to which the VIPP applied are as follows:
•
during 2012–13, the department had no contracts that were completed where the VIPP applied.
Freedom of information
The Freedom of Information Act 1982 gives the public a right to apply for access to documents held by Victorian state and local government
agencies.
In the reporting period, the Department of Primary Industries received 61 requests for documents. Of these requests, 18 were from Members of
Parliament, nine were from the media and the remainder were from the general public.
In the reporting period, the Secretary received four requests for internal review and there were two FOI appeals lodged with the Victorian Civil
and Administrative Tribunal.
There were three requests for reviews lodged with the Freedom of Information Commissioner.
The department processed 53 per cent of requests within statutory requirements, 25 per cent of requests within 46 - 90 days and 22 per cent of
requests over 90 days. The average time taken to finalise requests was 63 days.
Making a Freedom of Information request.
Access to documents may be obtained through written request to the Manager Freedom of Information, as detailed in section 17 of the Freedom
of Information Act 1982. In summary, the requirements for making a request are:
•
•
•
it should be in writing
it should identify as clearly as possible which document is being requested
it should be accompanied by the application fee of $25.70 (the fee may be waived in certain circumstances).
Further charges may be payable, for example searching for documents (at $20.00 per hour) and photocopying (at 20 cents per page).
Requests should be sent to:
Manager Freedom of Information
Department of Environment and Primary Industries (DEPI)
PO Box 500
East Melbourne Vic 8002
DEPI has been formed from the former Department of Primary Industries and the former Department of Sustainability and Environment. The functions of the Energy and Resources portfolio have moved to the Department of State Development, Business and Innovation (DSDBI).
Enquiries concerning Freedom of Information can be made on (03) 9637 8186 (DEPI) or (03) 9651 9749 (DSDBI).
Further information regarding the Freedom of Information Act 1982 may be found at www.foi.vic.gov.au
Protected Disclosure Act 2012 (formerly the Whistleblowers Protection
Act 2001)
The Protected Disclosure Act 2012 encourages and assists people in making disclosures of improper conduct by public officers and public
bodies. The Act provides protection to people who make disclosures in accordance with the Act and establishes a system for the matters disclosed to be investigated and rectifying action to be taken.
The department does not tolerate improper conduct by employees, or the taking of reprisals against those who come forward to disclose such
conduct. It is committed to ensuring transparency and accountability in its administrative and management practices and supports the making of
disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial
risk to public health and safety or the environment.
The department will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the
disclosure. It will also afford natural justice to the person who is the subject of the disclosure to the extent it is legally possible.
Reporting procedures
Disclosures of improper conduct or detrimental action by the department or its employees may be made to the following officers:
Protected Disclosure Coordinator:
Jennifer Berensen
Senior Advisor, Privacy & Ombudsman
Department of Environment and Primary Industries
PO Box 500 East Melbourne 8002
Ph: (03) 9637 8697
Protected Disclosure Officer:
Kim Reeves
Manager, FOI, Ombudsman & Privacy
Department of Environment and Primary Industries
PO Box
500 East Melbourne 8002
Ph: (03) 9637 9730
Alternatively, disclosures of improper conduct or detrimental action by the department or its employees may also be made directly to the Independent Broad-based Anti-corruption Commission (IBAC).
The Independent Broad-based Anti-corruption Commission
Level 1, 459 Collins Street (North Tower)
Melbourne VIC 3000
Telephone: 1300
735 135
Facsimile: 8635 6444
Internet: www.ibac.vic.gov.au
There were no disclosures made to the department and notified to IBAC under the Protected Disclosure Act 2012 (those made from 10 February
2013 to 30 June 2013).
There were no disclosures made to the department under the Whistleblowers Proctection Act 2001 during the year.
Further information
Written guidelines outlining the system for reporting disclosures of improper conduct or detrimental action by DEPI or its employees are available
on the DEPI website.
The procedures established by the public body under Part 9 are available upon request.
Compliance with the Carers Recognition Act 2012
The department has taken all practical measures to comply with its obligations under the Carers Recognition Act 2012 to ensure that staff have
an awareness and understanding of the care relationship principles set out in the Act.
The department has a carer’s leave policy that allows staff to take leave to care for immediate family members. This includes spouses, children,
siblings, parents and grandparents. New staff to the organisation are made aware of the policy as part of the induction program.
The department has also set up an informal network for employees with disabilities and employees who are carers for family members with
disabilities to meet about shared issues and offer a supportive structure at work.
In addition, a formal program designed to increase awareness about the Act is planned for the second half of 2013.
Capital works
Work continued on the Modernising Farm Services and Science Assets Strategy, with investment in new service delivery outcomes enabled by
the divestment of obsolete assets. The largest component ($44.5M) of the redevelopment of the DPI Attwood site also continued.
For information on recent capital projects for the department and the broader Victorian public sector, please refer to the most recent Budget
Paper No. 4 State Capital Program (BP4) available on the Department of Treasury and Finance’s website.
Building Act
DPI complied with obligations under the Building Act 1993, the Building Regulations 2006 and other Victorian legislation referenced by the
Building Commission. Either a Certificate of Final Inspection or an Occupancy Permit was issued for new facilities or upgrades to existing facilities by the local authority or a building surveyor.
Major works projects (greater than $50,000)completed by DPI in 2012-13 were:
•
•
•
•
•
Animal house (sheep) at Hamilton
Boat storage shed at Portland
Office accommodation fitout at Attwood
Refurbishment of Marine and Freshwater Discovery Centre at Queenscliff
Upgrade of office facilities at Rutherglen
•
Seed processing facility at Horsham.
National Competition Policy
In 1995, all Australian governments (Commonwealth, state and territory) agreed to review and, where appropriate, reform all existing legislative
restrictions on competition. Under the National Competition Policy, the guiding legislative principle is that legislation, including future legislative
proposals, should not restrict competition unless it can be demonstrated that:
•
The benefits of the restriction to the community as a whole outweighs the costs
•
The objectives of the legislation can only be achieved by restricting competition.
In 2012-13 DPI continued to comply with the requirements of the National Competition Policy.
Compliance with the Fisheries Act 1995
Under Section 101G of the Fisheries Act 1995, DPI is required to report on the number of searches conducted each year, including the type and
number of priority species found during the course of those searches.
Number of searches conducted during 2012-13: 10
Species information: A total of 65 abalone found during searches, mostly undersized, plus abalone meat with a total meat weight of 16 Kg.
DPI-administered legislation
DPI was responsible for administering 52 major Acts of Parliament. Where noted, these Acts were administered jointly with the Department of
Sustainability and Environment (*), the Department of Health (~) or the Department of Treasury and Finance (^).
Agriculture and food security portfolio
Agricultural Industry Development Act 1990
Agricultural and Veterinary Chemicals (Control of Use) Act 1992
Agricultural and Veterinary Chemicals (Victoria) Act 1994
Biological Control Act 1986
Broiler Chicken Industry Act 1978
Conservation Forests and Lands Act 1987*
Control of Genetically Modified Crops Act 2004
Dairy Act 2000
Domestic Animals Act 1994
Drugs Poisons and Controlled Substances Act 1981~
Farm Debt Mediation Act 2011
Fisheries Act 1995
Flora and Fauna Guarantee Act 1988*
Forests Act 1958*
Forests (Wood Pulp Agreement) Act 1996
Forestry Rights Act 1996*
Grain Handling and Storage Act 1995^
Impounding of Livestock Act 1994
Land Conservation (Vehicle Control) Act 1972*
Livestock Disease Control Act 1994
Livestock Management Act 2010
Meat Industry Act 1993
Plant Biosecurity Act 2010
Prevention of Cruelty to Animals Act 1986
Rain Making Control Act 1967
Safety on Public Land Act 2004*
Seafood Safety Act 2003
Stock (Seller Liability and Declarations) Act 1993
Sustainable Forests (Timber) Act 2004
Veterinary Practice Act 1997
Wildlife Act 1975*
Energy and resources portfolio
Electricity Industry Act 2000
Electricity Safety Act 1998
Energy Safe Victoria Act 2005
Extractive Industries (Lysterfield) Act 1986
Fuel Emergency Act 1977
Gas Industry Act 2001
Gas Safety Act 1997
Geothermal Energy Resources Act 2005
Greenhouse Gas Geological Sequestration Act 2008
Mineral Resources (Sustainable Development) Act 1990
Mines (Aluminium Agreement) Act 1961
National Electricity (Victoria) Act 2005
National Gas (Victoria) Act 2008
Nuclear Activities (Prohibitions) Act 1983
Offshore Petroleum and Greenhouse Gas Storage Act 2010
Petroleum Act 1998
Pipelines Act 2005
State Electricity Commission Act 1958^
Underseas Mineral Resources Act 1963
Victorian Energy Efficiency Target Act 2007
Victorian Renewable Energy Act 2006
Major committees and statutory bodies
Minister for Agriculture and Food Security
Agriculture Victoria Services Pty Ltd
Animal Welfare Advisory Committee
Apicultural Industry Advisory Committee
Biosciences Research Centre Joint Venture Board
Cattle Compensation Advisory Committee
Dairy Food Safety Victoria
Dairy Food Safety Victoria Selection Committee
Domestic Animal Management Implementation Committee
Emergency Closures Advisory Committee
Fisheries Cost Recovery Standing Committee
Licensing Appeals Tribunal (Fisheries)
Murray Valley Citrus Board
Murray Valley Citrus Board Selection Panel
Murray Valley Wine Grape Industry Development Committee
National Livestock Identification System Implementation Advisory Committee
Northern Victorian Fresh Tomato Industry Development Committee
PrimeSafe
PrimeSafe Selection Committee
Recreational Fishing Grants Working Group
Royal Melbourne Showgrounds Joint Venture
Sheep and Goat Compensation Advisory Committee
Sheep and Goat Identification Advisory Committee
Swine Industry Projects Advisory Committee
Veterinary Practitioners Registration Board of Victoria
Veterinary Practitioners Registration Board of Victoria Panel Hearings
VicForests
Victorian Agricultural Chemicals Advisory Committee
Victorian Broiler Industry Negotiation Committee
Victorian Hunting Advisory Committee
Victorian Strawberry Industry Development Committee
Minister for Energy and Resources
Advanced Metering Infrastructure Ministerial Advisory Council
Clean Coal Victoria Advisory Committee
Earth Resources Ministerial Advisory Committee
Electric Line Clearance Consultative Committee
Energy Safe Victoria
Equipment Advisory Committee
Mining Warden
Technical Review Board
Victorian Electrolysis Committee
Additional departmental information available on request
In compliance with the requirements of the Ministerial Directions of the Minister for Finance, details of the items below – where not published in
this report – are retained by DPI and available on request (subject to the limitations of freedom of information requirements, if applicable):
a) A statement that declarations of pecuniary interests have been duly completed by all relevant DPI officers.
b) Details of shares held by senior officers as nominee or held beneficially in a statutory authority or subsidiary.
c) Details of publications produced by DPI about the activities of the department and where they can be obtained.
d) Details of changes in prices, fees, charges, rates and levies charged by DPI for its services, including services that are administered.
e) Details of any major external reviews carried out in respect of the operation of DPI.
f) Details of any other R&D activities undertaken by DPI that are not otherwise covered either in the Report of Operations or in a document
which contains the Financial Report and Report of Operations.
g) Details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit.
h) Details of major promotional, public relations and marketing activities undertaken by DPI to develop community awareness of the services
provided by the department.
i)
Details of assessments and measures undertaken to improve the occupational health and safety of employees, not otherwise detailed in the
Report of Operations.
j)
A general statement on industrial relations within the department and details of time lost through industrial accidents and disputes, which are
not otherwise detailed in the Report of Operations.
k) A list of major committees sponsored by DPI, the purposes of each committee and the extent to which the purposes have been achieved.
l)
Details of all consultancies and contractors, including consultants/contractors engaged, services provided and expenditure committed to for
each engagement.
This information is available from:
Matthew Clancy
Executive Director, Finance and Planning
Department of Environment and Primary Industries
PO Box 500
East Melbourne Vic 8002
matthew.clancy@depi.vic.gov.au
Feed-in tariffs
Transitional feed-in tariff reporting
Under Division 5A, Section 40FJ of the Electricity Industry Amendment (Transitional Feed-in Tariff Scheme) Act 2011, Victorian electricity distribution businesses are required to provide monthly reporting on the Transitional Feed-in Tariff (TFIT) scheme which commenced on 1 January
2012. This includes:
1. the number of TFIT scheme generating facilities connected, at the end of the previous calendar month, to a distribution system operated by
that licensee
2. the aggregate installed or name-plate generating capacity of TFIT scheme generating facilities connected, at the end of the previous calendar
month, to a distribution system operated by that licensee
3. the total amount of TFIT scheme electricity conveyed, in the previous calendar month along a distribution system operated by that licensee.
Aggregate energy exports have been converted to kWh (*where reported in MWh) and all ‘installed capacity’ and ‘aggregate energy export’ data
has been rounded up to the nearest whole number.
TFiT for each month, July 2012 – June 2013
31 July 2012
SP AusNet
Jemena
Powercor
Citipower
UED
Total
6,242
1,983
8,189
531
3,325
20,270
13,841
4,795
21,814
1,475
7,760
49,685
Aggregate
Energy
Exports
(kWh)
*846,000
114,186
278,609
13,577
312,024
1,564,396
Number of
TFIT customers
9,403
2,790
10,764
717
4,508
28,182
20,003
6,903
29,523
2,072
10,742
69,244
Aggregate
Energy
Exports
(kWh)
*1,316,000
287,403
394,685
29,189
422,183
2,449,460
Number of
TFIT customers
10,297
3,506
13,675
1,264
6,152
34,894
Installed
Capacity
(kW)
27,282
8,899
38,574
3,699
12,926
91,380
Aggregate
Energy
Exports
(kWh)
*2,067,000
515,016
503,751
117,319
797,385
4,000,471
Number of
TFIT customers
14,293
4,564
17,235
1,183
7,566
44,841
Installed
Capacity
(kW)
39,688
12,038
50,020
3,514
18,872
124,132
Aggregate
Energy
Exports
(kWh)
*3,413,000
817,267
1,623,456
74,066
1,436,015
7,363,804
Number of
TFIT customers
17,066
5,412
19,949
1,264
8,354
52,045
Installed
Capacity
48,453
14,544
58,492
3,699
21,537
146,725
Number of
TFIT customers
Installed
Capacity
(kW)
31 August
2012
Installed
Capacity
(kW)
30 September 2012
31 October
2012
30 November 2012
(kW)
31 December 2012
31 January
2013
28 February
2013
31 March
2013
30 April
2013
31 May 2013
30 June
2013
Aggregate
Energy
Exports
(kWh)
*5,770,000
1,126,251
2,278,489
117,319
1,725,932
11,017,991
Number of
TFIT customers
19,523
5,720
21,338
1,354
9,713
57,6481
Installed
Capacity
(kW)
56,815
15,382
64,102
3,974
22,751
163,024
Aggregate
Energy
Exports
(kWh)
*9,296,000
1,437,010
1,195,827
118,152
2,138,785
14,185,774
Number of
TFIT customers
19,963
5,745
21,594
1,407
10,827
59,5361
Installed
Capacity
(kW)
58,238
15,530
64,929
4,133
25,698
168,527
Aggregate
Energy
Exports
(kWh)
*2,703,000
1,515,395
2,587,823
260,178
2,482,825
9,549,221
Number of
TFIT customers
19,973
5,641
21,610
1,410
10,639
59,2731
Installed
Capacity
(kW)
58,268
15,384
64,861
4,144
27,899
170,556
Aggregate
Energy
Exports
(kWh)
9,992,136
1,259,707
4,803,493
259,393
2,125,889
18,440,618
Number of
TFIT customers
19,931
5,627
21,584
1,408
10,515
59,0651
Installed
Capacity
(kW)
57,712
15,126
64,750
4,132
26,745
168,465
Aggregate
Energy
Exports
(kWh)
11,893,094
1,118,509
3,637,862
296,908
1,927,005
18,873,378
Number of
TFIT customers
19,931
5,627
21,584
1,408
10,515
59,0651
Installed
Capacity
(kW)
57,712
15,126
64,750
4,132
26,745
168,465
Aggregate
Energy
Exports
(kWh)
11,893,094
1,118,509
3,637,862
296,908
1,927,005
18,873,378
Number of
TFIT customers
19,931
5,627
21,584
1,408
10,515
59,0651
Installed
Capacity
(kW)
57,712
15,126
64,750
4,132
26,745
168,465
Aggregate
Energy
Exports
(kWh)
11,893,094
1,118,509
3,637,862
296,908
1,927,005
18,873,378
Number of
TFIT cus-
19,555
5,640
21,621
1,417
10,008
58,2411
tomers
Installed
Capacity
(kW)
Aggregate
Energy
Exports
(kWh)
57,886
15,190
64,887
4,172
26,075
168,210
25,708,127
438,553
2,131,192
132,071
736,023
29,145,966
1. Distribution businesses have attributed variations in total customer numbers to technical reporting issues
Standard feed-in tariff reporting
Under Division 5A, Section 40NC of the Electricity Industry Amendment (Transitional Feed-in Tariff Scheme) Act 2011, Victorian electricity retail
businesses are required to provide monthly reporting in relation to the standard feed-in tariff (SFIT) scheme. These are new reporting requirements which commenced at the beginning of 2012. The reports include:
1. the number of small renewable energy generation facilities from which electricity was generated and sold to the licensee in the previous
calendar month
2. the aggregate installed or name-plate generating capacity of small renewable energy generating facilities generating facilities from which
electricity was generated and sold to the licensee in the previous calendar month
3. the total amount of electricity generated by means of small renewable energy generating facilities and purchased by the relevant licensee in
the previous month.
kW and kWh figures have been rounded to the nearest whole figure, and ‘total amount generated and purchased’ has been converted to kWh
in cases where it was reported as MWh (signified by *)
SFIT Reporting up to 30 June 2013
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
AGL
725
501
185,428
Australian Power and Gas
789
Unknown
374,746
Click Energy
262
Unknown
30,411
49
149
22,759
Energy Australia
5,334
Unknown
582,270
Lumo Energy
2,787
Unknown
*391,000
Retailer
Dodo Power and Gas
Momentum
Neighbourhood Energy
9
Unknown
382
Not supplied
Not supplied
Not supplied
5,724
Unknown
317,456
136
94
30,795
Origin Energy
Powerdirect
Red Energy
397
557
196,631
1,838
Unknown
167,224
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
Simply Energy
SFIT reporting up to 31 May 2013
Retailer
AGL
851
505
321,725
Australian Power and Gas
805
Unknown
409,732
Click Energy
147
Unknown
21,608
59
223
39,437
Energy Australia
5,074
Unknown
642,416
Lumo Energy
2542
Unknown
*465,000
Dodo Power and Gas
Momentum
Neighbourhood Energy
Origin Energy
9
Unknown
1,913
Not supplied
Not supplied
Not supplied
5,729.67
Unknown
388,252
Powerdirect
160
95
64,809
Red Energy
417
585
258,431
Simply Energy
1,228
Unknown
115,550
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
AGL
705
501
320,516
Australian Power and Gas
850
Unknown
445,000
Click Energy
165
Unknown
33,382
SFIT reporting up to 30 April 2013
Retailer
Dodo
58
278
37,837
Energy Australia
3,549
Unknown
450,360
Lumo Energy
2,320
Unknown
*514,000
14
Unknown
695
Not supplied
Not supplied
Not supplied
5,723
Unknown
465,351
187
133
96,195
Momentum
Neighbourhood Energy
Origin Energy
Powerdirect
Red Energy
366
514
230,583
2,508
Unknown
380,276
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
Simply Energy
SFIT reporting up to 31 March 2013
Retailer
AGL
540
505
276,102
Australian Power and Gas
681
Unknown
447,387
Click Energy
69
Unknown
18,035
Dodo
54
317
43,106
Energy Australia
3,455
Unknown
460,413
Lumo Energy
2,077
Unknown
*490,000
Momentum
Neighbourhood Energy
Origin Energy
12
Unknown
1,847
Not supplied
Not supplied
Not supplied
5,410
Unknown
748,098
Powerdirect
104
97
42,246
Red Energy
238
334
165,335
1,594
Unknown
249,155
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
Simply Energy
SFIT reporting up to 28 February 2013
Retailer
No. of systems where
exports generated and
sold to retailer for previous month
AGL
567
511
263,393
Australian Power and Gas
757
Unknown
555,373
Click Energy
27
Unknown
8,062
Dodo
40
212
36,280
Energy Australia
2,676
Unknown
412,354
Lumo Energy
1,782
Unknown
*484,060
Momentum
Neighbourhood Energy
Origin Energy
Powerdirect
Red Energy
Simply Energy
16
Unknown
1,817
Not supplied
Not supplied
Not supplied
5,743
Unknown
819,076
121
109
48,066
175
246
109,286
1,533
Unknown
239,283
SFIT reporting up to 31 January 2013
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
AGL
522
507
250,921
Australian Power and Gas
743
Unknown
332,458
Click Energy
181
Unknown
58,943
Retailer
Dodo
61
177
36,200
Energy Australia
1,945
Unknown
277,035
Lumo Energy
1,573
Unknown
*436,260
5
Unknown
737
Not supplied
Not supplied
Not supplied
5,933
Unknown
922,357
Momentum
Neighbourhood Energy
Origin Energy
Powerdirect
88
85
30,377
Red Energy
169
237
86,248
1,020
Unknown
132,186
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
AGL
405
499
174,916
Australian Power and Gas
831
Unknown
450,025
Click Energy
109
Unknown
23,952
Simply Energy
SFIT reporting up to 31 December 2012
Retailer
Dodo
35
95
22,117
Energy Australia
1,852
Unknown
187,926
Lumo Energy
1,494
Unknown
*337,460
20
Unknown
3,031
Not supplied
Not supplied
Not supplied
4,847
Unknown
706,378
Momentum
Neighbourhood Energy
Origin Energy
Powerdirect
72
89
20,068
Red Energy
185
260
74,357
1,219
Unknown
164,945
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
AGL
411
506
123,71
Australian Power and Gas
905
Unknown
411,992
Click Energy
132
Unknown
26,747
Simply Energy
SFIT reporting up to 30 November 2012
Retailer
Dodo
43
98
16,959
Energy Australia
1,728
Unknown
184,286
Lumo Energy
1,465
Unknown
*267,570
Momentum
Neighbourhood Energy
Origin Energy
Powerdirect
Red Energy
Simply Energy
17
Unknown
2,153
Not supplied
Not supplied
Not supplied
5,103
Unknown
629,534
53
65
11,620
155
218
52,415
1,472
Unknown
185,671
SFIT reporting up to 31 October 2012
Retailer
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
420
505
110,304
1280
Unknown
515,806
96
Unknown
15,326
AGL
Australian Power and Gas
Click Energy
Dodo
38
83
9,940.07
Energy Australia
1,578
Unknown
128,408
Lumo Energy
1,334
Unknown
*172,160
17
Unknown
983
Not supplied
Not supplied
Not supplied
5,717
Unknown
601,298
Powerdirect
83
100
15,808
Red Energy
162
227
39,717
1,343
Unknown
134,174
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
348
502
62,396
1,697
Unknown
283,578
72
Unknown
9,819
Momentum
Neighbourhood Energy
Origin Energy
Simply Energy
SFIT reporting up to 30 September 2012
Retailer
AGL
Australian Power and Gas
Click Energy
Dodo
24
45
5,082
Energy Australia
1,598
Unknown
52,016
Lumo Energy
1302
Unknown
*131,600
21
Unknown
1,274
Not supplied
Not supplied
Not supplied
5,819
Unknown
525,543
Powerdirect
39
56
3,930
Red Energy
197
276
28,468
Simply Energy
894
Unknown
62,102
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
314
511
39,008
1,020
Unknown
456,248
72
Unknown
7,649
Momentum
Neighbourhood Energy
Origin Energy
SFIT reporting up to 31 August 2012
Retailer
AGL
Australian Power and Gas
Click Energy
Dodo
Energy Australia
Lumo Energy
Momentum
Neighbourhood Energy
Origin Energy
25
68
4,545
138
Unknown
13,157
1,289
Unknown
*109,380
11
Unknown
765
Not supplied
Not supplied
Not supplied
5,873
Unknown
426,175
Powerdirect
43
70
7,039
Red Energy
165
232
23,271
Simply Energy
999
Unknown
50,450
TRUenergy
1,472
Unknown
84,941
No. of systems where
exports generated and
sold to retailer for previous month
Aggregate capacity
associated with these
systems (kW)
Total amount generated
and purchased from
these systems for previous month (kWh)
SFIT reporting up to 31 July 2012
Retailer
AGL
354
511
79,245
Australian Power and Gas
900
Unknown
378,235
44
Unknown
3,337
Click Energy
Dodo
Energy Australia
Lumo Energy
Momentum
Neighbourhood Energy
Origin Energy
29
15
5,087
120
Unknown
8,001
1,330
Unknown
*143,200
24
Unknown
1,950
812
Unknown
35,123
5,885
Unknown
336,210
Powerdirect
32
46
7,908
Red Energy
239
335
45,040
723
Unknown
24,814
1,423
Unknown
97,077
Simply Energy
TRUenergy
Premium feed-in tariff reporting
The Electricity Industry Act 2000 was amended in 2011 to update premium solar feed-in tariff (PFIT) scheme reporting requirements. Distribution businesses are now required to report on a six monthly basis on:
1. the number of qualifying solar energy generating facilities connected, on the reporting day, to a distribution system operated by that licensee
2. the aggregate installed or name-plate generating capacity of qualifying solar energy generating facilities connected, on the reporting day, to a
distribution system operated by that licensee
3. the total amount of qualifying solar energy generation electricity conveyed, in the six months prior to the reporting day, along a distribution
system operated by that licensee.
Aggregate energy exports have been converted to kWh (*where reported in MWh) and all ‘installed capacity’ and ‘aggregate energy export’ data
has been rounded up to the nearest whole number.
PFIT reporting as at 31 December 2012
SP Ausnet
Jemena
Powercor
Citipower
UED
Total
Number of
PFIT customers
30,181
7,981
29,539
3,549
17,872
89,1222
Installed Capacity (kW)
61,747
15,193
63,386
6,187
37,913
184,426
*40,563,000
(kWh)
4,664,312 (kWh)
*17,241,000
(kWh)
*1,876,000
(kWh)
10,451,118
(kWh)
74,795,430
(kWh)
Aggregate
Energy Exports (kWh)
PFIT reporting as at 30 June 2013
SP Ausnet
Jemena
Powercor
Citipower
UED
Total1
Number of
PFIT customers
30,168
7,333
29,519
3,546
17,090
87,656
Installed Capacity (kW)
61,571
13,449
63,205
6,184
33,150
177,559
25,292,532
(kWh)
5,861,051 (kWh)
*27,657,000
(kWh)
*2,546 (kWh)
12,514,282
(kWh)
71327411 (kWh)
Aggregate
Energy Exports (kWh)
Appendix 1 - Disclosure index
The annual report is prepared in accordance with all relevant Victorian legislation and pronouncements. This index has been prepared to facilitate identification of the department’s compliance with statutory disclosure requirements.
Legislation
Requirement
Page Reference
Ministerial Directions
Report of Operations – FRD Guidance
Charter and purpose
FRD 22D
Manner of establishment and the
relevant Ministers
Page 3
FRD 22D
Objectives, functions, powers and
duties
Page 10
FRD 22D
Nature and range of services provided
Page 11
Organisational structure
Page 10
FRD 8B
Budget portfolio outcomes
Page 88
FRD 10
Disclosure index
Page 86
FRD 12A
Disclosure of major contracts
Page 71
FRD 15B
Executive officer disclosures
Page 55
FRD 22D, SD 4.2(k)
Operational and budgetary objectives and performance against
objectives
Page 64
FRD 22D
Employment and conduct principles
Page 48
FRD 22D
Occupational health and safety
policy
Page 50
FRD 22D
Summary of the financial results for
the year
Page 45
FRD 22D
Significant changes in financial
position during the year
Page 47
FRD 22D
Major changes or factors affecting
performance
Page 46
FRD 22D
Subsequent events
FRD 22D
Application and operation of Freedom of Information Act 1982
Page 73
FRD 22D
Compliance with building and
maintenance provisions of Building
Act 1993
Page 74
FRD 22D
Statement on National Competition
Policy
Page 74
FRD 22D
Application and operation of the
Protected Disclosure Act 2012
Page 73
FRD 22D
Details of consultancies over
$10,000
Page 71
FRD 22D
Details of consultancies under
$10,000
Page 71
FRD 22D
Statement of availability of other
information
Page 77
FRD 24C
Reporting of office-based environmental impacts
Page 58
FRD 25A
Victorian Industry Participation
Policy disclosures
Page 72
FRD 29
Workforce data disclosures
Page 54
SD 4.5.5
Risk management compliance
attestation
Page 7
SD 4.5.5.1
Ministerial Standing Direction
4.5.5.1 compliance attestation
Page 8
Management and structure
FRD 22D
Financial and other information
Page 169
SD 4.2(g)
Specific information requirements
SD 4.2(j)
Sign-off requirements
Page 14–45
Page 1
Financial report
Financial statements required
under Part 7 of FMA
SD 4.2(a)
Statement of changes in equity
Page 110
SD 4.2(b)
Operating statement
Page 108
SD 4.2(b)
Balance sheet
Page 109
SD 4.2(b)
Cash flow statement
Page 111
SD 4.2(c)
Compliance with Australian accounting standards and other authoritative pronouncements
Page 113
SD 4.2(c)
Compliance with Ministerial Directions
Page 113
SD 4.2(d)
Rounding of amounts
Page 115
SD 4.2(c)
Accountable officer’s declaration
Page 105
SD 4.2(f)
Compliance with Model Financial
Report
Page 113
FRD 9A
Departmental disclosure of administered assets and liabilities by
activity
Page 130
FRD 11
Disclosure of ex gratia payments
Page 164
FRD 13
Disclosure of parliamentary appropriations
Page 163
FRD 21B
Disclosures of responsible persons,
executive officers and other personnel (contractors with significant
management responsibilities) in the
financial report
Page 167
FRD 102
Inventories
Page 141
FRD 103D
Non-current physical assets
Page 142
FRD 104
Foreign currency
Page 136
FRD 106
Impairment of assets
Page 158
FRD 109
Intangible assets
Page 146
FRD 107
Investment properties
Page 136
FRD 110
Cash flow statements
Page 161
FRD 112C
Defined benefit superannuation
obligations
Page 150
FRD 113
Investments in subsidiaries, jointly
controlled entities and associates
Page 137
FRD 114A
Financial instruments – general
government entities and public
non-financial corporations
Page 155
FRD 119
Contribution by owners
Page 111
Other requirements under Standing Directions 4.2
Other disclosures as required by
FRDs in notes to the financial
statements
Legislation
Building Act 1993
Page 74
Financial Management Act 1994
Page 105
Freedom of Information Act 1982
Page 73
Protected Disclosure Act 2012
Page 73
Victorian Industry Participation Policy
Act 2003
Page 72
Electricity Industry Amendment
(Transitional Feed-in Tariff Scheme)
Act 2011
Page 78
Carers Recognition Act 2012
Page 74
Fisheries Act 1995
Page 74
Appendix 2 - Budget Portfolio Outcomes
The budget portfolio outcomes provide comparisons between the actual financial results of the department and the forecast financial information
published in Budget Paper No. 5 Statement of Finances (BP5). Consistent with BP5, the budget portfolio outcomes include only the Department
of Primary Industries and do not include other entities within the portfolio. The budget portfolio outcomes comprise the comprehensive operating
statement, balance sheet, cash flow statement, statement of changes in equity, and administered items statement. Financial transactions and
balances are classified into either controlled or administered categories consistent with the published statements in BP5.
The following budget portfolio outcomes statements are not subject to audit by the Victorian Auditor-General’s Office and are not prepared on the
same basis as the department’s financial statements.
Comprehensive Operating Statement
for the year ended 30 June 2013
2012-13
2012-13
Published
Variance
%
Note
Actual
Budget
$million
$million
451.9
530.4
(14.8)
1
0.6
0.8
(25.0)
2
Sales of goods and
services
42.2
26.3
60.5
3
Grants
11.9
0.1
11,800.0
4
6.3
4.0
57.5
512.8
561.6
(8.7)
190.2
184.2
3.3
Depreciation
30.4
29.4
3.4
Interest expense
22.8
16.9
34.9
5
Grants and other
transfers
80.5
126.3
(36.2)
6
Net result from
continuing operations
Income from transactions
Output Appropriations
Interest
Other income
Total income from
transactions
Expenditure from
transactions
Employee benefits
Capital asset charge
34.4
34.4
-
Other operating expenses
177.7
174.3
2.0
Total expenses
from transactions
536.0
565.5
(5.2)
Net result from
transactions (net
operating balance)
(23.2)
(3.9)
494.9
Other economic
flows included in
net result
Net gain/(loss) on
non-financial assets
3.9
-
100.0
Total other economic flows included in net result
3.9
-
100.0
(19.3)
(3.9)
392.3
-
-
-
(19.2)
(3.9)
392.3
Net result
7
Other economic
flows - other
non-owner changes
in equity
Total other economic flows - other
non-owner changes
in equity
Comprehensive result
The following notes provide an explanation of the major item/s that contributed to the variance between the 2012-13
Actual and 2012-13 Budget.
Notes:
1. Variance is mainly due to the appropriation for a number of major projects being rephased to reflect revised delivery timeframes and program deliverables.
These projects include the State funded component of the CarbonNet project, the Large Scale Integrated Drying Gasification Cycle Demonstration project,
ETIS Sustainable Energy Grants program and funding for the BioSciences Research Centre.
2. Recognition of the State’s share of interest income in the Royal Melbourne Showgrounds Joint Venture.
3. Commonwealth funding received for the feasibility stage of the CarbonNet project, as well as recognition of the State’s share of the Royal Melbourne Showgrounds Joint Venture revenue items.
4. Grant income received for DPI flood recovery activities and the Solar Silex initiative.
5. Recognition of the State’s share of interest expense in the Royal Melbourne Showgrounds Joint Venture.
6. Variance is primarily due to the appropriation for a number of Energy and Resources grant programs being rephased to reflect revised delivery timeframes and
program deliverables.
7. Gain on the revaluation of commercial native forests.
Balance Sheet
for the year ended 30 June 2013
2012-13
2012-13
Published
Variance
Actual
Budget
%
Note
$million
$million
53.0
59.3
(10.6)
139.3
144.4
(3.5)
15.9
15.4
3.2
208.2
219.1
(5.0)
Inventories
0.4
0.3
33.3
Non-financial assets
classified as held for
sale, including disposal group assets
0.1
0.2
(50.0)
738.5
784.8
(5.9)
Biological assets
38.2
1.3
2,838.5
2
Intangible assets
52.0
11.1
368.5
3
1.9
1.0
90.0
831.0
798.8
Assets
Financial assets
Cash and deposits
Receivables
Other financial assets
Total financial assets
1
Non-financial assets
Property, plant and
equipment
Other
Total non-financial
assets
Total assets
4.0
1,039.2
1,017.9
2.1
Liabilities
Payables
107.6
91.9
17.1
Borrowings
263.9
246.2
7.2
Provisions
59.8
65.6
(8.8)
431.3
403.8
Total liabilities
4
6.8
Net Assets
607.9
614.1
(1.1)
Accumulated surplus
/ (deficit)
(40.1)
(25.5)
57.3
Reserves
254.2
254.1
-
Contributed capital
393.8
385.6
2.1
Total equity
607.9
614.1
(1.0)
Equity
5
The following notes provide an explanation of the major item/s that contributed to the variance between the 2012-13 Actual and 2012-13 Budget.
Notes:
1. Variance predominantly represents the transfer of revenue to the Commonwealth for Petroleum Licence Fees collected on their behalf, as well as departmental
expenditure against prior year unspent trust.
2. Recognition of commercial native forests as part of the Machinery of Government transfer of responsibilities for commercial timber harvesting on public land to
DPI.
3. Variance relates to the accounting treatment of the State’s interest in the BioSciences Research Centre Joint Venture, to recognise the state’s option to extend
the rental period and right to use the project land as an intangible asset, as well as expenditure on the Resource Rights Allocation and Management (RRAM)
initiative.
4. Variance predominantly represents the State’s funding commitment to the Royal Melbourne Showgrounds Joint Venture, and accrued Quarterly Service
Payment (QSP) for the BioSciences Research Centre Joint Venture.
5. Variance relates to the 2012-13 Net Deficit Result, refer to departmental controlled ‘Comprehensive Operating Statement’.
Statement of Cash Flows
for the year ended 30 June 2013
2012-13
2012-13
Published
Variance
Actual
Budget
%
$million
$million
Receipts from Government
451.9
530.4
(14.8)
Receipts from other
entities
54.9
31.2
76.0
Goods and Services
Tax recovered from
ATO
(1.6)
-
100.0
0.7
0.8
(12.5)
Other receipts
(2.8)
-
100.0
Total receipts
503.1
562.3
(10.5)
Payments of grants
and other transfers
(80.5)
(126.3)
(36.3)
Payments to suppliers and employees
(374.0)
(371.2)
0.8
Goods and Services
0.8
-
100.0
Cash flows from
operating activities
Interest received
Payments
Note
Tax paid to the ATO
Capital asset charge
(34.4)
(34.4)
-
Interest and other
costs of finance paid
(22.8)
(16.9)
34.9
(511.0)
(548.8)
(6.9)
(7.9)
13.5
(158.5)
(24.8)
(0.2)
12,300
(236.8)
(54.0)
338.5
4.8
-
100.0
(256.7)
(54.2)
373.6
28.6
35.7
(19.9)
196.9
1.5
13,026.7
Total payments
Net cash flow
from/(used in) operating activities
Cash flows from
investing activities
Net investment
Payments for
non-financial assets
Proceeds from sale of
non-financial assets
Net cash flow
from/(used in) investing activities
Cash flows from
financing activities
Owner contributions
by State Government
Repayment of finance leases
Net borrowings
25.7
-
100.0
Net cash flows
from/(used in) financing activities
251.2
37.2
575.3
Net increase/(decrease)
in cash equivalents
(13.4)
(3.5)
282.9
Cash and cash
equivalents at the
beginning of the financial year
66.4
62.8
5.7
Cash at end of the
financial year
53.0
59.3
(10.6)
1
The following notes provide an explanation of the major item/s that contributed to the variance between the 2012-13 Actual and 2012-13 Budget.
Notes:
1. These movements reflect the variations explained in the departmental controlled ‘Comprehensive Operating Statement’ and ‘Balance Sheet’.
Administered Items Statement
for the year ended 30 June 2013
2012-13
2012-13
Published
Variance
Actual
Budget
%
$million
$million
85.9
81.7
5.1
2.8
10.9
(74.3)
Note
Administered income
Sale of goods and
services
Grants
1
Other income
52.0
52.1
(0.2)
140.7
144.7
(2.7)
Expenses on behalf
of the State
0.2
-
100.0
Payments into Consolidated Fund
174.1
145.1
20.0
Total administered
expenses
174.3
145.1
20.1
Income less expenses
(33.6)
(0.4)
8,300.0
Net gain/(loss) on
non-financial assets
0.2
0.7
(71.4)
Total other economic flows included in net result
0.2
0.7
(71.4)
(33.4)
0.3
(11,233.3)
3.6
3.5
2.9
53.5
53.4
0.2
0.1
0.1
-
57.1
56.9
Total administered
income
Administered expenses
2
Other economic
flows included in
net result
Comprehensive
result
Administered assets
Cash and deposits
Receivables
Other financial assets
Total administered
assets
0.4
Administered liabilities
Payables
14.9
15.4
(3.2)
0.1
-
100.0
Total administered
liabilities
14.9
15.4
(3.2)
Net assets
42.2
41.5
Borrowings
1.7
The following notes provide an explanation of the major item/s that contributed to the variance between the 2012-13 Actual and 2012-13 Budget.
Notes:
1. Variance primarily reflects the recognition of unearned grants revenue for 2012-13, relating to LaTrobe University’s contribution to the BioSciences Research
Centre joint venture.
2. Variance reflects higher than forecast revenue transferred to the Consolidated Fund for minerals and petroleum tenements income accrued in 2011-12, as well
as Paper Australia Pulpwood Agreement payments made in respect of outstanding receivables recognised in 2011-12.
Statement of Changes in Equity
for the year ended 30 June 2013
Opening balance 1 July 2012
Accumulated
surplus / (deficit)
$million
Contributions
by owners
$million
Other Reserves
$million
Asset revaluation reserve
$million
Total Equity
$million
(20.8)
362.8
0.1
254.0
596.1
Comprehensive
result
(19.2)
-
-
-
(19.2)
-
31.1
-
-
31.1
Closing balance
30 June 2013
(Actual)
(40.1)
393.8
0.1
254.0
607.9
Closing balance
30 June 2013
(Budget)
(25.5)
385.6
0.1
254.0
614.1
Variance - Comprehensive result
(%)
57%
2%
0%
0%
-1%
Transactions with
owners in their
capacity as owners
Disclosure of grants and transfer payments
(other than contributions by owners)
DPI delivered a wide range of grant programs. Detail is provided below on the largest individual grant programs funded by DPI in 2012-13:
Payment
$million
Program Name
Purpose and nature of grant
Paper Australia Pulpwood
Agreement
Pursuant to the Forests (Wood Pulp
Agreement) Act 1996, revenue
generated from VicForests in
meeting its pulpwood supply obligation to Australian Paper Pty Ltd is
paid into the State’s Consolidated
Fund first before being paid to
VicForests as a grant payment by
DPI.
21.5
BioSciences Research Centre
(BRC) Joint Venture
Additional expense associated with
the accounting treatment of the
Biosciences Research Centre Joint
Venture at commercial acceptance,
reflecting that LaTrobe University
has been effectively provided with a
grant to undertake the Joint Venture
arrangement.
9.6
Solar Silex Program
Funding was provided for Stage 2
of the Solar Silex program - development of a 1.5 megawatt solar
pilot plant in regional Victoria.
7.1
ETIS Sustainable Energy Programs
Funding was provided for renewable energy pilot, and research &
development technology projects,
to drive advances in low emissions
technology in Victoria.
6.6
Australian Energy Market Commission
Victoria’s contribution to the Ministerial Council on Energy.
5.4
Dairy Futures Co-operative Research Centre
Funding contribution to the Dairy
Futures Cooperative Research
Centre (CRC) which applied transformational genetics for the Australian dairy industry.
4.8
Brown Coal Innovation Australia
Funding was provided to establish
Brown Coal Innovation Australia,
which will support low-emission
brown coal research and development.
3.8
Recreational Fishing Initiative and
Grants Program
To improve recreational fishing
opportunities in Victoria including
improvements to fishing infrastruc-
2.8
ture.
Red Imported Fire Ants
Victoria’s contribution to the
2012-13 National Cost-Sharing Red
Imported Fire Ants program.
1.9
Core funding for the Royal Society
for the Prevention of Cruelty to
Animals (RSPCA) Inspectorate
Funding was provided to allocate
ongoing support to the RSCPA
Inspectorate to investigate claims of
animal cruelty and progress legal
proceedings against the alleged
perpetrators of serious cases.
1.0
Other grants and transfer payments
Expenditure relates to a variety of
grants, including weed and pest
control programs, contributions to
joint Commonwealth/State biosecurity control programs and research co-investment programs.
These grants may include programs related to agriculture, fishing
and energy sectors.
16.1
Total
80.5
Case Study - Reducing methane emissions from cattle
Victorian dairy farmers will derive long term benefits from research carried out by DPI to identify and quantify feed supplements and novel forages that enable improved strategies for enhancing milk production while simultaneously reducing methane intensity and possibly greenhouse
gas emissions.
Victorian research into the use of dietary supplements to reduce methane emissions has, to date, provided the only practical and profitable
mitigation strategy in Australia. DPI scientists discovered that by feeding cows ‘grape marc’ - the skin, sticks and seeds left over from commercial
red wine pressing – the cows’ methane emissions can be cut by around 20 per cent, the equivalent of taking 200,000 cars off the road with
industry-wide adoption. Not only does the discovery mean a considerably reduced eco-footprint for meat eaters and livestock producers, but it
could also benefit Australia’s wine industry, turning a waste product into a saleable and environmentally sound commodity.
More recently the research has shown that feeding wheat, a common supplement for the dairy industry, can result in significant reductions in
methane emissions and improvements in milk production. An experiment undertaken in early lactation showed that feeding up to 9 kg of wheat
per day (a level not uncommon in dairy systems), methane emissions could be reduced by up to 32 per cent while milk production increased by
20 per cent.
Case study - Improving the reproductive efficiency of ewe lambs
The overall aims of this MLA and DPI-funded project were to improve the reproductive efficiency of ewe lambs in both cross-bred and Merino
sheep leading to improvements of at least 10 per cent in flock reproductive performance. Trials for mating ewe lambs at seven to ten months
were undertaken on four crossbred flocks and eleven merino flocks. It was demonstrated that mating merino and crossbred ewes at seven to
ten months was an effective way of lifting lamb production by more than ten per cent in the flocks participating in this project. This project has the
potential to improve profitability of the sheep enterprise by $24 per hectare annually.
These flocks achieved a 60 per cent conception rate in merino ewe lambs and a 75 per cent conception rate in crossbred ewe lambs. It was
found that both the weight and condition score of ewe lambs at joining significantly affected the reproductive rate in both merino and crossbred
ewe lambs. In fact, the combined analysis of participating flocks indicated that, on average, a one kilogram increase in live-weight at joining was
associated with a 3.7 and 2.6 per cent increase in reproductive rate (foetuses per 100 ewes joined) for merino and crossbred ewe lambs respectively. There were also significant additional effects of condition score of ewe lambs at joining on reproductive rate, over and above correlated changes in live-weight, suggesting that early maturing ewes achieve higher reproductive performance when mated as ewe lambs. At a
given live-weight, an extra condition score at joining increased reproductive rate by 31 and 26 per cent for merino and crossbred ewe lambs,
respectively.
Participating producers had a number of concerns about mating and lambing ewe lambs prior to the project, which were subsequently overcome. Firstly, it was demonstrated that reasonable reproductive rates could be achieved. Secondly, it was shown that the majority of pregnant
ewe lambs were able to lamb down and rear their lambs successfully. Finally it was demonstrated that with targeted management, these ewes
achieved high reproductive rates on their second mating.
A ready reckoner was developed that producers could use to determine the break-even marking rate needed with varying grain prices and lamb
prices. The merino flocks that participated in the project for more than one year achieved an average marking rate of 50 per cent, which in the
period from 2010 to 2012 of this project proved to be economically viable at the prevailing lamb prices and feeding costs.
Case study – PSTVd
The exotic plant disease potato spindle tuber viroid (PSTVd) was detected for the first time in Victoria in a commercial greenhouse tomato crop
near Mansfield in October 2012.
DPI’s rapid response to the detection included a tracing investigation on the source and potential spread of the seedlings, including into other
states which were potentially affected. Consistent with national agreement, the infected crop was allowed to stay in production to the end of its
production cycle, subject to strict hygiene protocols and audit inspections. It was determined that the fruit only carried low levels of the viroid and
that the risk of spread was negligible. The grower was therefore able to continue selling to markets.
As part of the tracing investigation to determine the spread from the infected site, DPI staff visited other hydroponic tomato growers to sample
crops for PSTVd. No further PSTVd was detected in Victoria. Regular audits were conducted at the infected property to ensure that the grower
was adhering to the regulations imposed around destruction and disposal of host plants, along with disinfection and hygiene requirements to
prevent further spread.
There have been 10 incursions of PSTVd into Australia in the past decade. The viroid has been detected in tomato crops in NSW, Qld and WA,
and in chilli and capsicum crops in WA. Most detections of PSTVd in Australia have been in commercial greenhouse tomato crops. PSTVd has
not been reported in Australia in potato since the early 1980s.
Case Study - Warrnambool abalone case
Three men appeared at the Warrnambool Magistrates Court in May 2013 charged with various offences including taking of a commercial quantity
of abalone and possession of commercial fishing equipment. The men were intercepted by Fisheries officers in Port Fairy with a total of 304
abalone, with 173 under the 13cm legal size limit. Detailed examination of the mobile phone of one of the men revealed images and video, dating
back to 2011, of further offences involving possession of commercial fishing nets and large quantities of bream.
The three men pleaded guilty to all charges and two of the men were convicted and fined $7,500 with costs. The third man was fined $5,000
with costs. All three were also sentenced to one month’s jail, wholly suspended for two years and their vehicle, mobile phones and dive
equipment were forfeited to the Crown.
Appendix 3 -
Ministerial Statements of
Expectation
Fisheries Victoria
On 21 November 2011, the Minister for Agriculture and Food Safety signed the Ministerial Statement of Expectations for Fisheries Victoria.
The four key areas of focus were:
•
Government policy and objectives
•
Regulatory independence
•
Stakeholder relationships and management
•
Accountability and transparency.
Snapshot of regulatory performance
Refer to page 64 for a report of regulatory performance against 2012-13 Output Performance Measures for Fisheries Victoria.
Actions
Government policy and objectives
Fisheries Victoria, in its role as the regulator of Victoria’s wild harvest fisheries and aquaculture industry, delivers programs under the broad
objective of optimising the value gained from the current use of Victoria’s fishery resources while also securing future access.
The division’s programs include operational policy, licence and quota administration, regulatory science, fisheries management services and
education and enforcement programs. Fisheries programs that support the commercial fishing sector are delivered under a cost recovery ar-
rangement.
Fisheries Victoria continued an approach over 2012-13 to reform selected fisheries in line with the above objective. This approach is guided by
broad principles such as improving resource access, improving allocation certainty, strengthening governance and increasing stakeholder participation in fisheries management. Decisions are supported by evidence-based science.
The highest priority reform project through 2012-13 has been to develop a new commercial scallop dive fishery in Port Phillip Bay. This small,
high value fishery, where scallops are to be gathered by hand, is expected to provide benefits to Victoria including new business and employment
opportunities and fresh, locally caught seafood. A proposal outlining arrangements for the fishery was released for a 60 day public consultation
period in mid-April 2013.
The scallop project addresses a number of target areas for fisheries reform. The proposal:
•
protects the existing rights of recreational fishers
•
assigns a significant role to industry in managing and financing the development of the fishery
•
focuses the role of government on specifying the baseline management standards to protect the fish stock, appropriately share access to the
resource and address substantive compliance risks
•
allocates access to the commercial fishery in a way that provides a secure entitlement
•
enables a coordinated industry approach that facilitates shared investment in developing the fishery and collaborative efforts to operate the
fishery in a productive and efficient way
•
simplifies the design of the fishery arrangements in line with the probable size of the fishery.
Reform projects are also underway for the sea urchin, pipi and eel fisheries and will continue into 2013-14.
Fisheries cost recovery is also the subject of an ongoing reform process, with the current retrospective system planned to be replaced by a new
prospective regime during 2013-14. This new arrangement is being introduced to better align government programs and services to industry
requirements and improve the division’s accountability to industry for the programs and services it delivers.
The fisheries education and enforcement function was the subject of a performance audit by the Victorian Auditor-General’s Office during
2012-13. The audit report identified the division’s intelligence-led education and enforcement model, which uses a robust methodology for
transparently assessing risks and planning and prioritising its compliance work, as an example of best practice.
Regulatory independence
The Executive Director Fisheries Victoria exercises the delegated responsibility for Ministerial and Secretarial powers under the Fisheries Act
1995.
Fisheries Victoria consulted widely through 2012-13 on statutory decisions with sector representative bodies VRFish, Seafood Industries Victoria
(SIV), industry participants, the statewide recreational fishing forum and other interested parties.
Examples of the application of Fisheries Victoria’s regulatory independence in 2012-13 include:
•
setting total allowable commercial catch levels for the abalone, rock lobster, giant crab and scallop fisheries
•
implementation of interim catch controls for Victorian inshore trawl licence holders, designed to ensure the long term sustainability of the
Victorian snapper fishery
•
amendment to the Fisheries Regulations 2009, which included adjustment to regulations for redfin, dusky flathead and yabbies
•
a ban on mid-water trawling in Victorian waters
•
Fisheries Notices implemented to address particular fisheries management matters, for example changing the season opening and other
arrangements for the Murray spiny freshwater crayfish.
Statutory decisions, while not always fully supported by all stakeholders, took account of evidence based science including quantitative information such as stock assessment and catch and effort data as well as relevant legislative provisions and management plans.
Stakeholder relationships and management
Fisheries Victoria invests in building and maintaining effective working relationships with its many stakeholders across the fishing sectors under
its core role as the regulator of wild catch fisheries and aquaculture.
Fisheries Victoria concluded new funding agreements with sector representative bodies SIV and VRFish in 2012-13, ensuring greater security of
funding and improved governance and accountability for the use of funds by these bodies.
Work to establish a new cross-sector Fisheries Advisory Council is nearly complete. The creation of this new advisory body will deliver on one
of the government’s election commitments in its Plan for Agriculture. The new group will enable stakeholders to take a greater role in fisheries
management, taking account of the respective regulatory and stewardship responsibilities of government and the fishing sectors.
DPI continued to consult with recreational fishers through statewide and regional round table meetings, via surveys and through key representative bodies. Angler suggestions gathered from round table meetings are published on DEPI’s external website. DPI has completed
action for around 30 of the 120 individual suggestions while a further 20 are being actively progressed.
Fisheries Victoria also connects directly with the recreational fishing community via the weekly Fish-E-Fax bulletin, information published in
fishing publications, attendance at events (such as fishing and boating shows), attending angling club meetings and through DPI’s Facebook
page. Fisheries Victoria made more than 100 posts on a variety of fisheries subjects on Facebook through 2012-13, which attracted more than
340,000 views in total.
Fisheries education connects with the wider community through an activity-based learning program at the recently refurbished Marine and
Freshwater Discovery Centre (MFDC) at DPI’s Queenscliff site. More than 37,000 people visited the centre during 2012-13. It also conducts a
mobile outreach program which engaged more than 46,000 people through the year (including Culturally and Linguistically Diverse (CaLD)
Communities) in their communities and at locations where fishing activities occur.
Fisheries Victoria engaged in a process led by the Department of Justice which culminated in an agreement between the Dja Dja Wurrung
Traditional Owner Group and the Victorian Government to settle the group’s native title claim over their traditional lands north of Ballarat and west
of Bendigo.
Accountability and transparency
The Victorian Auditor-General’s Office (VAGO) completed and tabled two performance audit reports relating to the fisheries function during
2012-13. These were Effectiveness of Compliance Activities: DPI and DSE and DPI’s Management of Freshwater Fisheries. The DPI Secretary accepted the majority of the recommendations from both audits, however he contested VAGO’s conclusion in its freshwater audit report
that ‘DPI is not effectively discharging its legislative responsibilities to deliver balanced and sustainable outcomes for recreational freshwater
fisheries.’
Fisheries Victoria revised several Department of Treasury and Finance Output Performance Measures for the 2013-14 financial year as a further
step in an ongoing process to adopt measures that are most appropriate and effective. This revision process was also informed by the findings
and recommendations of the two VAGO audits.
Three new measures were added for 2013-14:
•
Complete Total Allowable Commercial Catch setting processes for key quota managed fish species
•
Key fisheries managed in accordance with best practice management plans
•
Complete stock assessment for key quota managed fish species.
Fisheries Victoria also completed development of a new suite of outcome-focused performance measures during 2012-13, as part of the process
to develop the new DPI Strategic Plan and associated Evaluation and Performance Monitoring System. It is expected that these new measures
will continue to be used under the model adopted by the Department of Environment and Primary Industries for 2013-14 and beyond.
The division continues to publish an extensive range of material on the DPI external website relating to the discharge of its regulatory obligations,
particularly in relation to consultation on all statutory decisions.
Fisheries Victoria published its strategic compliance priorities on the DPI external website for the first time in 2012-13. Information on enforcement outcomes including compliance performance statistics, major compliance operations and court prosecutions was also published on
the external website during the year.
The Fisheries Status Report, which provides a high level overview of the performance of the sector, was last published in 2010. All key Victorian
managed fisheries were classified as sustainable in that report. The next report is scheduled to be produced in 2013-14.
Earth Resources Regulation
On 16 January 2012, the Minister for Energy and Earth Resources signed the Ministerial Statement of Expectations for Earth Resources Regulation Victoria.
The four key areas of focus of the statement are:
1. Government policy and objectives
2. Regulatory independence
3. Stakeholder relationships and management
4. Accountability and transparency.
Actions
1.
Government policy and objectives
In 2012-13 Earth Resources Regulation Victoria undertook significant work to ensure more efficient and effective regulation that balances both
the interests of industry and the community.
The government response to the Economic Development and Infrastructure Committee (EDIC) Inquiry into greenfields mineral exploration and
project development in Victoria was released in May 2013. Earth Resources Regulation Victoria provided input into the response which will see
the introduction of a number of legislative and administrative changes designed to reduce regulatory burden without compromising regulatory
standards and meeting community expectations.
The following EDIC aligned legislative reforms were progressed during 2012-13:
•
Amendments to the Mineral Resources (Sustainable Development) Act 1990 to the Approval In Principle stage, including:
–
–
–
–
–
•
a revised definition of low impact exploration from the use of hand held tools to a broader, risk based definition
the introduction of statutory timeframes for the approval of a work plan or work plan variation
allowances for the introduction of risk based work plans for mining and the extractive industries
the exemption of small mines from the need for a work plan, instead of requiring compliance with a Code of Practice
the introduction of a penalty for the non-payment of a rehabilitation bond within the designated timeframe.
Amendments to the Mineral Resources Development Regulations 2002 and the Mineral Resources (Sustainable Development) (Extractive
Industries) Regulations 2010, to the Regulatory Impact Statement stage. The amendments have focused on aligning the level of mining and
extractive industry cost recovery with best practice policy principles.
On 31 May 2013, the Standing Council on Energy and Resources endorsed the National Harmonised Regulatory Framework for Natural Gas
from Coal Seams. The Framework provides a suite of leading practice principles, providing guidance to regulators in the management of natural
gas from coal seams and ensuring regulatory regimes are robust, consistent and transparent across all Australian jurisdictions. The Framework
focuses on four key areas of operations which cover the lifecycle of development: well integrity, water management and monitoring, hydraulic
fracturing and chemical use. Earth Resources Regulation Victoria will continue working with other parts of government to ensure that leading
practices are consistent with the Victorian regulatory regime.
In 2012-13 Earth Resources Regulation Victoria undertook a major program of work related to mine stability. This work included:
•
completion of comprehensive stability reviews of Loy Yang, Hazelwood and Yallourn mines and commencement of work to implement the site
specific recommendations
•
commencement of remediation of the Morwell River Diversion and completion of most of the work required on the Morwell Main Drain
•
completion of a technical investigation into the Morwell River Diversion Collapse and its causes
•
ongoing engagement with mine operators and energy providers to improve mine stability, mitigate environmental risks and ensure reliable
power supply.
Earth Resources Regulation Victoria conducted a number of regulatory activities in line with graded compliance and enforcement policies. Staff
conducted 387 site inspections and 165 audits across the state to identify site issues and instances of non-compliance. These were addressed
through action requests, education, 23 statutory notices and three infringement notices. Earth Resources Regulation Victoria investigated 120
complaints and environmental incidents relating to earth resource industry operation.
Earth Resources Regulation Victoria approved 97 work plans with 88 per cent of approvals meeting the legislative time frame of one month.
Earth Resources Regulation Victoria follows consistent, fair and transparent administrative procedures when administering licences. During
2012-13, the division oversaw the grant/renewal of 129 minerals licences, comprising 92 exploration licences, 25 mining licences and 12
prospecting licences. These numbers have been consistent each year since 2005-06 reflecting a relatively consistent workload. The division
additionally administers extractive industries (quarries) and in 2012-13 there were 882 current quarries in operation in Victoria. The number of
current quarries per year remains constant at around 880 per year. Finally, the division administers petroleum, geothermal and pipeline tenements, however the bulk of the administrative effort associated with these authorities relates to ongoing tenement management (alternations,
variations, transfers) rather than grant/renewal activities.
The division used a number of criteria to assign priority to earth resources sites, such as the activities undertaken, risk to environment, impacts
on public safety, financial liability with respect to rehabilitation of work sites and risk of community discontent. Earth Resources Regulation
Victoria directed resources to scheduled site inspections, bond reviews and audits based on the assessed risk profile.
The division participated in a major review of the Resource Rights Allocation and Management (RRAM) system. The RRAM project was restarted
in early 2013 with a revised scope and significant divisional resources dedicated to testing and implementation. Go-live for the system is expected in August 2013.
2.
Regulatory independence
In 2012-13, machinery of government changes saw Earth Resources Regulation Victoria separate from the Earth Resources Development arm
of the group and join the Regulation and Compliance Group of DPI. This separation of regulatory and facilitative functions has continued with the
division recently joining the Corporate Planning and Compliance Services Group of the newly formed Department of State Development,
Business and Innovation.
3.
Stakeholder relationships and management
Earth Resources Regulation Victoria has a strong focus on stakeholder and community engagement. In 2012-13, the division, in collaboration
with the Earth Resources Development Division, EPA and Southern Rural Water ran a series of community information sessions on coal seam
gas and mineral exploration. Sessions were run in Leongatha, Sale, Wonthaggi, Bacchus Marsh and Traralgon using an ‘open house’ format
where staff with specialist knowledge manned a series of booths over the course of a day with concerned stakeholders invited to spend as much
time as they needed at each booth to gather the required information. The sessions were successful in delivering relevant information, building
relationships with affected communities and improving the reputation of the organisations and agencies involved.
Earth Resources Regulation Victoria participated in appropriate Commonwealth and state forums to promote regulatory best practice and help
ensure consistency of outcomes across the earth resources sector. In 2012–13, the division participated in a number of sub-committees of the
Standing Council on Energy and Resources which included the Upstream Petroleum and Offshore Minerals Working Group, National Mine
Safety Framework Steering Group and Coal Seam Gas Steering Group.
Earth Resources Regulation Victoria provided timely and authoritative advice to the Minister for Energy and Resources regarding regulatory
matters in the earth resources sector. The division continued to advise the Minister on issues including emergency situations at mines, licensing,
legislation review, rehabilitation bonds, earth resources approvals, coal seam gas and statutory appointments.
4.
Accountability and transparency
Earth Resources Regulation Victoria is required to meet specific key performance objectives as part of statutory and DTF requirements. These
performance indicators relate to the licensing, approvals and ongoing operations of earth resource industries to measure and report on outputs
and outcomes. Performance results are reported on the DPI website, in Victorian Competition and Efficiency Commission (VCEC) reports and to
DTF. With the implementation of the RRAM project enabling additional tracking functionality of regulatory activities, Earth Resources Regulation
Victoria hopes to be able to report on additional performance measures. This year’s key performance indicators have been included in DTF
reports.
Biosecurity Victoria
On 27 October 2011, the Minister for Agriculture and Food Security signed the Ministerial Statement of Expectations for Biosecurity Victoria.
The three key areas of focus were:
1. Government policy and objectives
2. Stakeholder relationships and engagement
3. Accountability and transparency.
Snapshot of regulatory performance
Refer to page 64 for a report of regulatory performance against 2012–13 Output Performance Measures for Biosecurity Victoria.
Actions
1.
Government policy and objectives
Ensuring that Victoria has contemporary and efficient legislation that will enable the management of known and emerging biosecurity risks
remains a priority for Biosecurity Victoria.
Over the past twelve months, several significant pieces of legislative reform have been delivered, including the adoption of the National Land
Transport Standards into the Livestock Management Regulations (March 2013). Legislation relating to dog breeding establishments has been
improved through the Domestic Animals Amendment (Puppy Farm Enforcement and Other Matters) Act 2011.
Progress has been made towards the legislative changes required to implement new directions for management of roadside weeds. The
Business Impact Assessment has been completed. The new Bill has been drafted, approved by Cabinet and introduced to Parliament. Local
government councils are submitting Roadside Plans for sign-off and implementation.
A review of Victoria’s biosecurity legislation and administration as it relates to the National Environmental Biosecurity Response Agreement has
been completed. In response, new invasive species management legislation is being developed to address gaps identified in the current legislation. A conceptual framework for the proposed new legislation was developed in 2012. A public consultation program on the framework was
completed in October 2012 and submissions were considered in early 2013. A Business Impact Assessment for the proposal is being prepared.
Biosecurity Victoria has actively pursued the development of improved co-regulatory arrangements for a number of established plant pests.
These new arrangements have been largely accepted by interstate jurisdictions and have involved revised regulation of Queensland fruit fly with
a focus on establishing pest free areas (where possible) and easing biosecurity restrictions for trade of Queensland fruit fly host material, mainly
through the Melbourne Markets. Similar outcomes are being achieved for the potato and nursery industries, with revised property-based
management arrangements for potato cyst nematode endorsed for national adoption.
The changes to biosecurity restrictions relating to Queensland fruit fly will reduce the regulatory burden on growers by approximately $18 million
a year, significantly contributing to achieving the Victorian government’s target of reducing red tape by 25 per cent by July 2014.
Other significant areas of policy review undertaken in the last twelve months include:
•
a review of Victoria’s dangerous dogs policy
•
a major review of the code of practice for the operation of dog and cat breeding and rearing businesses
•
a review of the 1080 regulatory framework
•
a review of chemical control-of-use licensing requirements, seeking alignment with other state arrangements where appropriate.
Regulatory responses
Biosecurity Victoria aims to ensure that regulatory responses are fit-for-purpose and that enforcement focuses on the failure of individuals and
entities to meet their regulatory obligations, especially where that failure impacts on the rights of others. Biosecurity Victoria has developed an
initial training program for new regulatory officers that will be delivered across the division, ensuring that all new officers have the capability
required for good regulatory practice within the scope of their authorised roles and responsibilities.
A summary of major compliance activity for the last 12 months is shown below.
Compliance activity
Detail
Activity
Outcome
Weeds and pest animals
Targeted compliance
activities for regionally
controlled weeds and
rabbits
2,199 properties inspected (covering
254,329 Ha)
126 property owners
issued with compliance
notices; 29 property
owners issued with Infringement Notices; 15
prosecutions conducted
and 12 property owners
issued official warning
letters
Response to reports
200 incident reports.
Trapping and baiting
Trapping occurred at
1575 locations and 8,599
baits were laid on public
land across all 15 Local
Area Control Plan zones
363 dogs removed from
the wild
Alleged cases of cruelty,
disease-related welfare
issues and emergency
events such as truck
rollovers and bushfires
600 events/investigations
Compliance and treatment programs for
regionally prohibited
weeds
Wild dog control
Animal welfare
Our animal welfare effort has been augmented through the empowerment of RSPCA inspectors for illegal puppy farms enforcement under the
Domestic Animals Act 1994.
Risk based approaches
Biosecurity Victoria uses risk-based approaches to guide the delivery of regulatory outcomes and continually seeks to reduce the regulatory
burden on groups and individuals.
Continued collaboration with the Commonwealth in national residue and industry generated surveys provides intelligence for follow-up on possible breaches of chemical use and assists with focused, risk-based targeted residue monitoring.
Systems and continuous improvement
Biosecurity Victoria is actively encouraging uptake of Property Identification Codes (PICs) for the plant-based industries. More than 570 PICs
have been allocated within the viticulture industries and work is about to commence to include the chestnut industry.
The division continues to work with industry on the development of an electronic National Livestock Identification System (NLIS) for sheep and
goats. Where possible, commercial applications for electronic NLIS technology will be developed.
Emergency preparedness and management
Victoria has a lead role in the planning, development and implementation of nationally accredited qualifications for biosecurity emergency response training.
Plant health
Plant Health Australia and DPI co-funded work to increase surveillance for exotic pests of bees. Ninety beekeeper members of the State
Quarantine Response Team have received training to enable them to assist with surveillance in the event of an incursion of Varroa mite.
Biosecurity Victoria is working with the Commonwealth Department of Agriculture, Fisheries and Forestry’s biosecurity division in exotic plant
pest monitoring (e.g. Asian gypsy moth and exotic fruit flies) at key locations around the state. With Melbourne City Council, Biosecurity Victoria
is monitoring for Dutch elm disease. More than 2,500 personnel from industry, state government agencies, local government and community
groups have been through information sessions and training to assist management and containment of myrtle rust in Victoria.
The eradication program for chestnut blight continues to be supported under national cost sharing arrangements. Trading arrangements for nuts
from some lightly infected properties have been negotiated to minimise impacts on business viability during this campaign while still effectively
managing the risk of disease spread.
Ongoing action has been required to address green snails, potato spindle tuber viroid, and fruit fly infestations.
Animal health
Six animal health staff participated in foot-and-mouth disease training in Nepal, which was sponsored by the Commonwealth Department of
Agriculture, Fisheries and Forestry.
Victorian staff assisted New South Wales with the depopulation of 50,000 birds on one property affected by an outbreak of highly pathogenic
avian influenza.
Invasive species
Scenario planning and training for the high-priority pest tramp ants was conducted and evaluated in November 2012.
Biosecurity Victoria has responded to reports of high risk invasive animals in Victoria. Over the last twelve months, one cane toad, two corn
snakes, 74 smooth newts and 12 red eared slider turtles have been recovered, captured or seized.
Ongoing action has been required to address Salvinia and alligator weed (aquatic state prohibited weeds) infestations.
Influencing a national approach to policy development, regulation and standards
Biosecurity Victoria continues to actively participate in national reform activities to create a more unified and focused national biosecurity system.
For example, the Victorian Government, through the National Biosecurity Committee contributes to a number of the Working Groups established
to address matters associated with the Inter-Government Agreement on Biosecurity. Biosecurity Victoria has continued to lead and inform national policy development through its active representation on the Vertebrates Pest Committee, the Australian Weeds Committee, Animal Health
Committee and Plant Health Committee and their associated working groups.
Victoria is leading the development of a Regulatory Impact Statement for the proposed Australian Animal Welfare Standards and Guidelines –
Livestock in Saleyards (Saleyard Welfare Standards) that will replace the Code of Practice for the Welfare of Animals at Saleyards, allowing for
the regulation of the standards in state and territory legislation.
The division continues to pursue the improvement and harmonisation of regulatory policy for the control and use of agricultural and veterinary
chemicals.
Local consideration of national obligations has seen Victoria, through the Biosecurity Standing Committee, reach agreement on assigning roles
and responsibilities for the priority areas of marine and wildlife biosecurity that in the past have been difficult to address.
2.
Stakeholder relationships and management
The division convenes or contributes to a number of Ministerial, statutory and departmental committees in relation to operational, policy and
strategic issues across the biosecurity portfolio, including Victoria’s Cattle, Sheep and Goat, Apiary and Swine Compensation Fund Advisory
Committees and the Wild Dog Control Advisory Committee.
Other significant relationships and arrangements include:
•
•
•
•
•
•
•
•
•
a formal working agreement with the Victorian Department of Health for the surveillance and management of zoonotic diseases
the successful Responsible Pet Ownership Program, delivered to children, teachers, and parents at Victorian kindergartens and primary
schools, and to maternal health nurses in hospitals
re-established funding for the community Responsible Pet Ownership Program, including through Councils
appointment of an additional Project Officer - Local Government Liaison to advise Council officers and the community on legislation, enhance
training programs for council officers, develop enhancements to the Victorian Declared Dog Registry and develop an on-line manual of
procedures and operations for Council officers
the Forest and Timber Industry Network and Biosecurity Framework in collaboration with industry and other government stakeholders to
prioritise biosecurity issues for this sector
more than 3,000 registered Weed Spotters supporting the detection of state prohibited weeds
cross agency partnerships with the former DSE and Parks Victoria for wild dog baiting and the development of whole of government investment priorities for invasive plant and animal management, research and data solutions
partnerships with industry that result in the adoption of invasive pest and animal prevention, eradication or containment practices
progress in building the capacity of municipal councils to manage roadside issues.
Information exchange between the Department and the Minister
Biosecurity Victoria aims to provide prompt responses and authoritative advice to Ministerial correspondence on a wide range of biosecurity
issues. The division has sought to improve the value of this report by taking account of an independent review of Statement of Expectations
reporting (undertaken after our first report in 2011-12) and subsequent discussion at the Forum of Primary Industries Regulators in May 2013.
3.
Accountability and transparency
Biosecurity Victoria reports against ten Department of Treasury and Finance output measures and programs are regularly the subject of review
by VAGO.
The recent VAGO audit into the Effectiveness of Compliance Activities: Departments of Primary Industries and Sustainability and Environment
(October 2012) found that there is much work to do to ensure that our compliance activities contribute to protecting natural resources, primary
industries and the environment as the legislation intended. These issues are being progressively addressed.
Other opportunities for external audit such as an ISO 9001:2008 audit of administrative processes in the animal health program are used to both
demonstrate the quality of our programs and identify areas for further improvement.
Performance indicators for biosecurity
Biosecurity Victoria worked with other areas of the department to develop an evaluation and performance monitoring system. This system will be
used to monitor the performance of the biosecurity portfolio.
Financial Statements –
30 June 2013
Contents
Page
Accountable Officer’s and Chief Finance Officer’s declaration
Auditor-General’s report
105
106–107
Comprehensive operating statement
108
Balance sheet
109
Statement of changes in equity
110
Cash flow statement
111
Notes to the financial statements
112
These financial statements cover the Department of Primary Industries as an individual entity and are presented in Australian currency.
The Department of Primary Industries is a government department of the State of Victoria. The Department was established by an Order in Council made pursuant to the Public Sector
Management and Employment Act 1998 on 5 December 2002.
The Department’s principal address is:
Department of Primary Industries
1 Spring Street
Melbourne VIC 3001
A description of the nature of the Department’s operations and its principal activities is included in the Report of Operations which does not form part of these financial statements.
The financial statements were authorised for issue by Matthew Clancy (Chief Finance Officer) on 12 September 2013.
For any queries in relation to our reporting please call 136 186, or refer to our website http://www.depi.vic.gov.au
Accountable Officer’s and Chief Finance Officer’s declaration
We certify that the attached financial statements for the Department of Primary Industries have been prepared in accordance with Standing
Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards, including
Interpretations, and other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes
in Equity, Cash Flow Statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year
ended 30 June 2013 and financial position of the Department as at 30 June 2013.
We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.
We authorise the financial statements for issue on 12 September 2013.
Adam Fennessy
Secretary
Department of Environment and Primary Industries
Melbourne
12 September 2013
Matthew Clancy
Chief Finance Officer
Department of Environment and Primary Industries
Melbourne
12 September 2013
Auditor General’s report
Auditor General’s report
Comprehensive operating statement
For the financial year ended 30 June 2013
Note
2013
$’000
2012
$’000
451,856
436,535
-
6,000
Income from transactions
Output appropriations
26
Special appropriations
Interest
5(a)
3,156
3,653
Sale of goods and services
5(b)
45,885
39,406
Grants
5(c)
11,920
3,556
8
22
512,825
489,172
Other income
Total income from
transactions
Expenses from transactions
Employee expenses
6(a)
191,794
195,877
Depreciation and amortisation
6(b)
30,514
27,474
Interest expense
6(c)
22,750
6,536
Grants and other transfers
6(d)
80,543
60,782
Capital asset charge
34,414
33,168
176,638
171,501
Total expenses from
transactions
536,653
495,338
Net result from transactions (net operating balance)
(23,828)
(6,166)
Other operating expenses
6(e)
Other economic flows
included in net result
Net gain/(loss) on
non-financial assets
7(a)
4,448
4,209
Net gain/(loss) on financial
instruments
7(b)
(28)
54
149
(1,233)
4,569
3,030
(19,259)
(3,136)
Other gains/(losses) from
other economic flows
Total other economic
flows included in net
result
Net result for the period
Other economic flows other comprehensive
7(c)
income
Items that may be reclassified to net result
Changes to financial assets
available-for-sale revaluation surplus
25
19
19
Total other economic
flows – other comprehensive income
19
19
Comprehensive result
(19,240)
(3,117)
The comprehensive operating statement should be read in conjunction
with the notes.
Balance sheet
As at 30 June 2013
Note
2013
$’000
2012
$’000
Cash and deposits
24
60,052
71,128
Receivables
8
135,139
134,059
Investments and other
financial assets
9
15,853
15,834
211,044
221,021
Assets
Financial assets
Total financial assets
Non-financial assets
Inventories
12
392
403
Non-financial physical
assets classified as held for
sale
11
123
619
Property, plant & equipment
13
738,492
569,207
Biological assets
14
38,164
32,984
Intangible assets
15
51,986
13,691
Prepayments
Total non-financial assets
Total assets
1,866
3,265
831,023
620,169
1,042,067
841,190
Liabilities
Payables
16
102,288
103,672
Borrowings
17
267,534
68,677
Provisions
18
59,740
66,045
1
2,532
4,587
4,163
Total liabilities
434,150
245,089
Net assets
607,917
596,101
Deposits repayable
Unearned income
Equity
Accumulated surplus/(deficit)
(40,080)
(20,821)
254,154
254,135
Contributed capital
393,843
362,787
Net worth
607,917
596,101
Reserves
25
Commitments for expenditure
21
Contingent liabilities
22
The balance sheet should be read in conjunction with the accompanying
notes.
Statement of changes in equity
For the financial year ended 30 June 2013
Physical
Asset Revaluation
Surplus
$’000
Available-for-sale
Financial
Asset Revaluation
Surplus
$’000
Accumulated Surplus/(Deficit
)
$’000
Contributed
Capital
$’000
Total
$’000
Balance at 1
July 2011
254,022
94
(17,685)
334,775
571,206
Net result for
the year
-
-
(3,136)
-
(3,136)
Other comprehensive
income
-
19
-
-
19
Capital appropriations
-
-
-
12,291
12,291
Capital Contributions of
non-current
assets by/(to)
Victorian State
Government
entities
-
-
-
15,721
15,721
Balance at 30
June 2012
254,022
113
(20,821)
362,787
596,101
-
-
(19,259)
-
(19,259)
-
19
-
-
19
Capital appropriations
-
-
-
28,601
28,601
Capital Contributions of
non-financial
assets by/(to)
Victorian State
Government
entities
-
-
-
2,455
2,455
Balance at 30
June 2013
254,022
132
(40,080)
393,843
607,917
Note
Net result for
the year
Other comprehensive
income
25
The statement of changes in equity should be read in conjunction with
the accompanying notes.
Cash flow statement
For the financial year ended 30 June 2013
2013
$’000
2012
$’000
Receipts from Government
460,173
444,540
Receipts from other entities
52,309
49,978
Goods and Services Tax
recovered from the ATO
19,714
19,515
Note
Cash flows from operating activities
Receipts
Interest received
3,156
3,653
535,352
517,686
(86,827)
(66,146)
(387,121)
(387,173)
Capital asset charge
(34,414)
(33,168)
Interest and other costs of
finance paid
(22,750)
(6,536)
(531,112)
(493,023)
4,240
24,663
Total receipts
Payments
Payments of grants and
other transfers
Payments to suppliers and
employees
Total payments
Net cash flows
from/(used in) operating
activities
24(b)
Cash flows from investing
activities
Proceeds from investments
(2,562)
1,584
(238,593)
(29,019)
4,849
6,014
Payments for joint venture
(6,468)
(6,413)
Net cash flows
from/(used in) investing
activities
(242,774)
(27,834)
Owner contributions by
State Government
28,601
12,291
Repayment of finance
liability
197,984
(2,646)
Proceeds from borrowings
3,669
2,797
Repayment of borrowings
(2,797)
(2,803)
Net cash flows
from/(used in) financing
activities
227,458
9,639
Net increase/(decrease)
in cash and cash equiv-
(11,077)
6,468
Purchases of
non-financial assets
Proceeds from sale of
non-financial assets
Cash flows from financing
activities
alents
Cash and cash equivalents
at the beginning of the
financial year
Cash and cash equivalents at the end of the
financial year
24(a)
71,128
64,660
60,052
71,128
The above cash flow statement should be read in conjunction with the
accompanying notes.
Notes to the financial statements
Note 1.
Summary of significant accounting policies
113
Note 2.
Departmental (Controlled) Outputs
127
Note 3.
Administered (non-controlled) items
130
Note 4.
Restructure of Administrative Arrangements
132
Note 5.
Income from transactions
132
Note 6.
Expenses from transactions
133
Note 7.
Other economic flows included in net result
134
Note 8.
Receivables
135
Note 9.
Investments and other financial assets
136
Note 10. Joint Ventures
137
Note 11.
141
Non-financial physical assets classified as held for sale
Note 12. Inventories
141
Note 13. Property, plant and equipment
142
Note 14. Biological assets
145
Note 15. Intangible Assets
146
Note 16. Payables
147
Note 17. Borrowings
148
Note 18. Provisions
149
Note 19. Superannuation
150
Note 20. Leases
151
Note 21. Commitments for expenditure
153
Note 22. Contingent liabilities
155
Note 23. Financial instruments
155
Note 24. Cash flow information
161
Note 25. Reserves
162
Note 26. Summary of compliance with annual parliamentary and special appropriations
163
Note 27. Ex-gratia payments
164
Note 28. Annotated income agreements
164
Note 29. Trust account balances
165
Note 30. Responsible persons
167
Note 31. Remuneration of executives and payments to other personnel
168
Note 32. Remuneration of auditors
169
Note 33. Subsequent events
169
Note 34. Glossary of terms
170
Note 1. Summary of significant accounting policies
The annual financial statements represent the audited general purpose financial statements for the Department of Primary Industries (the Department). The purpose of the report is to provide users with information about the Department’s stewardship of resources entrusted to it.
(a)
Statement of compliance
These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable
Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector
Financial Reporting.
Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
To gain a better understanding of the terminology used in this report, a glossary of terms can be found in Note 34.
The annual financial statements were authorised for issue by the Secretary and Chief Finance Officer on 12 September 2013.
(b)
Basis of accounting preparation and measurement
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and
expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to
be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these
estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the
revision.
Judgements and assumptions made by management in the application of AASs that have significant effect on the financial statements and
estimates relate to:
•
the fair value of land, buildings, plant and equipment, (refer to Note 1 (l))
•
superannuation expense (refer to Note 1(g))
•
actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary
movement and future discount rates (refer to Note 1 (m))
•
useful life of assets (refer to Note 1(g)).
These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention except for:
•
non-current physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value
•
productive trees in commercial native forests which are recognised at their fair value less costs to sell; the fair value of an asset other than
land is generally based on its depreciated replacement value
•
available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.
(c) Reporting entity
The financial statements cover the Department of Primary Industries as an individual reporting entity, and only include activities of the Department.
The Department is a government department of the State of Victoria, established pursuant to an order made by the Premier under the Public
Sector Management and Employment Act 1998 on 5 December 2002.
Its principal address is:
Department of Primary Industries
1 Spring Street
Melbourne VIC 3000
The Department is an administrative agency acting on behalf of the Crown.
The financial statements include all the controlled activities of the Department of Primary Industries.
On 9 April 2013, the Government issued an administrative order restructuring some of its activities via machinery of government changes,
effective from 1 July 2013. As part of the machinery of government restructure, the department’s Agriculture and Food Security portfolio has
been transferred to the Department of Environment and Primary Industries, and the Department’s Earth and Energy Resources portfolio has
been transferred to the Department of State Development, Business and Innovation for future financial periods. The Department of Primary
Industries ceased to exist from 1 July 2013.
Objectives and funding
The Department of Primary Industries designs and delivers government policies and programs which enable Victoria’s primary industries to
sustainably maximise employment, wealth and wellbeing for Victorian families, regions and communities.
The Department has three main objectives:
•
competitive businesses and efficient markets through increased productivity, access to global trade and investment, and improved market
structure and function
•
sustainably managed natural resources through efficient and sustainable allocation, and use and management of natural resources
•
engaged safe and responsible communities through improved community engagement, recreation and capacity building, and enhanced
human safety and animal welfare.
The Department of Primary Industries is responsible for agriculture, earth resources, energy, fisheries, forestry and game in Victoria.
The Department is predominantly funded by accrual-based parliamentary appropriations for the provision of outputs that are further described in
Note 2 Departmental (controlled) outputs. It also provides, on a fee for service basis, various goods and services. The fees charged for these
services are determined by prevailing market forces.
Outputs of the Department
Information about the Department’s output activities and the expenses, income, assets and liabilities which are reliably attributable to those
output activities, is set out in the output activities schedule (see Note 2). Information about expenses, income, assets and liabilities administered
by the Department are given in the schedule of administered expenses and incomes and the schedule of administered assets and liabilities (see
Note 3).
(d)
Basis of consolidation
In accordance with AASB 127 Consolidated and Separate Financial Statements:
•
The consolidated financial statements of the Department incorporates assets and liabilities of all reporting entities controlled by the Department as at 30 June 2013, and their income and expenses for that part of the reporting period in which control existed.
•
The consolidated financial statements exclude bodies within the Department’s portfolio that are not controlled by the Department and
therefore are not consolidated. Bodies and activities that are administered (see explanation below under administered items) are also not
controlled and not consolidated.
Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date
on which control commenced. Where control ceases during the financial period, the entity’s results are included for that part of the period in which
control existed. Where dissimilar accounting policies are adopted by entities and their effect is considered material, adjustments are made to
ensure consistent policies are adopted in these financial statements.
Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated
as equity transactions and, therefore, do not form part of the income and expenses of the Department.
Jointly controlled assets and operations
Interests in jointly controlled assets or operations are not consolidated by the Department, but are accounted for in accordance with the policy
outlined in Note 1(k) Financial assets.
Administered items
Certain resources are administered by the Department on behalf of the State. While the Department is accountable for the transactions involving
administered items, it does not have the discretion to deploy the resources for its own benefit or the achievement of its objectives. Accordingly,
transactions and balances relating to administered items are not recognised as departmental income, expenses, assets or liabilities within the
body of the financial statements.
Administered income includes taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered
assets include government income earned but yet to be collected. Administered liabilities include government expenses incurred but yet to be
paid.
Except as otherwise disclosed, administered resources are accounted for on an accrual basis using the same accounting policies adopted for
recognition of the departmental items in the financial statements. Both controlled and administered items of the Department are consolidated into
the financial statements of the State.
Disclosures related to administered items can be found in Note 3.
(e)
Scope and presentation of financial statements
Comprehensive operating statement
Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or other
economic flows. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of
financial statements.
‘Transactions’ and other economic flows are defined by the Australian system of government finance statistics: concepts, sources and methods
2005 and Amendments to Australian Systems of Government Finance Statistics, 2005 (ABS Catalogue. No. 5514.0) (the GFS manual, refer to
Note 44).
‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by
mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner
of the depreciating asset and as the consumer of the service provided by the asset. Transactions can be in kind (e.g. assets provided/given free
of charge or for nominal consideration) or where the final consideration is cash.
Other economic flows are changes arising from market remeasurements. They include:
•
gains and losses from disposals;
•
revaluations and impairments of property, plant and equipment and intangible assets;
•
fair value changes of financial instruments; and
•
depletion of natural assets (non-produced) from their use or removal.
The net result is equivalent to profit or loss derived in accordance with AASs.
Balance sheet
Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets.
Current and non-current assets and liabilities (non-current being those assets or liabilities expected to be recovered or settled more than 12
months after the reporting period) are disclosed in the notes, where relevant.
Cash flow statement
Cash flows are classified according to whether or not they arise from operating, investing, or financing activities. This classification is consistent
with requirements under AASB 107 Statement of cash flows.
Statement of changes in equity
The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the
‘Comprehensive result’ and amounts recognised in ‘Other economic flows – other movements in equity’ related to ‘Transactions with owner in its
capacity as owners’.
Rounding of amounts
Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial
statements may not equate due to rounding.
(f)
Income from transactions
Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured.
Appropriation income
Appropriated income becomes controlled and is recognised by the Department when it is appropriated from the consolidated fund by the Victorian Parliament and applied to the purposes defined under the relevant appropriations act. Additionally, the Department is permitted under
Section 29 of the Financial Management Act 1994 to have certain income annotated to the annual appropriation. The income which forms part of
a Section 29 agreement is recognised by the Department and the receipts paid into the Consolidated Fund as an administered item. At the point
of income recognition, Section 29 provides for an equivalent amount to be added to the annual appropriation.
Examples of receipts which can form part of a Section 29 agreement are Commonwealth specific purpose grants, municipal council special
purpose grants, the proceeds from the sale of assets and income from the sale of products and services.
Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. All amounts of income over which the Department does not have control are disclosed as administered income in the schedule of administered income and expenses (see Note 3).
Income is recognised for each of the Department’s major activities as follows:
Output appropriations
Income from the outputs the Department provides to Government is recognised when those outputs have been delivered and the relevant
Minister has certified delivery of those outputs in accordance with specified performance criteria.
Special appropriations
Under section 28 of the Financial Management Act 1994, income is recognised when the amount appropriated for that purpose is due and
payable by the Department.
Interest income
Interest income includes unwinding over time of discounts on financial assets and interest received and/or receivable on bank term deposits and
other investments.
Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as
part of income from other economic flows in the net result or as unrealised gains and losses taken directly to equity, forming part of the total
change in net worth in the comprehensive result.
Sales of goods and services
Income from the provision of services
Income from the provision of services is recognised by reference to the stage of completion basis. The income is recognised when:
•
the amount of the income, stage of completion and transaction costs incurred can be reliably measured
•
it is probable that the economic benefits associated with the transaction will flow to the Department.
Under the stage of completion method, income is recognised by reference to labour hours supplied or as a percentage of total services to be
performed in each annual reporting period.
Where the provision of services is incomplete at the reporting date, the value of the incomplete portion is recognised as unearned income for the
period and classified as a liability.
Income from sale of goods
Income from the sale of goods is recognised by the Department when:
•
the Department no longer has any of the significant risks and rewards of ownership of the goods have transferred to the buyer
•
the Department retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over
the goods sold
•
the amount of income, and the costs incurred or to be incurred in respect of the transaction can be reliably measured
•
it is probable that the economic benefits associated with the transaction will flow to the Department.
Grants
Grants from third parties (other than contribution by owners) are recognised as income in the reporting period in which the Department gains
control over the underlying assets.
(g)
Expenses from transactions
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee expenses
Refer to the section in Note 1(m) regarding employee benefits.
These expenses include all costs related to employment (other than superannuation which is accounted for separately) including wages and
salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums.
Employee expenses include superannuation expenses which are reported differently depending upon whether employees are members of
defined benefit or defined contribution plans. In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense
is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting
period. Employer superannuation expenses in relation to employees who are members of defined benefit superannuation plans are described
below.
Superannuation – State superannuation defined benefit plans
The amount recognised in the comprehensive operating statement in relation to employer contributions for members of both defined benefit and
defined contribution superannuation plans is simply the employer contributions that are paid or payable to these plans during the reporting
period.
The Department of Treasury and Finance (DTF) in their Annual Financial Statements, recognise on behalf of the State as the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability. Refer to DTF’s Annual Financial Statements for more detailed disclosures in relation to these plans.
Depreciation and amortisation
All buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases and assets held-for-sale) that
have a limited useful life are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less
any estimated residual value, over its estimated useful life.
Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line
method.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, and adjustments are made
where appropriate.
The following are typical estimated useful lives for the different asset classes for current and prior years:
Asset class
Useful life
Buildings and structures
5 - 50 years
Plant and equipment
3 - 20 years
Motor vehicles
Up to 3 years
Software
Up to 10 years
Cultural Assets
100 years
Land and core cultural assets which are considered to have an indefinite life, are not depreciated. Depreciation is not recognised in respect of
these assets as their service potential has not, in any material sense, been consumed during the reporting period.
Intangible produced assets with finite useful lives are depreciated as an expense from transactions on a systematic (typically straight-line) basis
over the asset’s useful life. Depreciation begins when the asset is available for use, that is, when it is in the location and condition necessary for
it to be capable of operating in the manner intended by management.
Interest expense
Interest expenses are recognised as expenses in the period in which they are incurred. Refer to glossary of terms in Note 34 for an explanation
of interest expense items.
Grants and other transfers
Grants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting period in which they
are paid or payable.
Capital asset charge
The capital asset charge is calculated on the budgeted carrying amount of applicable non-financial physical assets.
Other operating expenses
Other operating expenses generally represent the day to day running costs incurred in normal operations and include:
Supplies and services
Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any
inventories held for distribution are expensed when distributed.
Bad and doubtful debts
Refer Note 1(k) Financial assets – Impairment of financial assets.
(h)
Other economic flows included in the net result
Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions and include:
Net gain/(loss) on non-financial assets
Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
Revaluation gains/(losses) of non-financial physical assets
Refer to accounting policy of Property, plant and equipment, provided in Note 1(l) Non-financial assets.
Gain/(loss) arising from fair value changes of biological assets
Biological assets are measured at fair value, and the resultant gain/(loss) is reported as another economic flow.
Disposal of non-financial assets
Any gain or loss on the sale of non-financial assets is recognised at the date that control of the asset is passed to the buyer and is determined
after deducting from the proceeds the carrying value of the asset at that time.
Impairment of non-financial assets
Goodwill and intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (i.e.
as to whether their carrying value exceeds their recoverable amount, and so require write downs) and whenever there is an indication that the
asset may be impaired.
All other assets are assessed annually for indications of impairment, except for:
•
inventories
•
biological assets
•
non-financial physical assets held for sale.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable
amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an other economic flow, except to the
extent that the write down can be debited to an asset revaluation surplus amount applicable to that class of asset.
If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was
recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that
the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised in prior years.
It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a
specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement
cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the
present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.
Net gain/(loss) on financial instruments
Net gain/(loss) on financial instruments includes:
•
realised and unrealised gains and losses from revaluations of financial instruments at fair value;
•
impairment and reversal of impairment for financial instruments at amortised cost; and
•
disposals of financial assets and derecognition of financial liabilities.
Revaluations of financial instruments at fair value
The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as
part of income from transactions.
Share of net profits/(losses) of associates and joint entities, excluding dividends.
Refer to Note 1(d) Basis of consolidation
Other gains/(losses) from other economic flows
Other gains/(losses) from other economic flows include the gains or losses from:
•
transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification; and
•
the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.
(i)
Administered income
Fines, royalties and regulatory fees
The Department does not gain control over assets arising from fines, royalties and regulatory fees, consequently no income is recognised in the
Department’s financial statements.
The Department collects these amounts on behalf of the State. Accordingly, the amounts are disclosed as income in the schedule of Administered Items (see Note 3).
Grants from Commonwealth Government
The Department’s administered grants mainly comprise funds provided by the Commonwealth to assist the State government in meeting general
or specific service delivery obligations, primarily for the purpose of aiding the financing of the operations of the recipient and capital purposes.
Grants also include grants from other jurisdictions.
The Department also receives grants for on passing from other jurisdictions. The Department does not have control over these grants, and the
income is not recognised in the Department’s financial statements. Administered grants are disclosed in the schedule of Administered Items in
Note 3.
Commonwealth grants are disclosed as income in the schedule of Administered Items (see Note 3).
(j)
Financial instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the Department’s activities, certain financial assets and financial liabilities arise under statute
rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial
Instruments: Presentation.
Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition
of financial instruments in accordance with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
Categories of non-derivative financial instruments
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These
assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Loans and receivables category includes cash and deposits (refer to Note 1(k)), term deposits with maturity greater than three months, trade
receivables, loans and other receivables, but not statutory receivables.
Available-for-sale financial assets
Available-for-sale financial instrument assets are those designated as available for sale or not classified in any other category of financial instrument asset.
Such assets are initially recognised at fair value. Subsequent to initial recognition, they are measured at fair value with gains and losses arising
from changes in fair value, recognised in ‘Other economic flows – other comprehensive income’ until the investments are disposed.
Movements resulting from impairment and foreign currency changes are recognised in the net result as other economic flows. On disposal, the
cumulative gain or loss previously recognised in ‘Other economic flows – other comprehensive income’ is transferred to other economic flows in
the net result.
Fair value is determined in the manner described in Note 23 Financial instruments.
Available-for-sale category includes certain equity investments and those debt securities that are designated as available-for-sale.
Financial liabilities at amortised cost
Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference
between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interestbearing liability,
using the effective interest rate method.
Financial instrument liabilities measured at amortised cost include all contractual payables, deposits held and advances received, and interestbearing arrangements other than those designated at fair value through profit or loss.
Reclassification of financial instruments
Subsequent to initial recognition and under rare circumstances, non derivative financial instruments assets that have not been designated at fair
value through profit or loss upon recognition, may be reclassified out of the fair value through profit or loss category, if they are no longer held for
the purpose of selling or repurchasing in the near term.
Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair value through profit and loss
category into the loans and receivables category, where they would have met the definition of loans and receivables had they not been required
to be classified as fair value through profit and loss. In these cases, the financial instrument assets may be reclassified out of the fair value
through profit and loss category, if there is the intention and ability to hold them for the foreseeable future or until maturity.
Available-for-sale financial instrument assets that meet the definition of loans and receivables may be reclassified into the loans and receivables
category if there is the intention and ability to hold them for the foreseeable future or until maturity.
(k) Financial assets
Cash and deposits
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an
original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment
purposes, and which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.
For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the
balance sheet.
Receivables
Receivables consist of:
•
statutory receivables, such as amounts owing from the Victorian Government and Goods and Services Tax (GST) input tax credits recoverable; and
•
contractual receivables, such as debtors in relation to goods and services, loans to third parties, accrued investment income, and finance
lease receivables (refer to Note 1(n) Leases).
Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an
allowance for impairment.
A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off
when identified (refer to Note 1(k) Impairment of financial assets).
Investments and other financial assets
Investments are classified in the following categories:
•
financial assets at fair value through profit or loss,
•
loans and receivables, and
•
available-for-sale financial assets.
The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.
The Department assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
Investments in jointly controlled assets
In respect of any interest in jointly controlled assets, the Department recognises in the financial statements:
•
its share of jointly controlled assets,
•
any liabilities that it has incurred,
•
its share of liabilities incurred jointly by the joint venture,
•
any income earned from the selling or using of its share of the output from the joint venture, and
•
any expenses incurred in relation to being an investor in the joint venture.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
•
the rights to receive cash flows from the asset have expired; or
•
the Department retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay
to a third party under a ‘pass through’ arrangement; or
•
the Department has transferred its rights to receive cash flows from the asset and either:
(a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where the Department has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised
to the extent of the Department’s continuing involvement in the asset.
Impairment of financial assets
At the end of each reporting period, the Department assesses whether there is objective evidence that a financial asset or group of financial
assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for
impairment.
Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by mutual consent are
classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as other
economic flows in the net result.
(l)
Non-Financial Assets
Inventories
Inventories include goods and other property held either for sale, or for distribution at zero or nominal cost, or for consumption in the ordinary
course of business operations. It includes land held-for-sale and excludes depreciable assets.
Inventories acquired for no cost or nominal consideration are measured at current replacement cost at the date of acquisition.
Non-financial physical assets classified as held-for-sale, including disposal group assets
Non-financial assets, disposal groups, and related liabilities are treated as current and classified as held-for-sale if their carrying amount will be
recovered through a sale transaction rather than through continuing use.
This condition is regarded as met only when:
•
the asset is available for immediate use in the current condition; and
•
the sale is highly probable and the asset’s sale is expected to be completed within twelve months from the date of classification.
These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair value less costs
to sell, and are not subject to depreciation or amortisation.
Property, plant and equipment
All non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a
machinery of government change are transferred at their carrying amount.
The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased asset or, if
lower, the present value of the minimum lease payments, each determined at the inception of the lease.
Non-financial physical assets such as land and buildings are measured at fair value with regard to the property’s highest and best use after due
consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to
the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually
certain that the restrictions will no longer apply.
Non-financial physical assets are measured at fair value to accord with the Australian Accounting Standards. Fair value is measured at the
asset’s market price in an active and liquid market however if the fair value cannot be reliably determined using market based evidence, the
asset’s fair value is measured using depreciated replacement cost.
Land assets have been valued based on market evidence and specialised buildings valued utilising the depreciated replacement cost.
The fair value of plant, equipment and vehicles is normally determined by reference to the asset’s depreciated replacement cost. For plant,
equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the
short lives of the assets concerned.
For the accounting policy on impairment of non-financial physical assets, refer to impairment of non-financial assets under Note 1(h) Impairment
of non-financial assets.
Leasehold improvements
The cost of a leasehold improvement is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life
of the improvements, whichever is the shorter.
Non-financial physical assets arising from finance leases
Refer to Note 1(n) Leases.
Non-financial physical assets constructed by the Department
The cost of non-financial physical assets constructed by the Department includes the cost of all materials used in construction, direct labour on
the project, and an appropriate proportion of variable and fixed overheads.
Revaluations of non-financial physical assets
Non-financial physical assets are measured at fair value in accordance with Financial Reporting Direction (FRD) 103D issued by the Minister for
Finance. A full revaluation normally occurs every five years, based on the asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations
and any interim revaluations are determined in accordance with the requirements of the FRDs.
The Department has been allocated to the ‘Public Safety and Environment’ purpose group in accordance with FRD 103D. The next scheduled
revaluation is 2015-16.
Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.
Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in other
comprehensive income and accumulated in equity under the asset revaluation surplus, except that the net revaluation increase shall be recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment
previously recognised as an expense (other economic flows) in the net result.
Net revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except that the net revaluation
decrease shall be recognised in other comprehensive income to the extent that a credit balance exists in the revaluation surplus in respect of the
same class of property, plant and equipment. The net revaluation decrease recognised in other comprehensive income reduces the amount
accumulated in equity under the asset revaluation surplus.
Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment, are offset against one another
within that class but are not offset in respect of assets in different classes. Any asset revaluation surplus is not normally transferred to accumulated funds on de-recognition of the relevant asset.
Biological assets
The Department recognises commercial native timber and breeding livestock as biological assets. These biological assets are measured at fair
value less costs to sell and are revalued at 30 June each year.
For productive trees, revaluation to fair value is based on the amount that could be expected to be received from the expected net future cash
flows, discounted by a current market determined rate. After harvest, productive trees are treated as inventories.
For breeding livestock, fair value is based on the amount that could be expected to be received from the disposal of livestock with similar attributes.
An increase or decrease in the fair value of these biological assets is recognised as an ‘other economic flow’ in the comprehensive operating
statement.
Intangible assets
Purchased intangible assets are initially measured at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated depreciation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised, when it is expected
that additional future economic benefits will flow to the State.
When the recognition criteria in AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and measured at cost
less accumulated amortisation and impairment.
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and
only if, all of the following are demonstrated:
(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale;
(b) an intention to complete the intangible asset and use or sell it;
(c) the ability to use or sell the intangible asset;
(d) the intangible asset will generate probable future economic benefits;
(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
(f) the ability to measure reliably the expenditure attributable to the intangible asset during its development.
Other non-financial assets
Prepayments
Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure
made in one accounting period covering a term extending beyond that period.
(m)
Liabilities
Payables
Payables consist of:
•
contractual payables, such as accounts payable, and accrued expenditure. Accounts payable represent liabilities for goods and services
provided to the Department prior to the end of the financial year that are unpaid, and arise when the Department becomes obliged to make
future payments in respect of the purchase of those goods and services; and
•
statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (refer to Note 1(j)). Statutory
payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the
category of financial liabilities at amortised cost, because they do not arise from a contract.
Borrowings
Borrowings are initially measured at fair value, being the cost of the borrowings, net of transaction costs (refer to Note 1(n) Leases).
Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the
redemption value being recognised in net result over the period of the borrowing using the effective interest method.
Provisions
Provisions are recognised when the Department has a present obligation, the future sacrifice of economic benefits is probable, and the amount
of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking
into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the
present obligation, its carrying amount is the present value of those cashflows, using a discount rate that reflects the time value of money and
risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.
Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered
to the reporting date.
(i) Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave which are expected to be
settled within 12 months of the reporting period, are recognised in the provision for employee benefits. These liabilities are classified as
current liabilities and measured at their nominal values.
Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefits as non-current
liabilities, measured at the present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate
expected to apply at the time of settlement.
(ii) Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability even where the Department does not expect to
settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:
– nominal value – component that the Department expects to settle within 12 months; and
– present value – component that the Department does not expect to settle within 12 months.
Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the
employee has completed the requisite years of service. This non-current LSL liability is measured at present value.
Any gain or loss following revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that
a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow (refer to Note 1(h) Other
economic flows included in the net result).
(iii)Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary
redundancy in exchange for these benefits. The Department recognises termination benefits when it is demonstrably committed to either
terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination
benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date
are discounted to present value.
Employee benefits on-costs
Employee benefits on-costs such as payroll tax, workers compensation and superannuation are recognised separately from provision for employee benefits.
Financial guarantees
Payments that are contingent under financial guarantee contracts are recognised as a liability at the time the guarantee is issued. The liability is
initially measured at fair value, and if there is a material increase in the likelihood that the guarantee may have to be exercised, then it is
measured at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the
amount initially recognised less cumulative amortisation, where appropriate.
In the determination of fair value, consideration is given to factors including the overall capital management/prudential supervision framework in
operation, the protection provided by the State Government by way of funding should the probability of default increase, probability of default by
the guaranteed party and the likely loss to the Department in the event of default.
The value of loans and other amounts guaranteed by the Treasurer is disclosed in Note 22 Contingent liabilities.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised as an ‘other economic flow’ in the estimated consolidated comprehensive operating statement.
(n)
Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment.
Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect
the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever
the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as
operating leases.
Finance leases
Department as lessee
At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the
lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is
depreciated over the shorter of the estimated useful life of the asset or the term of the lease.
Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense which is
calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred.
Operating leases
Department as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a
straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived
from the use of the leased asset. The leased asset is not recognised in the balance sheet.
All incentives for the agreement of a new or renewed operating lease shall be recognised as an integral part of the net consideration agreed for
the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefits
of incentives are recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
(o)
Equity
Contributions by owners
Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in
the nature of contributions or distributions have also been designated as contributions by owners.
Transfers of net assets arising from administrative restructurings are treated as distributions to or contribution to owners. Transfers of net liabilities arising from administrative restructuring are treated as distributions to owners.
(p)
Commitments
Commitments are disclosed at their nominal value and inclusive of the goods and services tax (GST) payable. In addition, where it is considered
appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These
future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.
(q)
Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are
measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.
(r)
Service concession arrangements
The State enters into arrangements to design and construct or upgrade an asset used to provide public services. These arrangements are
typically complex and usually include the provision of operational and maintenance services for a specified period of time. These arrangements
are often referred to as either public private partnerships (PPPs) or service concession arrangements (SCAs).
These SCAs usually take one of two main forms. In the more common form, the State pays the operator over the period of the arrangement,
subject to specified performance criteria being met. At the date of commitment to the principal provisions of the arrangement, these estimated
periodic payments are allocated between a component related to the design and construction or upgrading of the asset and components related
to the ongoing operation and maintenance of the asset. The former component is accounted for as a lease payment (see Note 1 (n) Leases). The
remaining components are accounted for as commitments for operating costs which are expensed in the comprehensive operating statement as
they are incurred.
The other, less common form of SCA, is one in which the State grants to an operator, for a specified period of time, the right to collect fees from
users of the SCA asset, in return for which the operator constructs the asset and has the obligation to supply agreed upon services, including
maintenance of the asset for the period of the concession. These private sector entities typically lease land, and sometimes State works, from the
State and construct infrastructure. At the end of the concession period, the land and State works, together with the constructed facilities, will be
returned to the State.
There is currently no authoritative accounting guidance applicable to grantors (the State) on the recognition and measurement of the right of the
State to receive assets from such concession arrangements. Due to the lack of such guidance, there has been no change to existing policy and
those assets are not currently recognised.
The State, represented by the Department of Primary Industries has entered into two PPP arrangements to design and construct or upgrade
assets. Details are disclosed in Note 10.
(s)
Accounting for the Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation
authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable
to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
Commitments and contingent assets and liabilities are also stated inclusive of GST.
(t)
Comparative information
There have been no changes to the previous year’s figures within the Department’s financial statements.
(u)
Events after reporting date
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement
between the Department and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the
reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and
before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the
reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are
authorised for issue where the events relate conditions which arose after the end of the reporting period and which may have a material impact
on the results of subsequent years.
Refer to Note 33 Subsequent Events
(v)
AASs issued that are not yet effective
Certain new AASs have been published that are not mandatory for the 30 June 2013 reporting period. DTF assesses the impact of all these new
standards and advises the Department of their applicability and early adoption where applicable.
Due to a Government issued administrative order, the Department ceased to exist from 1 July 2013 and therefore standards and interpretations
issued but not mandatory for the financial year ending 30 June 2013 are not applicable to the Department. The Department has not early
adopted any standards.
Note 2. Departmental (Controlled) Outputs
A description of Departmental outputs performed during the year ended 30 June 2013, and the objectives of these outputs, are summarised
below:
Output: Primary Industries Policy
Develop policy frameworks and legislative reforms that aim to improve investment in, and protection of, energy, resources and primary industries.
It does this through the establishment of efficient and equitable resource definition, allocation and management processes leading to improved
market access, industry performance, efficiency of resource use and reduced adverse impacts on the environment.
Output: Regulation and Compliance
Protect the sustainability of Victoria’s primary and energy industries by regulating natural resource use in the public interest. Encourage best
practice behaviours through a pro-active approach to self-regulation, while undertaking education, inspection and enforcement services to
ensure industry and community compliance with legislation and regulations. Protect the quality and safety of Victoria’s primary products by
building and maintaining Victoria’s capability to monitor, detect and respond to disease, pest and residue incidents outbreaks and other biosecurity threats.
Output: Strategic and Applied Scientific Research
Use science and innovation to increase the productivity, profitability, sustainability, international competitiveness and export value of primary and
energy industries by investing in research and development, new technologies and practices, knowledge and science based tools, and resource
information.
Output: Practice Change
Facilitate the adoption of new ideas and practices, and assist industries and communities to understand, manage and adapt to change driven by
economic, social and environmental pressures. Promote trade by enhancing access to markets and securing market opportunities for Victoria.
Objectives
All of the Department’s outputs meet the Department’s objectives listed in Note 1(c).
Note 2. Departmental (Controlled) Outputs continued
Schedule A – Controlled income and expenses for the year ended 30 June 2013
Primary Industrie
s Policy
Regulation
and
Compliance
Strategic and
Applied
Scientific
Research
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
Output
appropriations
67,702
66,466
98,583
103,66
9
207,50
0
194,10
2
78,071
72,298
451,85
6
436,53
5
Special
appropriations
-
914
-
1,425
-
2,668
-
993
-
6,000
70
105
535
772
2,551
2,776
-
-
3,156
3,653
21,021
7,841
6,939
9,040
15,857
15,907
2,068
6,618
45,885
39,406
665
92
3,386
742
5,123
-
2,746
2,722
11,920
3,556
Practice
Chang
e
Total
Income
from
transactions
Interest
Sale of
goods
and services
Grants
119
910
111
880
156
(2,740)
(378)
972
8
22
89,577
76,328
109,55
4
116,528
231,18
7
212,71
3
82,507
83,603
512,82
5
489,17
2
Employee benefits
29,051
26,583
56,584
56,028
76,593
77,687
29,566
35,579
191,79
4
195,87
7
Depreciation and
amortisation
2,374
2,623
2,659
3,256
21,322
16,494
4,159
5,101
30,514
27,474
125
171
125
171
22,339
5,974
161
220
22,750
6,536
12,307
13,442
6,219
9,408
35,967
28,435
26,050
9,497
80,543
60,782
1,656
1,366
1,408
1,118
20,626
20,335
10,724
10,349
34,414
33,168
Other
operating
expenses
40,956
32,445
44,289
46,535
74,793
72,474
16,600
20,047
176,63
8
171,50
1
Total
expenses
from
transactions
86,469
76,630
111,284
116,516
251,64
0
221,39
9
87,260
80,793
536,65
3
495,33
8
Net result from
transactions (net
operating balance)
3,108
(302)
(1,730)
12
(20,453
)
(8,686)
(4,753)
2,810
(23,828
)
(6,166)
Net
gain/(los
s) on
non-finan
cial assets
209
(509)
217
(458)
550
(584)
3,472
5,760
4,448
4,209
Net
gain/(los
s) on
financial
instruments
(2)
2
(14)
1
(9)
47
(3)
4
(28)
54
Other
gains/(lo
25
(210)
25
(210)
66
(543)
33
(270)
149
(1,233)
Other
income
Total
income
from
transactions
Expenses
from
transactions
Interest
expense
Grants
and other
transfers
Capital
asset
charge
Other
economic
flows
included
in net
result
sses)
from
other
economic flows
Total
other
economic
flows
included
in net
result
232
(717)
228
(667)
607
(1,080)
3,502
5,494
4,569
3,030
3,340
(1,019)
(1,502)
(655)
(19,846
)
(9,766)
(1,251)
8,304
(19,259
)
(3,136)
Changes
in physical asset
revaluation surplus
-
-
-
-
-
-
-
-
-
-
Changes
to financial assets
available
for sale
revaluation surplus
3
3
6
6
8
8
2
2
19
19
Total
other
economic
flows –
other
comprehensive
income
3
3
6
6
8
8
2
2
19
19
Comprehensive
result
3,343
(1,016)
(1,496)
(649)
(19,838
)
(9,758)
(1,249)
8,306
(19,240
)
(3,117)
2013
2012
Net result for
the period
Other
economic
flows –
other
comprehensive
income
Schedule B – Controlled assets and liabilities as at 30 June 2013
Primary
Industries
Policy
2013
Regulation
and
Compliance
2012
Strategic
and
Applied
Scientific
Research
2013
Practice
Chang
e
2012
Total
2013
2012
2013
2012
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Financial
assets
31,768
27,508
42,537
48,330
110,72
6
114,85
4
26,013
30,329
211,04
4
221,02
1
Non-Fin
ancial
assets
60,709
62,275
60,088
61,594
543,34
9
330,92
8
166,87
7
165,37
2
831,02
3
620,16
9
Total
assets
92,477
89,783
102,62
5
109,92
4
654,07
5
445,78
2
192,89
0
195,70
1
1,042,0
67
841,19
0
Liabilities
21,337
20,662
16,887
24,073
375,35
7
176,08
3
20,569
24,271
434,15
0
245,08
9
Total
liabilities
21,337
20,662
16,887
24,073
375,35
7
176,08
3
20,569
24,271
434,15
0
245,08
9
Net assets
71,140
69,121
85,738
85,851
278,71
8
269,69
9
172,32
1
171,43
0
607,91
7
596,10
1
Assets
Note 3. Administered (non-controlled) items
In addition to the specific Departmental operations which are included in the financial statements (comprehensive operating statement, balance
sheet, statement of changes on equity and cash flow statement), the Department administers or manages other activities and resources on
behalf of the State such as royalties, regulatory fees and fines and contributions towards research activities. The transactions relating to these
activities are reported as administered items in this note.
Primary
Industries
Policy
2013
$’000
Regulation
and
Compliance
2012
$’000
Strategic
and
Applied
Scientific
Research
2013
$’000
-
-
-
-
-
-
-
-
-
-
Contributions
towards
research
activities
2,251
379
8,237
9,594
41,950
48,127
7,879
10,439
60,317
68,539
Provision of
services
-
-
7
6
-
-
-
-
7
6
Regulatory
fees,
fines,
leases
and
licences
2,849
3,517
8,172
5,518
-
2,955
20,962
1,478
31,983
13,468
Royalties
-
-
45,466
64,805
-
-
-
83
45,466
64,888
Interest
-
-
32
47
1
1
-
1
33
49
Practice
Chang
e
2012
$’000
Total
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
Administered
income
from
transactions
Commonwealth
grants
Other
income
14
31
173
66
2,743
2,297
19
1,042
2,949
3,436
5,114
3,927
62,087
80,036
44,694
53,380
28,860
13,043
140,75
5
150,38
6
Payments
into the
Consolidated
Fund
4,313
3,936
76,766
57,525
54,267
52,604
38,788
12,789
174,13
4
126,58
4
Other
expenses
37
44
36
44
95
113
48
57
216
258
Total
administered
expenses
from
transactions
4,350
3,980
76,802
57,569
54,362
52,717
38,836
12,846
174,35
0
127,11
2
Total
administered
net result from
transactions
(net
operating balance)
764
(53)
(14,71
5)
22,467
(9,668)
663
(9,976)
197
(33,59
5)
23,274
Net
gain/(los
s) on
non-fina
ncial
assets
23
369
23
370
59
956
29
478
134
2,173
Net
gain/(los
s) on
financial
-
(7)
22
27
(45)
(78)
44
2
21
(56)
Total
administered
income
from
transactions
Administered
expenses
from
transactions
Administered
other
economic
flows
included in
the administered
net result
instruments
Total
administered
other
economic
flows
23
362
45
397
14
878
73
480
155
2,117
Administered
net result
787
309
(14,67
0)
22,864
(9,654)
1,541
(9,903)
677
(33,44
0)
25,391
Note 3. Administered (non-controlled) items continued
Primary
Industries
Policy
2013
$’000
Regulation
and
Compliance
2012
$’000
Strategic
and
Applied
Scientific
Research
2013
$’000
60
47
3,278
3,226
154
122
80
63
3,572
3,458
425
1,516
50,559
67,409
1,060
7,487
1,437
3,755
53,481
80,167
Investments
7,317
7,681
7,318
7,681
18,939
19,881
9,469
9,940
43,043
45,183
Total
administered
financial
assets
7,802
9,244
61,155
78,316
20,153
27,490
10,986
13,758
100,09
6
128,80
8
Creditors and
accruals
36
33
24
42
172
486
111
387
343
948
Deposits
repayable
3
4
157
152
11
11
8
8
179
175
Unearned
income
-
1
1,964
2,140
11,304
2,917
1,239
1,909
14,507
6,967
Total
administered
liabilities
39
38
2,145
2,334
11,487
3,414
1,358
2,304
15,029
8,090
7,763
9,206
59,010
75,982
8,666
24,076
9,628
11,454
85,067
120,71
Practice
Chang
e
2012
$’000
Total
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
Administered
financial
assets
Cash
Receivables
Administered
liabilities
Total
administered
net assets
8
Note 4. Restructure of Administrative Arrangements
On 9 April 2013, the Government announced a restructure of its activities and on 25 June 2013 issued Administrative Order No.217 under the
Administrative Arrangements Act 1983. As a consequence of the restructure, the Department ceased to exist from 1 July 2013 and all of its
outputs were transferred to both the Department of Environment and Primary Industries (DEPI) and the Department of State Development,
Business and Innovation (DSDBI). The changes, effective from 1 July 2013, are summarised below.
Outputs transferred:
2012-13 Outputs
2013-14 Output DEPI
2013-14 Output DSDBI
Primary Industries Policy
Development of Primary Industries
Energy and Resources
Regulation and Compliance
Strategic and Applied Scientific Research
Practice Change
As part of the restructure, the Premier made two declarations under section 30 of the Public Administration Act 2004, which
transferred staff to other departments on 3 June 2013 and 1 July 2013 respectively. Nevertheless, Administrative Order No.217 requires the
financial reporting for the functions and outputs transferred between departments to take effect from 1 July 2013.
As part of the machinery of government restructure, the Department transferred its Earth and Energy Resources functions to the Department of
State Development, Business and Innovation.
In addition, the Department transferred its Agriculture and Food Security output performance measures, Primary Industries Policy, Regulation and
Compliance, Strategic and Applied Scientific Research and Practice Change outputs to the Department of Environment and Primary Industries.
These outputs were consolidated into the Development of Primary Industries output in the 2013-14 Victorian State Budget.
As responsibility for the delivery of the 2012-13 outputs specified in the 2012-13 Budget remained with the Department until 1 July 2013, all
associated income, expenses, assets and liabilities are reported in the financial statements of the Department in 2012-13. All assets and liabilities of the Department will be transferred to other departments on 1 July 2013.
Expenses relating to transferred staff and other directly associated business expenses incurred between 3 June 2013 to 30 June 2013, which
amount to $12,533,416(i), are reflected in the Department’s financial statements as the transferred staff continued to contribute to the delivery of
the Department’s outputs during 2012-13.
(i)$12,533,416
= Employee expenses plus a standard rate of $450 per FTE for directly associated business expenses for staff transferred into
DSDBI ($1,528,537) and DEPI ($11,004,879).
Note 5. Income from transactions
2013
$’000
2012
$’000
(a) Interest
Interest on bank deposits
604
877
Royal Melbourne Showgrounds joint
venture interest income
2,552
2,776
Total interest income
3,156
3,653
43,905
37,177
1,505
1,669
475
560
45,885
39,406
(b) Sale of goods and services
Income from the rendering of services
Income from sale of goods
Income from sale of biological assets
Total income from sale of goods and
services
(c) Grants and other income transfers
Energy
8,813
499
Other
3,107
3,057
Total from grants and other income
transfers
11,920
3,556
Note 6. Expenses from transactions
2013
$’000
2012
$’000
132,438
145,800
Superannuation
12,969
14,296
Annual and long service leave expense
17,879
20,145
Other employee costs (payroll tax,
fringe benefits tax, etc.)
28,508
15,636
191,794
195,877
Depreciation of property, plant and
equipment
22,818
26,160
Biosciences Research centre
joint venture depreciation expense
6,284
-
Royal Melbourne Showgrounds
joint venture depreciation expense
1,314
1,314
Amortisation of non-current assets
98
-
Total depreciation and amortisation
30,514
27,474
- Interest and finance charges
734
1,004
Biosciences Research centre
joint venture interest expense
16,925
-
5,091
5,532
22,750
6,536
Energy projects
24,707
22,436
Other
55,836
38,346
Total grants and other transfers
80,543
60,782
85,222
77,353
5,694
6,060
General expenses, stores and materials
23,782
21,843
Laboratory, farm and livestock expenses
13,699
16,807
Office and accommodation
47,703
48,873
538
565
176,638
171,501
(a) Employee expenses
Salary and wages
Total employee expenses
(b) Depreciation and amortisation
(c) Interest expense
Interest from financial liabilities not at
fair value through profit & loss
Royal Melbourne Showgrounds
joint venture interest expense
Total interest expense
(d) Grants and other transfers
(other than contributions by owners)
(e) Other operating expenses
Contract and professional services
Equipment maintenance and hire
Cost of biological assets
sold-livestock
Total other operating expenses
Note 7. Other economic flows included in net result
2013
$’000
2012
$’000
3,198
7,260
17
(45)
Net gain/(loss) on disposal of property, plant and equipment
1,233
(3,006)
Total net gain/(loss) on
non-financial assets
4,448
4,209
(22)
62
Bad debts written off, not by mutual
agreement
(6)
(8)
Total net gain/(loss) on financial
instruments
(28)
54
Net gain/(loss) arising from revaluation of long service leave liability(ii)
149
(1,233)
Total other gains/(losses) from
other economic flows
149
(1,233)
2013
$’000
2012
$’000
9,282
6,406
(92)
(69)
9,190
6,337
32
-
5,800
5,668
(a) Net gain/(loss) on non-financial
assets
Net gain/(loss) arising from changes
in fair value less estimated costs to
sell of biological assets
Gain/(loss) from derecognition of
assets
(b) Net gain/(loss) on financial
instruments
Impairment of:
Loans and receivables(i)
(c) Other gains/(losses) from other
economic flows
(i)
(Increase)/ decrease in provision for doubtful debts.
(ii)
Revaluation gain/(loss) due to changes in bond rates.
Note 8. Receivables
Current receivables
Contractual
Sale of goods and services
(i)
Provision for doubtful contractual
receivables (i) (see also note 8(a)
below)
Receivables – Biosciences Research
Centre joint venture
Receivables – Royal Melbourne
Showgrounds joint venture
Other
9,161
288
24,183
12,293
74,143
81,442
5,024
4,197
80,167
85,639
104,350
97,932
Statutory
Amounts owing from Victorian Government (ii)
GST input tax credit recoverable
Total current receivables
Non-current receivables
Contractual
Receivables – Royal Melbourne
Showgrounds joint venture
27,585
30,923
3,204
5,204
Statutory
Amounts owing from Victorian Government (ii)
Total non-current receivables
Total receivables
30,789
36,127
135,139
134,059
(i)
The average credit period on sale of goods and services is 30 days. A provision has been made for estimated irrecoverable amounts from the sale of goods
and services, determined by reference to past default experience and adjusted to reflect current conditions.
(ii)
The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the
Consolidated Fund as the commitments fall due.
(a)
Movement in the provision for doubtful contractual receivables
2013
$’000
2012
$’000
Balance at beginning of financial
year
(69)
(131)
Decrease in provision recognised in
the net result
(23)
62
Balance at end of financial year
(92)
(69)
(b)
Ageing analysis of contractual receivables
Refer to Table 23.4 in Note 23 for the ageing analysis of contractual receivables.
(c)
Nature and extent of risk arising from contractual receivables
Refer to Note 23(b) for the nature and extent of credit risk arising from contractual receivables.
Note 9. Investments and other financial assets
2013
$’000
2012
$’000
- Funds invested with Treasury Corporation of Victoria
15,721
15,721
Total current investments and
other financial assets
15,721
15,721
- Australian listed shares in other
entities(i)
132
113
Total non-current investments and
other financial assets
132
113
15,853
15,834
Current investments and other
financial assets
Term deposits:
Non-current investments and
other financial assets
Equities:
Total investments and other financial assets
(i)
(a)
The Department received shares in XRF Scientific Limited as a result of its participation in the Clean Power from Lignite Cooperative Research Centre.
Ageing analysis of investments and other financial assets
Refer to Table 23.4 in Note 23 for the ageing analysis of investments and other financial assets.
(b)
Nature and extent of risk arising from investments and other financial assets
Refer to Note 23(b) for the nature and extent of risk arising from investments and other financial assets.
Note 10. Joint Ventures
Jointly controlled assets
(a)
Royal Melbourne Showgrounds joint venture
In October 2003, the State, represented by the Department of Primary Industries entered into a joint venture agreement with the Royal Agricultural Society of Victoria Limited (RASV) to redevelop the Royal Melbourne Showgrounds. The agreement came into effect on 30 June 2005.
Two joint venture structures have been established, an unincorporated joint venture to carry out and deliver the joint venture project, and an
incorporated joint venture entity, Showgrounds Nominees Pty Ltd, to hold the assets of the joint venture and to enter into agreements on behalf
of the State and RASV.
The State’s contribution to the joint venture is $100.7 million (expressed in 2004 dollars) while RASV has contributed its freehold title to the
showgrounds land valued at $51 million in June 2005. In June 2006, Showgrounds Nominees Pty Ltd entered into a Development and Operations Agreement (on behalf of the State and RASV) with the concessionaire, PPP Solutions (Showgrounds) Nominee Pty Ltd, to design, construct, finance and maintain the new facilities at the showgrounds.
The project operation term is 25 years from the date of commercial acceptance of completed works which occurred in August 2006. The joint
venture project is being delivered under the Partnerships Victoria Policy framework.
Commitments for expenditure
Commitments have been recognised in relation to concessionaire services and development works in Note 21.
Contingent liabilities
Unquantifiable
Under the State Support Deed – Core Land, the State has undertaken to ensure the performance of the payment obligations in favour of the
Concessionaire and the performance of the joint venture financial obligations in favour of the security trustee.
Under the State Commitment to RASV, the State has agreed to support certain obligations of RASV which may arise out of the Joint Venture
Agreement. In accordance with the terms set out in the State Commitment to RASV, the State will pay (in the form of a loan), the amount requested by RASV. If any outstanding loan amount remains unpaid at the date which is 25 years after the commencement of the operation term
under the Development and Operation Agreement, RASV will be obliged to satisfy and discharge each such outstanding loan amount. This may
take the form of a transfer to the State, of the whole of the RASV participating interest in the joint venture.
The State has also entered into an agreement through the State Support Deed – Non-Core Land with Showgrounds Retail Developments Pty Ltd
and the RASV whereby the State agrees to support certain payment obligations of the Royal Agricultural Society of Victorian Limited that may
arise under the Non-Core Development Agreement.
Note 10. Joint Ventures continued
Name of Entity
Principal Activity
Unincorporated joint venture
To carry out the redevelopment of the Royal
Melbourne Showgrounds
Interest
2013
%
2012
%
50
50
2013
$’000
2012
$’000
255
503
5,669
5,668
Accrued Income
363
212
Sundry Debtor
131
-
6,418
6,383
50,000
50,000
The Department’s interest
in assets, liabilities, income
and expenses employed in
the above joint venture is
detailed below.
The amounts are included
in the Department’s financial statements under their
respective categories.
Current assets
Cash and deposits
Receivables
Total current assets
Non-current assets
Land
Buildings
52,559
52,559
Accumulated depreciation
– buildings
(9,001)
(7,687)
Receivables
27,585
30,923
Total non-current assets
121,143
125,795
Total assets
127,561
132,178
-
22
1,670
1,596
996
903
55
55
239
239
2,960
2,815
Current liabilities
Payables
Accrued expenses
Borrowings
Prepaid lease income
Unearned Income
Total current liabilities
Non-current liabilities
Prepaid lease income
2,477
2,532
Borrowings
46,829
47,825
Total non-current liabilities
49,306
50,357
Total liabilities
52,266
53,172
2,551
2,776
Income from the rendering
of services
309
381
Grants
557
251
Other income
487
114
Total income
3,904
3,522
Concessionaire’s fee
5,501
5,552
Depreciation
1,314
1,314
802
520
7,617
7,386
Income
Interest
Expenses
Other operating expenses
Total expenses
Note 10. Joint Ventures continued
(b)
Biosciences Research Centre joint venture
In April 2008, the State, represented by the Department of Primary Industries entered into a joint venture agreement with La Trobe University (La
Trobe) to establish a world class research facility at the University’s campus in Bundoora. The facility is known as AgriBio, Centre for AgriBioscience. A similar structure to the Showgrounds Joint Venture has been adopted comprising an unincorporated joint venture to carry out and
deliver the joint venture project, and an incorporated joint venture entity, Biosciences Research Centre Pty Ltd to hold the assets of the joint
venture and to enter into agreements on behalf of the State and La Trobe.
The State’s contribution to the joint venture is $227.3 million (expressed in May 2009 dollars), while La Trobe’s contribution is $60.4 million
(expressed in May 2009 dollars).
On 30 April 2009, Biosciences Research Centre Pty Ltd entered into a Project Agreement (on behalf of the State and La Trobe) with Plenary
Research Pty Ltd (the Concessionaire) to design, construct, finance and maintain the facility over the project’s operating term. The project’s
operating term is 25 years from the date of commercial acceptance which occurred 18 July 2012. The joint venture project is being delivered
under the Partnerships Victoria Policy framework.
Commitments for expenditure
Commitments have been recognised in relation to concessionaire services in Note 21.
Contingent liabilities
Unquantifiable
The service fee payment obligations of Biosciences Research Centre Pty Ltd (on behalf of the joint venture participants) are supported by the
State of Victoria via a State Support Deed. Under this Deed, the State ensures that the joint venture participants have (severally) the financial
capacity to meet their payment obligations to the company, thereby enabling the company to meet its obligations to pay the service fee to the
Concessionaire pursuant to the Project Agreement. The State underwrites the risk of any default by the Biosciences Research Centre Pty Ltd.
Note 10. Joint Ventures continued
Name of Entity
Principal Activity
Unincorporated joint venture
To establish a world class
research facility.
Interest
2013
%
2012
%
75
75
2013
$’000
2012
$’000
32
-
3
-
Accrued income
5,046
-
Total non-current assets
5,081
-
159,374
-
(6,381)
-
The Department’s interest
in assets, liabilities, income
and expenses employed in
the above joint venture is
detailed below.
The amounts are included
in the Department’s financial statements under their
respective categories.
Financial assets
Receivables
GST receivable
Non-financial assets
Buildings and structures
Accumulated depreciation
– Buildings and structures
Intangible assets(i)
32,826
-
Total non-financial assets
185,819
-
Total assets
190,900
-
192,418
-
5,081
-
197,499
-
Other income
20,247
210
Total income
20,247
210
Employee expenses
186
147
Contract and professional
services
108
2
Other operating expenses
4,191
61
15,980
-
6,382
-
26,847
210
Total liabilities
Finance liability
Accruals
Total Liabilities
Income
Expenses
Interest expense
Depreciation
Total Expenses
(i)
Intangible assets recognised for 75% of Department’s share in joint venture’s right to use project land and fair value of renewal option to extend lease on the
project facility.
Note 11. Non-financial physical assets classified as held for sale
2013
$’000
2012
$’000
Plant and equipment under finance
lease held for sale
123
619
Total Non-financial physical assets classified as held for sale
123
619
2013
$’000
2012
$’000
325
332
67
71
392
403
Non-financial physical assets
classified as held for sale
Note 12. Inventories
Supplies and consumables
At cost
Publications held for sale
At cost
Total inventories
Note 13. Property, plant and equipment
Table 13.1 Classification by ‘Public Safety and Environment’ Purpose Group
2013
$’000
2012
$’000
321,149
318,523
At fair value
301,178
141,447
Less: accumulated depreciation
(21,526)
(8,667)
279,652
132,780
Land at fair value
Buildings and structures
At cost(i)
Less: accumulated depreciation
Buildings in the course of construction at cost
Total buildings and structures
68,370
68,191
(14,463)
(12,163)
53,907
56,028
39,879
11,253
373,438
200,061
Plant and equipment
At fair value
113,098
113,592
Less: accumulated depreciation
(83,775)
(81,940)
29,323
31,652
24,317
27,949
(11,457)
(11,470)
12,860
16,479
1,680
2,463
43,863
50,594
54
41
(12)
(12)
Plant and equipment under finance
lease at fair value
Less: accumulated depreciation
Plant and equipment in the course of
construction at cost
Total plant and equipment
Cultural assets
At cost
Less: accumulated depreciation
Total cultural assets
Total property, plant and equipment
(i)
42
29
738,492
569,207
Includes leasehold improvements.
Note 13. Property, plant and equipment continued
Table 13.2 Aggregate depreciation recognised as an expense during the year
2013
$’000
2012
$’000
Buildings and structures
15,317
11,143
Plant and equipment
8,713
9,122
Leased plant and equipment
6,386
7,208
1
1
30,417
27,474
Cultural assets
Total
The useful lives of assets as stated in Note 1(g) are used in the calculation of depreciation.
Note 13. Property, plant and equipment continued
Table 13.3 Classification by ‘Public Safety and Environment’ Purpose Group - Movements in carrying
amounts
Con
stru
ctio
n
in
pro
gres
s
Lea
sed
plan
t
and
equi
pme
nt
Cult
ural
assets
Total
201
3
$’00
0
201
2
$’00
0
201
3
$’00
0
201
2
$’00
0
201
3
$’00
0
201
2
$’00
0
201
3
$’00
0
201
2
$’00
0
201
3
$’00
0
201
2
$’00
0
201
3
$’00
0
201
2
$’00
0
319,
594
188,
808
200,
291
31,6
52
36,9
28
13,7
16
7,65
2
16,4
79
18,6
65
29
30
569,
207
583,
160
2,65
0
-
159,
447
631
6,42
6
4,14
8
29,3
41
9,25
1
5,04
2
9,05
6
14
-
202,
920
23,0
86
(24)
(1,0
71)
(508
)
(4,1
35)
(290
)
(298
)
-
-
(2,1
52)
(3,4
14)
-
-
(2,9
74)
(8,9
22)
Revaluation of
PPE
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Acquisition
throu
gh
administrative
restruct
ure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Trans
fer to
-
-
-
-
-
-
-
-
(123
)
(619
)
-
-
(123
)
(619
)
Lan
d
Buil
ding
s
and
stru
ctur
es
Plan
t
and
equi
pme
nt
201
3
$’00
0
201
2
$’00
0
Open
ing
balance
318,
523
Additions
Disposal
s
assets
classified
as
held
for
sale
Trans
fers
between
classes
-
-
1,13
0
3,16
4
248
-
(1,3
78)
(3,1
64)
-
-
-
-
-
-
Trans
fer to
intangible
assets
-
-
-
-
-
-
(121
)
-
-
-
-
-
(121
)
-
Reco
gnition/(d
ereco
gnition)
of
assets
-
-
-
-
-
-
-
(23)
-
-
-
-
-
(23)
Depreciation/
amortisation
expense
-
-
(15,
317)
(11,
143)
(8,7
13)
(9,1
26)
-
-
(6,3
86)
(7,2
08)
(1)
(1)
(30,
417)
(27,
474)
Closi
ng
balance
321,
149
318,
523
333,
560
188,
808
29,3
23
31,6
52
41,5
58
13,7
16
12,8
60
16,4
79
42
29
738,
492
569,
207
Note:
Fair value assessments have been performed for all classes of assets within this purpose group and the decision was made that movements were not material
(less than or equal to 10 per cent) for full revaluation. The next scheduled full revaluation for this purpose group will be conducted in the 2015-16 financial
reporting period.
Note 14. Biological assets
Timber volume (cubic meters)
Breeding livestock – sheep and cattle
(quantity)
2013
number
2012
number
40,000,000
40,000,000
6,666
6,689
In December 2011, a Machinery of Government change transferred the
power to make an Allocation Order (order allocates timber in State forest
to VicForests for the purposes of harvesting and/or selling), in accordance with Part 5 of the Sustainable Forests (Timber) Act 2004 from the Minister for Environment and Climate Change to
the Minister for Agriculture and Food Security. As part of the Machinery of Government change the management of Victoria’s commercial timber
transferred from the Department of Sustainability and Environment to the Department of Primary Industries, effective from 23 December 2011.
The biological assets were transferred at their carrying value through equity in accordance with Financial Reporting Direction 119 Contributions
by Owners.
An Allocation Order is made for an initial period of 15 years. The Allocation to VicForests Order 2004 was made on 29 July 2004 and was
amended on 21 March 2007, 30 April 2010, and 23 September 2010. The Allocation to VicForests (Amendment) Order 2010 and Allocation to
VicForests (Further Amendment) Order 2010 added a further five-year period and made a number of amendments to Period 2 and 3, to ensure
compliance with policies, roles and responsibilities outlined in the 2009 Victoria’s Timber Industry Strategy.
In accordance with Part 5 of the Sustainable Forests (Timber) Act 2004, VicForests must prepare a Timber Release Plan (TRP) in respect of an
area to which an Allocation Order applies. TRPs are for periods not exceeding five years. At 30 June 2013, there were two TRPs; the 2011 TRP
(which expires in June 2016 and replaces the 2006 TRP which expired in June 2011) and the 2009 TRP (which expires in June 2014). Property
in the timber resources to which the approved TRP applies is vested in VicForests. The 2011 TRP represents 42% of the timber resources
covered by the plans. The 2009 TRP represents approximately 58% of the timber resources covered by the plans.
In addition to this, the wood pulp agreement under the Forests (Wood Pulp Agreement) Act 1996 executed by the Department of Sustainability
and Environment transferred to the Department of Primary Industries. The agreement legislates for the supply of wood for pulp from the Department to Australian Paper Pty Ltd until 2030.
The valuations disclosed in these accounts have been prepared in accordance with AASB 141 Agriculture by discounting the net future cash
flows VicForests expect to earn, using a real, pre-tax discount rate of 7.24% (2012: 8.28%) to calculate the Net Present Value.
Note 14. Biological assets continued
Reconciliations
Reconciliations of the carrying amounts of biological assets at the beginning and end of the current and previous financial year are set out below.
2013
$’000
Movements in carrying amounts
of commercial native forests:
Carrying amount at beginning of
period
Increase/(decrease) due to fair value
adjustment
Transfer of timber rights to VicForests
2012
$’000
31,352
-
5,644
6,478
-
-
2,455
-
(2,456)
-
-
24,874
36,995
31,352
1,632
1,349
65
66
Regenerated coupes transferred
from VicForests
Gain/(loss) arising from the expiry of
timber rights from VicForests
Transfer from Department of Sustainability and Environment
Carrying amount at end of period
Movements in carrying amounts
of breeding livestock:
Carrying amount at the beginning
of period
Increases due to purchases
Gain/(loss) arising from changes in
fair value less estimated costs to sell
attributable to physical changes
642
1,040
(603)
(193)
(538)
(565)
(29)
(65)
1,169
1,632
38,164
32,984
2013
$’000
2012
$’000
13,691
10,385
Gain/(loss) arising from changes in
fair value less estimated costs to sell
attributable to price changes
Decreases attributable to sales
Decreases due to demise
Carrying amount at end of period
Total Biological Assets
Note 15. Intangible Assets
Movements in carrying amounts
of intangible assets
Carrying amount at beginning of
period
Additions
38,272
3,306
Transfers from construction in progress
121
Less: accumulated amortisation
(98)
-
51,986
13,691
Carrying amount at end of period
Significant intangible assets
The Department has capitalised software under development for a resource allocation and management system for the earth resources industry,
and is designed to assist in the management of the natural resource base.
It is anticipated the development will be completed in the 2013-14 financial reporting period.
The Department’s share of intangible assets associated with the Biosciences Research Centre joint venture has been recognised. Please refer
to Note 10 Joint Ventures.
Note 16. Payables
2013
$’000
2012
$’000
875
13,698
Department contribution to the Royal
Melbourne Showgrounds unincorporated joint venture
11,655
11,400
Other (accrued expenses and accrued salaries)
36,771
18,717
49,301
43,815
1,053
1,140
50,354
44,955
50,674
57,397
Current payables
Contractual
Supplies and services
Statutory
Other (includes payroll tax payable)
Total current payables
Non-current payables
Contractual
Department contribution to the Royal
Melbourne Showgrounds unincorporated joint venture
Statutory
Lysterfield Lake Park Land Purchase
Total non-current payables
Total payables
(a)
1,260
1,320
51,934
58,717
102,288
103,672
Maturity analysis of contractual payables
Refer to Table 23.5 in Note 23 for the maturity analysis of contractual payables.
(b)
Nature and extent of risk arising from contractual payables
Refer to Note 23 for the nature and extent of risk arising from contractual payables.
Note 17. Borrowings
2013
$’000
2012
$’000
7,826
10,296
Current borrowings
Finance lease liabilities – Motor
vehicles(i)
Finance lease liabilities – Biosciences Research Centre joint venture
947
-
Finance lease liabilities – Royal
Melbourne Showgrounds joint venture
996
903
3,669
2,797
13,438
13,996
5,092
6,856
202,175
-
46,829
47,825
Total non-current borrowings
254,096
54,681
Total borrowings
267,534
68,677
Advances from Government(ii)
Total current borrowings
Non-current borrowings
Finance lease liabilities – Motor
vehicles(i)
Finance lease liabilities – Biosciences Research Centre joint venture
Finance lease liabilities – Royal
Melbourne Showgrounds joint venture
(i)
Lease liability is secured by the assets leased.
(ii)
Advances from Government to cover the net GST payable is non-interest bearing.
(a)
Maturity analysis of borrowings
Refer to Table 23.5 in Note 23 for the maturity analysis of borrowings.
(b)
Nature and extent of risk arising from borrowings
Refer to Note 23 for the nature and extent of risk arising from borrowings.
Note 18. Provisions
2013
$’000
2012
$’000
- Unconditional and expected to be
settled within 12 months(ii)
15,445
16,805
- Unconditional and expected to be
settled after 12 months(iii)
-
-
- Unconditional and expected to be
settled within 12 months(ii)
23,534
27,900
- Unconditional and expected to be
settled after 12 months(iii)
8,624
7,744
47,603
52,449
- Unconditional and expected to be
settled within 12 months(ii)
6,237
7,153
- Unconditional and expected to be
settled after 12 months(iii)
1,373
1,239
7,610
8,392
Current provisions
Employee benefits(i) – annual leave:
Employee benefits(i) – long service
leave:
Provisions related to employee benefit on-costs:
Other employee provisions
1,317
-
Total current provisions
56,530
60,841
2,762
4,486
Non-current provisions
Employee benefits(i) - long service
leave(iii)
Employee benefits on-costs
Total non-current provisions
Total provisions
448
718
3,210
5,204
59,740
66,045
(i)
Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.
(ii)
The amounts disclosed are nominal amounts.
(iii)
The amounts disclosed are discounted to present values.
Note 19. Superannuation
Employees of the Department are entitled to receive superannuation benefits and the Department contributes to both defined benefit and defined contribution plans. The defined benefit plans provides benefits based on years of service and final average salary.
The Department does not recognise any defined benefit liability in respect of the plans because the entity has no legal or constructive obligation to pay
future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and
Finance recognises and discloses the State’s defined benefit liabilities in its disclosure for administered items.
However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Comprehensive Operating Statement of the Department.
The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the Department are as
follows:
Fund
Contribution for
2013
$’000
Contribution for
2012
$’000
Contribution outstanding
for 2013
$’000
Contribution outstanding
for 2012
$’000
3,415
4,064
-
-
57
75
-
-
Defined benefit
plans:(i)
Government Superannuation Scheme –
revised and new
State Employee Retirement Benefit Fund
Defined contribution plans:
Victorian Superannuation Fund – Vic
Super Scheme
8,084
8,556
-
-
59
35
-
-
Other
1,646
1,791
-
-
Total
13,261
14,521
-
-
Emergency Services
Superannuation
Scheme
(i)
The basis for determining the level of contributions is determined by the various actuaries of the defined benefit superannuation plans.
Note 20. Leases
Finance leases
Leasing arrangements
Royal Melbourne Showgrounds
The State, represented by the Department of Primary Industries has entered into a joint venture agreement with the Royal Agricultural Society of Victoria
Limited (RASV) to redevelop the Royal Melbourne Showgrounds. The agreement came into effect on 30 June 2005. Two joint venture structures have
been established, an unincorporated joint venture to carry out and deliver the joint venture project, and an incorporated joint venture entity, Showgrounds
Nominees Pty Ltd to hold the assets of the joint venture and to enter into agreements on behalf of the State and RASV.
In June 2006, Showgrounds Nominees Pty Ltd entered into a Development and Operations Agreement (on behalf of the State and RASV) with the
Concessionaire, PPP Solutions (Showgrounds) Nominee Pty Ltd to design, construct, finance and maintain the new facilities at the Showgrounds. The
project operation term is 25 years from the date of commercial acceptance of completed works which occurred in August 2006. The Showgrounds
buildings will revert to the joint venture on the conclusion of the lease arrangement.
The payments that relate to the redevelopment of the Showgrounds are accounted for as a finance lease as disclosed in the following table. In addition,
the Department also pays operating and maintenance costs (refer to Note 21 (b)).
Biosciences Research Centre
In April 2008, the State, represented by the Department of Primary Industries entered into a joint venture agreement with La Trobe University (La Trobe)
to establish a world class research facility to be known as AgriBio, Centre for AgriBioscience.
On 30 April 2009, Biosciences Research Centre Pty Ltd entered into a Project Agreement (on behalf of the State and La Trobe) with Plenary Research
Pty Ltd (the Concessionaire) to design, construct, finance and maintain a facility over the project’s operating term. The project’s operating term is 25 years
from the date of commercial acceptance which occurred July 18, 2012.
The service fee payments that relate to the project facility are accounted for as a finance lease as disclosed in the following table. In addition, the Department also pays operating and maintenance costs (refer to Note 21 (b)).
Motor Vehicle
The finance lease entered into by the Department relates to motor vehicles leased through the VicFleet lease facility. The motor vehicles have lease
terms of 3 years or 60,000km, whichever occurs sooner. Under the terms of the finance lease, the Department has the option to acquire the leased asset
at an agreed fair value on expiry of the lease. The average interest rate implicit in the finance lease is 6.54% (2012: 6.59%).
Note 20. Leases continued
Minimum future
lease payments
2013
$’000
Present value of
minimum future
lease payments
2012
$’000
2013
$’000
2012
$’000
5,723
5,723
996
903
Longer than 1 year
and not longer than 5
years
22,893
22,893
5,126
4,646
Longer than 5 years
75,258
80,981
41,703
43,179
Not longer than 1
year
18,725
-
947
-
Longer than 1 year
and not longer than 5
years
78,034
-
8,219
-
Longer than 5 years
393,134
-
193,956
-
Not longer than 1
year
8,346
10,983
7,826
10,296
Longer than 1 year
and not longer than 5
years
5,315
7,186
5,092
6,856
-
-
-
-
607,428
127,766
263,865
65,880
(343,563)
(61,886)
-
-
263,865
65,880
263,865
65,880
9,769
11,199
254,096
54,681
263,865
65,880
Commissioned PPP
related finance
lease liability
Royal Melbourne
Showgrounds joint
venture
Not longer than 1
year
Biosciences Research Centre joint
venture
Motor vehicles
Longer than 5 years
Minimum future
lease payments
Less: Future finance
charges
Present value of
minimum lease
payments
Included in the financial statements as:
Current borrowings
(Note 17)
Non-current borrowings (Note 17)
Operating Leases
Leasing arrangements
Operating leases relate to office and office facilities with lease terms of between 3 to 13 years. Some operating lease contracts contain market review
clauses in the event that the Department exercises its option to renew. The Department does not have an option to purchase the leased asset at the
expiry of the lease period.
2013
$’000
2012
$’000
5,886
5,771
25,043
21,156
98
9,386
31,007
36,313
Non-cancellable operating leases
Not longer than 1 year
Longer than 1 year and not longer
than 5 years
Longer than 5 years
Total non-cancellable operating
leases
(a)
Maturity analysis of finance lease liabilities
Refer to Table 23.5 in Note 23 for the maturity analysis of finance lease liabilities.
(b)
Nature and extent of risk arising from finance lease liabilities
Refer to Note 23 for the nature and extent of risk arising from finance lease liabilities.
Note 21. Commitments for expenditure
The following commitments have not been recognised as liabilities in the financial statements:
a)
Commitments other than public private partnerships(i)(ii)
2013
$’000
2012
$’000
Nominal value
Nominal value
Plant, equipment and vehicles
8,040
20,869
Total capital expenditure commitments
8,040
20,869
Software
2,720
4,853
Total intangible asset commitments
2,720
4,853
128
451
Other operating
17,415
14,526
Total other operating commitments
17,543
14,977
Total commitments other than public
private partnerships
28,303
40,699
Capital expenditure commitments
Intangible assets commitments
Other operating commitments
Outsourcing commitments
b)
Public Private Partnership (PPP)
The State, represented by the Department of Primary Industries has entered into two PPP arrangements to design and construct or upgrade assets. For
the Biosciences Research Centre joint venture the nominal values represent the operating and maintenance costs payable over the remaining term of the
joint venture agreement. The Royal Melbourne Showgrounds nominal values represent the operating and maintenance costs payable over the remaining
term of the joint venture agreement. The construction lease payments are recognised on the balance sheet and are not disclosed as a commitment.
Total commitments are inclusive of GST.
Commissioned Public
private partnerships –
total commitments
2013
Net
present
value
$’000
Royal Mel-
2012
Nominal
value
$’000
51,619
Net
present
value
$’000
Nominal
value
$’000
54,063
92,428
bourne Showgrounds joint
venture
86,047
Biosciences
Research Centre joint venture
255,912
Sub-total
307,531
-
-
54,063
92,428
Net
present
value
$’000
Nominal
value
$’000
554,889
640,936
Uncommissioned Public
private partnerships –
total commitments
2013
2012
Minimum
lease payments Discounted value
$’000
Net
present
value
$’000
Nominal
value
$’000
Minimum
lease payments Discounted value
$’000
Royal Melbourne Showgrounds joint
venture
-
-
-
-
-
-
Biosciences
Research Centre joint venture
-
-
-
255,104
290,640
534,322
Sub-total
-
-
-
255,104
290,640
534,322
Total commitments for
public private
partnerships
-
640,936
255,104
344,703
626,750
307,531
(i) The present values of the minimum lease payments for commissioned public private partnerships (PPPs) are recognised on the balance sheet and are not
disclosed as commitments.
(ii) The year on year reduction in the nominal amounts of the other commitments reflects the payments made.
(c) Commitments payable
2013
$’000
2012
$’000
7,320
19,819
720
1,050
-
-
8,040
20,869
2,720
4,853
-
-
Capital expenditure commitments
Not longer than 1 year
Longer than 1 year and not longer
than 5 years
Longer than 5 years
Total capital expenditure commitments
Intangible assets
Not longer than 1 year
Longer than 1 year and not longer
than 5 years
Longer than 5 years
-
-
2,720
4,853
29,387
27,960
Longer than 1 year and not longer
than 5 years
119,963
117,935
Longer than 5 years
491,586
735,959
Total public private partnership
640,936
881,854
Total intangible assets commitments
Public private partnership commitments
Not longer than 1 year
commitments
Other operating commitments
Not longer than 1 year
12,060
7,802
5,441
7,175
Longer than 1 year and not longer
than 5 years
Longer than 5 years
42
-
17,543
14,977
669,239
922,553
60,840
83,868
608,399
838,685
2013
$’000
2012
$’000
92,651
57,738
56
56
92,707
57,795
Total other operating commitments
Total commitments (inclusive of
GST)
Less GST recoverable from the ATO
Total commitments (exclusive of
GST)
Note 22. Contingent liabilities
Quantifiable contingent liabilities
Damages claims
Mining rehabilitation
Total quantifiable contingent liabilities
Unquantifiable contingent liabilities
As part of the wind-up of the National Electricity Code Administrator (NECA) the State of Victoria has undertaken to indemnify the actions of the NECA
Directors for a period of seven years upon completion of their tenure.
In the event that the Australian Energy Market Operator (AEMO) is wound up the State of Victoria could be required to cover debts and/or winding up
costs; which at this stage cannot be determined.
Unquantifiable contingent liabilities relating to jointly controlled assets have been disclosed in Note 10.
Note 23. Financial instruments
(a)
Financial risk management objectives and policies
The Department’s principal financial instruments comprise:
•
cash assets
•
term deposits
•
receivables (excluding statutory receivables)
•
investments in equities
•
payables (excluding statutory payables)
•
finance lease payables.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis
on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument above are
disclosed in Note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage the Department’s financial risks within the government policy parameters.
Investments in joint ventures are disclosed separately in Note 10.
The carrying amounts of the Department’s contractual financial assets and financial liabilities by category are in Table 23.1.
Table 23.1
Categorisation of financial instruments
2013
$’000
2012
$’000
60,052
71,128
Contractual financial assets
Cash and deposits
Loans and receivables
34,163
22,413
132
113
94,348
93,654
Payables
37,646
32,415
Borrowings
12,918
17,152
Total contractual financial liabilities(ii)
50,564
49,567
Available-for-sale
Total contractual financial assets
(i)
Contractual financial liabilities
(i)
The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian government and GST input tax credit
recoverable).
(ii)
The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable).
Table 23.2
Net holding gain/(loss) on financial instruments by category
2013
$’000
2012
$’000
Contractual financial assets
Cash and deposits
97
143
508
734
19
19
624
896
Borrowings
(734)
(1,004)
Total contractual financial liabilities
(734)
(1,004)
Loans and receivables
Available-for-sale
Total contractual financial assets
Contractual financial liabilities
The net holding gains or losses are determined as follows:
•
for cash and cash deposits, loans or receivables, the net gain or loss is calculated by taking the movement in the fair value of the asset and
interest income
•
for financial liabilities measured at amortised cost, the net gain or loss is calculated using the interest expense.
(b)
Credit risk
Credit risk arises from the contractual financial assets of the Department, which comprise cash and cash deposits, non-statutory receivables,
and available-for-sale contractual financial assets. The Department’s exposure to credit risk arises from the potential default of a counter party on
their contractual obligations resulting in financial loss to the Department. Credit risk is measured at fair value. Credit risk associated with the
Department’s contractual financial assets is minimal because the main debtor is the Victorian Government.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of
any allowances for losses, represents the Department’s maximum exposure to credit risk without taking account of the value of collateral obtained.
Table 23.3 Credit quality of contractual financial assets that are neither past due nor impaired
Financial institutions
Government
agencies
Other
Total
2013
$’000s
$’000s
$’000s
$’000s
Cash and cash
equivalents
(2,020)
62,072
-
60,052
Receivables
-
14,706
271
14,977
Investments and
other financial assets
-
15,721
132
15,853
(2,020)
92,499
403
90,882
(1,473)
72,601
-
71,128
Total contractual
financial assets
2012
Cash and cash
equivalents
Receivables
-
4,390
626
5,016
Investments and
-
15,721
113
15,834
other financial assets
Total contractual
financial assets
(1,473)
92,712
739
91,978
Note: The carrying amounts disclosed exclude statutory amounts (e.g. amounts owing from Victorian government).
Table 23.4 Ageing analysis of contractual financial assets
Carrying
amount
$’000s
Not past due
and not impaired
$’000s
Past due but
not impaired
Less than 1
Month
$’000s
9,282
5,816
9,161
Funds
invested in
Treasury Corporation of Victoria
Shares in
other entities
1-3 months
$’000s
3 months
–
1 year
$’000s
1-5 years
$’000s
2,836
388
195
47
9,161
-
-
-
-
15,721
15,721
-
-
-
-
132
132
-
-
-
-
34,296
30,830
2,836
388
195
47
6,406
4,728
1,228
269
155
26
288
288
-
-
-
-
Funds
invested in
Treasury Corporation of Victoria
15,721
15,721
-
-
-
-
Shares in
other entities
113
113
-
-
-
-
22,528
20,850
1,228
269
155
26
2013
Receivables:
Sale of
goods and
services
Other
Investments
and other
financial assets:
2012
Receivables:
Sale of
goods and
services
Other
Note: The carrying amounts disclosed exclude statutory amounts (e.g. amounts owing from Victorian government).
Contractual financial assets that are either past due or impaired
Currently the Department does not hold any collateral as security nor credit enhancements relating to any of its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated
at the carrying amounts as indicated.
(c)
Liquidity risk
Liquidity risk is the risk that the Department would be unable to meet its financial obligations as and when they fall due. The Department operates
under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, makes payment within 30
days from the date of resolution.
The Department’s liquidity is managed on a Whole of Victorian Government basis by the Department of Treasury (DTF) and Finance. The
Department uses the Annual Budget and regular forecasts of future cash outflows to assist DTF in liquidity management; ensuring that there is
sufficient cash to meet all obligations. DTF are advised of cash requirements for large unexpected or urgent payments as soon as they are known
to the Department.
In addition to this, the Department manages liquidity risk in relation to motor vehicle finance lease liabilities by reviewing budget capacity to meet
future borrowing obligations of new vehicle acquisitions.
The Department’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed on the face of the Balance Sheet.
The Department’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.
The following table discloses the contractual maturity analysis for the Department’s contractual financial liabilities:
Table 23.5 Maturity analysis of contractual financial liabilities
Carrying
amount
$’000s
Nominal
amount
$’000s
Payment
due date
Less than 1
month
$’000s
1-3 months
$’000s
3 months –
1 year
$’000s
1-5 years
$’000s
5+
years
$’000s
2013
Payables:
Payables
875
875
875
-
-
-
-
36,771
36,771
36,771
-
-
-
-
12,918
13,660
2,661
916
4,758
5,325
-
50,564
51,306
40,307
916
4,758
5,325
-
Payables
13,698
13,698
13,698
-
-
-
-
Other
18,717
18,717
18,717
-
-
-
-
17,152
18,170
3,480
1,382
6,085
7,223
-
49,567
50,585
35,895
1,382
6,085
7,223
-
Other
Borrowings:
Finance
lease liabilities – motor
vehicles
2012
Payables:
Borrowings:
Finance
lease liabilities – motor
vehicles
Note: The carrying amounts disclosed exclude statutory amounts e.g. GST payables.
(d)
Market risk
The Department’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other
price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below.
Interest rate risk
The Department manages its interest rate risk by mainly undertaking fixed rate or non-interest bearing financial instruments, with minor amounts
on deposit at floating rate with Treasury Corporation of Victoria. The Department’s borrowings are managed by the Department of Treasury and
Finance.
The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 23.6.
Foreign currency risk
The Department is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from
overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and
settlement.
Table 23.6 Interest rate exposure of financial instruments
Average interest rate
%
2013
Carrying
amount
$’000s
Interest rate
exposure
Fixed interest
rate
$’000s
Variable interest rate
$’000s
Non-interest
bearing
$’000s
Cash and deposits:
Bank depos-
3.05%
60,052
-
3,629
56,423
9,282
-
-
9,282
9,161
-
-
9,161
15,721
15,721
-
-
132
-
-
132
94,348
15,721
3,629
74,998
its
Receivables:
Sale of goods
and services
Other
Investments and
other financial
assets:
Funds invested in Treasury Corporation
of Victoria
3.36%
Shares in
other entities
Payables:
Payables
875
-
-
875
36,771
-
-
36,771
12,918
12,918
-
-
50,564
12,918
-
37,646
71,128
-
3,878
67,250
6,406
-
-
6,406
288
-
-
288
15,721
15,721
-
-
113
-
-
113
93,656
15,721
3,878
74,057
Payables
13,698
-
-
13,698
Other
18,717
-
-
18,717
17,152
17,152
-
-
49,567
17,152
-
32,415
Other
Borrowings:
Finance lease
liabilities – motor
vehicles
6.54%
2012
Cash and deposits:
Bank depos-
4.28%
its
Receivables:
Sale of goods
and services
Other
Investments and
other financial
assets:
Funds invested in Treasury Corporation
of Victoria
4.49%
Shares in
other entities
Payables:
Borrowings:
Finance lease
liabilities – motor
vehicles
6.59%
Note: The carrying amounts disclosed exclude statutory amounts (e.g. amounts owing from Victorian government and GST payables).
(e)
Fair value
The fair value of shares held in XRF Scientific Limited is determined by reference to the quoted price on the Australian Stock Exchange at the end
of the reporting period. This fair value measurement is classified as Level 1 of the fair value hierarchy as per AASB 7. For all other financial
instruments, the Department considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements to
be their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.
Note 24. Cash flow information
(a) Reconciliation of cash and cash equivalents
2013
$’000
2012
$’000
Cash at bank and on hand (i)
(1,977)
(1,420)
Funds held in trust
62,029
72,548
Balance as per cash flow statement
60,052
71,128
(i)
Due to the State of Victoria’s investment policy and Government funding arrangements, government departments generally do not hold a large cash reserve in
their bank accounts. Cash received by the Department from the generation of income is generally paid into the State’s bank account, known as the Public
Account. Similarly, any Departmental expenditure, including those in the form of cheques drawn by the Department for the payment of goods and services to
its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to the Department the cash required for
the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the Department’s suppliers or
creditors.
The above funding arrangements often result in Departments having a notional shortfall in the cash at bank required for payment of unpresented
cheques at the reporting date.
As at 30 June 2013, cash at bank included the amount of a notional shortfall for the payment of unpresented cheques of $2,197,327 (2012:
$1,829,819).
(b) Reconciliation of net result for the period
2013
$’000
2012
$’000
(19,259)
(3,136)
(Gain)/loss on sale or disposal of
non-current assets
(1,233)
3,006
Depreciation and amortisation of
non-current assets
30,514
27,474
(Gain)/loss from derecognition of
assets
(17)
45
(3,198)
(6,417)
(Increase)/decrease in Current
receivables
(5,732)
3,347
(Increase)/decrease in Current
inventories
11
(84)
(Increase)/decrease in Other
current assets
1,401
(2,239)
(Increase)/decrease in
Non-current receivables
2,000
2,751
Increase/(decrease) in Current
payables
5,843
(3,164)
Increase/(decrease) in Current
provisions
(4,312)
737
Increase/(decrease) in Other
current liabilities
424
2,096
Increase/(decrease) in
Non-current payables
(60)
(60)
Increase/(decrease) in
Non-current provisions
(2,142)
307
4,240
24,663
2013
$’000
2012
$’000
Net result for the period
Non-cash movements
(Gain)/loss from revaluation of assets
Movements in assets and liabilities
Net cash from/(used in) operating
activities
Note 25. Reserves
Physical asset revaluation surplus
Balance at beginning of financial year
254,022
254,022
-
-
254,022
254,022
113
94
Revaluation increments/(decrements)
Balance at end of financial year
Financial assets available-for-sale
revaluation surplus(i)
Balance at beginning of financial year
Valuation gain/(loss) recognised
19
19
132
113
254,154
254,135
Balance at end of financial year
Total reserves
(i)
The financial assets available-for-sale revaluation surplus arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is
sold, that portion of the reserve, which relates to that financial asset, is effectively realised, and is recognised in profit and loss. Where a revalued financial
asset is impaired, that portion of the reserve which relates to that asset is recognised in profit and loss.
Note 26. Summary of compliance with annual parliamentary and special
appropriations
(a) Summary of compliance with annual Parliamentary appropriations
The following table discloses the details of the various annual Parliamentary Appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘Provision of outputs’ and ‘Additions to Net Assets’ are disclosed as ‘controlled’
activities of the Department.
AP
PR
OP
RI
AT
IO
N
AC
T
FI
NA
NC
IA
L
M
AN
AG
EM
EN
T
AC
T
19
94
An
nu
al
Ap
pr
op
riati
on
An
nu
al
Ap
pr
op
riati
on
Tra
nsf
err
ed
Ad
va
nc
e
fro
m
Tre
as
ur
er
Se
cti
on
29
Se
cti
on
30
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
40
8,5
98
40
5,9
22
-
3,2
26
Se
cti
on
32
Tot
al
Pa
rlia
me
nta
ry
Au
th
ority
Ap
pr
op
riati
on
s
Ap
pli
ed
Va
ria
nc
e
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
20
13
$’0
00
20
12
$’0
00
12,
26
9
13,
40
8
88,
21
3
83,
39
0
(11
,71
5)
(6,
33
3)
57,
64
9
27,
02
2
55
5,0
14
52
6,6
35
45
1,8
56
43
6,5
35
10
3,1
58
90,
10
0
Con
troll
ed
Provision
of
outp
uts (i)
Additions
to
net
assets
23,
22
7
29,
87
1
-
-
-
-
13
4
2,1
71
11,
71
5
6,3
33
24,
70
0
11,
78
5
59,
77
6
50,
16
0
28,
60
1
12,
29
1
31,
17
5
37,
86
9
43
1,8
25
43
5,7
93
-
3,2
26
12,
26
9
13,
40
8
88,
34
7
85,
56
1
-
-
82,
34
9
38,
80
7
61
4,7
90
57
6,7
95
48
0,4
57
44
8,8
26
13
4,3
33
12
7,9
68
(ii)
Total
(i)
•
•
•
•
•
•
•
•
(ii)
•
•
•
•
•
Provision of Outputs
The major areas contributing to the variance of $103.2 million in provision of outputs appropriation were:
The appropriation for the Carbon Capture Storage Large Scale Demonstration program was rephased due to contractual delays and changes in the approach
to the development of the CarbonNet Foundation Source Strategy, and, procurement delays of an external service provider for carbon storage certification.
The appropriation for the Energy Technology Innovation Strategy - HRL Large Scale Demonstration was rephased due to funding required for the CarbonNet
project, Mine Stability and Strengthening our Earth Resources project.
A number of externally funded research and development projects were underspent due to timing issues between revenue recognised when the contracts are
signed and the actual delivery of project milestones.
The appropriation for the Biosciences Research Centre was rephased to accommodate the late achievement of Commercial Acceptance of AgriBio.
A number of Energy and Earth Resources initiatives, including the Powerline Bushfire Safety Program, Facilitating Low Emissions Technology, Advanced
Metering Infrastructure Program and Future Energy were underspent due to delays. Carryovers have been requested to enable commitments to be met in
2013-14.
The appropriation for the Energy Technology Innovation Strategy 2 – Sustainable Energy program was rephased to align with the timing of milestone grant
payments as per funding agreements for projects associated with the large scale demonstration, pilot demonstration and research and development programs.
Revenue has been received from the Commonwealth in advance of work being undertaken on the Coal Seam Gas and Large Coal Mining Development
project.
The appropriation for the Systems for Enhanced Farm Services program was rephased due to a substantial rethink of both the intent and phasing of the
program.
Additions to Net Assets
The following major areas contributed to the variance of $31.2 million in Additions to net asset base appropriation:
The appropriation for the AgrioBio Centre was rephased due to the delayed achievement of scientific research accreditation for the ArgiBio facility, postponement of science staff relocation into the facility, and extensive procurement process required, triggering delays in the procurement of scientific related
equipment.
The appropriation for the Systems for Enhanced Farm Services and Natural Disaster Emergencies programs were rephased due to a substantial rethink of both
the intent and phasing of the programs.
The appropriation for the Warrnambool component of the Modernising Farm Services and Science Asset initiative was rephased due to delayed construction
commencement associated with existing tenancies of the acquired property.
The result of the Metro Consolidation project having been delayed due to the discovery and removal of an underground fuel tank wrapped in an asbestos
membrane on the Attwood site as well as the flow on impacts from the delayed completion of AgriBio.
The Site Consolidation Upgrade was put on hold following the Machinery of Government announcement in April 2013. Requirements have since been finalised
and works recommenced in early 2013-14. Horsham Irrigation Upgrade has been delayed due to the review of delivery method and the Fire Ring project has
been delayed due to adverse weather.
(b) Summary of compliance with special appropriations
Authority
Purpose
Appropriations applied
2013
$’000
2012
$’000
Appropriation for borrowing
against future appropriation
(output)
-
6,000
Appropriation for borrowing
against future appropriation
(ATNAB)
-
-
Provision of outputs special appropriations
Section 28 of the Financial
Management Act 1994
Addition to net assets
special appropriations
Section 28 of the Financial
Management Act 1994
Note 27. Ex-gratia payments
2013
2012
$’000
$’000
The Department made the following ex
gratia payments:
7
-
Ex gratia payments
7
-
These ex gratia payments were mainly paid to employees as part of
severance packages.
Note 28. Annotated income agreements
The following is a listing of Section 29 Annotated Receipt Agreements approved by the Treasurer.
2013
$’000
2012
$’000
Research and Experimental Projects –
Commonwealth Contributions
24,420
23,983
Research and Experimental Projects –
Industry Contributions
32,419
42,064
Agriculture and Veterinary Chemicals
Permits
306
290
Seafood Industry Levy
714
735
20,957
6,716
2,703
2,134
677
149
134
2,171
Coal seam gas and large coal mining
development
2,030
4,050
Plant disease and eradication
1,196
400
12
41
User charges, or sales of goods and
services
Sale of timber resources to Australian
Paper (i)
La Trobe Contribution to Quarterly
Service Payments
Commercial Forests
Asset sales
Land and buildings sale proceeds
Commonwealth Specific Purpose
Payments
Wildlife Exotic Disease Preparedness
Program
Municipal
Domestic Animals Act
Total Annotated Income Agreements
(i)
2,779
2,828
88,347
85,561
As part of the December 2011 Machinery of Government change transferring the management of Victoria’s commercial timber harvesting on public land from
the Department of Sustainability and Environment to the Department of Primary Industries, the wood pulp agreement under the Forests (Wood Pulp Agreement) Act 1996 executed by the Department of Sustainability and Environment transferred to the department. The agreement legislates for the supply of wood
for pulp from the department to Australian Paper Pty Ltd until 2030. The annotated income above only reflects income retained by the Department after the
transfer date of 23 December 2011.
Note 29. Trust account balances
The following is a listing of trust account balances relating to trust accounts controlled or administered by the Department:
Cash and
investments
2013
2012
Opening
balance
as at 1
July 2012
$’000s
Total
receipts
$’000s
Total
payments
$’000s
Closing
balance
as at 30
June
2013
$’000s
Opening
balance
as at 1
July 2011
$’000s
Total
receipts
$’000s
Total
payments
$’000s
Closing
balance
as at 30
June
2012
$’000s
Controlled
trusts
Revenue
suspense
117
45
-
162
114
-
(3)
117
Disease
Compensation
Fund
16,522
4,357
3,945
16,934
17,687
5,142
6,307
16,522
Project
Trust Account
57,530
35,310
46,331
46,509
51,616
32,327
26,413
57,530
Plant and
Machinery
4,873
7,060
6,160
5,773
4,105
6,991
6,223
4,873
Fisheries
Plant and
Equipment
2,185
1
904
1,282
2,237
230
282
2,185
Recreational
Fishing
License
7,041
6,992
6,944
7,089
6,585
6,679
6,223
7,041
88,268
53,765
64,284
77,749
82,344
51,369
45,445
88,268
McCashney Scholarship
59
2
-
61
57
4
2
59
Lysterfield
Reclamation Levy
Fund
3,040
35
-
3,075
2,692
396
48
3,040
Securities
141
5
-
146
141
-
-
141
Treasury
Trust
285
80
39
326
78
135
(72)
285
Public
Service
Commuters Club
(13)
247
215
19
(7)
-
6
(13)
Total administered
trusts
3,512
369
254
3,627
2,961
535
(16)
3,512
Total controlled
trusts
Administered
trusts
Trust Name
Governing Legislation
Purpose
Revenue Suspense
Financial Management Act 1994
Short term clearing account pending correct identification of receipts.
Disease Compensation Fund
Livestock Disease Control Act 1994
To provide funds to support the
control and eradication of any outbreak and to provide compensation
for livestock destroyed due to suffering or suspected of suffering from
diseases.
Project Trust Fund
Financial Management Act 1994
To receive funds and make payments associated with departmental activities that include farming operations, and services the
Department has been contracted to
supply on a fee for service basis.
Plant and Machinery Trust Fund
Conservation, Forests and Lands
Act 1987
To fund renewals and replacements
of plant or machinery, and costs of
operating, maintaining and repair-
ing that plant or machinery and
other incidental expenses.
Fisheries Plant and Equipment Fund
Fisheries Act 1995
To enable the purchase of plant or
equipment required for the purposes of the Act, the operation,
maintenance and repair of that
plant or equipment, and to enable
the payment of any other expenses
in relation to that plant and equipment.
Recreational Fishing Licence Trust
Account
Fisheries Act 1995
Disburses revenue derived from the
sale of recreational fishing licenses
to projects that will further improve
recreational fishing opportunities in
Victoria, and to fund costs incurred
in the administration of recreational
fishing licences and the account.
McCashney Scholarship Trust Fund
Financial Management Act 1994
To facilitate scholarships to Departmental staff undertaking
part-time study on a work related
topic and who are not able to access any other benefits under study
leave arrangements.
Lysterfield Reclamation Levy Fund
Extractive Industries (Lysterfield)
Act 1986
Holds all moneys received under
the Agreement to the Act between
the State and Boral Resources (Vic)
Pty Ltd, Bayview Ltd and Dandenong Quarries Pty Ltd, in respect
of the reclamation levy payable
under the Agreement, to provide for
progressive reclamation of the land
and the Crown land in planned
stages as quarrying ceases.
Securities Trust Fund
Financial Management Act 1994
Holds security deposits, and rehabilitation bonds associated with
mining and extractive industries in
Victoria. A rehabilitation bond is a
financial security which must be
provided by an operator prior to
work commencing to ensure that
rehabilitation can be undertaken by
the Department should the operator
be unable to meet their rehabilitation obligations.
Treasury Trust Funds
Financial Management Act 1994
To hold monies including unidentified money and unpresented
cheques.
Public Service Commuters Club
Financial Management Act 1994
To enable Victorian Public Service
staff to purchase a yearly MYKI
ticket at a reduced rate. The Department pays the full cost of the
ticket and the staff member repays
the cost of the ticket (including an
administration fee) on a fortnightly
basis via the payroll system. The
above funding arrangement often
results in a notional shortfall in the
trust account.
Note 30. Responsible persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.
Names
The persons who held the positions of Ministers and Accountable Officer in the Department are as follows:
Minister of Agriculture and Food
The Hon. Peter Walsh MLA
1 July 2012 to 30 June 2013
Security
Minister for Energy and Resources
The Hon. Michael O’Brien MLA
1 July 2012 to 12 March 2013
Minister for Energy and Resources
The Hon. Nicholas Kotsiras MP
13 March 2013 to 30 June 2013
Secretary
Mr Jeff Rosewarne
1 July 2012 to 14 April 2013
Secretary
Mr Adam Fennessy(i)
16 May 2013 to 30 June 2013
Acting Arrangements
Minister Louise Asher acted as the Minister for Energy and Resources during the period 29 June 2013 to 30 June 2013.
Minister Hugh Delahunty acted as the Minister for Agriculture and Food Security during the period 21 February 2013 to 3 March 2013 and 15
June 2013 to 22 June 2013.
Minister Terry Mulder acted as the Minister for Agriculture and Food Security during the period 21 September 2012 to 27 September 2012 and 25
October 2012 to 28 October 2012.
Mr Bruce Kefford acted as Secretary during the periods 1 July 2012 to 6 July 2012 and 14 January 2013 to 18 January 2013.
Mr James Flintoft acted as Secretary during the periods 19 January 2013 to 29 January 2013 and 15 April 2013 to 15 May 2013.
Remuneration
Remuneration received or receivable by the Accountable Officers, excluding those acting in the position, in connection with the management of
the Department during the reporting period was in the range:
2013
No.
2012
No.
$100,000 - $109,999
-
1
$330,000 - $339,999
1
-
$350,000 - $359,999
-
1
Income Band
Amounts relating to the Ministers are reported in the financial statements of the Department of Premier and Cabinet.
(i)
Mr Adam Fennessy held the position of Secretary for both the Department of Primary Industries and the Department of Environment and Primary Industries
after the machinery of government changes announced 9 April 2013. Mr Fennessy’s salary was paid from the Department of Environment and Primary Industries.
Other transactions
Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no
matters to report.
Note 31. Remuneration of executives and payments to other personnel
a) Remuneration of executives
The number of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting periods are
shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third
and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement
benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period. A
number of executive officers retired or resigned in the past year. This had an impact on the total number of executive officers shown and on the
total remuneration figures due to the inclusion of annual leave and long-service leave.
As disclosed in Note 4: Restructure of Administrative Arrangements, the Department has recognised and disclosed the remuneration of executives transferred to other departments under section 30 of the Public Administration Act 1994 in the 2012-13 financial statements.
Three executives were transferred to the Department of Environment and Primary Industries on 13 May 2013 and their remuneration is disclosed
up to this date. The remainder of the transferred executives continued to contribute to the delivery of the outputs of the Department until 30 June
2013.
Total remuneration
2013
No.
Base remuneration
2012
No.
2013
No.
2012
No.
Less than $100,000
4
5
4
6
$100,000 - $109,999
1
-
1
-
$110,000 - $119,999
1
1
1
-
$130,000 - $139,999
-
-
-
1
$140,000 - $149,999
-
-
-
-
Income band
$150,000 - $159,999
-
2
-
1
$160,000 - $169,999
-
-
-
1
$170,000 - $179,999
-
1
1
3
$180,000 - $189,999
-
1
3
1
$190,000 - $199,999
2
1
2
6
$200,000 - $209,999
4
5
2
2
$210,000 - $219,999
3
3
2
2
$220,000 - $229,999
1
3
2
1
$230,000 - $239,999
2
1
3
1
$240,000 - $249,999
2
1
1
1
$250,000 - $259,999
1
1
-
2
$260,000 - $269,999
1
1
1
-
$270,000 - $279,999
-
1
-
-
$280,000 - $289,999
1
1
-
-
23
28
23
28
18.8
22.2
18.8
22.2
$4,231,962
$5,185,503
$3,976,147
$4,630,118
Total number of
executives
Total annualised
employee equivalent
Total amount
b) Payments to other personnel (i.e. contractors with significant management responsibilities)
The Department did not engage any contractors with significant management responsibilities during the year.
Note 32. Remuneration of auditors
Audit fees paid or payable to the Victorian Auditor-General’s Office for audit services:
2013
$’000
2012
$’000
215
215
Victorian Auditor-General’s Office
Audit of the financial statements
Other non-audit services
Total remuneration of auditors
-
-
215
215
Note 33. Subsequent events
Review of Sustainable Forests (Timber) Act 2004
The Sustainable Forests (Timber) Act 2004 (STFA) has been amended by the Sustainable Forests (Timber) Act Amendment Bill 2013 receiving
royal assent on 28 June 2013. Once proclaimed, the amendment will see the transfer of the biological timber assets from the Department to
VicForests.
Effective from 23 December 2011, a Machinery of Government change transferred the power to make an Allocation Order (order allocates timber
in State forests to VicForests for the purposes of harvesting and/or selling), in accordance with Part 5 of the Sustainable Forests (Timber) Act
2004 from the Minister for Environment and Climate Change to the Minister for Agriculture and Food Security. As part of the Machinery of
Government change the management of Victoria’s commercial timber transferred from the Department of Sustainability and Environment to the
Department of Primary Industries. The biological assets were transferred at their carrying value through equity in accordance with Financial
Reporting Direction 119 Contributions by Owners. From the date of proclamation the new provisions of the amended SFTA will apply and all
biological timber resources will be transferred from the Department and vested fully in VicForests.
Note 34. Glossary of terms
Biological assets
Biological assets comprise any living animal, plant or agricultural produce that is the harvested product of biological assets.
Borrowings
Borrowings refers to interest-bearing liabilities mainly raised from public borrowings raised through the Treasury Corporation of Victoria, finance
leases and other interest-bearing arrangements. Borrowings also include non-interest-bearing advances from government that are acquired for
policy purposes.
Capital asset charge
The capital asset charge represents the opportunity cost of capital invested in the noncurrent physical assets used in the provision of outputs.
Commitments
Commitments include those operating, capital and other outsourcing commitments arising from noncancellable contractual or statutory sources.
Comprehensive result
The net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other non-owner
movements in equity.
Depreciation
Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. This expense is
classified as a ‘transaction’ and so reduces the ‘net result from transaction’.
Employee benefits expenses
Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans.
Ex gratia payments
Ex gratia payment is the gratuitous payment of money where no legal obligation exists.
Financial asset
A financial asset is any asset that is:
(a) cash
(b) an equity instrument of another entity
(c) a contractual right or statutory right:
– to receive cash or another financial asset from another entity; or
– to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or
(d) a contract that will or may be settled in the entity’s own equity instruments and is:
–
a nonderivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or
–
a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number
of the entity’s own equity instruments.
Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements
imposed by governments) are not financial instruments.
Financial liability
A financial liability is any liability that is:
(a) a contractual or statutory obligation:
– to deliver cash or another financial asset to another entity; or
– to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or
(b) a contract that will or may be settled in the entity’s own equity instruments and is:
–
–
a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or
a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number
of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves
contracts for the future receipt or delivery of the entity’s own equity instruments.
Financial statements
Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial statements (i.e.
comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace
the old term ‘financial report’ under the revised AASB 101 (September 2007), which means it may include the main financial statements and the
notes.
Grants and other transfers
Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature.
While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to
receive directly benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence.
For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return
for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed nonreciprocal transfers.
Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may
be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.
Interest expense
Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and shortterm and longterm
borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments, and the increase in
financial liabilities and nonemployee provisions due to the unwinding of discounts to reflect the passage of time.
Interest income
Interest income includes interest received and/or receivable on bank term deposits, interest from investments, and other interest received.
Joint ventures
Joint ventures are contractual arrangements between the Department and one or more other parties to undertake an economic activity that is
subject to joint control. Joint control only exists when the strategic financial and operating decisions relating to the activity require the unanimous
consent of the parties sharing control (the venturers).
Net acquisition of nonfinancial assets (from transactions)
Purchases (and other acquisitions) of nonfinancial assets less sales (or disposals) of nonfinancial assets less depreciation plus changes in
inventories and other movements in nonfinancial assets. Includes only those increases or decreases in nonfinancial assets resulting from
transactions and therefore excludes writeoffs, impairment writedowns and revaluations.
Net result
Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses
(including losses) recognised for the period, excluding those that are classified as ‘other nonowner changes in equity’.
Net result from transactions/net operating balance
Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and
other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to
government policies.
Net worth
Assets less liabilities, which is an economic measure of wealth.
Nonfinancial assets
Nonfinancial assets are all assets that are not ‘financial assets’.
Other economic flows
Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes gains and losses
from disposals, revaluations and impairments of noncurrent physical and intangible assets, actuarial gains and losses arising from defined
benefit superannuation plans, fair value changes of financial instruments and agricultural assets, and depletion of natural assets (nonproduced)
from their use or removal. In simple terms, other economic flows are changes arising from market remeasurements.
Payables
Includes short and long term trade debt and accounts payable, grants and interest payable.
Produced assets
Produced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangible produced assets
may include computer software, motion picture films, and research and development costs (which does not include the start up costs associated
with capital projects).
Receivables
Includes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable, accrued
investment income, grants, taxes and interest receivable.
Sales of goods and services
Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and
services, fees from regulatory services, work done as an agent for private enterprises. It also includes rental income under operating leases and
on produced assets such as buildings, but excludes rent income from the use of nonproduced assets such as land. User charges includes sale
of goods and services income.
Supplies and services
Supplies and services generally represent cost of goods sold and the daytoday running costs, including maintenance costs, incurred in the
normal operations of the Department.
Transactions
Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by
mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the
depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the
government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final
consideration is cash. In simple terms, transactions arise from the policy decisions of the government.