DIIRD Annual Report 2006-2007 by Michael Randall

Department of Innovation, Industry and Regional Development

Annual Report 2006-2007

Financials and Appendicies CDROM

Published by the Department of Innovation, Industry and Regional Development, Melbourne, Victoria. October 2007 Annual Report 2006-07 This report is also available on the internet at: www.diird.vic.gov.au ÂŠ Copyright State of Victoria 2007 This publication is copyright. No part may be reproduced except in accordance with the provisions of the Copyright Act 1968. Authorised by the Victorian Government Department of Innovation, Industry and Regional Development. 121 Exhibition Street Melbourne Victoria 3000. Contact: Strategic Communications Unit Telephone: (03) 9651 9999 ISSN 1447-5014 Printed by blueprint Designed and Produced by X2 Design Photo credits Michael Silver: p. 16, 20, 28, 32, 36, 50, 54 David Johns: p. 24, 41, 46, 58 The paper used in this report is accredited to both ISO 14001 and EMAS (Eco-Management and Audit Scheme) standards ensuring environmentally sustainable and responsible processes through all stages of material sourcing and manufacture. EMAS standards include third party auditing, public reporting and continual improvement programmes.

CONTENTS

Secretaryâ&#x20AC;&#x2122;s foreword

Our Ministers

Economic context

Role and structure of the Department

Organisational chart

DIIRD governance

Output groups

STRATEGIC OBJECTIVES 01 Investment attraction 02 Trade development 03 Developing innovative industries 04 Regional development 05 Marketing Victoria 06 Skilled Victorians 07 Connecting Victoria 08 Competitive and fair business environment 09 Productive workforce 10 Innovation and industry policy 11 Corporate support

16 20 24 28 32 36 42 46 50 54 58

Financials

CD ROM

Appendices

CD ROM

SECRETARY’S FOREWORD

Victoria is a great place to live, work, visit, invest and learn. The Department works with an extraordinarily diverse range of businesses, industries and individuals to foster growth, innovation and prosperity across our state. While the broad scope of the Department’s responsibilities and activities presents its own challenges, it also provides a unique perspective and valuable overview of the economic, social and demographic forces that contribute to and shape our successes. Despite the difficulties of drought and increasing interstate and international competition, Victoria has continued to enjoy economic, population and jobs growth over the past year. Our innovative industries, skilled workforce and ability to adapt to a rapidly changing environment underpin these positive results. On this basis, the Department of Innovation, Industry and Regional Development (DIIRD) continues to focus on facilitating, supporting and encouraging businesses of all sizes to innovate, invent and reinvent. Innovation is the product of individual and collective creativity and involves experimenting with new ideas,

production processes, technologies and information management systems. Many of the case studies outlined in this report exemplify the tangible benefits that flow from this. There are also many examples of the ongoing benefits of our investment in strategic knowledge industries, infrastructure and services. The Australian Synchrotron is the most significant investment in national research infrastructure for decades. It is set to revolutionise scientific discovery and enable advances in our food technology, mining, manufacturing, medical technology, defence and forensics industries. We continue to target and facilitate a broad range of investments across the state. For example, Invest Victoria and Tourism Victoria successfully lobbied Singapore-based Tiger Airways to establish its Australian operations in Melbourne. Tiger’s new investment is expected to create 165 full-time jobs, benefit Victoria’s aviation and tourism industries and increase our access to international markets. There are many other examples of significant investment in Victoria in the pages that follow. A number of machinery-of-government changes took place following the

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

November 2006 State election. The most significant changes for DIIRD were the integration of the Office of Training and Tertiary Education (OTTE) and Multimedia Victoria (MMV) into the Department. OTTE provides strategic leadership and support in the key areas of Vocational Education and Training (VET) and higher education, while MMV plays an important role in fostering the development and uptake of new technologies, facilitating international investment and local industry growth in Information and Communication Technology (ICT) and supporting a highly skilled ICT workforce. Their inclusion in DIIRD ensures that we have broader influence over innovation and skills in the state, with a more complete oversight of the key drivers of economic growth. Planning for a highly skilled ICT workforce to meet industry needs is a significant labour-force challenge in Australia, and one in which Victoria is leading the way. This year’s ICT: Start here. Go anywhere campaign to target and increase ICT skills was a great success, and is now set to be adopted nationally. ICT ministers across the country adopted ICT: Start here. Go anywhere as the national brand for ICT careers promotion in 2006. This is a

great endorsement of the Department’s creative approach in this important area. A major highlight for OTTE has been the implementation of initiatives arising from the Maintaining the Advantage: Skilled Victorians statement. With $241 million over four years dedicated to increasing productivity and workforce participation, initiatives are focusing on creating more training opportunities for young people and adults without qualifications, making training more accessible and helping to meet changing industry needs. The Department has developed the Victorian Workplace Rights Standard to provide a framework for all policies and programs developed around the new industrial relations laws. The Government also established the Victorian Office of the Workplace Rights Advocate (OWRA). OWRA provides free telephone and online advice on the new industrial relations system to employees, employers and independent contractors. Our ongoing work in the key area of regional development was a highlight of 2006-07. Regional Development Victoria continued to deliver the Government’s $502 million action plan for growth in provincial Victoria.

Programs and initiatives designed to drive new investments, infrastructure development, population and business growth were supported. These initiatives and programs contributed to building strong and effective regional infrastructure that would attract, support and sustain businesses and residents in regional and rural areas. The Make it Happen in Provincial Victoria marketing campaign continued to widely promote the many lifestyle, employment and investment opportunities of regional areas. With so much to offer, it is no surprise that Victoria’s tourism and events industry continued to generate interest, economic activity, jobs and export revenues throughout the year. Victoria increased its share of Australian tourism by between two to three percentage points, as measured by value-added growth, percentage of GDP and employment. The Government’s ten-year Tourism and Events Industry Strategy was launched in October 2006 and aims to grow tourism to an $18 billion industry employing 225,000 Victorians by 2016. The comprehensive strategy was developed by DIIRD in partnership with the tourism industry, and outlines a new vision, direction and marketing

approach designed to stimulate and support Victorian tourism’s continued growth. The Government’s Time to Thrive small business statement was also launched during the year, providing a $98 million package of practical programs and innovative initiatives to reduce red tape, boost the skills base and help small businesses grow and prosper. There are many more successful projects and strategic initiatives outlined in detail throughout this year’s report. It is satisfying to reflect on the positive outcomes and benefits they have brought to our economy and community in terms of investment, employment, growth and innovation. These experiences inform our approach to the coming year, and will help us continue to shape thriving, innovative industries and strong partnerships between government, industry and communities across the whole of Victoria.

Warren Hodgson Secretary

D N A RS Y TE R S IS TA IE IN N R M ME ETA UR IA R O RL EC S PA

The Hon. Theo Theophanous MLC Minister for Industry and State Development Minister for Small Business

The Hon. Jacinta Allan MP Minister for Skills, Education Services and Employment

The Hon. John Brumby MP Minister for Innovation Minister for Regional and Rural Development

The Hon. Tim Holding MP Minister for Information and Communication Technology Minister for Tourism

The Hon. Rob Hulls MP Minister for Industrial Relations

New Ministerial responsibilities and machinery of Government changes were announced soon after the end of the 2006-07 financial year. The following Ministerial responsibilities are effective from 8 August 2007: The Hon. Theo Theophanous MLC Minister for Industry and Trade Minister for Information and Communication Technology The Hon. Rob Hulls MP Minister for Industrial Relations The Hon. Kaye Darveniza MLC Parliamentary Secretary for Regional Development

Tony Lupton Parliamentary Secretary for Industry and Innovation

The Hon. Jacinta Allan MP Minister for Regional and Rural Development Minister for Skills and Workforce Participation The Hon. Tim Holding MP Minister for Tourism and Major Events The Hon. Joe Helper MP Minister for Small Business The Hon. Gavin Jennings Minister for Innovation Parliamentary Secretaries The Hon. Kaye Darveniza MLC Parliamentary Secretary for Regional and Rural Development Ms Jaala Pulford Parliamentary Secretary for Industrial Relations The Hon. Marsha Thomson MLC Parliamentary Secretary for Industry and Trade For DIIRD, the resulting machinery of Government changes resulted in Workforce Participation (formerly Employment Programs) moving to DIIRD from the Department of Planning and Community Development (formerly Department for Victorian Communities).

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

ECONOMIC CONTEXT

Victoria continues to enjoy robust economic growth against a backdrop of relentless drought conditions and a high Australian dollar. Exports of goods and services rose 8.4 per cent to $30.4 billion and Victoria’s average annual economic growth rate of 3.2 per cent remained consistent with the national average. These are impressive figures in the context of the resources boom which is driving strong competition for investment and labour. Victoria enjoyed increased employment, population growth and business investment across the state throughout the year. This continuing economic expansion is the result of a favourable global and domestic economic environment, strong economic management, a skilled workforce, innovative industries and a responsive business sector. Employment remains strong, with the unemployment rate dropping to the historically low level of 4.7 per cent in 2006-07 across the state. Record high workforce participation rates of over 65 per cent reflect higher levels of skilled migration and delayed retirement. The buoyant labour market has contributed to solid growth in consumer spending, underpinned by strong retail trade and car sales. Skills shortages present a key challenge in the current economic climate. Private sector business surveys increasingly show that labour and skills shortages are major constraints on activity. Demand for skilled workers continues to

grow, and the types of skills businesses need are also changing. This reinforces the practical importance of the Government’s ongoing commitments to workforce training, support and development, to ensure the evolving needs of businesses and industry can be met. Victoria’s key industries - education, retail trade, manufacturing, business services, dairy and health - continue to grow. Small business surveys reflect an increase in business confidence and expectations of further increases in sales, profitability, employment and capital expenditure. In terms of state investment, construction activity remains high. Major projects underway include the Melbourne Convention Centre, shopping centre redevelopments and education and health sector construction works. The value of engineering construction work is down, due to the one-off surge in expenditure on oil and gas projects, but remains historically high. Non-residential building approvals are also at a record high. For many parts of regional Victoria, 2006-07 was a difficult year. Residents and businesses endured drought and battled devastating bushfires across the north-east and west, and flood in the Gippsland region. DIIRD responded to these challenges by developing and delivering $138 million of initiatives for environmental, community and business recovery in bushfire-affected regions, and a $146 million droughtassistance package for farmers, businesses and communities. These facts and figures underline the importance of supporting and investing in innovation, international competitiveness, workforce skills

and the community. They also point to the importance of taking a flexible approach to responding to the key challenges of the early 21st century – be they economic, industrial, social, environmental or technological. DIIRD is responding to the challenge of skills shortages through the ongoing implementation of Maintaining the Advantage: Skilled Victorians program. This $241 million package of programs and initiatives to boost the skills of Victoria’s workforce and grow the economy was unveiled in 2006. These initiatives are designed to encourage more young people into trades, provide working Victorians with a chance to upgrade their skills and help business to match skills training to industry priorities. The major drivers of economic change that impact on Victoria are a complex blend of domestic and international issues – globalisation, intensifying competition, rapid economic, social and technological change, and shifts in the balance of world economic growth and competitive advantage. At a national level, the ageing population and questions of environmental sustainability are critical ones. Victoria’s future prosperity will be heavily reliant on adopting new and innovative approaches that foster greater participation in the labour market and encourage the development of more sustainable ways to live, work, travel, produce and consume. Innovation remains the key. While the economic advantages of countries like China and India lie in low-cost production and services, recent experience suggests Victoria’s enduring advantage will be our proven ability to convert knowledge and ideas into advanced products and innovative services now and into the future.

ROLE AND STRUCTURE OF THE DEPARTMENT

The Department of Innovation, Industry and Regional Development (DIIRD) is the Victorian Government’s lead agency for economic and regional development. It has eight organisational divisions and two associated bodies with wideranging responsibilities, which are outlined below. The Department develops and implements a diverse range of programs, initiatives and projects designed to attract and

Division/Agency Business Development Includes the Office of Science and Technology, the Office of Manufacturing and Service Industries, and Business Innovation and Strategy.

facilitate investment, encourage exports and industries, foster skills, stimulate innovation, and promote Victoria nationally and internationally. DIIRD works closely with business, other government agencies and the community to achieve the Government’s major economic development goals of increased investment, exports and high quality jobs.

Key responsibilities • assists the development of industry sectors that are important to the Victorian economy, with a particular focus on manufacturing and service industries • develops and implements initiatives that actively support business innovations, including growing Victoria’s science and technology capabilities and encouraging the adoption and commercialisation of new technologies • supports efforts to attract new investment to Victoria and to grow exports, including working with industry sectors to help them meet the challenges presented by global markets.

Business Support Includes the Offices of Small Business, Investment Facilitation, International Business and Export, the Koori Business Network and Program Support Branch.

• provides a focal point for initiatives and support programs critical to meeting the Government’s economic goals, including the creation and growth of businesses • offers a single access point for information and assistance to businesses • promotes a competitive business and regulatory environment • facilitates investment projects and coordinates export related support services.

Corporate Services

• provides corporate support services, including finance, human resources, information and technology management and governance services.

Economic Policy and Planning

• develops and drives the Department’s economic development policy agenda • manages the Department’s strategic and business planning processes • provides evaluation, Cabinet and Parliamentary services.

Industrial Relations Victoria

• develops an industrial relations framework for Victoria that encourages investment and promotes high performing and innovative workplaces • provides for fair employment conditions.

Innovation Economy Advisory Board The Board comprises leading figures from industry, academia, government, and the arts and science communities.

• promotes Victoria as a globally competitive business location to increase business investment and employment levels • targets and attracts new investors and offers a single, accessible entry point for international investors.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Division/Agency Invest Victoria

Key responsibilities • promotes Victoria as a globally competitive business location to increase business investment and employment levels • targets and attracts new investors and offers a single, accessible entry point for international investors

Office of Training and Tertiary Education

• provides strategic leadership and support for the development of higher education, Vocational Education and Training (VET) • plans, purchases and monitors services offered by TAFE institutions and registered training organisations • manages legislative, regulatory and governance responsibilities for VET, further education and higher education.

Office of the Victorian Small Business Commissioner

• promotes a genuinely competitive and fair business environment for Victorian small businesses through mediation, the investigation of complaints and enforcement of industry codes of practice • ensures government practices are business friendly.

Multimedia Victoria

• develops and implements the government’s Information and Communication Technology (ICT) agenda through a range of programs that promote a strategic approach to broadband telecommunications • develops and implements programs designed to promote, support and grow a competitive Victorian ICT industry.

Regional Development Victoria

• facilitates economic, infrastructure, industry and community development to support a prosperous and growing Victoria.

Strategic Communications

• provides a strategic framework for communications across the Department to support DIIRD’s objectives of increasing investment, creating jobs and supporting growth in Victoria.

Tourism Victoria

• works to maximise employment and the long-term economic benefits of tourism throughout Victoria by developing the industry and marketing the state as an attractive and competitive tourist destination for both domestic and international tourists.

Workplace Rights Advocate

• provides information on workplace rights to employees and employers • promotes the fair industrial treatment of employees • investigates illegal, unfair or otherwise inappropriate industrial relations practices in Victoria • monitors and reports on industrial relations practices and their impact in Victoria to Parliament.

ORGANISATIONAL CHART

Minister for Industry and State Development Minister for Small Business Theo Theophanous (Coordinating Minister)

Minister for Innovation Minister for Regional and Rural Development John Brumby

• Australian Grand Prix Corporation • Emerald Tourism Railway Board • Federation Square Pty Ltd • Film Victoria • Melbourne Convention & Exhibition Trust • Regional Development Advisory Committee • Small Business Commissioner • Tourism Victoria Board • Victorian Major Events Corporation • Victorian Learning & Employment Skils Commission • Workplace Rights Advocate

Minister for Skills, Education Services and Employment

Minister for Industrial Relations

Jacinta Allan

Rob Hulls

Small Business Commissioner

Workplace Rights Advocate

Mark Brennan

Tony Lawrence

Deputy Secretary

Economic Policy & Planning

Business Development

Business Support

David Hanna (Acting)

Jane Niall

• Industry & Trade Policy • Innovation & Research • Planning & Government Services

Chief Executive Officer

Invest Victoria

Regional Development Victoria

Ian Munro (Acting)

Ben Foskett

Dan O’Brien

• Office of Science & Technology

• Office of Small Business

• International Investment

• Infrastructure

• Office of Manufacturing & Service Industries

• Office of Investment Facilitation

• Victorian Government Business Offices

• Office of Business Innovation & Strategy

• Office of International Business & Export

• Strategic Projects & Policy

• Business Development Administration • Communications & Events

• Program Support • Koori Business Network

10 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

• Marketing • Finance & Administration

• Industry Investment • Promotion & Development • Delivery

Minister for Tourism Minister for Information and Communication Technology Tim Holding

Parliamentary Secretary for Regional Development

Parliamentary Secretary for Industry and Innovation

Kaye Darveniza

Tony Lupton

Secretary

Chief Executive Officer

Executive Director

Department of Innovation, Industry and Regional Development

Innovation Economy Advisory Board

Strategic Communications

Warren Hodgson

David Hanna

Merita Tabain

Deputy Secretary

Chief Executive

Executive Director

Deputy Secretary

Industrial Relations

Tourism Victoria

Multimedia Victoria

Office of Training & Tertiary Education

Corporate Services

Timothy Lee

Greg Hywood

Randall Straw

Patricia Neden

Marion van Rooden

• Private Sector

• Strategy & Policy

• Networks Policy

• Public Sector

• Industry & Investment

• ICT Capability & Futures

• Vocational Education & Training

• Governance Services

• Marketing • Executive Services

• ICT Investment & Business Development

• Higher Education & Regulation • Strategic Directions • Training Operations

• Finance • Human Resources • Information Management & Technology

DIIRD GOVERNANCE

Governance is the system by which organisations are directed and controlled, providing the foundations for sound decision making and accountability. DIIRD’s governance framework:

The committee operates under an approved charter and comprises an independent Chair, two independent members and a senior executive from the Department. Members of the 200607 DIIRD Audit Committee were:

• sets out the processes for developing organisational strategy and direction • ensures compliance and accountability • defines structures and relationships • outlines performance monitoring and review processes.

• Stewart Leslie, Causeway Consulting Pty Ltd (independent Chair) • Anne Jackson, Project Manager, National Australia Bank (independent member) • Sharon Miles, Consultant, Spencer Stuart (independent member) • Tim Lee, Deputy Secretary, Industrial Relations Victoria.

The Secretary, as Head of the Department, is accountable to the five DIIRD Ministers for governance of the Department. The Secretary is assisted to fulfil stewardship and leadership roles by the Departmental Executive Committee and a range of governance or management committees. Governance arrangements are continuously reviewed for their appropriateness and effectiveness.

Risk management Risk management is a core component of the governance structure of the department and is a requirement under the Financial Management Act 1994 and the Victorian Managed Insurance Authority Act 1996. DIIRD has adopted a Risk Management program, based on the Australian/New Zealand Standard AS/NZ 4360:2004. The program features four key elements:

Departmental Executive Committee The Departmental Executive Committee (DEC) consists of the Secretary, Deputy Secretaries, and the CEOs of Tourism Victoria, Regional Development Victoria, Invest Victoria and the Innovation Economy Advisory Board (IEAB). The Deputy Secretaries and CEOs operate together as the organisation’s executive decision-making body to provide leadership for DIIRD. DEC meets weekly and is responsible for:

• a risk management policy that sets out the framework and mechanisms for implementation of an ongoing, active risk management process • analysis of strategic risks and operational risks • risk management advisory, facilitation and training services to assist staff and managers in the performance of risk management

• determining the Department’s strategic direction, consistent with Government policy • appropriately resourcing the Department’s activities • building a high performance culture • actively managing relationships with stakeholders. Audit Committee The Audit Committee is an independent body established in accordance with the Financial Management Act 1994. Its main responsibilities are to oversee the regular review of risk management activity and key systems of internal control, including internal and external audit.

12 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

DIIRD Governance Framework Under DIIRDâ&#x20AC;&#x2122;s Governance Framework (see diagram right), the Secretary is supported by the executive team in providing the foundations for best practice governance. The commonly accepted principles of good governance include accountability, stewardship, transparency, efficiency, integrity, and leadership. It is through its business processes in the areas of: strategy and direction; performance monitoring; structure and relationship; and compliance and accountability that the Department upholds these principles and achieves high standards of governance.

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Departmental Executive Committee: (Back row, from left to right standing): Marion van Rooden, Deputy Secretary Corporate Services; Ben Foskett, CEO Invest Victoria; Merita Tabain, Executive Director Strategic Communications; Tim Lee, Deputy Secretary, Industrial Relations; (Front row, from left to right seated): Randall Straw, Executive Director, Multimedia Victoria; Ian Munro, Deputy Secretary, Business Support; Warren Hodgson, Secretary; Patricia Neden, Executive Director, Office of Tertiary Education and Training; Gregory Hywood, CEO Tourism Victoria. (Not shown in photograph): David Hanna, Deputy Secretary, Economic Policy and Planning and CEO Innovation Economy and Advisory Board; Dan Oâ&#x20AC;&#x2122;Brien, CEO Regional Development Victoria; Jane Niall, Deputy Secretary, Business Development. 13

OUTPUT GROUPS

DIIRD has seven key output groups that it reports on to the Victorian Government. The term outputs is used to describe the goods or services that are produced or delivered by each Government department. There are quality, timeliness and cost performance measures associated with each output, which the Government uses to assess departmental performance in service delivery. The outputs are also linked to the key social and economic outcomes detailed in Growing Victoria Together, which outlines the Government’s vision and objectives for Victoria. This year’s Annual Report provides detailed information on DIIRD’s programs and activities in the context of these output groups. It also outlines the Department’s key objectives and strategies, and illustrates how they contribute in a practical and tangible way to achieving our overall strategic objectives. Investment attraction The primary strategic objective of this output is to position Victoria as an attractive destination for investment that stimulates growth and development across the state. Invest Victoria plays a lead role in the delivery of this output, with significant contributions from across the whole Department.

Trade development The primary strategic objective of this output is to work with the business sector and other key partners to encourage and facilitate exports. The Office of International Business and Export plays a leading role in the delivery of this output, with contributions from across the Department. Developing innovative industries The primary strategic objective of this output is to facilitate and support innovation across Victorian business and industry. This output is delivered collaboratively across DIIRD, with specific contributions from Business Development, Industrial Relations Victoria, Business Support, Regional Development Victoria and the Small Business Commissioner. Information and Communication Technology policy and programs The primary strategic objectives of this output are to provide the Government with strong Information and Communication Technology policy development and to implement a range of targeted industry telecommunications programs. Multimedia Victoria, which became part of DIIRD following machinery-ofgovernment changes in December 2006, plays a leading role in the delivery of this output. Regional development The primary strategic objective of this output is to ensure the sustained economic and industry development of provincial Victoria. Regional Development Victoria takes a leading role in the delivery of this output.

14 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Marketing Victoria The primary strategic objective of this output is to effectively market Victoria in a global economy. Tourism Victoria plays a leading role in the delivery of this output. Skills The primary strategic objective of this output is to provide training and further education places by TAFE institutes and other registered training organisations, in accordance with priorities set by government, industry and the community. The Office of Training and Tertiary Education, which became part of DIIRD following machinery-ofgovernment changes in December 2006, plays a leading role in the delivery of this output.

OVERVIEW OF STRATEGIC OBJECTIVES

DIIRD plays a leading role in delivering the Government’s commitment to support Victorian businesses, facilitate regional development and create a strong, innovative and internationally competitive economy. To do this effectively, the Department takes a wholeof-Victorian Government approach and has a number of clear key objectives. The Department’s strategic objectives support the Government’s vision for Victoria, which is outlined in the Growing Victoria Together statement launched in March 2005. DIIRD’s Strategic Directions 2005-08 details these key objectives and priorities in an overall framework for the Department. The Department has five strategic primary objectives, which largely mirror the key output groups. In addition, the Department has three support objectives and one corporate objective, which are outlined below. Since machinery-of-government changes in December 2006, additional objectives for the Skills and ICT output

groups have been incorporated. The structure of this Annual Report reflects the role and importance of all of these objectives in identifying, shaping, assessing and evaluating the projects, programs and activities the Department undertakes to achieve the Government’s vision of a dynamic, innovative and sustainable economy. Key support objectives • Competitive and fair business environment: to facilitate a business environment that is strongly supportive of industry development. • Productive workforce: to foster a high performance and skilled workforce to meet the needs of the economy. • Innovation and industry policy: to provide leadership to whole-of-Victorian Government innovation and industry policy development and evaluation. Corporate objective • Corporate support: to deliver high-quality, responsive, relevant, accessible and efficient corporate support within DIIRD.

T EN N M IO T T ES C V RA IN T AT

16 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

INVESTMENT ATTRACTION

Strategic objective: Promote and position Victoria in the global economy as a world class investment location A new airline in Melbourne, a clean coal power station in the Latrobe Valley, new retail outlets across regional Victoria and the largest single office development in Australia at Docklands – these are just some of the many significant developments that brought strategically important investments and new jobs to Victoria in 2006-07. Attracting investment and the many social and economic benefits it brings is a key focus for DIIRD. Throughout the year, the Department continued to successfully promote and position Victoria as a world-class investment location - with tangible results. Companies confirmed new investments totalling $3,541.5 million and the creation of 8,002 jobs in Victoria in 2006-07. Key strategy: Identify, target and facilitate strategically important investments In 2006-07 the Government committed $83.7 million to businesses under the Investor Support Program. It is anticipated that these contracts will result in $2,028 million in capital investment and the creation of 2,348 full time direct jobs. These jobs are primarily distributed across the sectors of food and related industries (724 jobs), information and communication technology (280 jobs), automotive (348 jobs) and aviation (250 jobs). For those projects that received investment related grant payments in the 2006-07 financial year, and whose legal agreements were signed following 1 July 2002, 95 per cent of the grant value has been expended by the Government. These have achieved 135 per cent expected capital expenditure and 81 percent of the expected employment against their contractually

agreed targets. With grant payments tied to employment and capital expenditure targets, those companies that did not meet their expected employment targets did not receive the full grant payment. The Department obtained information relating to 117 facilitated projects that matured in 2006-07. The companies that undertook these projects invested 104 per cent of the amount expected to be invested at the time of confirmation and achieved 125 per cent of their employment forecast. The Department targeted and facilitated a broad range of investments throughout the year. In a positive development for Victoria’s aviation and tourism industries, Invest Victoria and Tourism Victoria successfully lobbied Tiger Airways, a Singaporebased airline, to establish its Australian operations in Melbourne. Tiger’s new investment is expected to create 165 full-time jobs and see travellers benefit from competitive airfares. The Department, through Regional Development Victoria (RDV) and the Office of Manufacturing and Service Industries, took a lead role in attracting a significant investment in regional Victoria. In October 2006, contact centre provider Excelior announced it would spend $2.3 million establishing a 150 seat contact centre in Shepparton, creating around 400 new jobs. The Office of Investment Facilitation provided extensive facilitation services to the company, including site identification services and the coordination of Government approvals. The Department also provided funding assistance for staff training under the Community Regional Industry Skills Program initiative. Excelior expects to begin operations in its new Shepparton centre in late 2007. The Energy Technology Innovation Strategy project targeted investment for a world’s best practice low

emissions technology power plant in Victoria. Invest Victoria worked with the Department of Primary Industries to contact prospective strategic investors and technology companies in America, Europe, Japan, Asia and China. Invest Victoria provided detailed information about the potential to invest in a clean coal demonstration power station in the Latrobe Valley. A formal tender process concluded with Victoria’s energy technology company HRL and China’s Harbin Power Engineering Company Ltd entering into a Memorandum of Understanding to build the power plant using HRL’s clean coal technology, which was developed after more than 10 years of research. The collaborative approach to facilitating this investment had very positive results, and contract negotiations are under way. In addition, a second clean coal project and a solar energy project have been successfully negotiated as part of the Energy Technology Innovation Strategy. Key strategy: Support the sustainability of investments through effective aftercare and client management Throughout the year, the Office of Investment Facilitation provided practical advice and assistance to a range of organisations and businesses. It facilitated meetings between companies, local councils and Government agencies to achieve timely resolutions to planning and development issues. For example, the Office of Investment Facilitation has an ongoing role in assisting Bunnings in its rollout of stores across the state. In the past year, the office has provided planning and development assistance for new store approvals in Box Hill, Eltham, Hawthorn, Mill Park and Rosebud. Bunnings employs over 6,200 people in Victoria, across 36 warehouse stores, with each store contributing around $70,000 a

Client Manager with the Office of Manufacturing and Service Industries, Brian Waters (left) worked closely with Phil Binns, Managing Director of Varian to facilitate investment and support business development for global research and development company, Varian, which specialises in the design, development, manufacture and export of scientific and medical instruments. 17

INVESTMENT ATTRACTION (CONTINUED)

year to the local community. The Office of Investment Facilitation also assisted ALDI, a German retail company, with approvals for stores in Brunswick, Corio, East St Kilda, Northcote, and Morwell. The office also worked with ANZ to secure the bank’s investment in a new world-class building at Victoria Harbour, Docklands. This $585 million project represents the largest single office development in Australia. Construction has commenced and by 2010 the new facility will accommodate 5,500 staff. This project

will enhance Melbourne’s reputation as a financial services hub. In 2006-07, AAMI announced a new $9 million customer contact centre to be established at Gisborne, creating up to 200 new jobs. The Office of Investment Facilitation provided assistance in securing the development approvals for the project, with RDV providing AAMI with a $600,000 grant under the Community Regional Industry Skills Program to train staff to operate the new centre. The facility is currently under construction and will be ready

Invest Victoria’s Commissioner to India, Wayne Lewis (centre) met with Managing Director of Indo Global Spices, Winfred Nelson (left) in Bangalore.

18 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

for occupation in early 2008. These projects reflect DIIRD’s commitment to playing an ongoing practical and responsive role that supports all kinds of investments, industries and areas.

ise rn e th ode ng p g in , m no u us ild de ing is bu an eat on re D cr gt to its t, ” in e d an … ilk ag en pl bs “P ack ext ass jo p d gl ew an at 2 n flo 29 to

Photo: Peter Hyatt and Pilkington

Low emissions energy efficient glass products made by Pilkington were used in the new Simplot building at Chifley Business Park, Mentone.

THE PILKINGTON PACKAGE: AN INNOVATIVE INVESTMENT WITH GREEN CREDENTIALS Invest Victoria worked closely with Sustainability Victoria to design an investment support package for Pilkington Australia in late 2006. Pilkington is using the package to rebuild, modernise and extend its Dandenong float glass plant, creating up to 292 new jobs. This practical assistance package will assist the company to introduce leading-edge production technologies to make e-glass – an energy efficient, globally competitive glass product that will help reduce domestic and commercial electricity and gas consumption. The investment support package is designed to build on local skills through training programs for tradespeople, designers, glaziers and builders. Training will focus on the uses, installation and benefits of e-glass. As part of the package, Pilkington committed to support local research and development, and work with the renewable energy industry to develop glass content for solar collection panels and photovoltaic cells. As part of the package, Pilkington also agreed to use modern manufacturing processes and energy, water and waste efficient production technologies in their operations. Pilkington’s investment in Victoria will generate local sourcing and import replacement options, assist the Government to achieve its environmental objectives, and highlight Victoria’s position as a globally competitive location for innovative and sustainable investment.

T EN T D RA EV D EL E O PM

02 20 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

TRADE DEVELOPMENT

Strategic objective: To work with the business sector and other key partners to encourage and facilitate exports Victoria’s export growth is at a fiveyear high, despite the impact of drought and a strong Australian dollar. This reflects the resilience of Victorian businesses and high quality products of our export market. Exports play a crucial role in the Victorian economy, and DIIRD works closely with local businesses, industry associations, chambers of commerce and the Federal Government to provide targeted support to local companies to promote, support and nurture our export market. The Victorian Government aims to grow state exports to $35 billion by 2015, and DIIRD continues to find new and innovative ways to achieve this goal. The Opening Doors to Export Plan details the programs, initiatives and activities DIIRD undertakes to grow exports in all manufacturing and service-based sectors, including the automotive, aerospace, food, education, professional services and tourism sectors. The Department is actively working with Victorian businesses to increase awareness of, and access to, export assistance programs and information. A range of initiatives encourage export start-up and expansion programs; foster industry cooperation, discussion and networking; and target new and emerging export markets - with a particular focus on North Asia, India and the Middle East. DIIRD recorded $933.1 million in exports through investments facilitated in 2006-07, and continued to work in partnership with Government and industry to achieve successful

outcomes through the Opening Doors to Export Plan. Throughout the year, the Department facilitated trade fairs and missions, provided export assistance grants and market intelligence in key overseas locations, and worked with other agencies across Government to support export initiatives. Key strategy: Assist firms, including small and medium enterprises, to develop and expand exports and import replacements The Office of International Business and Export’s Export Coordination Unit promotes and administers export programs and information services across the Victorian Government. In 2006-07, it provided export assistance to 4,223 Victorian companies and supported 36 trade fairs and missions to facilitate an expected increase in annual exports of $238.7 million. The Victorian Industry Participation Policy (VIPP) was reviewed during the year. VIPP was introduced in April 2001, and aims to boost employment and business growth in Victoria by expanding market opportunities for local small and medium enterprises (SMEs) and supply chain partners. The policy encourages local businesses to tender for major publicly funded projects, and fosters industry development by encouraging bidders to use local SME suppliers. VIPP applies to all Government projects with a value of over $3 million in metropolitan Melbourne and over $1 million in country Victoria. The Department also reviewed the Opening Doors to Export Plan, which was launched in 2004. The programs and services outlined in the Plan aim to increase awareness of assistance programs, provide clear and accessible information on export programs, and introduce new initiatives to encourage export start-ups. In August 2006 the

Department evaluated these programs and services, and conducted a survey of program participants. Overall, the evaluation found that the majority of program participants surveyed had a high level of satisfaction with their experience. Companies who had participated in the trade fairs and missions programs in 2006-07 indicated a client satisfaction rating of 90 per cent which is an encouraging response. The survey feedback will inform future improvements to export programs and initiatives. The Department also produced two comprehensive, user-friendly reference publications for staff and SMEs during the year: the Whole-of-Victorian Government Export Program Manual for Government Staff and Opening Doors to Export: Export Assistance Programs and Initiatives for Industry. The export program manual aims to assist in the coordination and marketing of Victorian Government export services, while Opening Doors to Export provides a listing of all the current export services and funding available from the Victorian Government. Key strategy: Facilitate cooperative arrangements between industry and Government to optimise trade opportunities The Department continued to facilitate and deliver export programs and services in collaboration with key industry associations throughout the year, maximising opportunities for Victorian exporters. Over 1,283 companies participated in export programs, including Export Networks, trade fairs and missions and the Next Step Exporter – Export Adviser Program. The Next Generation Food Strategy provides a practical example of Government and industry working

Business Development Manager in DIIRD’s Glenroy Victorian Business Centre, Elizabeth Joldeski (left) worked with flower exporter Wafex, represented by Director Adrian Parsons, to help them grow their business and improve their operations in Sunshine, western Melbourne. 21

TRADE DEVELOPMENT (CONTINUED)

together to optimise trade opportunities. The strategy was developed by RDV and the Food Victoria Council, and was informed by feedback received through consultation with more than 180 industry representatives. It supports food and beverage companies to become â&#x20AC;&#x2DC;export readyâ&#x20AC;&#x2122; by promoting Victorian food products to international buyers and helping companies collaborate to develop sufficient volume for exporting. There are currently 44 initiatives in operation under this program.

In 2006, funding was provided under the Next Generation Food Strategy for the International Food Chain Integrity and Traceability Project (IFCITP). The project aims to develop and test a supply chain documentation system to improve the quality, safety, security and efficiency of food export supply chains. The IFCITP will provide a competitive edge for Victorian food exporters and can be adapted for other export markets such as Japan and the

Minister for State Development, Theo Theophanous.

02 22 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

European Union, where food integrity and traceability is highly valued. The IFCITP will see the mapping of key export meat and dairy supply chains, which stretch from Victoria to the east coast of the United States. Substantial work has been undertaken in preparation for the trial of the new system in 2008, the results of which will be of great interest to exporters and other key industry and government stakeholders.

Y D U ST SE A C “… w loc w ere al m ov hen pri an er c ce u se om c fac as p om tu co are pe re m d tit rs pa to iv e ni es … ”

VLOCITY FAST TRAINS AND LOCAL INDUSTRY PARTICIPATION Bombardier Transportation, a leading international rail equipment manufacturer, delivered 38 two-carriage VLocity fast trains for regional Victoria in 2006-07, along with many new opportunities for local industry. Working collaboratively with the Industry Capability Network Victoria, Bombardier Transportation exceeded their Victorian Industry Participation Policy commitment of 55 per cent local content, and used more than 70 per cent for the manufacturing phase of the project. This includes jobs generated and the products and services used during the project. This translates to additional contracts valued at approximately $40 million awarded to local companies that might otherwise have been placed with overseas companies. Gary Jackson, Bombardier Director and Project Manager, said that price was the most significant factor when awarding contracts to suppliers. He found that local manufacturers were price competitive when compared to overseas companies and awarded the contracts accordingly. The 15-year maintenance phase of the contract will deliver even higher levels of local industry involvement, resulting in a total injection of $400 million into the Victorian economy over the life of the State Government’s $535 million Regional Fast Rail project. This is great news for local industry.

Principal Project Adviser on the Australian Synchrotron, John Neve (left) spearheaded the project from its inception. John worked with senior CSIRO researcher and Advisory Committee chair, Dr Jose Varghese, in forming the $50 million beamlines partnership. Jose was one of the first expert users of the protein crystallography beamline at the Australian Synchrotron, undertaking research on Alzheimerâ&#x20AC;&#x2122;s disease.

IV T VA

IN G N S PI E O RI EL ST EV U D ND I

24 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

DEVELOPING INNOVATIVE INDUSTRIES

Strategic objective: To facilitate and support innovation across Victorian business and industry Innovation plays a key role in Victoria’s current and future prosperity. It drives economic growth and delivers a wide range of benefits to the community, including high quality jobs, successful businesses, improved products and services, and advances in areas like health, education, communications and transport. Throughout 2006-07, the benefits of innovation were evident in a diverse range of projects and developments in all kinds of industries, from biotechnology to ship building to film and television production, to name just a few. DIIRD continues to support and facilitate innovation by improving skills and capabilities, developing industry strategies, networks and linkages, and undertaking research on economic and industry trends. Key strategy: Invest in strategic knowledge industries, infrastructure and services The Australian Synchrotron is the most significant piece of scientific infrastructure to be built in Australia for more than two decades and highlights the value of innovation. The synchrotron is expected to contribute around $110 million a year to the national economy and lead to the creation of 2,500 direct and indirect jobs. It will enable significant expansion of frontline research in key industry sectors such as biotechnology, medicine, minerals and advanced manufacturing. In June 2007, the Victorian Government announced that it would match the $50 million operating funding for the Australian Synchrotron promised in the Federal Budget. To date, the Victorian Government has provided $157 million towards the capital cost of the project. The construction and commissioning of the Synchrotron is now complete, on time and on budget, and the first experiments by expert users are under way. In other developments, the Science, Technology and Innovation (STI) Initiative continued to build on Victoria’s capabilities in scientific research and development and supported the development of new technology for

use by industry. Six new world-class facilities for scientific research and development valued at over $59 million were launched during the year. These facilities represent collaborations between leading Victorian research institutes and industry partners in biomedical, environmental and manufacturing fields. The total value of projects supported under STI Infrastructure investment is now around $1 billion. The Victorian Government’s life sciences statement, Healthy Futures, was launched in April 2006. Healthy Futures provides $230.45 million of investment to ensure Victoria continues to build a world-class medical research sector and advanced infrastructure. The initiative has also attracted significant investment from the Commonwealth Government ($141 million), Atlantic Philanthropies ($30 million), the University of Melbourne ($46 million), the Potter Foundation ($10 million) and the Myer Family ($3 million). During the year, the Victorian Government announced that it would provide $2.65 million for the new $9.5 million Metabolomics Australia Centre, headquartered at The University of Melbourne. Metabolomics is the detection, identification and quantification of large numbers of metabolites (the products of chemical reactions involved in metabolism). The centre will build on the capabilities established within the Victorian and Australian Centres for Plant Functional Genomics and the Bio21 Institute. The funding will be provided as part of the National Collaborative Research and Innovation Strategy. The Victorian Government is also providing $15 million for the $57 million Melbourne Centre for Nanofabrication (MCN), which will be Australia’s flagship nanotech facility. MCN will be the headquarters of the Australian National Fabrication Facility and will be located near the Australian Synchrotron, the CSIRO, Monash University and the Small Scale Technology Cluster. Key strategy: Foster innovation in business Throughout the year, DIIRD developed and implemented a number of comprehensive and strategic industry plans designed to foster business innovation across Victorian industry.

The broad range of plans included the Agenda for New Manufacturing, the Victorian Supply Chain Action Plan 2006, Design Victoria, the Victorian Defence Industry Strategic Roadmap and the Biotechnology Strategic Development Plan. These plans, roadmaps and strategies provided tailored programs and activities to support the needs, and encourage the development, of diverse industries of all sizes across Victoria. The Department continued to implement the Biotechnology Strategic Development Plan and reviewed its progress to date. The review found that over the past three years, the plan has contributed to strong growth in Victoria’s biotechnology sector. It has contributed to building critical mass in a number of biotechnology areas, boosted Victoria’s international reputation as a centre for biotechnology, provided vital new infrastructure and positioned Victoria as an attractive location for biotechnology investors. An updated Plan for 20072010 will be released in the second half of 2007 to build on this record and continue the successful collaboration between government, industry and the research community. The Victorian life sciences industry had a very successful year, growing by 20 per cent over 2006-07. Victoria’s publicly listed life sciences sector is now valued at more than $19.7 billion. Over the last three years, Victoria’s biotechnology companies have secured deals worth more than $4 billion, including partnerships with some of the world’s biggest pharmaceutical and agricultural companies. Victorian researchers have also established major new international collaborations with leading research institutes and global biotechnology companies such as the J Craig Venter Institute and Genentech. Moving from the scientific to the cultural, film and television production in Victoria also enjoyed a successful year. Film Victoria provides grants, investment and cash-flow facilities to secure Victorian-based productions and skill development. The estimated minimum film and television production spend in Victoria was $144.9 million in 200607, which was an 8 per cent increase over the previous financial year ($134.4 million). Film Victoria leveraged $93.8 million worth of production expenditure, or 65 per cent of total expenditure. Projects filmed in 2006-07 include the 25

DEVELOPING INNOVATIVE INDUSTRIES (CONTINUED)

multimillion dollar feature film Where the Wild Things Are, the telemovie The King and the ABC miniseries Bastard Boys. Projects released during the year include the movies Romulus, My Father and Noise, and the ABC TV series Carbon Cops. A number of projects committed to during 2006-07 will move into production over 2007-08, including Mary and Max, the first feature from Academy Award® winner Adam Elliot, and The Pacific, the largest TV mini-series ever made, produced by Academy Award® winners Steven Spielberg and Tom Hanks. Other film and television developments included the establishment of a new TV pilot initiative through Film Victoria, increased investment in Victorian

children’s and adult drama television projects and the continued support of digital media activity through the Digital Media Fund Program, and the Melbourne International Film Festival. Key strategy: Grow and develop the indigenous business sector DIIRD continues to support, grow and develop a sustainable Indigenous Victorian business sector through the provision of targeted support services and programs for existing and potential Indigenous businesses. The Koori Business Network (KBN) assists Indigenous business development through the implementation of the Building the Economic Base: Indigenous Economic Development Strategy.

26 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

As part of this strategy, KBN hosted Victoria’s first Indigenous Economic Development Conference in April 2007. The conference attracted over 260 domestic and international delegates who shared perspectives, listened to keynote speakers and exchanged business ideas. The Indigenous Business Directory was also launched during the year. The Directory is a useful resource that aims to promote Indigenous enterprises and facilitate the development of business networks. KBN continues to focus on building Indigenous business capacity through training, networking and the development of whole-of-Government partnerships to address Indigenous economic disadvantage.

ct oje pr k ar nd …” dm rou obs lan a l j is ate ca th cre lo “… ill new w 0 60

TRADITION, INNOVATION, BIG SHIP BUILDING AND NEW JOBS AHOY

Victorian ship building company Tenix won the contract to construct the biggest navy ships ever built in Australia at the Williamstown shipyard. The amphibious Landing Helicopter Dock ship will be 230 metres in length, 27,831 tonnes (full load displacement), and have around 5000 square metres of flight deck. With more than $500 million of high-end manufacturing, design, consolidation and systems integration work, this landmark project will create around 600 new local jobs and take the shipyard workforce to 1,600 for the next 10 years. Tenix is partnering with Spanish shipbuilder, Brabantia, for the project. DIIRD and Tenix worked in partnership to run a successful campaign to win the project for Victoria. The Government supported the bid by providing funding to modify the shipyard to accommodate larger hulls, and committed to training Tenix’s workforce to meet the skills needed for this specialised technical project. This support and facilitation reflect DIIRD’s key commitments to create new, quality jobs, provide skills training and foster innovative industries in Victoria. The new contract has many additional economic, employment and community benefits. It will boost the 500 Victorian businesses that have over 4,000 employees who will undertake support work for the project. Victoria’s naval shipbuilding and repair (NSR) work already accounts for 40 per cent of the national NSR industry and 60 per cent of sector exports. This project, combined with NSR work and Tenix’s growth in commercial and export orders, will generate more than $1 billion for Victoria from 2008 to 2017. It will also see Williamstown continue a proud tradition of producing some of the best naval vessels ever assembled in Australia.

T R D EG EV I EL ON O AL PM EN

04 The region comes to the city; Event Studios Australia, based in Warragul, is a company that provides studios for corporate events. Last year, the company participated in the Explorer Workshop, which is part of the â&#x20AC;&#x2DC;Regional Technology Commercialisation Programâ&#x20AC;&#x2122;. Manager of Event Studios Australia, Adrian Eastwood (right) is pictured here with Carla Montori, Program Manager Regional Development Victoria, and Mervyn Moon, Gippsland Business Development Officer, Regional Development Victoria, based in the Traralgon Victorian Business Centre. 28 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

REGIONAL DEVELOPMENT

Strategic Objective: To ensure sustained economic and industry development of provincial Victoria. Regional Victoria is a great place to live, work, visit and invest. Regional Development Victoria (RDV) continued to widely promote the comparative advantages and attributes of regional Victoria throughout 2006-07, and facilitated strategic infrastructure projects that contribute to economic and population growth. RDV continued to deliver the Make It Happen in Provincial Victoria campaign. In conjunction with the state’s 48 rural and regional councils, it supported local events driving economic growth through programs such as the Sponsorship and Events Program, and delivered the $502 million action plan for growth: Moving Forward. Regional Development Victoria’s Chief Executive chaired the Regional Development Advisory Committee which plays an important role in advising the Minister for Regional and Rural Victoria on matters of economic development including population growth. For many parts of regional Victoria, 2006-07 was a difficult year. Residents and businesses endured drought and battled devastating bushfires. RDV took the lead role across Government in developing a bushfire recovery package which delivered over $138 million of initiatives for business, community and environmental recovery. The package had a particular focus on positioning fireaffected communities for future growth. RDV also delivered a number of programs as part of the Victorian Government’s $146 million droughtassistance package for farmers, businesses and communities. RDV made $10 million available through the Water for Industry initiative for regional water authorities and councils that could demonstrate innovative water projects that increase the security and availability of water supply. RDV also allocated a further $5 million to the Small Towns Development Fund for innovative water projects in small

towns, along with a number of other priority projects outlined in Moving Forward. RDV also provided the $1.5 million Business Continuity Program which offered one-on-one business counselling to non-farm businesses significantly affected by the drought, and held a series of information events in regional municipalities.

Victoria and stimulates economic development. In 2006-07, DIIRD’s Regional Infrastructure Development Fund (RIDF) financed key capital works that supported industry development, improved critical transport linkages and tourism infrastructure, and established new opportunities in education and information technology.

Assistance of more than $60 million for recovery from the Gippsland flood was announced by the Government in July 2007.

Throughout the year, 26 RIDF projects were announced and 104 Small Towns Development Fund projects were financed. The $70 million RIDF Natural Gas Extension Program continued, and saw the extension of the natural gas network to households and businesses in 34 towns across country Victoria. This project, which is one of the largest gas infrastructure projects undertaken outside Melbourne in more than a decade, highlights the significant economic benefits of regional infrastructure projects.

Despite the many social and economic challenges presented by drought, bushfires and flood, regional Victoria showed great resilience and continued to enjoy population and economic growth. Key strategy: Develop and facilitate investment in provincial Victoria Throughout the year, RDV facilitated 2,195 new jobs, $276.7 million in exports from investment and $1.5 billion in additional investment in provincial Victoria. DIIRD’s programs and services attracted investment, increased the viability and sustainability of regional enterprises, encouraged international competitiveness and enabled local firms to develop export industries. RDV’s role in helping to secure Unilever’s continued presence in Victoria provides a practical example of the benefits of facilitating investment in Victoria. In 2006-07 Unilever agreed to relocate its Dandenong-based dry goods operations to Tatura, instead of Thailand. The move resulted in the establishment of an expanded Unilever plant in Tatura, with an investment of $58 million and the creation of 134 jobs over five years. The investment and expansion was facilitated by the Victorian Government’s Regional Industry Investment Program, and enabled Unilever to position the factory locally while accommodating for future growth in the Asia-Pacific region. Key strategy: Facilitate infrastructure projects that contribute to economic growth in provincial Victoria Infrastructure investment expands the competitive capacity of provincial

By May 2007, energy company SP AusNet laid more than 40,000 metres of mains and provided access to natural gas to around 80 cent of Port Fairy residents and businesses. The project enabled Port Fairy’s largest employer, pharmaceutical manufacturer GlaxoSmithKline (GSK), to achieve significant savings as a result of converting from LPG to natural gas. After the conversion, GSK announced a $20 million expansion to its local alkaloids manufacturing facility. This is just one example of how reducing business costs can create a platform to enable businesses to invest and grow in provincial Victoria. Key strategy: Increase the population of provincial Victoria In 2006-07 RDV continued to focus on encouraging population growth in regional areas through the Make It Happen in Provincial Victoria campaign, in partnership with the state’s 48 rural and regional councils. The extended campaign targeted business investment for the first time through the successful Make Your Business Happen in Provincial Victoria marketing campaign. RDV also worked with a number of Government agencies, including Tourism Victoria, the Department of Human Services, the Country

REGIONAL DEVELOPMENT (CONTINUED)

Fire Authority, the Department of Sustainability and Environment and the Office of the Emergency Services Commissioner to produce a one hour television program to encourage people to visit regional areas following the summer bushfires. The program Ready for Business â&#x20AC;&#x201C; Victoria after the Fires aired across Victoria in late March in the run-up to the Easter holiday season, and aimed to remind holiday makers that bushfireaffected areas were recovering and needed support from all Victorians through tourism. RDV supported this program, recognising the economic importance of tourism to regional economies. Visiting regional areas also encourages people to reflect on the potential benefits and advantages of relocating and living outside metropolitan areas. Key strategy: Increase the number of innovative enterprises in provincial Victoria Innovation is an essential component of business growth, expansion and

development. RDV delivered programs and initiatives to encourage innovative enterprises across the state. RDV staff located at Victorian Business Centres at eight locations across provincial Victoria provided business information and referral services to help start and grow businesses. RDV program managers delivered programs directed at creating growing innovative enterprises. For example, RDV managed a whole-of-Victorian Government process to develop a comprehensive innovation road map to help Victorian earth resources firms: The Innovation Road Map for Victoriaâ&#x20AC;&#x2122;s Earth Resources. This initiative helps resource firms identify future technology needs, make informed investment decisions and compete successfully for research and development funds. RDV also worked in partnership with industry to encourage companies to invest in new biofuels. Launched in April 2007, the Road Map and Action Plan for the Development of the Victorian Biofuels Industry was developed under a Moving Forward initiative, and set a target of

In December 2006, Minister Brumby announced a CRISP II grant of $40,000 to assist Blackwell IXL Automotive Products undertake a $580,000 expansion which will create 20 jobs at its South Geelong facility.

04 30 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

5 per cent of biofuels to be used in industry transport by 2010. The initiative encourages investment and jobs to regional Victoria and positions RDV as the leading Victorian Government agency in the field of biofuels policy and industry development. RDV staff also delivered the Community Regional Innovation Skills Program (CRISP) and the Regional Innovation Clusters Program (RICP), which aim to increase the number of innovative enterprises in provincial Victoria. RDV worked with Best Bottlers on the expansion of its Mildura bottling plant that would enable it to become the first company in the southern hemisphere to provide wine in carton-based Tetra Pak packaging. A RICP research grant will enable the Geelong Manufacturing Council to scope the potential for a research and development-based manufacturing cluster and identify specific projects that can help improve the competitive advantage and profitability of up to 100 Geelong manufacturers.

Y D U ST SE A C “R Vi egio vi cto na an sito ria l an d rs ha d in , r s ru ve es m ra st ide uc l or s.” nts h to ,b o us ffe in r es s

MAKE IT HAPPEN IN PROVINCIAL VICTORIA Regional and rural Victoria has much to offer visitors, residents, business and investors. This was a key theme throughout the year, and a $2.2 million campaign to encourage greater investment in provincial Victoria was launched in August 2006. The Make Your Business Happen in Provincial Victoria campaign, developed in partnership with the state’s 48 rural and regional councils, is an extension of the successful Make It Happen in Provincial Victoria campaign. The campaign highlights the benefits of living, working and investing in provincial Victoria, and showcases the myriad of business and investment opportunities on offer. The Make It Happen campaign features engaging advertising to raise awareness of the many attractions, events and employment and investment opportunities in provincial Victoria. It also includes a grants program designed to assist provincial councils to capitalise on the increasing interest in their regions. This campaign has encouraged greater cooperation between a number of provincial councils, with many combining their efforts and finances to attract more people and investment from Melbourne. The Sponsorships and Events Program which is linked to the Make It Happen in Provincial Victoria campaign provides funding for local and regional events that showcase the liveability of provincial Victoria to people outside the region, particularly Melbourne. In 2006-07 the Victorian Government announced sponsorship support for the largest childrens’ festival in the southern hemisphere, Fun4Kinds. Funding through RDV’s Key Regional Events Program enabled the organisers to add a number of new initiatives to the 2007 festival to help position it as an iconic, internationally acclaimed event. The new initiatives to be implemented over two years, include street theatre and roving performers, roundabout and streetlight banners, and shop-front display kits for traders. The Fun4Kids Festival was established in 1998 and has become a hugely successful event, attracting 34,000 visitors to the Warrnambool region, contributing $2.16 million to the local economy.

Manager Food and Wine Tourism, Astrid Adamson works with a broad range of stakeholder groups to promote the sector. At Hanging Rock Winery in Newham, she met with John Ellis, Winemaker and Chairman of Victoriaâ&#x20AC;&#x2122;s Food and Wine Tourism Council.

G IN ET A K I R R A TO M IC V

32 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

MARKETING VICTORIA

direct international flights to Melbourne Strategic objective: To effectively market Victoria is crucial to tourism success. in a global economy Tourism Victoria worked on a number of Beaches and snow-capped mountains, quirky cafes and laneway bars, wonderful wines and worldclass cuisine, major sporting events, museums, galleries, gardens and festivals galore - these are just some of the many Victorian attractions that have contributed to tourism growth figures almost double the national average over the past decade. The Victorian Government released its ten-year Tourism and Events Industry Strategy in October 2006. The strategy details a proactive plan to grow tourism to an $18 billion industry employing 225,000 Victorians by 2016. The comprehensive strategy was developed by DIIRD in partnership with the tourism industry, and outlines a new vision, direction and marketing approach designed to stimulate and support Victorian tourism over the next decade. The Tourism and Events Industry Strategy sets out measures to be implemented in 14 key areas, from building existing strengths in branding and marketing, to focusing on longterm growth opportunities such as emerging international markets and regional destination development. Key strategy: Position Victoria as a distinct, competitive and fair business, tourist and exporter destination The holiday sector is Victoria’s largest source of tourism, with international and interstate visitors accounting for one third of visitor numbers and two thirds of expenditure. Increasing lengths of stays for international visitors and higher spends per night by interstate visitors have been key drivers of Victoria’s recent growth in visitor expenditure. Seventy per cent of Victoria’s tourism growth is forecast to come from international markets over the next decade, so increasing the number of

air service developments during 200607 that will have a positive long-term impact on Victoria’s aviation and tourism performance. Key highlights include: • the launch of Jetstar International services from Melbourne to Honolulu and Bangkok • an increase in weekly services by China Eastern Airlines over the Chinese New Year, resulting in a record number of Chinese visitors • Indian Airlines’ announcement to offer flights from India to Melbourne from December 2007 •Qantas’ decision to operate twiceweekly Melbourne-Shanghai services from March 2008. In domestic developments, Singaporebased Tiger Airways agreed to base its Australian operations in Melbourne, providing a significant increase in lowcost fares to and from Victoria. Services are due to commence from Melbourne Airport in late 2007 and will create an additional 1,000 local jobs. Key strategy: Promote and market Victoria nationally and internationally Tourism Victoria’s national and international marketing activities, combined with increased flights into Victoria, contributed to an increase in international visitor numbers by 8 per cent for the year ending March 2007. There were 1.5 million international tourist arrivals to Victoria in this period, with international visitor expenditure increasing by 17.2 per cent to $2.9 billion. Victoria’s strong tourism performance is the result of a sophisticated marketing approach that has turned the state’s unique tourism experiences into key strengths. Victorian tourism is characterised by cosmopolitan cultural attractions, natural beauty, a world-class major events calendar and amazing food and wine experiences.

Capitalising on the momentum gained from the 2006 Melbourne Commonwealth Games, Tourism Victoria launched the latest phase of the successful ‘jigsaw’ campaign. The jigsaw campaign features the tagline ‘You’ll love every piece of Victoria’, and highlights the many diverse offerings of rural, regional and metropolitan Victoria. The new It’s Easy to Lose Yourself in Melbourne campaign was launched in September 2006. The campaign promotes the city as a home of hidden treasures and invites visitors on a tempting journey of discovery. It emphasises Melbourne’s depth, diversity and difference by focusing on the city’s precincts, people, arcades and laneways, boutiques, galleries, fine food and wine, arts, culture and architecture. The campaign received numerous prestigious industry awards, including best in show, best film direction and best 45-second TV commercial at the Melbourne Advertising and Design Club Awards in June 2007. In a first for Australian government tourism marketing, Tourism Victoria launched The Red Thread at www.visitvictoria.com/redthread in June 2007. The Red Thread is the innovative online component of the new Melbourne campaign, and allows visitors to upload comments on and photos or videos of their experiences in Melbourne. This is the first major foray into user-generated content by any Australian tourism authority. The Red Thread builds on Tourism Victoria’s successful, creative online strategies. Tourism Victoria is recognised as a national leader in online strategy and its websites have consistently outperformed all other state tourism websites. The website www.visitvictoria.com was named the best performing government website for the third consecutive year, and attracted more than 5.2 million visits in 2006-07. This represents an increase of 13 per cent on the previous year.

MARKETING VICTORIA (CONTINUED)

Key strategy: Support and develop events for Victoria to maximise economic and tourism benefits Victoria is renowned for its major sporting and cultural events, which attract local, national and international attention and recognition. The state draws more than 230,000 international major event visitors per year, or 42 per cent of all event visitors to Australia. Major events generate an estimated annual economic impact of $1 billion,

and Tourism Victoria’s events program continues to increase the number of visitors to Melbourne and regional Victoria. Business events are also an important part of Victoria’s tourism industry, and currently generate around nine per cent of Victoria’s total tourism revenues. During 2006–07, Victoria secured 98 business events for the state through the Melbourne Convention and Visitors Bureau. Melbourne’s new 5,000-seat

34 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Convention Centre, scheduled to open in 2009, will foster business tourism growth. Upcoming events include the 2010 International Congress of Parasitology (2,000 delegates), the 2010 Congress of the Federation of Asian and Oceania Biochemists and Molecular Biologists (1,500 delegates) and the 2010 International Conference of the International Union of Biochemistry and Molecular Biology (2,000 delegates).

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The Premier, Steve Bracks (left) announced the establishment of Tiger Airways’ Australian office in Melbourne, supported by Minister for Industry and State Development, Theo Theophanous (centre) and CEO Tiger Airways, Tony Davis.

TIGER TRAVELS TO MELBOURNE Low-cost airlines have opened up a new world of opportunities for travellers in recent years. Interstate and international travel is cheaper than ever before and holidaymakers are making the most of airline price wars and bargain fares. This trend is set to continue, with new low cost fares and flight routes soon to become available. Following a highly competitive process involving all states and territories, Victoria won the right to host Australia’s newest low-cost airline, Singapore-based Tiger Airways, in 2007. The establishment of the Australian head office in Melbourne will create more than 1,000 local direct and indirect jobs, provide extra air services to Victorians and boost domestic and international visitor numbers. Victoria’s firstclass aviation infrastructure at Melbourne Airport, the state’s skilled workforce and an innovative approach to tourism marketing and major events were all determining factors in Victoria’s success in securing Tiger Airways. Tourism Victoria will work with Tiger Airways and Melbourne Airport on cooperative and creative marketing campaigns on an ongoing basis. In its start-up phase in late 2007, Tiger Airways will generate over 2 million passenger movements, with the majority being stimulated by affordable travel. As a result, local, interstate and international visitors can enjoy the many rewarding experiences of travel, with less to spend on flights and more to spend on memorable holiday adventures.

S SK V IL IC L T ED O R IA N

06 36 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

SKILLED VICTORIANS

Training and tertiary education in Victoria – a snapshot Programs and services Education and training programs and services are delivered to the Victorian community through a range of organisations, including: • 18 TAFE institutions • 9 public universities • 57 approved private higher education providers • 1,285 registered providers of Vocational and Educational Training (VET) including 118 schools involved with VET programs • 16 industry training advisory bodies. The education and skills training provided through these organisations includes: • entry and certificate-level training • apprenticeships and traineeships • basic literacy and numeracy courses • advanced vocational training, including training for paraprofessionals • undergraduate and postgraduate degrees. TAFE institutions and training • In 2006, government-funded delivery combined with the fee-for-service activity of adult and community education (ACE) providers and TAFE institutions provided 497,000 students with 116.1 million student contact hours of training and further education.

• TAFE institutions delivered 63.9 million of all government-funded student contact hours, with the remainder being delivered by ACE providers and private registered training organisations. • TAFE institutions and ACE organisations also delivered 17.2 million and 2.4 million student contact hours respectively of fee-for-service vocational and further education. • TAFE institutions and ACE organisations delivered a further 7.1 million student contact hours to full fee-paying overseas students in Australia and 4.4 million student contact hours in overseas locations. Apprenticeships and traineeships • As at 30 June 2007, the overall number of apprentices and trainees training in Victoria was 123,084. Of these, 96,354 received a governmentfunded training place. • 73,379 apprentices and trainees commenced training during 2006– 07. Of these, 58,125 received a government-funded training place. • There were 45,113 apprenticeship and traineeship completions in 2006-07. Of these 31,987 apprentices and trainees had government-funded training places. Higher level VET qualifications • In 2006, there were 71, 248 enrolments in higher level VET qualifications in Victoria - 52,012 enrolments were at the Diploma level and 19,236 were at

the Advanced Diploma level. • TAFE institutions accounted for the majority of enrolments, with 68,392 occurring within TAFE institutions. • Enrolments in private registered training organisations and ACE providers at higher levels accounted for 4 per cent of total higher level VET enrolments in 2006. Higher education • In 2005, 242,951 students were enrolled in public universities and private institutions eligible for government funding in Victoria. • 242,305 (99.73 per cent) of these students were enrolled in a Victorian public university and 646 (0.27 per cent) were enrolled in a private institution. • 167,986 undergraduates and 71,650 postgraduates were enrolled in total. • Preliminary data for the first half of 2006 indicates that the total number of students enrolled in public universities and private institutions in Victoria was 222,771. Mature age participants • In 2006, 185,761 mature-age participants (persons aged 25-64 years) undertook government-funded vocational education and training in Victoria. • 111,583 attended TAFE Institutions, 51,496 undertook VET through ACE providers, and private registered training organisations accounted for 22,682 of publicly funded students.

Portfolio Manager, Training Operation, Flic Purdie works with institutions to purchase high-priority vocational education and training. Flic met with laboratory studies student, Jo-Ann Kellan and Executive Manager at Box Hill Institute of TAFE, Stephen O’Sullivan at the DNA Laboratory in Box Hill. Box Hill Institute of TAFE won the Education Award in the Governor of Victoria Export Awards, presented by the Minister for Manufacturing & Export, André Haermeyer in October 2006. 37

SKILLED VICTORIANS (CONTINUED)

Strategic objective: To help maintain Victoria’s strong economy by building a highly skilled workforce, increasing participation and providing opportunities for individuals through the training system. DIIRD is committed to building a highly skilled workforce that underpins a strong economy, facilitates business growth and contributes to our communities. Providing innovative and accessible education and training opportunities to Victorians of all ages is a key part of this commitment. Following the November 2006 State election, machinery-of-government changes saw higher education and vocational education training functions transferred from the former Department of Education and Training to the Department of Innovation, Industry and Regional Development. The Office of Training and Tertiary Education (OTTE) is now part of DIIRD, and provides strategic leadership and support in the areas of Vocational Education and Training (VET) and higher education.

establishment of Technical Education Centres (TECs). The Guaranteed Place in TAFE or other Public Providers program is aimed at improving pathways for young people aged under 20 years of age, who haven’t completed Year 12 or equivalent vocational studies. Under the scheme, young people are guaranteed a place at a TAFE or other public training provider, and providers are expected to make places available to young people as a priority. Normal vocational education and training tuition fees apply. Funding of $32 million has been provided for the establishment and construction of four TECs to be located in Berwick, Wangaratta, Ballarat and Heidelberg. These centres will help create practical pathways to employment or future training for 16 to 20 year olds who have not completed Year 12 or equivalent. Based in TAFE institutions, the centres will provide access to TAFE expertise and offer simulated work environments and strong links with local industry.

VET offers opportunities to young people entering the labour market through apprenticeships and traineeships, and enables older people to update their skills and build on their knowledge. Victoria’s VET system has the highest participation rate of any state, and it continues to grow. In 2006, government-funded delivery accounted for over 81.1 million student contact hours of training and further education. OTTE continues to implement programs and initiatives that foster this growth and encourage Victorians to gain new skills, abilities and qualifications.

The Apprenticeship/Traineeship Training Program provides funding for private registered training organisations to train apprentices and trainees. The program provides participants with practical employment and formal training towards a nationally recognised qualification. In 2006, over 22,000 apprenticeship and traineeship training places were commenced at 223 private registered training organisations. In 2007, 218 private registered training organisations have been selected to provide training to over 22,000 apprentices and trainees, including Jobs for Young People placements in local government.

Key strategy: Starting earlier to provide more opportunities for young people to participate in VET while still at school or in TAFE The 2006 skills statement, Maintaining the Advantage: Skilled Victorians, includes funding of $93 million over four years for a broad range of programs designed to assist young people to get the skills they need for today’s workforce. Initiatives include the Guaranteed Place in TAFE or other Public Providers program for young people, additional funding for pre-apprenticeship places and the

Key strategy: Provide more opportunities for Victorians of all ages to upgrade their skills to meet the needs of industry The Learning Longer concept refers to ongoing learning and discovery for people of all age groups, to stimulate thought, build skills and find new areas of interest and opportunity. The skills statement includes a range of initiatives that aim to help Victorians learn longer. Key initiatives include an investment of $10.88 million over four years to fund 1,800 places for 35-64 year olds to access Certificate III level training

38 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

and above, and $2 million for the introduction of Industry Skills Advisers (ISAs) in high priority areas. Advisers ISAs will provide practical advice for students and job seekers, build relationships between businesses, industry associations and training organisations, and develop better training opportunities for Victorian workers. Key strategy: Lifting workforce participation by providing greater opportunities through the training system for adults without qualifications Victoria’s VET adult participation rate remains higher than that of any other state, as a percentage of the population. The number of adults aged 25 to 64 years participating in VET has ranged between 260,000 and 300,000 for the last five years. While the number of participants has decreased from 2004, students are now undertaking courses of longer duration. Providers across the state training system continue to develop training and employment opportunities for disadvantaged groups and create pathways for re-entrance to the workforce. For instance, Skill Up is a rapid-response program to retrain and support workers of all ages who are made redundant due to major industry downturns or workplace closures. Recipients are funded for an average of 80 hours training and are exempt from normal tuition fees. The program is delivered by public and private providers in metropolitan Melbourne and regional Victoria, and is designed to improve workers’ employment prospects at a practical level. Key strategy: Getting smarter to meet changing industry needs by lifting the skills and qualification levels of Victorians to provide business with a more highly skilled workforce DIIRD is responding to changing industry needs by providing programs and funding to lift the skills and qualification levels of Victorians and foster a more highly skilled and adaptable workforce. The skills statement has a number of initiatives to support higher level skills, including $42 million over four years to fund an additional 3,500 VET places in higher

level qualifications in key occupations and industries. In 2006-07, three specialist skills networks were established in the key areas of competitive manufacturing, energy and transport, and distribution and logistics. Specialist centres and networks create closer cooperation between training and industry, encourage diversification and provide added value to existing training programs and services. State and national specialist VET networks will continue to be established to expand training delivery across industries and enterprises in areas of skills shortage. In January 2007 the Minister for Skills commissioned a study to identify the projected unmet industry demand for university graduates and the impact of this on the Victorian economy. The study will inform assessment of adjustments that need to be made to Victoria’s higher education course profile to avoid graduate undersupply and oversupply. Key strategy: Making it easier for individuals and employers to access information about training options The Department aims to ensure every Victorian can increase their employment opportunities through accessible qualifications and skills training. The

skills statement includes a number of initiatives to make it easier for people of different ages, skill sets and geographic locations to access relevant training opportunities and options. The establishment of Skills Stores and the employment of additional Apprenticeship Field Officers have improved access to relevant information and advice on training, education and employment for all Victorians. Skills Stores provide people with tailored advice about their particular education and training options, along with referrals to registered training organisations for formal assessment against a nationally recognised qualification. Skills Stores also assist employers to identify the training employees need to undertake, and provide school careers advisers with training-related information. Five Skills Stores opened in June 2007, and eight more will be established over the next three years. In all, nine will be in regional Victoria. Services will be available through education providers, shopping centres and mobile units. Key strategy: to develop skills for the innovation economy The contemporary economy is characterised by the rapid growth of knowledge-based industries, extraordinary technological advances, sophisticated consumer demand, a

growing services sector, and increasing national and international competition. To meet the demands and challenges that this environment brings, Victoria needs a flexible, responsive and highly skilled workforce. The Innovation Fund was established to enable TAFE institutions to trial new initiatives in innovation and flexible delivery to meet the needs of students, workers, business and industry. Funding of $3.7 million for 42 initiatives was incorporated into TAFE Performance Agreements for 2006, and included projects to shift training delivery from low to high priority areas and develop workforce training for existing workers. A $4.3 million for 37 initiatives was included in TAFE Performance Agreements for 2007. Key strategy: Oversee the regulation and accreditation of Victorian VET and higher education institutions In 2006–07, OTTE undertook the following functions on behalf of the Victorian Qualifications Authority: • registered training organisations to deliver nationally recognised training • approved training organisations to provide courses to overseas students • monitored the ongoing performance of training organisations • undertook annual reviews of Victoria’s performance and delivery

Minister for Skills, Education Services and Employment Jacinta Allan, attended the state-wide launch of the Skills Store initiative at Tenix Defence Pty Ltd at Williamstown. Craig Metcalf (left), was recipient for the first Skills Store grant for recognition of prior learning. Craig was photographed with Jacinta Allan, Minister for Skills, Education Services and Employment and Peter Black, General Manager Marketing Tenix Defence.

06 39

SKILLED VICTORIANS (CONTINUED)

of services in accordance with the Commonwealth–States Agreement. OTTE monitors VET in Victoria to ensure high standards of delivery. Quality assurance is monitored using the Australian Quality Training Framework Standards to register and monitor the performance of training organisations. The Framework was reviewed during the year, with the aim of reducing the regulatory burden, standardising processes for national consistency and ensuring continuous improvement of training and assessment. The revised Framework became effective on 1 July 2007. Regulation During 2006-07, OTTE was responsible for the regulation of public universities and all higher education providers in Victoria. Regulation responsibilities include the development and implementation of legislation for public universities and private providers, the use of legislation to ensure the compliance of public universities and the regulation of private provider facilities and courses. Key national regulatory documents were reviewed and revised during the year. The National Protocols for Higher Education Approval Processes was subject to continued revision on behalf of the Joint Committee on Higher Education. The National Protocols are designed to ensure that standards around universities, overseas higher education institutions and higher education courses are consistent and appropriately regulated. The revised National Protocols were endorsed by the Ministerial Council on Education, Employment, Training and Youth Affairs in July 2006 and will come into effect at the end of 2007. The National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students was also revised during 2006-07. The National Code aims to ensure that the conduct of providers of higher education courses and the courses themselves are subject to nationally consistent standards of regulation. The revised National Code was implemented on 1 July 2007. Accreditation Public universities and private providers offer higher education degrees in Victoria. Universities provide the

majority of higher education programs and, as self-accrediting institutions, are not subject to external accreditation. In 2007, approximately 57 authorised private providers offering a total of 362 higher education courses were subject to external accreditation. During this time: • 4 new providers were approved to offer 15 new programs • 8 previously established providers were approved to offer 14 new programs • 5 established providers submitted successful re-approval applications • 5 interstate universities were endorsed to deliver 60 courses to overseas students in Victoria • 5 TAFE Institutes were approved to offer 30 higher education programs. University governance Accountability for ensuring the effective governance of public universities rests with the State Government, which is responsible for Acts that establish universities. The Department coordinates the preparation and tabling of each university’s annual report in the Victorian Parliament. The Annual Reports for 2006 show the net worth of Victorian public universities increasing by 9.5 per cent to just over $8.8 billion. Sixteen appointments to university councils were made in the annual report period. Asset management The TAFE asset portfolio is made up of over 1,055 buildings worth approximately $2.1 billion. The age of the asset portfolio ranges from new to over 100 years old. The average age of the building stock is approximately 22 years. The ongoing property management program deals with asset disposals declared surplus by TAFE institutions, and property acquisitions where government determines that a need exists to expand the TAFE system. In 2006-2007, major capital developments were completed at the Gordon and Chisholm Institutes of TAFE and at Ballarat and Victoria Universities TAFE Divisions. Major works were also completed at the new Kangan Batman Institute of TAFE Automotive Centre of Excellence at Docklands Campus. Two of the more notable land disposals include former TAFE campuses at Avondale Heights and at Collingwood, and a land acquisition was secured in

40 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Elgar Road, Box Hill, adjacent to Box Hill Institute of TAFE. In 2006–07, the following capital works projects funded by the Victorian Government were completed: • refurbishment of the former Noble Park campus of Chisholm Institute of TAFE for use as a new teaching centre for Adult Multicultural Education Services • the University of Ballarat Building and Construction Training Centre at the School of Mines campus • the extension to the Building and Construction Centre at the East Geelong campus of the Gordon Institute of TAFE • stage one of the Automotive Centre of Excellence at Docklands for the Kangan Batman Institute of TAFE. Stage three development of the Warrnambool Campus of South West Institute of TAFE and the Sustainability and Land Management Centre at Swinburne University of Technology (TAFE Division) were funded by the Victorian Government and construction began during the year.

Y D U ST SE A C “… $3 es 2 m Te tab illi Ce ch lish on nt nic m for re al en th s… E t e ” duc of fo at u io r n

TECHNICAL EDUCATION CENTRES AND NEW OPPORTUNITIES FOR VICTORIAN STUDENTS As part of the 2006 skills statement, Maintaining the Advantage: Skilled Victorians, the Victorian Government committed funding of $32 million for the establishment and construction of four Technical Education Centres (TECs) in Berwick, Wangaratta, Ballarat and Heidelberg. Each TEC will be based in a TAFE institution, in purpose-built, hightech, industry-standard facilities with strong links to industry. TECs will offer Victorian students the opportunity to undertake a broad range of applied learning programs, targeted to priority industry needs, as part of their senior secondary education. Programs will include pre-apprenticeships, apprenticeships, the Victorian Certificate of Applied Learning and vocational components of the VCE. Programs began at Berwick and Wangaratta in temporary facilities in 2007, and new purpose-built TEC buildings will be completed in Ballarat by 30 June 2008, Berwick by 31 July 2008, Wangaratta by 31 January 2009 and Heidelberg by 30 June 2009.

Multimedia Victoria provided support to the National ICT Australia (NICTA) Victoria Research Laboratory in Parkville for its advanced technology research. MMV Assistant Director, ICT Investment and Business Development Anthony Oâ&#x20AC;&#x2122;Shea met with Prof Thas Nirmalathas from NICTA at the lab in Parkville to see the latest developments.

IN T EC IA N R N O O T C IC V

42 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

CONNECTING VICTORIA

Strategic objective: To deliver an innovative, accessible information and communication technology environment that drives economic growth Rapid technological advances have changed the way we live, work, shop, do business and communicate with each other. The internet, mobile phones, MP3 players, electronic organisers, emails and text messages have all become part of our everyday lives in ways that could not have been imagined just ten years ago. DIIRD recognises the importance of these developments and the potential information technology has to drive social and economic growth, expansion and development. Multimedia Victoria, which became part of DIIRD in December 2006, plays a key role in working with industry to support and promote Victoria’s Information and Communication Technology (ICT) sector and drive technological innovation across the economy. Multimedia Victoria develops strategic initiatives to foster the development and uptake of new technologies, supports a highly skilled ICT workforce, facilitates international ICT investment and contributes to a strong, globally focused local ICT industry. Key strategy: Implement a strategic approach to broadband telecommunications, as outlined in the Broadband Framework Broadband was the subject of much debate at that national level throughout 2006-07, with both the Federal Government and the Federal Opposition developing and promoting major broadband policies. This reflects the crucial role broadband will have for Australian consumers, businesses and the economy into the future. Multimedia Victoria recognises this, and played a key role in advocating Victoria’s broadband needs to the Federal Government, working to maximise outcomes for Victoria through the $3.1 billion Connect Australia package, the Broadband Blueprint and Australia Connected. At a state level, the Broadband Innovation Fund (BIF) was the key focus of the Victorian Government’s Broadband Framework. This $15 million

funding pool is designed to support the innovative use of broadband technologies in delivering public services, including health, education, primary industries and management of the environment. These projects serve a dual purpose: they enhance infrastructure and services, while improving community access to broadband in regional areas. Seven unique projects have been developed through the Fund since it began in 2003. In late 2006, the Hume Regional Broadband Digital Imaging project became the first of the Fund’s projects to be completed. As a result, seven public hospitals are now linked across nine sites using advanced broadband, allowing doctors and specialists to access patient x-rays and confer without having to travel across north-east Victoria. The new $2.25 million Loddon Mallee Health Alliance’s Connecting Clients to Care project commenced in 2005-06, and enables patients suffering from chronic heart failure, chronic obstructive pulmonary disease, asthma and diabetes to receive essential medical treatment at home. Patients can take their own blood pressure, pulse, heart rate and glucose levels and then enter their data into a remote patient monitoring system, where it is stored and uploaded for access during an online video consultation with a care coordinator. As a result, patients do not need to travel and can receive essential medical advice from the comfort of their own homes. The $6.3 million Spatial Imaging Project also began in late 2006, with the aim of improving Victoria’s ability to manage environmental issues such as water quality and land degradation. Technology similar to that used to create the revolutionary Google Earth mapping application will now be adopted to assist in delivering large amounts of statewide spatial data, including aerial photography and satellite images, over broadband networks. Multimedia Victoria is also investigating viable commercial models which would stimulate increased rollout of high bandwidth broadband in new housing estates. The Aurora Fibre-to-the-Home Pilot Project has delivered nextgeneration broadband services to 8,000 homes in a new Epping housing estate.

Commercial information gathered from this project is available online on Multimedia Victoria’s website at www.mmv.vic.gov.au/broadband. Key strategy: Foster a viable and competitive Victorian ICT industry An innovative local ICT sector delivers financial benefits and improves efficiencies and productivity across the economy. The Victorian Government supports excellence in the local ICT sector through its innovative ICT Industry Plan 2005-2010, and strong industry growth was recorded in 2006-07. Over the past year, the Government directly facilitated the creation of 1,240 new ICT jobs, with the local sector growing by 9.6 per cent, or 7,400 jobs, to employ 83,900 people by June 2007. The state’s ICT revenue for 2006-07 now totals more than $23 billion. Over the same period, Multimedia Victoria attracted $352.2 million in ICT capital investment to the state. Through its ICT Trade Events and Export Assistance Program, the Government has supported 265 grants to 173 Victorian ICT companies over the past 12 months, generating projected exports of $352.2 million. ICT exports for the state now total more than $1 billion per year. Multimedia Victoria also supported innovation and collaboration in the local ICT sector through $20 million in funding for high-end research and development at the National ICT Australia Victoria Research Laboratory. The Government also provided seed funding to set up three new industry clusters in the areas of spatial informatics, e-security and mobile technologies. They join the 10 ICT clusters already established with support from the Victorian Government since 1999. Key strategy: Develop future ICT policy positions and supporting programs DIIRD undertakes comprehensive research to inform its approach to the ever-evolving ICT environment. Multimedia Victoria closely monitors telecommunications access across Victoria and provides detailed information in its annual Spend/Demand Telecommunications Report. This information shapes policy development and discussion on future broadband policies and other key ICT issues. Supply and demand issues for ICT skills 43

CONNECTING VICTORIA (CONTINUED)

are also tracked and published annually in the ICT Skills Snapshot. This report provides the most comprehensive ICT workforce research of its kind commissioned by any Australian Government. Both reports are available online on Multimedia Victoria’s website at www.mmv.vic.gov.au. Securing a skilled and sizeable local ICT workforce is a significant challenge for industry and government. Research confirms that Victoria continues to lead Australia in ICT skills, with the highest proportion of tertiary students enrolled in ICT. Victoria has 34.7 per cent of all Australian enrolments in ICT courses, and is home to the highest number of ICT graduates nationally. However, with the number of ICT jobs reaching record levels, there is some concern that graduate numbers will not meet

escalating demand. To boost Victoria’s ICT workforce, Multimedia Victoria is working proactively with industry and the education sector to deliver a comprehensive suite of scholarships and ICT careers information to young people in Victoria. In the first collaboration of its kind in Australia, the Government has brought together industry associations, businesses and all nine Victorian universities to promote ICT study and careers to deliver the ICT: Start here. Go anywhere campaign. Since the campaign was launched in mid 2006, first preferences for 2007 ICT study in Victoria registered a marginal but encouraging increase of 1.8 per cent, bucking the national trend which remains in steady decline. The campaign will now be adopted

nationally. ICT ministers from across the country agreed to adopt ICT: Start here. Go anywhere as the national brand for ICT careers promotion at the annual Online and Communications Council meeting in June 2007. The campaign is supported by more than $2 million in funding for scholarships and work placements to promising ICT students. Currently, 41 students have received scholarships and industry-based learning opportunities through the program. An additional 19 scholarship recipients from across five universities are sharing $1.1 million over the duration of their fulltime Masters or PhD research courses to boost Victoria’s research capacity in priority ICT areas.

Victorian ICT solutions provider, Yellowfin International, secured a major software distribution agreement with Japan’s Kyocera Maruzen Systems Integration. The companies met at Victorian Government’s ICT Trade Mission to Japan in April 2007. Pictured are: Glen Rabie, Yellowfin (left); Minister for Information and Communication Technology, Tim Holding; and Mr Kitamura, Kyocera Maruzen Systems Integration.

44 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

d an w db ho roa dy s.” of g b lrea ive e l pl kin e a an am rea s ar tori ex b e d- ion Vic on oun cat ng “… gr pli vi ap pro im

BROADBAND IN ACTION

A mobile digital mammography service, which travels to rural towns and beams images back to specialists in assessment centres for diagnosis, is just one example of how ground-breaking broadband applications are already improving Victorian lives.

The Victorian Government has provided $1.9 million towards the BreastScreen Victoria pilot project, a world-first integration of digital mammography technology in a breast cancer screening program. The advantage in using this sort of technology is that digital mammograms can be sent and stored electronically – just like a digital photo that can sent by email. The technology also allows medical experts to access and print high quality copies of the images wherever and whenever they are required. For some rural women, broadband connectivity will mean they no longer need to make the long trip to Melbourne to visit a specialist. A digital image sent electronically will reach specialists in assessment centres more quickly than the traditional film x-rays, which need to be developed and then physically transported, sometimes over very long distances. Radiographers can view the mammograms instantly on their computers, and in cases where abnormalities have been detected, they can send images to specialists in real-time and discuss which further tests are needed. These kinds of e-Health projects are pioneering new ways to use broadband technologies that can then be applied in other areas of medicine. The Broadband Innovation Fund finances these initiatives through a $15 million funding pool for cutting-edge use of high-speed connectivity across a diverse range of government services, bringing a wide array of benefits to the Victorian community.

C BU OM SI PE N T ES IT S IV EN E V AN IR D O F N A M I EN R T

08 Mediator for the Victorian Small Business Commissioner, Frances Falduti is one of a panel of mediators who help businesses through low cost mediation and dispute resolution services. Demand for the VSBCâ&#x20AC;&#x2122;s services continued to grow in 2006-07.

46 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

COMPETITIVE AND FAIR BUSINESS ENVIRONMENT

Strategic objective: To facilitate a business environment that is strongly supportive of industry development The Government’s Time to Thrive small business statement was launched during the year, providing a $98 million package of practical programs and innovative initiatives to reduce red tape, boost the skills base and help small businesses grow and prosper. The statement offers start-up businesses, and those in the early growth phase, the assistance and encouragement they need to thrive in a competitive marketplace. It was shaped and informed by extensive consultation with a broad range of small businesses, which was undertaken during the year. Time to Thrive reflects the changing needs of the Victorian small business sector, which has seen a significant increase in independent contractors and home-based businesses. Major initiatives announced as part of Time to Thrive include: • World Class Service, an initiative which will integrate and improve Government services to business. World Class Service will create a single entry-point to Government services and information that further reduces the burden of compliance on Victorian small businesses • $10.6 million to help address the skills shortage through training and staff development. • new procurement policies to give greater access to Government contracts and procurement, including appointing a member with small business experience to the Victorian Government Purchasing Board • a small business hotline with advice and information on how to bid for Government work • $500,000 for the Victorian Small Business Commissioner to support independent contractors and ownerdrivers affected by new owner-driver legislation. Key strategy: Maximise benefits for industry of Commonwealth and State policies and programs The new Victorian Consumer and Business Centre opened in the Melbourne CBD in July 2006, further strengthening the network of

metropolitan and regional Victorian Business Centres across the state. The centres offer clear and accessible information on starting and running a business, hold business seminars and workshops, and deliver grants programs designed to increase the capacity of local industries to compete, grow and employ skilled workers. DIIRD provided targeted skills development programs and resources to meet the needs of businesses of all sizes during the year. The VicStart, Opening Doors to Export and Grow Your Business programs aim to support high growth businesses, while Under New Management and Women in Business aim to increase skill levels of businesspeople. DIIRD continued to offer useful and accessible resources for small businesses through Victorian Business Centres, the business.vic.gov.au website, the Victorian Business Line and the Small Business Mentoring Service. A customer satisfaction survey undertaken during the year found 90 per cent of program participants gave a satisfaction rating of excellent or good, which is a great result. DIIRD continued to maintain, develop and implement proactive partnerships with the private sector to promote programs and services, and ensure that more Victorians looking to start or grow a small business can access the services available. Business Victoria now brings together services from across government and now includes 60 federal, state and local government agencies. The Business Victoria website www.business.vic.gov.au was updated and improved, and average monthly visitor numbers continued to increase. Key strategy: Ensure the State’s regulatory regimes do not impede business development DIIRD undertook a number of initiatives under the Victorian Government’s $42 million Reducing the Regulatory Burden initiative. Funding for four priority review proposals was approved, including a review of the retail lease disclosure provisions of the Retail Leases Regulations 2003, a scoping study into an Interstate Business Transfer Service, a review of the Labour and Industry Act 1958 and a feasibility study into a Business Consultation Database which was established in 2007.

The Business Consultation Database lists the contact details of Victorian small business operators who agree to be contacted about small business policy proposals. The Business Consultation Database involves Victorian small business directly in the policy making process and gives businesses the opportunity to provide valuable feedback on the impact of proposed regulation. In other developments, DIIRD continued to promote non-legislative initiatives that reduce the regulatory burden by making it easier for businesses to access information on a range of regulations. For example, the Victorian Business Line, Victorian Business Centres, the Business Victoria website and World Class Service initiative all provide business with clear information and professional advice. The Department also provided advice about industry and business perspectives on new legislative proposals. This ensured that the impact on business of any new legislation was considered fully. DIIRD also prepared a Small Business Regulatory Impact Assessment Manual to help policy makers analyse and assess the impact of regulation on small businesses. Key strategy: Work to enhance a competitive and fair operating environment for small business The office of the Victorian Small Business Commissioner (VSBC) provides valuable services to small businesses in Victoria by facilitating a fair and competitive business environment. Since its inception in 2003, VSBC has encouraged fair competition and assisted thousands of businesses through low-cost mediation and dispute-resolution services. VSBC provides clear and practical information about businesses’ rights and responsibilities relating to retail tenancies. VSBC continues to see an increased demand for its services. The number of investigations referred to the VSBC has risen markedly and its disputeresolution service has continued to be widely used. Disputes valued at approximately $130 million have been handled, resulting in savings to Victorian small business of millions of dollars and thousands of hours previously wasted in disputes. 47

COMPETITIVE AND FAIR BUSINESS ENVIRONMENT (CONTINUED)

The Victorian Government extended its fair payments policy for Government departments during the year. Since 1 November 2004, all Victorian Government departments have been required to insert a fair payments clause into new contracts valued at less than $3 million. The clause requires payment of debts to suppliers within 30 days of receipt of invoices for goods and services. To ensure

this occurs, departments are obliged to pay penalty interest on payments that are not made within 30 days. The policy is now being extended from 10 Government departments to over 100 agencies and this will take effect from 1 September 2007. The introduction of the fair payments policy in Government departments has already significantly improved the promptness of payments to suppliers.

DIIRD has also developed its own Small Business Service Charter, which outlines commitments to government procurement processes, response times on enquiries, access and information services and communicating with small business.

Small Business Heroes â&#x20AC;&#x201C; The Multicultural Influence was a photographic exhibition held as part of Energise Enterprise 07, to celebrate inspirational, multicultural small business people who have built creative businesses.

08 48 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Y D U ST SE A C “T th he an e n pla 1, d w atio nt 00 w 0 ill p nal ill bo ro h be at du ea co s p c dq m er e u ua e ye p t rte ar o rs .”

General Manager, Haines Hunter, Edwin Cole with Business Development Manager in DIIRD’s Glenroy Victorian Business Centre, Elizabeth Joldeski.

VICTORIAN BUSINESS CENTRES AT WORK Client managers from the Glenroy and Vermont Victorian Business Centres and the Office of Manufacturing and Service Industries worked in partnership to secure a state-of-the-art boat manufacturing facility in Derrimut during the year. The new plant will become the national headquarters of Haines Hunter when it opens in August 2007 and will produce up to 1,000 boats per year. Haines Hunter manufactures luxury leisure and fishing fibreglass cabin cruisers, and had manufacturing operations based in Queensland and Hoppers Crossing in Melbourne’s west. Rapid growth and a highly competitive market placed stress on operations in both locations, and management realised an expansion of operations was needed to accommodate additional employees, increase output and facilitate new designs and innovation. DIIRD staff worked with Haines Hunter to negotiate an assistance package to facilitate the consolidation of both plants into a new facility at Derrimut in Melbourne. Haines Hunter has won a number of manufacturing and marine industry awards and was inducted into the Victorian Manufacturing Hall of Fame in 2006.

E IV T E C C U R D FO O RK PR O W

50 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

PRODUCTIVE WORKFORCE

Strategic objective: To foster a high performance and skilled workforce to meet the needs of the economy. Innovative and equitable workplaces are an essential part of Victoria’s vibrant economy, stimulating growth, productivity and progress and attracting new investment and industries. DIIRD promotes a positive working culture across industry through training, skills development and the provision of fair terms and conditions for all Victorian workers. Industrial relations has become a critical issue at local, state and national level, with the introduction of the Federal Government’s WorkChoices legislation sparking widespread debate, discussion and dissent. The new system continues to be a contentious issue that dominates the national political and industrial relations landscape. The Government developed the Victorian Workplace Rights Standard to provide a framework for all policies and programs developed in response to the new industrial relations laws. The Standard outlines the Government’s commitment to: • a comprehensive safety-net of wages and conditions • an independent industrial umpire • the right to collective bargaining • the right to freedom of association • protection from unfair dismissal • equal pay for work of equal value • the protection of employees seeking to balance their work and family obligations. The Government also established an independent statutory body, the Office of the Workplace Rights Advocate (OWRA), in response to the WorkChoices legislation. OWRA provides free telephone and online advice on the new industrial relations system to employees, employers and independent contractors, and assists

Victorian workers to assess their current work entitlements against the terms and conditions offered under new workplace agreements. Key strategy: Facilitate and support priorities and approaches to foster a skilled and productive workforce The Partners at Work competitive grants program was successfully completed in 2006. The four-year program combined workplace innovation with cooperative industrial relations approaches between management, employees and their representatives. A program evaluation found the 68 participating workplaces unanimously endorsed the program, which facilitated a range of positive outcomes. These included improved communications and trust between management and staff, the successful introduction of a culture of consultation and participation, and the introduction of more effective management practices. The evaluation was followed up with a high level industry roundtable involving government, employer groups, unions and project participants, which will inform future projects, programs and initiatives. Work and family balance continues to be a central issue for many Victorian workers. During the year, DIIRD worked with employer organisations and unions on five targeted projects to promote work-life balance. The Department published the Work and Family Balance Manual for employers and employees highlighting best practice work and family balance provisions, and undertook significant research on work and family balance needs in regional Victoria. The Department continued developing legislative and policy responses to safeguard public sector employee rights under the new industrial relations system. The Public Sector Acts (Further Workplace Protection and Other Matters) Act 2006 received Royal Assent in October 2006. The Act amends the Public Administration Act 2004 to establish an unfair dismissal jurisdiction

for public sector employees employed in workplaces of 100 employees or fewer. The jurisdiction is exercised by the Public Sector Standards Commissioner. The Act also amended the Public Sector Employment (Award Entitlements) Act 2006 to further protect public sector employees covered by collective agreements from discrimination. The Long Service Leave Act 1992 was also amended to better protect accrued long service leave entitlements. The Department also launched a comprehensive Industrial Relations Policy Manual for the Victorian Public Sector. The manual outlines the Victorian Government’s public sector industrial relations policies and its policy responses to Work Choices. It provides appropriate guidance for departments and agencies to ensure that their industrial relations strategies and actions accurately reflect Government policy. Key strategy: Assist to improve business management capabilities by working with business, business associations and other government agencies DIIRD continued to run a range of business management skills programs designed to increase the capacity of local industries to compete, grow and create new job opportunities. The My Business, My People initiative was launched in April 2007 as part of the $10.57 million Maintaining the Advantage: Skilled Victorians statement, and will assist small and medium sized businesses to overcome skills shortages and attract and retain skilled employees. The Department’s Office of Small Business continued to assist people interested in going into business or buying a franchise. Throughout the year, 4,121 participants attended 256 workshops on small business management skills, employment issues workforce regulations and best practice

Productive partnerships between the construction industry, unions and the Victorian Government have been forged through the Building Industry Consultative Council. The council is working to promote an environment that will stimulate building activity and jobs growth in Victoria through cooperative industrial relations in the building and construction industry. Council members, Bob Merriman (chair, left) and Carmel Coate (National Fire Industry Association) met with IRV’s Frank Borbiro to check on progress at a Multiplex site in Melbourne’s CBD. 51

PRODUCTIVE WORKFORCE (CONTINUED)

employment policies. The Small Business Counselling and Mentoring Program assisted small business operators with all aspects of small business and workforce management. The Department refers around 700 small businesses and new starters to the Small Business Mentoring Service (SBMS) annually, and offers around 1,500 counselling sessions. The Pay Equity Works for Everybody program continued to build the business case for addressing pay equity at the workplace. The program aims to promote pay equity as an attraction and retention strategy for women in management and as a means of tackling skills shortages. During the year, Industrial Relations Victoria worked in partnership with the National Australia Bank (NAB) and the Finance Sector Union (FSU) to conduct a pay audit. The audit findings were highlighted on International Womenâ&#x20AC;&#x2122;s Day as a positive precedent for pay

equity. A case study of the NAB/FSU process is now being promoted to other large Victorian employers and unions. In a positive example of partnering with industry, DIIRD worked with the Transport Industry Council to develop the landmark Owner-Drivers and Forestry Contractors Code of Practice, which commenced on 1 December 2006. The code promotes fair business relationships between transport and forestry contractors and their employers. In particular, it proscribes misleading advertising about expected earnings, provides for a process of negotiating and reviewing rates, promotes equitable dispute resolution and the timely payment of invoices. An industry information booklet was also developed to accompany the code of practice, which was distributed to every owner-driver in Victoria.

09 Outworker officers from Industrial Relations Victoria attend community events to distribute information to workers.

52 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Outworker retraining programs have become a key feature of ensuring protection for vulnerable outworkers in the clothing industry. Industrial Relations Victoria has facilitated three programs with industry groups, community organisations, unions and education providers during the past 12 months. Vietnamese outworkers have undertaken training for new careers in hospitality, aged care and dry cleaning. These programs all incorporate English literacy skills learning to enhance the employment prospects of the students.

s ha e, or iv ct tit ” se pe g s… n io om sin ar ct y c s ri ye tru gl el w ns sin lev t fe co a y as ’s cre vit p ria in ti he to e uc t ic m od er “V co pr ov be ith gly w ron st

At the launch of the Building Industry Comparative Index were Executive Director of Master Plumbers and Mechanical Services Association, Ray Herbert; Minister for Industrial Relations, Rob Hulls and Chair of the Building Industry Consultative Council, Bob Merriman.

THE BUILDING INDUSTRY COMPARATIVE INDEX

Victoria’s construction sector has become increasingly competitive, with productivity levels rising strongly over the past few years according to the Building Industry Comparative Index (BICI), which was launched in May 2007. The BICI was developed by the Building Industry Consultative Council, a tripartite industry group representing Victorian construction employers, unions and the Victorian Government. The BICI compares building industry performance across Western Australia and the eastern seaboard states. The index is a major achievement of the Council, which commissioned a study to analyse seven years of data from the Australian Bureau of Statistics, State and Federal Governments and private organisations. The result is a highly strategic, long-term view of the competitiveness of Victoria’s building industry in comparison to other states across in commercial, industrial, retail and major residential building projects. The index is available online on the Council’s website at www.bici.com.au, and will be updated twice a year. A set of case studies of major Melbourne building projects that were completed on budget and on time were also made available at the time fo the BICI launch. The studies highlight industrial relations practices in the construction sector that lead to positive outcomes. The Council is now working on projects focusing on skills attraction and the promotion of cooperative industrial relations practices to ensure Victoria’s construction industry remains competitive.

IN IN N D OV U A ST T RY IO N PO A LI ND C Y

10 54 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

INNOVATION AND INDUSTRY POLICY

Strategic objective: To provide leadership for whole-of-Victorian Government innovation and industry policy development and evaluation. The National Innovation Agenda (NIA) made significant progress in 2006-07 and highlighted the benefits of consulting broadly to develop a shared vision of innovation across State and Federal governments. The Department continued to develop and monitor industry policy and research and evaluate innovation, technology and economic developments. Major achievements for the year included the launch of the Roadmap for Victoria’s Defence Industries and the substantial work undertaken to progress the Victorian Manufacturing Strategy. Key strategy: To provide an integrated and focused industry policy framework The Innovation and Research Branch developed and finalised a new economic development framework in 2006-07. The framework will assist the Department to design, implement and assess activities against four key drivers of economic growth - exploiting Victoria’s assets, building a competitive business environment, boosting Victoria’s transformative capacity and forging global connections.

Economic Policy and Planning continued to support a strategic and coordinated approach to evaluation through the establishment and implementation of the DIIRD Evaluation Framework. The framework aims to develop advanced evaluation skills across the Department and encourage high quality evaluation processes. During the year, 28 monitoring and evaluation projects were implemented. Comprehensive research was undertaken across a range of key areas during the year. An economic environmental scan provided an overview of recent economic trends and a perspective on the key challenges for economic development in Victoria. Monthly reviews of recent Australian and international innovation, technology and economic policy developments were undertaken, and regular analysis of economic and trade performance was reported in the Monthly Economic Overview. The Department also commissioned an important discussion paper for the NIA Innovation Policy, Productivity, and the Reform Agenda in Australia: A Framework for Analysis, which is available online from the DIIRD website at www.diird.vic.gov.au. Key strategy: Lead and facilitate whole-of-Victorian Government policy development in key industry sectors After initial consultation and roundtables with key stakeholders

around Victoria, DIIRD, working with the Department of Treasury and Finance, developed an NIA Proposal to drive a shared national approach to innovation. The proposal is being used as the basis for ongoing consultations nationally with key stakeholders. The NIA’s call for stronger national coordination has been endorsed by the Productivity Commission in its Innovation and Science Study and a range of other leading national stakeholders. Support for the NIA approach has been received from key stakeholders including the Business Council of Australia, the Australian Industry Group and the Australian Industrial Research Group. The key themes of the NIA have been raised in a number of forums by the Minister for Innovation during 2006-07, including the Innovation Leadership Summit and the Australia Unlimited Roundtable. DIIRD also hosted NIA stakeholders at an address given by James Wilsdon, contributing editor to the suite of Atlas of Ideas reports published by UK based think-tank Demos. The NIA continues to be a key focus for DIIRD and offers great potential for innovation and cooperation at a local, state and national level. In other developments, the Roadmap for Victoria’s Defence Industries was launched in August, and funding of $4.05 million over four years was allocated to implement the Defence

The Victorian Industry Participation Policy (VIPP) aims to boost employment and business growth in Victoria by expanding opportunities for local small and medium enterprises to participate in major government procurement and project activities. A review of the VIPP was conducted during 200607, led by (from right) Sam Steele, David Samuels and Serey Thir from the Economic Policy and Planning Division. 55

INNOVATION AND INDUSTRY POLICY (CONTINUED)

Strategy. Substantial progress in the implementation of the Defence Strategy has been made and achievements include: • the establishment of a Defence Industry Unit within DIIRD • Government support for the expansion of Victoria’s shipbuilding capability and the facilitation of a $500 million deal for the Tenix Shipyard in Williamstown, outlined on page 27 of this report

• the recruitment of a US-based Manager of Defence/Aerospace to facilitate investment and export opportunities for the Victorian defence industry in the United States • ongoing support for Australian Aerospace and Defence Innovations (AADI) through the VicStart program. AADI coordinates and facilitates the commercial exploitation of Australia’s capacity in aerospace and defence. The Victorian Manufacturing Strategy is

10 56 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

being developed to provide a medium to longer term strategic framework that will guide future policy choices and initiatives. The strategy is based on a capability-building approach including further internationalisation, innovation, training and the creation of a strong business environment.

Y D U ST SE A C “T th heir re e c de an put om sig d at pa ns in io ny e te n l ’s nh rn oc p a at al ro nc io ly fil ed na , n e lly at an … ion d ” all y

PEDDLE THORP ARCHITECTS The Victorian Industry Participation Policy (VIPP) aims to boost employment and business growth in Victoria by expanding market opportunities for local small and medium enterprises (SMEs) and supply chain partners. Peddle Thorp Architects (PTA) is one of many businesses that has benefited from VIPP and the major projects undertaken for the Melbourne 2006 Commonwealth Games. PTA won contracts to design new developments at the Melbourne Sports and Aquatic Centre, the Melbourne Cricket Ground and the Rod Laver and Vodafone Arenas against talented international competition. Their designs enhanced the company’s profile and reputation locally, nationally and internationally, and assisted in a successful bid to design competition venues for the Delhi 2010 Commonwealth Games. PTA led a consortium of six Australian companies which was awarded contracts to construct the Siri Fort, Yamuna and Tyagaraj sports complexes. The successful bid has seen PTA establish operations in Delhi and enabled the company to take up other business opportunities in India.

E AT R T PO R R O O P C P SU

58 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

CORPORATE SUPPORT

Strategic objective: To deliver high quality, responsive, relevant, accessible and efficient corporate support within DIIRD Corporate Services provided a range of essential services throughout the year. A key achievement for 200607 was facilitating the Department’s move to the Southern Cross building at 121 Exhibition Street Melbourne. Early in July 2006, office equipment and documentation for 700 employees were relocated in a single weekend. The move, while both challenging and ambitious, was a big success. Strategic Communications worked closely with divisions to align the Department’s communications outputs with its primary objectives. An innovative Victoria-wide campaign to promote manufacturing careers to young people was launched in June 2007. The campaign involved television, radio and cinema advertisements featuring popular comic Dave Hughes promoting a website called ‘It’s Your Future’. The goal was to help tackle the severe skills shortage, by drawing young people to the website where they can find out more information about the vast number of wellpaid careers available in manufacturing. Strategic Communications also provided more than 500 speeches and 600 media releases as well as media and event coordination services in 2006-07.

Key strategy: Provide the necessary corporate infrastructure, services and advice to Ministers and divisions to operate effectively and efficiently A number of machinery-of-government changes followed the November 2006 state election. The most significant changes for DIIRD were the integration of Office of Training and Tertiary Education (OTTE) and Multimedia Victoria (MMV) into the Department. The integration of essential corporate infrastructure and services to support these new areas has required extensive consultation with both the Department of Infrastructure and the Department of Education. The Economic Policy and Planning Division continued to provide high quality briefing processes and effective information systems to support Ministers, Cabinet and Parliamentary and Legislation Services throughout the year. The Department’s new ICT Strategy also identified numerous key technology projects for implementation over the next three years. Projects such as the implementation of the Departmental Contact Management System resulted in significant business support improvements in 2006-07. A new approach to the DIIRD Planning Framework culminated in the DIIRD Strategic Directions and Annual Business Plan for 2006-07. Divisional Business Plans were also developed and ensured an integrated system of reporting of outcomes was achieved.

Key strategy: Ensure a continuous improvement approach is adopted across DIIRD As a result of feedback from staff and client surveys, a range of process improvements were implemented progressively throughout the year. These included e-briefing system and monthly financial reporting improvements, an expansion of the induction program for new starters and the redevelopment of the intranet. A Grants Management Steering Committee was established to oversee improvements to the delivery and management of grant programs. A comprehensive review of small grant program management was also completed, and changes to improve the efficiency of grant program delivery were implemented. Further actions to improve grant program management are planned for implementation in 2007-08. Key strategy: Foster an environment which develops leadership and management skills The Department offered a suite of leadership and management development courses to staff throughout the year. Programs included the ANZSOG Executive Fellows Program and Executive Master of Public Administration, the Cranlana Colloquium (Senior Executives) and Future Leaders Program Colloquium, the Departmentwide Mentoring Program, the Women in Management Program and Executive Officer Forums.

Members of the Department’s Central Web Team, Chaminda Subasinghe and Matthew Myers, consult with staff across the organisation, including Margaret Raczynski from Human Resources, to deliver web-based services for businesses and staff. 59

CORPORATE SUPPORT (CONTINUED)

The Executive Officer Forums aim to enhance leadership and management capabilities that are linked to departmental objectives. The forums allow Departmental executives to discuss leadership and policy issues with senior academics and business and Government leaders. The Department’s annual mentoring program continues to grow in popularity each year. This year the Department welcomed staff from Film Victoria, MMV and OTTE to the program and

had a record number of participants. The mentoring program provides both mentors and participants with the opportunity for personal and professional growth and development.

performance management, policy development, project management, and influencing, negotiation and communication skills.

Eighty DIIRD staff participated in an in-house training program designed to develop skills in investment attraction and facilitation and the negotiation and management of financial assistance contracts. Staff also participated in a range of learning and development programs covering presentation skills,

11 The ‘It’s Your Future’ advertising campaign encouraged people to visit a website for more information about careers in manufacturing.

60 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

in ge ir ” a e am nt th … te va m ns ct ad fro tio oje k n isa pr oo ar n e s t le ga th ce to or of ur ty er rs so ni th be Re ortu in o em an pp rts “M um o a H the terp of un co

Tony Lang, Manager Human Resources Operations, with inductee Melynda Bevan.

INDUCTION INTO BEST PRACTICE

D U

A comprehensive review of induction and orientation practices across three tiers of government and the private sector has led to a revamped induction and orientation program for DIIRD, helping new staff to become more productive more quickly. One of the key aims of the review was to provide induction and orientation programs which more closely reflected the needs of staff with varied knowledge of government practices and levels of work experience. The new program takes a longer-term view, including induction activities for the first month of employment as well as an orientation phase which extends up to two years. Induction now involves an overview of working in Government, the Victorian Public Service and the Department including use of the intranet and a range of Learning Seat modules. New starters also learn business specific skills through a tailored program developed in local business units. Members of the project team in Human Resources took advantage of the opportunity to learn from their counterparts in other organisations, leading to the delivery of a best-practice service for all new starters in DIIRD.

Department of Innovation, Industry and Regional Development Annual Report 2006-2007

FI RT

INTRODUCTION

This fi nancial report covers the Department of Innovation, Industry and Regional Development as an individual entity and is presented in the Australian currency. The Department of Innovation, Industry and Regional Development is a government department of the State of Victoria. The Department was established pursuant to an order made by the Premier under the Administrative Arrangements Act 1993. Its principal address is: Department of Innovation, Industry and Regional Development 121 Exhibition Street Melbourne VIC 3000 A description of the nature of the Departmentâ&#x20AC;&#x2122;s operations and its principal activities is included in the Report of Operations section of the annual report which does not form part of this financial report. For queries in relation to our reporting please call 9651 9999, or visit our website at http://www.iird.vic.gov.au/.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

CONTENTS

Operating statement

Balance sheet

Statement of changes in equity

Cash flow statement

Notes to the Financial Statements Note 1.

Summary of accounting policies

Note 2.

Departmental outputs

Note 3.

Income

Note 4.

Expenses

Note 5.

Restructuring of administrative arrangements

Note 6.

Receivables

Note 7.

Other assets

Note 8.

Property, plant and equipment

Note 9.

Non-current assets classified as held for sale and liabilities directly associated with assets classified and held for sale

Note 10. Investments accounted for using the equity method

Note 11. Intangible assets

Note 12. Payables

Note 13. Interest bearing liabilities

Note 14. Provisions

Note 15. Superannuation

Note 16. Leases

Note 17.

Commitments for expenditure

100

Note 18. Contingent assets and contingent liabilities

102

Note 19. Financial instruments

103

Note 20. Cash flow information

104

Note 21. Movements in equity

106

Note 22. Administered items

107

Note 23. Summary of compliance with annual parliamentary appropriations

109

Note 24. Ex-gratia payments

110

Note 25. Annotated receipts agreements

110

Note 26. Trust account balances

111

Note 27. Responsible persons

114

Note 28. Remuneration of auditors

114

Note 29. Remuneration of executives

115

Accountable officer’s and chief finance officer’s declaration

116

Auditor-General’s Report

117

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDING 30 JUNE 2007

Note

2007 $â&#x20AC;&#x2122;000

2006 $â&#x20AC;&#x2122;000

Output appropriations

3(a)

879,717

384,738

Regional Infrastructure Development Fund appropriations

3(a)

92,000

35,000

Resources received free of charge or for nominal consideration

3(a)

(1,883)

113

3(b)

6,787

5,920

976,621

425,771

Income Revenue

Other revenue Total revenue Other income

3(c)

Total income

(242)

(42)

976,379

425,729

Expenses Grants and other payments

4(a)

(714,487)

(289,337)

Employee benefits

4(b)

(57,893)

(50,092)

Depreciation and amortisation

4(c)

(3,754)

(2,250)

Resources provided free of charge or for nominal consideration Capital asset charge

(84,735)

(3,791)

Supplies and services

4(d)

(79,561)

(63,372)

Finance costs

4(e)

(131)

(83)

Impairment of assets Total expenses Share of net profits/(losses) of associates and joint ventures accounted using the equity method

Net result for the period

21(c)

(8,460)

(940,546)

(417,385)

35,833

8,344

The above operating statement should be read in conjunction with the accompanying notes included on pages 8 to 53.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

BALANCE SHEET AS AT 30 JUNE 2007

Notes

2007 $â&#x20AC;&#x2122;000

2006 $â&#x20AC;&#x2122;000

1(j), 19, 20

259,701

123,750

6, 19

74,593

44,083

743

205

335,037

168,038

335,094

168,073

Current assets Cash and cash equivalents Receivables Other Non-current assets classified as held for sale

7 1(j), 9

Total current assets Non-current assets Receivables

6, 19

1,436

1,365

Investments accounted for using the equity method

15,000

Property, plant and equipment

196,019

179,556

Intangible assets

Other

15,000

Total non-current assets

212,455

195,921

Total assets

547,549

363,994

103,738

30,663

1,171

772

18,331

13,072

1(h)

10,000

133,240

44,507

133,298

44,541

1,199

1,060

Current liabilities Payables Interest bearing liabilities Provisions Other

Liabilities directly associated with non-current assets classified as held for sale

1(k), 12, 19 13, 19

Total current liabilities Non-current liabilities Interest bearing liabilities Provisions

13, 19

1,705

1,415

40,000

42,904

2,475

Total liabilities

176,202

47,016

Net assets

371,347

316,978

Other

14 1(h)

Total non-current liabilities

Equity Contributed capital

21(b)

215,456

198,980

Reserves

21(a)

6,142

4,082

Accumulated surplus

21(c)

Total equity Contingent assets and contingent liabilities

Commitments for expenditure

149,749

113,916

371,347

316,978

The above balance sheet should be read in conjunction with the accompanying notes included on pages 8 to 53

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

Note

Total Equity at the beginning of the financial year Gain/(loss) on property revaluation

21(a)

Net income recognised directly in equity Net result for the period Total recognised income and expenses for the period Transactions with the State in its capacity as owner Total equity at the end of the financial year

21(c)

2007 $â&#x20AC;&#x2122;000

2006 $â&#x20AC;&#x2122;000

316,978

248,025

2,060

35,833

8,344

35,833

8,344

16,476

60,609

371,347

316,978

The above statement of changes in equity should be read in conjunction with the accompanying notes included on pages 8 to 53.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

Note

2007 $â&#x20AC;&#x2122;000

2006 $â&#x20AC;&#x2122;000

Receipts from Government

1,043,121

450,003

Receipts from other entities

20,178

9,575

Goods and Services Tax recovered from the ATO

35,945

31,850

1,099,244

491,428

Payments of grants and transfer payments

(719,759)

(285,626)

Payments to suppliers and employees

(174,411)

(153,714)

Goods and Services Tax paid to the ATO

(32,919)

(31,688)

Capital asset charge

(84,735)

(3,791)

Cash flows from operating activities Receipts

Interest received Total receipts Payments

Interest and other costs of finance paid Total payments Net cash flows from/(used in) operating activities

20(c)

(130)

(83)

(1,011,954)

(474,902)

87,290

16,526

Cash flows from investing activities Payment for investment Payments for property, plant and equipment Payment for intangible assets Net cash flows from/(used in) investing activities

50,000

(18,189)

(49,016)

(5)

31,811

(49,021)

16,287

45,609

953

1,423

Cash flows from financing activities Proceeds from capital contribution by State Government Proceeds from borrowings Repayment of finance leases Net cash flows from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

20(a)

(390)

(234)

16,850

46,798

135,951

14,303

123,750

109,447

259,701

123,750

The above cash flow statement should be read in conjunction with the accompanying notes included on pages 8 to 53. Non cash transactions are disclosed in note 20(b)

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007 NOTE 1. SUMMARY OF ACCOUNTING POLICIES (a) Statement of compliance The financial report is a general purpose financial report which has been prepared on an accrual basis in accordance with the Financial Management Act 1994, applicable Australian Accounting Standards, in particular AAS29 Financial Reporting by Government Departments, Interpretations and other mandatory professional requirements. Accounting Standards include Australian equivalents to International Financial Reporting Standards (‘A-IFRS’). The financial report was authorised for issue by W. Hodgson (Secretary - Department of Innovation, Industry and Regional Development) on 29 August 2007. (b) Basis of Preparation The financial report has been prepared on a historical cost basis, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. In the application of A-IFRS, management is required to make judgements, estimates and assumptions about 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. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements made by management in the application of A-IFRS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed throughout the notes in the financial statements. 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. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2007 and the comparative information presented for the year ended 30 June 2006. (c) Reporting entity The Department is an administrative agency acting on behalf of the Crown. The financial statements include all the controlled activities of the Department of Innovation, Industry and Regional Development. The Department has the following controlled entity: • Victoria Trade and Investment Office Pty Ltd, a wholly owned subsidiary operating in China was acquired on 1 July 2005 to enable the Department to engage in trade and investment promotion activities in the South East Asian region. The company’s chairperson is the Secretary of the Department. In addition, the following units of the Department are included in the reporting entity: • Regional Development Victoria established under the Regional Development Victoria Act 2002; • Office of the Small Business Commissioner established under the Small Business Commissioner Act 2003; and • Workplace Rights Advocate established under the Workplace Rights Advocate Act 2005. The financial activities of Tourism Victoria are not included in the Department’s reporting entity but are reported separately. Administered resources The Department administers but does not control certain resources on behalf of the Victorian Government. It is accountable for the transactions involving those administered resources, but does not have the discretion to deploy the resources for achievement of the Department’s objectives. For these resources, the Department acts only on behalf of the Victorian Government. Administered resources are accounted for using the accrual basis of accounting. Transactions and balances relating to these administered resources are not recognised as Departmental revenues, expenses, assets or liabilities within the body of the financial statements, but are disclosed in the applicable output schedules (see Note 22). Except as otherwise disclosed, administered items are accounted for on the same basis and using the same accounting policies as for departmental items. Other administered activities on behalf of parties external to the Victorian Government The Department of Innovation, Industry and Regional Development has responsibility for transactions and balances relating to administered funds on behalf of third parties external to the Victorian Government. Revenues, expenses, assets and liabilities administered on behalf of third parties are not recognised in these financial statements as they are administered on a fiduciary and custodial basis, and therefore not controlled by the Department.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) Joint venture entities 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). The interest in a joint venture partnership is accounted for in the financial statements using the equity method. Under the equity method, the share of the profits or losses of the partnership is recognised in the operating statement, and the share of movements in reserves is recognised in reserves in the statement of changes in equity. The cumulative post-acquisition movements are adjusted against the carrying value of the jointly controlled entity. Details relating to the joint venture are set out in the Note 10. The Department of Innovation, Industry and Regional Development has a joint venture interest with Monash University in the Australian Regenerative Medical Institute (ARMI). ARMI was established to construct and operate a regenerative medical research facility which will promote Victoria as a global leader, foster and develop existing research collaboration on both domestic and overseas projects and provide a major site for both undergraduate and post graduate training programs. (d) Objectives and funding The Departmentâ&#x20AC;&#x2122;s key objectives for the current year are to: (i) Position Victoria as an attractive destination for investment that stimulates growth and development across the State. (ii) Work with the business sector and other key partners to encourage exports. (iii) Facilitate and support the development of innovative industries. (iv) Ensure sustained economic and industry development of regional Victoria. (v) Ensure effective marketing and promotion of Victoria in a global economy. The Department is predominantly funded by accrual based Parliamentary appropriations for the provision of outputs. (e) Outputs of the Department Information about the Departmentâ&#x20AC;&#x2122;s output activities, and the expenses, revenues, other income, assets and liabilities which are reliably attributable to those output activities, is set out in the output activities schedule (Note 2). Information about expenses, revenues, other income, assets and liabilities administered by the Department are given in the schedule of administered expenses and revenues and the schedule of administered assets and liabilities (refer also Note 22). As a consequence of machinery-of-government changes announced in December 2006, output details reflect the actual period of responsibility for Department of Innovation, Industry and Regional Development, being for the period to 31 December 2006 for the old outputs and from 1 January 2007 to 30 June 2007 for the new output structure. Comparative amounts for the prior year have not been adjusted. Details of assets and liabilities transferred into the Department of Innovation, Industry and Regional Development and other information relating to machinery-of-government changes are reflected in Note 5. (f) 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 balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the balance date and the date the statements are authorised for issue where the events relate to conditions which arose after the reporting date and which may have a material impact on the results of subsequent years. (g) Goods and services tax 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 flow.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) (h) Income recognition All income received by the Department is generally required to be paid into the Consolidated Fund. 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 relevant Appropriations Act. Additionally, the Department is permitted under section 29 of the Financial Management Act 1994 to have certain revenue annotated to the annual appropriation. The revenue 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 revenue 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 and the proceeds from the sale of assets. Output appropriation Revenue 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. Resources received free of charge or for nominal consideration Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the contributed asset qualifies for recognition, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements, in which case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. Other revenue Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes. All amounts of revenue over which the Department does not have control are disclosed as administered income in the schedule of administered income and expenses (see Note 22). Revenue is recognised for each of the Departmentâ&#x20AC;&#x2122;s major activities as follows: â&#x20AC;˘ Trust revenue Trust revenue received for a specific purpose is deferred and recognised progressively in the operating statement in the period in which conditions relating to the payment of the funds to third parties have been met. During the reporting period, the Department received money from the Commonwealth Government to co-finance the operations of the Australian Synchrotron Facility and at 30 June 2007, these funds are held in the Australian Synchrotron Trust Fund. Accordingly, the Department has recognised current and non current unearned revenue in the balance sheet based on the timing of the estimated future payments to be made. All other trust revenue is recognised in the operating statement when it is earned by the Department and any unapplied amounts as at the end of the reporting period are recognised in the balance sheet until the associated expenditure is incurred. Other income Other income consists of gains/losses on disposal of property, plant and equipment. Any gain or loss on disposal is recognised at the date 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. Administered income â&#x20AC;˘ Commonwealth grants Grants payable by the Commonwealth Government are recognised as income when the Department gains control of the underlying assets. Where such grants are payable into the Consolidated Fund, they are reported as administered income. For reciprocal grants, the Department is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants, the Department is deemed to have assumed control when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. Commonwealth grants are disclosed as income in the schedule of Administered Items (see Note 22). (i) Expenses Grants and other payments Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants, subsidies and other transfer payments to Tourism Victoria and Film Victoria. Employee benefits Employee benefits expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation. These are recognised when incurred, except for contributions in respect of defined benefit plans

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) Defined benefits superannuation plans The amount charged to the operating statement in respect of defined benefit superannuation plans represents the contributions made by the Department to the superannuation plan in respect to the current services of current Department staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. The Department of Treasury and Finance centrally recognises the defined benefit liability or surplus of most Victorian government employees in such funds. Depreciation Depreciation is provided on property, plant and equipment, excluding land. Depreciation is generally calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or its estimated useful life, whichever is shorter, using the straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. Details of estimated useful lives of assets used in calculation of deprecation rates are included in Note 8. Amortisation Intangible assets with finite useful lives are amortised on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation 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. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Details of estimated useful lives of assets used in calculation of amortisation rates are included in Note 8. Resources provided free of charge or for nominal consideration Resources provided free of charge or for nominal consideration are recognised at their fair value. Capital asset charge The capital assets charge represents the opportunity cost of capital invested in the non-current physical assets used in the provision of outputs. The charge is calculated on the budgeted carrying amount of non-current physical assets of the Department’s portfolio, including other General Government entities such as the TAFE institutions. Finance Costs Finance costs are recognised as expenses in the period in which they are incurred and mainly relate to finance lease charges. Impairment of assets 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 whenever there is an indication that the asset may be impaired. All other assets are assessed annually for indications of impairment, except for: • financial assets (refer Note 1(j)); and • non current assets held for sale (refer Note 1(j)). If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operating statement except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. This is due to the fact most assets held by the Department not primarily used for cash generating purposes and in the event of their loss, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. 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. Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Department. These items are recognised as an expense in the reporting period in which they are incurred. The carrying amount of any inventories held for distribution is expensed when distributed.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) (j) Assets All non current assets, including Crown Land, controlled by the Department are reported in the balance sheet. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of 3 months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Receivables Receivables consist predominantly of debtors in relation to goods and services, accrued investment income and GST input tax credits recoverable. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment. A provision for doubtful receivables is made when there is objective evidence that the debts will not be collected. Bad debts are written off when identified. Intangible assets Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation 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 Department. Research and development costs Expenditure on research activities is recognised as an expense in the period in which it is incurred. 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. Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred. Intangible assets are measured at cost less accumulated amortisation and impairment, and are amortised on a straight-line basis over their useful lives as follows: â&#x20AC;˘ Capitalised software development costs 4 years (2006 - 4 years). Property, plant and equipment Land and buildings are measured initially at cost, then subsequently at fair value. Plant, equipment and vehicles are measured at cost less accumulated depreciation and impairment. Revaluations of non-current assets Non-current physical assets measured at fair value are revalued in accordance with the Financial Reporting Direction 103B Non Current Physical Assets. This revaluation process normally occurs every five years, based upon the assetâ&#x20AC;&#x2122;s Government Purpose Classification. Revaluation increments or decrements arise from differences between carrying value and fair value. Revaluation increments are credited directly to equity in the revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised as income in determining the net result. Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the revaluation reserve in respect of the same class of assets, they are debited to the revaluation reserve. Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Revaluation reserves are not normally transferred to accumulated surplus on de-recognition of the relevant asset.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) Non-current assets held for sale Non-current assets (and disposal group) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation. Non-current assets and disposal groups are 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 sale is highly probable and the assetâ&#x20AC;&#x2122;s sale (or disposal group sale) is expected to be completed within one year from the date of classification. Non-current assets constructed by the Department The cost of non-current 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. Leased assets Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Finance leases are 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 leases asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum lease payments are allocated between the principal component of the lease liability, and the interest expense calculated using the interest rate implicit in the lease, and charged directly to the operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred. Operating lease payments, including any contingent rentals, are recognised as an expense in the 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 cost of leasehold improvements 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. (k) Liabilities Payables Payables consist predominantly of creditors and other sundry liabilities. Payables are carried at amortised cost and represent liabilities for goods and services provided to the Department prior to the end of financial year that are unpaid, and arise when the Department becomes obliged to make future payments in respect of the purchase of these goods and services. Interest bearing liabilities Interest bearing liabilities are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, interest bearing liabilities 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 interest bearing liability using the effective interest rate 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 When some or all of the economic benefits required to settle a provision are expected to be recognised 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 (i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, 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 current liabilities, measured at 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.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) (ii) Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. Current liability Unconditional LSL (representing 7 or more years of continuous service) is disclosed 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: • present value – component that the department does not expect to settle within 12 months; and • nominal value – component that the department expects to settle within 12 months. Non current liability Conditional LSL (representing less than 7 years of continuous service) 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. (iii) Employee benefits on-costs Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised and included with LSL employee benefits. (l) Commitments Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources and are disclosed at their nominal value. (m) 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. (n) Equity Contributions by owners For 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 contributions by owners. (o) Cash flow statement For the purposes of the cash flow statement, cash comprises cash on hand, cash at bank, bank overdrafts and deposits at call, and highly liquid investments with short periods to maturity that are readily convertible to cash on hand and are subject to an insignificant risk of changes in value. (p) Foreign currency All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the transaction. Foreign monetary items at reporting date are translated at the exchange rate existing at reporting date. Nonmonetary assets carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Exchange differences are recognised in profit or loss in the period in which they arise. (q) Functional and presentation currency The functional currency of the Department is the Australian dollar, which has also been identified as the presentation currency of this Department. (r) Rounding of amounts Amounts in the financial report have been rounded to the nearest thousand dollars, unless otherwise stated. (s) New accounting standards and interpretations Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period. The Department of Treasury and Finance assesses the impact of these new standards and advises departments and other entities of their applicability and early adoption where applicable. As at 30 June 2007, the following standards and interpretations (applicable to departments) had been issued but were not mandatory for financial years ending 30 June 2007. The Department has not, and does not intend to, adopt these standards early.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) Standard/Interpretation

Summary

Applicable for annual reporting periods beginning or ending on

Impact on departmental financial statements

AASB7 Financial Instruments: Disclosures

New standard replacing disclosure requirements of AASB132.

Beginning 1 Jan 2007

AASB7 is a disclosure standard so will have no direct impact on the amounts included in the departmental financial statements. However, the amendments will result in changes to the financial instrument disclosures included in the departmental financial report.

AASB2005-10 Amendments to Australian Accounting Standards [AASB132, AASB101, AASB114, AASB117, AASB133, AASB139, AASB1, AASB4, AASB1023 & AASB1038]

Amendments arise from the release in August 2005 of AASB7 Financial Instruments: Disclosures.

Beginning 1 Jan 2007

As above.

AASB101 Presentation of Financial Statements (revised)

Removes Australian specific requirements from AASB101, including the Australian illustrative formats of the income statement, balance sheet and statement of changes in equity which entities were previously â&#x20AC;&#x2DC;encouragedâ&#x20AC;&#x2122; to adopt in preparing their financial statements

Beginning 1 Jan 2007

Impact on presentation not expected to be significant.

Interpretation 10 Interim Financial Reporting and Impairment

Equivalent to IFRIC10 of the same name. Concludes that where entity has recognised an impairment loss in an interim period in respect of goodwill or an investment in either an equity instrument or a financial asset carried at cost, that impairment should not be reversed in subsequent interim financial statements nor in annual financial statements.

Beginning 1 Nov 2006

The Department does not publish interim financial results, so there is no impact.

Interpretation 12 Service Concession Arrangements

AASB approved an Australian Interpretation 12, equivalent to IFRIC 12, applying to private sector operators, but is silent on accounting by public sector grantors. The AASB intends to consider how public sector grantors should account for service concession arrangements, and will appoint an advisory panel to make recommendations.

Beginning 1 Jul 2008

The impact of any changes that may be required cannot be reliably estimated and is not disclosed in the financial statements.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 1. SUMMARY OF ACCOUNTING POLICIES (continued) Standard/Interpretation

Summary

Applicable for annual reporting periods beginning or ending on

Impact on departmental financial statements

AASB 2007-2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12

Amendments arise from the release in February 2007 of Interpretation 12 Service Concession Arrangements.

Beginning 1 Jul 2008

As above.

AASB 8 Operating Segments

Supersedes AASB 114 Segment Reporting.

Beginning 1 Jan 2009

Not applicable.

AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038]

An accompanying amending standard, also introduced consequential amendments into other Standards.

Beginning 1 Jan 2009

Impact expected to be not significant.

Interpretation 4 Determining whether an Arrangement contains a Lease [revised]

Where arrangements might fall both within this Interpretation and Interpretation 12, Interpretation 12 will take precedence.

Beginning 1 Jan 2008

May or may not lead to certain arrangements being reclassified. At this stage, the financial impact is unknown as it depends on whether there are arrangements being reclassified.

Beginning 1 Jan 2008

The Department is not an operator of service concession, so there will be no impact on disclosures.

As advised above, Interpretation 12 only applies to the private sector operation and the AASB is still considering public sector accounting for these arrangements. Interpretation 129 Service Concession Arrangements: Disclosures [revised]

Operator to disclose revenue and profit.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 2. DEPARTMENTAL OUTPUTS A description of each output group of the Department during the year ended 30 June 2007, together with the objectives of each output group are summarised below. Investment Attraction Description of Output The primary strategic objective of this output is to position Victoria as an attractive destination for investment that stimulates growth and development across the State. While Invest Victoria plays a lead role in the delivery of this output, significant contributions are made from across the Department. Objectives This output makes a significant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; and • growing and linking all of Victoria. This is achieved by promoting Victoria in the global economy as a world class investment location and by identifying, targeting and facilitating strategically important investments. Invest Victoria provides a whole-of-Victoria Government single entry point approach for investors. Trade Development Description of Output The primary strategic objective of this output is to work with the business sector and other key partners to encourage exports. The Office of International Business and Export plays a leading role in the delivery of this output with contributions from across the Department. Objectives These output make a significant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; and • growing and linking all of Victoria. This is achieved by assisting firms, including small to medium enterprises to develop and expand exports, import replacement and by facilitating cooperative arrangements between industry and Government to optimise trade opportunities. Developing Innovative Industries Description of Outputs The primary strategic objective of these outputs is to facilitate and support innovation across Victorian business and industry. These outputs are delivered collaboratively across the Department, with specific contributions from the Innovation Economy Advisory Board, Business Development, Industrial Relations Victoria, Business Services and the Small Business Commissioner. Objectives These outputs make a significant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria; • high quality education and training for lifelong learning; and • a fairer society that reduces disadvantage and respects diversity. This is achieved by investing in strategic knowledge industries, infrastructure and services and fostering the adoption and commercialisation of ideas and research. These Divisions also provide market intelligence information and research on economic and industry trends and facilitate and support priorities and approaches to foster a skilled and productive workforce. Regional Development Description of Outputs The primary strategic objective of these outputs is to ensure sustained economic and industry development of provincial Victoria. Regional Development Victoria takes a leading role in the delivery of these outputs. Objectives These outputs make a significant contribution to the achievement of the following key government outcomes: • more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria; and • building friendly, confident and safe communities. This is achieved by developing and facilitating investment and infrastructure projects that contribute to economic growth in provincial Victoria and by targeting population growth and the number of innovative enterprises in provincial Victoria Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 2. DEPARTMENTAL OUTPUTS (continued) Marketing Victoria Description of Output The primary strategic objective of this output is to effectively market Victoria in a global economy. Tourism Victoria plays a leading role in the delivery of this output. Objectives This output makes a significant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; and • growing and linking all of Victoria. This is achieved by positioning Victoria as a distinct, competitive and fair business environment, exporter and tourist destination and by promoting and marketing these characteristics nationally and overseas. Tourism Victoria supports and develops events for Victoria to maximise economic and tourism benefits and maximises the dissemination of tourism information about Victoria through online channels. Changes in Outputs In November 2006, the Premier announced a number of machinery of Government changes, effective 1 January 2007: • The part of the Science Technology and Innovation output related to the Energy Technologies Innovation Strategy (ETIS) was transferred to the Department of Primary Industries. • The part of the Information, Communication and Technologies (ICT) Policy and Programs output administered by Multimedia Victoria was transferred from the Department of Infrastructure. • The part of the Arts Portfolio Agencies output in relation to Film Victoria and the Victorian Major Events Company Ltd was transferred from the Department of Premier and Cabinet. • The Training and Further Education output was transferred from the Department of Education. In addition as part of these machinery of Government changes, the assets and liabilities associated with the ETIS, Multimedia Victoria and the Training and Further Education outputs were transferred at book value. No assets or liabilities associated with the Film Victoria or Victorian Major Events Company Limited output were transferred to the Department as these balances are held with the respective statutory authorities at transfer date. A description of these output groups assumed during the year ended 30 June 2007, together with the objectives of each output group are summarised below. ICT Policy and Programs Description of Output The primary strategic objective of this output is to implement the Government’s ICT agenda through a range of programs that promote a strategic approach to broadband telecommunications and undertaking programs designed to promote and grow a competitive Victorian ICT industry and grow Victoria’s ICT capacity. Objectives This output makes a significant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria.; and • sound financial management. This output provides the Government with strong policy development in relation to ICT, and to implement a range of targeted industry development and telecommunication programs. Training and Further Education Description of Output The training and further education output involves the provision of training programs and support for students in TAFE institutes and other registered training organisations in accordance with Government priorities and in response to industry and community demands. Objectives This output makes a significant contribution to the achievement of the following key Government outcomes: • growing and linking all of Victoria.; and • more quality jobs and thriving, innovative industries across Victoria. Part Portfolio Agencies output relating to Film Victoria and the Victorian Major Events Company Ltd The part Portfolio Agencies output relating to Film Victoria and the Victorian Major Events Company Ltd has not been established as a separate output group as it forms part of the Developing Innovative Industry output for the year ended 30 June 2007. Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 2. DEPARTMENTAL OUTPUTS (continued) Table continues on page 20 Schedule A - controlled income and expenses for the year ended 30 June 2007 Developing Innovative Industries (i)

Investment Attraction

Trade Development

Marketing Victoria

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

Output appropriations

74,281

46,664

202,076

220,496

9,204

11,266

54,307

45,871

Regional Infrastructure Development Fund appropriations

Resources received free of charge or for nominal consideration

113

Other revenue

477

446

2,447

2,752

243

914

868

Other income

(30)

(5)

(106)

(12)

(7)

(2)

(21)

(1)

Total Income

74,728

47,105

204,417

223,236

9,440

11,274

55,200

46,851

(60,996)

(33,036)

(122,358)

(156,365)

(2,535)

(4,199)

(43,557)

(40,127)

(8,747)

(8,671)

(31,442)

(27,512)

(2,403)

(2,256)

(972)

(1,024)

(580)

(407)

(1,634)

(955)

(157)

(99)

(455)

(274)

(323)

(583)

(2,857)

(2,526)

(78)

(58)

(226)

(296)

(8,125)

(6,860)

(41,293)

(33,821)

(2,683)

(4,192)

(10,173)

(7,836)

(9)

(4)

(53)

(34)

(5)

(3)

(5)

(4)

Income

Expenses Grants and other payments Employee benefits Depreciation and amortisation Resources provided free of charge or for nominal consideration Capital asset charge Supplies and services Finance costs Impairment of assets Total expenses Share of net profits/(losses) of associates and joint ventures accounted using the equity method Net Result for the Reporting Period (i)

(836)

(4,148)

(342)

(739)

(78,780)

(50,397)

(199,622)

(225,361)

(7,861)

(11,149)

(55,388)

(50,300)

(4,052)

(3,292)

4,795

(2,125)

1,579

125

(188)

(3,449)

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 2. DEPARTMENTAL OUTPUTS (continued) Table continued from page 19 Schedule A - controlled income and expenses for the year ended 30 June 2007 (continued) Regional Development

Training and Further Education (ii)

ICT Policy and Programs (iii)

Departmental Total

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

Output appropriations

62,398

60,441

460,678

16,773

879,717

384,738

Regional Infrastructure Development Fund appropriations

92,000

35,000

92,000

35,000

(1,883)

113

Other revenue

2,706

1,844

6,787

5,920

Other income

(78)

(22)

(242)

(42)

Total Income

157,026

97,263

458,795

16,773

976,379

425,729

Grants and other payments

(99,638)

(55,610)

(373,349)

(12,054)

(714,487)

(289,337)

Employee benefits

(12,316)

(10,629)

(2,013)

(57,893)

(50,092)

(870)

(515)

(30)

(3,754)

(2,250)

(505)

(328)

(80,729)

(17)

(84,735)

(3,791)

(10,329)

(10,663)

(4,624)

(2,334)

(79,561)

(63,372)

(57)

(38)

(2)

(131)

(83)

Income

Resources received free of charge or for nominal consideration

Expenses

Depreciation and amortisation Resources provided free of charge or for nominal consideration Capital asset charge Supplies and services Finance costs Impairment of assets Total expenses Share of net profits/(losses) of associates and joint ventures accounted using the equity method Net Result for the Reporting Period

(28)

(2,395)

(8,460)

(123,715)

(80,178)

(458,732)

(16,448)

(940,546)

(417,385)

33,311

17,085

325

35,833

8,344

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 2. DEPARTMENTAL OUTPUTS (continued) Schedule B - items of controlled income and expense recognised directly in equity for the year ended 30 June 2007 Developing Innovative Industries (i)

Investment Attraction

Gain/(loss) on property revaluation

Marketing Victoria

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

524

1,536

524

1,536

Regional Development

Gain/(loss) on property revaluation

Trade Development

Training and Further Education (ii)

ICT Policy and Programs (iii)

Departmental Total

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2,060

(i)

Includes part of the Arts Portfolio Agencies output in relation to Film Victoria and the Victorian Major Events Company Ltd from 1 January 2007 to 30 June 2007 and part of the Science Technology and Innovation output related to ETIS from 1 July 2006 to 31 December 2006. (ii) Training and Further Education output balances from 1 January 2007 to 30 June 2007. (iii) Includes part of the ICT Policy and Programs output administered by Multimedia Victoria from 1 January 2007 to 30 June 2007.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 2. DEPARTMENTAL OUTPUTS (continued) Schedule C - controlled assets and liabilities as at 30 June 2007 Investment Attraction

Developing Innovative Industries (i)

2007 $’000

2006 $’000

2007 $’000

22,058

14,120

7,966

7,232

30,024

Trade Development

Marketing Victoria

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

141,600

53,190

5,701

3,151

19,778

20,334

193,136

178,262

903

872

4,076

3,808

21,352

334,736

231,452

6,604

4,023

23,854

24,142

(6,223)

(4,984)

(92,676)

(21,157)

(2,006)

(1,452)

(8,815)

(7,038)

(231)

(305)

(41,147)

(1,191)

(65)

(75)

(299)

(444)

Total Liabilities

(6,454)

(5,289)

(133,823)

(22,348)

(2,071)

(1,527)

(9,114)

(7,482)

Net Assets

23,570

16,063

200,913

209,104

4,533

2,496

14,740

16,660

Assets Current Assets Non-Current Assets Total Assets Liabilities Current Liabilities Non-Current Liabilities

Regional Development

Training and Further Education (ii)

ICT Policy and Programs (iii)

Departmental Total

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

133,092

77,278

9,713

3,152

335,094

168,073

5,940

5,747

307

127

212,455

195,921

139,032

83,025

10,020

3,279

547,549

363,994

(10,898)

(9,910)

(9,204)

(3,476)

(133,298)

(44,541)

(642)

(460)

(477)

(43)

(42,904)

(2,475)

Total Liabilities

(11,540)

(10,370)

(9,681)

(3,519)

(176,202)

(47,016)

Net Assets

127,492

72,655

339

(240)

371,347

316,978

Assets Current Assets Non-Current Assets Total Assets Liabilities Current Liabilities Non-Current Liabilities

(i)

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 3. INCOME

(a)

2007 $â&#x20AC;&#x2122;000

2006 $â&#x20AC;&#x2122;000

879,717

384,738

92,000

35,000

971,717

419,738

(1,883)

113

Revenue from Government Output appropriations: Output appropriations from continuing operations Regional Infrastructure Development Fund appropriations

Resources received free of charge or for nominal consideration: Resources received free of charge or for nominal consideration from continuing operations

Total revenue from Government (b)

113 419,851

5,933

5,078

854

842

6,787

5,920

Other revenue Trust Revenue Other Revenue Total other revenue

(c)

(1,883) 969,834

Other income Gain/(loss) on disposal of property, plant and equipment

(242)

(42)

Total other income

(242)

(42)

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 4. EXPENSES 2007 $â&#x20AC;&#x2122;000

(a)

Grants and other payments Victorian Learning and Employment Skills Commission

(373,348)

Science, Technology and Innovation Programs

(80,651)

(97,309)

Industry Programs

(64,354)

(44,956)

Regional Infrastructure Development Fund

(62,294)

(44,620)

Tourism Victoria

(29,103)

(36,465)

Drought and Bushfire Assistance packages

(19,027)

(1,550)

National Collaborative Research Infrastructure Scheme

(17,650)

Life Sciences

(11,900)

(45,200)

Provincial Victorian Growth Fund

(10,511)

(3,439)

Grand Plaza Project

(10,000)

Film Victoria

(7,788)

Marketing and Business Events

(6,000)

Living Regions Living Suburbs

(4,274)

(3,761)

Trust Grants

(3,498)

(5,720)

Maintain International Competitiveness

(2,500)

Other Programs

(2,426)

(1,941)

Major Event Programs

(2,364)

(1,004)

The Melbourne Convention and Visitors Bureau

(1,500)

Connecting Victoria

(1,372)

Victoria Major Events Company

(1,100)

Jobwatch

(902)

Workplace Rights Advocate

(675)

(568)

Victorian Endowment for Science, knowledge and Innovation program

(433)

Better Supply Chain Links

(245)

(1,088)

Synchrotron

(214)

(242)

Confucius Institute

(200)

Better Work and Family Balance

(158)

(139)

(714,487)

(289,337)

(459)

Total grants and other payments (b)

Employee benefits Termination benefits

(57,893)

(49,633)

(57,893)

(50,092)

Depreciation of non-current assets

(1,486)

(1,413)

Amortisation of non-current assets

(2,268)

(837)

Total depreciation and amortisation

(3,754)

(2,250)

Salaries and wages Total employee benefits (c)

2006 $â&#x20AC;&#x2122;000

Depreciation and amortisation

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 4. EXPENSES (continued)

(d)

2006 $â&#x20AC;&#x2122;000

Supplies and services Consultants and professional services

(42,143)

(30,577)

Accommodation expenses

(9,769)

(8,777)

Marketing and media expenses

(7,864)

(10,734)

Services provided by other Government Departments

(4,166)

Computer services and equipment

(3,543)

(2,831)

Travel and related expenses

(2,926)

(3,376)

Postage and communications

(2,072)

(1,828)

Stationery and office requisites

(1,738)

(1,409)

Educational expenses

(1,529)

(1,166)

Meeting expenses

(1,037)

(1,211)

Books and publications

(754)

(795)

Motor vehicle expenses

(650)

(729)

Audit costs

(499)

(308)

(871)

369

(79,561)

(63,372)

Finance lease costs

(131)

(83)

Total finance costs

(131)

(83)

Other expenses Total supplies and services (e)

2007 $â&#x20AC;&#x2122;000

Finance costs

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 5. RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS In December 2006 the Government issued an administrative order restructuring certain of its activities via machinery-ofgovernment changes. This machinery-of-government restructure has affected the Department of Innovation, Industry and Regional Development which as a result has relinquished the Energy Technologies Innovation Strategy activities of the Science, Technology and Innovation output and assumed the activities of the following: • The part of the Information, Communication and Technologies (ICT) Policy and Programs output administered by Multimedia Victoria transferred from the Department of Infrastructure. The Department of Infrastructure has recognised expenses and income amounting to $8.2 million and $8.4 million respectively during the period in respect of this output. The total income and expenses recognised by the Department of Infrastructure and the Department of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2007 are $25.1 million and $24.6 million respectively. The net assets transfer was treated as a contribution of capital by the Crown in compliance with the accounting requirements of Urgent Issues Group Interpretation 1038 Contributions by Owners Made to Wholly Owned Public Sector Entities and Financial Reporting Direction 2A Contributions by Owners (refer Note 1(j)). No income has been recognised by the Department in respect of the net assets transferred from the Department of Infrastructure. • The part of the Arts Portfolio Agencies output relating to Film Victoria and the Victorian Major Events Company Ltd transferred from the Department of Premier and Cabinet. The Department of Premier and Cabinet has recognised expenses and income amounting to $9.1 million and $9.5 million respectively during the period in respect of this output. The total income and expenses recognised by the Department of Premier and Cabinet and the Department of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2007 are $17.3 million and $16.9 million respectively. No net assets were transferred to the Department in respect to this output as these balances are held with the respective statutory authorities at transfer date. • The Training and Further Education output was transferred from the Department of Education. The Department of Education has recognised expenses and income amounting to $441.8 million and $441.8 million respectively during the period in respect of this output. The total income and expenses recognised by the Department of Education and the Department of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2007 are $900.6 million and $900.6 million respectively. The net assets transfer was treated as resources received free of charge in the operating statement in compliance with the accounting requirements of Urgent Issues Group Interpretation 1038 Contributions by Owners Made to Wholly Owned Public Sector Entities and Financial Reporting Direction 2A Contributions by Owners (refer Note 1(j)). Net assets assumed by the Department as a result of the assumption of these outputs are recognised in the balance sheet immediately at the carrying amount of those assets in the transferors’ (Department of Infrastructure, Department of the Premier and Cabinet and Department of Education respectively) balance sheet immediately prior to the transfer. In respect of the activities assumed, the following assets and liabilities were recognised at the date of transfer: 2007 $’000

2006 $’000

4,185

296

(79)

Output: ICT Policy and Programs Assets Receivables Property, plant and equipment Liabilities Interest bearing liabilities

(1,338)

Net assets recognised at the date of transfer

3,064

Net capital contribution from the Crown

3,064

Provisions

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 5. RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS (continued) 2007 $’000

2006 $’000

1,556

277

Output: Training and Further Education Assets Receivables Property, plant and equipment Liabilities Interest bearing liabilities

(279)

Provisions

(3,438)

Net assets recognised at the date of transfer

(1,884)

Net assets received free of charge

(1,884)

2007 $’000

2006 $’000

In respect of the activities relinquished, the following assets and liabilities were transferred:

Output: Part Science Technology and Innovation Output Related to Energy Technologies Innovation Strategy Assets Receivables Property, plant and equipment

Liabilities (100)

Net assets transferred

(15)

Net assets given free of charge

(15)

Provisions

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 6. RECEIVABLES 2007 $’000

2006 $’000

Amounts owing from Victorian Government (i)

53,664

33,614

Other receivables (ii)

15,323

5,494

Current receivables

Provision for doubtful debts (ii)

GST input tax credit receivable Total current receivables

68,987

39,108

5,606

4,975

74,593

44,083

Non-current Amounts owing from Victorian Government (i)

1,436

1,365

1,436

1,365

(i)

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. (ii) The average credit period for the provision of goods and services is 30 days. No interest is charged on other receivables. No allowance for doubtful debts has been recognised as all amounts have been determined recoverable amounts by reference to past default experience.

NOTE 7. OTHER ASSETS 2007 $’000

2006 $’000

743

205

743

205

15,000

Current Prepayments

Non Current Interest in Joint Venture (i)

(i)

On 30 June 2006, The Department entered into an agreement with Monash University to establish a joint venture, the Australian Regenerative Medicine Institute. Upon commencement of the joint venture activities in the 2006-07 financial year, the balance has been reclassified as an investment accounted for using the equity method (refer Note 10).

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 8. PROPERTY, PLANT AND EQUIPMENT Classification by ‘Purpose Group’ (i) - carrying amounts Public safety and Environment

Public Admin

Total

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

10,115

8,580

10,115

8,580

10,115

8,580

10,115

8,580

Building leasehold - at fair value (2007 valuation)

4,248

3,819

4,248

3,819

Less: Accumulated amortisation

(57)

4,248

3,762

4,248

3,762

Land Crown land - fair value (2007 valuation)

Buildings

Leasehold improvements - at cost Less: Accumulated amortisation Total land and buildings

24,499

2,545

24,558

2,604

(25)

(18)

(2,895)

(1,155)

(2,920)

(1,173)

21,604

1,390

21,638

1,431

35,967

13,732

36,001

13,773

Plant and equipment At cost

11,599

14,492

11,654

14,544

(46)

(38)

(8,487)

(11,723)

(8,533)

(11,761)

3,112

2,769

3,121

2,783

Plant and equipment under finance lease - at cost

2,992

2,095

2,992

2,095

Less: Accumulated depreciation

(640)

(275)

(640)

(275)

2,352

1,820

2,352

1,820

Total plant and equipment

5,464

4,589

5,473

4,603

Property, plant and equipment in the course of construction - at cost (ii)

154,545

161,180

154,545

161,180

195,976

179,501

196,019

179,556

Less: Accumulated depreciation

Total property, plant and equipment (i)

Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used, according to one of five ‘Purpose Groups’ based upon Government Purpose Classifications (GPC). All assets within a ‘Purpose Group’ are further subcategorised according to the asset’s ‘nature’ (i.e. buildings, plant and equipment, etc), with each subcategory being classified as a separate class of asset for financial reporting purposes. (ii) For the year ended 30 June 2007, expenditure incurred on property, plant and equipment in the course of construction includes $12.4 million on the Australian Synchrotron Project (2006 - $40.6 million) and $0 million on the Southern Cross Office Development (2006 - $5.0 million), which has transferred to the buildings leasehold during the current financial year. It is intended that the carrying value of the Synchrotron asset will be transferred during the next financial year to the Australian Synchrotron Holding Company which was established on 13 July 2007 to own the new facility.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 8. PROPERTY, PLANT AND EQUIPMENT (continued) Classification by ‘Public Safety and Environment’ Purpose Group - Movements in carrying amounts Buildings Leasehold Improvements

Opening balance

Plant and Equipment

Total

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

Additions

Disposals

Acquisitions through administrative restructures

Transfers to classified as held for sale

Net revaluation increments/decrements

Depreciation/amortisation expense

(7)

(8)

(15)

Impairment loss

Received/given free of charge

Transfers between classes

Closing balance

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 8. PROPERTY, PLANT AND EQUIPMENT (continued) Classification by ‘Public Admin’ Purpose Group - Movements in carrying amounts Crown Land at Fair Value

Opening balance

Leasehold Improvements

Buildings Leasehold

Plant and Equipment

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

8,580

1,390

2,307

3,762

3,800

2,769

2,584

Additions

2,889

394

1,801

1,592

Disposals

(115)

(92)

(5)

Acquisitions through administrative restructures

105

112

Transfers to classified as held for sale

1,535

525

Depreciation/amortisation expense

(1,755)

(554)

(39)

(38)

(1,478)

(1,405)

Impairment loss

(754)

Received/given free of charge

Net revaluation increments/ decrements

Transfers between classes Closing balance

19,090

(3)

10,115

8,580

21,604

1,390

4,248

3,762

3,112

2,769

Leased Plant and Equipment 2007 $’000

Opening balance

In Course of Construction

Total

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

1,820

947

161,180

121,676

179,501

139,894

Additions

954

1,423

12,455

45,610

18,099

49,019

Disposals

(335)

(277)

(542)

(282)

Acquisitions through administrative restructures

356

573

Transfers to classified as held for sale

(57)

(35)

(57)

(35)

2,060

(467)

(238)

(3,739)

(2,235)

(6,106)

(6,860)

Net revaluation increments/decrements Depreciation/amortisation expense Impairment loss Received/given free of charge Transfers between classes Closing balance

81 -

(19,090)

2,352

1,820

154,545

161,180

195,976

179,501

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 8. PROPERTY, PLANT AND EQUIPMENT (continued) The following useful lives of assets are used in the calculation of depreciation and amortisation: 2007 Years

Buildings leasehold

2006 Years

150

Leasehold improvements

8 to 15

8 to 10

Plant and equipment

5 to 10

1 to 3

2007 $’000

2006 $’000

Leased plant and equipment Aggregate depreciation and amortisation allocated, recognised as an expense during the year:

Buildings leasehold

Leasehold improvements

1,762

561

Plant and equipment

1,486

1,413

467

238

3,754

2,250

Leased plant and equipment

Crown land and buildings carried at fair value An independent valuation of the Department’s land and buildings leasehold was performed by the Valuer-General and Jones Lang LaSalle respectively. The valuations, which conform to Australian Valuation Standards were determined by reference to the amounts that could be exchanged between knowledgeable willing parties in an arm’s length transaction. The valuations were based on independent assessments. The effective dates of the valuations are 30 June 2007.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 9. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AND HELD FOR SALE 2007 $’000

2006 $’000

2007 $’000

2006 $’000

15,000

Non-current assets Leased Plant and Equipment held for sale (i) Total non-current assets classified as held for sale Liabilities Finance lease liabilities Total liabilities associated with assets classified as held for sale (i)

The Department holds a number of leased motor vehicles which it intends to sell in the next 12 months.

NOTE 10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in jointly controlled entities

Name of entity

Principal Activity

Country of Incorporation

Ownership Interest % (i) 2007

2006

Joint Ventures Australian Regenerative Medicine Institute (ARMI). (i)

To construct and operate a regenerative medical research facility.

Unincorporated (Australia)

Under the terms of the Joint Venture arrangement, the ownership interests of the respective joint venture partners may vary over the 5 year construction phase of the project, after which the interest of the Department will remain at 20% for the duration of the agreement. The fair value of the ownership interest held by the Department is equal to the value of cash invested in the Joint Venture which amounts to $15 million at 30 June 2007.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued) Summarised financial information of jointly controlled entities At balance date, the Department’s share of net assets and the net result after tax of its jointly controlled entities is as follows: 2007 $’000

2006 $’000

Current assets

6,789

Non-current assets

8,211

15,000

Total assets Current liabilities Non-current liabilities

Total liabilities

15,000

Total income

Net result

Net assets Share of jointly controlled entity’s net assets (i)

Share of jointly controlled entity’s result after tax (i) (i)

The jointly controlled entity’s total net assets and net result after tax are $33.1 million and $0 respectively.

Dividends received from joint ventures During the year, the Department did not received any dividends from its jointly controlled entities (2006 - $0). Contingent liabilities and capital commitments The Department’s share of the contingent liabilities, capital commitments and other expenditure commitments of its jointly controlled entities are disclosed in Notes 18 and 17 respectively. The Department is joint and severally liable for all the liabilities of ARMI which are disclosed in Note 18.

NOTE 11. INTANGIBLE ASSETS 2007 $’000

2006 $’000

Gross carrying amount

1,428

Opening balance

Additions

Transfers received free of charge

Additions from internal development

(1,434)

Impairment losses charged to net result

Closing balance

The Department capitalised development expenditure in relation to its Business Victoria website.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 12. PAYABLES 2007 $’000

2006 $’000

62,652

4,180

Current Amounts payable to other government agencies (i) Other payables (ii)

41,086

26,483

103,738

30,663

(i) Terms and conditions of amounts payable to other government agencies vary according to a particular agreement with that agency. (ii) The average credit period is 30 days. No interest is charged on late payments.

NOTE 13. INTEREST BEARING LIABILITIES 2007 $’000

2006 $’000

Current Secured: Finance lease liabilities (i) (Note 16)

1,171

772

1,171

772

Non -current Secured: Finance lease liabilities (i) (Note 16)

(i)

1,199

1,060

1,199

1,060

2,370

1,832

2007 $000

2006 $000

4,969

3,709

12,890

8,889

472

474

18,331

13,072

1,705

1,415

1,705

1,415

Secured by the assets leased.

NOTE 14. PROVISIONS

Current Employee benefits Annual leave entitlements Long service leave entitlements Other entitlements Total current provisions Non-current Employee benefits Long service leave entitlements Total non-current provisions

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 15. 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 plan(s) provides benefits based on years service and final average salary. The Department does not recognise any defined benefit liability in respect of the plan(s) 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 Stateâ&#x20AC;&#x2122;s defined benefit liabilities in its financial report. However, superannuation contributions for the reporting period are included as part of the employee benefits in the operating statement of the Department. The name and details of the major employee superannuation funds and contributions made by the Department are as follows:

Contribution for the year

Contribution outstanding at year end

Fund

2007 $000

2006 $000

2007 $000

2006 $000

Government Superannuation Scheme - revised and new

1,368

1,329

State Government Superannuation Fund

2,724

2,364

Private Funds

352

354

Various other

351

239

4,795

4,286

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 16. LEASES Finance leases Leasing arrangements Finance leases relate to motor vehicles with lease terms of between 1 and 3 years. The Department has the options to purchase the vehicles for a nominal amount at the conclusion of the lease agreements. Finance lease liabilities Present value of minimum future lease payments

Minimum future lease payments 2007 $000

2006 $000

2007 $000

2006 $000

Not longer than 1 year

1,295

869

1,171

772

Longer than 1 year and not longer than 5 years

1,262

1,122

1,199

1,060

Minimum lease payments (i)

2,557

1,991

2,370

1,832

Less future finance charges

(187)

(159)

2,370

1,832

2,370

1,832

Longer than 5 years

Present value of minimum lease payments Included in the financial statements as: Current interest bearing liabilities (Note 13)

1,171

772

Non-current interest bearing liabilities (Note 13)

1,199

1,060

2,370

1,832

(i)

Minimum future lease payments includes the aggregate of all lease payments and any guaranteed residual.

Operating leases Leasing arrangements Operating leases mainly relate to accommodation with lease terms of between 2 and 15 years. All 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. 2007 $000

2006 $000

10,014

8,075

Non-cancellable operating leases Not longer than 1 year Longer than 1 year and not longer than 5 years

50,147

43,496

Longer than 5 years

96,294

90,039

156,455

141,610

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Notes to the Financial Statements 30 June 2007

NOTE 17. COMMITMENTS FOR EXPENDITURE

(a)

2007 $000

2006 $000

Not longer than 1 year

5,696

17,873

Longer than 1 year and not longer than 5 years

5,725

Capital expenditure commitments Buildings

11,421

17,873

Not longer than 1 year

10,000

5,000

Longer than 1 year and not longer than 5 years

10,000

15,000

20,000

4,585

1,956

735

770

5,320

2,726

Not longer than 1 year

152,928

152,543

Long than 1 year and not longer than 5 years

191,203

155,456

Longer than 5 years

Departmentâ&#x20AC;&#x2122;s share of jointly controlled entityâ&#x20AC;&#x2122;s capital expenditure commitments:

Longer than 5 years

(b)

Lease commitments Finance lease liabilities and non-cancellable operating lease commitments are disclosed in note 16 to the financial statements.

(c)

Other expenditure commitments Outsourcing commitments Commitments under outsourcing contracts for Information Technology and internal audit services at the reporting date but not recognised as liabilities and payable are: Not longer than 1 year Longer than 1 year and not longer than 5 years Longer than 5 years

Grant commitments Commitments for the payment of grants under long-term contracts in existence at the reporting date but not recognised as liabilities and payable are:

Longer than 5 years

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

4,000

5,300

348,131

313,299

100

Notes to the Financial Statements 30 June 2007

NOTE 17. COMMITMENTS FOR EXPENDITURE (continue) Melbourne Exhibition and Convention Centre Development Project In May 2006, the State of Victoria entered into an agreement under its Partnerships Victoria policy for the development and maintenance of the Melbourne Exhibition and Convention Centre (MECC) facility by a private sector consortium. The private sector consortium is responsible for construction of the new facility which commenced in June 2006 and is scheduled for completion in December 2008. It is estimated as at 30 June 2007, the new facility construction costs amount to $370 million in net present value terms (including GST), or $1.2 billion (including GST) in nominal dollars after allowing for inflation, to be repaid to the private consortium over a 25 year period commencing 1 January 2009. Upon its completion, the Department will be granted a 25 year lease by the lessor the Melbourne Exhibition and Convention Centre Trust who will operate the new facility. The private sector consortium will provide services, maintenance and refurbishments in return for a fixed quarterly service payment from the State. These lease payments will be funded from dividends received from the Melbourne Convention and Exhibition Centre Trust over the 25 year lease period commencing on 1 January 2009. It is estimated that as at 30 June 2007, these future lease payments costs amount to $149 million in net present value terms (including GST), or $484 million (including GST) in nominal dollars after allowing for inflation, over the 25 year lease term. Lease commitments outstanding in relation to the MECC development project for construction of the new facility are as follows: Indexed nominal value

Not longer than 1 year Longer than 1 year and not longer than 5 years

Net present value (i)

2007 $000

2006 $000

2007 $000

2006 $000

117,587

56,934

Longer than 5 years

1,084,095

312,985

Total value of expected future commitments

1,201,682

369,919

(i)

The net present value is calculated using a discount rate of 8.14% per annum and an inflation rate of 2.5% per annum.

Operating commitments outstanding in relation to the MECC development project for services, maintenance and refurbishments are as follows: Indexed nominal value

Not longer than 1 year Longer than 1 year and not longer than 5 years

Net present value (i)

2007 $000

2006 $000

2007 $000

2006 $000

47,352

22,928

Longer than 5 years

436,568

126,040

Total value of expected future commitments

483,920

148,968

(i)

The net present value is calculated using a discount rate of 8.14% per annum and an inflation rate of 2.5% per annum.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

101

Notes to the Financial Statements 30 June 2007

NOTE 18. CONTINGENT ASSETS AND CONTINGENT LIABILITIES Note

2007 $000

2006 $000

(i)

14,000

2,000

Contingent asset Loan for bridge construction - MECC Development Project Contingent liabilities Underground water contamination - TV and Film Studio

(ii)

Debt facility

(iii)

Payment for bridge construction - MECC Development Project Share of associateâ&#x20AC;&#x2122;s/jointly controlled entityâ&#x20AC;&#x2122;s contingent liabilities

11,000

14,500

14,000

27,000

30,500

(i)

In the event that construction of bridge works to be undertaken as part of the Melbourne Exhibition and Convention Centre Development project is completed earlier than the scheduled completion date, the State has agreed to pay up to $14 million to the project company responsible for undertaking the works. Under the terms of the agreements, the payment will then be owed to the State by the City of Melbourne, who are liable for the payment for the bridge works if completed on or after the scheduled completion date. (ii) In relation to the Film and TV Studio land, the State accepts responsibility during the term of the agreement (20 years) for groundwater contamination, if required by law, unless made necessary by redevelopment, or change of use by the studio developer, Central City Studio Holdings (CCSH). The known State liability is $0.6 million subject to reaching agreement with the Environment Protection Authority. In addition, the total estimated cost of monitoring groundwater contamination over the period of the agreement may amount to $1.4 million. (iii) Supplementary project agreements reached between the State and CCSH in November 2004 permit CCSH to borrow $6 million from an external lender for further development of the studio complex, and to consolidate an existing $5 million facility (total $11 million external debt). The agreements include a Tripartite Agreement between CCSH, an external lender, and the State in relation to the $11 million debt facility (2006 - $14.5 million). The State will have the option to either pay out, or take over, the facility in the extreme event of default by CCSH.

Unquantifiable Contingent liabilities In relation to the Film and TV Studio land, the State accepts liability for costs in excess of $1.0 million relating to pre-existing contamination (including the costs of initial remediation). None of the above contingent liabilities are secured over any of the assets of the Department.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

102

Notes to the Financial Statements 30 June 2007

NOTE 19. FINANCIAL INSTRUMENTS (a) Financial risk management objectives The Department’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, and interest rates. The Department does not enter into derivative financial instruments to manage its exposure to interest rate and foreign currency risk. The Department does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The policies for managing these risks are discussed in more detail below. (b) Significant accounting policies 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, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 of the financial statements. (c) Interest rate risk The Department’s exposure to interest rate risk is as follows:

2007

Weighted average effective interest rate %

Variable interest rate $’000

Less than 1 year $’000

50,000

6.27

50,000

100,000

Maturity dates

1-2 years $’000

2-3 years

3-4 years

Noninterest bearing $’000

Over 4 years $’000

Total $’000

Financial assets Cash and cash equivalents Investments Trade and other receivables

209,701

259,701

50,000

76,029

285,730

385,730

Financial liabilities Payables Finance Lease Liabilities

103,738

6.78

1,171

856

343

2,370

1,171

856

343

103,738

106,108

Weighted average effective interest rate %

Variable interest rate $’000

Less than 1 year $’000

Cash and cash equivalents

Trade and other receivables

2006

Maturity dates

1-2 years $’000

2-3 years

3-4 years

Noninterest bearing $’000

Over 4 years $’000

Total $’000

Financial assets -

123,750

45,448

169,198

30,663

Financial liabilities Payables Finance Lease Liabilities

6.35

772

598

462

1,832

772

598

462

30,663

32,495

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

103

Notes to the Financial Statements 30 June 2007

NOTE 19. FINANCIAL INSTRUMENTS (continued) (d) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Department. The Department has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Department measures credit risk on a fair value basis. The Department does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high creditratings assigned by international credit-rating agencies. The carrying amount of 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 any collateral obtained. (e) Fair Value Management consider that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values. The fair values and net fair values of financial assets and financial liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices; and • the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. Fair value is estimated using a discounted cash flow model, which includes some assumptions that are not supportable by observable market prices or rates. Changes in these assumptions do not significantly change the fair value recognised. The Department considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values.

NOTE 20. CASH FLOW INFORMATION (a) Reconciliation of cash For the purpose of the Cash Flow Statement, cash includes cash on hand and in bank, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the Cash Flow Statements is reconciled to the related items in the balance sheet as follows:

Cash and cash equivalents disclosed in the balance sheet (i) Investments (ii) Funds held in trust (Note 26(b))

2007 $000

2006 $000

(44)

153

50,000

209,745

123,597

259,701

123,750

(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 a department from the generation of revenue 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. At 30 June 2007, cash at bank includes the amount of a notional shortfall for the payment of unpresented cheques of $334,065 (2006 - $344,742). (ii) These investments held by the Department at balance date can only be used to finance the operations of the Synchrotron facility over the next 5 years in accordance with the terms of Australian Synchrotron deed of agreement signed with the Commonwealth Government.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

104

Notes to the Financial Statements 30 June 2007

NOTE 20. CASH FLOW INFORMATION (CONTINUED) (b) Non cash financing and investing activities

Restructuring of administrative arrangements (i) Acquisition of plant and equipment by way of finance lease (i)

2007 $000

2006 $000

3,064

954

1,423

4,018

1,423

During the reporting period the Department restructured administrative arrangements. This restructure resulted in the Department assuming net assets of $3.1million (2006 - $nil). Details with respect to the restructuring of administrative arrangements are set out in Note 5. This restructuring is not reflected in the cash flow statement.

Net result for the reporting period

2007 $000

2006 $000

35,833

8,344

180

8,298

3,754

2,250

Non-cash movements: Gain/(loss) on sale or disposal of non-current assets Depreciation and amortisation Provision for doubtful debts Impairment of non-current assets Resources provided free of charge or for nominal consideration Other non-cash items

1,868

(4)

(70)

(30,475)

(11,272)

(567)

(987)

Movements in assets and liabilities (Increase)/decrease in current receivables (Increase)/decrease in other current assets (Increase)/decrease in non current receivables

(71)

Increase/(decrease) in current payables

73,091

12,938

Increase/(decrease) in current provisions

3,597

6,338

(9,313)

87,290

16,526

Increase/(decrease) in non current provisions Net cash flows from/(used in) operating activities

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

105

Notes to the Financial Statements 30 June 2007

NOTE 21. MOVEMENTS IN EQUITY

(a)

2007 $000

2006 $000

6,142

4,082

6,142

4,082

Balance at beginning of financial year

4,082

Revaluation increment/(decrements)

2,060

6,142

4,082

198,980

138,371

13,439

60,609

(27)

Reserves Asset revaluations Asset revaluation reserve (i)

Share of increments in reserve attributable to jointly controlled entities Balance at end of financial year (b)

Contributions by Owners Balance at beginning of the financial year Capital transactions with the State in its capacity as owner arising from: Appropriations Withdrawal of equity (ii)

3,064

16,476

60,609

215,456

198,980

Balance at beginning of the financial year

113,916

105,572

Net result

35,833

8,344

149,749

113,916

Net capital contributions upon restructure (Note 5) Balance at end of financial year (c)

Accumulated surplus

Balance at end of financial year

(i) The asset revaluation reserve arises on the revaluation of land and buildings leasehold. (ii) Equity is withdrawn on transfer of the carrying value of assets sold where the sale proceeds are required to be paid into the Consolidated Fund.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

106

Notes to the Financial Statements 30 June 2007

NOTE 22. ADMINISTERED ITEMS In addition to the specific Departmental operations which are included in the balance sheet, operating statement and cash flow statement, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues include appropriations (payments made on behalf of the State), fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered assets include Government revenues earned but yet to be collected. Table continues on page 46 Developing Innovative Industries (i)

Investment Attraction

Trade Development

Marketing Victoria

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

2007 $’000

2006 $’000

(12)

(46)

(4)

(12)

Interest Income

(1,248)

Commonwealth grants

(65)

177

Administered income Sale of goods and services

Other grants Total administered income

(5,000)

(12)

(1,294)

(69)

177

(5,012)

(13)

1,174

(58)

(180)

4,509

(93,221)

(326)

1,431

Administered expenses Payments into the Consolidated Fund Doubtful debts Interest expense

Other Expenses

(5)

(21)

(1)

Total expenses

(18)

848

1,352

(181)

4,509

(93,221)

(1)

13,823

14,050

(1)

Administered assets Receivables Loans

32,026

30,789

Trust funds

(6)

(35)

(105)

(3)

(7)

Total administered assets

(7)

45,814

44,734

(3)

(8)

(1)

(5)

(93,221)

(1)

(5)

(93,221)

Administered Liabilities Creditors and Accruals Unearned Income (iv) Total administered liabilities (i)

Includes part of the Arts Portfolio Agencies output in relation to Film Victoria and the Victorian Major Events Company Ltd from 1 January 2007 to 30 June 2007 and part of the Science Technology and Innovation output related to ETIS from 1 July 2006 to 31 December 2006. (iv) Balance represents contribution received from the developer in relation to the MECC development project. The associated revenue will recognised progressively over the life of the project.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

107

Notes to the Financial Statements 30 June 2007

NOTE 22. ADMINISTERED ITEMS (continued) Table continued from page 45 Regional Development

Training and Further Education (ii) 2007 $’000

ICT Policy and Programs (iii)

2007 $’000

2006 $’000

2007 $’000

(26)

Departmental Total

2006 $’000

2007 $’000

2006 $’000

(100)

(1,248)

Administered income Sale of goods and services Interest Income Commonwealth grants

(65)

177

Other grants

(5,000)

(26)

(6,413)

199

(18)

5,728

(93,490)

Total administered income Administered expenses Payments into the Consolidated Fund Doubtful debts

(326)

1,431

Interest expense

Other Expenses

(5)

(32)

Total expenses

(23)

5,402

(92,091)

(1)

13,820

14,050

Administered assets Receivables Loans

32,026

30,789

Trust funds

(23)

(74)

(105)

Total administered assets

(24)

45,772

44,734

(3)

(9)

Administered Liabilities Creditors and Accruals Unearned Income (iv) Total administered liabilities

(93,221)

(3)

(93,230)

(93,221)

(ii) Training and Further Education output balances from 1 January 2007 to 30 June 2007. (iii) Includes part of the ICT Policy and Programs output administered by Multimedia Victoria from 1 January 2007 to 30 June 2007. (iv) Balance represents contribution received from the developer in relation to the MECC development project. The associated revenue will recognised progressively over the life of the project.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

108

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

437,701

414,822

35,000

140,737

239,085

2006 $000

78,207

2007 $000

2006 $000

Advance from Treasurer

2007 $000

2006 $000

Section 3(2)

2007 $000

Section 29

177

2006 $000

(1,640)

1,640

2007 $000

5,273

2006 $000

(5,273)

Section 30

15,150

7,180

7,970

2007 $000

2006 $000

70,205

26,745

43,460

Section 32

Financial Management Act 1994

16,666

2007 $000

2006 $000

119,736

15,000

104,736

Section 35

483,965

1,300

482,665

2007 $000

2006 $000

Administrative Arrangements Order

Administrative Arrangements Act 1983

1,031,754

92,000

21,403

918,351

2007 $000

604,940

35,000

177,209

392,731

2006 $000

Total Parliamentary Authority

985,156

92,000

13,439

879,717

2007 $000

480,347

35,000

60,609

384,738

2006 $000

Appropriations Applied

46,598

7,964

38,634

2007 $000

7,993

2006 $000

124,593

116,600

Variance

(i) The variance is primarily related to the agreed changes to cash flows for committed projects to be delivered in the next financial year. (ii) The variance for the financial year ended 30 June 2006 is primarily related to the Melbourne Exhibition and Convention Centre (MECC) development project being delivered as a Partnerships Victoria project. Accordingly, the Department did not require the associated Additions to net assets funding of $109.4 million during the year. Commencing in 2008/09, the Department will receive an output appropriation to meet the future expenditure commitments associated with the project (refer Note 17).

Total

Payments made on behalf of the State

Administered

92,000

14,563

Additions to net assets

Regional Infrastructure Development Fund

331,138

Provision of outputs

Controlled

2007 $000

Annual Appropriation

Appropriation Act

The following table discloses the details of the various parliamentary appropriations received by the Department for the year. In accordance with Accrual Output-based Management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

NOTE 23. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY APPROPRIATIONS

Notes to the Financial Statements 30 June 2007

109

Notes to the Financial Statements 30 June 2007

NOTE 24. EX-GRATIA PAYMENTS 2007 $000

2006 $000

The Department has made the following ex-gratia payments: Ex-gratia payments

NOTE 25. ANNOTATED RECEIPTS AGREEMENTS The following is a listing of Section 29 Annotated Receipt Agreements approved by the Treasurer. Actual 2007 $000

2006 $000

177

Commonwealth Specific Purpose Payments Net Appropriation Agreement - Tradestart

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

110

Notes to the Financial Statements 30 June 2007

NOTE 26. TRUST ACCOUNT BALANCES (a) Net asset trust balances The following is a list of trust account balances relating to trusts controlled by the Department. Each of these trust fund balances are stated in terms of the net asset position of each trust and include all assets and liabilities of each trust account. Opening Balance $’000

Revenue $’000

Expense $’000

Closing Balance $’000

Community Regional Industry Skills Program

2,317

1,375

(936)

2,756

Science and Technology Research and Development Fund

2,630

595

(524)

2,701

Victorian Greenhouse Strategy Funds

999

(658)

341

E-Commerce Program Trust

597

(240)

357

Victorian Government Business Office

916

200

(476)

640

Youth Employment Scheme

225

(85)

141

Infrastructure Precincts

314

Recoup trusts

101

2007 Department Working Trust Account Coode Island Remediation Fund

Business Sustainability

Melbourne Major Events

440

1,055

(1,198)

297

1,033

(17)

(909)

107

(99)

Real Estate Agents Guarantee Fund Energy Technology Innovation Strategy Werribee Project

103

Centre for Energy and Greenhouse Technologies

(41)

Dubai Education and Health Development Manager Trust

(35)

AAV Communique Trust

(27)

Australian Technology Showcase

COMS 2007 Conference

(17)

185

119

(304)

STI Awareness

(66)

ICT Skills

(57)

Project Funds

(17)

Reducing the Regulatory Burden

450

Melbourne 50 Years On

152

(138)

National Manufacturing Forum

450 14

Ezybiz

699

(402)

297

Greening Our Automotive Industry

300

Data Centre Consolidation

225

(225)

Commonwealth Trust Account Business Licensing Project

(89)

Business Licence Centre

(46)

114,887

100,634

(63,303)

152,218

438

450

44,500

Regional Infrastructure Development Fund Revenue Clearing Account Australian Synchrotron Contributions Fund

102

(141)

125,703

150,462

(70,033)

206,132

Treasury Trust

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

111

Notes to the Financial Statements 30 June 2007

NOTE 26. TRUST ACCOUNT BALANCES (continued) Opening Balance $’000

Revenue $’000

Expense $’000

Closing Balance $’000

Coode Island Remediation Fund

3,679

360

(4,039)

Community Regional Industry Skills Program

1,917

1,375

(975)

2,317

Science and Technology Research and Development Fund

1,400

1,351

(121)

2,630

Victorian Greenhouse Strategy Funds

2006 Department Working Trust Account

1,195

(196)

999

E-Commerce Program Trust

627

(30)

597

Victorian Government Business Office

300

616

916

Youth Employment Scheme

269

(70)

225

ALCOA IDC

260

(260)

Infrastructure Precincts

250

314

Recoup trusts

146

(95)

101

Business Sustainability

134

(86)

Melbourne Major Events

125

930

(615)

440

Real Estate Agents Guarantee Fund

112

1,661

(740)

1,033

Energy Technology Innovation Strategy

Werribee Project

103

Australian Technology Showcase

(55)

Small Business Victoria Special Projects

(61)

Centre for Energy and Greenhouse Technologies

Dubai Education and Health Development Manager Trust

AAV Communique Trust

Premiers Food Victoria Awards

(11)

COMS 2007 Conference

(28)

National Manufacturing Forum

196

(11)

185

STI Awareness

(54)

Commonwealth Trust Account Business Licensing Project Business Licence Centre Regional Infrastructure Development Fund

100,136

60,570

(45,819)

114,887

Revenue Clearing Account

438

Treasury Trust

367

(267)

102

111,918

67,318

(53,533)

125,703

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

112

Notes to the Financial Statements 30 June 2007

NOTE 26. TRUST ACCOUNT BALANCES (continued) (b) Trust Account cash balances The following is a list of cash held in trust account balances relating to trusts controlled and administered by the Department.

(i)

2006 $’000

11,720

8,436

136

Controlled trusts Department Working Trust Account Commonwealth Trust Account Regional Infrastructure Development Fund

152,903

114,418

Treasury Trust Account

172

102

Revenue Clearing Account

450

505

Australian Synchrotron Contributions Fund Total controlled trusts (Note 20(a)) (ii)

2007 $’000

44,500

209,745

123,597

Administered trusts Public Service Commuters Club Trust

Total administered trusts (Note 22)

(74)

(105)

(74)

(105)

The Department portion of the Public Service Commuter Club Trust is temporarily in deficit due to the timing difference between the purchase of travel tickets and reimbursement from employees. The Trust’s working capital is funded by the Department of Treasury and Finance and the overall trust balance is in surplus. (c) Trust accounts opened and closed during 2007 The Australian Synchrotron Contributions Trust was established in 2006-07 by the Department to receive moneys from the Commonwealth, State or other sources and disburse these funds in accordance with the Australian Synchrotron deed of agreement. The Department closed its Commonwealth Trust account during the current financial year.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

113

Notes to the Financial Statements 30 June 2007

NOTE 27. RESPONSIBLE PERSONS In accordance with the Directions of 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 above positions in the Department are as follows (i): Minister for State and Regional Development

The Hon John Brumby, MP

1 July 2006 to 4 December 2006

Minister for Regional and Rural Development

The Hon John Brumby, MP

5 December 2006 to 30 June 2007

Minister for Innovation

The Hon John Brumby, MP

1 July 2006 to 30 June 2007

Minister for Manufacturing and Export

The Hon Andre Haermeyer MP

1 July 2006 to 4 December 2006

Minister for Financial Services Industry

The Hon Andre Haermeyer MP

1 July 2006 to 4 December 2006

Minister for Small Business

The Hon Andre Haermeyer MP

1 July 2006 to 4 December 2006

Minister for Industrial Relations

The Hon Rob Hulls, MP

1 July 2006 to 30 June 2007

Minister for Small Business

The Hon Theo Theophanous MLC

5 December 2006 to 30 June 2007

Minister for Industry and State Development

The Hon Theo Theophanous MLC

5 December 2006 to 30 June 2007

Minister for Tourism

The Hon John Pandazopoulos, MP

1 July 2006 to 4 December 2006

Minister for Tourism

The Hon Tim Holding MP

5 December 2006 to 30 June 2007

Minister for Information and Communication Technology

The Hon Tim Holding MP

5 December 2006 to 30 June 2007

Minister for Skills, Education Services and Employment

The Hon Jacinta Allan MP

5 December 2006 to 30 June 2007

Secretary

Ms Fran Thorn

1 July 2005 to 18 March 2007

Acting Secretary

Mr Warren Hodgson

19 March 2007 to 30 June 2007

(i)

The Administrative Arrangements Order to restructure the functions of the Department is effective from 5 December 2006, however, under the terms of this Order, the financial balances do not transfer until 1 January 2007 (refer Note 5).

Remuneration Remuneration received or receivable by the Accountable Officers in connection with the management of the Department during the reporting period was in the range: $340,000 - $349,999 (2006 - $290,000 - $299,999). 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. Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.

NOTE 28. REMUNERATION OF AUDITORS 2007

2006

$’000

113

Victorian Auditor General’s Office

Audit or review of the financial report

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

114

Notes to the Financial Statements 30 June 2007

NOTE 29. REMUNERATION OF EXECUTIVES The numbers of executive officers, other than Ministers and the Accountable Officers, and their total remuneration during the reporting period 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 of executive officers is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. For disclosure purposes, the numbers shown in the remuneration bands below include executives which have transferred to the Department from the Department of Infrastructure and the Department of Education based on their full year remuneration. The base and the total dollar amount paid only includes payments made to these executives by the Department from 1 January 2007. Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract. A number of these contract completion bonuses became payable during the year. A number of executives officers retired, resigned or were retrenched in the past year. This has had a significant impact on total remuneration figures due to the inclusion of annual leave, long service leave and retrenchment payments. The remuneration paid to executives of Tourism Victoria are not reported in the details below but are included as part of the Financial Statements of that agency. Total Remuneration Income Band

2007 No.

Base Remuneration 2006 No.

2007 No.

2006 No.

$0 - $9,999

$100,000 - 109,999

$110,000 - 119,999

$120,000 - 129,999

$130,000 - 139,999

$140,000 - 149,999

$150,000 - 159,999

$160,000 - 169,999

$170,000 - 179,999

$180,000 - 189,999

$190,000 - 199,999

$200,000 - 209,999

$210,000 - 219,999

$220,000 - 229,999

$230,000 - 239,999

$240,000 - 249,999

$250,000 - 259,999

6,020

5,054

5,728

4,824

Total numbers Total amount ($â&#x20AC;&#x2122;000)

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ACCOUNTABLE OFFICERâ&#x20AC;&#x2122;S AND CHIEF FINANCE OFFICERâ&#x20AC;&#x2122;S DECLARATION

We certify that the attached financial statements for the Department of Innovation, Industry and Regional Development have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement of Recognised Income and Expense, Cash Flow Statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2007 and financial position of the Department as at 30 June 2007. We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

W. Hodgson Secretary Department of Innovation, Industry and Regional Development

J. Hall Chief Finance Officer Department of Innovation, Industry and Regional Development

Melbourne 29-Aug-07

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Notes to the Financial Statements 30 June 2007

AUDITOR-GENERALâ&#x20AC;&#x2122;S REPORT (continues on page 66)

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117

Notes to the Financial Statements 30 June 2007

AUDITOR-GENERALâ&#x20AC;&#x2122;S REPORT (continued)

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118

Department of Innovation, Industry and Regional Development Annual Report 2006â&#x20AC;&#x201C;2007

CONTENTS

Administrative Structure of the Department

121

Workforce Information

121

Consultancies

123

Freedom of Information

124

Implementation of the Victorian Industry Participation Policy

126

Office-based Environmental Impacts

128

Disclosure of Major Contracts

132

Compliance with the Building Act 1993

132

Declaration of Pecuniary Interest

132

Shares Held by Senior Officers in a Statutory Authority or Subsidiary 132 Financial Review of Operations and Financial Conditions

133

Grants and Related Assistance

134

Investment and Industry Related Grants

134

Business Development Grants

135

Regional Development Victoria (RDV) Grants

151

Policy Grants

171

Industrial Relations Grants

172

Science, Technology and Innovation Grants

173

Multimedia Victoria

180

Graduate Recruitment and Retention

187

Selection on Merit and Exemptions from Advertisement

187

Superannuation Scheme

187

Issue Resolution

187

Upholding Public Sector Conduct

187

Occupational Health and Safety

188

Workplace Diversity Initiatives

188

Youth Employment Scheme

188

Disability Action Plan

188

Disclosure Index

189

Major Acts of Parliament Administered

191

Progress in Implementing National Competition Policy

192

Disclosures Made Under the Whistleblowers Protection Act 2001

192

Whistleblowers Protection Act 2001

192

Summary of Additional Information Available on Request

203

Budget Portfolio Outcomes

204

Output Groups

212

Contact Details

221

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

120

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

ADMINISTRATIVE STRUCTURE OF THE DEPARTMENT The organisational structure of the Department is outlined on pages 10-11 in section one of this report. It is also available on the DIIRD website at www.diird.vic.gov.au.

WORKFORCE INFORMATION Ongoing Employees

Fixed Term & Casual Employees

Total Employees

Full time headcount

Part time headcount

Total headcount

Total (FTE)

June – 06

553

587

574.40

86.30

660.70

June – 07

714

772

750.55

117.90

868.45

June – 06

Ongoing Employees

June – 07 Fixed Term & Casual Employees

Ongoing Employees

Fixed Term & Casual Employees

June – 07 Totals

Headcount

FTE

Headcount

FTE

Male

277

276.10

33.00

348

347.00

45.10

392.10

Female

310

297.30

54.30

424

403.55

72.80

476.35

13.00

15.80

18.00

20.80

38.80

Gender

Age Under 25 25-34

139

135.10

41.80

176

172.10

47.00

219.10

35-44

158

150.30

16.50

206

192.29

25.50

217.79

45-54

198

197.10

7.40

242

239.36

15.10

254.46

55-64

73.90

5.80

120

118.80

9.50

128.30

4.00

0.00

10.00

0.00

10.00

VPS1

1.00

5.00

1.00

5.00

6.00

VPS2

33.20

10.80

43.00

16.80

59.80

VPS3

119

116.20

16.80

131

125.70

23.00

148.70

VPS4

82.30

23.00

124

121.39

23.80

145.19

Over 64 Classification

VPS5

136

131.40

11.90

200

193.86

29.40

223.26

VPS6

166

163.30

14.80

210

204.60

13.90

218.50

STS Executives Other

5.00

2.00

6.00

2.00

8.00

39.00

0.00

54.00

0.00

54.00

2.00

3.00

1.00

4.00

5.00

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

WORKFORCE INFORMATION

June – 06

June – 07

Ongoing Employees

Fixed Term & Casual Employees

Headcount

FTE

87.60

18.50

Business Support

85.30

Corporate Services

89.70

Economic Policy & Planning

Industrial Relations

36 4

Business Development

Innovation Economy Advisory Board Invest Victoria

Fixed Term & Casual Employees

Headcount

FTE

93.29

10.50

103.79

17.00

85.80

20.00

105.80

6.00

89.60

13.00

102.60

29.60

7.00

29.80

5.00

34.80

35.60

6.80

34.20

5.90

40.10

4.00

0.00

4.00

0.00

4.00

25.60

3.80

26.90

4.80

31.70

41.96

7.80

49.76

3.40

0.00

3.00

1.00

4.00

124

119.80

18.90

138.70

Multimedia Victoria Office Of Secretary

June – 07 Totals

Ongoing Employees

Office of Training &Tertiary Education Regional Develop Vic Small Business Communications Strategic Communication

101

99.20

2.40

103

101.00

5.60

106.60

8.40

3.00

8.20

2.00

10.20

2.80

1.00

7.80

3.60

11.40

Tourism Victoria

102

100.20

20.80

106

102.20

18.80

121.00

2.00

1.00

3.00

1.00

4.00

Workplace Rights Advocate

868.45 Notes: Jun-2006 employees reported with a classification ‘Others Fixed Term’ are: Agent-General London (1FTE); Small Business Commissioner (1FTE); Workplace Rights Advocate (1FTE) Jun-2006 employees reported with a classification ‘Others Ongoing’ are: 2 (FTE) Ministerial Drivers Jun-2007 employees reported with a classification ‘Others Fixed Term’ are: Agent-General London (1FTE); Small Business Commissioner (1FTE); Workplace Rights Advocate (1FTE); Chief Executive RDV (1 FTE) Jun-2007 employees reported with a classification ‘Others Ongoing’ are: 1 (FTE) Ministerial Driver

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

122

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

$120,000 $186,780

$220,000

$225,500 $250,000 $275,000 $385,000 $440,000 $450,000 $2,970,000

Investigation of telecommunications backhaul services & markets in regional Victoria

Creation of a three-year ICT strategy plan for DIIRD

To provide financial and commercial advice as part of the development of a business case for the proposed stages 2 & 3 of the Automotive Centre of Excellence (ACE) at Docklands

To undertake a study into the impacts of an Australia-China free trade agreement on Victoria

Undertake the Tourism Online Strategy

Victorian financial services consultancy and strategic plan

Strategic advice in relation to the state’s discussions with Alcoa

Development of strategic plan for Werribee technology precinct

Undertake research and provide advice to support a Broadband Connect project

Advice in relation to an investment proposal

Provide financial and consulting services and advice in relation to an investment proposal

Gibson Quai-AAS Pty Ltd

Deloitte Touche Tohmatsu

Ernst & Young

Centre For International Economics

Deloitte

Deloitte Touche Tohmatsu

Carnegie Wylie & Company

Daryl Jackson Pty Ltd

KPMG

KPMG Australia

Value of Consultant Expenditure $100,000 and Under

Number of Consultants $100,000 and Under

Engagement of Consultants $100,000 and under for 2006 – 2007 (inc. GST)

$116,620

Pilot of the Design Ready Program

Dandolo Partners

$2,436,118

$5,967,500

$223,000

$105,600

Economic impact of Australia’s aviation policy

Access Economics

Approved Cost (incl GST)

Purpose of Consultant

Name of Consultant

Engagement of Consultants in excess of $100,000 for 2006 – 2007

$2,202,066

Not Completed

$449,937

Not Completed

$385,000

Not Completed

$242,248

$225,500

$223,340

$220,000

$186,780

$45,381

$118,281

$105,600

End Cost (incl GST)

$2,194,982

$758,456

$44,000

$183,260

$242,248

$225,500

$145,171

$220,000

$107,085

$45,381

$118,281

$105,600

Expenditure 06/07 (incl GST)

$2,743,284

$2,211,544

$440,000

$91,740

Future Commitments

Not Completed

01-Jul-06

Not Completed

13-Mar-07

Not Completed

04-Jun-07

22-Feb-07

18-Dec-06

01-Feb-06

01-Sep-06

31-May-07

22-Jun-07

19-Dec-06

Completed

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

CONSULTANCIES

123

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

FREEDOM OF INFORMATION Requests for documents under the Freedom of Information Act 1982 (FoI Act) commonly related to policy matters, programs, projects, proposals, consultancies and contracts. In 2006-07, the Department (including Tourism Victoria) received 37 requests for access to information. In response, the Department provided either partial or full access to information on 17 occasions. In two instances the Department was not in possession of any documents relevant to the requests lodged by the applicants. Only three requests were denied any access. Twelve requests were either withdrawn, transferred to other agencies or did not proceed due to other factors. As at 30 June 2007, seven requests remain ongoing. In 2006-07, no decisions were reviewed internally under section 51 of the FoI Act. No appeals were lodged with the Victorian Civil and Administrative Tribunal (VCAT) and no complaints were referred to the Ombudsman. Making a request The FoI Act gives members of the public the right to apply for access to information in documentary form held by the Department and portfolio ministers. Documents that are maintained in the possession of the Department include: • cabinet documents • documents prepared for briefing the Premier • internal working papers of the Department • correspondence from Ministers and Members of Parliament, government departments and agencies, members of the public and the private sector • records relating to accounts • personnel records. The Department maintains an extensive filing system (comprised of accounting, personnel and departmental records). The system is required under the various acts for which each portfolio minister is responsible, and is based on the functions outlined in this report.

Assistance in determining the categories of documents relevant to a request can be provided by the FoI officer. It should be noted that certain documents are destroyed or transferred to the Public Record Office in accordance with the Public Records Act 1973. An applicant may request photocopies of documents and/or inspect specific documents at the Department by arrangement, or by other access arrangements as may be appropriate to the application. Section 21 of the Act requires that all reasonable steps be taken to enable an applicant to be notified of a decision concerning the release of documents as soon as practicable. It must be no later than 45 days after the day on which the request is received by the Department. Under the FoI Act, the Department must release a document unless it is exempt. Documents can be exempt in full or exempt parts can be deleted with the remainder of the document released. The Department will notify the applicant of his or her appeal rights if access is denied to a document or to part of a document. The FoI Act outlines general categories of information that are exempt. This includes information relating to the personal affairs of third parties, information provided in confidence, information that if released might endanger the lives or physical safety of individuals, cabinet documents, commercial-in-confidence information, and internal working documents - the release of which would be contrary to the public interest. Decisions are made under the FoI Act by the Secretary of the Department, or in line with arrangements made by the Secretary as required under Sections 26 and 51 of the FoI Act. Decision making powers and other powers affecting members of the public are found in the legislation administered by the portfolio ministers. Acts administered by the portfolio ministers are listed in the appendices. Charges under the Freedom of Information Act Section 22 of the Act outlines the principles for the levy or waiver of charges required to be paid by an applicant to the Department, before access to a document is given. Charges are: • photocopy fee – 20 cents per A4 page

Requests for access to documents Access to documents (as defined in section 5 of the Act) may only be obtained through a request in writing (under section 17 of the Act) addressed to the Department’s FoI officer.

• search fee – $20 per hour or part thereof • supervision fee – $5 per 15 minutes or part thereof (where a document is inspected by an applicant)

Applications should be as specific as possible to enable the FoI officer to identify relevant documents as quickly and efficiently as possible. A $22.00 FoI application fee should accompany each request. The application fee may be waived in cases where payment would cause an applicant financial hardship. Where an applicant seeks a waiver of this fee, the request should indicate the grounds on which a waiver is being sought (for example, low income).

• deposits – a deposit of $25 may be required if the calculated charge is less than $100, or a deposit of 50 per cent of the calculated charge, where that charge exceeds $100. Some charges may be waived in certain circumstances, for example, if an applicant on a low income requests access to a document relating to his or her personal affairs.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

FREEDOM OF INFORMATION (continued) Contact details The Department’s Principal Officer is Warren Hodgson, Acting Secretary Department of Innovation, Industry and Regional Development. The FoI team can be contacted about any enquiries regarding FoI requests, the Victorian Freedom of Information Act, and various regulations made under that Act. Further information about lodging a request under the FoI Act is available on the Department’s website at www.diird.vic.gov. au, and on the FoI Online website at www.foi.vic.gov.au. The FoI Officer contact details are: GPO Box 4509, Melbourne VIC 3001 Tel: 03 9651 9749 or 03 9651 9554 Fax: 03 9651 9129 Email: foi@iird.vic.gov.au Information privacy The Department and agencies are committed to respecting and protecting the privacy of personal information and health records. The Information Privacy Act 2000 (IP Act) aims to increase public confidence in the Government’s ability to protect and manage the personal information that it collects and stores. It also promotes the free and appropriate exchange of information in the community. The IP Act came into effect on 1 September 2001 and contains the following 10 information privacy principles (IPPs), which became enforceable on 1 September 2002: Principle 1 If you collect and handle other people’s personal information, collect only what you need. Do it lawfully and fairly. Don’t intrude unreasonably. And tell people you are doing it. Principle 2 Use and disclose people’s personal information only for the purpose you collected it, or a related purpose they would reasonably expect. Some important interests, such as protecting health and safety or a legal requirement, can justify use and disclosure without consent. Otherwise, seek consent. Principles 3 and 4 Ensure information is accurate, complete, up-to-date and secure. Principle 5 Be open about what you do with other people’s information. Principle 6 Let people see their information and correct it if necessary.

Principle 9 If you let people’s information travel to others, make sure the privacy protection travels with it. Principle 10 Sensitive information about people – like their ethnic background, religion, political views, sexual preference or criminal record – has special protection under law. Don’t collect it without checking the rules first. The Health Records Act 2001 (HR Act), which came into force on 1 July 2002, aims to protect the privacy of health information and establishes standards in the form of 11 Health Privacy Principles (HPPs). These principles regulate the collection, handling and disposal of health information in public and private sectors. This includes health service providers and other organisations that handle health information. Privacy complaints in 2006-07 The Department received one privacy complaint during the reporting period. The Determining Officer confirmed a breach in relation to Information Privacy Principles two and four. The complaint was subject to successful internal conciliation, including a procedure review and amendment and privacy training. Privacy awareness The Department held two rounds of internal privacy awareness training in October 2006 and March 2007. The Department also provided a number of tailored privacy awareness training sessions to specific program areas. Privacy awareness also continued to be included in the Department’s induction process for new officers, and was expanded to include officers on short-term contracts and agency staff. Further information The Department has developed Information and Health Records Privacy Policies. A copy of the policies can be obtained by contacting: Privacy Officer Department of Innovation, Industry and Regional Development Level 31, 121 Exhibition Street Melbourne VIC 3000 Tel: 03 9651 9749 or 03 9651 9554 Fax: 03 9651 9129 Email: privacy@iird.vic.gov.au More information on privacy is available on the following websites:

Principle 7 Minimise creating and sharing ID numbers that can be used to match your information about people with information about them from other sources. Principle 8 In many situations there is no need to seek people’s personal information. People can often deal with each other anonymously.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

• Victorian Privacy Commission www.privacy.vic.gov.au • Health Services Commissioner www.health.vic.gov.au/hsc • Federal Privacy Commission www.privacy.gov.au

125

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

IMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY New Number of grants

Regional/ Metropolitan/ State

Investment Attraction Grants

1/2/0

74.1

615

50-85%

Science, Technology and Innovation Infrastructure Grants

0/1/0

70%

Contracts/Grants

Value (mil)

% Local Content

Jobs

Skills

• Staff training • Skills transfer in design and manufacturing capabilities The Monash Centre for Electron Microscopy (MCEM) is a central university research facility that: • Conducts research in electron microscopy and atom probe microscopy. • Provides advanced instrumentation, expertise and training in electron microscopy and atom probe microscopy The new, dedicated MCEM building provides exceptional mechanical, acoustic, thermal and electro-magnetic stability necessary to operate ultra-high resolution microscopes. Design and construction of the MCEM facility has provided the architects, construction company and sub-contractors with an opportunity to gain valuable new skills necessary to support development of this class of state-of-the-art building. Regional Infrastructure Development Grants

9/0/0

16.21

211

85%

Other Contracts

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

IMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY Completed Contracts/Grants

Investment Attraction Grants Science, Technology and Innovation Infrastructure Grants

Number of grants

Regional/ Metropolitan/ State

Value (mil)

Jobs

% Local Content

Skills

2/0/0

3.4

391

Not reported

• Staff training – especially in the skilling of previously unemployed regional Victorians

0/2/0

3.2

722

90%

• Training postgraduate students and postdoctoral scientists in a range of biomedical disciplines. Provision of lectures (app. 50) to undergraduate and secondary school students. Technology Transfer • Engaged in a number of commercial R&D ventures through the spin-off developments or licensing arrangements with large multinational pharmaceutical companies. • Training postgraduate students in a range of biomedical disciplines. • Raising public awareness through public health seminars. Technology Transfer • Engaged in a number of commercial ventures through the spin-off developments or licensing arrangements with large multinational pharmaceutical companies.

Regional Infrastructure Development Grants

2/0/0

4.21

53%

Improved skills of local trades people in using new technologies and materials – use of recycled material; developing techniques for bank stablisation not used before; flood mitigation works - construction methods developed and built to withstand potential future floods in the precinct. Project included a number of innovative elements such as: the construction of a swale drain network designed to treat storm water; implementation of an innovative waste management system; and preservation of a number of heritage structures on site. The staging of various events will also encourage and allow for an increase in knowledge and skills in the wider community?

Other Contracts

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

N/A

127

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

OFFICE-BASED ENVIRONMENTAL IMPACTS Energy Use Units of energy used per full-time employee

8,024

Units of energy used per unit of office space

333

MJ/Square metre

5,989

Giga joules

976

Giga joules

Total energy usage segmented by primary source

Electricity (non-GreenPower ie dirty electricity) Electricity (GreenPower)

Total greenhouse gas emissions segmented by primary source

Actions undertaken during the year to reduce energy use in buildings

MJ/FTE

Natural gas

Joules

LPG

Joules

Diesel fuel

Joules

Solid fuel

Joules

Heating oil

Joules

Other

Joules

2,204

CO2 equivalent

Electricity (GreenPower)

CO2 equivalent

Natural gas

CO2 equivalent

LPG

CO2 equivalent

Diesel fuel

CO2 equivalent

Solid fuel

CO2 equivalent

Heating oil

CO2 equivalent

Other

CO2 equivalent

Electricity (non-GreenPower ie dirty electricity)

• Relocated to 121 Exhibition Street • Sensor lights • 70% of all screens are LCD or flat screens • Sleep mode enabled on all printers and multifunction functions where possible • Automatic switch off of all networked computers after 9pm • Rationalised printer ratio

Cost of GreenPower

$11,551

Percentage of GreenPower purchased

14.01%

Note: Includes data from CBD, metropolitan and regional locations. Excludes interstate and overseas offices.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

OFFICE-BASED ENVIRONMENTAL IMPACTS (continued) Waste Production 73.59 kg/FTE/yr

Units of waste produced per full time employee Total units of waste recycled Actions undertaken during the year to reduce waste

55,373.54

kg/yr

• Introduction of organic recycling • Conducted waste audits and spot audits • Recycled all toners and cartridges • Redesigned signage in line with public recycled • Donated surplus used stationery and kitchen items to charities and schools • Member of Green Collect • Recycled corks, batteries, CDs, mobile phones and accessories

Note: Data includes data from 121 Exhibition Street, 55 Collins Street and 80 Collins Street. It excludes 2 Treasury, metropolitan, regional, interstate and overseas offices.

Paper Use Total units of paper used

17,100

Units of paper used per full time employee

19.702 Reams/FTE

Actions undertaken during the year to reduce paper use

Reams

• Conducted paper reduction campaigns • Created notepads from old letterhead stationery • Mandated that all printers default duplex (print on both sides) • Improved data collection

Note: Includes data from CBD, metropolitan and regional locations. Excludes interstate and overseas offices.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

OFFICE-BASED ENVIRONMENTAL IMPACTS (continued) Water Consumption Water source

Office /Non-office

Scope

Litres/FTE

Office

Government owned

Office

Leased

Litres/year

% of all sites

% of total FTEs

Mandatory Potable water use

10,922

0.0%

7,317,976

35.7%

91.8%

* Department of Innovation, Industry and Regional Development’s water consumption at government owned offices will be reported as part of the total water consumption for the Treasury Reserve by the Department of Treasury and Finance (DTF) as owner of the buildings. The water reticulation system for the Heritage Buildings on Treasury Reserve is complex. There are several authority meters on the Treasury Reserve that contribute to a ring main distribution to all buildings. Billing consumption data cannot be accurately attributed to individual buildings or departments. Previous attempts to sub-meter the buildings have proven to be inaccurate. Smart meters are being installed on all buildings and major end users on the Treasury Reserve to enable accurate annual reporting and ongoing management of water consumption in the future.

Optional Other water sources

Actions undertaken during the year to reduce water use in buildings

Non-office

N/A

Office /Non-office

N/A

• Conducted black and grey water recycling plant tour • Conducted lunchtime seminars focusing on water saving at work and at home • All toilets at Southern Cross site are dual flush • All toilets at Southern Cross are flushed with recycled black and grey water • Water efficient dishwashers

Note: Includes data from 121 Exhibition Street, 55 Collins Street, 80 Collins Street, and Bendigo. Excludes 2 Treasury Place, metropolitan, regional (except Bendigo), interstate and overseas offices.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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OFFICE-BASED ENVIRONMENTAL IMPACTS (continued) Transportation Total Energy consumption

7,890

Energy consumption/FTE

9.09

GJ/FTE

Total greenhouse gas emissions

592

tonnes CO2-e

Greenhouse gas emissions/FTE

0.682

Total passenger vehicle trip kilometres associated with Departmental operations

2,232,152

Passenger vehicle trip kilometres associated with Departmental operations/FTE

2,572

Percentage of employees regularly (>75% of work attendance days) using public transport, cycling, or walking to and from work

74.0%

Action taken during the year to reduce energy use in the Department’s vehicle fleet

tonnes CO2-e/FTE km

km/FTE

• Public Transport Promotion, encouraging staff to use for meetings within CBD • Centralisation of Operational Vehicle Fleet, leading to greater efficiencies • Contracting the supply of offsets for the Department’s vehicle fleet is the responsibility of DSE. Offsetting is done in arrears, based on actual fuel usage data.

Note: Data includes data from all CBD, metropolitan and regional locations. It excludes part of 80 Collins Street, interstate and overseas offices.

Procurement Departments are to discuss whether and how their purchasing activities are environmentally responsible and support the objectives of the Government’s Environmental Purchasing Policy

• Established and promoted reuse stationery bank • Purchased paper with 50% or greater recycled content • Procured Energy Star and WELS rated equipment • Refurnished existing furniture as part of head office relocation

Note: Includes data from CBD, metropolitan and regional locations. Excludes interstate and overseas offices.

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DISCLOSURE OF MAJOR CONTRACTS During the year ended 30 June 2007, the Department did not enter into any contracts greater than $10 million in value. Details of major contracts are disclosed in accordance with the principles of the Freedom of Information Act 1982, and/or Government guidelines and can be viewed online at www.contracts.vic.gov.au.

COMPLIANCE WITH BUILDING ACT 1993 All government departments and funded agencies are required to comply with the requirements of the Building Act 1993, the Building Code of Australia and statutory obligations set by government. The Building Act 1993 applies to construction, demolition, removal and refurbishment of capital projects and the Building Code of Australia relates to standards set for building regulations. The Office of Training and Tertiary Education has responsibility for over 1055 buildings in the TAFE asset portfolio. See page 40 of the report for further information.

DECLARATION OF PECUNIARY INTEREST In accordance with the general guidelines for declaration of pecuniary interest, relevant officers have completed declarations for the financial year.

SHARES HELD BY SENIOR OFFICERS IN A STATUTORY AUTHORITY OR SUBSIDIARY No officers hold shares as nominee or beneficiary in a statutory authority or subsidiary.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

FINANCIAL REVIEW OF OPERATIONS AND FINANCIAL CONDITIONS Five year financial summary 2007 $’000

2006 $’000

2005 $’000

2004 $’000

2003 $’000

969,834

419,851

328,742

293,597

393,508

Other revenue

6,545

5,878

4,779

3,936

12,013

Total income

976,379

425,729

333,521

297,533

405,521

(940,546)

(417,385)

(334,023)

(311,360)

(308,192)

35,833

8,344

(502)

(13,827)

97,329

Total assets

547,549

363,994

284,165

210,727

162,207

Total liabilities

176,202

47,016

36,140

35,337

22,199

Revenue from Government

Total expenses Net operating result for the reporting period

The Department’s revenue from government has increased in the current year as mainly due to: • Higher output appropriations received in the current financial year due to the inclusion of the Training and Further Education output and a portion of the Information, Communication and Technologies output administered by Multimedia Victoria as a result of the machinery of government changes effective 1 January 2007. • Higher Regional Infrastructure Development Fund (RIDF) revenue being appropriated to the Department during the current reporting period under the terms of the State Government’s Provincial Victoria Statement. The increase in revenue is also reflected in an increased level of expenditure and cashflows from operations in 2006-07 as compared to the previous year. The increase in the Department’s total assets have resulted from: • Higher cash balances held in trust accounts, including a newly established Australian Synchrotron Trust Fund and the RIDF Trust. In addition, as revenue received into these trust accounts has exceeded the associated expenditure in the current financial year, the Department has recorded a net operating surplus. It is anticipated that the balance in the trust will be fully expended in future years. • Higher receivables balances relating to the amount owing by Victorian Government representing appropriations for expenses incurred but not yet drawn down from the Consolidated fund. • Additional capital expenditure undertaken in the current financial year in relation to the Australian Synchrotron Project ($12.4 million). Correspondingly, the Department’s total liabilities have also increased due to the creation of the Australian Synchrotron Trust Fund which has resulted in the recognition of a loan repayable to the Government representing the State’s contribution to the Trust. Significant financial activities of the Department during the year included: • The integration of the activities assumed as a result of machinery of government changes including the Office of Training and Further Education output and the part of the Information, Communication and Technologies output administered by Multimedia Victoria as a result of the machinery of government changes effective 1 January 2007. • The upgrade of the Department Financial System.

In general, the delivery of services by the seven output group activities of the Department were within the defined budgetary objectives. Exceptions were mainly due to agreed changes in committed projects being delivered in the next financial year. Information on the delivery of services by the Output Groups of the Department, including significant activities and achievements outlined in part one of the Annual Report. A comparison of budget to and actual financial statements are contained in the ‘Budget Portfolio Outcomes’ section of the Annual Report (pages 86 – 93)

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

GRANTS AND RELATED ASSISTANCE As in previous years, the Department has provided assistance to companies and organisations. Financial assistance provided in 2006-07 was as follows:

INVESTMENT AND INDUSTRY RELATED GRANTS The Department’s investment attraction activities include facilitative or financial assistance. In 2006-07 financial assistance of $62.5 million was paid to the companies and organisations listed below (details of investment grants have not been disclosed as they are deemed commercial in confidence).

Organisation

AAPT Limited

Head Mod Nominees Pty Ltd

Aerospace Australia Ltd

IBM Global Services Australia Ltd

Aisin (Australia) Pty Ltd

Jetstar Airways Pty Ltd

AME Systems Pty Ltd

KR Castlemaine Foods Pty Ltd

APA Manufacturing Pty Ltd

Lemnos Foods Pty Ltd

Australian Fashion Innovators Pty Ltd

Mahle Engine Components Australia Pty Ltd

Australian Retailers Association

MCK Pacific Pty Ltd

AXA Technology Services (Australia) Pty Ltd

Mrs Crocket’s Kitchen Pty Ltd

Basell Australia Pty Ltd

Qantas Airways Limited

Ceramet Technologies Pty Ltd

Saizeriya Australia Pty Ltd

Computershare Limited

Siemens VDO Automotive Pty Ltd

Dept. of Infrastructure (VicUrban)

Spicer Axle Structural Components Australia Pty Ltd

Film Victoria

Total Tooling Co Pty Ltd

Ford Motor Company of Australia Ltd

Toyota Technical Center Asia Pacific Australia Pty Ltd

H J Langdon & Co Pty Ltd

Urbis JHD Pty Ltd

Hawker De Havilland Aerospace Pty Ltd

Woolworths Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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BUSINESS DEVELOPMENT GRANTS The Department provided assistance through a number of programs to companies and organisations to support enterprise improvement, export growth, business development and promotional activities. The Department also delivered a range of enterprise improvement services to Victorian companies to improve the efficiency and effectiveness of their operations in areas including strategic planning and export. Financial assistance of $16.2 million was provided to the following companies and organisations

Agenda for New Manufacturing – Automotive Strategy Organisation Industry Capability Network Ltd

Payment $ 40,000

Agenda for New Manufacturing – Export Organisation Airlinx Heating and Cooling Supply Pty Ltd APV Automotive Components Pty Ltd

Payment $ 11,500 4,987

Aruspex Pty Ltd

10,000

AusBiotech Ltd

30,000

Aust-China Group Pty Ltd Australian Flower Export Council Inc

355,000 17,000

Australian Fluid Handling

9,839

Australian Harvest Fine Foods Pty Ltd

7,873

BJ and SM McCarthy

3,750

Boondy Pty Ltd

11,500

Bouquet Productions Pty Ltd

4,000

Bouvourie Pty Ltd

2,186

Box Musical Enterprises

4,000

Brooklynds Pty Ltd

10,000

Burders Lane Enterprises Pty Ltd

3,585

Cardinia Shire Council

9,000

Care Employment & Training Services Pty Ltd

8,254

Ceram Polymerik Pty Ltd Chislett Developments Pty Ltd City of Greater Dandenong E2E IT Solutions Pty Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

10,000 1,237 15,000 7,570

135

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Agenda for New Manufacturing – Export (Continued) Organisation

Payment $

Eaststyle (Aust.) Pty. Ltd

11,500

Flavour Makers Pty Ltd

3,750

Geocode Mapping and Analysis Pty Ltd

7,500

Gregory Burgess Pty Ltd GSOGA Food Company Pty Ltd

14,783 2,976

H J Langdon & Co Pty Ltd

10,000

Harrop Engineering Australia Pty Ltd

10,000

Hope AD Pty Ltd

10,500

Infomdx Pty Ltd

6,346

Inlink Technologies Pty Ltd

11,500

J M McMahon & Co Pty Ltd

42,598

Kennedy & Wilson Chocolates Pty Ltd

5,858

Lite Industries Pty Ltd

11,500

Logical Technologies Pty Ltd

11,500

Luna Gallery Pty Ltd Marsh Classic Trimmers

9,730 38,404

Maru Koala and Fauna Park

7,850

Master Builders Australia Inc

49,846

Mill & Mia Pty Ltd

6,163

Modra Technology Pty Ltd

4,000

Moodys (Aust) Pty Ltd

3,068

Mornington Peninsula Vignerons Association Inc.

7,500

Multi Panel Pty Ltd

9,813

New Water Pty Ltd

8,182

Oystercorp Pty Ltd

11,455

Passion for Pasta Pty Ltd Patties Foods Pty Ltd

7,532 11,500

Production Parts Pty Ltd

7,500

Pronto e Fresco Pty Ltd

8,364

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Agenda for New Manufacturing – Export (Continued) Organisation Razeng Park Pty Ltd

Payment $ 8,000

Recruitment & Consulting Services Association

29,107

Repeat Products Pty Ltd

11,500

Ryan & McNulty Pty Ltd

4,110

Scuttle Clothing Pty Ltd

3,650

Seaton Delaval Pty Ltd

7,823

Stainless Tanks & Pressure Vessels Pty Ltd

3,000

Star Line Catering Equipment Pty Ltd

8,934

Strongarm Manufacturing & Sales Pty Ltd

1,460

Systemwide Pty Ltd

6,475

Techni Waterjet Pty Ltd Terra Harvest Australia Pty Ltd Tooling Australia Inc Total Livestock Genetics Pty Ltd

45,000 4,366 100,000 16,420

Transit Computer Systems Pty Ltd

7,500

Wallaloo Park Pty Ltd

5,442

Wilderness Wear Australia Pty Ltd

8,104

Wishdale Pty Ltd

7,540

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

1,165,930

137

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Agenda for New Manufacturing – General Organisation

Payment $

A F Gason Pty Ltd

7,500

Advanced Cabinetry Pty Ltd

7,500

Albins Off Road Gear Pty Ltd

7,500

AME Systems Pty Ltd

7,500

Australian Manufacturing Technology Institute Ltd

10,437

Clipsal Australia Pty Ltd

7,500

CMTP Pty Ltd

7,500

Ductmakers Pty Ltd

7,500

Godfrey Hirst Australia Pty Ltd

7,500

Invacare Australia Pty Ltd

7,500

Linak Australia Pty Ltd

7,500

National Paper Industries Pty Ltd

7,500

Nicholas Dattner & Co Pty Ltd

6,000

Plastics and Chemicals Industries Association Inc

15,000

RM Russell Trading Pty Ltd

22,500

SIRF Round Tables Pty Ltd

12,000

Steel Frame Solutions Pty Ltd

6,818

Wimmera Development Association Inc

3,600

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

158,855

138

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Agenda for New Manufacturing – Image Campaign Organisation Association for Manufacturing Excellence - Australia Region Inc Australasian Production & Inventory Control Society Limited

Payment $ 35,000 5,000

Australian Electrical and Electronic Manufacturers Association Ltd

57,500

Confectionery Manufacturers of Australasia Limited

25,000

Deakin University

20,000

Federation of Automotive Products Manufacturers Ltd

26,000

La Trobe University

66,000

Lean Enterprise Australia Inc

25,000

Plastics and Chemicals Industries Association Inc

6,250

RMIT University

60,000

Science Industry Australia Inc

20,000

SIRF Round Tables Pty Ltd

23,500

Society of Plastic Engineers

7,000

The Australian Industry Group

5,000

Tooling Australia Inc Total

17,450 398,700

Agenda for New Manufacturing – Technology Uptake Organisation

Payment $

Bartco Traffic Equipment Pty ltd

20,000

Burra Foods Pty Ltd

20,000

CityWide Service Solutions Pty Ltd

18,230

Global Cold Chain Solutions Pty Ltd

20,000

Plastics and Chemicals Industries Association Inc

10,000

Science Industry Australia Inc

23,750

Stawell Gold Mines Pty Ltd

20,000

TNN-Agmin Pty Ltd

20,000

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

151,980

139

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Business Assistance - General Organisation

Payment $

Australian Industry & Defence Network Inc - Victoria

45,909

Australian Logistics Council Inc

25,000

Burra Foods Pty Ltd Capital Research Pty Ltd Chocolatier (Australia) Pty Ltd City of Melbourne CSL Limited Goulburn Ovens Institute of TAFE Logistics Association of Australia (Vic) Inc Melbourne Convention and Visitors Bureau Ltd

5,000 10,000 4,950 50,000 5,000 66,000 103,000 1,500,000

Monash University

200,000

Transport and Distribution Industry Training Board (Vic) Inc

100,000

University of Melbourne

250,000

Victorian Airfreight Council Ltd

80,000

Victorian Freight and Logistics Council Ltd

25,000

Victorian Major Events Co Ltd Victorian Transport Association Inc Total

1,100,000 63,000 3,632,859

Design Centre Strategy Organisation

Payment $

Charlwood Design Pty Ltd

20,000

Design Insitute of Australia

20,000

Dokulil Communications Pty Ltd

20,000

RMIT University Society of Automotive Engineers - Australasia Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

1,884,000 30,000 1,974,000

140

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Business Assistance - General Organisation Australian Meat Processor Corporation Ltd

Payment $ 9,000

Great Southern Ice Pty Ltd

59,300

Y V Marketing Pty Ltd

30,864

Total

99,164

Events and Sponsorships Organisation

Payment $

Albury-Wodonga Area Consultative Committee Inc

1,500

Ararat Regional Business Association Inc

1,000

ASN Events Pty Ltd - Cool Climate Wine Show Trust Association for Manufacturing Excellence - Australia Region Inc Association of Wall & Ceiling Industries Victoria Inc Aust-China Group Pty Ltd Australian Die Casting Association

800 30,000 1,000 18,000 3,000

Australian Electrical and Electronic Manufacturers Association Ltd

10,000

Australian Retailers Association

15,000

Australian Specialist Cheesemakersâ&#x20AC;&#x2122; Association (ASCA)

25,000

Bass Coast Shire Council Baw Baw Shire Council Benalla Rural City

600 3,100 500

Boating Industry Association of Victoria Ltd

4,000

Cardinia Shire Council

1,500

City of Knox

2,000

City of Warrnambool

2,000

City of Whitehorse

1,500

Corangamite Shire Council

1,000

CPA Australia

5,000

Dairy Industry Association of Australia Inc

13,000

Deborah Triangle Traders Association Inc

1,500

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Events and Sponsorships (Continued) Organisation Eaglehawk Business Network Inc East Gippsland Shire Council Family Business Australia Limited Fed Square Pty Ltd

Payment $ 1,000 600 7,273 20,000

Federation of Automotive Products Manufacturers Ltd

8,000

Film Victoria

8,000

Finsia Education

27,000

Furnishing Industry Association of Australia (Vic/Tas) Inc

6,000

Golden Plains Shire Council

1,000

Greater Dandenong Chamber of Commerce

2,000

Hepburn Shire Council

1,500

Latrobe City Council Macedon Ranges Shire Council

600 1,000

Mansfield Shire Council

500

Maroondah City Council

1,500

Melbourne Business Awards Association Inc

2,000

Melbourne Exhibition and Convention Centre

3,000,000

Melbourne Fashion Festival Ltd Melbourne Food and Wine Festival Inc Minerals Council of Australia - Victorian Division

573,700 1,120,000 7,000

Mitchell Shire Council

500

Moira Shire Council

300

Murrindindi Shire Council

300

Natural Gypsum Miners Association of Victoria Inc

1,000

Osborne Investments Pty Ltd

18,000

Slow Food Victoria Inc

85,000

Society of Automotive Engineers - Australasia

9,000

South Gippsland Shire Council

600

Strathbogie Shire Council

300

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Events and Sponsorships (Continued) Organisation

Payment $

Technical Textiles and Nonwoven Association Inc

5,000

The Australian Industry Group

7,000

The Gippsland Business Awards Association Inc

2,000

The Institute of Quarrying Australia

2,000

The Royal Agricultural Society of Victoria Ltd

13,250

The Stephanie Alexander Kitchen Garden Foundation Ltd

40,000

Tooling Australia Inc

18,000

Towong Shire Council

1,500

University of Ballarat

1,000

Victorian Automobile Chamber of Commerce

5,000

Victorian Transport Association Inc

12,500

Victorian Wine Industry Association

38,500

Waldron Smith Management Pty Ltd

10,000

West Wimmera Shire Council Total

1,000 5,201,423

Film and TV Industry Organisation Film Victoria

Payment $ 150,000

Grow Your Business Organisation A.W. Nicholson Pty. Ltd. Alpine Valley Vignerons Inc Asparagus Growers of Sunraysia Inc

Payment $ 2,400 13,500 9,000

Avexa Limited

11,500

AWMA Pty Ltd

2,785

Axiom Business Systems Pty Ltd

11,500

Baires Contracting Pty Ltd

11,498

Ballarat Regional Incubators Limited

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

9,000

143

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Grow Your Business (Continued) Organisation

Payment $

Banyule City Council

27,000

Bass Coast Shire Council

14,700

Benalla Timber Products Pty Ltd

11,500

Bendigo Bank Limited

25,500

Bendigo Winegrowers Association Inc

15,000

Birchip Cropping Group Inc

11,500

Broken Creek Commodities Pty Ltd

7,500

Buontempo Enterprises Pty Ltd

7,500

Burn Brite Lights (Vic) Pty Limited

10,850

Careers Fast Track Pty Ltd

8,500

Carmel Box (Aust) Pty Ltd

10,800

Central Access Limited Centre for Agriculture and Business-Yarra Valley Inc Cheviot Bridge Ltd

9,129 900 8,000

City of Casey

15,000

City of Knox

21,000

City of Melbourne

10,500

City of Monash

28,500

City of Port Phillip

15,000

City of Whitehorse

9,000

City of Whittlesea

13,500

Cloyne Holdings Pty Ltd

8,750

Commerce Ballarat Limited

15,000

Complete Colour Printing Pty Ltd

11,500

Confectionery Manufacturers of Australasia Limited

15,000

Continental Cuisine Australia Pty Ltd

11,250

CR & KJ Beasley

14,325

Creative Framing.Com Pty Ltd

11,500

CRF (Colac Otway) Pty Ltd

11,500

Crusader Hose Pty Limited

11,500

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

144

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Grow Your Business (Continued) Organisation CVP Australia Pty Ltd Daintree Networks Pty Ltd Ear Associates Pty Ltd

Payment $ 3,998 10,500 7,500

East Gippsland Shire Council

13,230

East Street Upholstery Pty Ltd

4,000

Eastfield Orchards Pty Ltd

7,500

e-CentricInnovations Pty Ltd

11,500

Filigree Textiles Pty Ltd

7,500

Flavour Makers Pty Ltd

7,500

Foodmach Pty Ltd

10,250

Frankston City Council

15,000

Fyna Foods Australia Pty Ltd

7,500

GTS Freight Management Pty Ltd

7,500

Hardwicks Meatworks Pty Ltd

4,988

Hawk Measurement Systems Pty Ltd Heldon Products Pty Ltd Hepburn Shire Council Hoogwegt Australia Pty Ltd

11,500 7,063 15,000 5,550

Hopkins River Pastoral Company Pty Ltd

11,500

Hume City Council

15,000

i - Wired Australia Pty Ltd

11,500

Interactive Group Pty Ltd

8,500

IR Gurus Interactive Pty Ltd James Stock Feed & Fertilizer Pty Ltd

11,500 2,880

King Valley Vignerons Inc

15,000

Kingfisher International Pty Ltd

11,250

Kolona Pty Ltd

11,500

Latrobe City Council

29,805

Leeder Consulting Pty Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

4,000

145

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Grow Your Business (Continued) Organisation Lemartin Pty Ltd M & N Reid M W Contract Pty Ltd

Payment $ 3,338 10,500 4,000

Macedon Ranges Vignerons Association Inc

15,000

Matisse (Australia) Pty Ltd

10,500

Moorabool Shire Council

15,000

Moreland Enterprise Development Centre Limited

15,000

Mornington Peninsula Shire Council

15,000

Northern Melbourne Institute of TAFE

12,000

Nursery & Garden Industry Victoria

10,500

OBS Pty Ltd

7,500

Okidokie Pty Ltd

7,500

Oziental Pty Ltd

4,000

OzTaste Pty Ltd

9,500

P.E. & P.A. Campbell Investments Pty Ltd

10,991

Palamont Rotor Australia Pty Ltd

4,000

Paul A & Donna M Ryan

4,125

Peninsula Hot Springs Pty Ltd

11,500

Plunkett Wines Pty Ltd

11,500

Regional Brass Industries Pty Ltd

8,500

Ring Road Roller Doors Pty Ltd

7,500

Riverland Oilseed Processors Pty Ltd

19,050

Rofin Australia Pty Ltd

11,250

Rural Steel Pty Ltd

11,250

Ryan & McNulty Pty Ltd

11,500

Sanbrook Brands Pty Ltd

3,750

SDS Beverages Pty Ltd

11,500

Shine Corporate Services Pty Ltd

11,500

Shire of Yarra Ranges

15,000

South Gippsland Shire Council

13,500

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

146

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Grow Your Business (Continued) Organisation Strathbogie Shire Council

Payment $ 15,000

Tag-A-Long Machinery Trailers Pty Ltd

4,000

Tallarook Wines Pty Ltd

4,000

The Remediation Group Pty Ltd

8,437

The Winemakers of Rutherglen Inc

15,000

Utilacor Pty Ltd

9,500

Vertical High Access Specialist Pty Ltd

5,000

Victorian Employers Chamber of Commerce and Industry

13,500

Wealth Within Pty Ltd

10,550

West Wimmera Shire Council

13,500

Westend Association Inc

15,000

Western Victorian Eel Growers’ Group Pty Ltd

8,497

Westside Meat Pty Ltd

11,500

Williamsboag Pty Ltd

15,000

Woollybutt Pty Ltd

3,636

Wrightcom Australia Pty Ltd

6,750

Wyndham City Council Total

10,500 1,227,522

KBN Professional Development Program Recipient

Payment $

Kennedy, Lisa

2,000

Michael W Harding trading as Wurru Wurru Ngarga Warendj

1,958

Soul Veg

2,000

Timewize Fresh Fruit and Vegetables

1,800

Total

7,758

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

147

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Opening Doors to Export Plan Organisation

Payment $

Albury-Wodonga Area Consultative Committee Inc

4,000

Australia Arab Chamber of Commerce and Industry Inc

3,199

Australian Automotive Aftermarket Association Ltd

6,000

Australian Industry & Defence Network Inc - Victoria

4,000

Boating Industry Association of Victoria Ltd

4,000

Business at Bacchus Marsh Association Inc

6,000

Business Networking for Growth (Central Victoria) Inc

4,000

Central Highlands Agribusiness Forum Inc

6,000

City of Greater Dandenong

6,000

City of Greater Geelong

35,000

City of Kingston

6,000

Industry Capability Network (Vic) Ltd

4,000

Institute of Management Consultants

6,000

Koorie Heritage Trust Inc

6,000

Science Industry Australia Inc

10,000

Strategic Enterprise Development Pty Ltd

21,000

Swinburne University of Technology The Australian Industry Group Victorian Employers Chamber of Commerce and Industry Wimmera Development Association Inc Total

4,000 74,000 174,000 6,000 390,351

Small Business Statement Organisation Small Business Mentoring Service Inc

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Payment $ 153,975

148

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) StreetLife Organisation

Payment $

Alpine Shire Council

17,500

Australian Retailers Association

25,000

Borough of Queenscliffe

5,000

Campaspe Shire Council

8,250

CBD Warrnambool Inc

20,000

City of Brimbank

5,000

City of Kingston

6,000

City of Manningham

12,000

City of Monash

10,000

Frankston City Council

9,000

Moonee Valley City Council

12,500

Mornington Peninsula Shire Council

10,000

Nillumbik Shire Council Northern Grampians Shire Council Portarlington Business Development Association Inc

5,500 20,000 2,500

South Gippsland Shire Council

10,000

Strathbogie Shire Council

10,000

Swan Hill Rural City Council

3,750

Sydney Road Brunswick Association Inc

10,000

The Mount Waverley Chamber of Commerce and Industry Inc

11,500

Wellington Shire Council

10,000

Total

223,500

Team Melbourne Project Organisation Team Melbourne Pty Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Payment $ 150,000

149

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

BUSINESS DEVELOPMENT GRANTS (continued) Trade Fairs and Missions Organisation Aerospace Australia Ltd

Payment $ 9,000

Aust-China Group Pty Ltd

71,500

Australian Automotive Aftermarket Association Ltd

85,000

Australian Electrical and Electronic Manufacturers Association Ltd

10,500

Australian Flower Export Council Inc

30,000

Australian Industry & Defence Network Inc - Victoria

14,080

Australian International Marine Export Group Ltd

2,000

Australian Manufacturing Technology Institute Ltd

44,750

Australian Trade Commission

92,510

Baw Baw Shire Council

34,459

Confectionery Manufacturers of Australasia Limited

76,500

Connell Wagner Pty Ltd

3,667

Corda Technologies Inc

3,000

Eastberry Group Pty Ltd

15,000

Exhibitions Plus Pty Ltd

38,150

Floconnex Pty Ltd

18,000

Industry Capability Network (Vic) Ltd

80,000

Intelligent Transport Systems Australia

35,000

International Trade Show Management Pty Ltd

37,855

Law Institute of Victoria Ltd

8,000

Master Builders Australia Inc

5,000

Science Industry Australia Inc

40,000

The Australian Industry Group

63,720

Tourism Victoria

120,000

Victorian Association of Forest Industries

68,000

Victorian Employers Chamber of Commerce and Industry

45,500

Woodger Enterprises Pty Ltd

45,000

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

1,096,191

150

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS RDV provided financial assistance through a broad range of programs aiding economic and community development in regional Victoria. Assistance included funding for economic development and infrastructure projects and regional community events. Assistance is also provided through the Government $502 million action plan for provincial Victoria: Moving Forward: Making Provincial Victoria the Best Place to Live, Work and Invest.

Community Regional Industry Skills Program Organisation

Payment $

Blue Lake Milling Pty Ltd

50,000

Ceramet Technologies Pty Ltd

69,585

Department of Primary Industries

98,281

GTS Freight Management Pty Ltd

21,000

K&K Fasteners Pty Ltd

10,000

Keppel Prince Engineering Pty Ltd

30,000

Perseverance Exploration Pty Ltd

125,000

Pyramid Hill Meat Co Pty Ltd

30,000

Southcorp Wines Pty Ltd

150,000

Tatura Milk Industries Ltd

25,000

Visy Board Pty Ltd Total

110,000 718,866

Drought Assistance Packages â&#x20AC;&#x201C; Local Infrastructure Works Program Organisation

Payment $

Alpine Shire Council

300,000

Ararat Rural City Council

300,000

Benalla Rural City

300,000

Buloke Shire Council

300,000

Campaspe Shire Council

300,000

Central Goldfields Shire Council

300,000

City of Ballarat

300,000

City of Greater Bendigo

300,000

City of Greater Geelong

300,000

City of Greater Shepparton

300,000

City of Warrnambool

300,000

City of Whittlesea

300,000

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

151

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Drought Assistance Packages – Local Infrastructure Works Program (Continued) Organisation

Payment $

Colac Otway Shire Council

300,000

Corangamite Shire Council

300,000

East Gippsland Shire Council

300,000

Gannawarra Shire Council

300,000

Glenelg Shire Council

300,000

Golden Plains Shire Council

300,000

Hepburn Shire Council

300,000

Hindmarsh Shire Council

300,000

Horsham Rural City Council

300,000

Hume City Council

300,000

Indigo Shire Council

300,000

Latrobe City Council

300,000

Loddon Shire Council

300,000

Macedon Ranges Shire Council

300,000

Mansfield Shire Council

300,000

Melton Shire Council

300,000

Mildura Rural City Council

300,000

Mitchell Shire Council

300,000

Moira Shire Council

300,000

Moorabool Shire Council

300,000

Mount Alexander Shire Council

300,000

Moyne Shire Council

300,000

Murrindindi Shire Council

300,000

Northern Grampians Shire Council

300,000

Pyrenees Shire Council

300,000

Southern Grampians Shire Council

300,000

Strathbogie Shire Council

300,000

Surf Coast Shire

300,000

Swan Hill Rural City Council

300,000

Towong Shire Council

300,000

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

152

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Drought Assistance Packages – Local Infrastructure Works Program (Continued) Organisation

Payment $

Wangaratta Rural City Council

300,000

Wellington Shire Council

300,000

West Wimmera Shire Council

300,000

Wodonga City Council

300,000

Wyndham City Council

300,000

Yarriambiack Shire Council

300,000

Total

14,400,000

Drought Assistance Packages – Business Continuity Program Organisation

Payment $

Alpine Shire Council

13,400

Ararat Rural City Council

13,000

Australian Fodder Industry Association Incorporated Bass Coast Shire Council Beechworth and District Chamber of Commerce & Industry Inc

8,674 10,000 7,000

Benalla Rural City

30,675

BRACE Education Training and Employment Limited

13,000

Buloke Shire Council

13,000

Campaspe Shire Council

42,090

Central Goldfields Shire Council

13,000

Central Highlands Agribusiness Forum Inc

10,000

City of Ballarat

42,000

City of Greater Bendigo

19,091

City of Greater Shepparton

22,000

City of Warrnambool

23,000

Colac Otway Shire Council

16,000

Corangamite Shire Council

18,182

Daylesford and The Macedon Ranges Tourism Inc

10,000

East Gippsland Shire Council

11,850

Gannawarra Shire Council

15,159

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

153

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Drought Assistance Packages â&#x20AC;&#x201C; Business Continuity Program (Continued) Organisation

Payment $

Glenelg Shire Council

20,000

Golden Plains Shire Council

13,000

Hepburn Springs Swiss-Italian Festa Inc

13,000

Hindmarsh Shire Council

13,000

Horsham Rural City Council

38,000

Indigo Shire Council

35,000

Industry Capability Network (Vic) Ltd

60,000

Latrobe City Council

2,208

Livestock Transporters Association of Victoria Inc

11,486

Loddon Shire Council

10,000

Macedon Ranges Shire Council

10,000

Maffra Chamber of Commerce and Industry Inc

1,334

Mansfield Shire Council

29,850

Mildura Rural City Council

13,000

Mildura Tourism Inc

8,500

Mitchell Shire Council

2,130

Moira Shire Council

12,000

Moorabool Shire Council

36,000

Mount Alexander Shire Council

13,000

Moyne Shire Council

18,363

Murrindindi Regional Tourism Association Inc

19,132

Murrindindi Shire Council

63,767

NatRoad Limited

10,000

Northern Grampians Shire Council

51,805

Pyrenees Shire Council

33,000

Rosedale Chamber of Commerce & Industry Inc

3,000

Rotary Club of Euroa

3,000

Southern Grampians Shire Council Stawell Chamber of Commerce and Industry Inc Strathbogie Shire Council

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

23,000 3,000 31,938

154

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Drought Assistance Packages – Business Continuity Program (Continued) Organisation

Payment $

Swan Hill Rural City Council

13,000

The Australian Industry Group

31,453

Towong Shire Council

39,600

Upper Goulburn Food Wine and Cultural Group Inc Victorian Employers Chamber of Commerce and Industry

5,950 13,000

Wangaratta Rural City Council

2,900

Wellington Shire Council

9,000

West Wimmera Shire Council

3,000

Westvic Dairy Inc

3,000

Wimmera Development Association Inc

15,250

Yarriambiack Shire Council

20,000

Yea Wetlands Trust Total

9,705 1,118,491

Living Regions Living Suburbs Organisation Alpine Shire Council Ararat Rural City Council Australian Alpine Valley Agribusiness Forum Inc Bairnsdale Racing Club Inc Baw Baw Shire Council Benalla Business Network Inc

Payment $ 30,000 3,000 10,926 7,000 111,750 4,756

Benalla Rural City

30,000

Campaspe Shire Council

37,303

Cardinia Shire Council

96,194

City of Casey

225,000

City of Greater Bendigo

20,000

City of Greater Geelong

20,000

City of Greater Shepparton

176,195

City of Kingston City of Warrnambool

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

7,500 190,000

155

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Living Regions Living Suburbs (Continued) Organisation

Payment $

Department of Justice

375,000

Department of Sustainability and Environment

200,000

East Gippsland Shire Council

35,000

Eltham Chamber of Commerce & Industry Inc

10,000

Enterprize Ship Trust

100,000

Falls Creek Resort Management Board

10,000

Heathcote Winegrowers Association Inc

9,500

Horsham Rural City Council

20,000

Hume City Council

10,000

Indigo Shire Council

20,000

Kyabram Community and Learning Centre Inc

9,340

Lake Mountain Alpine Resort Management Board

10,000

Latrobe City Council

37,500

Lilydale Chamber of Commerce & Industry Inc

2,500

Loddon Shire Council

1,502

Macedon Ranges Shire Council

50,000

Mansfield Shire Council

30,000

Melton Shire Council

5,000

Milawa Gourmet Region Association Inc

10,000

Mildura Rural City Council

10,000

Moira Shire Council

46,199

Moyne Shire Council

12,059

Mt Baw Baw Alpine Resort Management Board

10,000

Mt Buller & Mt Stirling Resort Management Board

10,000

Murrindindi Shire Council

185,000

Nillumbik Tourism Association Inc

7,000

Northern Grampians Shire Council

7,500

Parks Victoria

45,695

Pyrenees Shire Council

20,000

Rotary Club of Koo Wee Rup - Lang Lang Inc

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

2,500

156

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Living Regions Living Suburbs (Continued) Organisation Shire of Yarra Ranges Southern Grampians Shire Council Surf Coast Shire The Herald & Weekly Times Limited Tourism Victoria

Payment $ 248,691 15,115 95,000 350,000 1,550,000

Towong Shire Council

20,000

Wangaratta Rural City Council

30,000

Wellington Shire Council

20,000

Whittlesea Country Music Festival Inc

10,000

Wodonga Rural City Council

46,000

Yarra Glen Chamber of Commerce Inc

10,000

Total

4,665,724

Make it Happen in Provincial Victoria Organisation Alpine Shire Council Bass Coast Shire Council

Payment $ 25,000 5,000

Baw Baw Shire Council

11,400

Borough of Queenscliffe

20,000

Buloke Shire Council

12,500

Campaspe Shire Council

12,500

Central Goldfields Shire Council

15,750

City of Ballarat

10,000

City of Greater Geelong

107,500

City of Greater Shepparton

14,000

Colac Otway Shire Council

12,500

Corangamite Shire Council

30,000

East Gippsland Shire Council

24,618

Gannawarra Shire Council

12,500

Hindmarsh Shire Council

12,500

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

157

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Make it Happen in Provincial Victoria (Continued) Organisation

Payment $

Indigo Shire Council

20,000

Latrobe City Council

10,000

Local Government Professionals Inc

15,000

Loddon Shire Council

17,500

Mansfield Shire Council

12,500

Mildura Rural City Council

12,500

Mitchell Shire Council

20,812

Moira Shire Council

27,500

Murrindindi Shire Council

22,542

Northern Grampians Shire Council

12,500

Pyrenees Shire Council

15,000

Strathbogie Shire Council

820

Swan Hill Rural City Council

9,793

Towong Shire Council

7,000

Wangaratta Rural City Council

12,500

Wellington Shire Council

13,125

West Wimmera Shire Council Yarriambiack Shire Council Total

1,000 12,500 568,360

Next Generation Food Strategy Organisation Agri Solutions Pty Ltd

Payment $ 10,000

Australian Alpine Valley Agribusiness Forum Inc

4,000

Australian Alpine Valleys Agribusiness Forum Inc

1,500

Australian Institute of Refrigeration Air Conditioning and Heating (Inc)

20,000

Australian Specialist Cheesemakersâ&#x20AC;&#x2122; Association (ASCA)

54,000

Baw Baw Shire Council

30,000

Captains Creek Organic Wines

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

4,374

158

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Next Generation Food Strategy (Continued) Organisation Ceres Incorporated

Payment $ 3,000

Confectionery Manufacturers of Australasia Limited

10,000

Dairy Australia Ltd

40,000

East Gippsland Shire Council

20,000

Kosher Australia Pty Ltd

17,600

Organic Dairy Farmers’ Co-operative Limited

20,000

Organic Federation of Australia Ltd

5,000

South Gippsland Shire Council

30,000

Strathbogie Shire Council

20,000

The Australian Institute of Food Science and Technology Inc

17,500

The Gippsland Field Days

30,000

Tractor & Machinery Association of Australia

11,000

University of Ballarat Victorian Employers Chamber of Commerce and Industry Victorian Food Industry Training Board Inc

6,600 20,000 6,863

Victorian Health Promotion Foundation

20,000

Victorian Marine Farmers Inc

10,000

Victorian Olive Council Incorporated

10,000

Wellington Shire Council

15,000

Total

436,436

Regional Innovation Clusters Program Organisation

Payment $

City of Ballarat

55,000

City of Greater Bendigo

88,000

City of Greater Geelong

75,000

City of Greater Shepparton

135,000

City of Whittlesea

50,000

East Gippsland Shire Council

30,000

GMIC Ltd

25,000

Industry Capability Network (Vic) Ltd

25,000

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

159

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Regional Innovation Clusters Program (Continued) Organisation

Payment $

Mildura Rural City Council

72,000

Strathbogie Shire Council

50,000

Surf Coast Shire

25,000

Victoria University of Technology Wimmera Development Association Inc Total

100,000 25,000 755,000

Regional Investment Initiative Organisation

Payment $

A1 Asphalting Pty Ltd

30,000

Alpine Shire Council

6,201

Ararat Rural City Council

2,211

Ashton Pty Ltd

25,000

Baw Baw Shire Council

40,455

Benalla Auto Club Inc

13,000

Bendigo Bank Limited

400,000

Border Express Pty Ltd

50,000

Borough of Queenscliffe

12,500

Buloke Shire Council

9,925

Cardinia Shire Council

10,000

City of Ballarat

80,000

City of Greater Geelong

12,500

City of Greater Shepparton

40,000

City of Warrnambool

39,250

Colac Otway Shire Council

35,750

Corangamite Shire Council

3,750

Country Racing Victoria Ltd

12,500

CRF (Colac Otway) Pty Ltd

25,000

Drypac Pty Ltd

37,500

East Gippsland Shire Council

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

9,510

160

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Regional Investment Initiative (Continued) Organisation

Payment $

Ellerslie Hop Estate Pty Ltd

25,000

Glenelg Shire Council

32,500

Golden Plains Shire Council

37,500

Horsham Rural City Council

15,000

Indigo Shire Council

93,500

MacKay Casings Pty Ltd

20,000

Mansfield Shire Council

7,000

Minerals Council of Australia - Victorian Division

25,000

Mitchell Shire Council

26,028

Moorabool Shire Council

40,000

Mount Alexander Shire Council

27,400

Moyne Shire Council

50,000

Murrindindi Shire Council

20,175

Northern Grampians Shire Council

20,000

O’Dwyer Horse Shoe Sales Australia Pty Ltd

10,000

Paper Australia Pty Ltd Parks Victoria Patties Foods Pty Ltd

200,000 15,000 180,000

Rice Graphics Images Australia Pty Ltd

30,000

Riverland Oilseed Processors Pty Ltd

60,000

Rubicon Systems Australia Pty Ltd

50,000

Shire of Yarra Ranges

12,500

South Gippsland Shire Council

25,000

Southcorp Wines Pty Ltd

200,000

Southern Grampians Shire Council

2,430

Strathbogie Shire Council

6,600

Surf Coast Shire

12,500

The Haire Truck & Bus Repairs Pty Ltd

44,934

Wellington Shire Council

31,251

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

2,214,370

161

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Provincial Victoria Growth Fund Organisation ACN 060 661 663 Pty Ltd Trading As Horsham Colour

Payment $ 5,000

Albins Off Road Gear Pty Ltd

30,000

Alpine Shire Council

16,975

Ararat Golden Gateway Festival Committee Inc

7,000

Ararat Rural City Council

9,150

Ballarat Goldfields N.L. Barwon Heads Festival of the Sea Inc

20,000 7,500

Bass Coast Shire Council

30,690

Baw Baw Shire Council

50,000

BBI Biofuels Australia Pty Ltd

56,000

Beaufort Golf Club Inc

5,250

Benalla Rural City

10,000

Birchip Cropping Group Inc

18,750

Borough of Queenscliffe

3,500

Business Networking for Growth (Central Victoria) Inc

7,500

Campaspe Shire Council

10,000

Caramut Recreation Reserves Inc

5,000

Careers Connection LPC Inc

3,861

Champions of the Bush Inc

75,000

City of Greater Bendigo

72,668

City of Greater Geelong

90,000

City of Greater Shepparton

63,750

City of Warrnambool

68,982

Clyne Farms Pty Ltd

28,500

Colac Otway Shire Council

30,000

Dairy Australia Ltd Department For Victorian Communities Department of Human Services Department of Infrastructure Department of Primary Industries

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

100,000 1,700,000 50,000 390,000 1,187,000

162

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Provincial Victoria Growth Fund (continued) Organisation Department of Sustainability and Environment Department of Transport and Regional Services Department of Treasury and Finance

Payment $ 1,920,000 37,275 150,000

Dunolly Rush 150 Inc

5,000

East Gippsland Shire Council

7,238

Eildon Action Inc

28,500

Gannawarra Shire Council

22,500

Geelong Ethnic Communities Council Inc

10,000

Gekko Systems Pty Ltd

25,000

Glenelg Shire Council

25,000

Golden and Paradise Beach Ratepayers and Residents Association Inc

5,000

Golden Plains Shire Council

7,500

Goulburn Valley Aero Club Incorporated Grip Youth Services Inc

22,500 5,000

Hindmarsh Shire Council

10,000

Horsham Rural City Council

99,000

Irrewarra Estate Pty Ltd

11,325

ITC Timber Heyfield Pty ltd

28,000

Lake Imaging Pty Ltd

20,000

Latrobe City Council

79,364

Lemnos Football & Netball Club Inc

40,000

Loddon Shire Council

110,000

Macedon Ranges Shire Council

28,994

Mansfield Shire Council

62,500

Maxitrans Australia Pty Ltd

6,000

Mildura Rural City Council

16,500

Minerals Council of Australia - Victorian Division Mitchell Shire Council Moira Shire Council

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

150,000 4,650 65,000

163

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Provincial Victoria Growth Fund (continued) Organisation Mount Alexander Shire Council Moyne Shire Council Municipal Association of Victoria

Payment $ 5,000 18,055 275,000

Murrindindi Shire Council

4,530

Mystic Mountains Tourism Inc

7,500

Northern Grampians Shire Council

7,500

Ouyen Inc.

10,000

Port Fairy Tourist Association Inc

6,000

Portland Tourist Association Inc

20,000

Pyrenees Shire Council

50,000

Regional Science Association International - Australia & New Zealand Section Inc

10,000

Robin Hood Revived Inc Rotary Club of Bairnsdale Sunrise Inc Rotary Club of Maffra Inc SalesForce Australia Pty Ltd South Gippsland Shire Council

4,100 10,000 5,000 250,000 3,750

Spring Creek Community House Inc

17,500

Stawell Athletic Club Inc

60,000

Steel Frame Solutions Pty Ltd

12,000

Strathbogie Shire Council

22,500

Swan Hill Rural City Council

47,094

The Australian Industry Group

50,000

Tourism Victoria Towong Shire Council

2,500,000 7,500

Unilever Australia Ltd

25,000

United Group Rail Pty Ltd

20,000

Victorian Cycling Inc

11,250

Victorian Wine Industry Association VLGA Inc

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

100,000 90,000

164

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) Provincial Victoria Growth Fund (continued) Organisation

Payment $

Wangaratta Rural City Council

30,000

West Gippsland Dance Festival Inc

10,000

West Wimmera Shire Council

1,780

Wimmera Development Association Inc

103,500

Wodonga City Council

87,500

Yarriambiack Shire Council

3,000

Yea Wetlands Trust

7,000

Total

11,045,981

Organisation

Payment $

Minerals Council of Australia - Victorian Division

10,000

Regional Infrastructure Development Fund Financial Assistance exceeding $38.3 million was announced from the Fund to the following organisations:

RIDF – General Projects (under various sub programs) Organisation

Project Name

Bendigo Mining Limited

Water for Industry - New Moon WTP to Bendigo Recycled Water Pipeline

1,000,000

Campaspe Shire Council

Campaspe Industrial Estates

1,055,000

Central Goldfields Shire Council

Regional Industry Investment Program – Maryborough Food Precinct

Central Gippsland Region Water Authority

Water for Industry - Industrial Water Saving Initiatives

900,000

Goulburn Valley Water

Tatura Wastewater Management and Reuse Project

486,000

Greater Bendigo City Council

Bendigo Regional Archive Centre

Murray Goulburn Co-operative Company Limited

Leitchville Waste Water Reuse System

Murray Goulburn Co-operative Company Limited

Leongatha Water and Energy Project

1,570,000

Murray Goulburn Co-operative Company Limited

Water for Industry - Leongatha - Water Recycling Project

2,000,000

Unilever Australasia

Regional Industry Investment Program - Dry Processing for Tatura

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

RIDF Amount Approved $

1,000,000 930,000

165

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) RIDF – General Projects (under various sub programs) (Continued) Organisation

Project Name

RIDF Amount Approved $

V/Line

Mildura Riverfront Development Facilitation Project (Freight Gate Relocation)

8,000,000

Victorian Farmers Federation

Renewed Stock Over/Underpass Program

1,500,000

Wangaratta Rural City Council

North Wangaratta Industrial Precinct

1,170,000

Warrnambool City Council

Warrnambool Regional Airport Redevelopment

320,000

Wellington Shire Council

West Sale Aerodrome Infrastructure Upgrade

450,000

* Details of these investment grants have not been disclosed as they are deemed commercial in confidence

RIDF – Moving Forward Programs Organisation

Project Name

RIDF Amount Approved $

Local Dairy Roads Baw Baw Shire Council

Road Improvements

200,000

Campaspe Shire Council

Road Improvements

258,000

Colac-Otway Shire Council

Road Improvements

250,000

Corangamite Shire Council

Road Improvements

821,000

Gannawarra Shire Council

Road Improvements

102,500

Indigo Shire Council

Road Improvements

187,500

Moira Shire Council

Road Improvements

1,011,000

Moyne Shire Council

Road Improvements

847,500

South Gippsland Shire Council

Road Improvements

198,985

Wellington Shire Council

Road Improvements

68,200

Local Ports Colac Otway Shire Council

Apollo Bay

1,114,506

Gippsland Ports Committee of Management

Lakes Entrance

1,055,000

Gippsland Ports Committee of Management

Mallacoota

305,000

Gippsland Ports Committee of Management

Paynesville

735,000

Gippsland Ports Committee of Management

Port Welshpool & Port Albert

870,000

Moyne Shire Council

Port Fairy

916,542

Parks Victoria

Bellarine – Portarlington

844,700

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

166

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) RIDF – Moving Forward Programs (Continued) Organisation

Project Name

RIDF Amount Approved $

Arts Infrastructure Wangaratta Rural City Council

Wangaratta Performing Arts Centre

4,500,000

Wimmera Regional Intermodal Freight Hub Project

2,250,000

Intermodal Freight Hubs Horsham Rural City Council Provincial Pathways Indigo Shire Council

Murray to the Mountain Rail Trail – the Murray Connection

495,000

Moyne Shire Council

Warrnambool to Port Fairy Rail Trail

850,000

RIDF – Small Towns Development Fund Organisation

Project

Alpine Shire Council

Fainter Falls Walking Trail

200,000

Alpine Shire Council

Mystic Park Development

120,000

Ararat Rural City Council

Caledonian Court Sustainable Industrial Estate

250,000

Ararat Rural City Council

Lake Bolac Community Precinct

122,000

Ararat Rural City Council

Tatyoon Hall Upgrade

140,000

Ararat Rural City Council

Willaura Memorial Hall Upgrade

50,000

Ballarat City Council

Miners Rest Community Hall Project

10,000

Bass Coast Shire Council

Inverloch Visitor Information Centre Redevelopment

92,550

Baw Baw Shire Council

Drouin Retail Enhancement

110,000

Baw Baw Shire Council

Long Tunnel Mine Accessibility

100,000

Baw Baw Shire Council

Walhalla Goldfields Railway Reconstruction

187,500

Borough of Queenscliffe

Bellarine Peninsula Railway Development

250,000

Buloke Shire Council

Birchip Memorial Park Rejuvenation

57,531

Buloke Shire Council

Green Lake Recreation Facilities

73,308

Buloke Shire Council

Nandaly Hall Upgrade

24,610

Campaspe Shire Council

Lockington Rural Expo Facilities

Campaspe Shire Council

Pinegrove Recreation Reserve Upgrade

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

$ Amount

125,000 26,000

167

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) RIDF – Small Towns Development Fund (Continued) Organisation

Project

Central Goldfields Shire Council

Maryborough Princes Park Facilities Upgrade

Central Goldfields Shire Council

Talbot Australian Communications Museum

106,000

Central Goldfields Shire Council

Worsley Cottage - Development of Research and Exhibition Space

110,000

Colac-Otway Shire Council

Apollo Bay GPS Base Station

24,000

Colac-Otway Shire Council

Great Ocean Road Visitor Information Centre Upgrade Stage 2

45,000

Colac-Otway Shire Council

Pirron Yallock Hall Upgrade

40,000

Corangamite Shire Council

Berrybank Hall Upgrade

20,000

Corangamite Shire Council

Coast to Craters Interpretive Centre

Corangamite Shire Council

Lismore Township Revitalisation

90,000

Corangamite Shire Council

Pomborneit Hall Upgrade

20,000

East Gippsland Shire Council

Bairnsdale Racecourse Recreation Reserve Community Facilities Upgrade

200,000

East Gippsland Shire Council

Luderick Point (Bemm River) Tourist Facility Redevelopment

100,000

East Gippsland Shire Council

Metung Shared Path

110,000

East Gippsland Shire Council

Swifts Creek CBD Renewal

250,000

East Gippsland Shire Council

Tabbara Historic Interpretation Walk

49,200

Gannawarra Shire Council

Benjeroop Hall Upgrade

35,944

Gannawarra Shire Council

Lalbert Community Facility Development

80,000

Gannawarra Shire Council

Lalbert Town Centre Development

67,199

Gannawarra Shire Council

Mystic Park Water Supply Improvements

70,000

Glenelg Shire Council

Dartmoor Quality Water Supply

Glenelg Shire Council

Heywood’s Fitzroy River Precinct Upgrade

Greater Geelong City Council

Barwon Heads Central Improvement

250,000

Greater Geelong City Council

Ceres Township Development

125,000

Greater Geelong City Council

Leopold Hall Upgrade

102,400

Greater Shepparton City Council

Tatura Community Activity Centre Refurbishment

Greater Shepparton City Council

Tatura Park Exhibition and Events Complex

Greater Shepparton City Council

Toolamba Park Development

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

$ Amount 40,000

250,000

250,000 63,000

92,500 250,000 70,000

168

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) RIDF â&#x20AC;&#x201C; Small Towns Development Fund (Continued) Organisation

Project

Hepburn Shire Council

Clunes Town Hall Upgrade

56,000

Hepburn Shire Council

Creswick Park Lake Improvements

58,000

Hepburn Shire Council

Daylesford Railway Market Precinct Upgrade

68,000

Hindmarsh Shire Council

Dimboola Streetscape

46,913

Hindmarsh Shire Council

Nhill South Eastern Approach

98,000

Hindmarsh Shire Council

Rainbow Urban Design Plan Implementation - Stage 1

48,000

Horsham Rural City Council

Dadswell Bridge Village Pathway Link

33,864

Indigo Shire Council

Wahgunyah School of Arts Hall Refurbishment

56,000

Latrobe City Council

Boolarra Memorial Hall Renovations

98,000

Loddon Shire Council

Boort Community Facility Aerodrome Terminal

87,001

Loddon Shire Council

Boort Eastern Entrance Development - Stage One

250,000

Loddon Shire Council

Inglewood Reservoir Water to Reserve

133,333

Loddon Shire Council

Inglewood Shopping Precinct Development

150,000

Loddon Shire Council

Pyramid Hill Walking Track

Macedon Ranges Shire Council

Lancefield Park Community Facilities Upgrade

195,035

Mansfield Shire Council

Mansfield Community Connectivity

250,000

Mildura Rural City Council

Lake Cullulleraine Track Upgrade

17,593

Mildura Rural City Council

Ouyen Roxy Theatre Precinct Development

36,333

Mildura Rural City Council

Ouyen Water Return

193,507

Mildura Rural City Council

Underbool Community Facility Development

130,000

Mildura Rural City Council

Underbool Water Upgrade

250,000

Mitchell Shire Council

Pyalong Recreation Reserve Upgrade

140,000

Moorabool Shire Council

Ballan Streetscape

120,000

Mount Alexander Shire Council

Elphinstone Sawpit Gully Reserve Development

70,000

Mount Alexander Shire Council

Maldon Gardens Rejuvenation and Rotunda

49,000

Mount Alexander Shire Council

Maldon Heritage Streetscape Renewal

84,000

Moyne Shire Council

Koroit CBD Streetscape

Murrindindi Shire Council

Acheron Hall Upgrade - Stage 2

Murrindindi Shire Council

Kinglake Memorial Reserve Facility Upgrade

Murrindindi Shire Council

Yea Recreation Reserve Facility Upgrade

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

$ Amount

19,280

100,000 18,000 100,000 81,000

169

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued) RIDF â&#x20AC;&#x201C; Small Towns Development Fund (Continued) Organisation

Project

Northern Grampians Shire Council

Halls Gap Pre-Treatment of Water

250,000

Northern Grampians Shire Council

Stawell Industrial Gas Pipeline

185,000

Pyrenees Shire Council

Avoca Streetscape

200,000

Pyrenees Shire Council

Raglan Hall Revival - Stage 2

30,000

Strathbogie Shire Council

Euroa Golf Course Water Re-use

60,000

Strathbogie Shire Council

Progressing Euroa

249,000

Surf Coast Shire Council

Bob Pettitt Reserve Community Infrastructure

100,000

Swan Hill Rural City Council

Robinvale Riverfront Renewal - Stage 1

97,700

Swan Hill Rural City Council

Wemen Hall Development

84,000

Wangaratta Rural City Council

Edi Upper Hall Refurbishment

90,000

Wangaratta Rural City Council

Eldorado Footbridge

74,000

Wangaratta Rural City Council

Peechelba Public Purpose Reserve Upgrade

23,360

Warrnambool City Council

Allansford Hall Upgrade

Wellington Shire Council

Cowwarr Streetscape

Wellington Shire Council

Dargo and Licola Bore Construction

Wellington Shire Council

Victoria Park (Sale) Innovative Water Saving

Yarriambiack Shire Council

Beulah Memorial Park Redevelopment

Yarriambiack Shire Council

Beulah Pioneer Park Development

Yarriambiack Shire Council

Brim Sports and Social Club Rain Water Harvesting and Use

12,944

Yarriambiack Shire Council

Minyip Recreation Reserve Rain Water Harvesting - Stage 1

23,993

Yarriambiack Shire Council

Murtoa Community Centre Additions

46,000

Yarriambiack Shire Council

Murtoa Community Centre Rain Water Harvesting

Yarriambiack Shire Council

Yaapeet Recreation Reserve Camping Facilities

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

$ Amount

132,500 56,000 200,000 70,000 193,370 6,581

4,513 55,716

170

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

POLICY GRANTS Grants totalling $1.2 million were made from the Policy Output and are detailed below: Enhancing Greenhouse Considerations in New Investment Organisation

Payment $

Amcor Packaging (Australia) Pty Ltd

52,800

BMW Melbourne Pty Ltd

21,868

BRK Pty Ltd Caterpillar of Australia Pty Ltd

9,535 100,000

Chiquita Mushrooms Pty Ltd

66,100

Country Road Clothing Pty Ltd

79,138

CSL Limited

62,467

Fivex Pty Ltd

42,000

George Weston Foods Ltd

64,416

Longwarry Food Park Pty Ltd

60,000

Maffra Farmhouse Cheese Pty Ltd

9,992

Mountain Goat Beer Pty Ltd

7,218

Target Australia Pty Ltd

62,500

Unilever Australia Ltd

14,900

Total

652,934

Provision of Import Replacement Services Organisation Industry Capability Network (Vic) Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Payment $ 500,000

171

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

INDUSTRIAL RELATIONS GRANTS Grants totalling $1.7 million were made for Industrial Relations Victoria and Workplace Rights Advocate and the recipient companies and organisations are listed below.

Better Work and Family Balance Organisation

Payment $

Australian Services Union

35,200

Plumbing Industry Commission

40,000

The Master Grocers’ Association of Victoria Ltd (MGAV)

31,520

Women’s Information & Referral Exchange Inc

39,700

Worklife Association Inc

11,300

Total

157,720

Support Funding Organisation

Payment $

Job Watch Inc

1,577,000

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

172

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS Grants totalling $84.8 million under the Department’s Science, Technology and Innovation programs are listed below.

2006 Victorian Fellowship Recipient

Payment $

Fry, Bryan

18,000

Stoddart, Paul R

17,463

Tabbara, Mohammad

18,000

Tynan, Fleur

18,000

Van Der Weerden, Nicole

17,882

Lioe, Hadi

18,000

Total

107,345

2006 Victoria Prize Recipient Solomon, Prof David

Payment $ 50,000

Australian Technology Showcase Program Organisation

Payment $

Davies Craig Pty Ltd

4,000

Iatia Imaging Pty Ltd

4,000

IXC Australia Limited

502,000

Total

510,000

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

173

Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued) Biomedical Research - Operational Infrastructure Support Program Organisation ASN Events Pty Ltd

Payment $ 5,000

Australian Neuroscience Society Inc

25,000

Australian Stem Cell Centre Ltd

80,000

Baker Heart Research Institute

2,579,844

Bernard O’Brien Institute of Microsurgery

283,020

Bionic Ear Institute

365,596

Brain Research Institute Pty Ltd

262,192

Centre for Eye Research Australia Ltd

304,304

Genomic Disorders Research Centre

5,000

Howard Florey Institute of Experimental Physiology and Medicine IXC Australia Limited

1,827,436 87,500

Ludwig Institute for Cancer Research

1,402,564

MacFarlane Burnet Institute for Medical Research and Public Health Ltd

3,187,272

Mental Health Research Institute

572,280

Monash University

1,402,660

Murdoch Childrens Research Institute

2,218,684

National Stroke Research Institute

358,944

Prince Henry’s Institute of Medical Research

973,300

St Vincent’s Institute of Medical Research

1,526,712

The Walter and Eliza Hall Institute of Medical Research

8,643,692

Total

26,111,000

Biotechnology Organisation Acrux DDS Pty Ltd

Payment $ 2,929

American Australian Association

12,024

AusBiotech Ltd

42,158

Australian Research Centre for Complementary & Alternative Medicine

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

260,000

174

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued) Biotechnology (Continued) Organisation

Payment $

Australian Science Communicators Inc

15,000

Australian Stem Cell Centre Ltd

82,929

Bio21 Australia Ltd

36,465

Biota Holdings Ltd

1,465

Box Hill Institute of TAFE

10,493

Brain Research Institute Pty Ltd

500,000

Department of Primary Industries

216,500

Genomic Disorders Research Centre Invetech Pty Ltd IXC Australia Limited

50,000 733 175,000

Minifab (Aust) Pty Ltd

1,465

Monash University

1,465

Neurosciences Victoria Ltd

2,929

Nucleus Network Limited Peter MacCallum Cancer Institute Phillips Ormonde Fitzpatrick RMIT University Small Technologies Cluster Ltd

733 94,932 1,465 703,876 1,465

The Meeting Planners Pty Ltd

27,000

University of Melbourne

65,733

Victoria University of Technology

46,171

Victorian Curriculum and Assessment Authority

12,000

Young Achievement Australia

24,000

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

2,388,929

175

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued) CRC Support Program Organisation

Payment $

CRC-Safe Pty Ltd

40,000

Hearworks Pty Ltd

6,000

Innovative Dairy Products Pty Ltd International Diabetes Institute

156,000 6,000

La Trobe University

46,000

Monash University

30,000

RMIT University

61,000

Victoria University of Technology

23,247

Victorian Centre for Advanced Materials Manufacturing Total

6,000 374,247

Energy Technology Innovation Strategy Organisation Department of Primary Industries Swinburne University of Technology Total

Payment $ 4,000,000 46,000 4,046,000

Healthy Futures - The Victorian Life Sciences Statement Organisation

Payment $

Howard Florey Institute of Experimental Physiology and Medicine

5,000,000

The Walter and Eliza Hall Institute of Medical Research

5,000,000

University of Melbourne

1,900,000

Total

11,900,000

Science & Technology R&D Fund Organisation

Payment $

Aortech Biomaterials Pty Ltd

61,861

C.C.H. Pty Ltd

73,333

Health1st Pty Ltd Neurosciences Victoria Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

162,325 19,783

176

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued) Science & Technology R&D Fund (Continued) Organisation Pulmosonix Pty Ltd Total

Payment $ 52,071 369,372

STI - Skills and Awareness Organisation Advance Global Australian Professionals

Payment $ 6,715

Attracta Pty Ltd Trading As Managing Values

12,000

Australian Academy of Technological Sciences and Engineering

77,000

Australian Institute of Policy and Science

19,000

Australian Institute of Political Science

2,000

Australian Science Communicators Inc

65,000

Australian Science Media Centre Inc

30,000

CSIRO

135,000

General Sir John Monash Foundation

100,000

La Trobe University

11,000

NPG Nature Asia-Pacific

10,000

Science Teachers Association of Vic

25,850

Sciencenow! Inc

37,000

Smart Geelong Network Ltd

41,000

Victoria University of Technology

18,000

Victorian Endowment for Science, Knowledge & Innovation Ltd

90,618

Wodonga Institute of TAFE Total

1,000 681,183

STI - Vic Start Program Organisation

Payment $

Australian Aerospace and Defence Innovations Ltd

440,000

Australian Institute for Commercialisation Ltd

550,000

Food Science Australia

320,000

IXC Australia Limited

148,000

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

www.business.vic.gov.au 177

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued) STI - Vic Start Program (Continued) Organisation

Payment $

Knowledge Commercialisation Australasia Inc

5,000

RMIT University

2,000

The Australian Industry Group Total

15,000 1,480,000

STI Awareness Grant from DPC Organisation Buchbinder, Rachelle Cox, Helen Dr

Payment $ 8,000 16,000

MacInnis, Robert

8,000

Tynan, Fleur

8,000

Total

40,000

STI Initiative Organisation

Payment $

Australian Genome Research Facility Ltd

550,000

Australian Nano Business Forum Ltd

328,000

Bayside Health

1,222,332

Brain Research Institute Pty Ltd

2,000,000

Cancer Council of Victoria

3,300,000

Centre for Eye Research Australia Ltd

588,000

CRC for Advanced Automotive Technology Ltd

600,000

CSL Limited

892,872

Event Planners Australia Pty Ltd

50,000

Florigene Ltd

30,000

Food Science Australia

1,415,617

Ford Motor Company of Australia Ltd

3,750,000

Geelong Quality Council Global Access Partners Pty Ltd

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

5,000 20,000

178

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued) STI Initiative (Continued) Organisation IF Education Pty Ltd Institute of Materials Engineering Australasia Ltd

Payment $ 65,000 5,000

Monash University

7,130,000

Nanotechnology Victoria Ltd

3,054,179

Neurosciences Victoria Ltd

600,000

Polymers CRC Ltd

500,000

Small Technologies Cluster Ltd

1,312,500

The Australian Tissue Engineering Centre Ltd

1,200,000

The Victorian Centre for Medical Bionics

2,041,000

University of Melbourne

3,093,629

Victorian Centre for Advanced Materials Manufacturing

2,054,811

Victorian Endowment for Science, Knowledge & Innovation Ltd W Acacia Ridge Pty Ltd Total

84,382 200,000 36,092,322

Support Funding Organisation Victorian Endowment for Science, Knowledge & Innovation Ltd

Payment $ 433,000

Synchrotron Organisation Australian National University

Payment $ 5,000

Australian Science Communicators Inc

10,000

City of Monash

35,000

Kempson, Ivan

10,000

La Trobe University

25,000

Swinburne University of Technology University of South Australia Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

5,000 139,000 229,000

179

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

MULTIMEDIA VICTORIA Grants totalling $11.5 million under the Departmentâ&#x20AC;&#x2122;s Multimedia Victoria programs are listed below. Due to machinery of Government changes Multimedia Victoria moved from the Department of Infrastructure to DIIRD toward the end of 2006. Only those grants paid in the six months from 1 January 2007 appear here in the DIIRD annual report. Information on Multimedia Victoria grants for the first six months of 2006-07 are available on request from the Department of Infrastructure. ICT Entrepreneurs Program Organisation Australian Information Industry Assoc Ltd

Payment $ 6,600

TAFE ICT Industry Based Learning Program Organisation

Payment $

RMIT University

13,200

Goulburn Ovens Institute of TAFE

12,878

Swinburne TAFE - Hawthorn Campus

13,200

Wodonga Institute of TAFE

13,200

Total

52,478

ICT Careers Awareness Organisation Australian Industry Group

Payment $ 110,000

ICT Trade Fairs & Missions Organisation

Payment $

Accelerated Language Learning Centre

2,750

Act III Pty Ltd

2,750

Acttiv Pty Ltd

2,750

Advanced Publishing Systems Pty Ltd

4,400

Aefos Asia Pty Ltd

2,750

Amskan Holdings Pty Ltd

17,600

Ansearch.com.au Pty Ltd

13,750

APCS (Australian Project & Consulting Services)

2,750

Aruspex

2,750

Ausphotonics Pty Ltd

2,750

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

MULTIMEDIA VICTORIA (continued) ICT Trade Fairs & Missions (Continued) Organisation

Payment $

Australia Live Video Services Pty Ltd

2,750

Axiom Intelligence Pty Ltd

2,750

Azurn International Limited

2,750

Benaral Pty Ltd

2,750

Big Pipe Media Pty Ltd

5,500

Brian Watson & Associates T/As Desktop EDA

7,871

Businesms.com Software

8,800

Business Intelligence Technologies Pty Ltd

8,250

Capture Plan

4,400

Catalyst Interactive Pty Ltd

11,000

Cattle Puppy Productions

2,750

CEOS Pty Ltd

4,400

Challenger Momentum

5,500

Clarinox Technologies Pty Ltd

2,750

Clearhouse Technology Pty Ltd

2,750

Crocmedia Pty Ltd

2,750

D.L.F. Productions Pty Ltd

3,043

Dataworks Australia Pty Ltd

4,400

Digital Education Services

4,400

DVD Trivia Games

6,605

Eaglecat Media Pty Ltd

2,750

Easy2learn

2,750

Eb2bcom

2,750

Edsoft Pty Ltd

2,750

eLearning Industry Association Of Victoria

11,000

Endgames Studios Pty Ltd

6,627

Enedia Pty Ltd

2,750

Etech Group Pty Ltd

4,400

Everyday Interactive Networks

2,750

Exinda Networks

2,750

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

181

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

MULTIMEDIA VICTORIA (continued) ICT Trade Fairs & Missions (Continued) Organisation

Payment $

Firemint

2,750

Folios International Pty Ltd

4,400

Footy Heads Pty Ltd

2,750

Forget the Rules Pty Ltd

2,750

Form Australia Pty Ltd

5,500

Fred Bergman Healthcare

2,750

Geekit Group Pty Ltd

2,750

Global Xchange Pty Ltd

8,250

Haliplex Pty Ltd

4,400

Health 1st Pty Ltd

5,500

I4-talent

5,500

Imaginating Pty Ltd

5,274

Inference Communications Pty Ltd

2,750

Infinite Interactive Pty Ltd

2,750

Invision IT Systems Pty Ltd

4,400

Inzenius Pty Ltd

11,000

IP3 Systems Ltd

2,750

Iron Monkey Studios Pty Ltd

2,750

Kade Laing Pty Ltd

2,750

Kingfisher International Pty Ltd

4,400

Komodo CMS Pty Ltd

4,400

Lateral Plains Pty Ltd

2,750

Magian Design Studio Pty Ltd

8,800

Marberg Investment Group

2,750

Multimedia On Wheels

2,750

Musicmate Pty Ltd

2,750

Neoproducts Pty Ltd

2,750

Netralia Pty Ltd

2,750

NG Technology Pty Ltd

2,750

One by One Advertising T/As Euple

2,750

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

182

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

MULTIMEDIA VICTORIA (continued) ICT Trade Fairs & Missions (Continued) Organisation

Payment $

Open Windows Australia Pty Ltd

7,150

Optotech Pty Ltd

2,750

Pace Marketing Pty Ltd

2,750

Playscape Games

2,750

Polaris Communications Pty Ltd

8,800

Portable Content

8,800

Prime Source Pty Ltd

2,750

Pronto Software

4,400

Protea Textware Pty Ltd

13,200

Rapid Map Global Pty Ltd

2,750

Red Bubble Pty Ltd

8,250

Revolution IT

2,750

Ricsonix Pty Ltd

10,703

Rising Software Australia Pty Ltd

2,750

ROK Technology Pty Ltd

2,750

Rubber Music Pty Ltd

2,750

Salt Group Pty Ltd

2,750

Screen Services

2,750

SE3 Consulting Pty Ltd

2,750

Senko Advanced Components Aust Pty Ltd

2,750

Shannon Trottman

2,500

Sm@rtTrans Ltd

8,250

Soft Business Service Pty Ltd

2,413

Software Escrow & Copyright Agents Pty Ltd

5,500

Solution E Aust Pty Ltd

2,750

Sourcedynamix Asia Pacific Pty Ltd

5,500

Southern Innovation

2,750

Spangaro Systems Pty Ltd

2,750

Sprocket Technologies Pty Ltd

2,750

Studio Moshi Pty Ltd

5,500

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

MULTIMEDIA VICTORIA (continued) ICT Trade Fairs & Missions (Continued) Organisation

Payment $

Sync Me Pty Ltd

2,750

Synetek Systems Pty Ltd

2,750

Technology Management Services Pty Ltd

5,500

The Brisk Group

5,500

The International Intangible Management Standards Institute Pty Ltd

2,750

The Tribe

2,750

Think2 Design Pty Ltd

2,750

Torian Wireless Limited

17,600

Torus Games Pty Ltd

14,813

Total Tel International Pty Ltd

2,750

Triveni Infotech Pty Ltd

2,750

Twofold Media Pty Ltd

2,750

Umbrella Entertainment

2,750

Universal Trustees Pty Ltd

5,500

Web and Flo Pty Ltd

5,500

Wicked Witch Software Pty Ltd

2,750

Wiltronics Research Pty Ltd

2,750

World Wide Entertainment

8,800

Yellowfin International Pty Ltd

5,500

Yoober Pty Ltd

2,750

Ziptales

4,400

Zoomorphix Systems

2,750

Total

560,350

Priority Industry Programs Organisation Australian Information Industry Assoc Ltd

Payment $ 110,000

Pearcey Foundation Inc

5,500

University of Melbourne

11,000

Victorian Freight and Logistics Council Ltd

27,500

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

184

Appendices to Annual Report 2006 â&#x20AC;&#x201C; 07 Department of Innovation Industry and Regional Development

MULTIMEDIA VICTORIA (continued) Priority Industry Programs (Continued) Organisation Victorian ICT for Women Network Inc Total

Payment $ 22,550 176,550

Gameplan Implementation Organisation

Payment $

Game Developersâ&#x20AC;&#x2122; Association of Australia Incorporated

22,000

Microsoft Pty Ltd

65,000

Total

87,000

Motion Capture Studio Organisation Deakin University

Payment $ 54,559

e-Education Organisation

Payment $

eLearning Industry Association of Victoria

66,000

Think Business Events

10,000

Total

76,000

Industry Linkages Program Organisation

Payment $

Asiba

66,000

Deakin University

55,000

RFID Action Australia Ltd

22,000

Total

143,000

Broadband Innovation Fund Organisation

Payment $

Department of Sustainability and Environment

401,500

Department of Treasury and Finance

427,856

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

185

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MULTIMEDIA VICTORIA (continued) Broadband Innovation Fund (Continued) Organisation

Payment $

LMHA Network Ltd

660,000

National Gallery of Victoria (NGV)

275,000

South West Alliance of Rural Health

330,000

Total

2,094,356

ICT Industry Skills Scholarships Organisation

Payment $

La Trobe University

25,133

The University of Melbourne

13,200

Victoria University of Technology

13,200

Victoria University Total

1,200 51,533

NICTA Victorian Research Laboratory Organisation National ICT Australia Limited

Payment $ 4,950,000

Industry & Universities Collaboration Program Organisation

Payment $

RMIT University

6,583

Victoria University of Technology

6,000

Total

12,583

e-Research Program Organisation

Payment $

Monash University

1,540,000

The University of Melbourne

1,540,000

Total

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

3,080,000

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GRADUATE RECRUITMENT AND RETENTION The Department is committed to securing and developing talent for the future through its recruitment practices and development programs. Graduate recruitment and development through the Victorian Public Service (VPS) Graduate Recruitment and Development System (GRDS) is an important tool for securing future talent. The Department recruited four graduates in the 2006 GRDS intake. Following the 12 month rotation program through a range of VPS departments and agencies, all graduates resumed employment with DIIRD. In 2007 the Department increased its investment in graduate recruitment and development by recruiting 10 graduates through the GRDS. The Department’s graduates are currently in their second rotation and are due to return to the department in February 2008.

SELECTION ON MERIT AND EXEMPTIONS FROM ADVERTISEMENT Recruitment and selection processes uphold merit and equity and are fully operational within the Department. Policies, guidelines and associated documentation enshrining merit and equity continue to be promoted through training, brochures, and expert advice provided by the Human Resources Branch. Vacant roles are advertised widely to attract the best field of applicants, and merit selection applies. The authority to exempt vacancies from advertisement rests with the Secretary and/or authorised delegates in prescribed circumstances. During 2006-07, a total of 50/55 roles were exempt from advertisement.

SUPERANNUATION SCHEME Departmental employees who commenced prior to 1994 are members of either the Revised or New scheme, which are defined benefits schemes. These schemes are administered by the Government Superannuation office; now an operating division of the Emergency Services Superannuation Board. Since 1994, employees have been able to nominate to have employer contributions made to VicSuper or to an external complying accumulation fund of their choice. Details of superannuation schemes to which the Department made contributions are included in the Notes to the Financial Statements.

ISSUE RESOLUTION The Department’s issue resolution process is structured to conform to the Public Administration (Review of Actions) Regulations established in 2005. The Department’s process focuses on early intervention and informal resolution processes, wherever possible. There were two issues lodged in 2006-07.

UPHOLDING PUBLIC SECTOR CONDUCT Encouraging a culture where people treat others with respect and dignity lies at the forefront of the Department’s People Framework. The values of accountability, respect, responsiveness, integrity, impartiality and leadership, which underpin the Code of Conduct for the Victorian Public Sector (VPS), have been adopted by the Department as organisational values. The Code of Conduct is promoted within the Department to new employees through an online learning module. The module explores ethical issues and promotes understanding and awareness of the rights, responsibilities and behaviours expected of VPS employees. Information about public sector conduct and the VPS employment principles is promoted via policies on the intranet and through expert advice provided by Human Resources practitioners in the Department.

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OCCUPATIONAL HEALTH AND SAFETY The Department recognises its moral and legal responsibility to provide and maintain a safe and healthy work environment for employees, trainees, contractors and other members of the public. During 2006-07, the Department implemented a range of initiatives, policies and programs as identified in the Occupational Health and Safety (OH&S) Strategy. Activities over the past 12 months have included: • quarterly meetings of a Health and Safety Committee to discuss policy issues and develop preventative measures.

The meetings were chaired by the Deputy Secretary Corporate Services and the minutes were tabled at the Departmental Executive Committee. • a review of membership of the Health and Safety Committee and the nomination of new Health and Safety

Representatives • refresher training for Health and Safety Representatives • development and distribution of a Workplace Bullying Policy • dedicated OH&S notice boards established within all designated work groups to promote and advertise OH&S initiatives,

information and requirements • incident reporting and investigation policies and documentation revised, updated and posted on the OH&S intranet

site and notice boards.

WORKPLACE DIVERSITY INITIATIVES The Department continues to foster workplace diversity, and demonstrated its commitment to an inclusive work environment through a number of Workplace diversity initiatives throughout the year. These initiatives focused on policy development, awareness raising and personal and professional development opportunities for managers and supervisors. Key achievements for 2006-07 include: • the continued roll out of Rights and Responsibility Training across the Department • the implementation of the Department’s Disability Action Plan and its six key deliverables - particularly the commitment

to providing opportunities for people with disabilities to work and develop careers within DIIRD • two successful, well attended networking events focused on women’s leadership and community outreach and

involvement, run by the Women’s Network • the evaluation of the Women in Management Program and the redesign of the course curriculum and content.

YOUTH EMPLOYMENT SCHEME The Department has participated in the Youth Employment Scheme (YES) program since its inception in 2000, and remains committed to meeting the Government’s ‘Jobs for Victoria’ employment goals and targets each year. In 2006-07 the Department accepted 22 traineeship placements. A considerable number of these placements are now in regional Victoria. The majority of YES placements are in the administrative and clerical roles, with trainees undertaking diverse tasks that provide valuable on the job training. In 2006-07, 41 per cent of YES trainees were successful in gaining employment with the Department either on an ongoing or fixed-term basis. The Department will continue to actively participate in the YES program and endeavour to help build trainees’ skills, provide employment opportunities and foster career pathways for young people.

DISABILITY ACTION PLAN DIIRD Disability Action Plan for 2006-09 was launched by the Secretary during the year. The Plan outlines a range of strategies to be implemented over the next three years to increase opportunities for people with a disability to participate in DIIRD programs. The Plan is based on six areas that were identified as barriers to people with a disability accessing government departments, including: employment and careers, staff awareness, information and communication, consultation and decision making, programs and services, and physical access.

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DISCLOSURE INDEX The Annual Report of the Department of Innovation, Industry and Regional Development is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements. MINISTERIAL DIRECTIONS Legislation

Requirement

Page Reference

Report of operations Charter and purpose FRD 22A

Manner of establishment and the relevant Ministers

6–9

FRD 22A

Objectives, functions, powers and duties

6–9

FRD 22A

Nature and range of services provided

6–9

Management and structure FRD 22A

Organisational structure

10 – 11

Financial and other information FRD 22A

Operational and budgetary objectives and performance against objectives

FRD 22A

Employment and conduct principles

187

FRD 22A

Occupational health and safety

188

FRD 29

Workforce data disclosures

121

FRD 15A

Executive officer disclosures

121

FRD 22A

Summary of the financial results for year

133

FRD 22A

Significant changes in financial position during the year

133

FRD 22A

Major changes or factors affecting performance

FRD 22A

Subsequent events

n/a

FRD 22A

Application and operation of Freedom of Information Act 1982

124

FRD 22A

Compliance with building and maintenance provisions of Building Act 1993

132

FRD 22A

Statement on National Competition Policy

192

FRD 22A

Application and operation of the Whistleblowers Protection Act 2001

192

FRD 25

Victorian Industry Participation Policy disclosures

126

FRD 22A

Details of consultancies over $100,000

123

FRD 22A

Details of consultancies under $100,000

123

FRD 22A

Disclosure of major contracts

132

FRD 22A

Reporting of office-based environmental impacts

128

FRD 22A

Statement of availability of other information

203

FRD 22A

Disclosure index

189

FRD 22A

Budget portfolio outcomes

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

212 – 220

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DISCLOSURE INDEX (continued) MINISTERIAL DIRECTIONS Legislation

Requirement

Page Reference

Financial statements Financial statements required under Part 7 of the FMA SD 4.2(f)

Model financial report

SD 4.2(b)

Operating statement

SD 4.2(b)

Balance sheet

SD 4.2(a)

Statement of changes in equity

SD 4.2(b)

Cash flow statement

SD 4.2(c)

Compliance with Australian accounting standards and other authoritative pronouncements

SD 4.2(c)

Compliance with Ministerial Directions

SD 4.2(d)

Rounding of amounts

SD 4.2(c)

Accountable officerâ&#x20AC;&#x2122;s declaration

116

Other disclosures in notes to the financial statements FRD 13

Disclosure of parliamentary appropriations

109

FRD 9A

Departmental disclosure of administered assets and liabilities

107

FRD 11

Disclosure of ex-gratia payments

110

FRD 21A

Responsible person and executive officer disclosures

114

LEGISLATION Freedom of Information Act 1982

124

Building Act 1983

132

Whistleblowers Protection Act 2001

192

Victorian Industry Participation Policy Act 2003

126

Financial Management Act 1994

Audit Act 1994

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MAJOR ACTS OF PARLIAMENT ADMINISTERED The following Acts are administered by DIIRD as of 30 June 2007: Innovation

Skills, Education Services and Employment

• Baker Medical Research Institute Act 1980

• Australian Catholic University (Victoria) Act 1991

• Howard Florey Institute of Experimental Physiology and Medicine Act 1971

• Baxter Technical School Land Act 1982

• Prince Henry’s Institute of Medical Research Act 1988

• Deakin University (Warrnambool) Act 1990

• Deakin University (Victoria College) Act 1991

Industry and State Development

• Deakin University Act 1974

• Agent-General’s Act 1994

• La Trobe University(Bendigo and Woodonga) Act 1990

• Aerodrome Landing Fees Act 2003

• La Trobe University Act 1964

• Albury-Wodonga Agreement (Repeal) Act 2003

• Marcus Oldham College Act 1995

• Australian Airlines (Intrastate Services) Act 1990 • Bread Industry Act 1959

• Melbourne College of Advanced Education (Amalgamation) Act 1988

• City of Greater Geelong Act 1993 (Part 5)

• Melbourne College of Divinity Act 1910

• Civil Aviation (Carrier’s Liability) Act 1961

• Melbourne University (Hawthorn) Act 1991

• Victorian Industry Participation Policy Act 2003

• Melbourne University (VCAH) Act 1992

• Film Act 2001 (Part 2)(Parts 1,4,5 and 6 jointly with Arts)

• Melbourne University (VCAH) Act 1997 • Melbourne University Act 1958

Regional and Rural Development • Regional Development Victoria Act 2002

• Melbourne University (Victorian College of the Arts) Act 2006

• Regional Infrastructure Development Fund Act 1999

• Monash University Act 1958

• Latrobe Regional Commission (Repeal) Act 1995

• Monash University (Chisholm and Gippsland) Act 1990

Small Business • Anzac Day Act 1958 (Except Sections 3,4 and 4A)

• Monash University (Pharmacy College) Act 1992

• Public Holidays Act 1993

• Royal Melbourne Institute of Technology Act 1992

• Retail Leases Act 2003

• Swinburne University of Technology Act 1992

• Shop Trading Reform Act 1996

• Tertiary Education Act 1993

• Summer Time Act 1972

• University of Ballarat Act 1993

• Small Business Commissioner Act 2003

• Victoria University of Technology Act 1990 • Victorian College of Agriculture and Horticulture Act 1982

Industrial Relations • BLF (De-recognition) Act 1985

• Victorian College of the Arts Act 1981

• Commonwealth Powers (Industrial Relations) Act 1996

• Victorian Institute of Teaching Act 2001 (Part 2 jointly with Education)

• Community Services Act 1970 • Construction Industry Long Service Leave Act 1997

• Vocational Education and Training (Amendment) Act 1994

• Child Employment Act 2003

• Vocational Education and Training Act 1990

• Federal Awards (Uniform Systems) Act 2003

• Adult Community and Further Education Act 1991

• Labour and Industry Act 1958

• Education Act (Part thereof. Jointly with Education)

• Long Service Leave Act 1992

• Teaching Services Act 1981 (Part thereof. Jointly with Education)

• Long Service Leave (Amendment) Act 2005 • Outworkers (Improved Protection) Act 2003

Tourism

• Outworkers (Improved Protection) (Amendment) Act 2005

• Australian Grands Prix Act 1994

• Owner Drivers and Forestry Contractors Act 2005

• Emerald Tourist Railway 1977

• Trade Unions Act 1958

• Melbourne Convention and Exhibition Trust Act 1996

• Workplace Rights Advocate Act 2005

• Port Bellarine Tourist Resort Act 1981

• Chinatown Historic Precinct Act 1984

• Tourism Victoria Act 1992 Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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PROGRESS IN IMPLEMENTING NATIONAL COMPETITION POLICY The Department continues to comply with the requirements of the National Competition Policy.

DISCLOSURES MADE UNDER THE WHISTLEBLOWERS PROTECTION ACT 2001 Disclosures made to DIIRD during the year

Disclosures referred during the year by DIIRD to the Ombudsman for determination as to whether they are public interest disclosures

Disclosed matters referred to DIIRD during the year by the Ombudsman

Disclosed matters referred during the year by DIIRD to the Ombudsman to investigate

Investigations of disclosed matters taken over by the Ombudsman from DIIRD during the year

Requests made under section 74 during the year to the Ombudsman to investigate disclosed matters

Disclosed matters that DIIRD has declined to investigate during the year

Any recommendations of the Ombudsman under this Act that relate to DIIRD

WHISTLEBLOWERS PROTECTION ACT 2001 1. Statement of support to Whistleblowers The Department is committed to the aims and objectives of the Whistleblowers Protection Act 2001 (the Act). It does not tolerate improper conduct by its employees, officers or members, or the taking of reprisals against those who come forward to disclose such conduct. The Department recognises the value of transparency and accountability in its administrative and management practices, and supports the disclosure of 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 Act provides protection to whistleblowers who make disclosures in accordance with the Act, and establishes a system for the matters disclosed to be investigated and for rectifying action to be taken. 4. Who is subject to the Act? A whistleblower may make a disclosure about improper conduct by public bodies and public officers. The Act defines public bodies and public officers broadly. Public bodies include: • all government departments and administrative offices • statutory authorities

The Department will take all reasonable steps to protect people who make such disclosures from any reprisal for making the disclosure. It will also afford natural justice to the person who is the subject of the disclosure.

• municipal councils

2. Purpose of these procedures These procedures establish a system for reporting disclosures of improper conduct or detrimental action by the Department or its employees. The system enables such disclosures to be made to the Protected Disclosure Coordinator or to the Protected Disclosure Officer. Disclosures may be made by employees or by members of the public.

• universities

3. Objects of the Act The main objective of the Whistleblowers Protection Act 2001 is to encourage and facilitate the making of disclosures of improper conduct or detrimental action by public officers and public bodies.

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

• government appointed boards and committees • government owned companies • TAFE colleges • public hospitals • state funded residential care services • health services contractors • correctional services contractors.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 4. Who is subject to the Act? (Continued) Public bodies excluded from the Act are courts, boards, tribunals, commissions and other bodies presided over by a judge, magistrate or legal practitioner appointed by virtue of a statutory requirement. Public officers include:

Corrupt conduct Corrupt conduct means: • conduct of any person (whether or not a public official) that adversely affects the honest performance of a public officer or public body’s functions

• members of parliament

• a public officer functions dishonestly or with inappropriate partiality

• councillors • council employees

• conduct of a public officer, former public officer or a public body that amounts to a breach of public trust

• public servants

• conduct by a public officer, former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their official functions

• university employees • police officers • protective services officers

• a conspiracy or attempt to engage in the above conduct.

• administrative staff of the Chief Commissioner of Police • teachers • officer holders appointed by Governor in Council or a Minister. The public officers excluded from the Act are members of the judiciary, the Director of Public Prosecutions, Auditor-General, Ombudsman, Electoral Commissioner, and parliamentary and judicial staff. 5. Definitions of key terms Three key concepts in the reporting system are improper conduct, corrupt conduct and detrimental action. These are defined below.

Examples A public officer takes a bribe or receives a payment other than his or her wages or salary in exchange for the discharge of a public duty. A public officer favours unmeritorious applications for jobs or permits by friends and relatives. A public officer sells confidential information. Detrimental action The Act makes it an offence for a person to take detrimental action against a person in reprisal for a protected disclosure. Detrimental action includes:

Improper conduct A disclosure may be made about improper conduct by a public body or public official. Improper conduct means conduct that is corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to the environment. The conduct must be serious enough to constitute, if proved, a criminal offence or reasonable grounds for dismissal. Examples To avoid closure of a town’s only industry, an environmental health officer ignores or conceals evidence of illegal dumping of waste. An agricultural officer delays or declines imposing quarantine to allow a financially distressed farmer to sell diseased stock. A building inspector tolerates poor practices and structural defects in the work of a leading local builder.

• action causing injury, loss or damage • intimidation or harassment • discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action. Examples A public body refuses a deserved promotion of a person who makes a disclosure. A public body demotes, transfers, isolates in the workplace or changes the duties of a whistleblower due to the making of a disclosure. A person threatens, abuses or carries out other forms of harassment directly or indirectly against the whistleblower, his or her family or friends. A public body discriminates against the whistleblower or his or her family and associates in subsequent applications for jobs, permits or tenders.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 6. The Department’s internal reporting system Contact persons for the Department Disclosures of improper conduct or detrimental action by the Department or its employees may be made to the following persons:

7. The Ombudsman The Ombudsman has a central role in handling disclosures of improper conduct made under the Act. The role of the Ombudsman involves: • preparing and publishing guidelines to assist public bodies in interpreting and complying with the Act

The Department’s Protected Disclosure Coordinator is:

• reviewing written procedures established by public bodies and making recommendations in relation to those procedures

Vivienne Stanford Director, Corporate Governance and Administration Department of Innovation, Industry and Regional Development Level 31, 121 Exhibition Street Melbourne Vic 3000 Tel: 03 9651 9862 Email: vivienne.stanford@diird.vic.gov.au

• determining whether a disclosure warrants investigation • investigating disclosures • monitoring investigations where they have been referred to public bodies

The Department’s Protected Disclosure Officers are:

• monitoring the action taken by public bodies where the findings of an investigation reveal that improper conduct has occurred

Brian Corney Director, Private Sector Industrial Relations Victoria Level 33, 121 Exhibition Street Melbourne Vic 3000 Tel: 03 9651 9785 Email: brian.corney@diird.vic.gov.au Faye Burton Executive Director, Office of Science and Technology Level 35, 121 Exhibition Street Melbourne Vic 3000 Tel: 03 9651 8035 Email: faye.burton@diird.vic.gov.au

• reporting to parliament where public bodies fail to implement recommendations made by the Ombudsman at the conclusion of an investigation • collating and publishing statistics about disclosures handled by the Ombudsman • educating and training public bodies. To make a complaint or to provide information directly to the Ombudsman contact:

You can also make your complaint or provide information directly to the Ombudsman.

The Ombudsman Level 22, 459 Collins Street Melbourne Vic 3000 (DX 210174) Tel: 03 9613 6222 Toll Free: 1800 806 314 Email: ombudvic@ombudsman.vic.gov.au Internet: www.ombudsman.vic.gov.au Ombudsman: Mr George Brouwer Tel: 03 9613 6202 Disclosures can be made in writing or made orally. You may also provide information anonymously.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 7. The Ombudsman (Continued) Other public bodies If your complaint relates to persons other than employees of the Department, you should make your complaint to the Ombudsman or to the public body concerned: Person who is the subject of the disclosure

Person/body to whom the disclosure must be made

Employee of a public body

That public body or the Ombudsman

Member of Parliament (Legislative Assembly)

Speaker of the Legislative Assembly

Member of Parliament (Legislative Council)

President of the Legislative Council

Councillor

The Ombudsman

Chief Commissioner of Police

The Ombudsman or Deputy Ombudsman

Member of the police force

The Ombudsman, Deputy Ombudsman or Chief Commissioner of Police

and maintain the confidentiality of a person they know or suspect to have made a disclosure. Protected Disclosure Officer The Department’s Protected Disclosure Officer will: • be a contact point for general advice about the operation of the Act • make arrangements for a disclosure to be made privately and, if necessary, away from the workplace • receive any disclosure made orally or in writing (from internal and external whistleblowers) • commit to writing any disclosure made orally • impartially assess the allegation and determine whether it is a disclosure made in accordance with Part 2 of the Act (that is, ‘a protected disclosure’) • establish and manage a confidential filing system • collate and publish statistics on disclosures made

8. Roles and responsibilities The Department: The role of the Department includes:

• take all necessary steps to ensure the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential • forward all disclosures and supporting evidence to the Protected Disclosure Coordinator. Protected Disclosure Coordinator The Protected Disclosure Coordinator will: • receive all disclosures forwarded from the Protected Disclosure Officer

• establishing and publishing written procedures

• receive all phone calls, emails and letters from members of the public or employees seeking to make a disclosure

• receiving and assessing disclosures of improper conduct

• impartially assess each disclosure to determine whether it is a public interest disclosure

• referring disclosures to the Ombudsman

• refer all public interest disclosures to the Ombudsman

• carrying out investigations referred by the Ombudsman

• be responsible for carrying out, or appointing an investigator to carry out, an investigation referred to the public body by the Ombudsman

• promoting the policy of the Act to staff members

• taking action in response to findings that improper conduct has occurred • protecting whistleblowers from reprisals • collating and publishing statistics about disclosures received. Employees Employees are encouraged to report known or suspected incidences of improper conduct or detrimental action in accordance with these procedures. All employees of the Department have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure. Furthermore, they should protect

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

• be responsible for overseeing and coordinating an investigation where an investigator has been appointed • appoint a Welfare Manager to support the whistleblower and to protect him or her from any reprisals • advise the whistleblower of the progress of an investigation into the disclosed matter • establish and manage a confidential filing system • take all necessary steps to ensure the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential • liaise with the Chief Executive Officer of the public body.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 8. Roles and responsibilities (Continued) Investigator The investigator will be responsible for carrying out an internal investigation into a disclosure where the Ombudsman has referred a matter to the public body. The Protected Disclosure Coordinator will ensure that a consultant is engaged for this purpose. Welfare Manager The Welfare Manager is responsible for looking after the general welfare of the whistleblower. The Welfare Manager will: • examine the immediate welfare and protection needs of a whistleblower and seek to foster a supportive work environment • advise the whistleblower of the legislative and administrative protections available to him or her • listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making disclosure • keep a contemporaneous record of all aspects of the case management of the whistleblower including all contact and follow up action

The Department will ensure all files, whether paper or electronic, are kept in a secure place and can only be accessed by the Protected Disclosure Coordinator, Protected Disclosure Officer, the investigator or Welfare Manager (in relation to welfare matters). All printed material will be kept in files that are clearly marked as a Whistleblower Protection Act matter, and warn of the criminal penalties that apply to any unauthorised divulging of information concerning a protected disclosure. All electronic files will be given password protection. Backup files will be kept on floppy disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower files. The Department will not email documents relevant to a whistleblower matter and will ensure all phone calls and meetings are conducted in private. 10. Collating and publishing statistics The Protected Disclosure Officer will establish a secure register to record the information required to be published in the annual report, and to generally keep account of the status of whistleblower disclosures. The register will not record any information that may identify the whistleblower. The register will contain the following information:

• ensure the expectations of the whistleblower are realistic. 9. Confidentiality The Department will take all reasonable steps to protect the identity of the whistleblower. The Act requires any person who receives information due to the handling or investigation of a protected disclosure, not to disclose that information except in certain limited circumstances. Disclosure of information in breach of section 22 constitutes an offence punishable by a maximum fine of 60 penalty units ((for the period 1 July 2007 to 30 June 2008 one penalty unit is $110.12 (section 6, Monetary Units Act 2004, Victorian Government Gazette 6 April 2006)) or six months imprisonment or both. The circumstances in which a person may disclose information about a protected disclosure include: • where exercising the functions of the public body under the Act

• the number and types of disclosures made to public bodies during the year • the number of disclosures referred to the Ombudsman for determination as to whether they are public interest disclosures • the number and types of disclosed matters referred to the public body by the Ombudsman for investigation • the number and types of disclosures referred by the public body to the Ombudsman for investigation • the number and types of investigations taken over from the public body by the Ombudsman • the number of requests made by a whistleblower to the Ombudsman to take over an investigation by the public body • the number and types of disclosed matters that the public body has declined to investigate

• when making a report or recommendation under the Act

• the number and types of disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation

• when publishing statistics in the annual report of a public body

• any recommendations made by the Ombudsman that relate to the public body.

• in criminal proceedings for certain offences in the Act. However, the Act prohibits the inclusion of particulars in any report or recommendation that is likely to lead to the identification of either the whistleblower or the person who is the subject of the disclosure.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 11. Receiving and assessing disclosures Has the disclosure been made in accordance with Part 2 of the Act? Where a disclosure has been received the Protected Disclosure Officer will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure. Has the disclosure been made to the appropriate person? For the disclosure to be responded to by the Department, it must concern an employee of the Department. If the disclosure concerns an employee of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed. If the disclosure has been made anonymously, it should be referred to the Ombudsman. Does the disclosure contain the essential elements of a protected disclosure? A protected disclosure must satisfy the following criteria:

• has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as a public officer • has taken, is taking or proposes to take detrimental action in reprisal for the making of the protected disclosure. Where the Protected Disclosure Coordinator concludes that the disclosure amounts to a public interest disclosure, he or she will: • notify the person who made the disclosure of that conclusion • refer the disclosure to the Ombudsman for formal determination as to whether it is indeed a public interest disclosure. Where the Protected Disclosure Coordinator concludes that the disclosure is not a public interest disclosure, he or she will: • notify the person who made the disclosure of that conclusion

• Did a natural person (that is, an individual rather than a corporation) make the disclosure?

• advise that person that he or she may request the public body to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification.

• Does the disclosure relate to conduct of a public body or public officer acting in their official capacity? • Is the alleged conduct either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure? • Does the person making a disclosure have reasonable grounds for believing the alleged conduct has occurred? Where a disclosure is assessed to be a protected disclosure, it is referred to the Protected Disclosure Coordinator. The Protected Disclosure Coordinator will determine whether the disclosure is a public interest disclosure. Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The Protected Disclosure Officer will decide how the matter should be responded to in consultation with the Protected Disclosure Coordinator.

In either case, the Protected Disclosure Coordinator will make the notification and the referral within 14 days of the conclusion being reached by the public body. Notification to the whistleblower is not necessary where the disclosure has been made anonymously. 12. Investigations Introduction Where the Ombudsman refers a protected disclosure to the Department for investigation, the Protected Disclosure Coordinator will appoint an investigator to carry out the investigation. The objectives of an investigation will be to:

Is the disclosure a public interest disclosure? Where the Protected Disclosure Coordinator has received a protected disclosure, the Protected Disclosure Coordinator will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure. In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the Protected Disclosure Coordinator will consider whether the disclosure shows, or tends to show, that the public officer to whom the disclosure relates:

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

• collate information relating to the allegation as quickly as possible. This may involve taking steps to protect or preserve documents, materials and equipment. • consider the information collected and to draw conclusions objectively and impartially • maintain procedural fairness in the treatment of witnesses and the person who is the subject of the disclosure • make recommendations arising from the conclusions drawn concerning remedial or other appropriate action.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 12. Investigations (Continued) Terms of reference Before commencing an investigation, the Protected Disclosure Coordinator will draw up terms of reference and obtain authorisation for those terms from the Secretary. The terms of reference will:

as soon as the disclosure is received or the investigation has commenced).

• describe the resources available to the investigator

• If the investigator is contemplating making a report adverse to the interests of any person, that person should be given the opportunity to put forward further material that may influence the outcome of the report and that person’s defence should be fairly set out in the report.

• require the investigator to make regular reports to the Protected Disclosure Coordinator

• All relevant parties to a matter should be heard and all submissions should be considered.

• set a date for the completion of the investigation report.

• A decision should not be made until all reasonable inquiries have been made.

The Protected Disclosure Coordinator may approve, if reasonable, an extension of time requested by the investigator and is required to keep the Ombudsman informed of general progress.

• The investigator or any decision maker should not have a personal or direct interest in the matter being investigated. • All proceedings must be carried out fairly and without bias. Care should be taken to exclude perceived bias from the process.

Investigation plan The investigator will prepare an investigation plan for approval by the Protected Disclosure Coordinator. The plan will list the issues to be substantiated and describe the avenue of inquiry. It will address the following issues:

• The investigator must be impartial in assessing the credibility of the whistleblowers and any witnesses. Where appropriate, conclusions as to credibility should be included in the investigation report.

• What is being alleged? • What are the possible findings or offences? • What are the facts in issue? • How is the inquiry to be conducted? • What resources are required? At the commencement of the investigation, the whistleblower should be: • notified by the investigator that he or she has been appointed to conduct the investigation • asked to clarify any matters • asked to provide any additional material he or she might have. The investigator will be sensitive to the whistleblower’s possible fear of reprisals and will be aware of the statutory protections provided to the whistleblower. Natural justice The principles of natural justice will be followed in any investigation of a public interest disclosure. The principles of natural justice concern procedural fairness and ensure a fair decision is reached by an objective decision maker. Maintaining procedural fairness protects the rights of individuals and enhances public confidence in the process. The Department will have regard to the following issues in ensuring procedural fairness: • The person who is the subject of the disclosure is entitled to know the allegations made against him or her and must be given the right to respond. (This does not mean the person must be advised of the allegation

Conduct of the investigation The investigator will make contemporaneous notes of all discussions and phone calls, and all interviews with witnesses will be taped. All information gathered in an investigation will be stored securely. Interviews will be conducted in private and the investigator will take all reasonable steps to protect the identity of the whistleblower. Where disclosure of the identity of the whistleblower cannot be avoided, due to the nature of the allegations, the investigator will warn the whistleblower and his or her Welfare Manager of this probability. It is in the discretion of the investigator to allow any witness to have legal or other representation or support during an interview. If a witness has a special need for legal representation or support, permission should be granted. Referral of an investigation to the Ombudsman The Protected Disclosure Coordinator will make a decision regarding the referral of an investigation to the Ombudsman where, on the advice of the investigator: • the investigation is being obstructed by, for example, the non-cooperation of key witnesses • the investigation has revealed conduct that may constitute a criminal offence. Reporting requirements The Protected Disclosure Coordinator will ensure the whistleblower is kept regularly informed concerning the handling of a protected disclosure and an investigation.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 12. Investigations (Continued) Reporting requirements (Continued) The Protected Disclosure Coordinator will report to the Ombudsman about the progress of an investigation.

The Protected Disclosure Coordinator will provide a written report to the Premier, the Ombudsman and the whistleblower setting out the findings of the investigation and any remedial steps taken.

Where the Ombudsman or the whistleblower requests information about the progress of an investigation, that information will be provided within 28 days of the date of the request.

Where the investigation concludes that the disclosed conduct did not occur, the Protected Disclosure Coordinator will report these findings to the Ombudsman and to the whistleblower.

13. Action taken after an investigation Investigator’s final report At the conclusion of the investigation, the investigator will submit a written report of his or her findings. The report will contain: • the allegation/s • an account of all relevant information received and, if the investigator has rejected evidence as being unreliable, the reasons for this opinion being formed • the conclusions reached and the basis for them • any recommendations arising from the conclusions. Where the investigator has found that the conduct disclosed by the whistleblower has occurred, recommendations made by the investigator will include: • the steps that need to be taken by the Department to prevent the conduct from continuing or occurring in the future • any action that should be taken by the Department to remedy any harm or loss arising from the conduct. This action may include bringing disciplinary proceedings against the person responsible for the conduct, and referring the matter to an appropriate authority for further consideration.

14. Managing the welfare of the whistleblower Commitment to protecting whistleblowers The Department is committed to the protection of whistleblowers against detrimental action taken in reprisal for the making of protected disclosures. The Protected Disclosure Coordinator is responsible for ensuring whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made. The Protected Disclosure Coordinator will appoint a Welfare Manager to all whistleblowers who have made a protected disclosure. The duties of the Welfare Manager are set out in section 6 above. All employees will be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units or two years imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation. Detrimental action includes: • causing injury, loss or damage • intimidation or harassment • discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business (including the taking of disciplinary action).

The report will be accompanied by: • the transcript or other record of any oral evidence taken, including tape recordings • all documents, statements or other exhibits received by the officer and accepted as evidence during the course of the investigation. Where the investigator’s report is to include an adverse comment against any person, that person will be given the opportunity to respond and his or her defence will be fairly included in the report. The report will not disclose particulars likely to lead to the identification of the whistleblower. Action to be taken If the Protected Disclosure Coordinator is satisfied that the investigation has found that the disclosed conduct has occurred, he or she will recommend to the Secretary the action that must be taken to prevent the conduct from continuing or occurring in the future. The Protected Disclosure Coordinator may also recommend that action be taken to remedy any harm or loss arising from the conduct.

Keeping the whistleblower informed The Protected Disclosure Coordinator will ensure the whistleblower is kept informed of action taken in relation to his or her disclosure, and the time frames that apply. The whistleblower will be informed of the objectives of an investigation, the findings of an investigation, and the steps taken by the Department to address any improper conduct that has been found to have occurred. The whistleblower will be given reasons for decisions made by the Department in relation to a protected disclosure. All communication with the whistleblower will be in plain English.

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 14. Managing the welfare of the whistleblower (Continued) Occurrence of detrimental action If a whistleblower reports an incident of harassment, discrimination or adverse treatment that would amount to detrimental action taken in reprisal for the making of the disclosure, the Welfare Manager will: • record details of the incident • advise the whistleblower of his or her rights under the Act • advise the Protected Disclosure Coordinator or the Secretary of the detrimental action. The taking of detrimental action in reprisal for the making of a disclosure can be an offence against the Act, as well as grounds for making a further disclosure. Where such detrimental action is reported, the Protected Disclosure Coordinator will assess the report as a new disclosure under the Act. Where the Protected Disclosure Coordinator is satisfied that the disclosure is a public interest disclosure, he or she will refer it to the Ombudsman. If the Ombudsman subsequently determines the matter to be a public interest disclosure, the Ombudsman may investigate the matter or refer it to another body for investigation as outlined in the Act. Whistleblowers implicated in improper conduct Where a person who makes a disclosure is implicated in misconduct, the Department will handle the disclosure and protect the whistleblower from reprisals in accordance with the Act, the Ombudsman’s guidelines and these procedures. The Department acknowledges that the act of whistleblowing should not shield whistleblowers from the reasonable consequences flowing from any involvement in improper conduct. Section 17 of the Act specifically provides that a person’s liability for his or her own conduct is not affected by the person’s disclosure of that conduct under the Act. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action. The Secretary will make the final decision on the advice of the Protected Disclosure Coordinator as to whether disciplinary or other action will be taken against a whistleblower. Where disciplinary or other action relates to conduct that is the subject of the whistleblower’s disclosure, the disciplinary or other action will only be taken after the disclosed matter has been appropriately dealt with. In all cases where disciplinary or other action is being contemplated, the Secretary must be satisfied that it has been clearly demonstrated that: • the intention to proceed with disciplinary action is not causally connected to the making of the disclosure (as opposed to the content of the disclosure or other available information)

justify action against any non-whistleblower in the same circumstances • there are good and sufficient grounds that justify exercising any discretion to institute disciplinary or other action. The Protected Disclosure Coordinator will thoroughly document the process including recording the reasons why the disciplinary or other action is being taken, and the reasons why the action is not in retribution for the making of the disclosure. The Protected Disclosure Coordinator will clearly advise the whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken into account. 15. Management of person against whom a disclosure has been made The Department recognises that employees against whom disclosures are made must also be supported during the handling and investigation of disclosures. The Department will take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of the person who is the subject of the disclosure will remain confidential. The Protected Disclosure Coordinator will ensure the person who is the subject of any disclosure investigated by or on behalf of a public body: • is informed as to the substance of the allegations • is given the opportunity to answer the allegations before a final decision is made • is informed as to the substance of any adverse comment that may be included in any report arising from the investigation • has his or her defence set out fairly in any report. Where a disclosure has been investigated, and the person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the Protected Disclosure Coordinator will formally advise the person of the outcome of the investigation. The Department will give its full support to a person where the allegations are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the Secretary of the Department will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.

• there are good and sufficient grounds that would fully

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WHISTLEBLOWERS PROTECTION ACT 2001 (continued) 16. Criminal offences The Department will ensure officers appointed to handle protected disclosures and all other employees are aware of the following offences created by the Act: 1. It is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units or two years imprisonment or both. 2. It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units or six months imprisonment or both. 3. It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units or two years imprisonment or both. 4. It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units or two years imprisonment or both. 17. Review These procedures will be reviewed annually to ensure they meet the objectives of the Act and accord with the Ombudsmanâ&#x20AC;&#x2122;s guidelines.

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201

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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Appendices to Annual Report 2006 – 07 Department of Innovation Industry and Regional Development

WHISTLEBLOWERS PROTECTION ACT 2001 (continued)

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SUMMARY OF ADDITIONAL INFORMATION AVAILABLE ON REQUEST The following information is available on request: • a statement that declarations of private interests have been duly completed by all relevant officers • details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary • details of DIIRD publications • details of changes in prices, fees, charges, rates and levies • details of any major external reviews carried out on DIIRD • details of major research and development activities • details of overseas visits undertaken • details of major promotional, public relations and marketing activities undertaken by DIIRD • details of assessments and improvement measures undertaken to improve the occupational health and safety of employees • general statement on industrial relations and details of industrial accidents and disputes • details of major committees sponsored by the DIIRD. This information is available from: Director Governance and Services Department of Innovation Industry and Regional Development Level 31, 121 Exhibition Street Melbourne Victoria 3000 Tel: 03 9651 9108

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

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BUDGET PORTFOLIO OUTCOMES The Budget Portfolio Outcomes provide a comparison between the actual financial statements of all General Government entities within the portfolio and the forecasted information published in the Budget Papers. The Budget Portfolio Outcomes are comprised of the operating statement, balance sheet, statement of changes in equity and statement of cashflows. The Budget Portfolio Outcomes have been prepared on a consolidated basis and include all General Government entities within the Portfolio. Financial transactions and balances are classified into either Controlled or Administered, in accordance with Australian Accounting Standard 29 Financial Reporting by Governments, and agreed with the Treasurer in the context of the Budget Papers. 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 as they include the consolidated financial information of the following entities: • The Department of Innovation, Industry and Regional Development • Regional Development Victoria • Workplace Rights Advocate • The Office of the Small Business Commissioner • Victoria Trade and Investment Office Pty Ltd • Tourism Victoria. In addition, as a result of the machinery of government changes effective 1 January 2007, the following entities have been consolidated for the six month period to 30 June 2007: • Film Victoria • Victorian Learning and Skills Commission • TAFE sector organisations.

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BUDGET PORTFOLIO OUTCOMES (continued) Operating statement for the year ended 30 June 2007

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

Output appropriations

(1)

971,717

432,049

914,714

539,668

124.9

Sales of goods and services

(2)

143,842

1,500

230,773

142,342

9,489.5

Commonwealth grants

(2)

148,580

145,586

148,580

100.0

Other revenue from other parties and other income

(2)

68,714

23,300

68,714

100.0

1,332,853

433,549

1,314,290

899,304

207.4

(1),(3)

(406,138)

(75,278)

(499,210)

(330,860)

663.2

Depreciation and amortisation

(2)

(39,792)

(5,119)

(41,865)

(34,673)

677.3

Grants and other payments

(1)

(409,204)

(233,588)

(306,028)

(175,616)

75.2

Capital asset charge

(3)

(84,783)

(4,088)

(84,783)

(80,695)

1,973.9

(1),(2)

(232,905)

(115,526)

(367,443)

(117,379)

101.6

(2)

(1,131)

(17)

(1,131)

(100.0)

(128)

(244)

(128)

(100.0)

(1,174,081)

(433,549)

(1,299,590)

(740,482)

(170.8)

158,772

14,700

158,772

100

Variation (b) %

Income

Expenses Employee entitlements

Supplies and services Other expenses from ordinary activities Borrowing costs

Net result for the reporting period

(a) 2006-07 budget adjusted for machinery of government changes for the period 1 January 2007 to 30 June 2007. (b) Variation between 2006-07 actual and 2006-07 budget. Explanations for major variations between the 2006-07 actual and 2006-07 budget are as follows: (1) Actual output appropriation revenue is higher than budget mainly due to additional revenue received by the Department: • as a result of the machinery of government changes for the period 1 January 2007 to 30 June 2007. • under section 35 of the Financial Management Act 1994 and via advances received from the Treasurer (refer note 23 in the Department’s financial statements). This increase in revenue is also reflected in a corresponding increase in grants and other payments and supplies and services expenses during the reporting period. (2) Higher actual total non-appropriation revenue as compared to budget is mainly due to the recognition of grants received from the Commonwealth Government by the TAFE institutions. Responsibility for the TAFE institutions transferred from the Department as part of the machinery of government changes effective 1 January 2007. The inclusion of the TAFE sector transactions for the period 1 January 2007 to 30 June 2007 has also resulted in higher actual employee entitlements, depreciation and amortisation and supplies and services expenses as compared to budget. Note also that the actual sales of goods and services and other revenue from other parties, the employee entitlements and the supplies and services balances are actually lower than the adjusted budget due to the inclusion in the adjusted budget of revenue and costs associated with ACFE and AMES which transferred to the Department for Victorian Communities as part of these machinery of government changes. (3) Variation mainly represents additional cost of capital levied on the Department for assets held by the TAFE institutions (refer note 1 (i) in the Department’s Financial Statements).

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BUDGET PORTFOLIO OUTCOMES (continued) Balance sheet as at 30 June 2007

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

Cash assets

(1)

281,200

138,468

334,176

142,732

103.1

Other financial assets

(2)

111,615

107,157

111,615

100.0

Receivables

(3)

371,411

49,628

101,973

321,783

648.4

Inventories

(1)

10,047

10,402

10,047

100.0

Prepayments

(1)

10,192

9,011

10,114

12,966.7

491

182

491

100.0

784,956

188,174

562,901

596,782

317.1

111

10,171

(53)

(47.7)

785,014

188,285

573,072

596,729

316.9

112

100.0

58,828

48,904

58,763

90,404.6

15,000

20,000

(5,000)

(25.0)

Variation (b) %

Current assets

Other assets

Non-current assets classified as held for sale Total current assets Non-current assets Receivables Other financial assets

(2)

Investments accounted for using the equity method Property, plant and equipment

(1)

2,243,720

186,827

2,241,306

2,056,893

1,101.0

Intangible assets

(1)

3,047

2,760

3,047

100.0

129

100.0

Total non-current assets

2,320,836

206,892

2,312,999

2,113,944

1,021.7

Total assets

3,105,850

395,177

2,886,071

2,710,673

685.9

166,940

32,862

100,149

134,078

408.0

1,763

1,041

1,835

722

69.4

Other

Current liabilities Payables

(4)

Interest bearing liabilities Provisions (c)

(1)

131,483

16,499

57,460

114,984

696.9

Other

(4)

54,697

2,658

36,750

52,039

1,957.8

354,883

53,060

196,194

301,823

568.8

Total current liabilities

(Chart continues on page 99)

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BUDGET PORTFOLIO OUTCOMES (continued) Balance sheet as at 30 June 2007 (Continued from page 98)

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

3,586

1,204

7,981

2,382

197.8

Variation (b) %

Non-current liabilities Interest bearing liabilities Provisions (c)

(1)

25,309

1,628

105,754

23,681

1,454.6

Other

(4)

40,022

100.0

851

633

851

100.0

69,768

2,832

104,390

66,936

2,363.6

424,651

55,892

310,584

368,759

659.8

2,681,199

339,285

2,575,487

2,341,914

690.2

Amounts owing to other departments Total non-current liabilities Total liabilities Net Assets

Equity Contributed capital

(1)

702,112

210,543

1,437,621

491,569

233.8

Reserves

(1)

979,177

4,083

996,969

975,094

23,881.8

Accumulated surplus

(5)

999,910

124,659

140,897

875,251

702.1

2,681,199

339,285

2,575,487

2,341,914

690.2

Total Equity

(a) 2006-07 budget adjusted for machinery of government changes for the period 1 January 2007 to 30 June 2007. (b) Variation between 2006-07 actual and 2006-07 budget. (c) Includes employee costs and superannuation Explanations for major variations between the 2006-07 actual and 2006-07 budget are as follows: (1) Higher actual cash assets, inventories, prepayments, property plant and equipment, intangible assets, and provisions due to the inclusion of the TAFE institutions balances. (2)

Higher other financial assets balance due to new investments held by the Department in accordance with the Australian Synchrotron deed of agreement and the inclusion of investments balances relating to other investments relating to Film Victoria and the TAFE institutions.

(3)

Higher actual receivables balances due to: • Higher trust account balances including a newly established Australian Synchrotron Trust Fund and the lower than anticipated spending from the Regional Infrastructure Development trust fund. • The inclusion of amounts owed to the Victorian Learning and Skills Commission by the Department of Education. • Timing differences between revenue owed from Government and the payment of these amounts to external parties as reflected in a higher payables balance.

(4) In relation to the payables and other liabilities balances, as well as the addition of the TAFE institution balances: • The variation in payables balance is also due to a loan issued to the Department to be repaid to the Consolidated Fund. • The recognition of unearned grant income from the Commonwealth Government in relation to the Australian Synchrotron Project by the Department has resulted in an increase in current and non-current other liabilities (refer note 1 (h) in the Department’s Financial Statements). (5) Higher actual accumulated funds balance due to higher than expected operating result (refer operating statement). The variations between the 2006-07 actual and 2006-07 adjusted budget are also the result of reclassifications between asset categories and current and non-current provisions during the reporting period.

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BUDGET PORTFOLIO OUTCOMES (continued) Statement of cash flows for the year ended 30 June 2007

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

Variation (b) %

Cash flows from operating activities Receipts from Government

(1)

955,583

431,976

1,056,987

65,948

15.3

Receipts from other entities

(2)

20,950

1,500

191,640

19,450

1,296.7

(1),(2)

(846,497)

(424,392)

(972,938)

(422,105)

99.5

130,036

9,084

275,689

(336,707)

(3,706)

18,773

6,226

18,773

100.0

(128)

(244)

(128)

(100.0)

Payments for supplies, grants and employees

Interest received Finance costs Capital assets charge

(2)

(84,783)

(4,038)

(84,783)

(80,745)

(1,998.5)

Other receipts

(2)

102,075

41,059

102,075

100.0

165,973

5,046

237,947

(296,732)

(5,880.5)

(1,160,994)

(11,609)

(84,424)

(1,149,385)

9,900.8

21,700

100.0

(170,490)

(5,046)

(160.996)

(165,444)

(3,278.7)

(1,309,784)

(16,655)

(245,420)

(835,470)

(5,016.3)

Net cash inflow (outflow) from operating activities

Cash flows from investing activities Payments for non-financial assets

(2)

Proceeds from sale of non-financial assets (Repayments of) loans by other entities Net cash inflow (outflow) from investing activities

(3)

(Chart continues on page 91)

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BUDGET PORTFOLIO OUTCOMES (continued) Statement of cash flows for the year ended 30 June 2007 (Continued from page 90)

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

(2)

1,283,688

11,609

194,994

1,272,079

10,537.7

2,855

8,187

2,855

100.0

1,286,543

11,609

203,181

1,274.934

10,982.3

Net increase (decrease) in cash held

142,732

195,708

142,732

100.0

Cash at beginning of financial year

138,468

Cash at end of the financial year

281,200

138,468

334,176

142,732

103.1

Variation (b) %

Cash flows from financing activities Net proceeds from capital contribution by State Government Net proceeds of borrowings Net cash inflow (outflow) from financing activities

Increases in cashflows from operating, financing and investing activities mainly due to the inclusion of the TAFE sector balances.

(2)

Variations between budget and actual receipts from Government also due to additional funding received by the Department under section 35 of the Financial Management Act 1994 and via advances received from the Treasurer (refer note 23 in the Department’s financial statements).

(3)

Increase in repayment of loans by other entities balances also due to the issue of a loan to the Department to be repaid to the Consolidated Fund and inclusion of the investment activity undertaken by Film Victoria.

The variation between the 2006-07 actual and 2006-07 adjusted budget payments for non-financial assets and net proceeds from contributed capital by the State Government are mainly the result of reclassifications between categories during the period.

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BUDGET PORTFOLIO OUTCOMES (continued) Statement of cash flows for the year ended 30 June 2007 (Continued)

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

(1)

968,681

981,479

968,681

100.0

Available for sale financial assets

Other

968,681

981,479

968,681

100.0

158,772

100.0

1,127,453

981,479

1,127,453

100.0

Gain/(losses) on revaluation of property, plant and equipment

Net income recognised directly in equity Net result for the period Total recognised income and expenses for the period

(2)

Variation (b) %

Higher actual net result for the period mainly due to lower than anticipated spending from the Regional Infrastructure Development trust fund and the inclusion of TAFE institution operating result.

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BUDGET PORTFOLIO OUTCOMES (continued) Administered items statement for the year ended 30 June 2007

Notes

2006-07 Actual $’000

2006-07 Budget $’000

2006-07 Adjusted Budget (a) $’000

Variation (b) $’000

100.0

165

(165)

(100.0)

Variation (b) %

Administered income Commonwealth grants Fines Fees

(1)

2,150

(2,150)

(100.0)

Other

(1)

6,347

5,250

1,097

20.9

6,412

7,565

(1,153)

(15.2)

(325)

(392)

(585.1)

5,728

7,498

(2,220)

(29.6)

Total administered expenses

5,403

7,565

(2,612)

(34.5)

Income less expenses

1,009

100.0

Cash assets

(74)

(105)

(29.5)

Receivables

45,630

44,591

1,039

2.3

Total administered assets

45,556

44,486

1,070

2.4

(17)

Other

93,220

93,990

93,220

Total administered liabilities

93,203

(47,647)

(48,717)

1,070

2.2

Total administered income Administered expenses Expenses on behalf of the State Payments into the consolidated fund

(1)

Administered assets

Administered liabilities Payables

Net assets

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OUTPUT GROUPS Changes to the Output Structure The Department has made some changes to its output structure in 2007-08, as shown in the table below. 2007-08 Outputs

Reason

2006-07 Outputs

Creative Industries

Machinery of Government

Part function transferred from Department of Premier and Cabinet

ICT Policy and Programs

Machinery of Government

Part function transferred from Department of Infrastructure

Regional Economic Development and Investment

Restructured

Regional Economic and Community Development

Regional Promotion and Development

Restructured

Regional Economic and Community Development

Skills

Machinery of Government

Part function transferred from Department of Education

These changes are designed to ensure better alignment with the Department’s overall objectives and Government outcomes, and to reflect machinery of government changes. The two additional output groups are the Information and Communication Technologies (ICT) Policy and Programs, and Skills. Discontinued performance measures are detailed in Appendix C 2007-08 Budget Paper No. 3 - Service Delivery (Pages 408 & 409) The following table summarises the total output cost. It has been prepared on the basis of the Department’s 2007-08 output structure and therefore allocations may differ form the Department’s previously published budget.

Output: Investment Attraction Output classification: The primary strategic objective of this output is to position Victoria as an attractive destination for investment that stimulates growth and development across the State. While Invest Victoria plays a lead role in the delivery of this output, significant contributions are made from across the Department. This output makes a significant contribution to the achievement of the following key Government outcomes: - more quality jobs and thriving, innovative industries across Victoria - growing and linking all of Victoria. This is achieved by positioning Victoria in the global economy as a world class investment location and by identifying, targeting and facilitating strategically important investments. Invest Victoria provides a whole-of-Victorian Government single entry point approach for investors. Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Investment projects under development

number

250

335

Jobs derived from investments facilitated

number

5 000

8002

New investments facilitated

$ million

1 600

3541.5

per cent

INVESTMENT FACILITATION AND ATTRACTION Description: Provides investment and facilitation services to attract new international investment and encourage additional investment by companies already operating in Victoria Quantity

Quality Client satisfaction rating by businesses with investment facilitation services * Client satisfaction survey to be completed

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OUTPUT GROUPS (continued) Output: Trade Development Output classification: The primary strategic objective of this output is to work with the business sector and other key partners to encourage and facilitate exports. The Office of International Business and Export plays a leading role in the delivery of this output, with contributions from across the Department. This output makes a significant contribution to the achievement of the following key Government outcomes: - more quality jobs and thriving, innovative industries across Victoria - growing and linking all of Victoria. This is achieved by assisting firms, including small to medium sized enterprises (SMEs) to develop and expand exports, import replacement and by facilitating cooperative arrangements between industry and Government to optimise trade opportunities. Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Companies provided with export assistance

number

3 050

4266

Exports facilitated and imports replaced

$ million

689

1520.4

Number of firms participating in individual export specific programs

number

600

1283

Trade fairs and missions supported

number

per cent

90.36

EXPORT PROMOTION Description: Promotes and facilitates export opportunities for Victorian businesses particularly small and medium sized enterprises Quantity

Quality Client satisfaction with export assistance offered

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OUTPUT GROUPS (continued) Output: Developing Innovative Industries Output classification: The primary strategic objective of these outputs is to facilitate and support innovation across Victorian business and industry. These outputs are delivered collaboratively across DIIRD with specific contributions from the Innovation Economy Advisory Board, Business Development, Industrial Relations Victoria, Business Support and the Small Business Commissioner. These outputs make a significant contribution to the achievement of the following key Government outcomes: - more quality jobs and thriving, innovative industries across Victoria - growing and linking all of Victoria - high quality education and training for lifelong learning - a fairer society that reduces disadvantage and respects diversity. This is achieved by investing in strategic knowledge industries, infrastructure and services and by fostering the adoption and commercialisation of ideas and research. These Divisions also provide market intelligence information and research on economic and industry trends and facilitate and support priorities and approaches to foster a skilled and productive workforce. Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

General enquiries: Business Enquiries

number

40000

42400

Registration for online services

number

3000

13312

Businesses assisted under the Business Skills for the Future Program

number

100

165

Agencies participating in World Class Service Initiative

number

Client satisfaction at small business information, referral or mentoring service (survey)

per cent

Small Business Commissioner - proportion of business disputes successfully mediated by Commissioner

per cent

100

Unit of Measure

2006-07 Target

2006-07 Actual

Companies assisted in the financial services sector

number

Companies assisted through Australian Logistics Assured Program

number

Initiatives completed by Melbourne Centre for Financial Studies

number

SMALL BUSINESS SUPPORT Description: Provides businesses information, advisory and referral services that contribute to the growth and development of small and medium sized enterprises across Victoria Quantity

Quality

Timeliness Proportion of applicants by retail tenants before leases of less than five years that are responded to by the Small Business Commissioner in 21 days

Major Outputs/Deliverables SERVICE INDUSTRIES Description: Facilitates growth and sustainability of Victoriaâ&#x20AC;&#x2122;s service industries Quantity

New investments facilitated in financial/shared services

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OUTPUT GROUPS (continued) Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Number of firms participating in programs designed to facilitate high performing and innovative workplaces

number

Respond to general workplace inquiries

number

8 000

15915

Workplace Right Advocate: Information sessions provided

number

Client satisfaction with programs designed to facilitate high performing and innovative workplaces and with investment facilitation services

per cent

Victoria represented in major industrial relations cases and inquiries in accordance with Government policy

per cent

100

Unit of Measure

2006-07 Target

2006-07 Actual

Australian Synchrotron: Client Management beam line user groups operating

number

Biotechnology partnerships facilitated

number

Businesses/researchers accessing science, technology and innovation (STI) funded infrastructure

number

300

448

ratio

3.5:1

3.6:1

STI infrastructure projects under management

number

Victorian participation in international biotechnology forums led by Government

number

ratio

5.1

INNOVATIVE AND HIGH PERFORMING WORKPLACES Description: Advocates for and facilitates innovative, high performing and cooperative workplaces that contribute to Victoria’s economic development Quantity

Quality

Major Outputs/Deliverables SCIENCE TECHNOLOGY AND INNOVATION Description: Facilitates development of Victoria’s science and technology base and promotes innovation across the economy Quantity

Value of projects attracted by STI funding

Value of investment attracted by Energy Technology projects Quality Patents sought by STI funded organisations

number

Skills expansion - PhD’s commenced in STI funded projects

number

200

362

*Program transferred to DPI on 1 January 2007

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OUTPUT GROUPS (continued) Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Attendees at presentations by key note speakers

number

2 400

2366

Companies participating in Innovation Insights Visits program

number

200

248

Companies provided with assistance in technology uptake

number

270

High performance consortia supported

number

Participation in Balance Sheet Ready Program

number

ADVANCED MANUFACTURING Description: Facilitates growth and sustainability of Victoria’s manufacturing sector Quantity

Design Sector Initiatives: Lectures, seminars and workshops held

Design Sector Initiatives: case studies completed

1000

per cent

Unit of Measure

2006-07 Target

2006-07 Actual

number

per cent

Unit of Measure

2006-07 Target

2006-07 Actual

$ million

93.8

number

2340

2814

Design Sector: People participating in lectures, seminars and workshops Quality Participant satisfaction with Advanced Manufacturing programs

Major Outputs/Deliverables STRATEGIC POLICY Description: Provides research, analysis and advice on issues of strategic importance to Victoria’s economic development as well as Ministerial and Government services Quantity Number of major research and evaluation projects completed Quality Service provision rating

Major Outputs/Deliverables FILM VICTORIA Description: Quantity Value of film, television and new media production supported by Film Victoria production Quality Additional employment from production supported by Film Victoria production

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OUTPUT GROUPS (continued) Output: Regional Development Output Classification: The primary strategic objective of these outputs is to ensure the sustained economic and industry development of provincial Victoria. Regional Development Victoria takes a leading role in the delivery of these outputs. These outputs make a significant contribution to the achievement of the following key Government outcomes: - more quality jobs and thriving, innovative industries across Victoria - growing and linking all of Victoria - building friendly, confident and safe communities. This is achieved by developing and facilitating investment and infrastructure projects that contribute to economic growth in Provincial Victoria and by targeting population growth and the number of innovative enterprises in provincial Victoria Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Clusters supported in regional Victoria

number

Companies in regional Victoria provided with assistance for growth opportunities

number

160

248

REGIONAL ECONOMIC AND COMMUNITY DEVELOPMENT Description: Facilitates employment, population and economic growth and the ongoing revitalisation of regional cities and towns Quantity

Enquiries to provincial councils about living working and/or investing in their region

number

500

1186

Jobs created in regional Victoria

number

1,000

2395

New exports facilitated in regional Victoria

$ million

100

273.7

New investment facilitated in regional Victoria

$ million

750

1518.1

Next Generation Food Strategy - initiatives in operation

number

Provincial Economic Partnerships - projects supported

number

per cent

Unit of Measure

2006-07 Target

2006-07 Actual

Regional Infrastructure Development Fund (RIDF) projects funded (excluding Gas and Small Towns Development Fund)

number

Small Towns Development Fund (RIDF) projects funded

number

Towns with work commenced to enable connection under the Natural Gas Extension Program

number

per cent

100

days

Quality Participant satisfaction with Regional Business Investment Ready Program

Major Outputs/Deliverables REGIONAL INFRASTRUCTURE DEVELOPMENT Description: Provides capital works funds for infrastructure development projects in regional Victoria Quantity

Quality RIDF Committee recommendations accepted by Ministers Timeliness Advice to RIDF applicants - after receipt of applications

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OUTPUT GROUPS (continued) Output: Marketing Victoria Output classification: The primary strategic objective of this output is to effectively market Victoria in a global economy. Tourism Victoria plays a leading role in the delivery of this output. This output makes a significant contribution to the achievement of the following key Government outcomes: - more quality jobs and thriving, innovative industries across Victoria - growing and linking all of Victoria. This is achieved by positioning Victoria as a distinct, competitive and fair business environment, exporter and tourist destination and by promoting and marketing these characteristics nationally and overseas. Tourism Victoria supports and develops events for Victoria to maximise economic and tourism benefits and maximises the dissemination of tourism information about Victoria through online channels. Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Investment projects facilitated

$ million

200-250

208

Number of visitors (International)

number

1.2-1.5

1.5

Value of earned ink generated: (Domestic)

$ million

35-45

35.95

Value of earned ink generated: (International)

$ million

80-100

100.92

Visitor expenditure (Domestic)

$ billion

6.8-7.2

7.9

Visitor expenditure (International)

$ billion

2.4-2.7

2.9

Visitor expenditure in regional Victoria: (Domestic)

$ billion

2.7-3.1

3.6

Visitor expenditure in regional Victoria: (International)

$ million

250-290

214

Visitvictoria.com site annual visitors to site

number (000)

3,800

5269

Target marketing awareness of advertising on Victoria: Interstate

per cent

16-21

15.7

Target marketing awareness of advertising on Victoria: Victoria

per cent

12-17

17.2

TOURISM Description: Facilitates employment and the longer-term economic benefits of tourism to Victoria by developing and marketing the state as a competitive tourist destination for both domestic and international tourists Quantity

Quality

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OUTPUT GROUPS (continued) Output: Skills Output classification: The Training and Further Education output involves provision of training programs and support for students in TAFE institutes and other registered training organisations in accordance with Government priorities and in response to industry and community demands. This output makes a significant contribution to the following key Government outcomes: - growing and linking all of Victoria - more quality jobs and thriving, innovative industries across Victoria. Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

Annual Government funded module enrolments

number (million)

2.44

Audit of contract compliance by registered training organisations and other State Training Systems organisations

number

350

Government funded student contact hours of training and further education provided

number (million)

70.55

Government funded student contact hours of training and further education provided to 15-24 year olds

number (million)

45.06

Number of apprenticeships/trainees completion who qualify for the completion bonus

number

13,070

13070

Number of apprenticeship/traineeship commencements by new employees

number

56,785

56785

Number of individuals assisted through Skill Up

number

1200

Participation rate of 15 to 19 year olds in training and further education in Victoria: All Victoria

per cent

26.8

27.8

Percentage of TAFE graduates who rate quality of training as four or more out of five

per cent

86.9

Persons aged 15-64 participating in TAFE programs as proportion of population

per cent

12.4

14.8

Successful training completions as measured by module load pass rate

per cent

77.4

77.5

TAFE graduates in employment six months following graduation

per cent

SKILLS (output name changed from Training and Further Education) Description: Provision of training and further education places by TAFE institutes and other registered training organisations in accordance with priorities set by Government, industry and the community. This output also includes provision of services to providers and the community to ensure and enhance the quality of the education and training places purchased. Quantity

Quality

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OUTPUT GROUPS (continued) Output: ICT Policy and Programsa Output Classification: The primary strategic objective of these outputs is to implement the Government’s ICT agenda through a range of programs that promote a strategic approach to broadband telecommunications and undertaking programs designed to promote and grow a competitive Victorian ICT industry and grow Victoria’s ICT capability. This output contributes to the following key Government outcomes: - more quality jobs and thriving, innovative industries across Victoria -growing and linking all of Victoria - sound financial management. This output provides the Government with strong policy development in relation to ICT, and to implement a range of targeted industry development and telecommunications programs. Major Outputs/Deliverables

Unit of Measure

2006-07 Target

2006-07 Actual

ICT projects and programs underway

number

27*

ICT policy reviews underway

number

ICT research projects underway

number

Export development projects

number

Investments projects under development

number

per cent

100

per cent

100

ICT POLICY AND PROGRAMS Description: Deliver policy advice and projects to grow a global ICT industry in Victoria and to promote the advanced use of ICT across the economy, and state-wide infrastructure services Quantity

Quality Assessment of quarterly monitoring reports for ICT grant agreements undertaken Timeliness Payments made according to contracts, provided ICT grant recipients meet contract terms

* The 2006-07 Actual is below target due to machinery of government changes - seven projects were transferred to Department for Victorian Communities.

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CONTACT DETAILS Head Office Department of Innovation Industry and Regional Development 121 Exhibition Street Melbourne VIC 3000 Postal Address PO Box 4509 Melbourne VIC 3001 Tel: 03 9651 9999 Fax: 03 9651 9962 www.diird.vic.gov.au

Shepparton VBC 3/164 Welsford Street Shepparton VIC 3630 Tel: 03 5821 1811 Fax: 03 5822 2554

Regional Offices and Victorian Business Centres (VBCs) Ballarat VBC 48 Sturt Street Ballarat VIC 3350 Tel: 03 5320 5900 Fax: 03 5330 5998

Vermont (Eastern Metropolitan) VBC 520 Canterbury Road Vermont VIC 3133 Tel: 03 9874 5733 Fax: 03 9874 5135

Bendigo VBC 46 Edward Street Bendigo VIC 3550 Tel: 03 5442 4100 Fax: 03 5442 5452 Dandenong (SE Metropolitan) VBC 314A Thomas Street Dandenong VIC 3175 Tel: 03 9791 5755 Fax: 03 9794 5644 Geelong VBC 69-71 Moorabool Street Geelong VIC 3220 Tel: 03 5229 0641 Fax: 03 5229 9503 Glenroy (NW Metropolitan) VBC Suite A, 3 Belair Avenue Glenroy VIC 3046 Tel: 03 9304 4344 Fax: 03 9304 4355 Melbourne CBD Victorian Consumer & Business Centre 113 Exhibition Street Melbourne VIC 3000 Tel: 13 22 15 Fax: 03 9651 8108 Mildura VBC 131 Langtree Avenue Mildura VIC 3500 Tel: 03 5051 2000 Fax: 03 5051 2020

Traralgon VBC 33 Breed Street Traralgon VIC 3844 Tel: 03 5174 9233 Fax: 03 5174 7845

Wangaratta North Eastern VBC 27-29 Faithfull Street Wangaratta VIC 3677 Tel: 03 5721 6988 Fax: 03 5721 2265 Wodonga VBC 6/22 Stanley Street Wodonga VIC 3690 Tel: 02 6056 2166 Fax: 02 6056 2334 Tourism Victoria Offices Head Office Tourism Victoria Level 32, 121 Collins Street Melbourne VIC 3000 Postal address: GPO Box 2219T Melbourne VIC 3001 Tel: +61 3 9653 9777 Fax: +61 3 9653 9722 Internet: www.visitvictoria.com www.visitmelbourne.com www.visionsofvictoria.com www.tourismvictoria.com.au Email: tourvic@tourism.vic.gov.au Sydney Tourism Victoria Level 13, 31 Market Street Sydney NSW 2000 Tel: +61 2 9287 6500 Fax: +61 2 9287 6507

Department of Innovation, Industry and Regional Development - Annual Report 2006-2007

Tourism Victoria Overseas Business Offices Shanghai – People’s Republic of China Victoria Trade and Investment Office Suite 308, Shanghai Centre 1376 Nanjing West Road Shanghai 200040 China Tel: 0011 86 21 6279 8681 Fax: 0015 86 21 6279 8685 Email: tourvic.shanghai@tourism.vic. gov.au Hong Kong – People’s Republic of China Tourism Victoria Suite 6706, Central Plaza 18 Harbour Road Wanchai, Hong Kong Tel: 0011 852 2531 3870 Fax: 0011 852 2845 2213 Email:hongkong@invest.vic.gov.au Tokyo – Japan Tourism Victoria Australian Business Centre 28F New Otani Garden Court 4 – 1 Kioi – Cho, Chiyoda-ku Tokyo 102 – 0094 Japan Tel: 0011 81 3 5214 0787 Fax: 0015 81 3 5214 0790 Email: tourvic.tokyo@tourism.vic.gov.au Singapore Tourism Victoria 101 Thomson Road #08-01 United Square Singapore 307591 Tel: 0011 65 6255 6888 Fax: 0011 65 6255 2922 Email: tourvic.singapore@tourism.vic. gov.au Auckland – New Zealand Tourism Victoria Level 3, 125 The Strand Parnell, Auckland New Zealand Postal address: PO Box 1666 Auckland, New Zealand Tel: 0011 649 379 0425 Fax: 0015 649 379 4361 Email: tourvic.auckland@tourism.vic. gov.au

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Los Angeles â&#x20AC;&#x201C; North America Tourism Victoria Suite 1150, 6100 Center Drive Los Angeles CA 90045 USA Tel: 0011 1 310 695 3245 Fax: 0015 1 310 695 3248 Email: tourvic.losangeles@tourism.vic. gov.au Europe Tourism Victoria Neue Mainzer Str 22 60311 Frankfurt, Germany Tel: 0011 49 2740 0677 Fax: 0015 49 2740 0640 Email: tourvic.frankfurt@tourism.vic. gov.au United Kingdom, Ireland and Nordic Countries Tourism Victoria 26th Floor, Australia Centre Melbourne Place, Strand London WC2B 4LG United Kingdom Tel: 0011 44 207 438 4645 Fax: 0015 44 207 240 6690 Email: tvic.london@tvic.australia.com Victorian Government Business Offices Overseas United Kingdom David Buckingham Agent-General Victoria House Melbourne Place, Strand London WC2B 4LG United Kingdom Tel: 0011 44207 836 2656 Fax: 0015 44207 240 6025 Email: london@invest.vic.gov.au Japan Mr Tim Dillon Executive Director Level 13 Fukoku Seimei Building 2-2-2 Uchisaiwai-cho, Chiyoda-ku Tokyo 100 0011 Japan Tel: 0011 81 3 3519 3371 Fax: 0015 81 3 3519 3375 Email: tokyo@invest.vic.gov.au

Germany Mr Eric Menges Executive Director Grueneburgweg 58-62 60322 Frankfurt am Main Germany Tel: 0011 49 69 668 074 0 Fax: 0015 49 69 668 074 66 Email: frankfurt@invest.vic.gov.au Shanghai Mr Charles Brent Executive Director Suite 308, Shanghai Centre 1376 Nanjing West Road Shanghai 200040 China Tel: 0011 86 21 6279 8681 Fax: 0015 86 21 6279 8575 Email: shanghai@invest.vic.gov.au Hong Kong Mr Allen Kwok Investment Manager 2108 Harbour Centre 25 Harbour Road Wanchai, Hong Kong Tel: 0011 852 2587 1133 Fax: 0015 852 2802 9675 Email: hongkong@invest.vic.gov.au

San Fransisco, USA Mr Andrew Dyer Executive Director 575 Market Street, Suite 2080 San Francisco CA 94104 USA Tel: 0011 1 415 856 0552 Fax: 0011 1 415 856 0517 Email: sanfrancisco@invest.vic.gov.au Chicago, USA Ms Louisa Jordan Investment Manager 123 N Wacker Drive, Suite 1325 Chicago IL 60606 USA Tel: 0011 1 312 332 0862 Fax: 0015 1 312 332 0863 Email: chicago@invest.vic.gov.au New York, USA Ms Joanna Gurry Investment Manager 150 E. 42nd Street, 34th Floor New York, NY 10017 USA Tel: 0011 1 212 687 0934 Fax: 0015 1 212 687 2187 Email: newyork@invest.vic.gov.au

Nanjing Mr Jason Li Investment Manager Suite 1164, World Trade Centre Jinling Hotel 2 Hanzhong Road Nanjing 210005 China Tel: 0011 86 25 84701 231 Fax: 0015 86 25 84709 821 Email: nanjing@invest.vic.gov.au Bangalore Mr Wayne Lewis Commissioner to India 1st Floor, Pride Elite Building No. 10 Museum Road Bangalore 560 001 India Tel: 0011 91 80 41227560 Fax: 0015 91 80 41227569 Email: bangalore@invest.vic.gov.au United Arab Emirates Mr Peter Deacon Executive Director Office 111, 1st Floor Emarat Atrium Sheikh Zayed Road PO Box 58004 Tel: 0011 971 4 321 2600 Fax: 0015 971 4 321 2700 Email: dubai@invest.vic.gov.au

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