diird annual report 2006-2007

Department of Innovation, Industry and Regional Development

Annual Report2006-2007

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

© 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 GovernmentDepartment of Innovation, Industry and Regional Development.121 Exhibition Street Melbourne Victoria 3000.

Contact: Strategic Communications UnitTelephone: (03) 9651 9999ISSN 1447-5014

Printed by blueprintDesigned and Produced by X2 Design

Photo creditsMichael Silver: p. 16, 20, 28, 32, 36, 50, 54David 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.

Financials and AppendiciesCDROM

3

Secretary’s foreword 4

Our Ministers 6

Economic context 7

Role and structure of the Department 8

Organisational chart 10

DIIRD governance 12

Output groups 14

STRATEGIC OBJECTIVES

01 Investment attraction 16

02 Trade development 20

03 Developing innovative industries 24

04 Regional development 28

05 Marketing Victoria 32

06 Skilled Victorians 36

07 Connecting Victoria 42

08 Competitive and fair business environment 46

09 Productive workforce 50

10 Innovation and industry policy 54

11 Corporate support 58

Financials CD ROM

Appendices CD ROM

CONTENTS

Department of Innovation, Industry and Regional Development - Annual Report 2006-20074

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 diffi culties 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 benefi ts that fl ow from this.

There are also many examples of the ongoing benefi ts of our investment in strategic knowledge industries, infrastructure and services. The Australian Synchrotron is the most signifi cant investment in national research infrastructure for decades. It is set to revolutionise scientifi c 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, benefi t Victoria’s aviation and tourism industries and increase our access to international markets. There are many other examples of signifi cant investment in Victoria in the pages that follow.

A number of machinery-of-government changes took place following the

November 2006 State election. The most signifi cant changes for DIIRD were the integration of the Offi ce 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 infl uence 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 signifi cant 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

SECRETARY’S FOREWORD

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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 qualifi cations, 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 Offi ce 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 refl ect on the positive outcomes and benefi ts 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


OUR MINISTERS

AND PARLIAMENTARY

SECRETARIES

The Hon. Rob Hulls MPMinister for Industrial Relations

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

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

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

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

The Hon. Kaye Darveniza MLCParliamentary Secretary for Regional Development

Tony Lupton

Parliamentary Secretary for Industry and Innovation

New Ministerial responsibilities and machinery of Government changes were announced soon after the end of the 2006-07 fi nancial year. The following Ministerial responsibilities are effective from 8 August 2007:

The Hon. Theo Theophanous MLCMinister for Industry and TradeMinister for Information and Communication Technology

The Hon. Rob Hulls MPMinister for Industrial Relations

The Hon. Jacinta Allan MP Minister for Regional and Rural DevelopmentMinister for Skills and Workforce Participation

The Hon. Tim Holding MPMinister for Tourism and Major Events

The Hon. Joe Helper MPMinister for Small Business

The Hon. Gavin JenningsMinister for Innovation

Parliamentary Secretaries

The Hon. Kaye Darveniza MLCParliamentary Secretary for Regional and Rural Development

Ms Jaala PulfordParliamentary Secretary for Industrial Relations

The Hon. Marsha Thomson MLCParliamentary 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).

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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 fi gures 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 refl ect 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 refl ect an increase in business confi dence and expectations of further increases in sales, profi tability, 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 diffi cult year. Residents and businesses endured drought and battled devastating bushfi res across the north-east and west, and fl ood in the Gippsland region. DIIRD responded to these challenges by developing and delivering $138 million of initiatives for environmental, community and business recovery in bushfi re-affected regions, and a $146 million drought- assistance package for farmers, businesses and communities.

These facts and fi gures 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 fl exible 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 wide- ranging responsibilities, which are outlined below.

The Department develops and implements a diverse range of programs, initiatives and projects designed to attract and

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.

Division/Agency Key responsibilities

Business DevelopmentIncludes the Offi ce of Science and Technology, the Offi ce of Manufacturing and Service Industries, and Business Innovation and Strategy.

• 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 SupportIncludes the Offi ces 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 fi nance, 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 BoardThe Board comprises leading fi gures 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.

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Division/Agency Key responsibilities

Invest Victoria • 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

Offi ce 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.

Offi ce 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 benefi ts 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.


• Industry & Trade Policy

• Innovation & Research

• Planning & Government Services

• Offi ce of Science & Technology

• Offi ce of Manufacturing & Service Industries

• Offi ce of Business Innovation & Strategy

• Business Development Administration

• Communications & Events

• Offi ce of Small Business

• Offi ce of Investment Facilitation

• Offi ce of International Business & Export

• Program Support

• Koori Business Network

• International Investment

• Victorian Government Business Offi ces

• Strategic Projects & Policy

• Marketing

• Finance & Administration

• 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 Innovation

Minister for Regional and Rural Development

Minister for Skills, Education Services and Employment

Minister for Industrial Relations

Minister for Industry and State Development

Minister for Small Business

John Brumby Jacinta Allan Rob HullsTheo Theophanous (Coordinating Minister)

ORGANISATIONAL CHART

Small BusinessCommissioner

Mark Brennan

Workplace RightsAdvocate

Tony Lawrence

Deputy Secretary

Economic Policy & Planning

David Hanna (Acting)

Deputy Secretary

Business Development

Jane Niall

Deputy Secretary

Business Support

Ian Munro(Acting)

Chief Executive Offi cer

Invest Victoria

Ben Foskett


Regional DevelopmentVictoria

Dan O’Brien

• Infrastructure

• Industry Investment

• Promotion & Development

• Delivery

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• Private Sector

• Public Sector

• Strategy & Policy

• Industry & Investment

• Marketing

• Executive Services

• Networks Policy

• ICT Capability & Futures

• ICT Investment & Business Development

• Vocational Education & Training

• Higher Education & Regulation

• Strategic Directions

• Training Operations

Minister for Tourism

Minister for Information and Communication Technology

Parliamentary Secretary for Regional Development

Parliamentary Secretary for Industry and Innovation

Tim Holding Kaye Darveniza Tony Lupton

Secretary


Warren Hodgson


Innovation EconomyAdvisory Board

David Hanna

Executive Director

StrategicCommunications

Merita Tabain

Deputy Secretary

Industrial Relations

Timothy Lee

Chief Executive

Tourism Victoria

Greg Hywood

Executive Director

Multimedia Victoria

Randall Straw

Deputy Secretary

Offi ce of Training & Tertiary Education

Patricia Neden

Deputy Secretary

Corporate Services

Marion van Rooden

• Governance Services

• 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:• sets out the processes for developing

organisational strategy and direction• ensures compliance and

accountability• defi nes structures and relationships• outlines performance monitoring and

review processes.

The Secretary, as Head of the Department, is accountable to the fi ve DIIRD Ministers for governance of the Department. The Secretary is assisted to fulfi l 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.

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:

• 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 CommitteeThe 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.

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 2006-07 DIIRD Audit Committee were:

• 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.

Risk managementRisk 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:

• 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

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DIIRD Governance Framework

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, Offi ce 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 O’Brien, CEO Regional Development Victoria; Jane Niall, Deputy Secretary, Business Development.

Under DIIRD’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, effi ciency, 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.


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 outlinesthe Department’s key objectives and strategies, and illustrates how they contribute in a practical and tangible way to achieving our overall strategic objectives.

Investment attractionThe 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 signifi cant contributions from across the whole Department.

Trade developmentThe primary strategic objective of this output is to work with the business sector and other key partners to encourage and facilitate exports. The Offi ce 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 specifi c contributions from Business Development, Industrial Relations Victoria, Business Support, Regional Development Victoria and the Small Business Commissioner.

Information and Communication Technology policy and programsThe 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-of-government changes in December 2006, plays a leading role in the delivery of this output.

Regional developmentThe 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.

Marketing VictoriaThe 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.

SkillsThe 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 Offi ce of Training and Tertiary Education, which became part of DIIRD following machinery-of-government changes in December 2006, plays a leading role in the delivery of this output.

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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 whole-of-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 fi ve 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 refl ects 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 effi cient corporate support within DIIRD.

OVERVIEW OF STRATEGIC OBJECTIVES


INVESTMENT

ATTRACTION

01

17

Strategic objective: Promote and position Victoria in the global economy as a world class investment locationA new airline in Melbourne, a clean coal power station in the Latrobe Valley, new retail outlets across regional Victoria and the largest single offi ce development in Australia at Docklands – these are just some of the many signifi cant developments that brought strategically important investments and new jobs to Victoria in 2006-07.

Attracting investment and the many social and economic benefi ts 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 confi rmed 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 investmentsIn 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 fi nancial 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 confi rmation 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 Singapore-based airline, to establish its Australian operations in Melbourne. Tiger’s new investment is expected to create 165 full-time jobs and see travellers benefi t from competitive airfares.

The Department, through Regional Development Victoria (RDV) and the Offi ce of Manufacturing and Service Industries, took a lead role in attracting a signifi cant 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 Offi ce of Investment Facilitation provided extensive facilitation services to the company, including site identifi cation 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 managementThroughout the year, the Offi ce 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 Offi ce of Investment Facilitation has an ongoing role in assisting Bunnings in its rollout of stores across the state. In the past year, the offi ce 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

INVESTMENT ATTRACTION

Client Manager with the Offi ce 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 scientifi c and medical instruments.


year to the local community.

The Offi ce of Investment Facilitation also assisted ALDI, a German retail company, with approvals for stores in Brunswick, Corio, East St Kilda, Northcote, and Morwell. The offi ce 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 offi ce 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 fi nancial 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 Offi ce 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

for occupation in early 2008.

These projects refl ect DIIRD’s commitment to playing an ongoing practical and responsive role that supports all kinds of investments, industries and areas.

INVESTMENT ATTRACTION (CONTINUED)

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

01

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CASE STUDY

THE PILKINGTON PACKAGE: AN INNOVATIVE INVESTMENT WITH GREEN CREDENTIALSInvest 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 fl oat 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 effi cient, 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 benefi ts 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 effi cient 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.

Low emissions energy effi cient glass products made by Pilkington were used in the new Simplot building at Chifl ey Business Park, Mentone.

Photo: Peter Hyatt and Pilkington

“ Pilkington is using the

package to rebuild, modernise

and extend its Dandenong

fl oat glass plant, creating up

to 292 new jobs…”


TRADE

DEVELOPMENT

02

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

21

TRADE DEVELOPMENT

Strategic objective: To work with the business sector and other key partners to encourage and facilitate exportsVictoria’s export growth is at a fi ve-year high, despite the impact of drought and a strong Australian dollar. This refl ects 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 fi nd 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 fi rms, including small and medium enterprises, to develop and expand exports and import replacementsThe Offi ce 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 opportunitiesThe 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

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 ‘export ready’ by promoting Victorian food products to international buyers and helping companies collaborate to develop suffi cient 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 effi ciency 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

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.


Minister for State Development, Theo Theophanous.

02

23

“ …loc

al m

anufac

ture

rs

were p

rice c

ompet

itive

when co

mpar

ed to

over

seas

com

panies

…”

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 signifi cant 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.

CASE STUDY


DEVELOPING INNOVATIVE

INDUSTRIES

03

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 fi rst expert users of the protein crystallography beamline at the Australian Synchrotron, undertaking research on Alzheimer’s disease.

25

Strategic objective: To facilitate and support innovation across Victorian business and industryInnovation plays a key role in Victoria’s current and future prosperity. It drives economic growth and delivers a wide range of benefi ts 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 benefi ts of innovation were evident in a diverse range of projects and developments in all kinds of industries, from biotechnology to ship building to fi lm 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 servicesThe Australian Synchrotron is the most signifi cant piece of scientifi c 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 signifi cant 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 fi rst 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 scientifi c research and development and supported the development of new technology for

use by industry. Six new world-class facilities for scientifi c 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 fi elds. 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 signifi cant 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, identifi cation and quantifi cation 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 fl agship 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 businessThroughout 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 2007-2010 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 scientifi c to the cultural, fi lm and television production in Victoria also enjoyed a successful year. Film Victoria provides grants, investment and cash-fl ow facilities to secure Victorian-based productions and skill development. The estimated minimum fi lm and television production spend in Victoria was $144.9 million in 2006-07, which was an 8 per cent increase over the previous fi nancial year ($134.4 million). Film Victoria leveraged $93.8 million worth of production expenditure, or 65 per cent of total expenditure. Projects fi lmed in 2006-07 include the

DEVELOPING INNOVATIVE INDUSTRIES


multimillion dollar feature fi lm 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 fi rst feature from Academy Award® winner Adam Elliot, and The Pacifi c, the largest TV mini-series ever made, produced by Academy Award® winners Steven Spielberg and Tom Hanks.

Other fi lm 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 sectorDIIRD 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.

As part of this strategy, KBN hosted Victoria’s fi rst 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.

DEVELOPING INNOVATIVE INDUSTRIES (CONTINUED)

03

27

CASE STUDY

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 fl ight 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 refl ect 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 benefi ts. 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.

“ …this landm

ark project

will create around

600 new local jobs…”


04REGIO

NAL

DEVELOPMENT

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 ‘Regional Technology Commercialisation Program’. 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 Offi cer, Regional Development Victoria, based in the Traralgon Victorian Business Centre.

29

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 diffi cult year. Residents and businesses endured drought and battled devastating bushfi res. RDV took the lead role across Government in developing a bushfi re recovery package which delivered over $138 million of initiatives for business, community and environmental recovery. The package had a particular focus on positioning fi re-affected communities for future growth.

RDV also delivered a number of programs as part of the Victorian Government’s $146 million drought- assistance 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 signifi cantly affected by the drought, and held a series of information events in regional municipalities.

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

Despite the many social and economic challenges presented by drought, bushfi res and fl ood, regional Victoria showed great resilience and continued to enjoy population and economic growth.

Key strategy: Develop and facilitate investment in provincial VictoriaThroughout 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 fi rms to develop export industries.

RDV’s role in helping to secure Unilever’s continued presence in Victoria provides a practical example of the benefi ts 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 fi ve 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-Pacifi c region.

Key strategy: Facilitate infrastructure projects that contribute to economic growth in provincial VictoriaInfrastructure investment expands the competitive capacity of provincial

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

Throughout the year, 26 RIDF projects were announced and 104 Small Towns Development Fund projects were fi nanced. 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 signifi cant economic benefi ts of regional infrastructure projects.

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 signifi cant 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 VictoriaIn 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 fi rst 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

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.

Fire Authority, the Department of Sustainability and Environment and the Offi ce of the Emergency Services Commissioner to produce a one hour television program to encourage people to visit regional areas following the summer bushfi res.

The program Ready for Business – 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 bushfi re-affected 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 refl ect on the potential benefi ts and advantages of relocating and living outside metropolitan areas.

Key strategy: Increase the number of innovative enterprises in provincial VictoriaInnovation 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 fi rms: The Innovation Road Map for Victoria’s Earth Resources. This initiative helps resource fi rms 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

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 fi eld 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 fi rst 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 specifi c projects that can help improve the competitive advantage and profi tability of up to 100 Geelong manufacturers.

REGIONAL DEVELOPMENT (CONTINUED)


04

31

“ Reg

ional

and ru

ral

Victor

ia has

much

to of

fer

visito

rs, re

siden

ts, busin

ess

and in

vesto

rs.” MAKE IT HAPPEN IN

PROVINCIAL VICTORIARegional 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 benefi ts 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 fi nances 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.

CASE STUDY

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 Victoria’s Food and Wine Tourism Council.


05 MARKETING

VICTORIA

33

MARKETING VICTORIA

Strategic objective: To effectively market Victoria in a global economyBeaches and snow-capped mountains, quirky cafes and laneway bars, wonderful wines and world-class 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 fi gures 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 long-term 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 destinationThe 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

direct international fl ights to Melbourne is crucial to tourism success.

Tourism Victoria worked on a number of air service developments during 2006-07 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 fl ights from India to Melbourne from December 2007

• Qantas’ decision to operate twice-weekly Melbourne-Shanghai services from March 2008.

In domestic developments, Singapore-based Tiger Airways agreed to base its Australian operations in Melbourne, providing a signifi cant increase in low-cost 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 internationallyTourism Victoria’s national and international marketing activities, combined with increased fl ights 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, fi ne food and wine, arts, culture and architecture. The campaign received numerous prestigious industry awards, including best in show, best fi lm direction and best 45-second TV commercial at the Melbourne Advertising and Design Club Awards in June 2007.

In a fi rst 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 fi rst 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.


Key strategy: Support and develop events for Victoria to maximise economic and tourism benefi tsVictoria 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

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).

MARKETING VICTORIA(CONTINUED)

05

35

CASE STUDY

TIGER TRAVELS TO MELBOURNELow-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 fl ight 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 offi ce 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 fi rst- class 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 fl ights and more to spend on memorable holiday adventures.

“ The establishment of

the Australian head offi ce

in Melbourne will create

more than 1,000 local jobs…

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


SKILLED

VICTORIA

NS

06

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

Training and tertiary education in Victoria – a snapshot

Programs and servicesEducation 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 certifi cate-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 government-funded 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 qualifi cations• In 2006, there were 71, 248 enrolments

in higher level VET qualifi cations 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 fi rst 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.


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 Offi ce 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.

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 qualifi cations.

Key strategy: Starting earlier to provide more opportunities for young people to participate in VET while still at school or in TAFEThe 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

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.

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 qualifi cation. 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: Provide more opportunities for Victorians of all ages to upgrade their skills to meet the needs of industryThe Learning Longer concept refers to ongoing learning and discovery for people of all age groups, to stimulate thought, build skills and fi nd 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 Certifi cate III level training

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 qualifi cationsVictoria’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 fi ve 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 qualifi cation levels of Victorians to provide business with a more highly skilled workforceDIIRD is responding to changing industry needs by providing programs and funding to lift the skills and qualifi cation 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

SKILLED VICTORIANS(CONTINUED)

39

level qualifi cations 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 diversifi cation 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 profi le to avoid graduate undersupply and oversupply.

Key strategy: Making it easier for individuals and employers to access information about training optionsThe Department aims to ensure every Victorian can increase their employment opportunities through accessible qualifi cations 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 Offi cers 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 qualifi cation. 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 economyThe 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 fl exible, responsive and highly skilled workforce.

The Innovation Fund was established to enable TAFE institutions to trial new initiatives in innovation and fl exible 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 institutionsIn 2006–07, OTTE undertook the following functions on behalf of the Victorian Qualifi cations 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 fi rst 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

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.

RegulationDuring 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.

AccreditationPublic 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 governanceAccountability 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 managementThe 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

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.

SKILLED VICTORIANS(CONTINUED)


06

41

TECHNICAL EDUCATION CENTRES AND NEW OPPORTUNITIES FOR VICTORIAN STUDENTSAs 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, high-tech, 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 Certifi cate 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.

“… $3

2 milli

on fo

r the

esta

blishm

ent o

f four

Tech

nical E

ducatio

n

Centre

s…”

CASE STUDY


CONNECTING

VICTORIA

07

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 O’Shea met with Prof Thas Nirmalathas from NICTA at the lab in Parkville to see the latest developments.

43

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 FrameworkBroadband 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 refl ects 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 fi rst 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 next- generation 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 industryAn innovative local ICT sector delivers fi nancial benefi ts and improves effi ciencies 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 programsDIIRD 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


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 signifi cant challenge for industry and government. Research confi rms 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 fi rst 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, fi rst 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 fi ve universities are sharing $1.1 million over the duration of their full-time Masters or PhD research courses to boost Victoria’s research capacity in priority ICT areas.

CONNECTING VICTORIA(CONTINUED)

07

Victorian ICT solutions provider, Yellowfi n 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, Yellowfi n (left); Minister for Information and Communication Technology, Tim Holding; and Mr Kitamura, Kyocera Maruzen Systems Integration.

45

CASE STUDY

BROADBAND IN ACTIONA 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-fi rst 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 fi lm 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 fi nances 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 benefi ts to the Victorian community.

“… one exam

ple of how

ground-breaking broadband

applications are already

improving Victorian lives.”

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 VSBC’s services continued to grow in 2006-07.


08COM

PETITIV

E AND F

AIR

BUSINESS E

NVIRONM

ENT

47

COMPETITIVE AND FAIR BUSINESS ENVIRONMENT

Strategic objective: To facilitate a business environment that is strongly supportive of industry developmentThe 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 refl ects the changing needs of the Victorian small business sector, which has seen a signifi cant 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 owner- drivers affected by new owner-driver legislation.

Key strategy: Maximise benefi ts for industry of Commonwealth and State policies and programsThe 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 developmentDIIRD 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 businessThe offi ce 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 dispute- resolution 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.

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 signifi cantly 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.

COMPETITIVE AND FAIR BUSINESS ENVIRONMENT (CONTINUED)

08Department of Innovation, Industry and Regional Development - Annual Report 2006-200748

Small Business Heroes – The Multicultural Infl uence was a photographic exhibition held as part of Energise Enterprise 07, to celebrate inspirational, multicultural small business people who have built creative businesses.

CASE STUDY

49

VICTORIAN BUSINESS CENTRES AT WORKClient managers from the Glenroy and Vermont Victorian Business Centres and the Offi ce 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 fi shing fi breglass 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.

“The p

lant w

ill bec

ome

the n

ation

al hea

dquarte

rs

and w

ill pro

duce up to

1,000

boats

per ye

ar.”

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


09 PRODUCTIVE

WORKFORCE

51

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 Offi ce 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 workforceThe 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 fi ve 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 signifi cant 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 refl ect Government policy.

Key strategy: Assist to improve business management capabilities by working with business, business associations and other government agenciesDIIRD 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 Offi ce 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.


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 fi ndings were highlighted on International Women’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.

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.

PRODUCTIVE WORKFORCE(CONTINUED)

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

53

CASE STUDY

THE BUILDING INDUSTRY COMPARATIVE INDEXVictoria’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.

“ Victoria’s construction sector has

become increasingly com

petitive,

with productivity levels rising

strongly over the past few years…”

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.


10IN

NOVATION A

ND

INDUSTRY P

OLICY

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 2006-07, led by (from right) Sam Steele, David Samuels and Serey Thir from the Economic Policy and Planning Division.

55

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 signifi cant progress in 2006-07 and highlighted the benefi ts 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 frameworkThe Innovation and Research Branch developed and fi nalised 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 sectorsAfter 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

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

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.

10

INNOVATION AND INDUSTRY POLICY(CONTINUED)


CASE STUDY

57

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 benefi ted 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 profi le 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.

“ Their

desig

ns enhan

ced

the c

ompan

y’s pro

fi le an

d

reputa

tion lo

cally

, nat

ionall

y

and in

tern

ation

ally…

”


11 CORPORATE

SUPPORT

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

Strategic objective: To deliver high quality, responsive, relevant, accessible and effi cient corporate support within DIIRDCorporate Services provided a range of essential services throughout the year. A key achievement for 2006-07 was facilitating the Department’s move to the Southern Cross building at 121 Exhibition Street Melbourne. Early in July 2006, offi ce 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 fi nd out more information about the vast number of well-paid 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 effi cientlyA number of machinery-of-government changes followed the November 2006 state election. The most signifi cant changes for DIIRD were the integration of Offi ce 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 briefi ng processes and effective information systems to support Ministers, Cabinet and Parliamentary and Legislation Services throughout the year.

The Department’s new ICT Strategy also identifi ed numerous key technology projects for implementation over the next three years. Projects such as the implementation of the Departmental Contact Management System resulted in signifi cant 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 DIIRDAs a result of feedback from staff and client surveys, a range of process improvements were implemented progressively throughout the year. These included e-briefi ng system and monthly fi nancial 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 effi ciency 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 skillsThe 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 Department-wide Mentoring Program, the Women in Management Program and Executive Offi cer Forums.

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


The Executive Offi cer 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.

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 fi nancial assistance contracts. Staff also participated in a range of learning and development programs covering presentation skills,

performance management, policy development, project management, and infl uencing, negotiation and communication skills.

CORPORATE SUPPORT(CONTINUED)

11

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

61

CASE STUDY

INDUCTION INTO BEST PRACTICEA 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 refl ected 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 fi rst 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 specifi c 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.

“ Mem

bers of the project team in

Human Resources took advantage

of the opportunity to learn from their

counterparts in other organisations…”

FINANCIAL REPORT



Department of Innovation, Industry and Regional Development - Annual Report 2006-2007 64

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 Department’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 fi nancial report.

For queries in relation to our reporting please call 9651 9999,or visit our website at http://www.iird.vic.gov.au/.

INTRODUCTION


Operating statement 66

Balance sheet 67

Statement of changes in equity 68

Cash flow statement 69

Notes to the Financial Statements

Note 1. Summary of accounting policies 70

Note 2. Departmental outputs 79

Note 3. Income 85

Note 4. Expenses 86

Note 5. Restructuring of administrative arrangements 88

Note 6. Receivables 90

Note 7. Other assets 90

Note 8. Property, plant and equipment 91

Note 9. Non-current assets classified as held for sale and liabilities directly associated with assets classified and held for sale 95

Note 10. Investments accounted for using the equity method 95

Note 11. Intangible assets 96

Note 12. Payables 97

Note 13. Interest bearing liabilities 97

Note 14. Provisions 97

Note 15. Superannuation 98

Note 16. Leases 99

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

CONTENTS


Note 2007$’000

2006$’000

Income

Revenue

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

Other revenue 3(b) 6,787 5,920

Total revenue 976,621 425,771

Other income 3(c) (242) (42)

Total income 976,379 425,729

Expenses

Grants and other payments 4(a) (714,487) (289,337)

Employee benefi ts 4(b) (57,893) (50,092)

Depreciation and amortisation 4(c) (3,754) (2,250)

Resources provided free of charge or for nominal consideration 15 -

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 - (8,460)

Total expenses (940,546) (417,385)

Share of net profi ts/(losses) of associates and joint ventures accounted using the equity method - -

Net result for the period 21(c) 35,833 8,344

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

OPERATING STATEMENTFOR THE FINANCIAL YEAR ENDING 30 JUNE 2007


BALANCE SHEETAS AT 30 JUNE 2007

Notes 2007$’000

2006$’000

Current assets

Cash and cash equivalents 1(j), 19, 20 259,701 123,750

Receivables 6, 19 74,593 44,083

Other 7 743 205

335,037 168,038

Non-current assets classifi ed as held for sale 1(j), 9 57 35

Total current assets 335,094 168,073

Non-current assets

Receivables 6, 19 1,436 1,365

Investments accounted for using the equity method 10 15,000 -

Property, plant and equipment 8 196,019 179,556

Intangible assets 11 - -

Other 7 - 15,000

Total non-current assets 212,455 195,921

Total assets 547,549 363,994

Current liabilities

Payables 1(k), 12, 19 103,738 30,663

Interest bearing liabilities 13, 19 1,171 772

Provisions 14 18,331 13,072

Other 1(h) 10,000 -

133,240 44,507

Liabilities directly associated with non-current assets classifi ed as held for sale 9 58 34

Total current liabilities 133,298 44,541

Non-current liabilities

Interest bearing liabilities 13, 19 1,199 1,060

Provisions 14 1,705 1,415

Other 1(h) 40,000 -

Total non-current liabilities 42,904 2,475

Total liabilities 176,202 47,016

Net assets 371,347 316,978

Equity

Contributed capital 21(b) 215,456 198,980

Reserves 21(a) 6,142 4,082

Accumulated surplus 21(c) 149,749 113,916

Total equity 371,347 316,978

Contingent assets and contingent liabilities 18

Commitments for expenditure 17

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


STATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

Note 2007$’000

2006$’000

Total Equity at the beginning of the fi nancial year 316,978 248,025

Gain/(loss) on property revaluation 21(a) 2,060 -

Net income recognised directly in equity 2,060 -

Net result for the period 21(c) 35,833 8,344

Total recognised income and expenses for the period 35,833 8,344

Transactions with the State in its capacity as owner 16,476 60,609

Total equity at the end of the fi nancial year 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.


CASH FLOW STATEMENTFOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

Note 2007$’000

2006$’000

Cash fl ows from operating activities

Receipts

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

Interest received - -

Total receipts 1,099,244 491,428

Payments

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)

Interest and other costs of fi nance paid (130) (83)

Total payments (1,011,954) (474,902)

Net cash fl ows from/(used in) operating activities 20(c) 87,290 16,526

Cash fl ows from investing activities

Payment for investment 50,000 -

Payments for property, plant and equipment (18,189) (49,016)

Payment for intangible assets - (5)

Net cash fl ows from/(used in) investing activities 31,811 (49,021)

Cash fl ows from fi nancing activities

Proceeds from capital contribution by State Government 16,287 45,609

Proceeds from borrowings 953 1,423

Repayment of fi nance leases (390) (234)

Net cash fl ows from/(used in) fi nancing activities 16,850 46,798

Net increase/(decrease) in cash and cash equivalents 135,951 14,303

Cash and cash equivalents at the beginning of the fi nancial year 123,750 109,447

Cash and cash equivalents at the end of the fi nancial year 20(a) 259,701 123,750

The above cash fl ow 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)


Notes to the Financial Statements30 June 2007

NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

(a) Statement of complianceThe fi nancial report is a general purpose fi nancial 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 fi nancial report was authorised for issue by W. Hodgson (Secretary - Department of Innovation, Industry and Regional Development) on 29 August 2007.

(b) Basis of PreparationThe fi nancial report has been prepared on a historical cost basis, except for the revaluation of certain non-current assets and fi nancial 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 signifi cant effects on the fi nancial statements and estimates with a signifi cant risk of material adjustments in the next year are disclosed throughout the notes in the fi nancial statements.

Accounting policies are selected and applied in a manner which ensures that the resulting fi nancial information satisfi es 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 fi nancial statements for the year ended 30 June 2007 and the comparative information presented for the year ended 30 June 2006.

(c) Reporting entityThe Department is an administrative agency acting on behalf of the Crown.

The fi nancial 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 Offi ce 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; • Offi ce 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 fi nancial activities of Tourism Victoria are not included in the Department’s reporting entity but are reported separately.

Administered resourcesThe 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 fi nancial 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 GovernmentThe 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 fi nancial statements as they are administered on a fi duciary and custodial basis, and therefore not controlled by the Department.

NOTE 1.SUMMARY OF ACCOUNTING POLICIES



Joint venture entitiesJoint 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 fi nancial 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 fi nancial statements using the equity method. Under the equity method, the share of the profi ts 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 fundingThe Department’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 DepartmentInformation about the Department’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 refl ect 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 refl ected in Note 5.

(f) Events after reporting dateAssets, 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 fi nancial 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 taxIncome, 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 fl ows are presented on a gross basis. The GST components of cash fl ows arising from investing or fi nancing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash fl ow.

NOTE 1.SUMMARY OF ACCOUNTING POLICIES (continued)




(h) Income recognitionAll 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 defi ned 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 specifi c purpose grants and the proceeds from the sale of assets.

Output appropriationRevenue from the outputs the Department provides to Government is recognised when those outputs have been delivered and the relevant Minister has certifi ed delivery of those outputs in accordance with specifi ed performance criteria.

Resources received free of charge or for nominal considerationContributions of resources received free of charge or for nominal consideration are recognised at their fair value when the contributed asset qualifi es 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 revenueAmounts 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 Department’s major activities as follows:

• Trust revenue Trust revenue received for a specifi c 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-fi nance 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 incomeOther 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 • 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) ExpensesGrants 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 benefi tsEmployee benefi ts 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 defi ned benefi t plans




Defi ned benefi ts superannuation plansThe amount charged to the operating statement in respect of defi ned benefi t 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 defi ned benefi t liability or surplus of most Victorian government employees in such funds.

DepreciationDepreciation 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.

AmortisationIntangible assets with fi nite 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 fi nite 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 considerationResources 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 CostsFinance costs are recognised as expenses in the period in which they are incurred and mainly relate to fi nance lease charges.

Impairment of assetsIntangible assets with indefi nite 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:

• fi nancial 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 benefi ts arising from the use of the asset will be replaced unless a specifi c decision to the contrary has been made. Recoverable amount for assets held primarily to generate net cash infl ows is measured at the higher of the present value of future cash fl ows expected to be obtained from the asset and fair value less costs to sell.

Supplies and servicesSupplies 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.




(j) AssetsAll non current assets, including Crown Land, controlled by the Department are reported in the balance sheet.

Cash and cash equivalentsCash 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 insignifi cant risk of changes in value.

ReceivablesReceivables 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 identifi ed.

Intangible assetsIntangible assets represent identifi able non-monetary assets without physical substance.

Intangible assets are initially recognised at cost. Subsequently, intangible assets with fi nite 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 benefi ts will fl ow to the Department.

Research and development costsExpenditure 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 benefi ts; (e) the availability of adequate technical, fi nancial 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:

• Capitalised software development costs 4 years (2006 - 4 years).

Property, plant and equipmentLand 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 assetsNon-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 fi ve years, based upon the asset’s Government Purpose Classifi cation. 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.



Non-current assets held for sale Non-current assets (and disposal group) classifi ed 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 classifi ed 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 asset’s sale (or disposal group sale) is expected to be completed within one year from the date of classifi cation.

Non-current assets constructed by the DepartmentThe 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 fi xed overheads.

Leased assetsLeases of property, plant and equipment are classifi ed as fi nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classifi ed 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 fi nance 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 benefi ts 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) LiabilitiesPayablesPayables 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 fi nancial 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 liabilitiesInterest 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 profi t and loss over the period of the interest bearing liability using the effective interest rate method.

ProvisionsProvisions are recognised when the Department has a present obligation, the future sacrifi ce of economic benefi ts 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 cashfl ows estimated to settle the present obligation, its carrying amount is the present value of those cashfl ows

When some or all of the economic benefi ts 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 benefi ts (i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefi ts, annual leave and accumulating sick leave expected

to be settled within 12 months of the reporting date are recognised in the provision for employee benefi ts in respect of employee services up to the reporting date, classifi ed 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 benefi ts 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.





(ii) Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefi ts.

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 benefi ts on-costs Employee benefi ts 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 benefi ts.

(l) CommitmentsCommitments 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 liabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifi able, are measured at nominal value.

(n) EquityContributions by ownersFor 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 fl ow statementFor the purposes of the cash fl ow 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 insignifi cant risk of changes in value.

(p) Foreign currencyAll foreign currency transactions during the fi nancial 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. Non-monetary 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 profi t or loss in the period in which they arise.

(q) Functional and presentation currencyThe functional currency of the Department is the Australian dollar, which has also been identifi ed as the presentation currency of this Department.

(r) Rounding of amounts Amounts in the fi nancial report have been rounded to the nearest thousand dollars, unless otherwise stated.

(s) New accounting standards and interpretationsCertain 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 fi nancial years ending 30 June 2007. The Department has not, and does not intend to, adopt these standards early.



Standard/Interpretation Summary Applicable for annual reporting periods beginning or ending on

Impact on departmental fi nancial 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 fi nancial statements. However, the amendments will result in changes to the fi nancial instrument disclosures included in the departmental fi nancial 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 specifi c requirements from AASB101, including the Australian illustrative formats of the income statement, balance sheet and statement of changes in equity which entities were previously ‘encouraged’ to adopt in preparing their fi nancial statements

Beginning 1 Jan 2007 Impact on presentation not expected to be signifi cant.

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 fi nancial asset carried at cost, that impairment should not be reversed in subsequent interim fi nancial statements nor in annual fi nancial statements.

Beginning 1 Nov 2006 The Department does not publish interim fi nancial 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 fi nancial statements.




Standard/Interpretation Summary Applicable for annual reporting periods beginning or ending on

Impact on departmental fi nancial 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 signifi cant.

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 reclassifi ed. At this stage, the fi nancial impact is unknown as it depends on whether there are arrangements being reclassifi ed.

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 profi t.

Beginning 1 Jan 2008 The Department is not an operator of service concession, so there will be no impact on disclosures.




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 AttractionDescription of OutputThe 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, signifi cant contributions are made from across the Department.

ObjectivesThis output makes a signifi cant 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 DevelopmentDescription of OutputThe primary strategic objective of this output is to work with the business sector and other key partners to encourage exports. The Offi ce of International Business and Export plays a leading role in the delivery of this output with contributions from across the Department.

ObjectivesThese output make a signifi cant contribution to the achievement of the following key Government outcomes:


This is achieved by assisting fi rms, 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 IndustriesDescription of OutputsThe 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 specifi c contributions from the Innovation Economy Advisory Board, Business Development, Industrial Relations Victoria, Business Services and the Small Business Commissioner.

ObjectivesThese outputs make a signifi cant 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 DevelopmentDescription of OutputsThe 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.

ObjectivesThese outputs make a signifi cant 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, confi dent 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



NOTE 2.DEPARTMENTAL OUTPUTS (continued)

Marketing VictoriaDescription of OutputThe 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 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 benefi ts and maximises the dissemination of tourism information about Victoria through online channels.

Changes in OutputsIn 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 ProgramsDescription of OutputThe 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.


• more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria.; and • sound fi nancial 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 EducationDescription of OutputThe 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.


• 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 LtdThe 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.




Table continues on page 20

Schedule A - controlled income and expenses for the year ended 30 June 2007

Investment AttractionDeveloping Innovative

Industries (i)Trade Development Marketing Victoria

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Income

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 10 914 868

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

Expenses

Grants and other payments (60,996) (33,036) (122,358) (156,365) (2,535) (4,199) (43,557) (40,127)

Employee benefi ts (8,747) (8,671) (31,442) (27,512) (2,403) (2,256) (972) (1,024)

Depreciation and amortisation (580) (407) (1,634) (955) (157) (99) (455) (274)

Resources provided free of charge or for nominal consideration - - 15 - - - -

Capital asset charge (323) (583) (2,857) (2,526) (78) (58) (226) (296)

Supplies and services (8,125) (6,860) (41,293) (33,821) (2,683) (4,192) (10,173) (7,836)

Finance costs (9) (4) (53) (34) (5) (3) (5) (4)

Impairment of assets - (836) - (4,148) - (342) - (739)

Total expenses (78,780) (50,397) (199,622) (225,361) (7,861) (11,149) (55,388) (50,300)

Share of net profi ts/(losses) of associates and joint ventures accounted using the equity method - - - - - - - -

Net Result for the Reporting Period (4,052) (3,292) 4,795 (2,125) 1,579 125 (188) (3,449)

(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.




Table continued from page 19

Schedule A - controlled income and expenses for the year ended 30 June 2007 (continued)

Regional DevelopmentTraining 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

Income

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

Resources received free of charge or for nominal consideration - - (1,883) - - - (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

Expenses

Grants and other payments (99,638) (55,610) (373,349) - (12,054) - (714,487) (289,337)

Employee benefi ts (12,316) (10,629) - - (2,013) - (57,893) (50,092)

Depreciation and amortisation (870) (515) (30) -

(28) -

(3,754) (2,250)

Resources provided free of charge or for nominal consideration - - - - - 15 -

Capital asset charge (505) (328) (80,729) - (17) - (84,735) (3,791)

Supplies and services (10,329) (10,663) (4,624) - (2,334) - (79,561) (63,372)

Finance costs (57) (38) - - (2) - (131) (83)

Impairment of assets - (2,395) - - - - - (8,460)

Total expenses (123,715) (80,178) (458,732) - (16,448) - (940,546) (417,385)

Share of net profi ts/(losses) of associates and joint ventures accounted using the equity method - - - - - - - -

Net Result for the Reporting Period 33,311 17,085 63

- 325

- 35,833 8,344

(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.



Schedule B - items of controlled income and expense recognised directly in equity for the year ended 30 June 2007



2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Gain/(loss) on property revaluation 524 - 1,536 - - - - -

524 - 1,536 - - - - -



Departmental Total

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Gain/(loss) on property revaluation - - - - - - 2,060 -

- - - - - - 2,060 -






Schedule C - controlled assets and liabilities as at 30 June 2007



2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Assets

Current Assets 22,058 14,120 141,600 53,190 5,701 3,151 19,778 20,334

Non-Current Assets 7,966 7,232 193,136 178,262 903 872 4,076 3,808

Total Assets 30,024 21,352 334,736 231,452 6,604 4,023 23,854 24,142

Liabilities

Current Liabilities (6,223) (4,984) (92,676) (21,157) (2,006) (1,452) (8,815) (7,038)

Non-Current Liabilities (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



Departmental Total

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Assets

Current Assets 133,092 77,278 9,713 - 3,152 - 335,094 168,073

Non-Current Assets 5,940 5,747 307 - 127 - 212,455 195,921

Total Assets 139,032 83,025 10,020 - 3,279 - 547,549 363,994

Liabilities

Current Liabilities (10,898) (9,910) (9,204) - (3,476) - (133,298) (44,541)

Non-Current Liabilities (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






NOTE 3.INCOME

2007$’000

2006$’000

(a) Revenue from Government

Output appropriations:

Output appropriations from continuing operations 879,717 384,738

Regional Infrastructure Development Fund appropriations 92,000 35,000

971,717 419,738

Resources received free of charge or for nominal consideration:

Resources received free of charge or for nominal consideration from continuing operations (1,883) 113

(1,883) 113

Total revenue from Government 969,834 419,851

(b) Other revenue

Trust Revenue 5,933 5,078

Other Revenue 854 842

Total other revenue 6,787 5,920

(c) Other income

Gain/(loss) on disposal of property, plant and equipment (242) (42)

Total other income (242) (42)



NOTE 4.EXPENSES

2007$’000

2006$’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 Bushfi re 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) (902)

Workplace Rights Advocate (675) (568)

Victorian Endowment for Science, knowledge and Innovation program (433) (433)

Better Supply Chain Links (245) (1,088)

Synchrotron (214) (242)

Confucius Institute (200) -

Better Work and Family Balance (158) (139)

Total grants and other payments (714,487) (289,337)

(b) Employee benefi ts

Termination benefi ts - (459)

Salaries and wages (57,893) (49,633)

Total employee benefi ts (57,893) (50,092)

(c) Depreciation and amortisation

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)



NOTE 4.EXPENSES (continued)

2007$’000

2006$’000

(d) 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 offi ce 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)

Other expenses (871) 369

Total supplies and services (79,561) (63,372)

(e) Finance costs

Finance lease costs (131) (83)

Total fi nance costs (131) (83)



NOTE 5.RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS

In December 2006 the Government issued an administrative order restructuring certain of its activities via machinery-of-government 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

Output: ICT Policy and Programs

Assets

Receivables 4,185 -

Property, plant and equipment 296 -

Liabilities

Interest bearing liabilities (79) -

Provisions (1,338) -

Net assets recognised at the date of transfer 3,064 -

Net capital contribution from the Crown 3,064 -



NOTE 5.RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS (continued)

2007$’000

2006$’000

Output: Training and Further Education

Assets

Receivables 1,556 -


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) -

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

2007$’000

2006$’000

Output: Part Science Technology and Innovation Output Related to Energy Technologies Innovation Strategy

Assets

Receivables 83 -


Liabilities

Provisions (100) -

Net assets transferred (15) -

Net assets given free of charge (15) -



NOTE 6.RECEIVABLES

2007$’000

2006$’000

Current receivables

Amounts owing from Victorian Government (i) 53,664 33,614

Other receivables (ii) 15,323 5,494

Provision for doubtful debts (ii) - -

68,987 39,108

GST input tax credit receivable 5,606 4,975

Total current receivables 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

Current

Prepayments 743 205

743 205

Non Current

Interest in Joint Venture (i) - 15,000

- 15,000

(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 fi nancial year, the balance has been reclassifi ed as an investment accounted for using the equity method (refer Note 10).



NOTE 8.PROPERTY, PLANT AND EQUIPMENT

Classifi cation 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

Land

Crown land - fair value (2007 valuation) - - 10,115 8,580 10,115 8,580

- - 10,115 8,580 10,115 8,580

Buildings

Building leasehold - at fair value (2007 valuation) - - 4,248 3,819 4,248 3,819

Less: Accumulated amortisation - - - (57) - (57)

- - 4,248 3,762 4,248 3,762

Leasehold improvements - at cost 59 59 24,499 2,545 24,558 2,604

Less: Accumulated amortisation (25) (18) (2,895) (1,155) (2,920) (1,173)

34 41 21,604 1,390 21,638 1,431

Total land and buildings 34 41 35,967 13,732 36,001 13,773

Plant and equipment

At cost 55 52 11,599 14,492 11,654 14,544

Less: Accumulated depreciation (46) (38) (8,487) (11,723) (8,533) (11,761)

9 14 3,112 2,769 3,121 2,783

Plant and equipment under fi nance 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 9 14 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

Total property, plant and equipment 43 55 195,976 179,501 196,019 179,556

(i) Property, plant and equipment are classifi ed primarily by the ‘purpose’ for which the assets are used, according to one of fi ve ‘Purpose Groups’ based upon Government Purpose Classifi cations (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 classifi ed as a separate class of asset for fi nancial 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 Offi ce Development (2006 - $5.0 million), which has transferred to the buildings leasehold during the current fi nancial year.

It is intended that the carrying value of the Synchrotron asset will be transferred during the next fi nancial year to the Australian Synchrotron Holding Company which was established on 13 July 2007 to own the new facility.



NOTE 8.PROPERTY, PLANT AND EQUIPMENT (continued)

Classifi cation by ‘Public Safety and Environment’ Purpose Group - Movements in carrying amounts

Buildings Leasehold Improvements

Plant and Equipment Total

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Opening balance 41 - 14 - 55 -

Additions - - 3 - 3 -

Disposals - - - - - -

Acquisitions through administrative restructures - - - - - -

Transfers to classifi ed as held for sale - - - - - -

Net revaluation increments/decrements - - - - - -

Depreciation/amortisation expense (7) (7) (8) (8) (15) (15)

Impairment loss - - - - - -

Received/given free of charge - 48 - 22 - 70

Transfers between classes - - - - - -

Closing balance 34 41 9 14 43 55




Classifi cation by ‘Public Admin’ Purpose Group - Movements in carrying amounts

Crown Land at Fair Value

Leasehold Improvements

Buildings Leasehold Plant and Equipment

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Opening balance 8,580 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 classifi ed as held for sale

- - - - - - - -

Net revaluation increments/decrements

1,535 - - - 525 - - -

Depreciation/amortisation expense

- - (1,755) (554) (39) (38) (1,478) (1,405)

Impairment loss - - - (754) - - - -

Received/given free of charge - - - - - - - -

Transfers between classes - - 19,090 (3) - - - 3

Closing balance 10,115 8,580 21,604 1,390 4,248 3,762 3,112 2,769

Leased Plant and Equipment

In Course of Construction

Total

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Opening balance 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 classifi ed as held for sale (57) (35) - - (57) (35)

Net revaluation increments/decrements - - - - 2,060 -

Depreciation/amortisation expense (467) (238) - - (3,739) (2,235)

Impairment loss - - - (6,106) - (6,860)

Received/given free of charge 81 81 -

Transfers between classes - - (19,090) - - -

Closing balance 2,352 1,820 154,545 161,180 195,976 179,501




The following useful lives of assets are used in the calculation of depreciation and amortisation:

2007Years

2006Years

Buildings leasehold 150 150

Leasehold improvements 8 to 15 8 to 10

Plant and equipment 5 to 10 5 to 10

Leased plant and equipment 1 to 3 1 to 3

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

2007$’000

2006$’000

Buildings leasehold 39 38

Leasehold improvements 1,762 561

Plant and equipment 1,486 1,413

Leased plant and equipment 467 238

3,754 2,250

Crown land and buildings carried at fair valueAn 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.



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

Non-current assets

Leased Plant and Equipment held for sale (i) 57 35

Total non-current assets classifi ed as held for sale 57 35

Liabilities

Finance lease liabilities 58 34

Total liabilities associated with assets classifi ed as held for sale 58 34

(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

2007$’000

2006$’000

Investments in jointly controlled entities 15,000 -

15,000 -

Name of entity Principal Activity Country of IncorporationOwnership Interest % (i)

2007 2006

Joint Ventures

Australian Regenerative Medicine Institute (ARMI).

To construct and operate a regenerative medical research facility.

Unincorporated (Australia)

45 -

(i) 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.



Summarised fi nancial information of jointly controlled entitiesAt 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 -

Total assets 15,000 -

Current liabilities - -

Non-current liabilities - -

Total liabilities - -

Net assets 15,000 -

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

Total income - -

Net result - -

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.

NOTE 10.INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)

Dividends received from joint venturesDuring the year, the Department did not received any dividends from its jointly controlled entities (2006 - $0).

Contingent liabilities and capital commitmentsThe 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 - 6

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.



NOTE 13.INTEREST BEARING LIABILITIES

2007$’000

2006$’000

Current

Amounts payable to other government agencies (i) 62,652 4,180

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 12.PAYABLES

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) 1,199 1,060

1,199 1,060

2,370 1,832

(i) Secured by the assets leased.

NOTE 14.PROVISIONS

2007$000

2006$000

Current

Employee benefi ts

Annual leave entitlements 4,969 3,709

Long service leave entitlements 12,890 8,889

Other entitlements 472 474

Total current provisions 18,331 13,072

Non-current

Employee benefi ts

Long service leave entitlements 1,705 1,415

Total non-current provisions 1,705 1,415



Employees of the Department are entitled to receive superannuation benefi ts and the Department contributes to both defi ned benefi t and defi ned contribution plans. The defi ned benefi t plan(s) provides benefi ts based on years service and fi nal average salary.

The Department does not recognise any defi ned benefi t liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefi ts relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defi ned benefi t liabilities in its fi nancial report.

However, superannuation contributions for the reporting period are included as part of the employee benefi ts 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:

Fund

Contribution for the year Contribution outstanding at year end

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 - -

Total 4,795 4,286 - -

NOTE 15.SUPERANNUATION



NOTE 16.LEASES

Finance leasesLeasing arrangementsFinance 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

Minimum future lease paymentsPresent value of 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

Longer than 5 years - - - -

Minimum lease payments (i) 2,557 1,991 2,370 1,832

Less future fi nance charges (187) (159) - -

Present value of minimum lease payments 2,370 1,832 2,370 1,832

Included in the fi nancial 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.

2007$000

2006$000

Non-cancellable operating leases

Not longer than 1 year 10,014 8,075

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

Operating leasesLeasing arrangementsOperating 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.



NOTE 17.COMMITMENTS FOR EXPENDITURE

2007$000

2006$000

(a) Capital expenditure commitments

Buildings


Longer than 1 year and not longer than 5 years 5,725 -

Longer than 5 years - -

11,421 17,873

Department’s share of jointly controlled entity’s capital expenditure commitments:


Longer than 1 year and not longer than 5 years 10,000 15,000


20,000 20,000

(b) Lease commitments

Finance lease liabilities and non-cancellable operating lease commitments are disclosed in note 16 to the fi nancial 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:


Longer than 1 year and not longer than 5 years 735 770


5,320 2,726

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:


Long than 1 year and not longer than 5 years 191,203 155,456

Longer than 5 years 4,000 5,300

348,131 313,299



Melbourne Exhibition and Convention Centre Development ProjectIn 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 infl ation, 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 fi xed 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 infl ation, 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 Net present value (i)

2007$000

2006$000

2007$000

2006$000

Not longer than 1 year - - - -


Longer than 5 years 1,084,095 1,084,095 312,985 312,985

Total value of expected future commitments 1,201,682 1,201,682 369,919 369,919

(i) The net present value is calculated using a discount rate of 8.14% per annum and an infl ation rate of 2.5% per annum.

NOTE 17.COMMITMENTS FOR EXPENDITURE (continue)

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

Indexed nominal value Net present value (i)

2007$000

2006$000

2007$000

2006$000

Not longer than 1 year - - - -


Longer than 5 years 436,568 436,568 126,040 126,040

Total value of expected future commitments 483,920 483,920 148,968 148,968

(i) The net present value is calculated using a discount rate of 8.14% per annum and an infl ation rate of 2.5% per annum.



NOTE 18.CONTINGENT ASSETS AND CONTINGENT LIABILITIES

Note 2007

$0002006$000

Contingent asset

Loan for bridge construction - MECC Development Project (i) 14,000 14,000

14,000 14,000

Contingent liabilities

Underground water contamination - TV and Film Studio (ii) 2,000 2,000

Debt facility (iii) 11,000 14,500

Payment for bridge construction - MECC Development Project 14,000 14,000

Share of associate’s/jointly controlled entity’s contingent liabilities - -

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.

Unquantifi able Contingent liabilitiesIn 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.



NOTE 19.FINANCIAL INSTRUMENTS

(a) Financial risk management objectivesThe Department’s activities expose it primarily to the fi nancial risks of changes in foreign currency exchange rates, and interest rates. The Department does not enter into derivative fi nancial instruments to manage its exposure to interest rate and foreign currency risk.

The Department does not enter into or trade fi nancial instruments, including derivative fi nancial instruments, for speculative purposes.

The policies for managing these risks are discussed in more detail below.

(b) Signifi cant accounting policiesDetails of the signifi cant 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 fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 1 of the fi nancial statements.

(c) Interest rate riskThe Department’s exposure to interest rate risk is as follows:

2007

Weighted average effective interest

rate%

Variable interest

rate $’000

Maturity dates

Non-interest bearing $’000

Total$’000

Less than 1 year $’000

1 - 2 years $’000

2 - 3 years

3 - 4 years

Over 4 years $’000

Financial assets

Cash and cash equivalents - - 50,000 - - - - 209,701 259,701

Investments 6.27 - 50,000 - - - - - 50,000

Trade and other receivables - - - - - - - 76,029 76,029

- 100,000 - - - - 285,730 385,730

Financial liabilities

Payables - - - - - - - 103,738 103,738

Finance Lease Liabilities 6.78 - 1,171 856 343 - - - 2,370

- 1,171 856 343 - - 103,738 106,108

2006

Weighted average effective interest

rate%

Variable interest

rate $’000

Maturity dates

Non-interest bearing $’000

Total$’000

Less than 1 year $’000

1 - 2 years $’000

2 - 3 years

3 - 4 years

Over 4 years $’000

Financial assets

Cash and cash equivalents - - - - - - - 123,750 123,750

Trade and other receivables - - - - - - - 45,448 45,448

- - - - - - 169,198 169,198

Financial liabilities

Payables - - - - - - - 30,663 30,663

Finance Lease Liabilities 6.35 - 772 598 462 - - - 1,832

- 772 598 462 - - 30,663 32,495



NOTE 19.FINANCIAL INSTRUMENTS (continued)

(d) Credit riskCredit risk refers to the risk that a counterparty will default on its contractual obligations resulting in fi nancial loss to the Department. The Department has adopted a policy of only dealing with creditworthy counterparties and obtaining suffi cient collateral where appropriate, as a means of mitigating the risk of fi nancial loss from defaults. The Department measures credit risk on a fair value basis.

The Department does not have any signifi cant 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 credit-ratings assigned by international credit-rating agencies.

The carrying amount of fi nancial assets recorded in the fi nancial 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 ValueManagement consider that the carrying amount of fi nancial assets and fi nancial liabilities recorded in the fi nancial statements approximates their fair values.

The fair values and net fair values of fi nancial assets and fi nancial liabilities are determined as follows:

• the fair value of fi nancial assets and fi nancial 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 fi nancial assets and fi nancial liabilities are determined in accordance with generally accepted pricing models based on discounted cash fl ow analysis.

Fair value is estimated using a discounted cash fl ow model, which includes some assumptions that are not supportable by observable market prices or rates. Changes in these assumptions do not signifi cantly change the fair value recognised.

The Department considers that the carrying amount of fi nancial assets and fi nancial liabilities recorded in the fi nancial statements approximates their fair values.

NOTE 20.CASH FLOW INFORMATION

(a) Reconciliation of cashFor 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 fi nancial year as shown in the Cash Flow Statements is reconciled to the related items in the balance sheet as follows:

2007$000

2006$000

Cash and cash equivalents disclosed in the balance sheet (i) (44) 153

Investments (ii) 50,000 -

Funds held in trust (Note 26(b)) 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 fi nance 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.



NOTE 20.CASH FLOW INFORMATION (CONTINUED)

(b) Non cash fi nancing and investing activities

2007$000

2006$000

Restructuring of administrative arrangements (i) 3,064 -

Acquisition of plant and equipment by way of fi nance lease 954 1,423

4,018 1,423 (i) 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 refl ected in the cash fl ow statement.

(c) Reconciliation of net result for the period to net cash fl ows from operating activities

2007$000

2006$000

Net result for the reporting period 35,833 8,344

Non-cash movements:

Gain/(loss) on sale or disposal of non-current assets 180 8,298

Depreciation and amortisation 3,754 2,250

Provision for doubtful debts - -

Impairment of non-current assets - -

Resources provided free of charge or for nominal consideration 1,868 -

Other non-cash items (4) (70)

Movements in assets and liabilities

(Increase)/decrease in current receivables (30,475) (11,272)

(Increase)/decrease in other current assets (567) (987)

(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

Increase/(decrease) in non current provisions 84 (9,313)

Net cash fl ows from/(used in) operating activities 87,290 16,526



NOTE 21.MOVEMENTS IN EQUITY

2007$000

2006$000

(a) Reserves

Asset revaluations 6,142 4,082

6,142 4,082

Asset revaluation reserve (i)

Balance at beginning of fi nancial year 4,082 4,082

Revaluation increment/(decrements) 2,060 -

Share of increments in reserve attributable to jointly controlled entities - -

Balance at end of fi nancial year 6,142 4,082

(b) Contributions by Owners

Balance at beginning of the fi nancial year 198,980 138,371

Capital transactions with the State in its capacity as owner arising from:

Appropriations 13,439 60,609

Withdrawal of equity (ii) (27) -

Net capital contributions upon restructure (Note 5) 3,064 -

16,476 60,609


(c) Accumulated surplus

Balance at beginning of the fi nancial year 113,916 105,572

Net result 35,833 8,344


(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.



NOTE 22.ADMINISTERED ITEMS

Table continues on page 46



2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Administered income

Sale of goods and services (12) 3 (46) 17 (4) - (12) -

Interest Income - - (1,248) - - - - -

Commonwealth grants - - - - (65) 177 - -

Other grants - - - - - - (5,000) -

Total administered income (12) 3 (1,294) 17 (69) 177 (5,012) -

Administered expenses

Payments into the Consolidated Fund 13 (13) 1,174 (58) 4 (180) 4,509 (93,221)

Doubtful debts - - (326) 1,431 - - - -

Interest expense - - - - - - - -

Other Expenses - (5) - (21) - (1) - -

Total expenses 13 (18) 848 1,352 4 (181) 4,509 (93,221)

Administered assets

Receivables (1) - 13,823 14,050 - - (1) -

Loans - - 32,026 30,789 - - - -

Trust funds (6) - (35) (105) (3) - (7) -

Total administered assets (7) - 45,814 44,734 (3) - (8) -

Administered Liabilities

Creditors and Accruals (1) - (5) - - - - -

Unearned Income (iv) - - - - - - (93,221) (93,221)

Total administered liabilities (1) - (5) - - - (93,221) (93,221)


(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.

In addition to the specifi c Departmental operations which are included in the balance sheet, operating statement and cash fl ow 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 fi nes and the proceeds from the sale of administered surplus land and buildings. Administered assets include Government revenues earned but yet to be collected.



Table continued from page 45



Departmental Total

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

2007$’000

2006$’000

Administered income

Sale of goods and services (26) 2 - - - - (100) 22

Interest Income - - - - - - (1,248) -

Commonwealth grants - - - - - - (65) 177

Other grants - - - - - - (5,000) -

Total administered income (26) 2 - - - - (6,413) 199


Payments into the Consolidated Fund 28 (18)

-

-

-

- 5,728 (93,490)

Doubtful debts - - - - - - (326) 1,431

Interest expense - - - - - - - -

Other Expenses - (5) - - - - - (32)

Total expenses 28 (23) - - - - 5,402 (92,091)

Administered assets

Receivables (1) - - - - - 13,820 14,050

Loans - - - - - - 32,026 30,789

Trust funds (23) - - - - - (74) (105)

Total administered assets (24) - - - - - 45,772 44,734

Administered Liabilities

Creditors and Accruals (3) - - - - - (9) -

Unearned Income (iv) - - - - - - (93,221) (93,221)

Total administered liabilities (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.

NOTE 22.ADMINISTERED ITEMS (continued)



NO

TE

23.

SUM

MA

RY O

F C

OM

PLIA

NC

E W

ITH

AN

NU

AL

PAR

LIA

ME

NTA

RY A

PPR

OPR

IAT

ION

S

The

follo

win

g ta

ble

disc

lose

s th

e de

tails

of t

he v

ario

us p

arlia

men

tary

app

ropr

iatio

ns re

ceiv

ed b

y th

e D

epar

tmen

t for

the

year

. In

acc

orda

nce

with

Acc

rual

Out

put-b

ased

Man

agem

ent p

roce

dure

s ‘P

rovi

sion

for o

utpu

ts’ a

nd ‘A

dditi

ons

to n

et a

sset

s’ a

re

disc

lose

d as

‘con

trolle

d’ a

ctiv

ities

of t

he D

epar

tmen

t. A

dmin

iste

red

trans

actio

ns a

re th

ose

that

are

und

erta

ken

on b

ehal

f of t

he

Sta

te o

ver w

hich

the

Dep

artm

ent h

as n

o co

ntro

l or d

iscr

etio

n.

App

ropr

iatio

n A

ctFi

nanc

ial M

anag

emen

t Act

199

4A

dmin

istra

tive

Arr

ange

men

ts A

ct

1983

Annu

al A

ppro

pria

tion

Adv

ance

from

Tr

easu

rer

Sect

ion

3(2)

Se

ctio

n 29

Se

ctio

n 30

Sect

ion

32Se

ctio

n 35

Adm

inist

rativ

e Ar

rang

emen

ts O

rder

Tota

l Par

liam

enta

ry

Auth

ority

Appr

opria

tions

App

lied

Varia

nce

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

2007

$000

2006

$000

Co

ntr

olle

d

Pro

visi

on o

f ou

tput

s33

1,138

23

9,08

5 78

,207

-

- -

65

177

1,64

0 5,

273

7,970

43

,460

16

,666

10

4,73

6 48

2,66

5 -

918,

351

392,

731

879,

717

384,

738

38,6

34

7,993

Add

ition

s to

ne

t ass

ets

14,5

63

140,

737

- -

- -

- -

(1,6

40)

(5,2

73)

7,180

26

,745

-15

,000

1,

300

-21

,403

17

7,20

9 13

,439

60

,609

7,9

64

116,

600

Reg

iona

l In

frast

ruct

ure

Dev

elop

men

t Fun

d92

,000

35

,000

-

- -

- -

- -

- -

- -

- -

-92

,000

35

,000

92

,000

35

,000

-

-

Ad

min

iste

red

Pay

men

ts m

ade

on

beha

lf of

the

Sta

te -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Tota

l43

7,70

1 41

4,82

2 78

,207

-

- -

65

177

- -

15,1

50

70,2

05

16,6

66

119,

736

483,

965

-1,

031,

754

604,

940

985,

156

480,

347

46,5

98

124,

593

(i)

The

varia

nce

is p

rimar

ily re

late

d to

the

agre

ed c

hang

es to

cas

h fl o

ws

for c

omm

itted

pro

ject

s to

be

deliv

ered

in th

e ne

xt fi

nanc

ial y

ear.

(ii)

The

varia

nce

for t

he fi

nanc

ial y

ear e

nded

30

June

200

6 is

prim

arily

rela

ted

to th

e M

elbo

urne

Exh

ibiti

on a

nd C

onve

ntio

n C

entre

(MEC

C) d

evel

opm

ent p

roje

ct b

eing

del

iver

ed a

s a

Part

ners

hips

Vic

toria

pro

ject

. Acc

ordi

ngly

, the

D

epar

tmen

t did

not

requ

ire th

e as

soci

ated

Add

ition

s to

net

ass

ets

fund

ing

of $

109.

4 m

illio

n du

ring

the

year

. Com

men

cing

in 2

008/

09, t

he D

epar

tmen

t will

rece

ive

an o

utpu

t app

ropr

iatio

n to

mee

t the

futu

re e

xpen

ditu

re c

omm

itmen

ts

asso

ciat

ed w

ith th

e pr

ojec

t (re

fer N

ote

17).



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

Commonwealth Specifi c Purpose Payments

Net Appropriation Agreement - Tradestart 65 177

65 177



NOTE 26.TRUST ACCOUNT BALANCES

(a) Net asset trust balancesThe 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.

2007Opening Balance

$’000Revenue

$’000Expense

$’000Closing Balance

$’000

Department Working Trust Account

Coode Island Remediation Fund - - - -

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 Offi ce 916 200 (476) 640

Youth Employment Scheme 225 1 (85) 141

Infrastructure Precincts 314 - - 314

Recoup trusts 101 - - 101

Business Sustainability 48 - - 48

Melbourne Major Events 440 1,055 (1,198) 297

Real Estate Agents Guarantee Fund 1,033 (17) (909) 107

Energy Technology Innovation Strategy 99 - (99) -

Werribee Project 103 - - 103

Australian Technology Showcase 6 - - 6

Centre for Energy and Greenhouse Technologies 41 - (41) -

Dubai Education and Health Development Manager Trust 35

- (35) -

AAV Communique Trust 27 - (27) -

COMS 2007 Conference 19 - (17) 2

National Manufacturing Forum 185 119 (304) -

STI Awareness 6 60 (66) -

ICT Skills - - (57) (57)

Project Funds - - (17) (17)

Reducing the Regulatory Burden - 450 450

Melbourne 50 Years On - 152 (138) 14

Ezybiz - 699 (402) 297

Greening Our Automotive Industry - 300 - 300

Data Centre Consolidation - 225 (225) -

Commonwealth Trust Account

Business Licensing Project 89 - (89) -

Business Licence Centre 46 - (46) -

Regional Infrastructure Development Fund 114,887 100,634 (63,303) 152,218

Revenue Clearing Account 438 12 - 450

Australian Synchrotron Contributions Fund - 44,500 - 44,500

Treasury Trust 102 102 (141) 63

125,703 150,462 (70,033) 206,132



NOTE 26.TRUST ACCOUNT BALANCES (continued)

2006Opening Balance

$’000Revenue

$’000Expense

$’000Closing Balance

$’000

Department Working Trust Account

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 1,195 - (196) 999

E-Commerce Program Trust 627 - (30) 597

Victorian Government Business Offi ce 300 616 - 916

Youth Employment Scheme 269 26 (70) 225

ALCOA IDC 260 - (260) -

Infrastructure Precincts 250 64 - 314

Recoup trusts 146 50 (95) 101

Business Sustainability 134 - (86) 48

Melbourne Major Events 125 930 (615) 440

Real Estate Agents Guarantee Fund 112 1,661 (740) 1,033

Energy Technology Innovation Strategy 99 - - 99

Werribee Project 93 10 - 103

Australian Technology Showcase 61 - (55) 6

Small Business Victoria Special Projects 61 - (61) -

Centre for Energy and Greenhouse Technologies 41 - - 41

Dubai Education and Health Development Manager Trust 35

-

- 35

AAV Communique Trust 27 - - 27

Premiers Food Victoria Awards 11 - (11) -

COMS 2007 Conference - 47 (28) 19

National Manufacturing Forum - 196 (11) 185

STI Awareness - 60 (54) 6

Commonwealth Trust Account

Business Licensing Project 89 - - 89

Business Licence Centre 46 - - 46

Regional Infrastructure Development Fund 100,136 60,570 (45,819) 114,887

Revenue Clearing Account 438 - - 438

Treasury Trust 367 2 (267) 102

111,918 67,318 (53,533) 125,703



NOTE 26.TRUST ACCOUNT BALANCES (continued)

(b) Trust Account cash balancesThe following is a list of cash held in trust account balances relating to trusts controlled and administered by the Department.

2007$’000

2006$’000

(i) Controlled trusts

Department Working Trust Account 11,720 8,436

Commonwealth Trust Account - 136

Regional Infrastructure Development Fund 152,903 114,418

Treasury Trust Account 172 102

Revenue Clearing Account 450 505

Australian Synchrotron Contributions Fund 44,500 -

Total controlled trusts (Note 20(a)) 209,745 123,597

(ii) Administered trusts

Public Service Commuters Club Trust (74) (105)

Total administered trusts (Note 22) (74) (105)

The Department portion of the Public Service Commuter Club Trust is temporarily in defi cit 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 2007The 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 fi nancial year.



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.

NamesThe 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 fi nancial balances do not transfer until 1 January 2007 (refer Note 5).

RemunerationRemuneration received or receivable by the Accountable Offi cers 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 fi nancial statements of the Department of Premier and Cabinet.

NOTE 28.REMUNERATION OF AUDITORS

2007

$’000

2006

$’000

Victorian Auditor General’s Offi ce

Audit or review of the fi nancial report 113 113 113 113



NOTE 29.REMUNERATION OF EXECUTIVES

The numbers of executive offi cers, other than Ministers and the Accountable Offi cers, and their total remuneration during the reporting period are shown in the fi rst two columns in the table below in their relevant income bands. The base remuneration of executive offi cers is shown in the third and fourth columns. Base remuneration of executive offi cers is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefi ts.

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 offi cers retired, resigned or were retrenched in the past year. This has had a signifi cant impact on total remuneration fi gures 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.

Income Band

Total Remuneration Base Remuneration

2007No.

2006No.

2007No.

2006No.

$0 - $9,999 - - - -

$100,000 - 109,999 - 1 1 1

$110,000 - 119,999 1 2 - 2

$120,000 - 129,999 3 3 3 4

$130,000 - 139,999 5 3 9 6

$140,000 - 149,999 8 5 8 3

$150,000 - 159,999 4 2 4 3

$160,000 - 169,999 6 4 4 3

$170,000 - 179,999 2 2 5 2

$180,000 - 189,999 3 1 1 1

$190,000 - 199,999 3 1 1 2

$200,000 - 209,999 2 3 2 2

$210,000 - 219,999 1 1 1 1

$220,000 - 229,999 1 2 - -

$230,000 - 239,999 1 - 3 1

$240,000 - 249,999 - 1 - -

$250,000 - 259,999 2 - - -

Total numbers 42 31 42 31

Total amount ($’000) 6,020 5,054 5,728 4,824


We certify that the attached fi nancial 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 fi nancial statements, presents fairly the fi nancial transactions during the year ended 30 June 2007 and fi nancial position of the Department as at 30 June 2007.

We are not aware of any circumstance which would render any particulars included in the fi nancial statements to be misleading or inaccurate.

W. HodgsonSecretaryDepartment of Innovation, Industry and Regional Development

Melbourne29-Aug-07

J. HallChief Finance Offi cerDepartment of Innovation, Industry and Regional Development

Melbourne29-Aug-07

ACCOUNTABLE OFFICER’S AND CHIEF FINANCE OFFICER’S DECLARATION



AUDITOR-GENERAL’S REPORT (continues on page 66)



AUDITOR-GENERAL’S REPORT (continued)

APPENDICES


Annual Report2006–2007


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


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

WORKFORCE INFORMATION

Ongoing EmployeesFixed Term

& Casual Employees

TotalEmployees

Full time

headcount

Part time

headcount

Totalheadcount

Total (FTE) Total (FTE)Total

(FTE)

June – 06 553 34 587 574.40 86.30 660.70

June – 07 714 58 772 750.55 117.90 868.45

June – 06 June – 07

June – 07 Totals

Ongoing EmployeesFixed Term

& Casual Employees

Ongoing Employees

Fixed Term & Casual

Employees

Headcount FTE FTE Headcount FTE FTE

Gender

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

Age

Under 25 13 13.00 15.80 18 18.00 20.80 38.80

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 75 73.90 5.80 120 118.80 9.50 128.30

Over 64 4 4.00 0.00 10 10.00 0.00 10.00

Classifi cation

VPS1 1 1.00 5.00 1 1.00 5.00 6.00

VPS2 35 33.20 10.80 45 43.00 16.80 59.80

VPS3 119 116.20 16.80 131 125.70 23.00 148.70

VPS4 84 82.30 23.00 124 121.39 23.80 145.19

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 5 5.00 2.00 6 6.00 2.00 8.00

Executives 39 39.00 0.00 54 54.00 0.00 54.00

Other 2 2.00 3.00 1 1.00 4.00 5.00

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



June – 06 June – 07

June – 07 TotalsOngoing

Employees

Fixed Term & Casual

Employees

Ongoing Employees

Fixed Term & Casual

Employees

Headcount FTE FTE Headcount FTE FTE

Business Development 90 87.60 18.50 96 93.29 10.50 103.79

Business Support 87 85.30 17.00 87 85.80 20.00 105.80

Corporate Services 92 89.70 6.00 92 89.60 13.00 102.60

Economic Policy & Planning 30 29.60 7.00 30 29.80 5.00 34.80

Industrial Relations 36 35.60 6.80 35 34.20 5.90 40.10

Innovation Economy Advisory Board

4 4.00 0.00 4 4.00 0.00 4.00

Invest Victoria 26 25.60 3.80 27 26.90 4.80 31.70

Multimedia Victoria 44 41.96 7.80 49.76

Offi ce Of Secretary 4 3.40 0.00 3 3.00 1.00 4.00

Offi ce of Training &Tertiary Education

124 119.80 18.90 138.70

Regional Develop Vic 101 99.20 2.40 103 101.00 5.60 106.60Small Business Communications

10 8.40 3.00 9 8.20 2.00 10.20

Strategic Communication 3 2.80 1.00 9 7.80 3.60 11.40

Tourism Victoria 102 100.20 20.80 106 102.20 18.80 121.00

Workplace Rights Advocate 2 2.00 1.00 3 3.00 1.00 4.00

868.45

Notes:Jun-2006 employees reported with a classifi cation ‘Others Fixed Term’ are: Agent-General London (1FTE); Small Business Commissioner (1FTE);

Workplace Rights Advocate (1FTE)Jun-2006 employees reported with a classifi cation ‘Others Ongoing’ are: 2 (FTE) Ministerial Drivers

Jun-2007 employees reported with a classifi cation ‘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 classifi cation ‘Others Ongoing’ are: 1 (FTE) Ministerial Driver



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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 requestThe 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 briefi ng 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 fi ling 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.

Requests for access to documentsAccess to documents (as defi ned 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 offi cer.

Applications should be as specifi c as possible to enable the FoI offi cer to identify relevant documents as quickly and effi ciently 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 fi nancial 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).

Assistance in determining the categories of documents relevant to a request can be provided by the FoI offi cer. It should be noted that certain documents are destroyed or transferred to the Public Record Offi ce in accordance with the Public Records Act 1973.

An applicant may request photocopies of documents and/or inspect specifi c 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 notifi ed 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 confi dence, information that if released might endanger the lives or physical safety of individuals, cabinet documents, commercial-in-confi dence 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 ActSection 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

• 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)

• 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.

FREEDOM OF INFORMATION



Contact detailsThe Department’s Principal Offi cer 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 Offi cer contact details are:

GPO Box 4509, Melbourne VIC 3001Tel: 03 9651 9749 or 03 9651 9554Fax: 03 9651 9129 Email: [email protected]

Information privacyThe 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 confi dence 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 1If 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 2Use 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 4Ensure information is accurate, complete, up-to-date and secure.

Principle 5Be open about what you do with other people’s information.

Principle 6Let people see their information and correct it if necessary.

Principle 7Minimise creating and sharing ID numbers that can be used to match your information about people with information about them from other sources.

Principle 8In many situations there is no need to seek people’s personal information. People can often deal with each other anonymously.

Principle 9If you let people’s information travel to others, make sure the privacy protection travels with it.

Principle 10Sensitive 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 fi rst.

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 2006-07The Department received one privacy complaint during the reporting period. The Determining Offi cer confi rmed 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 specifi c program areas. Privacy awareness also continued to be included in the Department’s induction process for new offi cers, and was expanded to include offi cers on short-term contracts and agency staff.

Further informationThe Department has developed Information and Health Records Privacy Policies. A copy of the policies can be obtained by contacting:

Privacy Offi cer Department of Innovation, Industry and Regional DevelopmentLevel 31, 121 Exhibition StreetMelbourne VIC 3000Tel: 03 9651 9749 or 03 9651 9554Fax: 03 9651 9129Email: [email protected]

More information on privacy is available on the following websites:

• Victorian Privacy Commission www.privacy.vic.gov.au

• Health Services Commissioner www.health.vic.gov.au/hsc

• Federal Privacy Commission www.privacy.gov.au

FREEDOM OF INFORMATION (continued)



New

Contracts/GrantsNumber of grants

Regional/Metropolitan/State

Value (mil)

Jobs% Local Content

Skills

Investment Attraction Grants 3 1/2/0 74.1 615 50-85%• Staff training

• Skills transfer in design and manufacturing capabilities

Science, Technology and Innovation Infrastructure Grants

1 0/1/0 5 11 70% 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 9/0/0 16.21 211 85%

Other Contracts 0 0 0 0 0

IMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY



Completed

Contracts/GrantsNumber

of grants

Regional/Metropolitan/

State

Value (mil)

Jobs% Local Content

Skills

Investment Attraction Grants

2 2/0/0 3.4 391Not

reported• Staff training – especially in the skilling of

previously unemployed regional Victorians

Science, Technology and Innovation Infrastructure Grants

2 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 2/0/0 4.21 40 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; fl ood mitigation works - construction methods developed and built to withstand potential future fl oods 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 0 0 0 0 0% N/A

IMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY



Energy Use

Units of energy used per full-time employee

8,024 MJ/FTE

Units of energy used per unit of offi ce space

333 MJ/Square metre

Total energy usage segmented by primary source

Electricity (non-GreenPower ie dirty electricity)

5,989 Giga joules

Electricity (GreenPower) 976 Giga joules

Natural gas 0 Joules

LPG 0 Joules

Diesel fuel 0 Joules

Solid fuel 0 Joules

Heating oil 0 Joules

Other 0 Joules

Total greenhouse gas emissions segmented by primary source

Electricity (non-GreenPower ie dirty electricity) 2,204 CO2 equivalent

Electricity (GreenPower) 0 CO2 equivalent

Natural gas 0 CO2 equivalent

LPG 0 CO2 equivalent

Diesel fuel 0 CO2 equivalent

Solid fuel 0 CO2 equivalent

Heating oil 0 CO2 equivalent

Other 0 CO2 equivalent

Actions undertaken during the year to reduce energy use in buildings

• Relocated to 121 Exhibition Street

• Sensor lights

• 70% of all screens are LCD or fl at 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 offi ces.

OFFICE-BASED ENVIRONMENTAL IMPACTS



Waste Production

Units of waste produced per full time employee 73.59 kg/FTE/yr

Total units of waste recycled 55,373.54 kg/yr

Actions undertaken during the year to reduce waste

• 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 offi ces.

Paper Use

Total units of paper used 17,100 Reams

Units of paper used per full time employee 19.702 Reams/FTE

Actions undertaken during the year to reduce paper use

• Conducted paper reduction campaigns

• Created notepads from old letterhead stationery

• Mandated that all printers default duplex (print on both sides)

• Improved data collection


OFFICE-BASED ENVIRONMENTAL IMPACTS (continued)



Water Consumption

Water source Offi ce/Non-offi ce

Scope Litres/FTE Litres/year % of all sites

% of total FTEs

Mandatory

Potable water use Offi ce Governmentowned

* 0 0.0% 0.0%

Offi ce Leased 10,922 7,317,976 35.7% 91.8%

* Department of Innovation, Industry and Regional Development’s water consumption at government owned offi ces 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 Non-offi ce N/A N/A N/A N/A N/A

Offi ce/Non-offi ce

N/A N/A N/A N/A N/A

Actions undertaken during the year to reduce water use in buildings

• 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 fl ush

• All toilets at Southern Cross are fl ushed with recycled black and grey water

• Water effi cient 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 offi ces.




Transportation

Total Energy consumption 7,890 GJ

Energy consumption/FTE 9.09 GJ/FTE

Total greenhouse gas emissions 592 tonnes CO2-e

Greenhouse gas emissions/FTE 0.682 tonnes CO2-e/FTE

Total passenger vehicle trip kilometres associated with Departmental operations

2,232,152 km

Passenger vehicle trip kilometres associated with Departmental operations/FTE

2,572 km/FTE

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 fl eet

• Public Transport Promotion, encouraging staff to use for meetings within CBD

• Centralisation of Operational Vehicle Fleet, leading to greater effi ciencies

• Contracting the supply of offsets for the Department’s vehicle fl eet 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 offi ces.

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 offi ce relocation




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 Offi ce 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 offi cers have completed declarations for the fi nancial year.

SHARES HELD BY SENIOR OFFICERS IN A STATUTORY AUTHORITY OR SUBSIDIARY

No offi cers hold shares as nominee or benefi ciary in a statutory authority or subsidiary.



FINANCIAL REVIEW OF OPERATIONS AND FINANCIAL CONDITIONS


Five year fi nancial summary

2007$’000

2006$’000

2005$’000

2004$’000

2003$’000

Revenue from Government 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

Total expenses (940,546) (417,385) (334,023) (311,360) (308,192)

Net operating result for the reporting period

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

The Department’s revenue from government has increased in the current year as mainly due to: • Higher output appropriations received in the current fi nancial 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 refl ected in an increased level of expenditure and cashfl ows 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 fi nancial 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 fi nancial 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.

Signifi cant fi nancial activities of the Department during the year included: • The integration of the activities assumed as a result of machinery of government changes including the Offi ce 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 defi ned budgetary objectives. Exceptions were mainly due to agreed changes in committed projects being delivered in the next fi nancial year. Information on the delivery of services by the Output Groups of the Department, including signifi cant activities and achievements outlined in part one of the Annual Report. A comparison of budget to and actual fi nancial statements are contained in the ‘Budget Portfolio Outcomes’ section of the Annual Report (pages 86 – 93)


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 fi nancial assistance.

In 2006-07 fi nancial 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 confi dence).


Organisation 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 Pacifi c 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 Pacifi c Australia Pty Ltd

H J Langdon & Co Pty Ltd Urbis JHD Pty Ltd

Hawker De Havilland Aerospace Pty Ltd Woolworths Ltd


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 effi ciency 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 Payment $

Industry Capability Network Ltd 40,000

Agenda for New Manufacturing – Export


Airlinx Heating and Cooling Supply Pty Ltd 11,500

APV Automotive Components Pty Ltd 4,987

Aruspex Pty Ltd 10,000

AusBiotech Ltd 30,000

Aust-China Group Pty Ltd 355,000

Australian Flower Export Council Inc 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 10,000

Chislett Developments Pty Ltd 1,237

City of Greater Dandenong 15,000

E2E IT Solutions Pty Ltd 7,570


BUSINESS DEVELOPMENT GRANTS (continued)


Agenda for New Manufacturing – Export (Continued)


Eaststyle (Aust.) Pty. Ltd 11,500

Flavour Makers Pty Ltd 3,750

Geocode Mapping and Analysis Pty Ltd 7,500

Gregory Burgess Pty Ltd 14,783

GSOGA Food Company Pty Ltd 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 9,730

Marsh Classic Trimmers 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 7,532

Patties Foods Pty Ltd 11,500

Production Parts Pty Ltd 7,500

Pronto e Fresco Pty Ltd 8,364




Agenda for New Manufacturing – Export (Continued)


Razeng Park Pty Ltd 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 45,000

Terra Harvest Australia Pty Ltd 4,366

Tooling Australia Inc 100,000

Total Livestock Genetics Pty Ltd 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 1,165,930




Agenda for New Manufacturing – General


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 158,855




Agenda for New Manufacturing – Image Campaign


Association for Manufacturing Excellence - Australia Region Inc 35,000

Australasian Production & Inventory Control Society Limited 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


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


Total 398,700

Agenda for New Manufacturing – Technology Uptake


Bartco Traffi c 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



Stawell Gold Mines Pty Ltd 20,000

TNN-Agmin Pty Ltd 20,000

Total 151,980




Business Assistance - General


Australian Industry & Defence Network Inc - Victoria 45,909

Australian Logistics Council Inc 25,000

Burra Foods Pty Ltd 5,000

Capital Research Pty Ltd 10,000

Chocolatier (Australia) Pty Ltd 4,950

City of Melbourne 50,000

CSL Limited 5,000

Goulburn Ovens Institute of TAFE 66,000

Logistics Association of Australia (Vic) Inc 103,000

Melbourne Convention and Visitors Bureau Ltd 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 1,100,000

Victorian Transport Association Inc 63,000

Total 3,632,859

Design Centre Strategy


Charlwood Design Pty Ltd 20,000

Design Insitute of Australia 20,000

Dokulil Communications Pty Ltd 20,000

RMIT University 1,884,000

Society of Automotive Engineers - Australasia 30,000

Total 1,974,000




Business Assistance - General


Australian Meat Processor Corporation Ltd 9,000

Great Southern Ice Pty Ltd 59,300

Y V Marketing Pty Ltd 30,864

Total 99,164

Events and Sponsorships


Albury-Wodonga Area Consultative Committee Inc 1,500

Ararat Regional Business Association Inc 1,000

ASN Events Pty Ltd - Cool Climate Wine Show Trust 800

Association for Manufacturing Excellence - Australia Region Inc 30,000

Association of Wall & Ceiling Industries Victoria Inc 1,000


Australian Die Casting Association 3,000


Australian Retailers Association 15,000

Australian Specialist Cheesemakers’ Association (ASCA) 25,000

Bass Coast Shire Council 600

Baw Baw Shire Council 3,100

Benalla Rural City 500

Boating Industry Association of Victoria Ltd 4,000


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




Events and Sponsorships (Continued)


Eaglehawk Business Network Inc 1,000

East Gippsland Shire Council 600

Family Business Australia Limited 7,273

Fed Square Pty Ltd 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 600

Macedon Ranges Shire Council 1,000

Mansfi eld 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 573,700

Melbourne Food and Wine Festival Inc 1,120,000

Minerals Council of Australia - Victorian Division 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




Events and Sponsorships (Continued)


Technical Textiles and Nonwoven Association Inc 5,000


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


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 1,000

Total 5,201,423

Film and TV Industry


Film Victoria 150,000

Grow Your Business


A.W. Nicholson Pty. Ltd. 2,400

Alpine Valley Vignerons Inc 13,500

Asparagus Growers of Sunraysia Inc 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 9,000




Grow Your Business (Continued)


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 9,129

Centre for Agriculture and Business-Yarra Valley Inc 900

Cheviot Bridge Ltd 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


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






CVP Australia Pty Ltd 3,998

Daintree Networks Pty Ltd 10,500

Ear Associates Pty Ltd 7,500

East Gippsland Shire Council 13,230

East Street Upholstery Pty Ltd 4,000

Eastfi eld 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 11,500

Heldon Products Pty Ltd 7,063


Hoogwegt Australia Pty Ltd 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 11,500

James Stock Feed & Fertilizer Pty Ltd 2,880

King Valley Vignerons Inc 15,000

Kingfi sher International Pty Ltd 11,250

Kolona Pty Ltd 11,500

Latrobe City Council 29,805

Leeder Consulting Pty Ltd 4,000






Lemartin Pty Ltd 3,338

M & N Reid 10,500

M W Contract Pty Ltd 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

Rofi n 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






Strathbogie Shire Council 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


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 10,500

Total 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




Opening Doors to Export Plan


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


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


Strategic Enterprise Development Pty Ltd 21,000

Swinburne University of Technology 4,000




Total 390,351

Small Business Statement


Small Business Mentoring Service Inc 153,975




StreetLife


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 Manningham 12,000


Frankston City Council 9,000

Moonee Valley City Council 12,500

Mornington Peninsula Shire Council 10,000

Nillumbik Shire Council 5,500

Northern Grampians Shire Council 20,000

Portarlington Business Development Association Inc 2,500



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


Team Melbourne Pty Ltd 150,000




Trade Fairs and Missions


Aerospace Australia Ltd 9,000


Australian Automotive Aftermarket Association Ltd 85,000


Australian Flower Export Council Inc 30,000


Australian International Marine Export Group Ltd 2,000

Australian Manufacturing Technology Institute Ltd 44,750

Australian Trade Commission 92,510



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


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



Tourism Victoria 120,000

Victorian Association of Forest Industries 68,000


Woodger Enterprises Pty Ltd 45,000

Total 1,096,191


REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS

RDV provided fi nancial 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


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 110,000

Total 718,866

Drought Assistance Packages – Local Infrastructure Works Program



Ararat Rural City Council 300,000

Benalla Rural City 300,000

Buloke Shire Council 300,000


Central Goldfi elds Shire Council 300,000

City of Ballarat 300,000

City of Greater Bendigo 300,000


City of Greater Shepparton 300,000




REGIONAL DEVELOPMENT VICTORIA (RDV) GRANTS (continued)


Drought Assistance Packages – Local Infrastructure Works Program (Continued)


Colac Otway Shire Council 300,000



Gannawarra Shire Council 300,000

Glenelg Shire Council 300,000



Hindmarsh Shire Council 300,000

Horsham Rural City Council 300,000


Indigo Shire Council 300,000


Loddon Shire Council 300,000


Mansfi eld 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


Mount Alexander Shire Council 300,000

Moyne Shire Council 300,000

Murrindindi Shire Council 300,000


Pyrenees Shire Council 300,000

Southern Grampians Shire Council 300,000


Surf Coast Shire 300,000






Drought Assistance Packages – Local Infrastructure Works Program (Continued)


Wangaratta Rural City 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




Australian Fodder Industry Association Incorporated 8,674


Beechworth and District Chamber of Commerce & Industry Inc 7,000


BRACE Education Training and Employment Limited 13,000




Central Highlands Agribusiness Forum Inc 10,000







Daylesford and The Macedon Ranges Tourism Inc 10,000






Drought Assistance Packages – Business Continuity Program (Continued)




Hepburn Springs Swiss-Italian Festa Inc 13,000






Livestock Transporters Association of Victoria Inc 11,486



Maffra Chamber of Commerce and Industry Inc 1,334



Mildura Tourism Inc 8,500






Murrindindi Regional Tourism Association Inc 19,132


NatRoad Limited 10,000



Rosedale Chamber of Commerce & Industry Inc 3,000

Rotary Club of Euroa 3,000


Stawell Chamber of Commerce and Industry Inc 3,000





Drought Assistance Packages – Business Continuity Program (Continued)





Upper Goulburn Food Wine and Cultural Group Inc 5,950





Westvic Dairy Inc 3,000



Yea Wetlands Trust 9,705

Total 1,118,491

Living Regions Living Suburbs




Australian Alpine Valley Agribusiness Forum Inc 10,926

Bairnsdale Racing Club Inc 7,000


Benalla Business Network Inc 4,756




City of Casey 225,000









Living Regions Living Suburbs (Continued)


Department of Justice 375,000

Department of Sustainability and Environment 200,000


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




Kyabram Community and Learning Centre Inc 9,340

Lake Mountain Alpine Resort Management Board 10,000


Lilydale Chamber of Commerce & Industry Inc 2,500




Melton Shire Council 5,000

Milawa Gourmet Region Association Inc 10,000




Mt Baw Baw Alpine Resort Management Board 10,000

Mt Buller & Mt Stirling Resort Management Board 10,000


Nillumbik Tourism Association Inc 7,000


Parks Victoria 45,695


Rotary Club of Koo Wee Rup - Lang Lang Inc 2,500




Living Regions Living Suburbs (Continued)





The Herald & Weekly Times Limited 350,000

Tourism Victoria 1,550,000




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




















Make it Happen in Provincial Victoria (Continued)




Local Government Professionals Inc 15,000









Strathbogie Shire Council 820







Total 568,360

Next Generation Food Strategy


Agri Solutions Pty Ltd 10,000

Australian Alpine Valley Agribusiness Forum Inc 4,000

Australian Alpine Valleys Agribusiness Forum Inc 1,500

Australian Institute of Refrigeration Air Conditioningand Heating (Inc)

20,000

Australian Specialist Cheesemakers’ Association (ASCA) 54,000


Captains Creek Organic Wines 4,374




Next Generation Food Strategy (Continued)


Ceres Incorporated 3,000


Dairy Australia Ltd 40,000


Kosher Australia Pty Ltd 17,600

Organic Dairy Farmers’ Co-operative Limited 20,000

Organic Federation of Australia Ltd 5,000



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 6,600


Victorian Food Industry Training Board Inc 6,863

Victorian Health Promotion Foundation 20,000

Victorian Marine Farmers Inc 10,000

Victorian Olive Council Incorporated 10,000


Total 436,436

Regional Innovation Clusters Program








GMIC Ltd 25,000





Regional Innovation Clusters Program (Continued)





Victoria University of Technology 100,000


Total 755,000

Regional Investment Initiative


A1 Asphalting Pty Ltd 30,000



Ashton Pty Ltd 25,000


Benalla Auto Club Inc 13,000

Bendigo Bank Limited 400,000

Border Express Pty Ltd 50,000










Country Racing Victoria Ltd 12,500

CRF (Colac Otway) Pty Ltd 25,000

Drypac Pty Ltd 37,500





Regional Investment Initiative (Continued)


Ellerslie Hop Estate Pty Ltd 25,000





MacKay Casings Pty Ltd 20,000









O’Dwyer Horse Shoe Sales Australia Pty Ltd 10,000

Paper Australia Pty Ltd 200,000

Parks Victoria 15,000

Patties Foods Pty Ltd 180,000

Rice Graphics Images Australia Pty Ltd 30,000

Riverland Oilseed Processors Pty Ltd 60,000

Rubicon Systems Australia Pty Ltd 50,000



Southcorp Wines Pty Ltd 200,000




The Haire Truck & Bus Repairs Pty Ltd 44,934


Total 2,214,370




Provincial Victoria Growth Fund


ACN 060 661 663 Pty Ltd Trading As Horsham Colour 5,000

Albins Off Road Gear Pty Ltd 30,000


Ararat Golden Gateway Festival Committee Inc 7,000


Ballarat Goldfi elds N.L. 20,000

Barwon Heads Festival of the Sea Inc 7,500



BBI Biofuels Australia Pty Ltd 56,000

Beaufort Golf Club Inc 5,250


Birchip Cropping Group Inc 18,750


Business Networking for Growth (Central Victoria) Inc 7,500


Caramut Recreation Reserves Inc 5,000

Careers Connection LPC Inc 3,861

Champions of the Bush Inc 75,000





Clyne Farms Pty Ltd 28,500


Dairy Australia Ltd 100,000

Department For Victorian Communities 1,700,000

Department of Human Services 50,000

Department of Infrastructure 390,000

Department of Primary Industries 1,187,000




Provincial Victoria Growth Fund (continued)


Department of Sustainability and Environment 1,920,000

Department of Transport and Regional Services 37,275

Department of Treasury and Finance 150,000

Dunolly Rush 150 Inc 5,000


Eildon Action Inc 28,500


Geelong Ethnic Communities Council Inc 10,000

Gekko Systems Pty Ltd 25,000


Golden and Paradise Beach Ratepayers and Residents Association Inc

5,000


Goulburn Valley Aero Club Incorporated 22,500

Grip Youth Services Inc 5,000



Irrewarra Estate Pty Ltd 11,325

ITC Timber Heyfi eld Pty ltd 28,000

Lake Imaging Pty Ltd 20,000


Lemnos Football & Netball Club Inc 40,000




Maxitrans Australia Pty Ltd 6,000












Municipal Association of Victoria 275,000


Mystic Mountains Tourism Inc 7,500


Ouyen Inc. 10,000

Port Fairy Tourist Association Inc 6,000

Portland Tourist Association Inc 20,000


Regional Science Association International - Australia & New Zealand Section Inc

10,000

Robin Hood Revived Inc 4,100

Rotary Club of Bairnsdale Sunrise Inc 10,000

Rotary Club of Maffra Inc 5,000

SalesForce Australia Pty Ltd 250,000


Spring Creek Community House Inc 17,500

Stawell Athletic Club Inc 60,000

Steel Frame Solutions Pty Ltd 12,000




Tourism Victoria 2,500,000


Unilever Australia Ltd 25,000

United Group Rail Pty Ltd 20,000

Victorian Cycling Inc 11,250

Victorian Wine Industry Association 100,000

VLGA Inc 90,000







West Gippsland Dance Festival Inc 10,000



Wodonga City Council 87,500


Yea Wetlands Trust 7,000

Total 11,045,981



RIDF – General Projects (under various sub programs)

Organisation Project Name RIDF Amount Approved $

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

1,000,000

Campaspe Shire Council Campaspe Industrial Estates 1,055,000

Central Goldfi elds Shire CouncilRegional 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 1,000,000

Murray Goulburn Co-operative Company Limited Leitchville Waste Water Reuse System 930,000

Murray Goulburn Co-operative Company Limited Leongatha Water and Energy Project 1,570,000

Murray Goulburn Co-operative Company LimitedWater for Industry - Leongatha - Water Recycling Project

2,000,000

Unilever AustralasiaRegional Industry Investment Program - Dry Processing for Tatura

*

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) (Continued)


V/LineMildura 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 confi dence

RIDF – Moving Forward Programs


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



RIDF – Moving Forward Programs (Continued)


Arts Infrastructure

Wangaratta Rural City Council Wangaratta Performing Arts Centre 4,500,000

Intermodal Freight Hubs

Horsham Rural City Council Wimmera Regional Intermodal Freight Hub Project 2,250,000

Provincial Pathways

Indigo Shire CouncilMurray 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 $ Amount

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 Goldfi elds 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 125,000

Campaspe Shire Council Pinegrove Recreation Reserve Upgrade 26,000




RIDF – Small Towns Development Fund (Continued)


Central Goldfi elds Shire Council Maryborough Princes Park Facilities Upgrade 40,000

Central Goldfi elds Shire Council Talbot Australian Communications Museum 106,000

Central Goldfi elds Shire CouncilWorsley Cottage - Development of Research and Exhibition Space

110,000

Colac-Otway Shire Council Apollo Bay GPS Base Station 24,000

Colac-Otway Shire CouncilGreat 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 250,000

Corangamite Shire Council Lismore Township Revitalisation 90,000

Corangamite Shire Council Pomborneit Hall Upgrade 20,000

East Gippsland Shire CouncilBairnsdale Racecourse Recreation Reserve Community Facilities Upgrade

200,000

East Gippsland Shire CouncilLuderick 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 250,000

Glenelg Shire Council Heywood’s Fitzroy River Precinct Upgrade 63,000

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 92,500

Greater Shepparton City Council Tatura Park Exhibition and Events Complex 250,000

Greater Shepparton City Council Toolamba Park Development 70,000






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 19,280

Macedon Ranges Shire Council Lancefi eld Park Community Facilities Upgrade 195,035

Mansfi eld Shire Council Mansfi eld 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 100,000

Murrindindi Shire Council Acheron Hall Upgrade - Stage 2 18,000

Murrindindi Shire Council Kinglake Memorial Reserve Facility Upgrade 100,000

Murrindindi Shire Council Yea Recreation Reserve Facility Upgrade 81,000






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 132,500

Wellington Shire Council Cowwarr Streetscape 56,000

Wellington Shire Council Dargo and Licola Bore Construction 200,000

Wellington Shire Council Victoria Park (Sale) Innovative Water Saving 70,000

Yarriambiack Shire Council Beulah Memorial Park Redevelopment 193,370

Yarriambiack Shire Council Beulah Pioneer Park Development 6,581

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 4,513

Yarriambiack Shire Council Yaapeet Recreation Reserve Camping Facilities 55,716



POLICY GRANTS

Grants totalling $1.2 million were made from the Policy Output and are detailed below:


Enhancing Greenhouse Considerations in New Investment


Amcor Packaging (Australia) Pty Ltd 52,800

BMW Melbourne Pty Ltd 21,868

BRK Pty Ltd 9,535

Caterpillar of Australia Pty Ltd 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




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


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


Job Watch Inc 1,577,000



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 Payment $

Solomon, Prof David 50,000

Australian Technology Showcase Program


Davies Craig Pty Ltd 4,000

Iatia Imaging Pty Ltd 4,000

IXC Australia Limited 502,000

Total 510,000



SCIENCE, TECHNOLOGY AND INNOVATION GRANTS (continued)

Biomedical Research - Operational Infrastructure Support Program


ASN Events Pty Ltd 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 1,827,436


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


Acrux DDS Pty Ltd 2,929

American Australian Association 12,024

AusBiotech Ltd 42,158

Australian Research Centre for Complementary & Alternative Medicine

260,000




Biotechnology (Continued)


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 50,000

Invetech Pty Ltd 733


Minifab (Aust) Pty Ltd 1,465


Neurosciences Victoria Ltd 2,929

Nucleus Network Limited 733

Peter MacCallum Cancer Institute 94,932

Phillips Ormonde Fitzpatrick 1,465


Small Technologies Cluster Ltd 1,465

The Meeting Planners Pty Ltd 27,000



Victorian Curriculum and Assessment Authority 12,000

Young Achievement Australia 24,000

Total 2,388,929




CRC Support Program


CRC-Safe Pty Ltd 40,000

Hearworks Pty Ltd 6,000

Innovative Dairy Products Pty Ltd 156,000

International Diabetes Institute 6,000





Victorian Centre for Advanced Materials Manufacturing 6,000

Total 374,247

Energy Technology Innovation Strategy


Department of Primary Industries 4,000,000


Total 4,046,000

Healthy Futures - The Victorian Life Sciences Statement


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


Aortech Biomaterials Pty Ltd 61,861

C.C.H. Pty Ltd 73,333

Health1st Pty Ltd 162,325


177


Science & Technology R&D Fund (Continued)


Pulmosonix Pty Ltd 52,071

Total 369,372

STI - Skills and Awareness


Advance Global Australian Professionals 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 Media Centre Inc 30,000

CSIRO 135,000

General Sir John Monash Foundation 100,000


NPG Nature Asia-Pacifi c 10,000

Science Teachers Association of Vic 25,850

Sciencenow! Inc 37,000

Smart Geelong Network Ltd 41,000


Victorian Endowment for Science, Knowledge & Innovation Ltd 90,618

Wodonga Institute of TAFE 1,000

Total 681,183

STI - Vic Start Program


Australian Aerospace and Defence Innovations Ltd 440,000

Australian Institute for Commercialisation Ltd 550,000

Food Science Australia 320,000



Department of Innovation, Industry and Regional Development - Annual Report 2006-2007 www.business.vic.gov.au




STI - Vic Start Program (Continued)


Knowledge Commercialisation Australasia Inc 5,000



Total 1,480,000

STI Awareness Grant from DPC


Buchbinder, Rachelle 8,000

Cox, Helen Dr 16,000

MacInnis, Robert 8,000

Tynan, Fleur 8,000

Total 40,000

STI Initiative


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 5,000

Global Access Partners Pty Ltd 20,000



STI Initiative (Continued)


IF Education Pty Ltd 65,000

Institute of Materials Engineering Australasia Ltd 5,000


Nanotechnology Victoria Ltd 3,054,179


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


W Acacia Ridge Pty Ltd 200,000

Total 36,092,322

Support Funding



Synchrotron


Australian National University 5,000



Kempson, Ivan 10,000



University of South Australia 139,000

Total 229,000




Grants totalling $11.5 million under the Department’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 fi rst six months of 2006-07 are available on request from the Department of Infrastructure.

ICT Entrepreneurs Program


Australian Information Industry Assoc Ltd 6,600

TAFE ICT Industry Based Learning Program



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


Australian Industry Group 110,000

ICT Trade Fairs & Missions


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

MULTIMEDIA VICTORIA



MULTIMEDIA VICTORIA (continued)

ICT Trade Fairs & Missions (Continued)


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






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

Infi nite 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

Kingfi sher 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






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 Pacifi c 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





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

Yellowfi n International Pty Ltd 5,500

Yoober Pty Ltd 2,750

Ziptales 4,400

Zoomorphix Systems 2,750

Total 560,350

Priority Industry Programs


Australian Information Industry Assoc Ltd 110,000

Pearcey Foundation Inc 5,500


Victorian Freight and Logistics Council Ltd 27,500





Priority Industry Programs (Continued)


Victorian ICT for Women Network Inc 22,550

Total 176,550

Gameplan Implementation


Game Developers’ Association of Australia Incorporated 22,000

Microsoft Pty Ltd 65,000

Total 87,000

Motion Capture Studio



e-Education


eLearning Industry Association of Victoria 66,000

Think Business Events 10,000

Total 76,000

Industry Linkages Program


Asiba 66,000


RFID Action Australia Ltd 22,000

Total 143,000

Broadband Innovation Fund


Department of Sustainability and Environment 401,500

Department of Treasury and Finance 427,856




Broadband Innovation Fund (Continued)


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



The University of Melbourne 13,200


Victoria University 1,200

Total 51,533

NICTA Victorian Research Laboratory


National ICT Australia Limited 4,950,000

Industry & Universities Collaboration Program




Total 12,583

e-Research Program



The University of Melbourne 1,540,000

Total 3,080,000


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 fi eld 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 defi ned benefi ts schemes. These schemes are administered by the Government Superannuation offi ce; 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.




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 identifi ed 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 fi xed-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 identifi ed 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.

OCCUPATIONAL HEALTH AND SAFETY



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 identifi cation 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 212 – 220

FRD 22A Employment and conduct principles 187

FRD 22A Occupational health and safety 188

FRD 29 Workforce data disclosures 121

FRD 15A Executive offi cer disclosures 121

FRD 22A Summary of the fi nancial results for year 133

FRD 22A Signifi cant changes in fi nancial position during the year 133

FRD 22A Major changes or factors affecting performance 212 – 220

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 offi ce-based environmental impacts 128

FRD 22A Statement of availability of other information 203

FRD 22A Disclosure index 189

FRD 22A Budget portfolio outcomes 212 – 220



MINISTERIAL DIRECTIONS

Legislation Requirement Page Reference

Financial statements

Financial statements required under Part 7 of the FMA

SD 4.2(f) Model fi nancial report 70

SD 4.2(b) Operating statement 66

SD 4.2(b) Balance sheet 67

SD 4.2(a) Statement of changes in equity 68

SD 4.2(b) Cash fl ow statement 69

SD 4.2(c) Compliance with Australian accounting standardsand other authoritative pronouncements

70

SD 4.2(c) Compliance with Ministerial Directions 70

SD 4.2(d) Rounding of amounts 70

SD 4.2(c) Accountable offi cer’s declaration 116

Other disclosures in notes to the fi nancial 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 offi cer 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 70

Audit Act 1994 12

DISCLOSURE INDEX (continued)



The following Acts are administered by DIIRD as of 30 June 2007:

Innovation

• Baker Medical Research Institute Act 1980

• Howard Florey Institute of Experimental Physiology and Medicine Act 1971

• Prince Henry’s Institute of Medical Research Act 1988

Industry and State Development

• Agent-General’s Act 1994

• Aerodrome Landing Fees Act 2003

• Albury-Wodonga Agreement (Repeal) Act 2003

• Australian Airlines (Intrastate Services) Act 1990

• Bread Industry Act 1959

• City of Greater Geelong Act 1993 (Part 5)

• Civil Aviation (Carrier’s Liability) Act 1961

• Victorian Industry Participation Policy Act 2003

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

Regional and Rural Development

• Latrobe Regional Commission (Repeal) Act 1995

• Regional Development Victoria Act 2002

• Regional Infrastructure Development Fund Act 1999

Small Business

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

• Public Holidays Act 1993

• Retail Leases Act 2003

• Shop Trading Reform Act 1996

• Summer Time Act 1972

• Small Business Commissioner Act 2003

Industrial Relations

• BLF (De-recognition) Act 1985

• Commonwealth Powers (Industrial Relations) Act 1996

• Community Services Act 1970

• Construction Industry Long Service Leave Act 1997

• Child Employment Act 2003

• Federal Awards (Uniform Systems) Act 2003

• Labour and Industry Act 1958

• Long Service Leave Act 1992

• Long Service Leave (Amendment) Act 2005

• Outworkers (Improved Protection) Act 2003

• Outworkers (Improved Protection) (Amendment) Act 2005

• Owner Drivers and Forestry Contractors Act 2005

• Trade Unions Act 1958

• Workplace Rights Advocate Act 2005

Skills, Education Services and Employment

• Australian Catholic University (Victoria) Act 1991

• Baxter Technical School Land Act 1982

• Deakin University (Victoria College) Act 1991

• Deakin University (Warrnambool) Act 1990

• Deakin University Act 1974

• La Trobe University(Bendigo and Woodonga) Act 1990

• La Trobe University Act 1964

• Marcus Oldham College Act 1995

• Melbourne College of Advanced Education (Amalgamation) Act 1988

• Melbourne College of Divinity Act 1910

• Melbourne University (Hawthorn) Act 1991

• Melbourne University (VCAH) Act 1992

• Melbourne University (VCAH) Act 1997

• Melbourne University Act 1958

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

• Monash University Act 1958

• Monash University (Chisholm and Gippsland) Act 1990

• Monash University (Pharmacy College) Act 1992

• Royal Melbourne Institute of Technology Act 1992

• Swinburne University of Technology Act 1992

• Tertiary Education Act 1993

• University of Ballarat Act 1993

• Victoria University of Technology Act 1990

• Victorian College of Agriculture and Horticulture Act 1982

• Victorian College of the Arts Act 1981

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

• Vocational Education and Training (Amendment) Act 1994

• Vocational Education and Training Act 1990

• Adult Community and Further Education Act 1991

• Education Act (Part thereof. Jointly with Education)

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

Tourism

• Australian Grands Prix Act 1994

• Chinatown Historic Precinct Act 1984

• Emerald Tourist Railway 1977

• Melbourne Convention and Exhibition Trust Act 1996

• Port Bellarine Tourist Resort Act 1981

• Tourism Victoria Act 1992

MAJOR ACTS OF PARLIAMENT ADMINISTERED



Disclosures made to DIIRD during the year 0

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

0

Disclosed matters referred to DIIRD during the year by the Ombudsman 0

Disclosed matters referred during the year by DIIRD to the Ombudsman to investigate 0

Investigations of disclosed matters taken over by the Ombudsman from DIIRD during the year 0

Requests made under section 74 during the year to the Ombudsman to investigate disclosed matters 0

Disclosed matters that DIIRD has declined to investigate during the year 0

Any recommendations of the Ombudsman under this Act that relate to DIIRD 0

1. Statement of support to WhistleblowersThe 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, offi cers 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 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.

2. Purpose of these proceduresThese 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 Offi cer. Disclosures may be made by employees or by members of the public.

3. Objects of the ActThe 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 offi cers and public bodies.

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 offi cers. The Act defi nes public bodies and public offi cers broadly. Public bodies include:

• all government departments and administrative offi ces

• statutory authorities

• municipal councils

• government appointed boards and committees

• government owned companies

• universities

• TAFE colleges

• public hospitals

• state funded residential care services

• health services contractors

• correctional services contractors.

The Department continues to comply with the requirements of the National Competition Policy.

DISCLOSURES MADE UNDER THE WHISTLEBLOWERS PROTECTION ACT 2001

PROGRESS IN IMPLEMENTING NATIONAL COMPETITION POLICY

WHISTLEBLOWERS PROTECTION ACT 2001



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 offi cers include:

• members of parliament

• councillors

• council employees

• public servants

• university employees

• police offi cers

• protective services offi cers

• administrative staff of the Chief Commissioner of Police

• teachers

• offi cer holders appointed by Governor in Council or a Minister.

The public offi cers 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. Defi nitions of key termsThree key concepts in the reporting system are improper conduct, corrupt conduct and detrimental action. These are defi ned below.

Improper conductA disclosure may be made about improper conduct by a public body or public offi cial. 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.

ExamplesTo avoid closure of a town’s only industry, an environmental health offi cer ignores or conceals evidence of illegal dumping of waste.

An agricultural offi cer delays or declines imposing quarantine to allow a fi nancially distressed farmer to sell diseased stock.

A building inspector tolerates poor practices and structural defects in the work of a leading local builder.

Corrupt conductCorrupt conduct means:

• conduct of any person (whether or not a public offi cial) that adversely affects the honest performance of a public offi cer or public body’s functions

• a public offi cer functions dishonestly or with inappropriate partiality

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

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

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

ExamplesA public offi cer 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 offi cer favours unmeritorious applications for jobs or permits by friends and relatives.

A public offi cer sells confi dential information.

Detrimental actionThe Act makes it an offence for a person to take detrimental action against a person in reprisal for a protected disclosure. Detrimental action includes:

• 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.

ExamplesA 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.

WHISTLEBLOWERS PROTECTION ACT 2001 (continued)



6. The Department’s internal reporting system

Contact persons for the DepartmentDisclosures of improper conduct or detrimental action by the Department or its employees may be made to the following persons:

The Department’s Protected Disclosure Coordinator is:

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: [email protected]

The Department’s Protected Disclosure Offi cers are:

Brian Corney Director, Private Sector Industrial Relations Victoria Level 33, 121 Exhibition Street Melbourne Vic 3000 Tel: 03 9651 9785 Email: [email protected]

Faye Burton Executive Director, Offi ce of Science and Technology Level 35, 121 Exhibition Street Melbourne Vic 3000 Tel: 03 9651 8035 Email: [email protected]

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

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

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

• determining whether a disclosure warrants investigation

• investigating disclosures

• monitoring investigations where they have been referred to public bodies

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

• 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:

The Ombudsman Level 22, 459 Collins Street Melbourne Vic 3000 (DX 210174) Tel: 03 9613 6222 Toll Free: 1800 806 314 Email: [email protected] 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.




7. The Ombudsman (Continued)Other public bodiesIf 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:

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

• promoting the policy of the Act to staff members

• establishing and publishing written procedures

• receiving and assessing disclosures of improper conduct

• referring disclosures to the Ombudsman

• carrying out investigations referred by the Ombudsman

• taking action in response to fi ndings that improper conduct has occurred

• protecting whistleblowers from reprisals

• collating and publishing statistics about disclosures received.

EmployeesEmployees 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

and maintain the confi dentiality of a person they know or suspect to have made a disclosure.

Protected Disclosure Offi cerThe Department’s Protected Disclosure Offi cer 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 confi dential fi ling system

• collate and publish statistics on disclosures made

• 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 confi dential

• forward all disclosures and supporting evidence to the Protected Disclosure Coordinator.

Protected Disclosure CoordinatorThe Protected Disclosure Coordinator will:

• receive all disclosures forwarded from the Protected Disclosure Offi cer

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

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

• refer all public interest disclosures to the Ombudsman

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

• 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 confi dential fi ling 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 confi dential

• liaise with the Chief Executive Offi cer of the public body.


Person who is the subject of the disclosure

Person/body to whom the disclosure must be made

Employee of a public bodyThat 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 PoliceThe Ombudsman or Deputy Ombudsman

Member of the police forceThe Ombudsman, Deputy Ombudsman or Chief Commissioner of Police



8. Roles and responsibilities (Continued)InvestigatorThe 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 ManagerThe 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

• ensure the expectations of the whistleblower are realistic.

9. Confi dentialityThe 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 fi ne 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

• when making a report or recommendation under the Act

• when publishing statistics in the annual report of a 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 identifi cation of either the whistleblower or the person who is the subject of the disclosure.

The Department will ensure all fi les, whether paper or electronic, are kept in a secure place and can only be accessed by the Protected Disclosure Coordinator, Protected Disclosure Offi cer, the investigator or Welfare Manager (in relation to welfare matters). All printed material will be kept in fi les 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 fi les will be given password protection. Backup fi les will be kept on fl oppy disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower fi les.

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 statisticsThe Protected Disclosure Offi cer 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:

• 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

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

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




11. Receiving and assessing disclosuresHas the disclosure been made in accordance with Part 2 of the Act?Where a disclosure has been received the Protected Disclosure Offi cer 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:

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

• Does the disclosure relate to conduct of a public body or public offi cer acting in their offi cial 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 Offi cer will decide how the matter should be responded to in consultation with the Protected Disclosure Coordinator.

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 offi cer to whom the disclosure relates:

• has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as a public offi cer

• 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

• 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 notifi cation.

In either case, the Protected Disclosure Coordinator will make the notifi cation and the referral within 14 days of the conclusion being reached by the public body. Notifi cation to the whistleblower is not necessary where the disclosure has been made anonymously.

12. InvestigationsIntroductionWhere 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:

• 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.




12. Investigations (Continued)Terms of referenceBefore 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:

• describe the resources available to the investigator

• require the investigator to make regular reports to the Protected Disclosure Coordinator

• set a date for the completion of the investigation report.

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.

Investigation planThe 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:

• What is being alleged?

• What are the possible fi ndings 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:

• notifi ed 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 justiceThe 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 confi dence 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

as soon as the disclosure is received or the investigation has commenced).

• 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 infl uence the outcome of the report and that person’s defence should be fairly set out in the report.

• All relevant parties to a matter should be heard and all submissions should be considered.

• A decision should not be made until all reasonable inquiries have been made.

• 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.

• 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.

Conduct of the investigationThe 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 requirementsThe Protected Disclosure Coordinator will ensure the whistleblower is kept regularly informed concerning the handling of a protected disclosure and an investigation.




12. Investigations (Continued)Reporting requirements (Continued)The Protected Disclosure Coordinator will report to the Ombudsman about the progress of an investigation.

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.

13. Action taken after an investigationInvestigator’s fi nal reportAt the conclusion of the investigation, the investigator will submit a written report of his or her fi ndings. 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.

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 offi cer 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 identifi cation of the whistleblower.

Action to be takenIf the Protected Disclosure Coordinator is satisfi ed 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.

The Protected Disclosure Coordinator will provide a written report to the Premier, the Ombudsman and the whistleblower setting out the fi ndings of the investigation and any remedial steps taken.

Where the investigation concludes that the disclosed conduct did not occur, the Protected Disclosure Coordinator will report these fi ndings to the Ombudsman and to the whistleblower.

14. Managing the welfare of the whistleblowerCommitment to protecting whistleblowersThe 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 fi ne 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).

Keeping the whistleblower informedThe 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 fi ndings 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.




14. Managing the welfare of the whistleblower (Continued)Occurrence of detrimental actionIf 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 satisfi ed 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 conductWhere 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 fl owing from any involvement in improper conduct. Section 17 of the Act specifi cally 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 fi nal 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 satisfi ed 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)

• there are good and suffi cient grounds that would fully

justify action against any non-whistleblower in the same circumstances

• there are good and suffi cient 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 confi dentiality 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 confi dential.

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 fi nal 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.




16. Criminal offencesThe Department will ensure offi cers 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 fi ne 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. ReviewThese procedures will be reviewed annually to ensure they meet the objectives of the Act and accord with the Ombudsman’s guidelines.





18. Assessment and referral fl ow chartThe following fl owchart represents the assessment and referral process. WB stands for the whistleblower (or person who makes the disclosure).

203


Department of Innovation, Industry and Regional Development - Annual Report 2006-2007 www.business.vic.gov.au

The following information is available on request:

• a statement that declarations of private interests have been duly completed by all relevant offi cers

• details of shares held by a senior offi cer as nominee or held benefi cially 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

SUMMARY OF ADDITIONAL INFORMATION AVAILABLE ON REQUEST



The Budget Portfolio Outcomes provide a comparison between the actual fi nancial 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 cashfl ows.

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 classifi ed 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 Offi ce and are not prepared on the same basis as the Department’s fi nancial statements as they include the consolidated fi nancial information of the following entities:

• The Department of Innovation, Industry and Regional Development

• Regional Development Victoria

• Workplace Rights Advocate

• The Offi ce of the Small Business Commissioner

• Victoria Trade and Investment Offi ce 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.

BUDGET PORTFOLIO OUTCOMES



BUDGET PORTFOLIO OUTCOMES (continued)

Operating statement for the year ended 30 June 2007

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000

Variation (b)$’000

Variation (b)%

Income

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

Expenses

Employee entitlements (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

Supplies and services (1),(2) (232,905) (115,526) (367,443) (117,379) 101.6

Other expenses from ordinary activities

(2) (1,131) - (17) (1,131) (100.0)

Borrowing costs (128) - (244) (128) (100.0)

(1,174,081) (433,549) (1,299,590) (740,482) (170.8)

Net result for the reporting period 158,772 - 14,700 158,772 100

(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 fi nancial statements).This increase in revenue is also refl ected 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).




Balance sheet as at 30 June 2007

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000


Variation (b)%

Current assets

Cash assets (1) 281,200 138,468 334,176 142,732 103.1

Other fi nancial 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 78 9,011 10,114 12,966.7

Other assets 491 - 182 491 100.0

784,956 188,174 562,901 596,782 317.1

Non-current assets classifi ed as held for sale

58 111 10,171 (53) (47.7)

Total current assets 785,014 188,285 573,072 596,729 316.9

Non-current assets

Receivables 112 - - 112 100.0

Other fi nancial assets (2) 58,828 65 48,904 58,763 90,404.6

Investments accounted for using the equity method

15,000 20,000 20,000 (5,000) (25.0)

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

Other 129 - 29 129 100.0

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

Current liabilities

Payables (4) 166,940 32,862 100,149 134,078 408.0

Interest bearing liabilities 1,763 1,041 1,835 722 69.4

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

Total current liabilities 354,883 53,060 196,194 301,823 568.8

(Chart continues on page 99)




Balance sheet as at 30 June 2007 (Continued from page 98)

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000


Variation (b)%

Non-current liabilities

Interest bearing liabilities 3,586 1,204 7,981 2,382 197.8

Provisions (c) (1) 25,309 1,628 105,754 23,681 1,454.6

Other (4) 40,022 - 22 40,022 100.0

Amounts owing to other departments 851 - 633 851 100.0

Total non-current liabilities 69,768 2,832 104,390 66,936 2,363.6

Total liabilities 424,651 55,892 310,584 368,759 659.8

Net Assets 2,681,199 339,285 2,575,487 2,341,914 690.2

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

Total Equity 2,681,199 339,285 2,575,487 2,341,914 690.2

(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 fi nancial 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

refl ected 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 reclassifi cations between asset categories and current and non-current provisions during the reporting period.




Statement of cash fl ows for the year ended 30 June 2007

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000


Variation (b)%

Cash fl ows 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

Payments for supplies, grants and employees

(1),(2) (846,497) (424,392) (972,938) (422,105) 99.5

130,036 9,084 275,689 (336,707) (3,706)

Interest received 18,773 - 6,226 18,773 100.0

Finance costs (128) - (244) (128) (100.0)

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

Net cash infl ow (outfl ow) from operating activities

165,973 5,046 237,947 (296,732) (5,880.5)

Cash fl ows from investing activities

Payments for non-fi nancial assets (2) (1,160,994) (11,609) (84,424) (1,149,385) 9,900.8

Proceeds from sale of non-fi nancial assets

21,700 - - 21,700 100.0

(Repayments of) loans by other entities

(3) (170,490) (5,046) (160.996) (165,444) (3,278.7)

Net cash infl ow (outfl ow) from investing activities

(1,309,784) (16,655) (245,420) (835,470) (5,016.3)

(Chart continues on page 91)




Statement of cash fl ows for the year ended 30 June 2007 (Continued from page 90)

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000


Variation (b)%

Cash fl ows from fi nancing activities

Net proceeds from capital contribution by State Government

(2) 1,283,688 11,609 194,994 1,272,079 10,537.7

Net proceeds of borrowings 2,855 - 8,187 2,855 100.0

Net cash infl ow (outfl ow) from fi nancing activities

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 fi nancial year 138,468 138,468 138,468 - -

Cash at end of the fi nancial year 281,200 138,468 334,176 142,732 103.1


Explanations for major variations between the 2006-07 actual and 2006-07 budget are as follows:

(1) Increases in cashfl ows from operating, fi nancing 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 fi nancial 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-fi nancial assets and net proceeds from contributed capital by the State Government are mainly the result of reclassifi cations between categories during the period.




Statement of cash fl ows for the year ended 30 June 2007 (Continued)

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000


Variation (b)%

Gain/(losses) on revaluation of property, plant and equipment

(1) 968,681 - 981,479 968,681 100.0

Available for sale fi nancial assets

- - - - -

Other - - - - -

Net income recognised directly in equity

968,681 - 981,479 968,681 100.0

Net result for the period (2) 158,772 - - 158,772 100.0

Total recognised income and expenses for the period

1,127,453 - 981,479 1,127,453 100.0


Explanations for major variations between the 2006-07 actual and 2006-07 budget are as follows: (1) Higher actual gains/(losses) on revaluation of property, plant and equipment due to inclusion of TAFE institution balances.

(2) 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.




Administered items statement for the year ended 30 June 2007

Notes

2006-07 Actual $’000

2006-07Budget

$’000

2006-07Adjusted

Budget (a)$’000


Variation (b)%

Administered income

Commonwealth grants 65 - - 65 100.0

Fines - 165 165 (165) (100.0)

Fees (1) - 2,150 2,150 (2,150) (100.0)

Other (1) 6,347 5,250 5,250 1,097 20.9

Total administered income 6,412 7,565 7,565 (1,153) (15.2)


Expenses on behalf of the State (325) 67 67 (392) (585.1)

Payments into the consolidated fund (1) 5,728 7,498 7,498 (2,220) (29.6)

Total administered expenses 5,403 7,565 7,565 (2,612) (34.5)

Income less expenses 1,009 - - 1,009 100.0

Administered assets

Cash assets (74) (105) (105) 31 (29.5)

Receivables 45,630 44,591 44,591 1,039 2.3

Total administered assets 45,556 44,486 44,486 1,070 2.4

Administered liabilities

Payables (17) (17) (17) - -

Other 93,220 93,990 93,220 - -

Total administered liabilities 93,203 93,203 93,203 - -

Net assets (47,647) (48,717) (48,717) 1,070 2.2


Explanations for major variations between the 2006-07 actual and 2006-07 budget are as follows: (1) Lower actual level of money collected and paid into consolidated revenue than originally expected.



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 refl ect 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 classifi cation: 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, signifi cant contributions are made from across the Department.

This output makes a signifi cant 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 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

Investment projects under development number 250 335

Jobs derived from investments facilitated number 5 000 8002

New investments facilitated $ million 1 600 3541.5

Quality

Client satisfaction rating by businesses with investment facilitation services per cent 90 *

* Client satisfaction survey to be completed



OUTPUT GROUPS (continued)

Output: Trade Development

Output classifi cation: The primary strategic objective of this output is to work with the business sector and other key partners to encourage and facilitate exports. The Offi ce 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 signifi cant contribution to the achievement of the following key Government outcomes:



This is achieved by assisting fi rms, 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.


2006-07 Target

2006-07 Actual

EXPORT PROMOTION

Description: Promotes and facilitates export opportunities for Victorian businesses particularly small and medium sized enterprises

Quantity

Companies provided with export assistance number 3 050 4266

Exports facilitated and imports replaced $ million 689 1520.4

Number of fi rms participating in individual export specifi c programs number 600 1283

Trade fairs and missions supported number 29 36

Quality

Client satisfaction with export assistance offered per cent 90 90.36




Output: Developing Innovative Industries

Output classifi cation: 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 specifi c contributions from the Innovation Economy Advisory Board, Business Development, Industrial Relations Victoria, Business Support and the Small Business Commissioner.

These outputs make a signifi cant contribution to the achievement of the following key Government outcomes:


- 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.


2006-07 Target

2006-07 Actual

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

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 40 60

Quality

Client satisfaction at small business information, referral or mentoring service (survey) per cent 90 90

Small Business Commissioner - proportion of business disputes successfully mediated by Commissioner

per cent 60 84

Timeliness

Proportion of applicants by retail tenants before leases of less than fi ve years that are responded to by the Small Business Commissioner in 21 days

per cent 100 100


2006-07 Target

2006-07 Actual

SERVICE INDUSTRIES

Description: Facilitates growth and sustainability of Victoria’s service industries

Quantity

Companies assisted in the fi nancial services sector number 35 46

Companies assisted through Australian Logistics Assured Program number 15 50

Initiatives completed by Melbourne Centre for Financial Studies number 6 8

New investments facilitated in fi nancial/shared services 5 5





2006-07 Target

2006-07 Actual

INNOVATIVE AND HIGH PERFORMING WORKPLACES

Description: Advocates for and facilitates innovative, high performing and cooperative workplaces that contribute to Victoria’s economic development

Quantity

Number of fi rms participating in programs designed to facilitate high performing and innovative workplaces

number 10 16

Respond to general workplace inquiries number 8 000 15915

Workplace Right Advocate: Information sessions provided number 20 74

Quality

Client satisfaction with programs designed to facilitate high performing and innovative workplaces and with investment facilitation services

per cent 90 90

Victoria represented in major industrial relations cases and inquiries in accordance with Government policy

per cent 100 100


2006-07 Target

2006-07 Actual

SCIENCE TECHNOLOGY AND INNOVATION

Description: Facilitates development of Victoria’s science and technology base and promotes innovation across the economy

Quantity

Australian Synchrotron: Client Management beam line user groups operating number 9 9

Biotechnology partnerships facilitated number 5 6

Businesses/researchers accessing science, technology and innovation (STI) funded infrastructure

number 300 448

Value of projects attracted by STI funding ratio 3.5:1 3.6:1

STI infrastructure projects under management number 44 48

Victorian participation in international biotechnology forums led by Government number 6 7

Value of investment attracted by Energy Technology projects ratio 5.1 *

Quality

Patents sought by STI funded organisations number 25 80

Skills expansion - PhD’s commenced in STI funded projects number 200 362

*Program transferred to DPI on 1 January 2007





2006-07 Target

2006-07 Actual

ADVANCED MANUFACTURING

Description: Facilitates growth and sustainability of Victoria’s manufacturing sector

Quantity

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 na

High performance consortia supported number 3 7

Participation in Balance Sheet Ready Program number 50 15

Design Sector Initiatives: Lectures, seminars and workshops held 20 na

Design Sector Initiatives: case studies completed 10 3

Design Sector: People participating in lectures, seminars and workshops 1000 na

Quality

Participant satisfaction with Advanced Manufacturing programs per cent 80 87


2006-07 Target

2006-07 Actual

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 number 8 9

Quality

Service provision rating per cent 80 91


2006-07 Target

2006-07 Actual

FILM VICTORIA

Description:

Quantity

Value of fi lm, television and new media production supported by Film Victoria production $ million 78 93.8

Quality

Additional employment from production supported by Film Victoria production number 2340 2814




Output: Regional Development

Output Classifi cation: 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 signifi cant contribution to the achievement of the following key Government outcomes:



- building friendly, confi dent 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


2006-07 Target

2006-07 Actual

REGIONAL ECONOMIC AND COMMUNITY DEVELOPMENT

Description: Facilitates employment, population and economic growth and the ongoing revitalisation of regional cities and towns

Quantity

Clusters supported in regional Victoria number 10 15

Companies in regional Victoria provided with assistance for growth opportunities number 160 248

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 36 34

Provincial Economic Partnerships - projects supported number 15 32

Quality

Participant satisfaction with Regional Business Investment Ready Program per cent 75 80


2006-07 Target

2006-07 Actual

REGIONAL INFRASTRUCTURE DEVELOPMENT

Description: Provides capital works funds for infrastructure development projects in regional Victoria

Quantity

Regional Infrastructure Development Fund (RIDF) projects funded (excluding Gas and Small Towns Development Fund)

number 10 39

Small Towns Development Fund (RIDF) projects funded number 90 97

Towns with work commenced to enable connection under the Natural Gas Extension Program

number 30 34

Quality

RIDF Committee recommendations accepted by Ministers per cent 90 100

Timeliness

Advice to RIDF applicants - after receipt of applications days 90 64




Output: Marketing Victoria

Output classifi cation: 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 signifi cant contribution to the achievement of the following key Government outcomes:



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 benefi ts and maximises the dissemination of tourism information about Victoria through online channels.


2006-07 Target

2006-07 Actual

TOURISM

Description: Facilitates employment and the longer-term economic benefi ts of tourism to Victoria by developing and marketing the state as a competitive tourist destination for both domestic and international tourists

Quantity

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

Quality

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




Output: Skills

Output classifi cation: 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 signifi cant contribution to the following key Government outcomes:


- more quality jobs and thriving, innovative industries across Victoria.


2006-07 Target

2006-07 Actual

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

Annual Government funded module enrolments number (million)

2.44 2.44

Audit of contract compliance by registered training organisations and other State Training Systems organisations

number 350 350

Government funded student contact hours of training and further education provided number (million)

70.55 70.55

Government funded student contact hours of training and further education provided to 15-24 year olds

number (million)

45.06 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 1200

Quality

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 fi ve per cent 86.9 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 81 80




Output: ICT Policy and Programsa

Output Classifi cation: 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:


-growing and linking all of Victoria

- sound fi nancial 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.


2006-07 Target

2006-07 Actual

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

ICT projects and programs underway number 34 27*

ICT policy reviews underway number 3 3

ICT research projects underway number 1 1

Export development projects number 40 40

Investments projects under development number 25 25

Quality

Assessment of quarterly monitoring reports for ICT grant agreements undertaken per cent 100 100

Timeliness

Payments made according to contracts, provided ICT grant recipients meet contract terms per cent 100 100

* The 2006-07 Actual is below target due to machinery of government changes - seven projects were transferred to Department for Victorian Communities.



Head Offi ceDepartment of Innovation Industry and Regional Development121 Exhibition StreetMelbourne VIC 3000Postal AddressPO Box 4509Melbourne VIC 3001Tel: 03 9651 9999Fax: 03 9651 9962www.diird.vic.gov.au

Regional Offi ces and Victorian Business Centres (VBCs)Ballarat VBC48 Sturt StreetBallarat VIC 3350Tel: 03 5320 5900Fax: 03 5330 5998

Bendigo VBC46 Edward StreetBendigo VIC 3550Tel: 03 5442 4100Fax: 03 5442 5452

Dandenong (SE Metropolitan) VBC314A Thomas StreetDandenong VIC 3175Tel: 03 9791 5755Fax: 03 9794 5644

Geelong VBC69-71 Moorabool StreetGeelong VIC 3220Tel: 03 5229 0641Fax: 03 5229 9503

Glenroy (NW Metropolitan) VBCSuite A, 3 Belair AvenueGlenroy VIC 3046Tel: 03 9304 4344Fax: 03 9304 4355

Melbourne CBDVictorian Consumer & Business Centre113 Exhibition StreetMelbourne VIC 3000Tel: 13 22 15Fax: 03 9651 8108

Mildura VBC131 Langtree AvenueMildura VIC 3500Tel: 03 5051 2000Fax: 03 5051 2020

Shepparton VBC3/164 Welsford StreetShepparton VIC 3630Tel: 03 5821 1811Fax: 03 5822 2554

Traralgon VBC33 Breed StreetTraralgon VIC 3844Tel: 03 5174 9233Fax: 03 5174 7845

Vermont (Eastern Metropolitan) VBC520 Canterbury RoadVermont VIC 3133Tel: 03 9874 5733Fax: 03 9874 5135

Wangaratta North Eastern VBC27-29 Faithfull StreetWangaratta VIC 3677Tel: 03 5721 6988Fax: 03 5721 2265

Wodonga VBC6/22 Stanley StreetWodonga VIC 3690Tel: 02 6056 2166Fax: 02 6056 2334

Tourism Victoria Offi cesHead Offi ceTourism VictoriaLevel 32, 121 Collins StreetMelbourne VIC 3000Postal address:GPO Box 2219TMelbourne VIC 3001Tel: +61 3 9653 9777Fax: +61 3 9653 9722

Internet:www.visitvictoria.comwww.visitmelbourne.comwww.visionsofvictoria.comwww.tourismvictoria.com.auEmail: [email protected]

SydneyTourism VictoriaLevel 13, 31 Market Street Sydney NSW 2000Tel: +61 2 9287 6500Fax: +61 2 9287 6507

Tourism Victoria Overseas Business Offi cesShanghai – People’s Republic of China Victoria Trade and Investment Offi ceSuite 308, Shanghai Centre1376 Nanjing West Road Shanghai 200040 ChinaTel: 0011 86 21 6279 8681Fax: 0015 86 21 6279 8685Email: [email protected]

Hong Kong – People’s Republic of ChinaTourism VictoriaSuite 6706, Central Plaza18 Harbour RoadWanchai, Hong KongTel: 0011 852 2531 3870Fax: 0011 852 2845 2213Email:[email protected]

Tokyo – Japan Tourism VictoriaAustralian Business Centre 28F New Otani Garden Court4 – 1 Kioi – Cho, Chiyoda-kuTokyo 102 – 0094 JapanTel: 0011 81 3 5214 0787Fax: 0015 81 3 5214 0790Email: [email protected]

SingaporeTourism Victoria101 Thomson Road#08-01 United SquareSingapore 307591Tel: 0011 65 6255 6888Fax: 0011 65 6255 2922Email: [email protected]

Auckland – New ZealandTourism VictoriaLevel 3, 125 The StrandParnell, AucklandNew ZealandPostal address:PO Box 1666Auckland, New ZealandTel: 0011 649 379 0425Fax: 0015 649 379 4361Email: [email protected]

CONTACT DETAILS



Los Angeles – North AmericaTourism VictoriaSuite 1150, 6100 Center DriveLos Angeles CA 90045 USATel: 0011 1 310 695 3245Fax: 0015 1 310 695 3248 Email: [email protected]

EuropeTourism VictoriaNeue Mainzer Str 2260311 Frankfurt, Germany Tel: 0011 49 2740 0677Fax: 0015 49 2740 0640Email: [email protected]

United Kingdom, Ireland and Nordic CountriesTourism Victoria26th Floor, Australia Centre Melbourne Place, Strand London WC2B 4LGUnited KingdomTel: 0011 44 207 438 4645Fax: 0015 44 207 240 6690Email: [email protected]

Victorian Government Business Offi ces OverseasUnited KingdomDavid BuckinghamAgent-GeneralVictoria HouseMelbourne Place, StrandLondon WC2B 4LGUnited KingdomTel: 0011 44207 836 2656Fax: 0015 44207 240 6025Email: [email protected]

JapanMr Tim DillonExecutive DirectorLevel 13Fukoku Seimei Building2-2-2 Uchisaiwai-cho, Chiyoda-kuTokyo 100 0011 JapanTel: 0011 81 3 3519 3371Fax: 0015 81 3 3519 3375Email: [email protected]

GermanyMr Eric MengesExecutive DirectorGrueneburgweg 58-6260322 Frankfurt am MainGermanyTel: 0011 49 69 668 074 0Fax: 0015 49 69 668 074 66Email: [email protected]

ShanghaiMr Charles Brent Executive DirectorSuite 308, Shanghai Centre1376 Nanjing West RoadShanghai 200040 ChinaTel: 0011 86 21 6279 8681Fax: 0015 86 21 6279 8575Email: [email protected]

Hong KongMr Allen KwokInvestment Manager2108 Harbour Centre25 Harbour RoadWanchai, Hong KongTel: 0011 852 2587 1133Fax: 0015 852 2802 9675Email: [email protected]

NanjingMr Jason LiInvestment ManagerSuite 1164, World Trade CentreJinling Hotel2 Hanzhong RoadNanjing 210005 ChinaTel: 0011 86 25 84701 231Fax: 0015 86 25 84709 821Email: [email protected]

BangaloreMr Wayne LewisCommissioner to India1st Floor, Pride Elite BuildingNo. 10 Museum RoadBangalore 560 001 IndiaTel: 0011 91 80 41227560Fax: 0015 91 80 41227569Email: [email protected]

United Arab EmiratesMr Peter DeaconExecutive DirectorOffi ce 111, 1st FloorEmarat AtriumSheikh Zayed RoadPO Box 58004Tel: 0011 971 4 321 2600Fax: 0015 971 4 321 2700Email: [email protected]

San Fransisco, USAMr Andrew DyerExecutive Director575 Market Street, Suite 2080San Francisco CA 94104 USATel: 0011 1 415 856 0552Fax: 0011 1 415 856 0517Email: [email protected]

Chicago, USAMs Louisa JordanInvestment Manager123 N Wacker Drive, Suite 1325Chicago IL 60606USATel: 0011 1 312 332 0862 Fax: 0015 1 312 332 0863Email: [email protected]

New York, USAMs Joanna GurryInvestment Manager150 E. 42nd Street, 34th FloorNew York, NY 10017USA Tel: 0011 1 212 687 0934Fax: 0015 1 212 687 2187Email: [email protected]

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

© 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 GovernmentDepartment of Innovation, Industry and Regional Development.121 Exhibition Street Melbourne Victoria 3000.

Contact: Strategic Communications UnitTelephone: (03) 9651 9999ISSN 1447-5014

Printed by blueprintDesigned and Produced by X2 Design

Photo creditsMichael Silver: p. 16, 20, 28, 32, 36, 50, 54David 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.