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Queensland Water Commissionannual report 2008–2009

S e c u r i n g o u r wa t e r , t o g e t h e r .

PO Box 15087City East QLD 4002Telephone: 1300 789 906Email: [email protected]

www.qwc.qld.gov.au

S e c u r i n g o u r wa t e r , t o g e t h e r .

8.5mm spine

16 October 2009

The Honourable Stephen Robertson MP

Minister for Natural Resources, Mines and Energy and Minister for Trade

Level 17

61 Mary St

Brisbane Qld 4000

Dear Minister,

I am pleased to present the Annual Report 2008–2009 for the Queensland Water Commission.

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability and Audit Act 1977 and the Financial

Management Standard 1997, and

• the detailed requirements set out in the Annual Reporting Guidelines for Queensland Government Agencies.

A checklist outlining the annual reporting requirements is available at www.qwc.qld.gov.au.

Yours sincerely

Mary Boydell

Commissioner

Queensland Water Commission

Letter of compliance

1

Our vision, mission and values 2

Message from the Commissioner 3

Highlights 4

Our organisation 6

Members of the Commission in 2008–09 8

Outcomes—Water security 13

1. Achieve regional sufficiency of water 14

2. Achieve water market efficiency 19

3. Achieve water use efficiency 23

Outcomes—Corporate governance 31

4. Stakeholder engagement and support 32

5. Performance excellence 35

Financial overview 43

Financial statements i

Certificate of The Queensland Water Commission xxiii

Independent auditor’s report xxiv

Glossary 72

Table of contents

Table of contents

2 Queensland Water Commission Annual Report 2008–09

Our visionSafe, secure and sustainable water for regional prosperity, lifestyles and healthy ecosystems.

Our missionTo ensure safe, secure and sustainable water supplies for SEQ by developing long-term water supply strategies,

managing water demand, providing advice to Government and reforming the water industry.

Our valuesThe Commission, its management and staff have made a commitment to the following shared values as the

cornerstone of delivering its agency objectives

Wisdom We seek to draw on the wisdom and knowledge of others so that together we can be

more creative

Accountability We are accountable for our work and actions and seek to be recognised by others for our

professionalism and integrity

Trust We seek to earn the trust of others by being respectful and honest in what we say

and do

Engagement We seek to engage with colleagues, stakeholders and others by being collaborative and

consultative

Recruit, Retain,

Recognise

We seek to recruit, retain and recognise the best people by fostering a rewarding and

vibrant work environment

Our contribution to Government ambitionsIn September 2008, the Premier, the Honourable Anna Bligh MP, released Toward Q2: Tomorrow’s Queensland,

which outlines the Government’s 2020 vision for Queensland. This vision is framed around the following five

ambitions that address current and future challenges:

Strong: Creating a diverse economy powered by bright ideas

Green: Protecting our lifestyle and environment

Smart: Delivering world-class education and training

Healthy: Making Queenslanders’ Australia’s healthiest people

Fair: Supporting safe and caring communities

As part of the Government’s environment and sustainable resource management agency cluster, the Commission

supports and participates in the State Government’s plan for the future—Toward Q2: Tomorrow’s Queensland. In

particular, the Commission contributes to the following targets:

Strong: Queensland is Australia’s strongest economy, with infrastructure that anticipates growth

Strong: Increase by 50 per cent the proportion of Queensland businesses undertaking research and

development or innovation

Green: Cut by one-third Queenslanders’ carbon footprint with reduced car and electricity use.

Our vision, mission and values

3

The 2008–09 year has seen significant improvement in South

East Queensland’s (SEQ) water security position. In July 2008

the combined dam levels for Wivenhoe, Somerset and North

Pine were 39.39 per cent with Extreme Level Restrictions and

Target 140 in place. By 30 June 2009, combined dam levels had

reached 76.77 per cent after significant weather events in May

and June bolstered capacity by 25 per cent.

Medium Level Restrictions and Target 200 remain in place over parts

of SEQ. However, on 1 December 2009 the entire region will move to

consistent permanent water conservation measures for the first time.

As dam levels increased significantly and water restrictions eased, the

Queensland Water Commission (the Commission) played a pivotal role

in planning and monitoring SEQ Water Grid operations, regional water

security programs and demand management measures. In particular,

the SEQ Water Grid commenced operation on 1 July 2008 and major

climate resilient supplies were commissioned.

Sustained and outstanding water-saving behaviour by the SEQ community has been pivotal in our long-term

water security planning model. We will continue to work with the community to embed this culture of water

saving and will further develop the institutional arrangements to support long-term water security and a system

of supply that is safe, reliable and efficient.

Our achievements are the mark of the hard work and commitment of the Commission and its staff over the

last three years. I also thank members of all SEQ water entities, councils, government agencies, water industry

stakeholders and the community for their contributions.

I accepted the Commissioner’s role in June 2009, knowing there was a solid foundation in place at the

Commission. By continuing to work together we can build on the last three years of work and success to make

our vision a reality—safe, secure and sustainable water for our regional prosperity, lifestyle and environment.

Mary Boydell

Commissioner

Queensland Water Commission

Message from the Commissioner

Message from the Commissioner


Since 2006, the Commission has played a major role in planning and monitoring the implementation

of the new SEQ Water Grid, which commenced operation on 1 July 2008. In the Grid’s first full year

of operation, SEQ has benefited from a significant improvement in regional water security with the

completion of several major infrastructure projects. Water security was further enhanced by residential

water consumption remaining below target levels throughout the year.

The Commission contributed to this by:

• Successfully managing the transition from Extreme to High to Medium Level Water Restrictions as combined

dam levels increased and elements of the SEQ Water Grid were commissioned.

• Developing a range of permanent water conservation measures for post-drought use in SEQ. The proposed

measures aim to ensure long-term efficient use of water. The Commission consulted the community on the

draft measures in July 2008.

• Continuing to monitor the delivery of the SEQ Water Grid and associated major projects.

• Amending the System Operating Plan to improve the security

of supply for the Sunshine Coast.

• Investigating sub-regional water cycle planning for the Mt

Lindesay–North Beaudesert, Lockyer and Warrill Valley regions.

• Monitoring the performance of the new bulk entities in their

first full year of operations, against their contractual obligations

and the Market Rules.

• Undertaking detailed work for stage two reforms of the

SEQ retail water market involving an enhanced regulatory

framework for bulk entities and the establishment of new retail

and distribution entities.

• Continuing to work with business to ensure that more than 99

per cent of required businesses were operating under a Water

Efficiency Management Plan by 30 June 2009.

• Publishing The 2008 Annual Water Report, providing the SEQ community with information about water usage

and the performance of the Commission’s demand management measures for the residential and

non-residential sectors.

• Releasing additional WaterHub information management modules to assist regional and national

stakeholders. The first module provides a centralised facility for data relating to the volume of bulk water

produced by water treatment plants or passing through the system. A second module calculates periodic per

capita consumption for defined geographic areas. It is used to produce weekly consumption estimates for

SEQ as a whole and for key areas within the region.

Highlights

… SEQ has benefited

from a significant

improvement in

regional water

security…

5Highlights

Public communication campaign wins awardsThe Commission’s Target 140 communication and education campaign received several prestigious awards this

year. These national and international awards recognised the campaign’s effectiveness in changing attitudes and

behaviours to water use in SEQ:

• International Public Relations Association—Public Sector (joint winner)

• International Water Association—best promoted water protection activity or program

• Public Relations Institute of Australia Golden Target 2008 winner—Government-sponsored campaigns.

The Commission was also a finalist for the following awards:

• Savewater! awards Australia

• Queensland Premiers Award

• Australian Marketing Institute (Queensland).

Wivenhoe Dam in April 2007. This iconic image is from the Target 140 communication campaign, which won several prestigious awards this year. The international and national awards recognised the campaign’s effectiveness in changing South East Queenslanders’ water use habits.


Our organisation

7

Role of the CommissionThe Commission is responsible for achieving safe, secure and sustainable water supplies in SEQ.

The Queensland Government established the Commission in June 2006. Under part two of the Water Act 2000

the Commission’s main functions are to:

• advise the Minister on matters relating to water supply and demand management for water

• advise the Minister on the delivery of desired Level of Service objectives for water supplied to the SEQ region

and designated regions

• facilitate and implement regional water security programs

• ensure compliance with the programs and with Commission water restrictions.

The Commission works collaboratively with all stakeholders to undertake these functions and to ensure that

communities and businesses understand and support regional water management programs.

Our organisation

Members of the regional water information management team working on the development of the WaterHub information management system.

Our organisation


Members of the Commission are appointed by the Governor-in-Council under the Water Act 2000.

For the period 1 July 2008 to 18 June 2009, the Commission comprised Ms Elizabeth Nosworthy (Chair), Mr Jamie

Quinn and Mr David Green.

The Honourable Stephen Robertson MP, Minister for Natural Resources, Mines and Energy and Minister for Trade

appointed Ms Mary Boydell as the sole Commissioner for an initial three year term, which commenced on

19 June 2009.

Elizabeth Nosworthy AO—ChairTerm of appointment: 19 June 2006–18 June 2009

Ms Elizabeth Nosworthy was appointed as the Chair of the Commission in June 2006. Ms Nosworthy is a Fellow

of the Australian Institute of Company Directors, with a BA LLB from The University of Queensland, an LLM from

London School of Economics and an LLD (Hons) from The University of Queensland. She brought to the position

extensive legal and corporate governance expertise, and has held directorships in both the private and public

sectors. Until 30 June 2009, Ms Nosworthy was the inaugural Chair of the SEQ Water Grid Manager Board.

Jamie Quinn—CommissionerTerm of appointment: 19 June 2006–18 June 2009

Appointed as a Commissioner in June 2006, Mr Jamie Quinn brought to the role extensive local government

experience and specialist knowledge in sustainable development, including water and transport infrastructure.

Mr Quinn held executive positions in local government between 1974 and 2006, including 16 years as the

Chief Executive Officer of Ipswich City Council. A fellow of the Local Government Managers Australia and the

Australian Institute of Company Directors, Mr Quinn was the 2005 recipient of the Queensland Local Government

Managers Australia Award for Excellence in Leadership and Management. Until 30 June 2009, Mr Quinn was a

member of the SEQ Water Grid Manager Board.

Members of the Commission in 2008–09

Members of the Queensland Water Commission to 18 June 2009: (left-right) Commissioners Jamie Quinn, Elizabeth Nosworthy (Chair), and David Green and Chief Executive Officer John Bradley.

9Our organisation

Mary Boydell—CommissionerTerm of appointment: 19 June 2009–18 June 2012

Ms Mary Boydell was appointed as Commissioner on

19 June 2009. Ms Boydell is a Chartered Accountant with

35 years experience in professional services firms, private

business and commerce.

Ms Boydell is also Chair of the Gladstone Area Water

Board and the Rural Industries Research and Development

Corporation, a Director of Energex Limited and a board

member of the CSIRO. She is an external member of

the Audit Committee of the Australian Government

Department of Agriculture, Fisheries and Forestry and

a member of the Queensland Regional Council of the

Institute of Chartered Accountants (having served as Chair

in 2008 and Deputy Chair in 2007). Ms Boydell is currently

a member of the Standing Committee of the Smart State

Council established by the Premier of Queensland.

Ms Boydell is a former board member of the Queensland

Bulk Water Supply Authority and a former Director of

South East Queensland Water Corporation Limited,

BSES Limited, Austrade (Australian Trade Commission) and

Burnett Water Pty Ltd.

David Green—CommissionerTerm of appointment: 19 June 2006–18 June 2009

Mr David Green, formerly Ernst & Young’s water industry leader, was appointed as a Commissioner in June 2006.

Mr Green has experience as a commercial, economic, regulatory, financial, and policy advisor in the industries of

energy, water, transport and communications. He is an advisor to boards and senior management on commercial

and strategic matters related to these industries. Mr Green was the lead financial, economic and regulatory

advisor to the Queensland Government on reform of the State’s water industry between 1998 and 2000. Until

30 June 2009, Mr Green was a member of the SEQ Water Grid Manager Board.

In June 2009, Mr Green was appointed as a Director of the Murray Darling Basin Authority.


Remuneration of CommissionersRemuneration for the Chair and Commissioners is in accordance with Sections 7 and 8 (i) of the Department of

Employment and Industrial Relations’ policy, Remuneration of Part-time Chairs and Members of Government

Boards, Committees and Statutory Authorities.

Executive management The Executive Management Group provides advice to the Commission on the development of the Commission’s

strategic direction. The Executive Management Group is also responsible for the delivery of key operational

activities through a range of business plans, strategies and policies.

On 26 March 2009, Mr John Bradley, Chief Executive Officer

was appointed Acting Director-General for the Department of

Environment and Resource Management. From

27 March 2009 to 30 June 2009, Mr Daniel Spiller, Ms Kay

Gardiner, Mr Peter Dann and Mr Greg Oliver each held the role

of Chief Executive Officer in an acting capacity.

Our futureThe Commission continues to be responsible for ensuring

water security in SEQ. In 2009–10, the Commission will

operate under its changed structure and administrative

arrangements to deliver a range of outcomes as highlighted

in the Outcomes section of this report. Under these

arrangements, the Commission will consist of one Commissioner, and the Department of Environment and

Resource Management will provide corporate and communication support services to the Commission under a

service level agreement. The Commission will review its business risks and business continuity framework in the

context of these new arrangements.

Our stakeholdersThe Commission regularly interacts with its stakeholder groups, including:

• SEQ Water Grid bulk entities

• SEQ councils and water businesses

• Council of Mayors (SEQ)

• residents of SEQ

• businesses operating in SEQ

• community and industry groups

• federal, state and local government agencies and organisations

• the Commission’s staff.

… The Commission

continues to be

responsible for

ensuring water

security in SEQ…

11Our organisation

Note: On 1 July 2009, the corporate and communications support functions were transferred to the Department

of Environment and Resource Management. In 2009–10, the Department of Environment and Resource

Management will provide these services to the Commission under a service level agreement.

Organisational chart

Prior to 26 March 2009

Deputy Premier andMinister for Infrastructure and Planning

The Hon. Paul Lucas MP

Post 26 March 2009

Minister for Natural Resources, Mines and Energy and Minister for Trade

The Hon. Stephen Robertson MP

Prior to 18 June 2009

CommissionersElizabeth Nosworthy AO (Chair)

David Green

Jamie Quinn

Post 18 June 2009

CommissionerMary Boydell

Prior to 26 March 2009

Chief Executive OfficerJohn Bradley

Post 27 March 2009

Acting arrangements in place

Communications and External

Relations

Senior Director

Gerald Tooth

Water Reform

Executive Director

Peter Dann

Regional Planning and

Policy

Executive Director

Daniel Spiller

(Acting)

Corporate Policy and

Governance

Senior Director

Greg Oliver

Demand Efficiency and Substitution

Senior Director

Kay Gardiner


Our operating environment in 2008–09A new Queensland Government Ministry was sworn in on 26 March 2009, following the general election on

21 March 2009. The Commission was subsequently transferred from the portfolio responsibility of the

Honourable Paul Lucas MP, Deputy Premier and then Minister for Infrastructure and Planning, to the portfolio

responsibility of the Honourable Stephen Robertson MP, Minister for Natural Resources, Mines and Energy and

Minister for Trade.

A report of the independent review of Queensland Government Boards, Committees and Statutory Authorities

was released on 20 May 2009. Following the release, the Honourable Anna Bligh MP, Premier and Minister for the

Arts, announced a change to the structure of the Commission under the Water Act and Another Act Amendment

Act 2009, which came into effect on 12 June 2009.

The changes retained the Commission as an independent statutory body but modified its structure from three

Commissioners to one Commissioner. The corporate and communications support functions were transferred

to the Department of Environment and Resource Management as of 1 July 2009. In 2009–10, the Department

of Environment and Resource Management will provide these services to the Commission under a service level

agreement.

13

Outcomes This section provides highlights on the Commission’s progress in achieving three key outcomes aimed at delivering water security for SEQ.


Achieve regional sufficiency of waterSEQ communities and industries have sufficient water, now and into the future, while maintaining healthy lifestyles and ecosystems.

Our performance target 2008–09

What we achieved

The South East

Queensland Water

Strategy, System

Operating Plan

and regional water

security options have

been submitted for

endorsement by the end

of 2008–09.

• Consultation on the draft South East Queensland Water Strategy

was finalised in July 2008.

• The final South East Queensland Water Strategy was delayed to

2009–10 to incorporate Government policy decisions regarding

purified recycled water, desalination facilities and the timing of the

construction of Traveston Crossing Dam.

• A revised System Operating Plan was made in April 2009.

• Preliminary advice detailing the Commission’s investigations into

desalination plants was released in February 2009.

• Implementation of a range of actions in the draft South East

Queensland Water Strategy commenced.

Standards for drinking

water and disinfection

have been set and

progressed by

30 June 2009.

These standards became the responsibility of the Office of the Water

Supply Regulator with the enactment of the Water Supply (Safety and

Reliability) Act 2008. Drinking Water Quality Management plans must be

approved across SEQ starting from July 2011.

Standards for emergency

response and risk

management set by

30 June 2009.

These standards became the responsibility of the Office of the Water

Supply Regulator with the enactment of the Water Supply (Safety and

Reliability) Act 2008.

The SEQ Water Grid Manager prepared and implemented a

SEQ Water Grid Emergency Response Plan and in 2008–09 a

SEQ Water Grid Quality Management Plan.

Our key performance indicatorsExtent of implementation of projects identified within the draft South East Queensland Water Strategy

and water security program.

The extent of implementation of water quality, risk management and Emergency Response Plans by SEQ

Water Grid entities.

Outcome one

15

Securing our regional water supplyThe draft South East Queensland Water Strategy (the Strategy) outlines a plan to meet the region’s water supply

needs both now and into the future, while ensuring the health of catchments, aquifers and ecosystems.

The Strategy identifies activities and initiatives for the short to medium term to deliver a new standard of water

security in Australia’s fastest growing region.

The Strategy provides a robust and comprehensive blueprint to ensure that sufficient water is available for SEQ

as it continues to face the challenges of our variable climate and growing population, and the possible impacts of

climate change.

The core of the Strategy lies in the ‘water supply guarantee’, which aims to:

“…supply sufficient water to support a comfortable, sustainable and prosperous lifestyle while meeting the

needs of urban, industrial and rural growth and the environment. ”

Planning for the future Other key features of the draft Strategy include:

• challenging the community to continue to use water responsibly under the guidance of proposed permanent

water conservation measures

• making homes and workplaces efficient by installing rainwater

tanks, water efficient fixtures and fittings and using alternative

water sources

• using the new SEQ Water Grid to move water to where it is

needed most

• reserving potential sites for desalination plants now, so they are

available for when we need them (after 2028 or in response to

another severe drought)

• increasing security and availability of water for rural towns where

possible.

• incorporating stakeholder and public feedback about the draft

Strategy

• undertaking detailed investigations into potential locations

for the future development of desalination plants in SEQ. The

Commission gave its preliminary advice in February 2009

• coordinating cross-agency planning in partnership with the Logan City and Scenic Rim Regional Councils, for

the total water cycle management of their developing areas. Sub-regional total water cycle planning aims

to identify and address issues associated with all aspects of the water cycle, with particular emphasis on

catchment management, water quality, waste water management and energy implications

• investigating and implementing options to improve security of supply for rural towns and irrigators.

After feedback was received during consultation on the draft Strategy, the Commission also refined the System

Operating Plan for the SEQ Water Grid. The System Operating Plan provides the rules for the operation of the

Grid. The changes to the System Operating Plan will minimise the costs of service delivery and maximise the use

of existing infrastructure. This year’s amendments improved the security of supply for the Sunshine Coast.

… The Strategy

provides a robust

and comprehensive

blueprint to ensure

that sufficient

water is available

for SEQ…

Outcomes – Achieve regional sufficiency of water

The Commission made significant progress developing the Strategy

this year including:


Continued improvements to water information management The Commission continued to develop its WaterHub information management system this year.

These developments expanded the range of SEQ information management services the Commission provided to

regional and national stakeholders.

The WaterHub system facilitates standardised and efficient delivery of regional urban water-related information,

such as weekly reports on residential consumption as well as, value-adding research, analysis, modelling and

reporting coordination services.

This year the Commission implemented the following improvements to enhance the system’s capability:

• The volumetric point measurement (VPM) module provides a centralised facility for SEQ Water

Grid entities to upload data relating to the total volume of bulk water produced by water treatment plants

(including manufactured water supply sources), and the volume of water passing through the system at

specific bulk transport points. Stakeholders can use the information in various ways, for example, the SEQ

Water Grid Manager uses this information to produce water bills.

• The production analysis module calculates periodic per capita consumption for defined geographic areas.

It is used to produce weekly consumption estimates for SEQ as a whole and for key areas within it.

The Commission’s investment in the innovative WaterHub system is ongoing. Additional WaterHub system

modules are in progress and planned for completion in the second half of 2009.

Alternative water sources, including rainwater tanks, and other water efficient fixtures and fittings are an important part of securing our water, as outlined in the Commission’s draft South East Queensland Water Strategy. (See page 15)

17

Emergency water supply projects deliver benefitsThe SEQ Water Grid is now operational. Key elements of the Grid were commissioned in late 2008 and early

2009, including:

• The SEQ (Gold Coast) desalination facility at Tugun: the first major desalination plant on the eastern seaboard.

• The Western Corridor Recycled Water Project: the first purified recycled water scheme in Australia and one of

the largest in the world.

• A series of major pipelines, including the Northern Pipeline Interconnector stage one, Eastern Pipeline

Interconnector and Southern Regional Water Pipeline.

A range of other projects are on track for completion by 2011. Construction of Wyaralong Dam has commenced,

and detailed planning is underway for infrastructure to connect the dam to the SEQ Water Grid.

Submissions from public and advisory agencies on the environmental impact statement (EIS) for the Northern

Pipeline Interconnector stage two closed in March 2009. The Coordinator-General will determine the

information required for a supplementary EIS and the extent of any necessary consultation. It is likely that the

supplementary EIS will be released in the third quarter of 2009 with the Coordinator-General’s report released

before the end of 2009.

Evaluation of the EIS for Traveston Crossing Dam is continuing through the State and Federal approval process.

In November 2008, the Coordinator-General recommended a number of mitigation measures to be implemented

prior to construction of the dam. If approved, the dam is expected to be completed by around 2017.

Beyond these completed and committed projects, additional supplies will not be required until around 2028. The

Commission will continue its role of scoping and monitoring the delivery of water supply projects in SEQ.

The Commission publishes monthly reports outlining the progress of projects still to be completed—the reports

are available at www.qwc.qld.gov.au.

Key elements of the SEQ Water Grid were commissioned in 2008–09, including the SEQ (Gold Coast) desalination facility.

Outcomes – Achieve regional sufficiency of water


Securing water supplies for rural communitiesThe Commission, in consultation with stakeholders, improved the security of town water supplies for rural areas

in SEQ.

For example, the Western Corridor Recycled Water Project has been the primary source of supply to the

Swanbank Power Station since August 2007. As a result of this alternative supply, approximately 8250 megalitres

per annum of interim water allocations are now potentially available

for alternative uses within the Warrill Valley Water Supply Scheme.

In April 2009, the Commission amended the System Operating Plan

to reserve the water under these allocations to maintain security for

towns in the Boonah area. Local irrigators are currently benefiting

from these reserved volumes and the reduced quantities taken from

Moogerah Dam.

Over time, the Queensland Government aims for all communities

with reticulated water supplies to achieve the same Level of Service

as those communities already connected to the SEQ Water Grid.

The Commission will continue to review options for improving the

security of supply for these communities.

Planning 2009–2010To achieve long–term regional water security in SEQ now and in the future the Commission will:

• complete the South East Queensland Water Strategy

• undertake research and analysis to support the implementation of the South East Queensland Water Strategy

• preserve the priority and reserve desalination sites, and undertake further detailed investigations so that a

desalination facility can be delivered on one of the priority sites as part of a drought response

• develop a drought response plan for the SEQ Water Grid and for towns with stand-alone sources of supply

• update the System Operating Plan for the operation of the SEQ Water Grid after the drought

• investigate other potential sources of supply

• undertake total water cycle planning across SEQ for key development areas

• advise the Minister on projects to enhance the SEQ Water Grid

• coordinate and monitor the delivery of regional water security options.

… Local irrigators

are currently

benefiting from

these reserved

volumes…

19

Achieve water market efficiencyCommunities and industries in SEQ receive reliable water products at a price that is economically efficient and sustains efficient water businesses.


What we achieved

The necessary policy to

underpin market arrangements

and regulatory design has been

identified and drafted.

The SEQ Water Grid commenced operation on 1 July 2008, within

a framework for operation set by Market Rules and contracts. This

framework was applied and refined over 2008–09. In addition,

the Commission undertook detailed work for stage two reforms

involving an enhanced regulatory framework for bulk entities and

the establishment of new retail and distribution entities.

Our key performance indicatorExtent to which market arrangements produce economically-efficient service outcomes and efficient

water businesses.

Outcome two

Outcomes – Achieve water market efficiency


Retail market reformIn 2008–09 the Commission continued its work on the most significant reforms to the water industry in SEQ’s

history. The changes implement a range of structural and regulatory reforms to improve the way water services

are provided in the region.

In 2007, Cabinet approved a policy framework for the institutional reform of water supply arrangements for SEQ.

The first stage involved the State of Queensland assuming ownership of dams, bulk water transportation and the

development of alternative supply options, including desalination and purified recycled water. The second stage

of the reform process focuses on the distribution and retailing of water and wastewater services to the consumer.

Once the second stage of reform is completed, there will be three combined distribution and retail entities that

own water and sewerage distribution infrastructure and sell water and sewerage disposal services to customers.

Distribution infrastructure includes reticulation pipes, reservoirs, pumps and sewage treatment plants. The entities

will sell and deliver water to customers, collect sewage and deliver it to treatment plants, treat and dispose of the

sewage, and purchase treated water from the SEQ Water Grid Manager.

Councils will continue to own the new entities, which will commence operation on 1 July 2010. The new entities

will comprise the following council groups:

• Brisbane, Scenic Rim, Ipswich, Somerset, Lockyer Valley

• Gold Coast, Logan, Redlands

• Sunshine Coast, Moreton Bay.

Beyond the physical operation of the SEQ Water Grid, the reformed institutional arrangements also have the

potential to deliver significant benefits to the community through:

• improved, simplified business structures to deliver water services in a coordinated manner

• creation of economies of scale due to the reduced number of entities

• amalgamating the technical skill sets of specialist entities

• clarification of the respective roles of state and local governments

• improved transparency and accountability for bulk transport and distribution networks with a strong asset

management regime

• enhanced economic regulation and pricing.

Working with councilsThe Commission is working closely with councils to deliver these important reforms. The reforms reflect both a

re-organisation of the SEQ urban water sector and also a significant strengthening of the regulatory regime that

applies to the sector.

The overarching regulatory framework that the Commission is developing to support the implementation of the

second stage of reform includes:

• an improved asset management framework, with a greater focus on benchmarking performance, self auditing

and inspections to monitor compliance

• an economic regulatory framework for assessing operational efficiency and ensuring adequate funding for the

regulated entities and, importantly, providing strong oversight of urban water prices to ensure that consumers

are receiving the best value for money

• a customer service framework, which will include a customer service code and guaranteed service standards,

and provide for independent dispute resolution arrangements for all households.

21

Significant reform of the SEQ water industry will improve the way water services are provided in the region.

Outcomes – Achieve water market efficiency


Institutional reform in actionMajor change has been underway in the SEQ water industry, including the completion of major new water assets

and the implementation of a new institutional framework for the wholesale sector of the water market.

On 1 July 2008, the SEQ Water Grid commenced operations. The Grid represents a fundamental shift in the way

our water resources are managed, and has been developed with the underlying principle that water is a regional

resource to be managed on behalf of all residents and businesses of SEQ.

Bulk water services are provided by three new entities:

• Seqwater—dams and water treatment

• LinkWater—bulk water transportation

• WaterSecure—manufactured water sources.

The restructured bulk water market has been in place for twelve months. The SEQ Water Grid Manager now

coordinates the water market and is responsible for ensuring that water sources are treated as a regional asset.

The SEQ Water Grid Manager also ensures that water sources are optimised to benefit all residents and businesses

in SEQ.

This simplified structure replaces a complex arrangement under which more than 20 bodies were responsible for

urban water services in SEQ.

Long-term benefitsOver time, it is estimated that the coordinated use of water sources in the region will achieve a 14 per cent

increase in available water, compared with previous arrangements where the sources were operated individually.

The SEQ Water Market Rules, a statutory instrument created in 2008 under the Water Act 2000, apply to all

entities in the SEQ Water Market and govern the operational and commercial aspects of wholesale water sales to

Grid customers and the supply of services to the SEQ Water Grid Manager.

The Commission, as SEQ Market Rules Administrator, is responsible for monitoring compliance to the rules,

reporting to the Minister on the efficacy of the Market Rules in achieving market outcomes, and implementing

changes to the Market Rules. This year, the Commission progressed issues in consultation with stakeholders

including loss rates, metering assessment results, risk management planning and Market Rules compliance.

The Office of the Water Supply Regulator has also completed its first year of operation, with primary responsibility

for water quality and asset regulation covering both SEQ and the remainder of Queensland.

Planning 2009–2010To implement regional institutional arrangements based on sound economic principles that support long-term

resource sustainability, the Commission will:

• design and implement regulatory, institutional and water management arrangements to enhance the

efficiency, quality and security of water supply

• support implementation with robust compliance arrangements

• finalise and implement a compliance framework which outlines systems and processes to ensure the

Commission meets its regulatory responsibilities under the Water Act 2000, the Water Regulation 2002 and

the Water Supply (Safety and Reliability) Act 2008

• provide support to other regulatory bodies with responsibilities for aspects of the water market

• undertake an annual review of the operation and effectiveness of the Market Rules

• provide advice to the Government on water market issues as required.

23


What we achieved

SEQ households have achieved

the per person per day water

consumption target.

Average residential water consumption remained under target

throughout the year.

Restrictions are implemented

in accordance with the drought

exit strategy.

High Level Restrictions were implemented from 31 July 2008.

Medium Level Restrictions were implemented from 11 April 2009.

95% of those businesses

operating in council areas

connected to the SEQ Water

Grid are operating under a

Water Efficiency Management

Plan (WEMP) by 30 June 2009.

More than 99% of required businesses were operating under a

WEMP by 30 June 2009.

Achievement of regular

public reporting on the

implementation of water

restrictions and compliance

programs.

The 2008 Annual Water Report was tabled in Parliament, and

published on the Commission website, on 19 June 2009. Monthly

water reports were published from July 2008 to February 2009.

Achieve water use efficiencyCommunities, industries, local governments and planners apply water use efficiency and substitution practices that address short-term emergencies and contribute to long-term sustainability.

Our key performance indicatorLevel of household and industry achievement of the Commission’s water use targets and policies

supporting agreed regional, economic, social and environmental objectives.

Outcome three

Outcomes – Achieve water use efficiency


South East Queenslanders continue to conserve water In 2008–09 SEQ residents and industry continued to support the Commission’s demand management programs

and, in areas subject to Commission restrictions, maintained their water use below target.

Business and industry continued to support the Commission’s water efficiency programs. By 30 June 2009,

compared to the pre-drought 2004–05 year, current savings were 33 per cent or 69.4 megalitres per day.

Demand management programs continued to focus on major

and moderate water users which together make up almost

90 per cent of non-residential consumption in SEQ.

Despite the easing of water restrictions in the 12 month period—

from Extreme to High and then to Medium—residents, in areas

subject to Commission restrictions, maintained their water saving

habits with an average water consumption of just over

132 litres per person per day (l/p/d). This is a significant reduction

from the pre-drought figure of more than 300 l/p/d. At the same

time, the average residential consumption target increased from

140 l/p/d to 200 l/p/d.

The Commission, in collaboration with the Government and local

councils, developed a demand management framework including

structural measures (such as rainwater tanks and water efficient

shower heads), restrictions, community education campaigns

and compliance programs. This framework assisted residents to

maintain the savings across the changing restriction levels.

Central SEQ 7 Day Residential Consumption June 2008 - June 2009

Litr

es p

er p

erso

n pe

r day

ExtremeLevel

0

50

100

150

200

250

300

HighLevel

MediumLevel

Target 170

Target 200

Target 140

Pre-restriction

4/07/

08

1/08/

08

10/04

/09

3/07/

09

Central SEQ seven day residential consumption June 2008 to June 2009

… Residents, in

areas subject

to Commission

restrictions,

maintained their

water saving habits

with an average

water consumption

of just over

132 l/p/d…

Changing residential consumption over the twelve-month period compared to restriction levels and pre-restriction average consumption. The graph is based on QWC data.

25

Restrictions relaxedAt 1 July 2008, SEQ was still in drought with Extreme Level Restrictions and a targeted water use of 140 l/p/d.

Later in the month, combined dam levels reached 40 per cent capacity, triggering a shift to High Level

Restrictions on 31 July 2008. The Commission supported the relaxed restrictions with the ‘Target 170’

communications campaign to raise community awareness

of the new requirements.

As dam levels rose and the severity of the drought eased,

High Level Restrictions were replaced in April 2009 with

Medium Level Restrictions and ‘Target 200’.

The Commission continued to work with residents to

maintain water efficiency, particularly in outdoor areas. In

June 2009, the Commission conducted efficient garden

irrigation displays and DIY workshops at retail stores

across SEQ, and hosted information stalls at the Ipswich

and Brookfield Shows, ABC Gardening Show and Beerwah

Sustainability Living Expo.

All of SEQ will come under common permanent water

conservation measures from 1 December 2009.

SEQ residents have continued their water saving habits throughout the year, by using water efficient devices and efficient garden irrigation tools such as hoses with trigger nozzles.

… The Commission

supported the relaxed

restrictions with

the ‘Target 170’

communications

campaign to

raise community

awareness of the new

requirements.…



1 July 2008Wivenhoe, Somerset and

North Pine dams reached

39.39 per cent—Extreme

Level Restrictions and

Target 140 were in place.

31 July 2008Combined dam levels

reached 40 per cent

capacity triggering High


Target 170.

11 April 2009Combined dam levels

reached 50 per cent

capacity triggering Medium


Target 200.

19 June 2009The 2008 Annual Water

Report was released

showing significant

reductions in water

consumption throughout

the year and across all

sectors.

30 March 2009Non-residential water

restrictions commenced

in the Redlands, Sunshine

Coast, and Scenic Rim local

government areas.

11 July 2008 Average residential

consumption level fell to its

lowest point: 112 l/p/d.

Timeline – demand management measures

30 June 2009 Combined dam levels

reached 76.77 per cent after

a 25 per cent increase over

six weeks following major

weather events in May and

June.

20092008


27

Permanent water conservationPermanent water conservation measures (PWCM) will be introduced across SEQ on 1 December 2009.

PWCM are low level water restrictions designed for long-term, post-drought use. The measures aim to ensure

efficient use of water, embed water use behaviours and guide the operational use of water. The Commission

consulted the community on the draft measures in July 2008.

Time restrictions on outdoor water use will generally be removed, except for a requirement to water gardens

and lawns outside of the heat of the day. There will also be a requirement to use water efficient devices, such as

trigger nozzles on hoses, high pressure cleaners and efficient irrigation systems.

Heavy residential water users will continue to be

identified and, where high water use cannot be

justified, the user will be managed as part of the

residential excessive water users program.

PWCM will also give effect to a small number of

structural and operational measures that cannot

be implemented through other means, such as

the Queensland Development Code. In particular,

PWCM will continue the Water Efficiency

Management Plan program and the introduction

of the best practice framework.

Outdoor water use requirements will generally be

the same for non-residential and residential water

users.

The Commission has continued to work both

across government and with the community to

ensure that, where possible, water efficiencies are

embedded in legislation. This year, for example,

the Commission worked with the Department

of Infrastructure and Planning to ensure that

improved water efficiency fixtures and fittings are

included in building and plumbing codes.

The Commission’s Efficient Irrigation for Water Conservation Guideline outlines efficient watering practices.



Water efficient businessThe Commission continues to work with business to improve water efficiency across SEQ. Demand management

measures implemented by the Commission, require businesses to reduce their water use, and complement

changes to the building and plumbing codes.

Larger businessesIn SEQ, all industries and businesses that use more than

10 megalitres of water a year, and operators of nurseries,

cooling towers and turf farms, must develop and submit a Water

Efficiency Management Plan (WEMP) to the local council for

approval. Businesses must show how they will reduce water

consumption by 25 per cent or reach best practice water use.

Local governments are water services providers and implement

the WEMP program on behalf of the Commission across SEQ.

Regulatory compliance measures support implementation, and

at 30 June 2009 more than 99 per cent of all required businesses

had submitted a WEMP—an increase of four per cent on the

previous year.

In March 2009, the Premier announced that WEMP reporting

requirements would change from quarterly to annual to reduce

the regulatory burden on business. Businesses that are large

water users in the Sunshine Coast and Redlands local government

areas, and the previously excluded parts of the Scenic Rim local

government area, began developing WEMPs from March 2009.

Retrofitting for efficiency Businesses that use between one and ten megalitres of water per annum are required to audit their water use and

retrofit water-efficient devices or improve water use via taps, dishwashers, toilets, air-conditioning, gardens and

recycling measures. Audit and inspection measures to support the retrofit program were introduced this year.

The measures reduced non-compliant businesses to eight per cent in the last quarter of 2008 compared with

40 per cent in the first quarter.

The Commission has supported the development of policy and legislative changes to encourage small business

to improve water efficiency. Work this year included registration and training in efficient water use practices for

mobile commercial operators in the Sunshine Coast, Scenic Rim and Redlands local government areas. A joint

residential and non-residential fact sheet on car washing was also developed.

… The measures

reduced

non-compliant

businesses to

eight per cent in

the last quarter

of 2008 compared

with 40 per cent

in the first

quarter…

29

Innovative products get mark of approvalThe Commission has developed a program to raise awareness about new water efficient technologies and

practices. This year the Commission worked with the irrigation, nursery and garden industries, and retailers to

improve design, classification and marketing of irrigation products.

The Commission set a national benchmark when it secured a Smart Approved WaterMark for its Efficient

Irrigation for Water Conservation Guideline. The Guideline details strategies and tools for efficient outdoor

watering of residential and non-residential gardens and lawns. The Smart Approved WaterMark is Australia’s

national, not-for-profit labelling scheme for products and services that help to reduce water use around homes.

The Commission is continuing discussions with retail stores, Irrigation Australia Limited and Smart Approved

WaterMark on the efficient urban irrigation program and associated product labelling. From 1 March 2009, the

Queensland Plumbing and Waste Water Code requires irrigation systems installed in new premises to comply with

the Commission’s guideline.

Planning 2009–2010To achieve objectives for water use efficiency the Commission will:

• implement water efficiency and demand management initiatives and undertake associated research and data

collection

• develop new programs and services to assist the community to reduce water use, such as a water efficiency

calculator to assist residents and business operators to monitor their water use

• undertake water use analysis and profile modelling based on accurate and up-to-date information

• manage the potential for post drought rebound in water use as the region settles into permanent water

conservation measures

• publish The 2009 Annual Water Report.

Smart Approved WaterMarkCMYK Logo

CMYK100/50/0/30

CMYK56/0/0/0

The Commission’s Efficient Irrigation for Water Conservation Guideline carries the Smart ApprovedWatermark—Australia’s national not-for-profit labelling scheme for efficient water products.



Performance against output measures in the 2008–09 Service Delivery Statement

Measure 2008–09 target / estimate

2008–09 actual at 30 June 2009

Quantity

Reports delivered in accordance with Ministerial directions (Section 360E of the Water Act 2000)

100% reports delivered and accepted by Minister

100%

Number of monthly progress reports on water supply emergency projects delivered to the Queensland Government (Section 360I of the Water Act 2000)

12 12

Quality

Errors in public communications and advertising on regional water security position

0 0

Effective communication of the detail of mandatory water restrictions

75% public recall of current target and restriction levels

Market research in November 2008 revealed 73% recognition of Target 170 (High Level Restrictions). No further research was undertaken during the period.

Timeliness

Release a System Operating Plan for the SEQ Water Grid

December 2008 A revised System Operating Plan became operational on 17 April 2009.

Release of the final South East Queensland Water Strategy

December 2008 The Strategy was initially due for completion in

November 2008. The final Strategy is currently being

reviewed and updated to incorporate:

• the Government’s decision to use purified recycled water to augment Wivenhoe Dam as an emergency measure only

• the delay to construction of Traveston Crossing Dam

• the final Government decision regarding the categorisation of potential desalination sites.

Make water restrictions where required by the supply/demand balance

New restrictions implemented on time in accordance with announced restrictions strategy

In the areas subject to the Commission restrictions, the Commission introduced High Level Water Restrictions on 31 July 2008 when the combined Brisbane dam storage reached 40% of capacity, and Medium Level Restrictions on 11 April 2009, when the combined storage level reached 50% of capacity.

Operational performance

31

Corporate governance

In its Strategic Plan 2008–12, the Commission identified the services under two internal outcome areas—stakeholder engagement and support and performance excellence—that are critical to its ability to deliver outputs. This section provides an overview of Commission’s performance in these outcome areas in 2008–09.


Stakeholder engagement and supportGovernment agencies, industry and community stakeholders have a high-level of understanding and support for proposed regional urban water outcomes.


What we achieved

Set a benchmark against

which to measure change in

stakeholder awareness of the

Commission initiatives.

In late 2008, the Commission conducted market research

to establish a benchmark for community recall of High Level

Restrictions (73%). We also sourced data on community

concerns, attitudes and behaviours about water supply and use

from the Queensland Household Survey.

The survey showed that across Queensland those surveyed:

• were concerned about water shortages (89 per cent)

• would remain focussed on saving water after the drought

(96 per cent)

• believe water conservation measures should remain in place

(76 per cent), and

• believe that water is a precious resource and we should make

long-term changes to the way we use it (97 per cent).

Our key performance indicatorsLevel of awareness amongst key stakeholders of key outcomes proposed.

Outcome four

33

Community engagementDuring 2008–09 the Commission provided the SEQ community with information on all aspects of urban water

use and supply in the region. Information was provided on:

• water restrictions

• water efficient practices and technologies for homes, gardens and businesses

• the SEQ Water Grid

• progress of regulated emergency water supply projects

• the draft South East Queensland Water Strategy

• desalination and the investigation of sites for future desalination plants

• purified recycled water.

This information was made available through a range of sources including:

• targeted communication campaigns

• the Commission’s website

• weekly water consumption reports

• information brochures

• public information displays at regional shows, exhibitions, sporting events, shopping centres and Queensland

Government events.

The Commission promoted its efficient water use products and programs across SEQ, including:

• efficient irrigation displays at 23 retail stores on 21 and 22 June 2009 with information officers available at

12 of the stores and DIY irrigation workshops held at six stores

• provision of shower timers and restriction information at 119 supermarkets during National Water Week in

October 2008

• purified recycled water display at the 2008 Royal Queensland Show (Ekka) in the Queensland Government

Pavilion—57 900 people tasted samples of purified recycled water.

Commissioner, Ms Elizabeth Nosworthy, visits a Commission display during National Water Week (October 2008). During the week, the Commission distributed water timers and information about water restrictions at 119 supermarkets across SEQ.

Corporate governance – Outcome four


Community eventsThe Commission also attended a range of community events such as:

• Australia Day Celebration at Wivenhoe Dam in January 2009 with samples of purified recycled water provided

• Aussie Arvo at Pine Rivers in January 2009 with samples of purified recycled water provided

• Moreton Bay Challenge in January and February 2009 with samples of purified recycled water provided

• ABC Garden Expo in April 2009—focussing on efficient irrigation

• Ipswich Show in May 2009—focussing on efficient irrigation

• Brookfield Show in May 2009—focussing on efficient irrigation and water restrictions

• Beerwah/Glasshouse Mountains gardening show in May 2009—focussing on efficient irrigation

• Greenfest in June 2009—focussing on efficient irrigation.

The Commission also answered individual enquiries received via letter, phone call and email.

The following table provides an overview of the reach of our community engagement during the year:

Telephone enquiries answered 13 476

Letters received and answered 1 377

Email enquiries received and answered 1 510

Visits to the Commission website (including individual sessions initiated by all visitors) 325 343

Local residents engaged at public events 102 900

Sample bottles of purified recycled water distributed at shows 93 565

Information brochures on purified recycled water distributed 29 050

Shower timers distributed to SEQ residents 400 000

35

Performance excellenceThe Commission demonstrates a high level of performance in fulfilling its statutory responsibilities with consistency, probity and efficiency.


What we achieved

100% compliance with

statutory requirements.

In 2008–09, the Commission complied with all statutory

obligations for strategic and operational planning; annual,

financial and human resource reporting; freedom of information;

records management and financial management. As part of the

internal audit program for 2008–09, the Commission reviewed

its ability to comply with its statutory obligations under the

Financial Management Standard 1997. The review found that the

Commission had the systems and processes in place to meet its

obligations.

At least 80% of respondents

to the annual staff survey are

satisfied with the Commission

as an employer.

The Commission undertook its annual staff survey in July 2008.

The survey showed 77% of staff are proud of the Commission’s

achievements and 75% think there is a can-do mentality at the

Commission.

At least 90% of performance

targets set in the Commission’s

internal operational plans for

2008–09 are met by 30 June

2009.

An evaluation of performance against 70 strategic, operational

and output measures showed:

• 76% of targets were achieved

• Results for 24% of measures varied significantly from planned

targets. Many of the variances were due to the impact of

external events on the ability of the Commission to do its

planned work program, including caretaker conventions and

review of government policies.

Our key performance indicatorsLevel of compliance with statutory obligations.

Staff satisfaction with the Commission as an employer.

Level of achievement of internal operational targets.

Outcome five

Corporate governance – Outcome five


Our people

Workforce ProfileTo deliver its portfolio of services, the Commission (as at 30 June 2009) maintained a full-time equivalent staff

establishment of 77. All permanent and temporary Commission staff are employed under the State Government

Departments Certified Agreement 2006 (core agreement) which is current until 31 July 2009. Negotiations

forming the basis of a new agreement will be finalised by the end of 2009.

During 2008–09 the Commission has made significant progress in

bringing its human resources management systems and processes

in line with government best practice through the development

and implementation of a number of strategic initiatives. These

initiatives, aimed at attracting, developing and retaining a workforce

with the knowledge, skills and experience necessary to ensure the

Commission achieves its objectives included:

As of 30 June 2009, all Commission employees had a MFPA plan

in place. Staff were provided with training and development

opportunities linked to their individual development needs as

identified in their MFPA plan. During the year there were 204 individual attendances at internally provided training

courses and 159 attendances at external training courses, conferences or seminars.

The Commission has a permanent retention rate of 78 per cent and a permanent employee separation rate of

23 per cent. The separation rate is higher than anticipated, partially due to four staff members relinquishing their

positions to join the newly created SEQ Water Grid Manager in the first quarter of the year.

The Commission continues to ensure it meets its statutory obligations under the whole-of-Government Equal

Opportunity and Disability Services initiatives.

… aimed at attracting,

developing

and retaining a

workforce with the

knowledge, skills

and experience

necessary to ensure

the Commission

achieves its

objectives…

• a shared values framework

• a managing for planning and achievement (MFPA) framework

and aligned learning and development framework

• a staff health and wellbeing framework

• a reward and recognition program

• an employee induction program

• an internal training program aimed at increasing the level of

critical skills such as policy writing and project management, and

bedding down the processes associated with new and changed

corporate policies.

37

Audit and risk management

Audit and Risk Management CommitteeThe Commission’s Audit and Risk Management Committee (the Committee) was established in 2007–08. The

purpose of the Committee is to assist the Commission to discharge its duty to manage the agency efficiently,

effectively and economically and meet the Government’s statutory requirement to establish and maintain

suitable systems of internal control and risk management.

The Committee operates under a formal charter that details its functions and responsibilities. The charter was

reviewed and updated in June 2009 to acknowledge the Queensland Treasury’s Audit Committee Guidelines—

Improving Accountability and Performance 2008.

In 2008–09, the Committee met on 2 July, 19 September, 5 March, 24 April and 10 June. Former Queensland

Auditor-General, Mr Len Scanlan, chairs the Committee. The other Committee members in 2008–09 were Ms

Elizabeth Nosworthy and Mr Jamie Quinn (1 July 2008 to 18 June 2009) and Ms Mary Boydell (19–30 June 2009).

In performing its duties, the Committee maintained effective working relationships with the Commission,

management and external and internal auditors.

During 2008–09 the Committee undertook the following responsibilities:

• provide an independent review of the Commission’s reporting functions to ensure the integrity of financial

reports

• monitor the effectiveness of the Commission’s internal control and risk management system

• provide strong and effective oversight of the Commission’s internal audit function

• review the independent external audit process, undertaken by the Queensland Audit Office

• provide effective liaison and facilitate communication between management and the external auditor

• ensure the Commission effectively monitors compliance with legislative and regulatory requirements and

promotes a culture committed to lawful and ethical behaviour.

Remuneration to external, non-public sector members of the Committee in 2008–09 totalled $6 000. The

amount of remuneration paid to external, non-public sector members of the Committee was determined at the

discretion of the Commissioner.

Risk managementThe Commission’s risk management framework has continued to evolve in 2008–09 with the introduction of

quarterly reviews of strategic and high operational risks and quarterly reports on progress and the effectiveness

of mitigation strategies provided to the Committee. The risk management framework and processes are fully

compliant with AS/NZS Risk Management AS/NZS4360. Risk management has been integrated with planning and

reporting processes across the Commission.

A comprehensive process was undertaken to identify and assess risks for 2009–10 and treatment controls have

been developed.



Internal AuditThe Commission’s internal audit function commenced in April 2008 with the appointment of BDO Kendalls (QLD)

contracted to provide internal auditing services for the period to 6 March 2010.

The Commission’s internal audit function operates under a formal charter that provides the nature, role, status,

authority and responsibility of internal audit. The Committee adopted the charter at their inaugural meeting on

2 July 2008.

During the year several internal controls for finance, information technology and procurement were reviewed.

Boards, committees and advisory bodiesThe Commission has only one Committee, the Audit and Risk Management Committee. The role of this

Committee is discussed on page 37.

Expert advisory panel The Commission established the expert advisory panel to provide independent advice on technical issues

associated with the regulatory framework for purified recycled water and the Western Corridor Recycled Water

Project. The panel also provides advice to the Commission about technical issues associated with the treatment

and use of purified recycled water, including:

• water quality criteria for purified recycled water

• the capability of the proposed technology

• commissioning and validation requirements

• ongoing monitoring requirements

• the scope and content of the Recycled Water Management Plan

• responses to incidents in recycled water quality or system performance

• reporting requirements for water quality.

The Panel has internationally recognised expertise in ecotoxicology, environmental science, microbiology and

advanced water treatment. It ensures that Australia’s first purified recycled water project remains at the forefront

of international expertise in the field of advanced water treatment.

The Commission provides financial support to the Panel, including remuneration for members’ attendance at

meetings, including an amount for travel. Honorarium payments made to panel members in 2008–09 totalled

$80 000.

During 2008–09 panel meetings were held on 31 July to 1 August 2008, 23–24 October 2008 and

27–28 April 2009.

39

An overview of current panel members is provided in the table below.

Role Name of panel member PositionChair Professor Paul Greenfield AO Vice-Chancellor of The University of Queensland

Microbiologist Professor Linda Blackall Research Team Leader, Marine Microbes and Symbioses, Australian Institute of Marine Science

Ecotoxicologist Professor Richard Bull Adjunct Professor of Environmental Sciences at Washington State University and a consultant in toxicology

Environmental scientist

Professor David Hamilton Environment BOP Chair in Lake Management and Restoration, Department of Biological Sciences at the University of Waikato, Hamilton, New Zealand

Australian Medical Association representative

Dr Zelle Hodge Previous AMA Queensland President (2006–07) and a General Practitioner based in Brisbane

Environmental chemist Professor Mike McLaughlin Chief Research Scientist in the Environmental Biogeochemistry program of CSIRO Land and Water

Ecotoxicologist Professor Brian Priestly Director of the Australian Centre for Human Health Risk Assessment

Microbiologist Dr Joan Rose Homer Nowlin Chair in Water Research and co-Director of the Centre for Advancing Microbial Risk Assessment at Michigan State University, USA

Advanced water treatment expert

Mr Harry Seah Director of Technology and Water Quality Office for the Public Utilities Board in Singapore



Compliance with regulatory requirements

Performance management frameworkFurther work was undertaken in 2008–09 to develop and implement an integrated performance management

framework for the Commission. This framework encompasses planning, budgeting, project management, risk

management, performance measurement, performance evaluation, performance and financial reporting, system

and process improvement, and the planning and management of staff development and individual achievement

across the Commission.

The framework has been developed and implemented to ensure compliance with the legislative requirements

of the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 (to start

1 July 2009), and the Public Service Act 2008. The Government’s project management methodology, Australian

Standards and a number of better practice guidelines, provided by the Department of the Premier and Cabinet,

Queensland Treasury and the Queensland Audit Office, have been used as the basis of development for this

framework.

Consultancies The Commission has engaged consultants to assist in achieving its objectives when expertise is required for

short periods on specific projects and it is not efficient or viable to employ specialists as staff. The Commission

approved an internal procurement policy in November 2008. This included processes to select and engage

consultants which conform to the State Procurement Policy.

In 2008–09 the Commission spent $3.25 million on consultants. These consultancies contributed to the demand

management and water efficiency, regional water supply and security, and water reform work programs.

The table below details the $3.25 million spent by the Commission on consultants during 2008–09.

2008–09Type of consultancy services

2008–09 Total expenditure $

Consultancy services to deliver the demand management and water efficiency work program

532 789

Consultancy services to deliver the regional water supply and security work program 723 268

Consultancy services to deliver the water reform work program 1 990 712

TOTAL 3 246 769

41

Overseas travel Commissioner David Green travelled to the United Kingdom on 27 March 2009 to speak at a conference held by

the Water Services Regulation Authority (OFWAT), the economic regulator of the water and sewerage industry in

England and Wales.

Mr Green was invited to speak at the OFWAT conference, which focused on debating and developing solutions to

key strategic challenges of sustainability, competition and innovation in the water sector. During his visit,

Mr Green also spoke with OFWAT staff at their offices in Birmingham and held individual meetings with industry

and government representatives. OFWAT sponsored the airfares and accommodation costs for Mr Green’s

attendance at the conference and other events.

Information systems and recordkeeping The Commission has a wide range of documents held in electronic and hard copy including reports, maps, plans,

audio-visual materials, computer records, general correspondence, agency publications, financial records, policy

documents and policy and procedure manuals.

In late 2007–08 the Commission adopted the TRIM electronic Document and Record Management System.

The Commission’s recordkeeping framework and procedures are compliant with the Public Records Act 2002,

Information Standard 40: Recordkeeping and Information Standard 31: Retention and Disposal of Public Reports.

Overseas travelName of officer/ member and position

Destination Reason for travel Agency cost $

Contribution from other agencies or sources $

David Green, Commissioner

United Kingdom

Speaker at OFWAT inaugural Sustainable Water event held at the Institute of Civil Engineers, London

0 13 352



Shared services During 2008–09, the Shared Service Agency provided financial and human resource management functions to

the Commission. The activities of the Shared Service Agency and CorpTech are reported in the annual report of

the Department of Public Works.

Public Sector Ethics Act 1994The Commission’s Code of Conduct meets the requirements of the Public Sector Ethics Act 1994. A copy of

the Code of Conduct is provided to prospective employees when an offer of employment is made and all new

Commission staff receive training in the Code of Conduct as part of their induction. Copies of the Code of

Conduct are available to external parties on request.

Whistleblowers Protection Act 1994The Whistleblowers Protection Act 1994 is Queensland’s central whistleblower protection legislation. It provides

protection for people making public interest disclosures to authorised public agencies. The Commission is

committed to the support and protection given to whistleblowers under this legislation.

Acts administeredUnder the Administrative Arrangements for 2009 and Amendment Order 1 of the Arrangements, the Commission

administers the following Act:

• Water Act 2000 (Chapter 2A, Part 1, Part 2 Divisions 1, 2, 4, 5 and 7, Part 3 Divisions 1 and 2, Part 4, Part 5,

Part 5A and Part 6).

The Commission is reponsible for parts of the following Regulation:

• Water Regulation 2002 (Part 8).

43

This section provides an overview of our financial statements for 2008–2009 in a reader-friendly

format to make it easier to understand the Commission’s financial performance, financial position and

cash flow.

Our financial performanceOur Income Statement shows that our total income for 2008–09 from all sources was $23.1 million, our

expenditure on all activities was $24.3 million and that we finished the year with an operating deficit of nearly

$1.2 million. This deficit principally relates to the use of accumulated surpluses from previous financial years to

fund expenditure on the WaterHub Modular Information System.

Income (where our funding comes from)We received the majority of our income through grants from the Queensland Government. This included funding

for the Commission work program.

Expenses (where our funding goes)Our total operating expenses for 2008–09 were $24.3 million—a reduction of $1.1 million compared to

2007–08. Supplies and services of $12.8 million (which includes corporate overheads, shared services,

consultants, contractors and communication activities) are the Commission’s largest expense representing

52.8 per cent of total expenditure.

Employee costs of $9.7 million are the Commission’s second largest expense category representing 40.2 per cent

of total expenditure.

The remaining expenses (7 per cent) include depreciation and amortisation, and other expenses. The ‘other

expenses’ category includes items such as operating leases, audit fees, insurance premium costs and legal

expenses.

Our financial positionOur financial position provides an indication of the Commission’s net worth at 30 June 2009.

It is calculated by measuring what we own and subtracting what we owe.

Our total assets at 30 June 2009 were nearly $5.9 million with total liabilities of $4.231 million, resulting in a total

equity of $1.7 million. This was a decrease of $1.6 million from the previous year.

Our assets (what we own)Our total assets decreased from $7.2 million at 30 June 2008 to $5.9 million at 30 June 2009. The reduction of

$1.3 million was partially due to a reduction in cash and cash equivalents relating to the use of cash held over

from the previous financial years to fund expenditure on the WaterHub (see page 16).

Financial overview

Financial overview 2008–2009


Our liabilities (what we owe)Our total liabilities at 30 June 2009 were $4.2 million, an increase of $0.4 million from the previous year. This

increase relates principally to increases in accrued employee benefits.

The liabilities primarily consisted of trade creditors and accrued employee entitlements.

Our liquidity ratio (or short-term solvency ratio) of 1.03 demonstrated that the Commission maintained a

satisfactory level of working capital at year end.

9,787.4

12,848.7

289.1

1,426.7

Employee expenses

Supplies and services

Depreciation andamortisation

Other expenses

Our expenses 2008–09 ($’000)—Total expenditure on all activities for 2008–09 was $24.3 million.

22,726.1

368.0 18.8

Grants - State Government

Interest

Other

Our income 2008–09 ($000)—Total income for 2008–09 from all sources was $23.1 million.

45

Financial statements

Queensland Water Commission Financial Statements 2008-09

Contents

Page

Income Statement 1 Balance Sheet 2

Statement of Changes in Equity 3 Cash Flow Statement 4

Notes To and Forming Part of the Financial Statements 5-22

Certificate of the Queensland Water Commission 23

Independent Audit Report 24-25

General Information

These financial statements report on the Queensland Water Commission.

The Queensland Water Commission is a Queensland Government statutory authority established under the Water Amendment Act 2006.

The head office and principal place of business of the Commission is:

Level 16, 53 Albert Street BRISBANE QLD 4000

A description of the nature of the Commission’s operations and its principal activities is included in the notes to the financial statements.

For information in relation to the Commission’s financial report please call (07) 3033 0792, or visit the Commission’s internet site www.qwc.qld.gov.au.

Amounts shown in these financial statements may not add to the correct sub-totals or totals due to rounding.


Contents

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General Information









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General Information








iFinancial statements

QUEENSLAND WATER COMMISSIONINCOME STATEMENTfor the year ended 30 June 2009

Notes 2009 2008$ $

IncomeRevenue

Grants and other contributions 2 22,739,422 24,956,500Other revenue 3 373,431 490,118

Total Income 23,112,853 25,446,618

ExpensesEmployee expenses 4 9,787,395 7,331,965Supplies and services 5 12,848,737 13,435,120Grants and subsidies 6 - 3,729,000Depreciation and amortisation 7 289,059 23,400Other expenses 8 1,426,673 961,110

Total Expenses 24,351,865 25,480,595

Net Operating Surplus/(Deficit) (1,239,012) (33,977)

The accompanying notes form part of these statements.

1

ii Queensland Water Commission Annual Report 2008–09

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QUEENSLAND WATER COMMISSIONBALANCE SHEETas at 30 June 2009

Notes 2009 2008$ $

Current AssetsCash and cash equivalents 9 1,964,239 5,121,659Receivables 10 2,145,215 978,083Other 11 98,267 6,593

Total Current Assets 4,207,722 6,106,335

Non Current AssetsProperty plant and equipment 13 81,510 86,117Intangible assets 12 1,606,953 958,581

Total Non Current Assets 1,688,462 1,044,698

Total Assets 5,896,183 7,151,033

Current LiabilitiesPayables 14 3,153,072 3,041,680Accrued employee benefits 15 917,568 652,744

Total Current Liabilities 4,070,641 3,694,424

Non Current LiabilitiesAccrued employee benefits 15 161,224 170,698

Total Non Current Liabilities 161,224 170,698

Total Liabilities 4,231,865 3,865,122

Net Assets 1,664,318 3,285,911

EquityContributed equity 1,170,956 1,553,537Retained surpluses 493,363 1,732,374

Total Equity 1,664,318 3,285,911


iiiFinancial statements

for the year ended 30 June 2009

Retained Surpluses Contributed Equity2009 2008 2009 2008

$ $ $

Balance 1 July 2008 1,732,374 1,766,353 1,553,537 -Operating Surplus/(Deficit) (1,239,012) (33,977) - -

Transactions with Owners as Owners

- Equity withdrawal (493,363) - - Equity injection - - 110,782 1,750,000

- Net leave liabilities transferred to/ - - - (196,462) from other government departments

Total Equity at 30 June 2009 493,363 1,732,374 1,170,956 1,553,537

STATEMENT OF CHANGES IN EQUITYQUEENSLAND WATER COMMISSION

$


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iv Queensland Water Commission Annual Report 2008–09

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QUEENSLAND WATER COMMISSIONCASH FLOW STATEMENTfor the year ended 30 June 2009

Notes 2009 2008$ $

Cash flows from operating activities Inflows:Grants and other contributions 21,143,569 25,410,000GST input tax credits from ATO 1,783,074 1,539,358Interest 347,561 -Sale of expensed assets 1,210 -Other 5,440 56,805Outflows:Payments to employees (9,450,101) (7,162,053)Payments for supplies and services (12,800,640) (15,525,002)Grants and subsidies - (3,729,000)GST paid to suppliers (1,444,245) (1,832,812)Other (1,921,248) (961,110)

Net cash provided by (used in) operating activities 16 (2,335,380) (2,203,815)

Cash flows from investing activities

Outflows:Payments for plant and equipment (30,624) (37,548)Payments for intangible asset development (902,201) (748,487)

Net cash provided by (used in) investing activities (932,825) (786,035)

Cash flows from financing activitiesInflows:Capital funding provided 110,782 1,000,000

Net cash provided by (used in) financing activities 110,782 1,000,000

Net increase (decrease) in cash held (3,157,423) (1,989,850)Cash at beginning of financial year 5,121,659 7,111,509

Cash at end of financial year 9 1,964,239 5,121,659


vFinancial statements

QUEENSLAND WATER COMMISSION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2008-09

5

Contents Page

Note 1: Summary of Significant Accounting Policies 6Note 2: Grants and Other Contributions 13Note 3. Other Revenue 13Note 4: Employee Expenses including Executive Remuneration 13Note 5: Supplies and Services 15Note 6: Grants and Subsidies 15Note 7: Depreciation and Amortisation 15Note 8: Other Expenses 15Note 9: Cash and Cash Equivalents 15Note 10: Receivables 15Note 11: Other Current Assets 16Note 12: Intangible Assets 16Note 13: Property Plant and Equipment 16Note 14: Payables 17Note 15: Accrued Employee Benefits 17Note 16: Reconciliation of Operating Surplus to Net Cash Provided by (Used in) Operating Activities

18Note 17: Commitments for Expenditure 18Note 18: Contingent Liabilities and Contingent Assets 19Note 19: Events occurring after balance date 19Note 20: Joint Project 19Note 21: Economic Dependency 19Note 22: Financial Instruments 19Note 23: Remuneration of Auditors 22

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Note 1. Statement of Significant Accounting Policies

(a) Basis of Preparation

The financial statements have been prepared in accordance with Australian Accounting Standards. In addition, the financial statements comply with the Treasurer’s Minimum Reporting Requirements for the year ending 30 June 2009, and other authoritative pronouncements.

These financial statements constitute a general purpose financial report.

Except where stated, the historical cost convention is used.

(b) The Reporting Entity

The Queensland Water Commission is a Queensland Government statutory authority established under the Water Amendment Act 2006 on 19 June 2006 as an independent authority with statutory power to ensure regional water supply security. The Commission is governed by a legislative framework under the Water Act 2000, and works with a number of government departments, agencies and water service providers.

(c) Major Activities of the Commission

The major activities of the Commission are: • Planning and developing strategies for long-term water security and advising the Queensland

Government on regional water security programs for South-East Queensland.

• Ensuring the implementation of water security programs approved by the Minister under Chapter 2Aof the Water Act 2000 including monitoring the progress of implementation of regulated projects and reporting to the Minister.

• Establishing regional water restrictions where required and encouraging demand management.

• Developing the system operating plan which governs the operation of the regional water infrastructure to achieve water savings within the water grid.

• Providing advice to Government on other matters as directed by the Minister.

(d) Grants and Contributions

Grants, contributions and donations that are non-reciprocal in nature are recognised as revenue in the year in which the Commission obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements.

In previous financial years, non-reciprocal grants were received by the Commission for the development of the WaterHub Modular Information Management System. The net operating result for the year ended 30 June 2009 reflects the Commission’s expenditure on further development of this system.

Where expected project expenditure does not occur, the non-reciprocal grants are returned to Consolidated Fund.

Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would be purchased if they had not been donated.

(e) Cash and Cash Equivalents

For the purposes of the Balance Sheet and the Cash Flow Statement, cash and cash equivalents include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions. It also includes investments with short periods to maturity that are readily convertible to cash on hand at the Commission’s option and that are subject to a low risk of changes in value.

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(f) Receivables

Grant revenue is accrued where monies have been spent on a specific project where the related grant has been approved by the grantor but not yet received.

Debtors are recognised at the nominal amounts due at the time of sale or service delivery. Settlement of these amounts is required within 30 days from invoice date.

The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written-off as at 30 June 2009.

Other receivables of the Commission are recognised at their assessed values. Terms are a maximum of three months, no interest is charged and no security is obtained.

(g) Acquisitions of Assets

Actual cost is used for the initial recording of all non-current physical and intangible asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use; including architects' fees and engineering design fees. However, any training costs are expensed as incurred.

Where assets are received free of charge from another Queensland Government Public sector entity (whether as a result of a Machinery of Government or other involuntary transfer), the acquisition cost is recognised as the gross carrying amount in the books of the transfer or immediately prior to the transfer together with any accumulated depreciation.

Assets acquired at no cost or for nominal consideration, other than an involuntary transfer from another Queensland Government Public sector entity, are recognised at their fair value at date of acquisition in accordance with AASB 116 Property, Plant and Equipment.

(h) Property, Plant and Equipment

Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition:

Buildings and Infrastructure $10,000 Land $1 Office equipment and computers $5,000 Items with a lesser value are expensed in the year of acquisition.

(i) Revaluations of Non-Current Physical and Intangible Assets

Where intangible assets have an active market, they are measured at fair value, otherwise they are measured at cost.

Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation reserve of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation reserve relating to that asset class.

On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.

(j) Intangibles

Intangible assets with a cost or other value greater than $100,000 are recognised in the financial statements, items with a lesser value being expensed. Each intangible asset is amortised over its estimated useful life to the Commission, less any anticipated residual value. The residual value is zero for all the department’s intangible assets.

Intangible Assets under construction (work-in-progress) are not depreciated until they reach service delivery.

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(k) Amortisation and Depreciation of Intangibles and Property, Plant and Equipment

Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the Commission.

Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.

Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the Commission.

For each class of depreciable asset the following depreciation rates are used:

Class Rate %

Plant and equipment: - Office equipment 10-20 - Computer equipment 33.3

Intangible Assets: - Software Internally Generated 20

(l) Impairment of Non-Current Assets

All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the Commission determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

The asset’s recoverable amount is determined as the higher of the asset’s fair value less costs to sell and depreciated replacement cost.

An impairment loss is recognised immediately in the Income Statement, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevant class to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Refer also note (i)

(m) Leases

A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits.

Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at the lower of the fair value of the leased property and the present value of the minimum lease payments. The lease liability is recognised at the same amount.

Lease payments are allocated between the principal component of the lease liability and the interest expense.

Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred.

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.

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(n) Payables

Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

(o) Financial Instruments

RecognitionFinancial assets and financial liabilities are recognised in the Balance Sheet when the Commission becomes party to the contractual provisions of the financial instrument.

Classification Financial instruments are classified and measured as follows:

• cash and cash equivalents held at fair value through profit and loss • receivables held at amortised cost • payables held at amortised cost.

The Commission does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, the Commission holds no financial assets classified at fair value through profit or loss.

All other disclosures relating to the measurement and financial risk management of financial instruments held by the Commission are included in Note 22.

(p) Employee Benefits

Wages, Salaries and Sick LeaveWages, salaries and recreation leave due but unpaid at reporting date are recognised in the Balance Sheet at the remuneration rates expected to apply at the time of settlement. Payroll tax and workers’ compensation insurance are a consequence of employing employees, but are not counted in an employee’s total remuneration package. They are not employee benefits and are recognised separately as employee related expenses. Employer superannuation contributions and long service levies are regarded as employee benefits.

For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. For those entitlements not expected to be paid within 12 months, the liabilities are classified as non-current liabilities and recognised at their present value, calculated using yields on Fixed Rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement.

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.

As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Long Service LeaveUnder the Queensland Government’s long service leave scheme, a levy is made on the Commission to cover the cost of employees’ long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears.

No provision for long service leave is recognised in the Commission’s financial statements, the liability being held on a whole-of-Government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

SuperannuationEmployer superannuation contributions are paid to QSuper, the superannuation plan for Queensland Government employees, at rates determined by the State Actuary. Contributions are expensed in the period in which they are paid or payable. The Commission’s obligation is limited to its contribution to QSuper.

Therefore, no liability is recognised for accruing superannuation benefits in these financial statements, the liability being held on a whole-of-Government basis and reported in the financial report prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

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Executive Remuneration The senior executive remuneration disclosures in the employee expenses note (Note 4) in the financial statements include:

• The aggregate remuneration of all senior executive officers whose remuneration for the financial year is $100,000 or more.

• The number of senior executives, whose total remuneration for the financial year falls within each successive $20,000 band, commencing at $100,000.

The remuneration disclosed is all remuneration received or receivable, directly or indirectly, from the entity or any related party in connection with the management of the affairs of the entity or any of its subsidiaries, whether as an executive or otherwise. For this purpose, remuneration includes:

• wages and salaries

• accrued leave (that is, the increase/decrease in the amount of annual and long service leave owed to an executive, inclusive of any increase in the value of leave balances as a result of salary rate increases or the like)

• performance pay paid or due and payable in relation to the financial year, provided that a liability exists (namely a determination has been made prior to the financial statements being signed), and can be reliably measured even though the payment may not have been made during the financial year

• accrued superannuation (being the value of all employer superannuation contributions during the financial year, both paid and payable as at 30 June)

• car parking benefits and the cost of motor vehicles, such as lease payments, fuel costs, registration/insurance, repairs/maintenance and fringe benefit tax on motor vehicles incurred by the agency during the financial year, both paid and payable as at 30 June, net of any amounts subsequently reimbursed by the executives

• housing, being the market value of the rent or rental subsidy, where rent is partly paid by the executive during the financial year, both paid and payable as at 30 June

• allowances (which are included in remuneration agreements of executives, such as airfares or other travel costs paid to/for executives whose homes are situated in a location other than the location they work in)

• fringe benefits tax included in remuneration agreements.

The disclosures apply to all senior executives appointed under the Public Service Act 2008 and classified as SES1 and above, with remuneration above $100,000 in the financial year. ‘Remuneration’ means any money, consideration or benefit, but excludes amounts:

• paid to an executive by the department or any of its subsidiaries where the person worked during the financial year wholly or mainly outside Australia during the time the person was so employed

• in payment of reimbursement of out-of-pocket expenses incurred for the benefit of the entity or any of its subsidiaries.

In addition, separate disclosure of separation and redundancy/termination benefit payments is included.

Commissioners’ Remuneration The Commissioners’ remuneration disclosure in Note 4 in the financial statements includes the aggregate remuneration of the Commissioners’ for the financial year.

The remuneration disclosed is all remuneration received or receivable, directly or indirectly, from the Commission. For this purpose, remuneration includes the annual allowance that the Commissioners’ are entitled to.

The Commissioners’ conditions of employment include entitlement to all necessary and reasonable expenses incurred while travelling on approved Commission business in accordance with State Government industrial relations directives as issued by the Minister for Transport, Trade, Employment and Industrial Relations.

The Commissioners’ are not eligible for a performance bonus.

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(q) Provisions

Provisions are recorded when the Commission has a present obligation, either legal or constructive as a result of a past event. They are recognised at the amount expected at reporting date to settle the obligation in a future period, but where the timing and/or amount required to settle the obligation is uncertain at reporting date, discounted to the present value using the pre-tax discount rate. The amounts recognised as provisions in relation to the dismantling and removal of assets and the restoration of land on which the assets have been located, have been included in the cost of the assets.

(r) Insurance

The Commission’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. In addition, the Commission pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(s) Services Received Free of Charge or for Nominal Value

Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense.

(t) Contributed Equity

Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of Machinery of Government changes are adjusted to ‘Contributed Equity’ in accordance with interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. Appropriations for equity adjustments are similarly designated.

(u) Taxation

The Commission is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax and Goods and Services Tax (GST). As such, GST credits receivable from/payable to the Australian Taxation Office are recognised and accrued.

(v) Issuance of Financial Statements

The financial statements are authorised for issue by the Commissioner and Chief Executive Officer at the date of signing the Management Certificate.

(w) Judgements

The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions that have a potential significant effect are outlined in the following financial statement note:

Contingent Liabilities and Contingent Assets Note 18.

(x) Rounding and Comparatives

Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required.

Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

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(y) New and Revised Accounting Standards

The Commission did not change any of its accounting policies during 2008-09. The significance of those new and amended Australian accounting standards that were applicable for the first time in the 2008-09 financial year, and have had a significant impact on the Commission’s financial statements is as follows.

A review has been undertaken of revised accounting standard AASB 1004 Contributions; and it considers the financial statements adequately reflect the matters required to be disclosed, given the Commission’s present operating circumstances.

The Commission is not permitted to adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from the Treasury Department. Consequently, the Commission has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The Commission will apply these standards and interpretations in accordance with their respective commencement dates.

The Commission will need to comply with a revised version of AASB 101 Presentation of Financial Statements as from 2009-10. This revised standard does not have measurement or recognition implications. However, in line with the new concept of ‘comprehensive income’ in the revised AASB101, there will be significant changes to the presentation of the Commission’s income and expenses that are currently presented in the Income Statement and the Statement of Changes in Equity. Ignoring other potential impacts on the operating result, if the revised AASB 101 was applied by the Commission for 2008-09 reporting, it would have reported comprehensive income of $23.113 million for the year.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the Commission, or have no material impact on the Commission.

xiiiFinancial statements


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2009 20082. Grants and Other Contributions $ $

Grants - State Government 22,726,070 24,956,500Services received at below fair value 13,352 - Total 22,739,422 24,956,500

Operational Funding 16,840,070 12,545,000 Water Restrictions, Target 140 and Communication Campaigns 1,600,000 3,356,500 Institutional Arrangements and Corporate Governance 4,286,000 5,326,000 SEQ Water Grid Manager establishment - 3,729,000

22,726,070 24,956,500

The following represents the breakdown of the Queensland Water Commission's grant funding received from the State Government for the 2008/2009 financial year.

3. Other Revenue

Interest 367,991 38,604Freedom of Information fees and charges 151 255Commissions, discounts and refunds 2,617 1,008Other 2,672 450,251Total 373,431 490,118

2009 2008

4. Employee Expenses

Employee BenefitsWages and salaries 7,836,107 6,031,927Employer superannuation contributions * 834,262 598,335Long service leave levy 136,279 79,025Other employee benefits 33,003 116,188

8,839,651 6,825,475Employee Related ExpensesWorkers' compensation premium * 23,871 16,763Payroll tax * 383,095 263,132Other employee related expenses* 540,779 226,595

947,744 506,490

Total employee expenses 9,787,395 7,331,965

2009 2008Number of Employees: 77 77

The number of employees including both full-time employees and part-time employees measured on a full-time equivalent basis as at 30 June 2009 is:

*Cost of workers' compensation insurance and payroll tax are a consequence of employment, but are not counted in employees' total remuneration package. Accordingly they are not treated as employee benefits, but rather employee related expenses. Employer superannuation contributions and the long service leave levy are regarded as employee benefits.

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4. Employee Expenses (cont.) Executive Remuneration (excluding SES Equivalents) 2009 2008

$120,000 to $139,999 - 1$140,000 to $159,999 - -$160,000 to $179,999 - -$200,000 to $219,999 1 -$240,000 to $259,999 - 1Total 1 2

2009 2008$ $

Total remuneration of executives shown above** 210,374 369,586

** The amount calculated as executive remuneration includes the direct remuneration received, as well as items not directly received by senior executives, such as the movement in leave accruals and fringe benefits tax paid on motor vehicles. This amount will therefore differ from advertised executive remuneration packages which do not include the latter items.

The number of senior executives who received or were due to receive total remuneration of $100,000 or more:

SES Executive Equivalent Remuneration*** 2009 2008

$140,000 to $159,999 1 3 $160,000 to $179,999 3 2$180,000 to $199,999 2 -$200,000 to $219,999 - 2$220,000 to $239,999 1 -$240,000 to $259,999 - -Total 7 7

2009 2008$ $

Total remuneration of executives shown above** 1,249,492 1,220,140

Commissioners' Remuneration

2009 2008$ $

Nosworthy, Elizabeth AO 102,011 87,975 Quinn, Jamie 63,284 54,585 Green, David 63,284 54,585

The tenure for the Commissioners' listed above expired on the 18 June 2009. Following amendments to the

30 June 2009, there was no remuneration made to the newly appointed Commissioner, Mary Boydell.

No payments were made to the newly appointed Commissioner due to timing issues. The Commissioner's annual remuneration is currently $101,080.

Water Act 2000 , the Commission will be chaired by a single Commissioner effective from 19 June 2009. At

The salaries of Commissioners is as follows:

The number of senior officers who received or were due to receive total remuneration of $100,000 or more:

***Executive Remuneration for SES equivalent officers appointed under Section 122 ofthe Public Service Act 2008

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2009 20085. Supplies and Services $ $

Advertising and market research 2,506,717 3,461,941Consultants and contractors 7,961,162 7,693,529Shared service provider 444,129 197,628Other 1,923,376 2,082,022Goods /Services provided below fair value 13,352 -

Total 12,848,737 13,435,120

6. Grants and Subsidies

SEQ Water Grid Manager establishments costs - 3,729,000Total - 3,729,000

$'000 $'0007. Depreciation and Amortisation

Office furniture and equipment 12,839 11,907Computer equipment 22,391 11,493Intangible Asset amortisation - software 253,829 - Total 289,059 23,400

8. Other Expenses $'000 $'000

Operating leases 955,147 537,382Audit fees 173,435 58,354Insurance premiums - QGIF 11,219 8,901Legal expenses 286,347 355,638Other expenses 525 835Total 1,426,673 961,110

9. Cash and Cash Equivalents $'000 $'000

Imprest accounts 800 800Cash at bank and on hand 1,963,439 5,120,859Total 1,964,239 5,121,659

$'000 $'00010. ReceivablesCurrent GST receivable 135,958 480,670 GST payable 1,428 (4,455)

137,386 476,215

Other receivables 270,923 501,868Accrued interest 20,430 - Long service leave central scheme receivable 120,624 -

411,977 501,868Accrued grants and other contributions receivable 1,595,852 -

Total 2,145,215 978,083

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2009 200811. Other Current Assets $ $CurrentPrepayments 98,267 6,593

Total 98,267 6,593

12. Intangible Assets $'000 $'000

Software Internally GeneratedWaterHub Modular Information Management System at cost 1,522,974 -

Less: accumulated amortisation (253,829) - WaterHub Modular Information Management System software development in progress 337,808 958,581

1,606,953 958,581Intangibles Reconciliation

Carrying amount 1 July 2008 958,581 -

Acquisitions 902,201 958,581Amortisation (253,829) -

Carrying amount 30 June 2009 1,606,953 958,581

For the purposes of amortisation, the WaterHub Modular Information Management System development costs will be amortised over five years.

The WaterHub Modular Information Management System is being developed as a tool to collect, monitor and report on regional water information. During 2008-09 development work enhancements totalled $902,201 which included detailed design specifications, module concept planning, database population and the development of the first module called the Bulk Volumetric Point Measurement Tool.

The WaterHub Modular Information Management System will continue to be developed and utilised by the Commission and other South-East Queensland water planning and management entities including the Water Grid Manager and other water grid participants. It is integral to the long-term planning and monitoring of regional supply and demand, providing a centralised reporting capability for collation and distribution of regional water information.

13. Property, Plant and Equipment $'000 $'000Plant and equipment:

At cost 71,179 71,180Less: accumulated depreciation (31,827) (18,989)

39,352 52,191Computer hardware

At cost 75,703 45,081Less: accumulated depreciation (33,545) (11,154)

42,158 33,927

Total 81,510 86,117

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13. Property, Plant and Equipment (cont.)

2009 2008 2009 2008 2009 2008 $ $ $ $ $ $

Carrying amount at 1 July 2008 52,190 50,127 33,927 21,841 86,117 71,968

Acquisitions - 13,971 30,622 23,578 30,622 37,549

Depreciation (12,839) (11,908) (22,391) (11,492) (35,230) (23,400)

Carrying amount at 30 June 2009 39,351 52,190 42,158 33,927 81,509 86,117

TotalFurniture and Equipment Computer Hardware

2009 200814. Payables $ $Trade creditors 839,949 2,652,991Equity withdrawal payable 493,363 - Other payables 1,200 - Accrued expenses for: Advertising and promotions 60,637 18,446 Audit 7,274 30,602 Contractors 749,674 25,442 Consultants 624,550 95,542 Legal - 87,065 Payroll and fringe benefits tax 73,224 42,919 Other accruals 303,200 88,673Total 3,153,072 3,041,680

15. Accrued Employee Benefits $'000 $'000

CurrentRecreation leave 582,379 342,224Accrued salaries and wages 108,305 234,033Long service leave levy payable 226,884 60,002Accrued superannuation payable - 16,485Total 917,568 652,744

Non-CurrentRecreation leave 161,224 170,698Total 161,224 170,698

Total Accrued Employee Benefits 1,078,793 823,442

xviii Queensland Water Commission Annual Report 2008–09


18

16. Reconciliation of Operating Surplus to Net Cash Provided by (Used in) Operating Activities 2009 2008

$ $

Operating surplus/(deficit) (1,239,011) (33,977)

Cash flows excluded from profit attributable to Depreciation expense 35,230 23,400 Amortisation expense 253,829 -

Change in assets and liabilities: (Increase)/decrease in receivables (1,505,960) (44,824) (Increase)/decrease in prepayments (91,674) 2,308 Increase/(decrease) in accounts payable (381,971) (2,320,633) Increase/(decrease) in other accrued benefits 255,350 169,911 Increase/(decrease) in GST input tax credits receivable 338,829 -

Net cash provided by (used in) operating activities (2,335,380) (2,203,815)

17. Commitments for Expenditure $'000 $'000

(a) Operating Lease Commitments Non-cancellable operating leases contracted but not capitalised in the financial statements.Payable:Not later than one year 1,272,810 1,146,869Later than one year and not later than five years 5,660,726 5,679,085Later than five years 4,251,889 5,977,902Total 11,185,425 12,803,856

Office accommodation operating lease:

(b) Operating Expense Commitments

Payable:Not later than one year 1,976,924 -Total 1,976,924 -

(c) Capital Expenditure CommitmentsCapital expenditure commitments

Payable:WaterHub Modular Information Management System 79,554 791,419Total 79,554 791,419

Payable:Not later more than one year 79,554 791,419Total 79,554 791,419

Lease payments are generally fixed with inflation escalation clauses on which contingent rentals are determined and renewal options exist. No operating leases contain restrictions on financing or other leasing activities.

xixFinancial statements


19

19. Events occurring after balance date

nt. he financial effect of this transfer has not been recognised in the financial statements at 30 June 2009.

0. Joint Project

ommission continues to lead the development of the South-East Queensland (SEQ) ater Strategy project.

here were no financial transactions relating to this project in 2008-09.

ere made lease in December 2008. In late November 2008 the Queensland

elayed by several years due to the need to bring forward environmental management initiatives.

announcements directly impacted on the regional water balance presented in the SEQ Water trategy.

r Strategy in 2009 and the strategy is expected to e released in the second half of 2009.

18. Contingent Liabilities and Contingent Assets

There are no contingent liabilities or contingent assets pertaining to the Commission as at 30 June 2009.

Effective from 1 July 2009 the structure of the Commission changed as a result of the transfer of the corporate and communication services into the Department of the Environment and Resource ManagemeT

2

The Queensland Water CW

T

The draft SEQ Water Strategy was released for public consultation in March 2008. Amendments wand the strategy was due for reGovernment announced that:

• Purified recycled water would only be added to Wivenhoe Dam as an emergency source of water. • The construction of Traveston Crossing Dam was likely to be d

Both theseS

Work has been continuing on the finalising the SEQ Wateb

21. Economic DependencyThe Queensland Water Commission remains dependent on continued State Government grants and contributions in 2010-11.

22. Financial Instruments

(a) Categorisation of Financial Instruments

The Commission has categorised the financial assets and financial liabilities held as:

Financial Assets Category

Loans and receivables (at nominal value)Financial Liabilities

Cash and cash equivalentsReceivables

(b) Financial Risk Management

(i) Credit Risk Exposure

The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount of those assets inclusive of any provisions for impairment.

All figures for credit risk referred to do not take into account the value of any collateral or other security.

xx Queensland Water Commission Annual Report 2008–09


20

2009 2008$ $

Financial Assets 1,964,239 5,121,659

Receivables 2,145,215 978,083

Total 4,109,455 6,099,742

Past Due or Impaired

The Queensland Water Commission manages credit risk through the use of sound management practices. These practices aim to reduce the exposure to credit default by insuring that the Commission invests in secure assets, and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on a regular basis. The method for calculating any provisional impairment for risk is based on past experience, current and expected changes in economic conditions, changes in client credit ratings and other relevant considerations.

Maximum Exposure to Credit Risk

The following table represents the Queensland Water Commission's maximum exposure to credit risk based on contractual amounts net of any allowances.

Cash and cash equivalents

22. Financial Instruments (cont.)

(ii) Liquidity Risk

(iii) Market Risk

(iv) Recognition

The Commission manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the Commission has sufficient funds available to meet employee and supplier obligations at all times. This is achieved by ensuring that appropriate levels of cash are held within the bank account so as to match the expected duration of the various employee and supplier liabilities. The contract maturity analysis is disclosed in the Credit, Liquidity and Interest Risk table at the end of this note.

No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated.

The Queensland Water Commission is exposed to liquidity risk through its trading in the normal course of business.

No collateral is held as security relating to the financial assets held by the Queensland Water Commission. No credit enhancements relate to the financial assets held by the Commission.

The Queensland Water Commission does not trade in foreign currency and is not materially exposed to commodity price changes. The Commission is exposed to interest rate risk through its cash deposited in interest bearing accounts. This is the risk that the value of financial instruments will fluctuate as a result of changes in market interest rates and the effective weighted average interest rate on classes of financial assets and financial liabilities. Details are disclosed in the liquidity and interest risk tables. The Commission manages its risk as per the liquidity risk management strategy.

Financial Assets and financial liabilities are recognised in the Balance Sheet when the Commissionbecomes party to the contractual provisions of the financial instrument.

xxiFinancial statements


21


(v) Fair Value

The following table sets out the credit, liquidity and interest risks of financial instruments held by the Queensland Water Commission in a format as it might be provided to management. The maturity amounts relate to the actual contractual payments before a net present value calculationwith the associated adjustment back-to-book value is disclosed.

The carrying amounts of all other financial assets and financial liabilities are representative of their fair value.

The fair value of financial assets and liabilities is determined as follows:The fair value of financial assets and liabilities comprising of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts and are not disclosed separately below.

2009 Credit, Liquidity and Interest Risk Tables

Less than 1 month 1-3 months

3 months to 1 year

1-5 years

Greater than 5 years

Adjust-ment

Carrying amount

Weighted Average

Rate:$ $ $ $ $ $ $ %

Financial AssetsNon-interest bearing 2,134,454 10,762 - - - - 2,145,215Variable interest rate 1,964,239 - - - - - 1,964,239 3.79

Total 4,098,692 10,762 - - - - 4,109,455

Financial LiabilitiesNon-interest bearing 3,153,072 - - - - - 3,153,072Total 3,153,072 - - - - - 3,153,072



3 months to 1 year

1-5 years


Adjust-ment

Carrying amount

Weighted Average

Rate:$ $ $ $ $ $ $ %

Financial AssetsNon-interest bearing 502,668 476,215 - - - 978,883Variable interest rate 5,120,859 - - - - - 5,120,859 5.8

Total 5,623,527 476,215 - - - - 6,099,742

Financial LiabilitiesNonTota

-interest bearing 3,041,680 - - - - - 3,041,680l 3,041,680 - - - - - 3,041,680


21


(v) Fair Value

The following table sets out the credit, liquidity and interest risks of financial instruments held by the Queensland Water Commission in a format as it might be provided to management. The maturity amounts relate to the actual contractual payments before a net present value calculationwith the associated adjustment back-to-book value is disclosed.

The carrying amounts of all other financial assets and financial liabilities are representative of their fair value.

The fair value of financial assets and liabilities is determined as follows:The fair value of financial assets and liabilities comprising of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts and are not disclosed separately below.



3 months to 1 year

1-5 years


Adjust-ment

Carrying amount

Weighted Average

Rate:$ $ $ $ $ $ $ %

Financial AssetsNon-interest bearing 2,134,454 10,762 - - - - 2,145,215Variable interest rate 1,964,239 - - - - - 1,964,239 3.79

Total 4,098,692 10,762 - - - - 4,109,455

Financial LiabilitiesNon-interest bearing 3,153,072 - - - - - 3,153,072Total 3,153,072 - - - - - 3,153,072



3 months to 1 year

1-5 years


Adjust-ment

Carrying amount

Weighted Average

Rate:$ $ $ $ $ $ $ %

Financial AssetsNon-interest bearing 502,668 476,215 - - - 978,883Variable interest rate 5,120,859 - - - - - 5,120,859 5.8

Total 5,623,527 476,215 - - - - 6,099,742

Financial LiabilitiesNonTota

-interest bearing 3,041,680 - - - - - 3,041,680l 3,041,680 - - - - - 3,041,680

xxii Queensland Water Commission Annual Report 2008–09


22

2009 200823. Remuneration of Auditors $ $

(a) Assurance ServicesAudit ServicesQueensland Audit Office for audit of Financial Statements 20,500 35,200

Total Audit Services 20,500 35,200

During the period the following fees were paid or payable for services provided by the auditor of theCommission its related practices and non-related audit firms:

xxiiiFinancial statements

xxiv Queensland Water Commission Annual Report 2008–09

xxvFinancial statements


Term DefinitionCatchment management The area that feeds water into a water source or storage—for example,

rivers, drainage lines or dams—is known as a catchment. Catchments can

supply water for a range of purposes including residential use. Catchment

management seeks to maintain the quality of the water flowing into a

catchment.

Council of Mayors (SEQ) An organisation comprising the mayors of the local government areas of

Brisbane, Gold Coast, Logan, Lockyer Valley, Redlands, Scenic Rim, Somerset,

Sunshine Coast and Toowoomba.

Demand management Any program that reduces water consumption and the demand for water from

the SEQ Water Grid.

Efficient irrigation system A system designed to use water efficiently within the volume and time

limits set by Commission restrictions and operated in accordance with the

Commission’s Efficient Irrigation for Water Conservation Guideline.

Level of Service objectives

(LOS)

LOS objectives provide a basis for establishing a secure water supply. The

objectives define the desirable maximum frequency, duration and severity of

water restrictions, and the average amount of water per capita that must be

supplied in normal times.

Machinery of Government

(MoG)

The term is used to describe organisational or functional changes affecting the

Queensland Government.

ML A megalitre or one million litres

Office of Water Supply

Regulator

The Water Supply (Safety and Reliability) Act 2008 is administered by the

Department of Environment and Resource Management through the Office of

the Water Supply Regulator. The Office of the Water Supply Regulator ensures

that service providers meet regulatory provisions, and manages dam safety,

water supply assets, and water and sewerage service providers.

Permanent water

conservation measures

Post-drought restrictions designed for long-term use across the SEQ region.

They include a mix of requirements for water efficient devices for outdoor

watering and efficient behaviours. They will be introduced from 1 December

2009.

PRW Purified recycled water

Queensland Water

Commission (QWC)

A statutory authority established to advise the Queensland Government on

matters relating to water supply and demand management, and to facilitate

and implement regional water security programs.

Regional water security

program

A program to achieve water security for the region, made and published by the

Minister for Infrastructure and Planning and based on advice provided by the

Commission. A regional water security program was prepared in November

2006.

South East Queensland (SEQ) South East Queensland, as defined in the SEQ Regional Plan.

SEQ Water Grid The group of bulk supply and transport assets that, when operated in

combination, deliver the Level of Service objectives.

Glossary

73

Term DefinitionSEQ Water Grid Manager The SEQ Water Grid Manager is a statutory authority that manages the

operations of the SEQ Water Grid, including the purchase of bulk supply,

treatment and transport services, and the sales of water and water services to

SEQ Water Grid customers.

SEQ Regional Plan South East Queensland Regional Plan 2009-2031

SEQ Water Market Rules The SEQ Water Market Rules came into effect on 1 July 2008 following the

introduction of the Water Supply (Safety and Reliability) Act. The Rules govern

the SEQ Water Market including registration requirements, and roles and

responsibilities of grid participants.

SEQ Water Strategy A plan, prepared by the Queensland Water Commission, to ensure the medium

to long-term sustainability of water supply for SEQ.

Standards of service The characteristics of product delivered by water retailers to their customers.

The Water Act 2000 describes the requirements for establishing standards

of service. Examples of standards of service relate to water quality, delivery

pressure and continuity of supply.

System Operating Plan A plan made under section 360V of the Water Act 2000 to give effect to the

regional water security program. The System Operating Plan describes rules for

operating water supply infrastructure in order to achieve the LOS objectives, as

specified in the regional water security program.

Target 170, Target 200 The terms are used in association with water restrictions to refer to different

targets for residential water use. During High Level Restrictions, the target for

residents was to use less than 170 litres per person per day. During Medium

Level Restrictions the target is for each resident in areas under restrictions to

use less than 200 litres of water per person per day.

Vertical integration Vertical integration describes the ownership or control by a firm of different

stages of the production process.

Water restrictions A water restriction is a ban or constraint put into effect that restricts the use of

water supplies; it can affect all areas of water use in the home, outdoors and

in business, agriculture and industry. Water restrictions may be put in place by

local governments, or by a state government. Restrictions are usually enacted

during droughts, to preserve water for essential uses.

Water Efficiency

Management Plan (WEMP)

A WEMP is a permanent water conservation measure to help businesses and

other non-residential water users assess their current water use and identify

and implement water savings. A WEMP is required for all businesses using

10 megalitres per annum or more, public swimming pools, nurseries, turf farms

and market gardens, and premises with cooling towers.

Glossary

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Access to the Annual ReportThe Annual Report 2008–09 is available on the Commission website at:

www.qwc.qld.gov.au

Feedback and further informationThe Queensland Water Commission welcomes feedback on its Annual Report. For further information please contact:

PO Box 15087

City East QLD 4002

Telephone: 1300 789 906

Email: [email protected]

www.qwc.qld.gov.au

Interpreter serviceThe Queensland Government is committed to providing accessible services to Queenslanders from all culturally and

linguistically diverse backgrounds. If you have difficulty understanding this Annual Report, you can contact us on free call

1300 789 906 and we will arrange an interpreter.

© State of Queensland. Queensland Water Commission 2009

ISSN 1837-4832

QUEENSLAND WATER COMMISSIONANNUAL REPORT 2008–2009

S e c u r i n g o u r w a t e r , t o g e t h e r .S e c u r i n g o u r w a t e r , t o g e t h e r .

PO Box 15087City East QLD 4002Telephone: 1300 789 906Email: [email protected]

www.qwc.qld.gov.au

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