sydney harbour foreshore authority annual report 2006/07 · circular quay lavender bay luna park...

SYDNEY HARBOUR FORESHORE AUTHORITYAnnual Report 2006/07

Contents

Letter to the Minister inside front cover

at a glance 1 Measuring our performance 2 Performance highlights 3 our places 4 Statement by the chairman 6 Statement by the chief executive officer 7

business success 8

Community services 14 Place management 14 Place creation 18 For the people 20

dynamic events 22

Sustainable places 28 Prioritising the environment 28 heritage conservation 33

Corporate governance 36

our people 44

Financial statements 51

appendix 112

index 122

Contact us inside back cover

Letter to the MiniSter

the hon. Frank Sartor MP Minister for Planning Level 34, governor Macquarie tower 1 Farrer Place Sydney nSW 2000

dear Minister

i have pleasure in submitting the annual report for Sydney harbour Foreshore authority for the year ended 30 June 2007.

the report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984, the Public Finance Audit Act 1983 and the regulations under those acts.

yours sincerely

Jon Isaacs

chairman Sydney harbour Foreshore authority

Dr Robert Lang

chief executive officer Sydney harbour Foreshore authority

Cover: Sydney Harbour Foreshore Authority employees at Cumberland dig site, which will become a world-class education centre.

At a glanceWho We areSydney harbour Foreshore authority is a nSW government agency that owns and manages Sydney’s most important heritage, cultural and tourist precincts at the rocks and darling harbour.

With over $1 billion of assets, the Foreshore authority manages significant commercial and retail leases, provides security, cleaning, building maintenance and other facility management services, cares for the public domain and over 100 heritage buildings, and undertakes tourism services, marketing and events that attract more than 41 million visitors* every year.

the Foreshore authority also owns sites at White Bay Power Station, rozelle railway yards and Ballast Point and manages other major waterfront assets around Sydney harbour on behalf of other agencies.

Sydney harbour Foreshore authority was formed in 1999 under the Sydney Harbour Foreshore Authority Act 1998 to consolidate the work and functions of city West development corporation, darling harbour authority and Sydney cove authority.

ProPerty in oUr PrecinctSin the rocks, the Foreshore authority owns and maintains 85 heritage buildings and manages 291 retail and commercial tenants, 144 stallholders of the rocks Market and 26 residential tenants. the rocks is a retail precinct containing numerous shops, restaurants, pubs, museums and hotels for which the authority is the landlord and centre manager. it is also a business precinct with a large number of commercial businesses operating under lease from the authority.

at darling harbour, the authority manages 97 tenancies comprising waterfront cafés, restaurants and bars, contemporary shopping, berths and many of Sydney’s top attractions. darling harbour is a world-class entertainment precinct.

in both precincts, the authority provides tenant services including daily cleaning activities throughout managed buildings, public spaces and public amenities, 24-hour ranger security services and best practice landscaping work in parks and gardens.

the authority also manages 21 tenancies at Pyrmont, rozelle, Lilyfield and White Bay.

VisionTo make unique places in Sydney that the world talks aboutour precincts are unique Sydney icons–the rocks is renowned for its historical and cultural significance and darling harbour is one of the world’s best waterfront entertainment destinations.

PurposeCreating and sustaining living places and great experiencesour key role is to be an expert place maker by managing places profitably and sociably, promoting places effectively, developing places responsibly and managing our organisation efficiently.

charterCommunity• EnhancetheForeshoreAuthority’sareasasaccessible,rich

and diverse environments for all communities, while

Commercial – core and growth• Generateagreedratesofreturnfromexistingbusiness

activities to fund operating costs.

• Meetcommunityserviceobligations,dividendobligationsand basic capital investment requirements.

• Withinacapitalandriskconstrainedenvironment,seekandexploit opportunities to generate future revenue streams.

Economic development• Recogniseandencouragethegenerationofeconomic

benefits to the State and balance these with the need to produce direct financial returns so as to sustain long-term financial viability.

our brandWhat we stand forthe Foreshore authority uniquely adds value to precincts and provides outstanding customer service to stakeholders, including:

• partneringwithtenantstoenablebusinessandprecinctsuccess

• makinglivingplacesandgreatexperiencesforvisitors

• deliveringacommunityservicebycaringfortheforeshoreatthe heart of Sydney–past, present and future

• proudlyworkingwithemployeestomakeadifferenceinourprecincts.

* the number of people movements recorded. See page 26 for details on how figures are calculated.

protecting their natural and cultural heritage.

Visitor• Increasevisitationandyieldwhileexceedingstakeholder

expectations and maintaining accessibility.

1Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07 1

Sydney harBoUr ForeShore aUthority annUaL rePort 2006/072

MeaSUring oUr PerForMance

Strategy Key performance indicator Target Target

2006/07 Result 2006/07 Result 2005/06 Comparison to 2005/06

Financial

consolidate the business profitably

Precinct earnings before interest, tax, depreciation and amortisation (eBitda)*

$12.960 million ✔ $15.718 million $11.558 million 3

increase sustainable revenue streams Precinct revenue growth > 4% ✔ 8.3% 3.2% 3

no budget cost overruns expense overruns 0% ✔ -0.63% 0% 3

Utilise assets efficiently commercial eBitda return on assets 8% ✔ 8.16% 7.6% 3

Manage the business

Focus on continuous improvement

Vacancy rate < 8% ✔ 1.0% 6.3% 3

revenue overdue by more than 90 days < 4% ✔ 0.9% 0.4% 4

ensure a safe and healthy workplace

annual sick days per employee < 4.5 ✘ 5.6 4.6 4

annual reported safety incidents per employee 0 ✘ 0.07 0.11 3

Protect the environmentreduction in energy greenhouse gas emissions and water consumption

energy -6%

Water -5%

✔

✔

energy -8.5%

Water -11.8%

energy -1.2%

Water -6.1%

3

3

Customers and stakeholders

add value to our tenants’ businesses

tenant sales turnover increase > 3% ✔ 6.5% 5.98% 3

Provide excellent service

customer enquiry response time < 3 days ✔ 1.1 days 1.2 days 3

Visitor satisfaction > 8 out of 10 ✔ 8.2 out of 10 8.26 out of 10 4

average Sydneysider visitor spend > $55

✔

✔

the rocks $62

darling harbour $61

the rocks $65

darling harbour: $61

4

increase visitation to our precincts

change in visitor numbers compared to previous year

> 3%

✘

✔

✔

the rocks -2.1%

darling harbour 7.9%

all precincts +4.4%

the rocks +0.5%

darling harbour -1.5%

all precincts -0.8%

4

3

3

improve the visitor experience

average length of Sydneysider visitor stay

2 hours 30 minutes

✔

✔

the rocks 2 hours 48 minutes

darling harbour 3 hours

the rocks 2 hours 42 minutes

darling harbour 2 hours 54 minutes

3

3

Satisfy community expectations

number of safety related incidents per 100,000 visitors

< 5✔

✔

the rocks 0.98

darling harbour 0.28

the rocks 1.4

darling harbour 0.25

3

4

Our people

attract and retain highly competent and motivated employees

training days per employee > 3 ✔ > 3 > 3 3

turnover for full and part-time employees < 15% ✔ 9.3% 9.1% 4

2 * this excludes investment and property, plant and equipment valuations, and defined benefit superannuation.

3Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07

More than 41 million people* visited the rocks and darling Harbour, up 4.4 per cent on 2005/06.

named one of australia’s best employers in the Hewitt best employer awards.

$37.3 million generated in rental revenue from property in the rocks, darling Harbour and surrounds.

PerForMance highLightS

3


invested $35.5 million in revitalising our precincts, including the rocks and darling Harbour.

Paved the way for Sydney’s newest harbour precinct with the barangaroo concept plan approved by the nSW Planning Minister.

awarded for the first water harvesting scheme in Sydney’s Cbd, which has collected more than

2 million litres of stormwater.

Work began to make 86-88 George Street australia’s

first 5 Star green Star heritage building.

Sydney Harbour Foreshore Authority is responsible for Sydney’s most historically and culturally significant waterfront locations as shown on this map.

The care, protection, management and promotion of this land and the important buildings upon it have been entrusted to the Foreshore Authority under the Sydney Harbour Foreshore Authority Act 1998.

Key

Legislative boundaries

Major owned or managed lands

(Boundaries are indicative only)

N

W E

SSydney

Lillyfield

Ballast Point

Blackwattle Bay

White Bay

Rozelle Bay

Barangaroo

Cockle Bay

Walsh Bay

Sydney Harbour Bridge

Farm Cove

Elizabeth Bay

Circular Quay

Lavender Bay

Luna Park

Darling Harbour

Garden Island

King Street Wharf

Balmain

Rozelle

Woolloomooloo

Kirribilli

Pyrmont

The Rocks

Ultimo

Glebe

4 5

Our places

554


StateMent By the chairMani’d like to welcome all tenants, visitors and stakeholders to the 2006/07 annual report from Sydney harbour Foreshore authority. it is with great pleasure that i present our achievements in growing the business, improving customer service and demonstrating leadership in sustainability.

one achievement i am extremely proud of is the Foreshore authority being awarded as one of australia’s best employers in the hewitt Best employer awards. this is a brilliant achievement for the nSW government as it is the first time a public sector organisation has been recognised in this way. i would like to congratulate the ceo and employees for their efforts in making the authority an exciting and engaging place to work.

over the past 12 months, environmentally sustainable development has been a key strategic issue for the Board. the Foreshore authority has stepped up to the challenge of reducing its carbon footprint and addressing the very real climate change issues that we currently face. We have made significant progress in minimising our own impact on the environment and have also taken steps to encourage and assist our tenants to do the same.

innovation was another focus and has now become embedded in the way the Foreshore authority approaches new challenges and continually reassesses the status quo. during the year employees

were encouraged to submit their own ideas on how to improve the business. a number of these ideas have already been implemented, with more to look forward to in the coming year.

in terms of our precincts, the Foreshore authority worked to add value to the reputation of the rocks as a playground for Sydneysiders rather than a place just for tourists. the rocks is a regular part of life for many residents and workers, as well as a must-see tourist destination for domestic and international visitors. this new direction puts forward the best of the rocks for everyone and continues to give vitality to the social history and heritage of australia’s first suburb.

the Foreshore authority was also heavily involved in planning the redevelopment of Barangaroo, the former stevedoring terminal at east darling harbour. the 22-hectare site will restore public access to 1.4 kilometres of harbour foreshore for the first time in over a hundred years and create an 11-hectare headland park. Under the authority’s supervision, the redevelopment will create 30,000 new jobs and involve up to $2.5 billion in construction between 2009 and 2020.

Finally, i am pleased to report that good corporate governance underpinned all of the authority’s impressive financial and business results of the past year. We continued to target best practice in accountability, transparency and probity.

i would like to thank the people of Sydney harbour Foreshore authority– our Board, the executive team and our employees–for making our achievements possible. thanks to the diverse skills, experience and enthusiasm of our people, the Foreshore authority can face the future with confidence. together, we form a solid foundation for the organisation’s ongoing success.

Jon Isaacs

chairman


over the past 12 months, Sydney harbour Foreshore authority has forged ahead in creating sustainable places and dynamic visitor experiences. i am delighted with our progress in business profitability, sustainability, stakeholder partnerships and employee engagement.

a major achievement this year was being named as one of australia’s 23 best employers in the annual hewitt Best employer awards. this was the first time in the awards’ history a public sector organisation has been recognised, which is a credit to everyone in the organisation.

the authority’s drive towards sustainability gathered momentum during the year to reduce the environmental footprint of the rocks and darling harbour. a number of corporate buildings and facilities were switched to 100 per cent green energy, we introduced bicycles to our fleet and began refurbishing 86-88 george Street with the intention of creating australia’s most sustainable heritage building.

We also turned our attention to better engaging with our tenants, visitors and the community. We worked with stakeholders to review our events program, trial outdoor dining on george Street, improve busking conditions at circular Quay and progress plans at Barangaroo.

in terms of our financial performance, we achieved a record 17 per cent growth in our major assets revenue. this growth is a

positive reflection of our contribution to maintaining our assets, including a $50 million upgrade of Sydney convention and exhibition centre. We also generated $37.3 million in rental revenue and secured 39 new leases. these achievements underpinned an outstanding year end result, with another surplus delivered for the authority. Set against a backdrop of declining land sales revenue and section 94 development contributions, these results are particularly pleasing and have allowed the authority to make significant progress towards a financially viable business model.

For the community, we continued to deliver exceptional place management services, with $31.5 million spent on revitalising the rocks and darling harbour. We provided dynamic experiences for around 41 million visitors in safe well-maintained public domain areas, entertained close to 2 million people at our events and supported cultural festivals and educational activities. We continued to preserve historic icons like the argyle Stores and cleland Bond buildings and brought the stories of the past to life in the rocks with australia’s largest heritage mural.

i’d like to thank all our employees for delivering the projects outlined in this annual report. i am supported by an outstanding executive team and highly skilled Board who have consistently found innovative ways to improve the

organisation. the authority is made up of enthusiastic people with the skills and knowledge necessary to meet the challenges that lie ahead.

i look forward to working with my team as we continue to pursue excellence in the places we manage, the services we deliver and the experiences we create for our tenants and visitors.

Dr Robert Lang

chief executive officer

StateMent By the chieF execUtiVe oFFicer


Investment plan invigorates precincts

Sydney harbour Foreshore authority completed the second year of a five-year revitalisation program for the rocks and darling harbour.

Projects totalling $18.6 million were undertaken in the rocks to make the precinct a lively, dynamic and sustainable place for its tenants, visitors and residents. Projects included:

• refurbishinganumberofcommercialbuildings in the precinct to deliver better use and return

• upgradinglightingtoimprovevisitoraccess and safety

• installingaseriesofglasspanels,amural and woodblock paving to bring the stories of the rocks’ past to life.

at darling harbour, $12.9 million was invested in improvement projects including:

• upgradingtheeventspaceat Palm grove

• restoringthe105-year-old Pyrmont Bridge

• refurbishingSydneyConvention and exhibition centre to ensure that it remains australia’s premier convention and exhibition facility.

in addition to meeting financial and investment targets, the Foreshore authority also continues to focus on

meeting the expectations of its tenants, visitors and other stakeholders. Further investment projects will be undertaken in 2007/08 so that both precincts can maintain their leading position in Sydney’s entertainment, tourism and retail sectors.

Low vacancies and rental target met

during the year, the Foreshore authority achieved a record low vacancy rate of less than 1 per cent in the rocks. the authority’s rental revenue target for the precinct was also achieved with more than $27.8 million received.

the Foreshore authority also achieved its rental revenue target for darling harbour, Pyrmont, rozelle, Lilyfield and White Bay, receiving more than $9.5 million in the financial year.

World-class convention centre

the Foreshore authority completed the second year of a $50 million five-year plan to upgrade Sydney convention and exhibition centre. the works are aimed at increasing Sydney’s share of the global conference and exhibition market and increasing visitation to darling harbour.

in 2006/07, $8.4 million was invested in completing a stunning waterfront dining terrace at the Bayside Lounge business centre, as well as upgrading the exhibition facilities, lighting, technology and signage throughout the centre.

in January 2007, the centre also became the first venue in australia to be awarded iSo 22000 certification, recognising its world-class food management systems. the international standard acknowledges that the centre has the highest quality systems in place to ensure the safety of food from the point of delivery through to consumption.

Visitation to Sydney Convention and Exhibition Centre

Market Events Delegates

international 31 23,524

national 495 968,976

Parking just got easier

the Foreshore authority introduced automated ticketing facilities into its entertainment and harbourside car parks at darling harbour in July 2006. at the same time, automated ticketing facilities were upgraded at the authority’s third car park–Promontory car Park at Pyrmont. the new system offers customers faster and more convenient ways to pay for parking–either at automatic payment machines or with a credit card on exit. the system has also saved the authority more than $300,000 and allows car parking staff to spend more time providing security and customer service in the car parks.

Business success

• Invested$35.5millioninrevitalisingourprecincts, including the rocks and darling harbour

• Completeda$7.6millionrefurbishmentoftheArgyleStores and cleland Bond buildings

• RecognisedbytheAustralianInstituteofProjectManagement for being highly skilled in project management

9SYDNEY HARBOUR FORESHORE AUTHORITY ANNUAL REPORT 2006/07 9

Sydney Visitor Centres at Darling Harbour and The Rocks were finalists in the 2006 NSW Tourism Awards.


From warehouse to workspace

a $7.6 million refurbishment of the argyle Stores and cleland Bond buildings was completed in april 2007 to create a new commercial hub in the heart of the rocks. the refurbishment has created more than 3,000 square metres of premium heritage-listed commercial space, retaining the buildings’ unique warehouse appeal.

Both buildings are considered to be of exceptional State heritage significance and refurbishment works included conserving historic timbers, the original stone and brick walls. the project also involved upgrading the buildings’ fire protection systems, electrical services and air conditioning.

the argyle Stores is now a highly successful bar and function space, including the popular the argyle venue. cleland Bond houses a number of leading creative tenants and bel mondo restaurant on the top floor.

Tourism services among State’s best

the rocks discovery Museum, Sydney Visitor centres and the darling harbour australia day Spectacular event were nominated as finalists in the 2006 nSW tourism awards, recognising the Foreshore authority as a top provider of tourism services. the awards acknowledge business excellence in tourism and tourism-related products and services.

the rocks discovery Museum teaches visitors about the area’s exciting history and was nominated in the heritage and cultural tourism category. the Sydney Visitor centres at the rocks and darling harbour were nominated in the general tourism Services and tourism retailing categories and the annual darling harbour australia day Spectacular in the Significant Festivals and events category.

Tapping into global tourism

the Foreshore authority secured more than 115 scheduled appointments with buyers from around the world at australian tourism exchange, australia’s foremost tourism trade event in May 2007. the authority initiated relationships with inbound tour operators and wholesalers and negotiated contracts for selling its tourism products, including the technical insight tours, Sydney Learning adventures and the rocks Pub tour.

the Foreshore authority also showcased the rocks and darling harbour to international tourism suppliers and agents at the australian tourism export council Meeting Place event, the asia-Pacific incentives and Meetings expo and oztalk nZ.

Attracting local business and events

Several marketing activities were undertaken during the year to position the rocks and darling harbour as high value business and event destinations.

in May 2007, the Foreshore authority participated in the australian events expo, australia’s premier events show for meeting and event planners. during the event, the authority created a database of 500 meeting and event buyers to allow promotion of the event and function spaces in the rocks and darling harbour, including Sydney convention and exhibition centre.

the authority continued to promote the rocks and darling harbour on its specialised website www.sydneyforevents.com.au. the website is the key directory of the precincts’ conference and event venues, incentive activities and associated business tourism products and services. hits to the website grew by more than 800 per cent during the financial year.

the authority also provided funding to Sydney convention and Visitors Bureau and worked with the bureau to attract business tourism to the precincts.

The refurbishment of Cleland Bond has created premium heritage-listed commercial space in The Rocks.


Australian creations strengthen sales

the authority expanded the range of australian made and designed products in the Sydney Visitor centres to focus on authentic interpretations of australian culture. By moving away from traditional souvenirs and adding quality products from local emerging businesses, the range has attracted a 12 per cent increase in sales at the centres in the rocks and darling harbour compared to the previous financial year.

in november 2006, online shopping for the Visitor centres was introduced to make it easier for visitors to purchase maps and travel guides before arriving in Sydney, as well as unique australian gifts when they return home. Local customers can also browse and purchase the range of contemporary products at www.sydneyvisitorcentre.com, www.therocks.com and www.darlingharbour.com.

Groups provide valuable feedback

in July 2006, the Foreshore authority commissioned research to identify ways to further boost repeat visitation to the rocks and increase spend by Sydneysiders. Previous research had found that more than 58 per cent of visitors* to the rocks were from Sydney. despite having a higher frequency of visits to the precinct, these visitors were spending less time and money per visit than those from international and other domestic locations.

the focus group results have helped the authority to understand Sydneysider visiting and spending behaviour in the rocks as well as their interest in events. the results were used to develop a new brand for the rocks, which will be launched in late 2007, and plan for future events and activities.

an added benefit of the focus group research was increased recognition and understanding of the rocks and Sydney harbour Foreshore authority brands among participants.

Excellent customer service

a customer Service code of Practice was introduced in June 2007 to help employees provide a professional, timely and efficient service to customers. the code sets standards about the level and quality of service the authority’s customers and stakeholders can expect.

the code also provides guidance to employees on how to manage customer relationships and correspondence including email etiquette, telephone and fax communication.

the authority is focused on responding efficiently and effectively to feedback from tenants and visitors. during the year, 463 reports, requests and complaints were captured in the authority’s customer request management system. Feedback related to various issues, including busking in the rocks, noise and blocked access. the authority responded quickly and equitably, with the majority of issues resolved immediately and the remainder in less than five working days.

the authority also used feedback received during the year to improve service delivery in its precincts. For example, feedback relating to the amplification of busking performances was used by the authority to improve busking for visitors, performers and local businesses. For more information see page 17.

keePing cUStoMerS coMing Backa major Foreshore authority incentive, the Sydney Visitor Pass, continued throughout the year, with 65,000 passes provided to business and leisure tourism visitors including conference and exhibition attendees and cruise passengers. the pass entitles the holder to exclusive leisure, dining and shopping benefits, encouraging activity in the precincts.

the authority also undertook a major promotion with Virgin atlantic, co-branding 10,000 visitor passes for distribution to Virgin atlantic customers in china and hong kong. a similar promotion was undertaken with travelPlan in new Zealand.

club darling harbour, an exciting customer privilege program, continued to attract new members this year with membership growing by 19 per cent to 26,000. the initiative provides special offers across a range of darling harbour’s many attractions including dining, shopping, entertainment and accommodation.

a similar incentive program for the rocks will be launched in late 2007.



Helping tenants conserve heritage

in June 2007, three tenant guides were launched to help new and existing tenants to preserve the commercial heritage space that they occupy. the guides will help tenants and the Foreshore authority work together cooperatively towards heritage conservation.

the Fitout guide for commercial and retail premises in The Rocks guides tenants through the steps for installing or modifying a fitout, including lease conditions, design concepts and approvals.

Your guide to heritage management outlines the cultural significance of the refurbished argyle Stores and cleland Bond and explains how tenants must conserve the buildings’ heritage character. the guide is the first in a series of guides for buildings in the rocks.

a Tenant operations manual was also created for argyle Stores and cleland Bond as a tool for tenants to understand building rules and help ensure the comfort of all occupants.

Online booking system grows market share

during the year, the Foreshore authority secured new customers for its online booking system, Bookrite, recognising the product’s leading reputation in the tourism industry. the booking system is used by visitor centres and tourism operators across australia and new

Zealand and is customised for each client. the authority completed system upgrades for a number of existing clients and made improvements to the general product to make bookings and payments easier to manage.

Chinese Garden a virtual reality

the Foreshore authority launched an online virtual tour of the chinese garden of Friendship in december 2006 to highlight the natural beauty and charm of the garden as a tourist destination and function centre. consisting of four high quality videos, the tour offers an intimate picture of the garden to potential visitors and function organisers. it has been packaged into a souvenir dVd for sale at the garden and is also available on the authority’s website at www.chinesegarden.com.au.

Garden grows in popularity

a record number of functions were held in the chinese garden of Friendship during the year, including 134 weddings and 28 other events. the garden attracted 185,183 visitors, including functions, school groups and other visitors.

in 2006/07, the authority also obtained a licence to serve alcohol during the garden’s trading hours to support a growing demand for daytime functions.

the 1-hectare garden is one of only a few traditional public chinese gardens created outside mainland china.

A leader among place leaders

the Foreshore authority hosted the Place Leaders association annual general Meeting and workshop in May 2007 to showcase its dynamic visitor destinations to leading place manager organisations. during the meeting, presentations and guided tours were conducted for member agencies on heritage preservation and development opportunities in the rocks, darling harbour and Barangaroo.

the Place Leaders association promotes the exchange of information between public sector agencies from australia, new Zealand and Singapore that are managing, developing or renewing significant urban places designed to attract visitors.

Annual report a winner

the Foreshore authority won an australasian reporting awards (ara) Bronze award for its 2005/06 annual report. the award recognises that the authority’s report largely met ara criteria for world best practice annual reporting. the report was recognised for its high quality of disclosure and compliance with legislative and regulatory requirements.

A record number of functions were held at the Chinese Garden during the year.


Delivering successful projects

in december 2006, the authority’s Project Services team received the Project Managed organisation award from the australian institute of Project Management, recognising the authority’s processes and systems to consistently deliver quality projects.

the authority is well-skilled in project management with two employees gaining accreditation as Master Project directors from the australian institute of Project Management and another four as registered Project Managers. a further 36 employees across the organisation completed a three-day project management training program, with 12 progressing to attain a certificate iV in Project Management.

a new Project Management toolbox containing project management resources, checklists and templates, has also been developed to allow a more effective approach to project management. the toolbox is available on the authority’s intranet and can be accessed by all employees.

Securing competitive contracts

during the year, the Foreshore authority began listing tender opportunities on the nSW government etenders website to reach a wider business audience. to improve internal tender management processes, an online contracts register and a new procurement policy and framework were created. a series of interactive workshops was also delivered to employees about probity issues and legislation.

thirty tender processes were conducted in 2006/07, resulting in successful contracts such as the creation of the Bayside Lounge waterfront dining terrace at Sydney convention and exhibition centre and the refurbishment of 86-88 george Street. the awarded contracts have ensured that the authority achieves the best value for money on competitive commercial terms.

in 2007/08, the authority will work towards achieving Procurement accreditation under the nSW government agency accreditation Scheme.

Information technology

two successful disaster recovery tests conducted by the authority’s information technology team indicated that critical business functions could be continued in the event of an emergency or disaster. the authority also achieved a score of four out of five for an internal disaster recovery audit conducted by deloitte in March 2007.

Future directions 2007/08

• Continueafive-yearrevitalisationprogram for the rocks and darling harbour.

• Continuea$50millionfive-yearplanto upgrade Sydney convention and exhibition centre.

• Launchanexcitingcustomerprivilege program for the rocks to encourage repeat visitation.

• AchieveProcurementAccreditationunder the nSW government agency accreditation Scheme.

SPeedy deVeLoPMent aPPLication aSSeSSMentin 2006/07, the Foreshore authority assessed 222 development applications, 30 modifications to development applications and three Part 3a major project applications.

of these, 237 were determined by the authority under delegation from the nSW Planning Minister and the director-general of the department of Planning as outlined in the table below.

the remaining 18 were major applications referred to the Minister for determination.

the total value of work approved was $140.2 million, including $14 million in darling harbour and $19.3 million in the rocks and circular Quay.

Applications determined by the Authority under delegation from the NSW Planning Minister

Applications determined within

40 days

Average determination

time (days)

Median determination

time (days)

development applications 91%* 16.87 10.5

Modifications to development applications 82%* 22 15

* the Foreshore authority set targets to determine 75 per cent of both development applications and modifications to development applications within 40 days. Both targets were exceeded.

Average determination times (days) for development applications compared to local government

2003/04 2004/05 2005/06 2006/07

Sydney harbour Foreshore authority* 28.64 32.4 26.88 20.89

city of Sydney 30.33 39.4 35 not available

nSW local councils 53.4 53.5 43 not available

* includes development applications determined under delegation and major applications referred to the Minister for determination.


First-class event space

the Foreshore authority commenced a $2 million upgrade of Palm grove to create a contemporary event space in the heart of darling harbour. Located near the iMax theatre, Palm grove is a favourite vantage point for visitors during major events, such as australia day and new year’s eve.

the works were designed to create an open amphitheatre, allow temporary seating for 225 people during events and community festivals, and improve access for people with disabilities. new facilities were also installed including a control room and audio system, flexible staging and a performers’ back stage area. Sustainable development practices were used where possible throughout the project, including the use of recycled timber for seating and the control room façade.

the project is due for completion in July 2007.

Light shines on cobblestone laneways

a major lighting upgrade in the rocks to improve visitor access and safety at night and accentuate the precinct’s heritage character was completed in June 2007. energy efficient and lower maintenance lights were installed along historic stairways and in many of the cobblestone laneways, including nurses Walk and globe Street.

Stronger tenant relationships

in early 2007, the Foreshore authority restructured its Property department to improve the way it manages property, leasing and tenant relationships. the changes were in response to a tenant satisfaction survey in September 2006, which found that many tenants wanted a stronger relationship with the authority.

two new place management teams, each led by a general Manager, were created for the rocks and darling harbour providing tenants with a single point of call for all issues. the authority also organised quarterly meetings with tenants and offered guidance on improving retailing and marketing practices.

Resurrecting an age old church

in July 2006, the Foreshore authority commenced a major project to restore and upgrade the former Mariners’ church at 100 george Street. the building dates back to 1859 and is considered to be one of the most distinguished heritage buildings in the rocks.

the refurbishment will provide a leading example of combining adaptive heritage reuse and conservation with excellence in contemporary fitout. When complete, it will house an up-market bar and restaurant complex, complementing the authority’s efforts to improve lifestyle, food and beverage offerings in the rocks. Works are expected to be complete in late 2008.

Showing off Sydney to the world

the Foreshore authority continued to promote its precincts and events, achieving a record high in publicity coverage during the year. exposure was achieved in a range of tourism, trade and specialist publications, as well as metropolitan and regional newspapers across australia.

the Foreshore authority assisted 112 international and domestic media groups to film travel shows, documentaries and news reports in darling harbour and the rocks, leading to worldwide exposure of the precincts. this included Real World, an american reality tV program filmed at darling Walk in darling harbour. the program will be aired in 2007/08 to an expected audience of 150 million people.

Historic carousel spins on

refurbishment works to the 110-year-old heritage-listed carousel at darling harbour were completed in June 2007. the works to the popular children’s ride will ensure the carousel’s continued operation and preservation.

Located on the darling harbour concourse under the western distributor, it is a rare example of a complete and intact edwardian carousel. it was purchased second-hand and imported to australia

Community services

PLace ManageMent

• Invested$34millionincommunityserviceobligationsinourprecincts

• Invested$2milliontocreateaneweventspaceatDarlingHarbour

• HonouredJackMundeyinTheRocks


More than 95,000 people visited The Rocks Discovery Museum to learn about the area’s fascinating past.

15


Children can enjoy the 110-year-old heritage-listed carousel at Darling Harbour for years to come thanks to its ongoing maintenance.

Jack Mundey fought to protect historic buildings in The Rocks.

from the Uk in 1894 by thomas kale who had it refurbished around 1910. darling harbour authority, a predecessor of the Foreshore authority, purchased the carousel in 1986.

Jack Mundey Place

the Foreshore authority has named a place in the rocks in honour of one of Sydney’s most influential heritage conservationists and environmentalists, Jack Mundey. Launched in May 2007, Jack Mundey Place is located on the corner of kendall Lane and argyle Street. the location marks the spot where Mundey and others fought to protect historic buildings in the rocks and the rights of the local community during the green Bans of the 1970s.

a name plaque is located on argyle Street, near the corner of kendall Lane, recognising Mundey’s extraordinary efforts. information and photos of Mundey and the green Bans will be installed along kendall Lane in the coming year to further highlight the site’s significance.

Reaching out in cyberspace

as a service to both visitors and tenants, www.therocks.com and www.darlingharbour.com sites were overhauled to make them more user-friendly and interactive. relaunched in July 2006, the sites now offer an online shop and tour bookings. other features

include interactive maps, event calendars, special deals and information about where to shop, eat, drink and stay.

the graph below shows that visits to the Foreshore authority’s websites have continued to increase over the past five years. given the growing importance of a good online presence, the new websites will help to further this upward trend.

the authority also distributes its quarterly newsletter, tenant newsletters and e-cards for events using email to enable more sustainable and effective communication with tenants, stakeholders and visitors.

Free Wi-Fi attracts visitors

the Foreshore authority established a free wireless internet service in the rocks between Sydney harbour Bridge and circular Quay to help attract more cBd professionals to the precinct and encourage business growth. Visitors with wireless enabled devices like laptops, notebooks and blackberries can access the high speed service for 30-minute blocks.

available both indoors and outdoors, the free service brings Sydney into line with major tourist destinations around the world including new york, London and Paris.

0

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www.therocks.com www.darlingharbour.com www.shfa.nsw.gov.au

Visits to the Foreshore Authority’s websites in 2006/07


Encouraging busking

in May 2007, the Foreshore authority introduced an interim busking policy for the rocks and circular Quay to encourage and manage busking activities that contribute colour and life to its precincts. the policy supports busking while also minimising any issues associated with buskers operating in public spaces.

the authority introduced the policy following a city of Sydney council decision in august 2006 to divest itself of responsibility for buskers in the authority’s precinct.

in May 2007, the authority began working closely with the Sydney Metropolitan australian aboriginal Street theatre association to identify ways to promote aboriginal culture through busking activities.

in the coming year, the Foreshore authority will continue to work with all buskers and businesses at the rocks and circular Quay to review the interim policy and investigate how busking can be improved for performers and visitors.

Dining in the fresh air

a trial of alfresco dining along george Street and part of argyle Street in the rocks commenced in February 2007. the initiative was aimed at offering a new visitor experience and additional commercial opportunities for tenants.

Prior to commencing the trial, the Foreshore authority consulted with the rocks chamber of commerce, tenants, nSW Police, the roads and traffic authority and outdoor dining experts to ensure public safety and the precinct’s heritage characteristics were maintained. the authority will review the trial’s success in late 2007 to determine the best way to manage and encourage outdoor seating in the rocks.

the trial capitalises on the authority’s project to widen the footpath along george Street, which was completed in September 2006.

Going up-market

Visitors to the rocks Market increased to 1.4 million people* during the year, up by 17 per cent on the previous year.

Plans are underway to renew the market in 2007/08 in response to feedback from visitors and stallholders. improvements will aim to deliver a world-class experience to both tourists and Sydneysiders and will include expanding the product mix and changing the market layout to incorporate other parts of the rocks.

Rangers close at hand

the Foreshore authority established a new security control room in the rocks as part of an $840,000 project to make the precinct safer for visitors. Security services, which were previously provided by contractors, were brought in-house to improve the quality and level of service.

the central location of the control room at the rocks centre allows rangers to be quickly dispatched to specific locations to manage incidents and emergencies. rangers monitor and manage crowd numbers and movements in the precinct 24 hours a day, seven days a week, using 14 closed-circuit television cameras.

Signs balanced with heritage

during the year, additional directional signage was installed in the rocks to make it easier for visitors to find their way around. the authority also worked cooperatively with tenants to ensure that new commercial signage has a positive impact on the precinct’s heritage.

the improvements are in line with a revised Signage Policy for the rocks, adopted in august 2006. the policy, which outlines planning, design and installation requirements, allows better management of visitor wayfinding and commercial signage in a way that respects the heritage character of the rocks.


• InstallstoryboardsatJackMundeyPlace to highlight the site’s significance.

• Reviewtheoutdoordiningtrialinthe rocks to determine the best way to manage outdoor seating.

• RevitaliseTheRocksMarket.

PUB toUr goeS SeVen daySin 2006/07, the rocks Pub tour led 2,458 visitors through the cobblestone lanes and unique history of the rocks and into some of Sydney’s favourite pubs.

initially operated for four days per week, the tour was extended to seven days in august 2006, resulting in a 49 per cent increase in patronage and a 36 per cent increase in revenue on the previous year. during the year, the tour also featured on channel 7’s The Great Outdoors and The Discovery Channel.

The Rocks Pub Tour visitation trends

2003/04 2004/05 2005/06 2006/07

number of tours 252 231 215 328

Visitor numbers 1,273 1,941 1,645 2,458

recommendation rate 98% 100% 99% 99%

revenue $32,168 $48,335 $49,736 $67,704



Barangaroo sets global benchmark

the Foreshore authority will be responsible for creating Sydney’s newest harbour precinct at east darling harbour. during the year, the authority finalised a concept plan for redeveloping the 22-hectare container terminal, now known as Barangaroo. the plan was the culmination of 18 months of planning and design development by the authority in consultation with other State government agencies and industry and community groups. it was approved by Planning Minister Frank Sartor in February 2007.

in 2006/07, the authority also:

• investigatedopportunitiesformaximising environmentally sustainable design principles across the site

• conductedanamingcompetitionforthe site, with Barangaroo announced as the winning name in october 2006 by the Planning Minister.

Darling Walk renewal progresses

in February 2007, the Foreshore authority commenced the third of a four stage tender process to renew darling Walk, the former home of Sega World at darling harbour.

covering approximately 15,000 square metres, the site is one of the largest commercial development opportunities in the Sydney cBd. When complete, the new development will provide 59,000 square metres of commercial space balanced by community open space, areas designated to family activities and some retail.

the Foreshore authority prepared urban design guidelines to assist proponents to prepare final submissions for the redevelopment. the guidelines set design controls for building form and heights, floor areas and car parking.

PLace creation

Barangaroo WiLL:• Restorepublicaccessto1.4kilometresofharbourforeshoreforthefirsttimein

more than a century

• Createan11-hectareheadlandpark

• Deliverworkspacefor15,000workers

• Reunitethecitywithitswesternedge

• Incorporateworld-classenvironmentallysustainabledesigninitiatives

• Establishanewglobalbenchmarkforurbanwaterfrontrenewalandasustainableurban precinct

• Involveupto$2.5billioninconstructionbetween2009and2020

• Create30,000newjobsduringconstruction.

19SYDNEY HARBOUR FORESHORE AUTHORITY ANNUAL REPORT 2006/07

New opportunities for Callan Park

In June 2007, the NSW Planning Minister, The University of Sydney and the Foreshore Authority signed a non-binding Memorandum of Understanding to explore opportunities for an increased University presence at Callan Park. The University’s Sydney College of the Arts currently occupies buildings in the heritage Kirkbride Block. The Department of Health is relocating its mental health facilities at Callan Park to Concord Hospital in 2008, creating new opportunities for the site in line with the Callan Park (Special Provisions) Act 2002.

Located in Rozelle, the site is of heritage and cultural significance and contains important buildings, structures and gardens. It covers 61 hectares including approximately 47 hectares of open space.

In June 2007, the NSW Government appointed the Foreshore Authority to prepare a draft master plan for Callan Park. The plan will recognise the park’s community, heritage and cultural significance while considering an expansion of The University of Sydney’s presence. The draft master plan is expected to be completed by the end of 2007 with a final master plan approved by the Planning Minister in the first half of 2008.

The Minister has also established a community reference panel to provide feedback on the master planning process. The panel includes representatives from community groups, Leichhardt Council, Friends of Callan Park and State Government and non-government organisations.

Harbourside park at Ballast Point

The Foreshore Authority continued its project to transform Ballast Point, Birchgrove, into a new harbourside park. The former Caltex site will be renewed as a 2.5-hectare green headland which, in conjunction with Balls Head, will form a green gateway to the Parramatta River.

The master plan for the site considers its industrial heritage and regional significance, balancing the expectations of the local community, neighbours and the broader interests and needs of the city.

A detailed design for the park was finalised in July 2006, which includes passive recreation, emphasises the site’s heritage and incorporates sustainability features. Planning Minister Frank Sartor approved a project application for the park’s construction in August 2006.

During the year, Caltex continued demolition and remediation works on the site, which are due for completion in late 2007. The park’s construction will follow. The Authority has appointed Landscape Solutions to create the park, with completion expected in late 2008.


• Continueworkto:

– reinvent Barangaroo

– renew Darling Walk

– develop a master plan for Callan Park

– create a park at Ballast Point.


Investing in places for people

during the year, the Foreshore authority spent $19.4 million on social and non-commercial activities as place manager of Sydney’s significant waterfront precincts and custodian of some of the city’s most valued natural and cultural heritage.

this operational expenditure provided safe, secure, clean and well maintained public spaces for more than 41 million people*. it also delivered heritage maintenance, environmental planning, event management for social, community and celebratory activities, two visitor information centres, and educational services including the rocks discovery Museum.

in addition, the authority’s total capital expenditure in social programs and non-commercial activities was $14.6 million during 2006/07. this included investing in a new contemporary event space at Palm grove in darling harbour, completing a major lighting upgrade in the rocks, providing free wireless internet service to visitors to the rocks and installing a solar power system at Sydney entertainment centre.

the Foreshore authority also maintains two significant semi-commercial assets, the chinese garden of Friendship and Sydney convention and exhibition centre, which generate over $350 million each year for the nSW economy.

Teaching about place management

ten groups participated in the Foreshore authority’s technical insight tours during the year, including government officials, precinct development authorities, tourism organisations and conference delegates from australia, new Zealand, china, korea, thailand and Japan.

the guided tour and presentation provide valuable insights into how the authority delivers excellence in place management, waterfront development, sustainable public spaces, tourism promotion and generating income within a government framework. internationally renowned as one of the world’s first major waterfront redevelopment projects, darling harbour continues to attract interest among overseas urban planners.

the Foreshore authority also provided personalised tours for ministers and government officials from the French republic, hellenic republic, indonesia, iraq and the kingdom of Bahrain.

Promoting indigenous understanding

during the year, the Foreshore authority established a partnership with dunghutti-yuin grandmother, Margret campbell, to create an aboriginal heritage program for Sydney Learning adventures. Led by an aboriginal guide, The Rocks Dreaming teaches students how modern Sydney and the aboriginal dreaming remain connected.

a second program exploring Sydney harbour from an aboriginal perspective, Bangabaoui: Aboriginal Cultural Harbour Cruise, experienced a 110 per cent increase in participation during the year.

Sydney’s aboriginal history is further captured in the rocks discovery Museum, which traces the history of the area from pre-european times to the present day. the exhibition examines the relationship of the traditional landowners, the cadigal people, with their environment before the arrival of europeans and the impact of european settlement on their way of life.

Museum popularity soars

the rocks discovery Museum attracted more than 95,000 people during the year, exceeding the authority’s target by 17 per cent. Visitors rated the museum highly with an average satisfaction score of 8.5 out of 10.

Since opening in december 2005, the museum has drawn thousands of tourists and schoolchildren into the rocks to learn about the area’s fascinating past. the museum features 22 interactive exhibitions and an exceptional collection of images and archaeological artefacts.


Children enjoying the wonders of an archaeological dig site at Kids Dig in The Rocks Discovery Museum.

For the PeoPLe


Kids dig game

in april 2007, the Foreshore authority introduced a school holiday program to the rocks discovery Museum to attract visitors aged four to 12. kids dig is a hands-on, fun-filled event that simulates a real archaeological dig site. Using special brushes and sifters, children dress up as junior discoverers and uncover real objects buried within a safe and clean rubber ‘soil’. kids dig will continue until mid-2008.

Online archaeology fun

a new computer game to encourage young people to learn about archaeology was launched in September 2006. in The Rocks Discovery Dig game players are guided by virtual archaeologist dr Wayne Johnson from the Foreshore authority to collect rare artefacts, all of which are on display in the rocks discovery Museum.

the first three levels of the rocks discovery dig game can be played in the museum and online at www.rocksdiscoverymuseum.com and www.therocks.com for free. the complete game is available for sale at the museum shop and the Sydney Visitor centre in the rocks, as well as online at www.therocks.com.

Living breathing classrooms

the authority’s Sydney Learning adventures’ team entertained and educated more than 14,700 students in 2006/07, a 4.6 per cent increase on the previous year. the Sydney Learning adventures’ team provides more than 20 different excursions in the rocks, darling harbour and Pyrmont for primary, secondary and english as a Second Language students.

a number of new adventure programs were introduced during the year, including Chinese Whispers, which teaches primary students about chinese heritage in australia through interactive tours of the chinese garden of Friendship and chinatown.

the Sydney Learning adventures website www.sydneylearningadventures.com.au was also relaunched during the year with user-friendly areas for teachers, tourism operators and school holiday programs. teachers can download resource packs with suggested pre and post excursion activities and relevant curriculum links.

Backing the community

the Foreshore authority provided approximately $660,000 to community groups and charities through venue and production equipment support and other

services during the year. the authority’s specialist events team worked at various community events, with labour provided under cost recovery arrangements. Supported events included Buddha’s Birthday celebrations and the Brazilian, indian, thai, Lebanese and Malaysian festivals.

another $480,000 of in-kind support was provided to the city of Sydney for new year’s eve celebrations in the rocks as crowd control, security, waste management and logistics services.

the authority also contributed $775,000 in sponsorships in 2006/07, including:

• $250,000toTheNationalTrust

• $150,000toSydneyFestivalLimited

• $125,000totheCityofSydneyfor new year’s eve fireworks.

Better services for people with disabilities

the Foreshore authority completed a number of new projects to improve facilities for people with disabilities during the year. these included:

• installingrampsatthenewPalmGroveevent space in darling harbour and at the circular Quay entrance to the Museum of contemporary art

• completingtheDawesPointseawallrestoration project to provide a fully accessible promenade from circular Quay to Pier 1 at Walsh Bay

• upgradingtheArgyleStoresbathrooms to allow access for people with disabilities

• installingtwonewwheelchairaccessible phone booths in the rocks on atherden Street and argyle Street.

employee training on disability issues and legislation continued throughout the year. Participants included refurbishment project managers and maintenance and customer service employees. in 2007/08, the authority’s graphic designers, marketing specialists and web developers will also be trained in best practice design and delivery of information for people from different disability groups.

the authority’s internal disability contact officer continued to be available to manage any issues raised by customers about accessibility. the authority received one verbal complaint during the year regarding difficult physical access in the rocks. the Foreshore authority’s rangers were able to assist the person at the time and no formal complaints were lodged.


• ContinuetoimproveTheRocks and darling harbour for visitors by investing in social and non-commercial activities.

• Continuetosupportcommunityevents, charities and arts and heritage activities.

• Providetrainingforemployeestoensure best practice design of information for people from different disability groups.

eMPLoyeeS teaM UP to Lend a handthe all-round skills of the Foreshore authority’s employees came to the fore when a school excursion to darling harbour met with misfortune.

a group of around thirteen special needs students was on a visit to Sydney Wildlife World when one student fell ill and had to be escorted to hospital by the group’s teacher. the remaining children were left in the care of a student teacher. as a qualified teacher was required to provide supervision during an excursion–and the school was too far from the city for a replacement teacher to be sent–the excursion ground to a halt.

after the situation was brought to the attention of the Foreshore authority’s rangers, employees from across the authority quickly banded together to find a solution.

the authority’s Senior Place Manager in darling harbour, emma donohue, invited the group into the darling harbour office where they were entertained by Valerie astalos, Place Manager, and Melissa Lee, acting receptionist, while options to continue the excursion were explored.

thankfully, Melinda Loe, educational Services and tours Manager, was only too happy to offer her qualified teaching skills to supervise the group. to the delight of everyone involved, it wasn’t too long before the children were lost in the wonders of australia’s wildest plants and animals.


The Rocks Aroma Coffee Festival

the largest coffee festival in the southern hemisphere, the rocks aroma coffee Festival, was celebrated for a ninth year in July 2006. the irresistible aroma of coffee drew around 90,000 people* to the rocks to enjoy the event.

the Festival provided a unique setting to showcase australian coffee roasters and plantation owners, with coffee tasting for $1 a cup very popular among crowds. other highlights included the domestic coffee Machine expo, coffee workshops, the turkish coffee house and four stages of live music and dance.

Winter Concert Series

the darling harbour Winter concert Series attracted close to 45,000 visitors* with musical spectaculars over three Saturday nights in July 2006. dein Perry’s international dance superstars tap dogs kicked off the series followed by the Whitlams and Peter cousens. each Winter concert culminated in a specially choreographed fireworks finale.

Darling Harbour Fiesta

More than 290,000 revellers* converged on darling harbour over the october 2006 long weekend for the 15th annual darling harbour Fiesta, australia’s biggest Latin festival. around 300 performers entertained visitors at harbourside aquashell and tumbalong Park and roving entertainers wandered throughout

the precinct. the event featured performances by Mexican mariachis, Latin bands, flamenco dancers, capoeiristas and Brazilian carnival girls. the entertainment was complemented by Latin american-inspired food and arts and crafts stalls. the event is now firmly established as one of the biggest and best parties on the Sydney event calendar.

the Foreshore authority introduced a vibrant new marketing campaign this year to promote Fiesta to its core audience of Sydneysiders aged 18-39 years. the results showed with an 8 per cent increase in visitors within the target age group and a 5 per cent increase in visitation compared to the previous year.

Markets by Moonlight

For the sixth year running, the rocks Markets by Moonlight proved a unique outdoor shopping experience for visitors to the precinct with local and international food stores, an open-air bar and live music.

held every Friday evening in november, the event is now recognised as one of Sydney’s key springtime events. around 84,000 people* attended the four nights of Markets by Moonlight in 2006, an increase of 21 per cent compared to 2005. research during the event showed that 96 per cent of Sydney visitors would attend the event next year.

this year’s markets featured 40 stalls with a wide range of australian-made homewares, jewellery, arts and crafts and novelty items. Performers included Mark Seymour, James reyne, dragon and Jenny Morris, richard clapton, daryl Braithwaite, Mark Sholtez and christine anu.

Merry Christmas

a Starlight Foundation Wish child kicked off christmas celebrations in the rocks by lighting its spectacular christmas tree in november 2006. entertainment included one of australia’s best contemporary jazz bands, etypejazz, and Mc Jude Bowler.

Festivities continued throughout december with carollers, street performers and free cooking demonstrations by head chef of Pony dining damian heads and costi’s Famous Fish café.

the Foreshore authority produced a mini christmas gift guide for the rocks to highlight the range of gifts available, which was distributed throughout the cBd and neighbouring suburbs to entice local christmas shoppers.

the christmas tree at darling harbour was lit by a Starlight Foundation Wish child. entertainment included performances by young divas and guy Sebastian as well as a fireworks spectacular.

Dynamic events

• Around1.4millionpeople*attendedeventsatDarlingHarbour

• Closeto600,000people*enjoyedeventsatTheRocks


23Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07Hoopla, Darling Harbour. 23

An exciting calendar of events brings colour and life to our precincts.


the celebrations continued every weekend in december with a Where’s Santa? hide-n-seek game that had children exploring darling harbour’s attractions in pursuit of Santa. christmas workshops with decoration making and a dress-up parade, and carolling with big bands, jazz maestros and choirs, also featured in the lead up to christmas.

New Year’s Eve parties

darling harbour hosted Sydney’s biggest new year’s eve party with a seven hour program of live music, children’s shows and two fireworks spectaculars. around 174,000 people* joined in the countdown, enjoying action packed programs at Palm grove and the harbourside amphitheatre.

highlights included performances by urban songstress Jade Macrae, internationally-renowned jazz musician James Morrison, r’n’B funksters Brown Sugar, Jackie orszaczky and glass. at 9pm and again at midnight, a memorable display of pyrotechnics welcomed in the new year.

at the rocks, new year’s eve was celebrated by around 131,000 people* who came to enjoy a stunning harbour fireworks display and revel in the local restaurants and bars. Sydney harbour Foreshore authority sponsored the 9pm city of Sydney Fireworks and also provided crowd control, security and waste management services.

Australia Day celebrations

Sydneysiders showed their love for our national day with record crowds of more than 350,000 people* flocking to the rocks and darling harbour to celebrate australia day 2007.

a brand new event was held in the rocks with five stages of local blues, roots and rock acts. close to 133,000 people* came to the rocks to see live australian music including alex Lloyd, Josh Pyke, holly throsby and the audreys. Some of the country’s top buskers also played throughout the precinct.

at darling harbour, more than 218,000 people* enjoyed a day of entertainment, including live acts, international food and interactive shows. australia’s Paul Mac performed along with bands tyrone noonan and old Man river. celebrations culminated in the annual darling harbour Spectacular, which featured pyrotechnics, light and music and a fireworks display over cockle Bay as the grand finale. the Spectacular also featured an aboriginal Welcome to country ceremony and new citizen stories.

Hoopla

Visitors to darling harbour over the 2007 easter long weekend enjoyed hoopla, australia’s premier outdoor circus and street theatre festival. the fun-filled family weekend presented a world-class line-up

of aerial acrobats, speed jugglers and wizardry, and an interactive circus workshop for kids. despite occasional rain, the festival was attended by around 170,000 people*.

highlights included the chipolatas from the Uk, theatre performers dislocate, comic, rapper and juggler Joel Salom, and the Flying Fruit Fly circus with the world premiere of their new acrobatic show, Beach Party.

Jazz and Blues Festival

the 17th annual darling harbour Jazz and Blues Festival was held on 9-11 June 2007, meeting with some of the worst weather that Sydney had experienced all year. heavy rain and gale force winds forced the cancellation of half of the scheduled performances on the first day of the festival. despite the unfavourable conditions, 206,000 music lovers* turned out over the long weekend to enjoy a number of international and local acts.

highlights included performances by kate ceberano, US Jazz diva Barbara Morrison, Mahalia Barnes and the hands and US bluesman eugene hideaway Bridges. For the first time, the festival also featured daily jazz workshops hosted by top local musicians and showcased jazz student ensembles from the Sydney conservatorium of Music.

The Rocks Australia Day.



the Foreshore authority also expanded the festival this year to include a licensed Jazz Bar featuring food and wine stalls from new South Wales’ famous Southern highland region.

Events review

the Foreshore authority completed a comprehensive review of its events program during the year to ensure that it continues to meet the changing needs of the community and stakeholders.

the review confirmed that over the last four years art on the rocks and the Winter concert Series were declining in popularity and attracting a diminishing number of visitors. the authority also discussed the viability of its events with tenants and visitors, with both groups expressing an interest in new events.

as a result, from 2007, art on the rocks and the Winter concert Series will no longer be held. a number of new and exciting future events are being explored, including an arts event for 2008/09. a new event to celebrate the chinese Moon Festival will be held at darling harbour in September 2007.

Darling Harbour Jazz and Blues Festival.

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heavy rain was experienced during these events in 2007.


Attendance at the Foreshore Authority’s events


Support for other events

during 2006/07, Sydney harbour Foreshore authority also supported the following major events:

Sydney International Boat Show

For six days in august 2006, darling harbour hosted the 39th annual Sydney international Boat Show. organised by the Boating industry association of nSW, the event attracted around 85,000 international and domestic visitors to the precinct. Millions of dollars worth of luxury craft, power boats, engines, electronics and marine equipment were displayed and sold at cockle Bay Marina and Sydney convention and exhibition centre by more than 300 exhibitors.

Chalk the Walk

Forty leading australian and international pavement artists gathered at darling harbour to take part in the 2nd annual chalk the Walk Pavement art Festival in September 2006. Sydney harbour Foreshore authority sponsored the festival, which saw artists turn the Pyrmont Bridge walkway into Sydney’s largest outdoor canvas. tens of thousands of people came to browse the artworks and children enjoyed drawing workshops and entertainment. the festival raised $4,000 for the charity youth off the Streets.

Sydney-based artist gary Simon Jagamarra won the title of champion Pavement artist and the People’s choice award. Jamieson Lawrence received the highly commended prize.

The Ashes Super Screens

Between november 2006 and February 2007, two large outdoor screens were erected in tumbalong Park at darling harbour and First Fleet Park at the rocks for free live screenings of the ashes cricket series between australia and england. the alcohol-free site was popular among lunchtime and after-work crowds. the live site also screened 20/20 and one-day cricket matches, numerous cricket-related programs and the australian tennis open.

Global Family Weekend

as part of Sydney Festival in January 2007, tumbalong Park hosted the energy australia global Family Weekend. three special evening events were held to introduce children to music, dance and animation. this was the first time that darling harbour was involved in Sydney Festival celebrations.

Harbour Bridge turns 75

the 75th anniversary of Sydney harbour Bridge in March 2007 was a huge success for the rocks and darling harbour, with tens of thousands of people spending time in the precincts after walking across the bridge.

close to 120,000 people* came to the rocks, making the day almost as big as australia day for Sydney’s heritage quarter. the Foreshore authority provided free live entertainment on george Street and offered free tours of the historic Merchants house, with approximately 400 people learning about the grand georgian terrace and its history.

darling harbour featured a day of live entertainment that also celebrated the 75th anniversary of broadcasting by australian Broadcasting corporation and was attended by around 97,000 people.*


• Exploreneweventstoattractfirsttime visitors to the rocks and darling harbour.

• PresentaMoonFestivaleventatthechinese garden in September 2007.

* the number of people movements recorded. See above for details on how figures are calculated.

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Jul Aug Sep Oct Nov Dec Jan

2006/07

Feb Mar Apr May Jun

The Rocks Darling Harbour

Monthly visitation in The Rocks and Darling Harbour

What are PeoPLe MoVeMentS?electronic people counters are installed in key locations in darling harbour and the rocks. the counters emit an infrared beam and each time a pedestrian breaks the beam a people movement is registered. calibration and expansion calculations are applied to raw counts to ensure that final figures estimate total pedestrian flow into the precinct. these figures do include repeat visits made by visitors, workers and residents.

• InTheRocks,approximately13.7millionpeoplemovementswererecordedin2006/07, with people enjoying the entertainment, shopping and dining experiences on offer.

• InDarlingHarbour,approximately27.5millionpeoplemovementswererecorded in 2006/07, with people enjoying international conventions, attractions and events in the precinct. this is an increase in visitation of 8 per cent on the previous year.

27Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07Darling Harbour Fiesta. 27

Close to 2 million people* attended the Foreshore Authority’s events

during the year.


On target for Green Star first

in december 2006, the Foreshore authority commenced a refurbishment of the building at 86-88 george Street to create sustainable commercial office and retail space in a premium heritage setting.

the authority has submitted a green Star application for the refurbishment to the green Building council of australia and is targeting a 5 Star green Star australian excellence rating. the outcome will be known in late 2007.

the building’s sustainability features will lead to energy savings of up to 40 per cent and a potable water reduction of up to 85 per cent. key initiatives include:

• maximisingdaylightforoccupantsandusing energy efficient lighting to reduce energy consumption

• usingpaint,carpetandotherfinisheswith low volatile organic compound content to reduce emissions and provide a healthier indoor air quality for occupants

• independentlymeteringandmonitoring water and energy services to encourage individual tenants to use resources wisely

• cyclistfacilities

• waterefficientfixturesandfittingstoreduce water consumption

• airconditioningbasedonadistrictwater cooling system

• divertingmorethan80percentofconstruction waste from landfill for recycling and reuse.

other works include installing a new lift, upgrading services and enhancing the adjacent public space at Bushells Place where a new cafe/restaurant will be located.

the commercial space will be largely completed in late 2007 and will attract premium tenants to the precinct. it will have the potential to deliver positive flow-on effects to other commercial space in the rocks.

CEO on Barangaroo benchmark

during the year, the Foreshore authority’s ceo, robert Lang, delivered a series of presentations about Barangaroo’s potential to set a new world benchmark in sustainable waterfront renewal.

dr Lang presented at the green cities conference in February 2007. the authority was an associate sponsor of the conference, which was held at Sydney convention and exhibition centre.

dr Lang was also a keynote speaker at the Waterfront development conference in abu dhabi in May 2007. the conference was one of two presented as part of the cityscape abu dhabi exhibition, an annual exhibition which was attended by more than 12,000 people, including regional and international investors and property developers.

during the presentations, dr Lang explained how Barangaroo will meet or exceed green rating benchmarks by implementing systems such as water harvesting, recycling, energy efficiency and sustainable designs. he also outlined how Baranagaroo could be the first precinct in Sydney to not only be resource neutral, but to be resource positive, potentially supplying resources back to the cBd.

Harvesting project scoops awards

the authority’s Water conservation Strategy was awarded for industry best practice in sustainability and community benefit at the tourism and transport Forum corporate Leadership awards in december 2006. the strategy also won the Stormwater industry association nSW award of excellence in Stormwater Management in June 2007.

the strategy includes an innovative water harvesting scheme at darling harbour, which has harvested more than 2 million litres of stormwater since it was installed in late July 2006. Using 22 purpose-built tanks, the scheme stores runoff collected from the 8,000 square metre Sydney entertainment centre car park roof to irrigate parks and gardens in darling harbour. it allows the authority to maintain parks and gardens in peak condition for visitors without having to use mains water.

the scheme is believed to be only project of its type in the Sydney cBd.

Sustainable places

• Receivedtourismandstormwaterindustryawardsforwaterharvestingproject

• Completeda$5.3millionprojecttoconservethehistoricDawesPointseawall

• AimingforAustralia’sfirst5StarGreenStarheritagebuilding

PrioritiSing the enVironMent

29Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07Left to right: Cameron Simpson and Sarah McCann from the Authority’s Horticulture Team. 29

Lawns, gardens and thousands of plants make The Rocks and Darling Harbour natural places for visitors to relax.


Stars shine for green building

as part of the Foreshore authority’s successful urban regeneration program in Pyrmont, construction commenced on one of Sydney’s most environmentally sustainable commercial office blocks at darling island in april 2007. named workplace6, the six storey building is anticipated to be the first in Sydney–and only the third in australia–to earn a 6 Star green Star rating.

the waterfront site at darling island, opposite Star city casino, is owned by the authority. in late 2006, the Foreshore authority awarded a tender for the leasehold sale of the site with development consent for a benchmark building in environmental design to citta Property group.

citta Property group will employ world’s best practice in the building’s design and construction to achieve a 5 Star australian Building greenhouse rating (aBgr) and a 6 Star green Star rating from the green Building council of australia. energy and water use is expected to be cut by more than 30 per cent compared to a standard building.

the building will feature:

• chilledbeamairconditioningtechnology and a harbour heat exchange system

• ablackwaterrecyclingsystemtotreatsewage on-site, which will produce water that can be used to irrigate the adjacent parks and gardens

• roof-mountedsolarpanelstoheatthebuilding’s water.

the building will cater for around 900 permanent workers with a total floor area of 20,000 square metres. construction will be undertaken by Buildcorp and is expected to generate around 1,000 jobs. the completed building will be owned by the gPt group and is due in december 2008.

Earth Hour

the Foreshore authority participated in earth hour in March 2007 to demonstrate its commitment to reducing global warming. during the event, the authority turned off all lighting in the rocks and darling harbour that was not required for public safety and security reasons.

the event launched a 12 month campaign to reduce Sydney’s greenhouse gas emissions by 5 per cent. More than 2 million Sydney residents and hundreds of businesses reportedly supported the initiative, resulting in a 10.2 per cent drop in energy usage across the cBd.

100% green PoWerin July 2006, a number of the Foreshore authority’s buildings and facilities were switched to 100 per cent green energy to further its commitment to renewable energy. the switch will displace more than 2.5 million kilowatt hours of energy from non-renewable sources each year. this will reduce carbon dioxide emissions by around 2,500 tonnes annually–the equivalent of removing 556 cars from Sydney’s roads.

the buildings and facilities using green energy include the authority’s head office in the rocks, the rocks and darling harbour Sydney Visitor centres, darling harbour security control room, and darling harbour carousel and children’s playground.

the authority’s commitment to using green energy is well beyond the nSW government’s 6 per cent requirement for government sites.

workplace6 will be one of Sydney’s most environmentally sustainable commercial office blocks.


Sydney Visitor Centres say no to plastic bags

in december 2006, plastic bags were eliminated from the Sydney Visitor centres at the rocks and darling harbour. the initiative is expected to stop the use of around 20,000 plastic bags each year with customers encouraged to go plastic bag free or use enviro-friendly, reusable bags.

the Foreshore authority is working with tenants in the rocks to make the precinct plastic bag free by introducing paper bags across the precinct. a trial will be conducted in July 2007 to promote the use of paper bags by retail and food shops.

Green leases

the Foreshore authority is developing green leases for all new tenants in the rocks and darling harbour to create more sustainable precincts. the green leases will set out basic requirements in energy and water conservation and waste reduction, and will be rolled out from october 2007. the authority will assist tenants in meeting these sustainability targets by providing information and advice.

Guides to green buildings

Preparation commenced on two building guides to help tenants improve the sustainability of commercial and retail buildings in the rocks and darling harbour. the guides, which will be provided free to tenants, will cover energy and water efficiency, indoor environment quality, emissions, transport, building materials and building management.

the Ecologically sustainable development fitout guide will set high sustainability standards for all building fitouts and refurbishments. it will support the green Building council of australia’s green Star rating model.

the Green building users’ guide will help to improve the operational performance of buildings and maximise financial and environmental benefits for occupants.

Environmental rating for public buildings

the Foreshore authority contributed $50,000 to the green Building council to develop an environmental rating tool for public buildings, such as Sydney convention and exhibition centre and the Museum of contemporary art.

the tool will rate the environmental attributes of new public buildings as well as additions and refurbishments to public buildings. it will apply to developments built for a community use such as community centres, exhibition centres, museums, libraries and concert halls. the tool will fill a gap in existing rating tools, which are presently only available for office buildings and schools.

the authority’s asset and Sustainability Manager will work as part of the green Building council technical group to shape the new tool during its development. When complete, the tool will be used to rate the sustainability of Sydney convention and exhibition centre, as well as new public buildings at Barangaroo.

Stimulating the sustainability debate

the Foreshore authority became a member of the Sydney Forum committee to encourage debate among the green building industry and gain recognition as a leader in the field. the committee arranges bimonthly presentations on sustainability, offering information sharing and networking opportunities for the industry.

the first event, Sydney 2030, focused on the environmental, services and infrastructure challenges that Sydney will face in the future and was held in May 2007. the forums will continue until late 2007.

other members of the Sydney Forum committee include the nSW department of State and regional development, city of Sydney, green Building council of australia, department of environment and climate change nSW, australian institute of refrigeration, air conditioning and heating, and Landcom.

Teaching about sustainability

in april 2007, the Foreshore authority’s Sydney Learning adventures’ team introduced a new school excursion program, Sustainability in an urban environment, to teach senior geography students about sustainable development. Set in darling harbour, students are shown the authority’s sustainability initiatives in action, including a water harvesting system, solar power systems and other energy and resource efficient practices.

the program, which explores how land and water were managed in the past and the triple bottom line approach to sustainability, is supported by a resource pack for teachers.

Microchipping trees a first

in June 2007, the Foreshore authority completed a project to microchip 1,800 trees in the rocks and darling harbour to better manage their health and wellbeing. the project is the first of its type in australia to manage tree maintenance and replacement programs, although microchipping has been used elsewhere to prevent tree theft.

the project will allow future tree managers to easily access information about a tree, ensuring that trees are well managed, maintained and where necessary replaced before they pose any risk to the public. the system also allows the Foreshore authority to identify trees that have special cultural, aesthetic, social or environmental values, helping to protect them into the future.

Solar panels in the city

a solar power system was installed on the entertainment car Park roof in July 2006 to demonstrate that environmentally sustainable development is possible in a built up city. the 7 kilowatt system produces no greenhouse gases and will prevent about 7 tonnes of greenhouse gas emissions each year. the system was provided to the authority by the department of energy, Utilities and Sustainability at no cost.


Waste down, recycling up

the Foreshore authority implemented a number of waste reduction and recycling initiatives during the year including:

• fittingalltoiletsandkitchensinits head office with water saving devices

• retrofittingtoiletswithwaterlessurinals,dual flush cisterns and water saving shower heads

• recyclingconstructionmaterialsduringthe refurbishment of argyle Stores and cleland Bond, 86-88 george Street and 100 george Street

• encouragingpublicplacerecycling at all major events

• recycling194printertonercartridgesthrough cartridges for Planet ark

• recyclingover1,368balesofcardboard packaging

• usingenvironmentallyfriendlypaperfor the 2005/06 annual report

• electronicallydistributingcommunications materials, such as the darling harbour and the rocks stakeholder and corporate newsletters

• purchasing100percentrecycledmulch and compost.

the Foreshore authority will submit a new Waste reduction and Purchasing Plan (WraPP) to the nSW government in august 2007. the plan will outline a strategy for further reducing waste and increasing the purchase of products manufactured with recycled content.

Plants, lawns and gardens

the authority’s horticultural team completed many projects to improve and maintain the amenity of the precincts and increase sustainability.

in darling harbour and the rocks around 13,000 plants were planted, including shade and drought tolerant species. Fifteen lawn areas were maintained, along with many garden beds and planter boxes. Four garden displays were also planted at darling harbour featuring designs that used more than 40,000 annuals.

Fleet reduces emissions

the authority introduced four bicycles to its vehicle fleet to offer employees a more sustainable, economical and healthy way to get around. employees can book a bike to travel between authority offices at the rocks and darling harbour or to visit locations around the city.

other initiatives to reduce fleet greenhouse emissions include encouraging the use of public transport, purchasing four hybrid cars and continuing to purchase smaller vehicles.

Under the cleaner nSW government Fleet initiative, all State government agency fleets were required to achieve an average environment performance score of 11 out of 20 in 2006/07. the Foreshore authority exceeded this target with a passenger fleet average of 13, an improvement on last year’s score of 11.6.


• Developsustainabilityactionplansto achieve targets in climate change, natural resource protection, sustainable business practices and social inclusion.

• AppointaCorporateSustainabilityManager to guide the sustainability action plans.

• Introducegreenleasesforall new tenants in the rocks and darling harbour.

• Developaprogramtoreducecigarette butt litter.

Bicycles have reduced the Foreshore Authority’s fleet emissions and offer employees–like Damian Jeacle from the Events Team–a healthy way to get around.


heritage conSerVation

Interpreting The Rocks’ history

during the year, the Foreshore authority commissioned an artist to paint australia’s largest heritage mural at the entrance to the rocks. the black and white mural faithfully represents an original photograph taken in 1901 in Brown Bear Lane, which once led from george Street to cumberland Street. Painted by Pierre Mol, who holds a Phd of art history and theory and a Postgraduate diploma in archaeology, the mural provides a dramatic entrance to the rocks from george Street.

the mural is one of a series of new interpretative installations in the rocks which show visitors the area’s rich history. the installations were developed out of the Foreshore authority’s interpretation Strategy for the rocks, which encourages projects that best illustrate the historic stories and characters of the precinct.

other installations include:

• inlaidstonepanelsinfrontoftheformer rocks Police Station, illustrating 19th century law and order

• glasssignpanelsatFirstFleetParkdepicting Sydney’s original town centre

• astoryboardaboutthelifeofFrancisgreenway, criminal and first government architect

• astoryboardandreconstructionofwoodblock paving.

the authority will install additional interpretations over the next 10 years as improvement, restoration and maintenance works occur in places and buildings around the rocks.

Modern twist for dig site

the Foreshore authority worked with youth hostels association nSW (yha) to prepare a development proposal that will conserve Sydney’s most important archaeological dig site. Located over 2,650 square metres between cumberland and gloucester streets in the rocks, the dig site contains remnants of australia’s first settlement.

the yha proposal was chosen from a shortlist of four by an expert evaluation panel, including representatives from the Foreshore authority and the nSW heritage office. architects, designers, conservationists and archaeologists were invited in early 2006 to submit proposals for the long-term future of the site. the panel assessed all proposals against a set of archaeological and urban design parameters.

yha’s proposal for a youth hostel and interactive education centre cleverly uses the site’s character and combines best practice in heritage conservation with contemporary architecture. it will ensure that this valuable remnant of Sydney’s past will be enjoyed by future generations.

the yha design team includes tzannes and associates and heritage specialists godden Mackay Logan. the development is due for completion by mid 2009.

the proposed cumberland dig site development will include:

• a110roomhostel,with350beds,providing much needed low cost accommodation in the rocks

• aworld-classarchaeological education centre allowing visitors to interact with history

• publicaccesstoalmosttheentiresite,including a large open area on gloucester Street where the most significant remnants are located

• spacesandactivitiesforyoungpeople.

Guided tours of dig site

as part of the 2007 nSW national trust heritage Festival in March, the Foreshore authority and youth hostels association held guided tours of the cumberland dig site to give visitors an opportunity to walk among the historic remnants.

experienced guides led more than 400 visitors around the site, giving them an insight into its fascinating history and the plans for its future conservation and development.

Australia’s largest heritage mural was painted at the entrance to The Rocks, highlighting the area’s historic beginnings.


Historic seawall conserved

the final stage of the Foreshore authority’s $5.3 million project to strengthen and restore dawes Point seawall was completed in december 2006. the project will help conserve this unique piece of Sydney’s foreshore history, considered to be of exceptional State heritage significance.

the work along about 200 metres of the seawall involved repairing and replacing the stonework, restoring the cast iron balustrade, rebuilding the sentry box base structure, widening the footpath adjacent to the seawall and installing improved lighting and landscaping along hickson road.

during the works, the authority discovered the remains of a 1.5-metre high sandstone wall. the authority’s archaeologist identified the wall as part of a munitions wharf that had serviced the former dawes Point Battery from the 1830s. in accordance with sound archaeological practice, the authority recorded and then covered the remnant wall to preserve it for future investigation.

New heights for Pyrmont Bridge

a $6.6 million ten-year maintenance program to help protect the 104-year-old heritage-listed Pyrmont Bridge commenced in 2006/07. Works included lifting a section of the historic structure

20 millimetres with eight jacks to replace an original 11-metre long ironbark timber crossbeam that was water damaged. a second 6-metre long beam was also replaced.

Jacking the bridge is an old-fashioned form of structural engineering and created enough space for workers to cut the timber beam into pieces and remove it. a new piece of hardwood timber was then lifted into place. While it is more common these days to lift a bridge from above, jacking it very slowly allowed it to remain open to pedestrians and for continuous use by the monorail.

Pyrmont Bridge was built in 1902 and is one of the world’s oldest surviving electrically operated swing span bridges. it is used by more than five million pedestrians each year.

Buried beneath the footpath

a project to widen the footpath along george Street to make the rocks more pedestrian friendly was completed in august 2006. in the final stages of work, the authority unearthed a number of rare and important historic remnants.

evidence of the pre-european ground surface, successive layers of road surfaces and woodblocks were discovered in front of the Mercantile hotel. Woodblocks were introduced to road works in Sydney around 1880 in an

attempt to minimise dust and noise. the rocks is the only location in Sydney where woodblocks have survived.

early service ducts, including sewer, water, gas and electricity, which were introduced to the rocks intermittently from the 1840s, were also excavated. a sewer and stormwater drain that dates back to the 1857 trigonometrical Survey of Sydney was found, confirming that Sydney had an effective sewerage system before London. While many of Sydney’s old sewer services have been replaced or adapted, this drain at the northern end of george Street continues to function today.

Plans guide ongoing conservation

the authority continued its program to prepare conservation Management Plans (cMPs) for all items in the rocks listed on the State heritage register by the end of 2008. the program resulted in the preparation of 30 cMPs in 2006/07, with a further 20 scheduled for completion next year.

ninety-nine buildings and sites listed on the State heritage register are owned by the Foreshore authority. Under the nSW Heritage Act 1977, cMPs are required to guide the conservation and future use of these heritage items.

Dawes Point seawall has been restored, conserving an important piece of Sydney’s foreshore history.


Guardian of heritage items

during the year, the authority updated its list of heritage items in its heritage and conservation register, which was forwarded to the nSW heritage council in May 2007 as required by the nSW Heritage Act 1977.

Under delegation from the heritage council and under the heritage act, the Foreshore authority:

• assessed27s.60applicationswithanaverage processing time of 11 days. this is substantially quicker than the statutory assessment period of 40 days

• processed46s.57exemptionswithanaverage processing time of two days, well below the statutory processing period of 14 days.

delegated determinations are listed in the appendix on page 119.

the authority also continued its heritage maintenance program in the rocks and darling harbour to ensure all its heritage items were maintained to the highest standard in accordance with the heritage council’s guidelines.

History preserved electronically

in august 2006, the authority completed scanning its archive of over 50,000 historic images and reference documents, archaeological reports, photographic records of past building works and conservation management plans. the project allows electronic backup copies of these historic documents to be stored off-site in line with disaster management plans, helping to ensure their long-term preservation.

the project also ensures easy access to a vast range of valuable historic information, all stored electronically and retrievable through the authority’s electronic document management system. during the year, the authority’s communications and project services teams, as well as consultants engaged to produce conservation management plans, have benefited from timely access to these images and reports.

Heritage prize for students

two of australia’s most promising architectural and conservation management students were awarded Sydney harbour Foreshore authority’s prestigious heritage Prize in october 2006.

the first prize of $3,000 was awarded to nadia iacono, a University of Sydney graduate, for her work Managing the Archaeology of the Modern City. tony gilmour, also a University of Sydney graduate, received the $2,000 runner-up prize for his work, He who pays the piper calls the tune? A revisionist approach to the commercialisation of heritage environments.

the authority has presented the heritage Prize since 1998 to recognise and encourage high achievement in university students enrolled in heritage or related studies. it is designed to encourage students to protect and interpret Sydney’s important heritage collections and places such as the rocks.

Jade carriage arrives at the Chinese Garden of Friendship

in october 2006, a hand-carved jade bridal carriage from china was installed at the chinese garden of Friendship in darling harbour.

the carriage, which weighs more than 2 tonnes, is believed to be the only one of its kind outside of china. While its age and value are unknown, it is thought to have come from the chinese province of guangdong. it was donated to the chinese garden by the owners of the Queen Victoria Building, where it has been located since 1986.

traditionally used by chinese emperors, the carriage features intricate carvings and two 2-metre long bead chains, each crafted from a single piece of jade.

Vintage red phone booths

during the year, the Foreshore authority secured from telstra two reconditioned vintage red phone booths for the rocks. the booths, which complement the precinct’s heritage character, are among only a small number still in operation in australia.

installed in george and argyle streets in april 2007, the booths replaced two damaged red phone booths in the same locations.


• Installadditionalinterpretativeinstallations in the rocks to highlight the precinct’s rich history.

• WorkwithYHAtodevelopayouthhostel and education centre at cumberland dig site.

• Continueaten-yearmaintenanceplan to help protect the heritage-listed Pyrmont Bridge.

• Continueaprogramtoprepareconservation Management Plans for all State heritage-listed items in the rocks.


Corporate governance

Role of the Board

Sydney harbour Foreshore authority’s Board, which meets monthly, oversees the Foreshore authority’s policies, management and performance. it sets strategic direction for the organisation and monitors compliance with statutory requirements.

the Board’s role in managing risk is critical to the success of the organisation. the Board must approve all major decisions, with detailed financial feasibility studies required for every major project proposal. the proportion of time spent by the Board on various matters is depicted in the chart on page 38.

the diversified interests and needs of the Foreshore authority are reflected in the composition of the Board. details of Board members are shown on pages 38-39. Members are appointed by the nSW Planning Minister for a period up to five years, with eligibility for reappointment.

the chief executive officer is responsible for the day-to-day management of the Foreshore authority’s affairs, in accordance with the specific policies and general direction of the Board.

Corporate Governance Committee

a corporate governance committee has been established as a standing committee of Sydney harbour Foreshore authority’s Board. the committee assists the Board to achieve strategic leadership, good governance and sustainability in order to enhance the Foreshore authority’s performance. the committee also establishes mechanisms and policies for achieving accountability of the Board and management.

committee members at 30 June 2007 were:

• BonnieBoezeman,Chair

• RobertLang,ChiefExecutiveOfficer of the Foreshore authority

• GabrielleTrainor.

the corporate governance committee is responsible for:

• establishingandmaintainingacorporate governance Manual

• reviewingtheAnnualPlanofStrategicdiscussions to be undertaken by the Board

• reviewingthecodesofconductfor the Foreshore authority and for the Board to provide an ethical framework for the organisation and to address procedures for reporting any illegal or unethical behaviour

• recommendingtotheBoardanappropriate performance review and evaluation process for the chief executive officer, the Board and its members and making recommendations regarding identified skills gaps

• reviewingtheAuthority’s sustainability performance

• conductingthecyclicalreviewofappropriate Board policies and making recommendations to the Board on amendments to policies

• assistingtheChairmanin establishing Board and executive succession plans

• ensuringaneffectiveDirector induction program is in place for new Board members and making recommendations to the Board on appropriate director education opportunities

• identifyingandspecifyingtheroles of management and the Board.

• Improvedknowledgemanagementwithanewpolicycatalogueandmedialibrary

• Enhancedfraudandcorruptionpreventionmeasureswithahostofonlinetools

37Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07Left to right: Chris Johnson, Bonnie Boezeman, Jon Isaacs, Gabrielle Trainor, Robert Lang and Michael Collins at the newly refurbished Argyle Stores in The Rocks.

Sydney Harbour Foreshore Authority’s Board members drive the organisation

towards excellence in sustainability, business growth and innovation.

37


Audit and Risk Management Committee

the Foreshore authority’s audit and risk Management committee manages the organisation’s risk exposure. the committee’s objective is to provide independent assurance and assistance to the Board on the Foreshore authority’s risk and fraud management, control and compliance framework, and its external accountability requirements.

committee members at 30 June 2007 were:

• MichaelCollins,Chair

• BonnieBoezeman

• RobertLang,ChiefExecutiveOfficerof the Foreshore authority.

the audit and risk Management committee is responsible for:

• reviewingtheExecutive’sriskmanagement framework and procedures for managing the authority’s financial and business risks, including fraud

• ensuringthattheAuthoritymaintainsan effective control framework for assets, liabilities, revenues and expenditures

• reviewingtheannualfinancialstatements and advising the Board on actions taken in response to audit recommendations and adjustments

• ensuringthattheExecutiveconsiderslegal and compliance risks as part of the authority’s risk assessment and management arrangements

• actingasaforumforcommunicationon risk and audit matters between the Board, senior management and internal and external auditors.

Further information about risk management and insurance is on page 43.

Board MeMBerS

Jon Isaacs

Ba (hons), Faicd

executive coach, Stephenson Mansell group

Board member/member

chair, Sydney harbour Foreshore authority (including Luna Park reserve trust)

chair, cooks cove development corporation

independent chair, Joint Management committee, rouse hill regional centre development

director, australian technology Park Precinct Management Ltd

independent chair, audit and risk Management committee, Business Link nSW Pty Ltd

independent chair, audit committee of the nSW aboriginal Land council

independent chair, risk Management and audit committee, nSW department of health

Member, ambulance Service of nSW advisory committee (deputy chair)

independent chair, audit and risk Management committee of the World youth day coordination authority

• AppointedasChairmaninSeptember2004 after serving as a Sydney harbour Foreshore authority Board member since February 1999. reappointed as chair in February 2005 for a period of three years.

Financial: business reports 6%

Strategy and policy: strategic discussions,

policy reviews 31%

Corporate governance: matters for decision, discussion, presentation, other matters and general business 32%

Management and business performance: CEO report, performance reviews, corporate reports 28%

Board process: declarations, minutes, matters arising 3%

The proportion of time spent by the Board on various matters in 2006/07


Robert Lang

Phd, Be (hons), BSc, Faicd, Fie (aUSt), Mieee, cPeng

chief executive officer, Sydney harbour Foreshore authority

Board member/member

Sydney harbour Foreshore authority (including Luna Park reserve trust)

cooks cove development corporation

Sydney convention and Visitors Bureau

• AppointedasaSydneyHarbourForeshore authority Board member in July 2003.

Bonnie Boezeman AO

PMd diploma harvard Business School (executive Program), Faicd, FaMi

Board member/member



chair, corporate governance committee, Sydney harbour Foreshore authority

deputy chair, nSW State Lotteries

chair, Senior executive roundtable World youth day

chair, PayPal australia Pty Ltd

chair, catholic development Fund

chair, Business Benefits international Pty Ltd

chair, east West Foundation

cypress Lakes golf and country club Pty Ltd advisory Board

• AppointedasaSydneyHarbourForeshore authority Board member in February 2005 for a period of three years.

Michael Collins

registered Valuer without limitations (nSW), Licensed real estate agent (nSW), honorary associate graduate School of government (Sydney), FricS

Managing director, Michael collins and associates Pty Limited

Board member/member



chair, audit and risk Management committee, Sydney harbour Foreshore authority

chair, heritage council of nSW

redfern-Waterloo authority

chair, audit and compliance committee, redfern-Waterloo authority

australian technology Park Precinct Management Ltd

Parramatta civic Place advisory committee

chair, inter-agency Working group on callan Park

• AppointedasaSydneyHarbourForeshore authority Board member in February 2005 for a period of three years.

Chris Johnson

Mcultheritage, March (history and theory), MBenv, Barch, MPia

Life Fellow, royal australian institute of architects

adjunct Professor, Faculty of design architecture and Building, University of technology, Sydney

adjunct Professor, Faculty of Built environment, University of nSW

Board member/member



heritage council of nSW

• Sam Haddad, director-General, department of Planning, became a member of the Board in october 2005. chris Johnson, deputy director-general, department of Planning, attends the Board meetings on his behalf.

Gabrielle Trainor

LLB, Faicd

Board member/member



chair, Best Western australia

chair, Shirlaws Ltd

Victorian Urban development authority (VicUrban)

World Swimming championships 2007 corporation

commissioner, australian Football League (nSW-act)

Sydney Symphony orchestra

chair, docklands Place Management and Municipal committee

Breast cancer network of australia

• AppointedasSydneyHarbourForeshore authority Board member in december 2005 for a period of three years.

Board membersBoard meetings Corporate Governance

Committee meetingsAudit and Risk

Committee meetings

Possible Attended Possible Attended Possible Attended

Jon isaacs 11 10

robert Lang 11 11 2 2 2 2

Bonnie Boezeman 11 11 2 2 4 4

Michael collins 11 8 4 4

chris Johnson 11 9

gabrielle trainor 11 11 2 2

Board attendance at meetings in 2006/07

39


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Executive Director Tenant and Asset Management Services

• Commercialbusinesses

• Assetsandfacilities

• Planning,heritageand urban design

• Projectservices

• Propertyportfoliomanagement

• Riskandlogistics

Andrew Kelly was appointed to the position of executive director, tenant and asset Management Services on 16 February 2005. Prior to that, Mr kelly held the position of executive director, Business and Financial Services. he joined the Foreshore authority in august 2001. Mr kelly holds a Bachelor of Business (Local government) and a Master of Business administration (human resources Management) and is a graduate of the australian institute of company directors’ diploma course.

Executive Director Major Projects

• Commercialdevelopment

• Masterplanning

• Urbanrenewal

• Projectfeasibilities

• Currentprojectsinclude: – cooks cove – Luna Park – Barangaroo – Ballast Point – darling Walk – callan Park

Diana Talty was appointed to the position of executive director, Major Projects on 30 May 2005. She joined the Foreshore authority in January 2001. Ms talty holds a Bachelor of arts (honours) in government, and is a State government representative on the Board of the Sydney harbour Federation trust.

Executive Director Marketing and Visitor Services

• Education

• Events

• Graphicdesign

• Marketing

• Publicationsandpublicity

• SydneyVisitorCentres

Charmaine Moldrich was appointed to the position of executive director, Marketing and Visitor Services on 24 July 2006. Ms Moldrich has over 20 years experience in management, business development, marketing, sponsorship, events, publicity and the arts.

Executive Director Corporate Services

• Administrationservices

• Bookrite

• Corporateaffairsandgovernance

• E-services

• Finance

• Humanresources

• Informationtechnology

• Cultureandperformance

• Planningassessment

• Procurement

• Sustainability

Egle Garrick was appointed to the position of executive director, corporate Services on 16 February 2005. Prior to that, Mrs garrick held the positions of executive director, Place Management division and executive director, Service delivery. She joined the Foreshore authority in March 2003. Mrs garrick holds a Master of Science and Society, Bachelor of arts, diploma of Librarianship and a certificate of transport Management and is a graduate of the australian institute of company directors’ diploma course. She sits on the advisory committee of the Bachelor of Planning degree at the University of nSW.

General Manager Darling Harbour

• Placemanagement

Bob Deacon was appointed to the position of general Manager, darling harbour on 1 august 2002. Mr deacon holds an associate diploma in real estate Valuation and is a Fellow of the australian Property institute.

General Manager The Rocks

• Placemanagement

Debra Dawson was appointed to the position of general Manager, the rocks on 5 February 2007. Ms dawson has extensive experience in place management, retail management and marketing.

41Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07Left to right: Charmaine Moldrich, Bob Deacon, Egle Garrick, Debra Dawson, Andrew Kelly, Diana Talty and Robert Lang at the new event space at Palm Cove, Darling Harbour.

The Foreshore Authority’s Executive Team bring a wealth of experience and energy to the

organisation, inspiring employees to deliver outstanding results.

41


Guarantee of service

the Foreshore authority values integrity, teamwork and takes pride in every member of its team fulfilling their promises. Various services and activities to fulfil this core value continued in 2006/07, including:

• theCustomerServiceRequestLine,which operated 24 hours, seven days a week. this dedicated hotline along with the supporting customer request Management Service enables the Foreshore authority to identify key trends and issues within its precincts and develop programs accordingly

• theForeshoreAuthority’spolicies,which continued to enhance customer service, access for people with disabilities, privacy management and community consultation. the code of conduct guides standards of behaviour for employees. Policies that relate to more specific areas of responsibility are also regularly reviewed, such as signage and outdoor seating

• implementationofcommunityrelationsplans to gather and distribute information, including through public meetings, websites, workshops and regular newsletters

• researchprojects,whichwereundertaken to assist the Foreshore authority in meeting the needs and expectations of visitors, tenants and stakeholders to the rocks and darling harbour. this ensures marketing and business strategies reflect the interests and concerns of these groups.

the Foreshore authority also introduced a customer Service code of Practice in June 2007 to help employees provide a professional, timely and efficient service to customers. For more information see page 11.

Tapping into the knowledge bank

a framework for knowledge management was finalised during the year to help ensure the authority’s continued growth in a highly competitive business environment. the framework will improve performance by capturing, developing and sharing knowledge in the organisation.

initiatives implemented during the year included:

• creatingacatalogueofallpolicesandtheir review schedule

• creatinganimage,videoand audio library

• developingprotocolstobettermanageplans and drawings

• reviewingtheAuthority’srecordsmanagement system to better capture and store information

• usingtheintranettoteachemployeesabout knowledge management.

Overseas travel

chief executive officer of the Foreshore authority, robert Lang, attended an international waterfront development conference in abu dhabi from 5-11 May 2007 to showcase Barangaroo to an international market. dr Lang’s presentation focussed on creating sustainable waterfronts and connecting with communities. the conference, cityscape 2007, was attended by regional and international investors and property developers, and provided significant exposure and networking opportunities.

dr Lang also attended a Place Leaders association of australia conference in Singapore from 2-6 September 2006. the conference provided an opportunity to meet with Singapore Urban redevelopment authority and explore Singapore’s challenges and experiences in urban waterfront redevelopment. the conference was particularly valuable at the time as it coincided with Barangaroo moving into a new phase of its redevelopment.

the Foreshore authority’s Manager, tourism Marketing and Brand development, Liz clarke, attended oz talk new Zealand from 14-18 March 2007 to deliver a series of presentations to new Zealand travel agents on the Foreshore authority’s tourism products in the rocks and darling harbour.

Privacy management plan

the Foreshore authority has developed a Privacy Management Plan in response to the nSW Privacy and Personal Information Act 1998. the act aims to protect the privacy of individuals from inappropriate collection, storage, use and disclosure of personal information by nSW public sector agencies.

the plan is based on 12 information principles that establish standards for using personal information in an open and accountable manner. the information protection principles apply to all employees, consultants and contractors engaged by the Foreshore authority.

the Privacy Management Plan is available on the Foreshore authority’s website. there were no privacy complaints received during 2006/07.

FraUd PreVentionthe authority continued to use online tools to help raise employee awareness of fraud and corruption issues and the prevention measures available.

tools include:

• aone-stopshopontheintranetforfraudandcorruptionpolicies,proceduresandguidelines

• popupalertsadvisingemployeesofallAuthoritypoliciesandupdatesregardingfraud and corruption

• anonlinegiftandbenefitregister

• anonlinedeclarationofinterestregistertoreportanyperceivedoractualconflictsof interest

• anonlinerequestsystemtorequestprivacyinformation,reportcorruptconductormake a protected disclosure

• anonlineprocurementsystemdesignedaroundtheNSWGovernmentrequirements for best practice procurement.

the online approach allows the authority to easily manage and monitor fraud and corruption prevention measures, as well as demonstrate these activities to external groups and agencies. the authority also conducts regular ethics and fraud corruption prevention workshops for employees.


Risk management and insurance

Sydney harbour Foreshore authority’s ongoing risk management program has been effective in managing the risk exposure of the Foreshore authority while contributing to organisational objectives.

two forums, the Board audit and risk Management committee and the executive Sustainability and risk committee, both convened four times in 2006/07 to address risk management.

the Foreshore authority also maintains a program of internal audits to assess the effectiveness of controls and systems to mitigate risk. during the year, the authority achieved an average assessment score of 3.5 out of 5 for its internal audits, which were conducted by deloitte. this is an improvement on last year’s average of 3.1.

the Foreshore authority carries a comprehensive range of insurance cover through the treasury Managed Fund (tMF). this insurance covers property, public liability, directors’ insurance and other contingencies. Unlike private sector insurance policies, the tMF has limited exclusions. in particular, all properties owned or managed by the Foreshore authority are covered for their replacement value. the Foreshore authority’s insurance premium has reduced again this year, in line with agency and pool performance.

the Foreshore authority carries no officers’ professional liability insurance, but all public service officers are covered by a State indemnity against claims that do not involve negligence.

Credit card certification

the Foreshore authority has a corporate credit card Policy, which meets nSW treasury guidelines. cardholders are required to observe the policy and complete a reconciliation form each month. the Foreshore authority’s chief Financial officer or chief executive officer authorises recoupment.

Six Sydney harbour Foreshore authority senior executives hold corporate credit cards with credit limits between $2,000 and $5,000. the authority’s chief executive officer holds a corporate credit card limited to $10,000, as approved by the Foreshore authority’s Board.

Legislative changes and departures

the Sydney harbour Foreshore authority regulation 2006 commenced on 1 September 2006. the object of this regulation was to remake the Sydney harbour Foreshore authority regulation 1999, which was repealed by s.10(2) of the nSW Subordinate Legislation Act 1989. the only change to the regulation was the deletion of additional powers that applied during the Sydney olympics.

the regulation is made under the Sydney Harbour Foreshore Authority Act 1998 (nSW).

Freedom of information

the Freedom of Information Act 1989 (nSW) enables a member of the public to access documents held by the Foreshore authority. during the year the authority processed 17 freedom of information requests. details of these requests are shown in the appendix on page 112.

the nSW ombudsman investigated one complaint regarding a freedom of information application. the ombudsman found the Foreshore authority’s determination to be satisfactory and closed the matter.


• Setthestrategicdirectionforthefirst phase of Barangaroo’s redevelopment.

• Integratesustainabilityintoalloftheauthority’s business activities.

SPeciaLiSed conSULtantSthe Foreshore authority engages consultants for specialised work only where there is no in-house expertise.

the authority has used consultants in specialist areas such as engineering, technology and business systems analysis, planning, property, design and environment.

Six consultants whose fees were more than $30,000 were engaged during the year as shown in the table below. these fees totalled $600,923. eight consultants whose fees were up to $30,000 were also engaged, with fees totalling $138,347.

Consultants engaged during 2006/07 with fees over $30,000

Consultant name Description Total

Lincolne Scott australia P/L engineering $81,499

institute of Sustainable Futures, University of technology, Sydney Sustainability solutions $57,196

Masson Wilson twiney Pty Ltd transport planning $48,208

Pricewaterhousecoopers accounting and finance $119,210

ochre consulting Pty Ltd risk management $42,060

JBa Urban Planning Urban planning $252,750

Total $600,923


Our people

Best public sector employer

Sydney harbour Foreshore authority was named as one of australia’s 23 best employers in the annual hewitt Best employer awards, announced in March 2007. the authority also won the inaugural Best employer in the Public Sector award. this is the first time a public sector organisation in australia or new Zealand, federal or state, has won a Best employers award in the awards’ six year history.

the awards are coordinated by human resources firm hewitt associates and involve the largest audit undertaken of employees in australia and new Zealand. they recognise companies with the highest employee engagement scores measured by surveys, management interviews and policy reviews.

the award recognised the Foreshore authority’s strong focus on employee engagement, including:

• theCEO’smonthlyupdatestoallemployees on the organisation’s achievements and activities

• strategiesthatencourageallemployeesto generate innovative ideas about improving the business

• trainingandprofessionalopportunities

• monthlyCEOGuidingPrinciplesawards and an annual awards night to recognise and celebrate the outstanding contribution of employees.

the Foreshore authority joined Microsoft, Vodafone, american express, nokia and novartis consumer health on this year’s list of best employers.

Making innovative ideas a reality

a drive began in 2006/07 to encourage employees to submit their own innovative ideas on how to improve the business, with a list of the top 40 ideas compiled for action in the coming year.

one idea was for an employee photo shoot at the historic cumberland dig site. taken in May 2007, the photos commemorate the moment in time between almost 100 years of indecision on the site’s future use and the beginning of works to transform the site into a world-class historical attraction (see page 33 for details). images from the photo shoot are featured on the following page and the cover of this annual report.

other employee ideas implemented during the year included creating a chinese garden virtual online tour, improving the authority’s free Wi-Fi service in the rocks and introducing bicycles to the authority’s vehicle fleet.

ideas to be actioned in the coming year include:

• installingatouchscreeninTheRocksto display interactive way finding maps

• usingbluetoothtechnologyin the rocks discovery Museum to allow visitors to download information

• developinginteractiveaudiotours in the rocks

• livewebcastingofevents

• automatingtheAuthority’stime sheet system.

Mentoring for development

the authority’s mentoring program was continued this year to develop and retain employee leadership potential and enhance their career development and satisfaction. the program also helps to embed the authority’s key values and behaviours and achieve organisational strategic goals.

the program was expanded in late 2006 to include a peer support workshop, progress forum and social events. Both new and more experienced employees have participated as mentees, indicating an enthusiasm among employees at all levels to share their knowledge and skills and continue their professional development.

a group of 48 mentors and mentees completed the program in early 2007. By the end of June 2007, more than half of the Foreshore authority’s employees had been involved. another group of employees will participate in the program in 2007/08.

• NamedBestEmployerinthePublicSectorintheHewittBestEmployerAwards

• ReceivedawardsforourHealthyLifestyleProgram

• Fifty-fiveemployeescompletedamanagementdevelopmentprogram

45Sydney harBoUr ForeShore aUthority annUaL rePort 2006/07 45Centre: Valerie Astalos from the Authority’s Place Management Team for The Rocks with other employees at Cumberland dig site.


Star Awards

the Foreshore authority’s third annual Star awards were held in 2006 to recognise and celebrate the outstanding contribution of employees. over 170 employees attended the awards night with many receiving recognition in categories such as customer service, leadership, sustainability, innovation and precinct promotion.

the employee of the year award went to Project Services Manager

Peter hazeldine recognising his leadership in delivering capital works programs. the team of the year award was won by the communications team.

Safety first

Providing a safe and supportive work environment within a professional, resourceful organisation is a priority for the Foreshore authority.

a range of services were provided during the year to ensure management and

employees met the requirements of the nSW Occupational Health and Safety Act 2000 and Workplace Injury Management and Workers Compensation Act 1998.

these included:

• continuingtheHealthyLifestyleProgram

• undertakingquarterlyworkerscompensation claims reviews

• furtherreducingworkerscompensationpremium costs compared to 2005/06

• includingOHSandinformationmanagement responsibility statements in all position descriptions

• providingOHStrainingforemployees,including on manual handling and risk management

• developinganonlineinjuryandillnessreporting system

• continuingtoconductergonomicworkstation assessments

• appointinganaccreditedReturntoWork coordinator within the authority

• testingandtaggingnewelectricalequipment

• reducingthetotalcostofworkerscompensation claims to $618.

there were no prosecutions under the Occupational Health and Safety Act 2000 during the year.

ceo encoUrageS exceLLencethe ceo’s guiding Principles awards were continued this year to promote a culture of excellence in service delivery, leadership and innovation based on ten guiding principles.

CEO’s Guiding Principle Award winners 2006/07

Month Recipient Guiding principles

July Murray Summerville integrity – We are committed to fairness and integrity in all our activities

august cindy Mulhern teamwork – We work together to build a common view and seek each other’s advice, recognising individual strengths and the synergy of the team

September Vera horevoorts excellence – We set high standards and are demanding in our quest to achieve them

october Brian cock innovation – We value innovation, initiative, resourcefulness and creativity

november Fern Punturiero People – We trust and support each other and respect people for their character and their ideas

december ian keong customers – We understand and meet our customers’ needs and expectations

January alison Black integrity – see above

February damien Jeacle Leadership – We take responsibility for our mistakes as well as our successes

March Michael rowley deliver on promises – We deliver on our promises by excelling at implementation

april arthur tzortzis teamwork – see above

May colin Sargent integrity – see above

June dianna every excellence – see above

Employee of the Year Peter Hazeldine was instrumental in planning the restoration of the former Mariners’ Church at 100 George Street.


Employees keep learning

the authority continued its focus on training and developing employees, with each spending an average of four days in training during the year.

Fifty-five employees participated in a Manage to Manage management development program, which allows them to work towards a diploma of Business. the authority will offer the program again in 2008.

another 36 employees completed a project management training program, with 12 progressing to attain a certificate iV in Project Management. the program aligns with the authority’s project management framework and equips employees with effective project management skills.

other training and development programs included:

• specialistcustomerservicetraining for employees in the Sydney Visitor centres, chinese garden of Friendship and the authority’s educational Services, including Sydney Learning adventures

• disabilitymanagementtraining about inclusive customer service, accessible built environments and liability and legislation

• ethicalpracticeforallemployeesandadvanced training for the authority’s Leadership team

• MyersBriggsTypeIndicatorworkshops

• onlinetrainingforMicrosoftOfficeprograms.

during the year, 92 employees participated in a 360 degree assessment process, with managers, peers and direct reports providing performance feedback. the results were used to help employees identify areas for further personal development.

the table below right shows some human resources achievements.

Internship opportunities

the Foreshore authority hosted five student interns during the year to create a mutually beneficial link with young people, raise awareness of the diverse career opportunities within the authority and support public education.

interns from the University of Sydney, the University of nSW, the netherlands University of applied Sciences and hong kong Baptist University were placed in the

authority’s project services, marketing, planning assessment, heritage and finance teams. the planning assessment intern program is held annually to provide a planning student with 12 months work experience as part of their degree.

Six students from nSW schools were also given work experience in the information technology, heritage and darling harbour teams.

Healthy program honoured

the authority’s healthy Lifestyle Program was honoured at the Sai global australian Business excellence awards in June 2007 where it was named the runner-up Winner of the corporate social responsibility systems excellence award. the authority was the only nSW public sector organisation to win at the awards, which recognise organisational best practice.

Benefits of the healthy Lifestyle Program include improved employee retention and attraction, stress resilience, a happier and healthier workplace, improved work performance, team cohesion, reduced risk of lifestyle diseases and reduced insurance premiums.

through the program, employees have access to:

• discountedgymmembershipandyoga, pilates and group fitness classes

• lunchtimesportinggames,includingbasketball and soccer

• aquitsmokingprogram

• healthauditsandassessments

• fluvaccinations

• seminarsonhealth,wealthandwellbeing

• onlinehealthtips

• theAuthority’sfleetbicycles.

employees were also encouraged to participate in the 2007 nSW corporate games, city to Surf and Walk to Work day.

training For the FUtUrethe authority supports many employees in further education and training to encourage personal development and grow the organisation’s capabilities.

two of the authority’s graphic designers, Mine konakci and Simon dance, completed training in photography, adding a valuable skill to the design Studio. Both keen photographers, the training allows them to combine their personal passion with their work. during the year, Simon and Mine have snapped places, people and objects for the rocks experience Magazine, this annual report and other marketing material.

Human resources achievements

Target 2004/05 2005/06 2006/07

training days per employee > 3 days > 3 days > 3 days > 3 days

Queries responded to by human resources team within 48 hours

90% 100% 100% 100%


Equal opportunity for all

the authority promoted equal employment opportunity (eeo) in a range of projects including:

• improvingwebsiteaccessibilityforcustomers from various eeo groups

• trainingforrefurbishmentprojectmanagers and customer service and maintenance employees on improving access for people with disabilities to the authority’s services and precincts

• reviewingallrecruitmentfilesto ensure that selection panels were correctly formed and merit selection was undertaken.

equity principles also continue to be promoted through the Foreshore authority’s code of conduct, in the induction of new recruits, through training and through information available on the intranet.

the Foreshore authority collects eeo data regularly for the department of Premier and cabinet’s workforce profile, which measures performance in meeting nSW government employment benchmarks for employees from eeo minority groups. the data also informs planning and development of eeo initiatives.

trends in the representation of eeo groups among Foreshore authority employees are shown in the table above.

Upcoming eeo activities include:

• trainingforgraphicdesigners,webdevelopers and the Marketing team in best practice delivery of information for people from different disability groups

• reviewingrecruitmentprocedurestoensure that appropriate media is used to source applicants from eeo groups

• reviewingtheHewittemployeesurveyto source any areas of concern for eeo

• providingfemaleemployeeswithamaternity leave kit when appropriate.

Ethnic affairs a priority

the authority continued to develop and implement initiatives to cater to people from culturally and linguistically diverse (caLd) backgrounds. the organisation’s workforce also reflects the social diversity of the general workforce and significantly, this diversity is represented at all levels.

employees at the Sydney Visitor centres combined can speak 22 languages other than english, including korean, dutch, Mandarin and Lebanese. employees at the rocks discovery Museum can also speak a variety of languages including Bosnian, croatian, Serbian, german, French, nepalese and Japanese. employees are encouraged to use their language skills to improve communication with international and local customers whose first language is not english.

Sydney Learning adventures employ multilingual guides and use translated materials for its educational tours and products. the teacher resource Packs for two Sydney Learning adventure tours,

Digging Up Sydney and Bangabaoui: Aboriginal Cultural Harbour Cruise, have been translated to cater to Japanese-speaking teachers.

during the year, the authority added multilingual information to its websites www.therocks.com and www.darlingharbour.com, bringing them into line with other major Sydney tourism websites.

the Foreshore authority also facilitated 16 ethnic and cultural festivals within its precincts in 2006/07 including the egyptian, greek and Polish festivals.

in early 2007, the authority developed a strategy to improve its services to Sydneysiders and visitors from caLd communities. in 2007/08, a formal language aide program will be implemented to make it easier for people from caLd backgrounds to access the Foreshore authority’s services and programs.

the authority will also investigate:

• theintroductionofnamebadgesformultilingual employees at the Sydney Visitor centres and chinese garden of Friendship with a flag for each language, other than english, that they can speak

• thefeasibilityofproducingmoreinformation for the public in other languages.

Trends in the representation of EEO groups as at 30 June 2007

Employees basis

Total number of employees

Percentage of total

employees %

Number of men

Number of

women

Aboriginal and Torres

Strait Islander people

People from racial, ethnic,

ethno-religious minority groups

People whose first language was not English

People with a

disability

People with a disability

requiring work related

adjustment

Permanent full-time 194 58 106 88 1 47 13 0 0

Permanent part-time 21 6 5 16 0 6 6 0 0

temporary full-time 25 7 14 11 0 8 4 0 0

temporary part-time 6 2 0 6 0 2 2 0 0

casual 86 26 44 42 0 24 14 0 0

Total 332 - 169 163 1 87 39 0 0

Percentage 100% - 51% 49% 0.3% 26% 12% 0% 0%


Employee numbers

the tables on this page provide details of the Foreshore authority’s employee numbers for 2006/07.

Women in the workplace

the Foreshore authority is committed to the nSW government action Plan for Women and the government’s efforts to promote workplaces that are equitable, safe and responsive to all aspects of women’s lives.

key activities undertaken in 2006/07 included:

• releasingexpressionsofinterestforshort-term vacancies exceeding five days, with emphasis on encouraging and supporting women applicants

• offeringpart-timeandworkfromhomeopportunities to women returning from maternity or parental leave

• maintainingthefemaleratioontheexecutive team

• draftingamaternityleavekittoassistwomen during pregnancy and maternity leave and when returning to work.

Industrial relations

the Joint consultative committee continued to be a productive mechanism in discussing and disseminating information. there were no industrial disputes lodged by the nSW Public Service association with the industrial relations commission of nSW. there was no working time lost due to industrial disputes during the year.

renegotiation of the crown employees (Sydney harbour Foreshore authority 2003) award continues. a major change of the award will be the replacement of the working hours clause with a flexible

working hours agreement. other proposed changes include a variation to the method of payment of annual leave loading and alterations to certain grades in the Professional officer, administrative officer and operation officer classifications. the new award will be ratified in 2007/08.

there were no exceptional movements in wages, salaries or allowances, except for increases awarded across the public sector by the industrial relations commission of nSW.

Employee numbers by category

Salary scale

30 June 2005 30 June 2006 30 June 2007


Women

People whose

first language was not English


Women

People whose



Women

People whose


Salaries below clerical officer grade 1; 21 year old or equivalent

2 1 1 0 0 0 0 0 0

Salaries from clerical officer grade 1; 21 year old rate to below minimum clerk grade 1 rate or equivalent

7 6 5 8 6 5 8 5 4

grade 1-2 or equivalent 32 19 8 31 19 7 42 19 14




above grade 12 or equivalent 44 13 2 43 11 2 40 13 7

Total number of equivalent employees in established positions*

216 110 34 225 113 34 247 121 80

* Figures do not include casual employees. Part-time employees are counted individually.

Number of Chief Executive Service (CES) and Senior Executive Service (SES) positions

2002/03 2003/04 2004/05 2005/06 2006/07

ceS/SeS positions 5 5 5 5 5

Positions filled by women 2 2 3 3 3

Positions at SeS Level 7* 1 1 1 1 1

Positions at SeS Level 4 4 4 4 4 4

* this position is held by robert Lang, ceo of Sydney harbour Foreshore authority.


Code of conduct

the authority’s code of conduct embodies the public sector values of integrity, diligence, economy and efficiency and accountability. the code incorporates the principles of ethical or responsible decision-making and respect for the law, government and community.

the code also offers guidance in situations where a person may be unsure of the appropriate course of action. Matters dealt with in the code include conflicts of interest, copyright and licenses, internal information and information on clients, secondary employment, political participation and reporting breaches of the code and corrupt conduct.

ethics training for all employees continued quarterly throughout 2006/07 with all new employees attending an in-house ethics training session. the authority’s Leadership team also attended a workshop on ethics and decision-making provided by the St James ethics centre.

Employee fundraising efforts

employees at the Foreshore authority participated in a number of social activities to raise money for various charities, including World’s greatest Shave for the Leukaemia Foundation and australia’s Biggest Morning tea for the cancer council.

Four employees participated in the oxfam Walk against Want raising $5,000 to help local communities overcome poverty and injustice. employees also supported the Woolworths national drought action day and the cyclone Larry appeal.


• Actioninnovationideassuggestedby employees to improve the business.

• Continuetorecogniseemployeeachievements through the Star awards and ceo’s guiding Principles awards.

• Implementaformallanguageaideprogram to make it easier for people from diverse backgrounds to access services and programs.

• Conductmockcourttrialstoteachemployees about occupational health and safety.

Carlos Gonzalez and Jimmy Corbo from the Commercial Partnership Team participate in World’s Greatest Shave.


Financial statements

51

SYDNEY HARBOUR FORESHORE AUTHORITY ANNUAL REPORT 2006/0752

Financial statements

CONTENTS

Sydney Harbour Foreshore Authority 53

Financial statements for the year ended 30 June 2007

Statement by the Chairman and Chief Executive Officer 53

Independent auditor’s report 54

Income statement 56

Balance sheet 57

Statement of changes in equity 58

Cash flow statement 59

Notes to the financial statements 60

Office of the Sydney Harbour Foreshore Authority 87




Income statement 90

Balance sheet 91

Statement of recognised income and expense 92



Sydney Harbour Foreshore Authority Casual Staff Division 103




Income statement 106

Balance sheet 107

Statement of recognised income and expense 108



Trading entities explained

In March 2006, changes to the NSW Government’s employment legislation brought all State employees under employment by the NSW Government in the service of the Crown. To reflect this change, Sydney Harbour Foreshore Authority was split into three separate entities.

Employees (except casual employees) are employed by the NSW Government to work in the Office of the Sydney Harbour Foreshore Authority. Casual employees are employed by the Sydney Harbour Foreshore Authority Casual Staff Division.

For all activities apart from employment, the Foreshore Authority trades and operates as Sydney Harbour Foreshore Authority.


Statement by the Chairman and the Chief Executive Officer on the adoption of the financial statements for the year ended 30 June 2007.

Certificate Under Section 41C of the Public Finance and Audit Act 1983.

Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in our capacity as Chairman and Chief Executive Officer of the Sydney Harbour Foreshore Authority, we declare that in our opinion:

1. The accompanying financial statements exhibit a true and fair view of the financial position of the Sydney Harbour Foreshore Authority as at 30 June 2007 and transactions for the year ended on that date.

2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer’s Directions.

Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.

Jon Isaacs Dr Robert Lang

Chairman Chief Executive Officer Sydney Harbour Foreshore Authority Sydney Harbour Foreshore Authority

16 October 2007 Sydney

SYDNEY HARBOUR FORESHORE AUTHORITY

FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007



INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2007


SYDNEY HARBOUR FORESHORE AUTHORITY START OF AUDITED FINANCIAL STATEMENTS

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2007

Consolidated Authority

Notes 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Revenue from continuing operations 3(a) 158,640 156,936 158,640 159,588

Property related expenses 3(b) (71,001) (68,021) (71,001) (68,021)

Employee related expenses 3(b) (25,494) (24,117) (25,494) (24,117)

Depreciation and amortisation 3(b) (15,260) (13,563) (15,260) (13,563)

Finance costs 3(b) (872) (883) (872) (883)

Other expenses 3(b) (34,389) (34,267) (34,389) (34,267)

Surplus before income tax equivalent 11,624 16,085 11,624 18,737

Income tax equivalent 4 (1,208) (411) (1,208) (411)

Surplus for the year after income tax equivalent 10,416 15,674 10,416 18,326

The above income statement is to be read in conjunction with the attached notes.



BALANCE SHEET AS AT 30 JUNE 2007


Notes 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Current assets

Cash and cash equivalents 5 73,499 77,652 73,499 77,652

Receivables 6 7,025 13,166 10,215 16,105

Inventories 7 971 859 971 859

Total current assets 81,495 91,677 84,685 94,616

Non-current assets

Receivables 6 64 13,297 64 13,297

Investment property 8 487,630 474,939 487,630 474,939

Property, plant and equipment 9 577,555 558,720 574,365 555,781

Inventories 7 4,090 4,090 4,090 4,090

Intangible assets 10 639 599 639 5 99

Total non-current assets 1,069,978 1,051,645 1,066,788 1,048,706

Total assets 1,151,473 1,143,322 1,151,473 1,143,322

Current liabilities

Payables 11 34,470 31,966 39,027 36,111

Other liabilities 12 7,054 6,466 7,054 6,466

Provisions 15 20,433 23,836 15,877 19,691

Total current liabilities 61,957 62,268 61,958 62,268

Non-current liabilities

Payables 11 - - 356 1,332

Other liabilities 12 405,639 407,496 405,639 407,496

Borrowings 13 10,000 10,000 10,000 10,000

Provisions 15 356 1,332 - -

Total non-current liabilities 415,995 418,828 415,995 418,828

Total liabilities 477,952 481,096 477,952 481,096

Net assets 673,521 662,226 673,521 662,226

Equity

Accumulated funds 17(a) 667,642 662,226 667,642 662,226

Asset revaluation reserve 17(b) 5,879 - 5,879 -

Total equity 673,521 662,226 673,521 662,226

The above balance sheet is to be read in conjunction with the attached notes.



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


Notes 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Opening balance 1 July 662,226 654,691 662,226 652,039

Contributions by owner (transfer of asset from NSW Maritime) 17(a) - 2,861 - 2,861

Contributions to State Government 17(a) (5,000) (11,000) (5,000) (11,000)

Gain on revaluation of property, plant and equipment 17(b) 5,879 - 5,879 -

Net revenue/(expense) recognised directly in equity 663,105 646,552 663,105 643,900

Surplus for the year 10,416 15,674 10,416 18,326

Total recognised revenue and expense for the year 673,521 662,226 673,521 662,226

Closing balance 30 June 673,521 662,226 673,521 662,226



CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007


Notes 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Cash flows from operating activities

Receipts from customers 164,539 202,089 164,539 202,089

Payment to suppliers and employees (128,110) (147,708) (128,110) (147,708)

Grants paid - (440) - (440)

Interest and other finance cost paid 3,742 4,149 3,742 4,149

Net cash flows from operating activities 20(b) 40,171 58,090 40,171 58,090

Cash flows from investing activities

Payments for property, plant and equipment (24,184) (37,972) (24,184) (37,972)

Payments for investment property (10,657) - (10,657) -

Payments for intangible assets (140) - (140) -

Forward deposits and retentions 1,562 818 1,562 818

Net cash flows from investing activities (33,419) (37,154) (33,419) (37,154)

Cash flows from financing activities

Security deposits and bonds 95 (431) 95 (431)

Contributions to State Government paid (11,000) (10,000) (11,000) (10,000)

Net cash flows from financing activities (10,905) (10,431) (10,905) (10,431)

Net increase/(decrease) in cash (4,153) 10,505 (4,153) 10,505

Cash at the start of the financial year 77,652 67,147 77,652 67,147

Cash at the end of the financial year 20(a) 73,499 77,652 73,499 77,652

The above cash flow statement is to be read in conjunction with the attached notes.



NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007

Note 1 – Reporting entity

Sydney Harbour Foreshore Authority (Foreshore Authority), as a reporting entity, comprises all entities under its control– Cooks Cove Development Corporation (CCDC), Office of the Sydney Harbour Foreshore Authority (the Office) and Sydney Harbour Foreshore Authority Casual Staff Division (Casual Staff Division).

The Office and Casual Staff Division are Divisions of the Government Service, established on 17 March 2006 pursuant to Parts 1 and 3 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. Their sole objectives are to provide personnel services to the Foreshore Authority.

The Foreshore Authority and its controlled entities are not-for-profit entities as profit is not their principal objective. They are consolidated as part of the NSW Total State Sector Accounts.

This consolidated financial report for the year ended 30 June 2007 was authorised for issue by the Foreshore Authority’s Board on 15 October 2007.

Note 2 – Statement of significant accounting policies

(a) Basis of preparation

The financial report is a general-purpose financial report and is prepared on an accrual basis in accordance with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AEIFRS), other authoritative pronouncements of the Australian Accounting Standards Board, the Interpretation, the requirements of the Public Finance and Audit Act 1983 and Financial Reporting Directions issued by the Treasurer.

Set out below is a summary of the significant accounting policies adopted by the Foreshore Authority.

The financial report is presented in Australian Dollars rounded to nearest thousand.

(b) Statement of compliance

The financial report complies with Australian Accounting Standards. A statement of compliance with International Financial Reporting Standards (IFRS) cannot be made due to the organisation applying the not-for-profit sector requirements contained in AEIFRS.

(c) Principles of consolidation

A controlled entity is any entity the Foreshore Authority has the power to control the financial and operating policies so as to obtain benefits from its activities.

All inter-entity balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity.

(d) Significant accounting judgements, estimates and assumptions

(i) Significant accounting judgement

In the application of AASB, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

Key judgements are disclosed as part of accounting notes.

(ii) Significant accounting estimates and assumptions

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of AASB that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.

(e) Financial risk management

The Foreshore Authority uses financial instruments such as cash, NSW Treasury Corporation Hour-Glass facilities, finance leases and borrowings from NSW Treasury Corporation.

The Foreshore Authority has a policy not to undertake trading in financial instruments.

The Foreshore Authority’s activities expose it to a variety of financial risks: credit risk, liquidity risk and interest rate risk. The Foreshore Authority’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise the potential adverse effects on the financial performance of the Foreshore Authority.




(i) Credit risk

The Foreshore Authority has no significant concentrations on credit risk. It has policies in place to ensure that trades are made to third parties with an appropriate credit history.

(ii) Liquidity risk

The Foreshore Authority’s liquidity risk management implies maintaining sufficient cash. As the Foreshore Authority has no significant interest bearing liabilities, its expense and operating cash flows are not materially exposed to changes in market interest rates.

(iii) Interest rate risk

As the Foreshore Authority has no significant interest bearing assets, its income and operating cash flows are not materially exposed to changes in market interest rates.

(f) Administered activities

The Foreshore Authority administers, but does not control, Luna Park Reserve Trust (the Trust). The Foreshore Authority is accountable for transactions relating to the administered activities but does not have the discretion to deploy the resources for the achievement of the Foreshore Authority’s objectives. Transactions and balances relating to the Trust are not recognised in the Foreshore Authority’s operating statement and balance sheet. Separate financial statements are prepared for the Trust.

(g) Revenue recognition

Revenue is recognised when the consolidated entity has control of assets that result from income generating transactions or the right to receive control, it is probable that the economic benefits will flow to the consolidated entity and the amount of revenue is measured at the fair value of the consideration or contribution received or receivables.

Amounts disclosed as revenue are sale of goods and services, development contributions, rental revenue, investment revenue and grants.

(i) Sale of goods and services

Revenue is recognised when the consolidated entity transfers the significant risks and rewards of ownership of the assets and obtains control of the assets that result from sales.

(ii) Development contributions

Development contributions are recognised when payment is received.

(iii) Lease revenue

Lease revenue is recognised on straight-line basis over the lease term.

The unexpired portion of the lease is recognised as a liability as per the accounting standard and NSW Treasury Policy TPP06-3 Lessor Accounting for Prepaid Long Term Leases of Land.

(iv) Investment revenue

Investment revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

(v) Grants

Grants are recognised when the Foreshore Authority obtains control over the assets comprising the grants. Control over assets is normally obtained upon receipt of cash.

(h) Employee benefits and other provisions

Provision is made for benefits accruing to employees in respect of wages and salaries, superannuation, annual leave, long service leave, and for sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The government bond rate of 6.26% was applied for discounting purposes.

The outstanding amounts of payroll tax, workers compensation insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised.




Defined contribution plans

Contribution to defined contribution funds, such as Basic Benefit and First State Super, are expensed when incurred. It is calculated as a percentage of the employees’ salary. In 2005/06 and 2006/07, 9% was contributed.

Defined benefit superannuation plans

For defined benefit superannuation plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each reporting date. Actuarial gains and losses are recognised in full, in the period in which they occur, and are presented in the income statement.

Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.

The defined benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service cost, net of the fair value of the plan assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

(i) Finance cost

Finance costs are recognised as expenses in the period in which they are incurred, except where they are included in the acquisition, construction or production costs of qualifying assets.

(j) Insurance

The Foreshore Authority’s insurance policies are held covering property, public liability, workers compensation, directors’ liability and other contingencies. These insurance covers are conducted through the NSW Treasury Managed Fund Scheme of self insurance for Government agencies. The premium is determined by the Fund Manager based on past claim experience and the insurance coverage is reviewed periodically to ensure that it is adequate.

(k) Accounting for the goods and services tax (GST)

Income, expenses and assets are recognised net of the amount of GST, except where:

•theamountofGSTincurredbytheentityasapurchaserthatisnotrecoverablefromtheAustralianTaxationOfficeisrecognised as part of the cost of acquisition of an asset or as part of an item of expense

•receivablesandpayablesarestatedwiththeamountofGSTincluded.

(l) Acquisitions of assets

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Foreshore Authority. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. Fair value means the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Where settlement of any part of cash consideration is deferred, its cost is the cash price equivalent, that is, the deferred payment amount is effectively discounted at an asset-specific rate.

(m) Property, plant and equipment

The Foreshore Authority’s policy is to capitalise all costs incurred in property development.

Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised.

(n) Revaluation of physical non current assets

Physical non-current assets are valued in accordance with the Valuation of Physical Non-Current Assets at Fair Value Policy and Guidelines Paper (TPP 07-01). This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment and AASB 140 Investment Property.

The fair value of land under a prepaid long-term lease is negligible and as such it is recorded at $1 in the asset register. However, land under a prepaid long-term lease, irrespective of whether an upfront lease income was received, that continues to receive a rental stream is measured at fair value as per AASB 140 Investment Property.

Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost. Land and buildings, including open spaces and roads, are revalued at least every five years or with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at reporting date.




On 1 July 2006, buildings were revalued by Jones Lang Lasalle, with separate values assigned for base buildings and for plant and equipment and fittings within these buildings. In accordance with AASB 116 and TPP 07-1, since plant and equipment and fittings within these buildings have relatively shorter useful lives, these are now recognised and depreciated separately at rates that more accurately reflect their respective useful lives.

(o) Depreciation of property, plant and equipment

Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the Foreshore Authority. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items.

Land is not a depreciable asset.

Depreciation of art and artefacts is not recognised because the useful life and the net amount to be recovered at the end of the useful life cannot be reliably measured. The decision not to recognise depreciation for these assets is reviewed annually.

The following depreciation rates were applied in 2006/07 and 2005/06.

Rate %

Computer equipment 33 Furniture and fittings 10-20 Motor vehicles 10-20 Plant and equipment 2.5-20 Property (base buildings and improvements) 2.5

(p) Major inspection costs

When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria is satisfied.

(q) Restoration costs

The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability.

(r) Maintenance

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.

(s) Leased assets

(i) Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are initially recognised at their fair value or, if lower, at amounts equal to the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance leased assets are amortised on a straight-line basis over the estimated useful life of the asset.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

(ii) Lease incentive

Lease incentives include upfront cash payments to the lessee or the reimbursement or assumption by the Foreshore Authority, as the lessor, of costs of the lessee (such as relocation costs, leasehold improvements, fitout contributions and costs associated with a pre-existing lease commitment). Alternatively, the initial period of the lease term may be agreed to be rent-free or at a reduced rent, and shall be recognised in accordance with the Interpretations 115.

(iii) Operating lease incentives

The above represent a reduction of rental income over the lease term on a straight-line basis.

(t) Investment properties

The Foreshore Authority owns properties held to earn rentals and/or for capital appreciation. Investment properties are stated at fair value supported by market evidence at the balance date. Gains or losses arising from changes in fair value are included in the income statement in the period in which they arise. No depreciation is charged on investment properties.




(u) Intangible assets

Intangible assets are only recognised if it is probable that future economic benefits will flow to the Foreshore Authority and the cost of the asset can be measured reliably.

The useful lives of intangible assets are assessed to be infinite. Intangible assets are measured initially at cost and subsequently at fair value only if there is an active market. As there is not an active market for the Foreshore Authority’s intangible assets, the assets are carried at cost, less any accumulated amortisation.

The Foreshore Authority’s intangible assets are amortised using the straight-line method at a rate of 33%, less their residual values.

Given the Foreshore Authority is a not-for-profit entity, intangible assets are exempt from impairment testing.

(v) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed and determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on transaction cost or face value.

Short-term receivables with no stated interest rate are measured at the original invoice amount, less an allowance for impairment.

All financial assets are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that the Foreshore Authority will not be able to collect all amounts due. The amount of the impairment loss is recognised in the income statement.

(w) Inventories

Inventory comprises retail and publicity material held for resale. It also includes all property that is held for development and eventual sale. Property inventory includes the acquisition cost of land and buildings, rights of way and easements together with development costs. They also include the capitalised costs of planning, project management, feasibility studies, design and construction. Inventories are stated at the lower of cost or net realisable value.

(x) Other assets

Other assets including prepayments are recognised on a cost basis.

(y) Payables

These amounts represent liabilities for goods and services provided to the Foreshore Authority and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(z) Borrowings

Borrowings are initially recognised at fair value, net of transactions costs. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement, over the period of the borrowings, using the effective interest method.

(aa) Contributions to State Government and tax equivalent

(i) Income tax equivalent

Under TPP 03-04 Tax Equivalent Regime for Government Businesses the Foreshore Authority is subject to paying tax equivalents which are calculated based on the accounting profit model, where the prevailing company tax rate is applied to the accounting profit. The Foreshore Authority has obtained approval from the Office of State Revenue to exclude the following additional items from its accounting profit for the purpose of calculating its tax liability:

•amortisedleasedincomeforlong-termleasesenteredintobefore1January2007

•unrealisedmovementsinthefairvalueoftheForeshoreAuthority’sinvestmentproperties.

In accordance with the NSW Treasury requirements under the Tax Equivalent Regime, the Foreshore Authority does not practice tax effective accounting.

(ii) Contributions to State Government

Contributions to State Government are set by negotiation between shareholders and the Board and management of the Foreshore Authority with the ultimate determination reserved for shareholders. Consideration is given to the Foreshore Authority’s working capital, investment capital requirements, provision of social and non-commercial activities and an appropriate contingency for financial flexibility.

(ab) New Australian accounting standards issues

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period. The Foreshore Authority did not early adopt any of these Accounting Standards and Interpretations that are not yet effective:




•AASB7andAASB2005Financial Instruments: Disclosures (1 January 2007)

•AASBInterpretation10Interim Financial Reporting and Impairment (1 November 2006)

•AASB101Presentation of Financial Statements (1 January 2007)

•AASB2007-04Amendments to Australian Accounting Standards arising from ED 151 and other Amendments (1 July 2007)

•AASB8andAASB2007-3Operating Segments (1 January 2009)

•AASB123Borrowing Costs (1 January 2009)

•AASB2Share-Based Payment: AASB 2007-1 (February 2007) that is applicable to annual reporting period beginning on or after 1 March 2007. The amendments to AASB 2 (and Interpretation 11) apply to 30 June 2008 and to 31 December 2009 balancing companies

•Interpretation11Group and Treasury Share Transactions (1 March 2007)

•Interpretation129Service Concession Arrangements: Disclosure (1 January 2008).

It is considered that the impact of these new standards and interpretations in future periods will have no material impact on the financial statements of the Foreshore Authority.

(ac) Financial instruments

Financial instruments give rise to positions that are a financial asset of the Foreshore Authority and a financial liability (or equity instrument) of the other party. For the Foreshore Authority these include cash, receivables, trade and other payables, and loans.

In accordance with Australian Accounting Standard AASB139 Financial Instruments: Recognition and Measurement, disclosure of the carrying amounts for each of the AASB139 categories of financial instruments is disclosed in Note 43. The specific accounting policy in respect of each class of such financial instrument is stated hereunder.

Classes of instruments are recorded and their terms and conditions measured in accordance with AASB139 as follows:

(i) Cash

Cash is carried at nominal values reconcilable to monies on hand and independent bank statements

The Foreshore Authority has investments with the NSW Treasury Corporation’s Hour-Glass facilities. The Foreshore Authority’s investment is represented by a number of units of a management investment pool with each particular pool having different horizons and being comprised of a mix of asset classes appropriate to that investment horizon. NSW Treasury Corporation appoints and monitors the application of appropriate investment guidelines.

This investment is generally able to be redeemed daily by 12pm. The value of the investment held can increase as well as decrease depending on market conditions. The value of the above investment represents the Foreshore Authority’s share of the value of the underlying assets of the facility, and those assets as stated at net value. The weighted average rate of return on these investments during the year was 6.23% (2006: 5.56%).

(ii) Receivables

Receivables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables.

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. An allowance for impairment of receivables is established when there is objective evidence that the entity will not be able to collect all amounts due. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Bad debts are written off as incurred.

Terms and conditions – Accounts are generally issued on 30-day terms.

(iii) Trade and other payables

Payables represent liabilities for goods and services provided to the Foreshore Authority. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. Payables are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Foreshore Authority.

Terms and conditions – Trade liabilities are settled within any terms specified. If no terms are specified, payment is made by the end of the month following the month in which the invoice is received.

(iv) Loans from NSW Treasury Corporation

Interest on loans from NSW Treasury Corporation is fixed over the term of the loan.





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 3 – Revenue from continuing operations

(a) Operating revenue

Sydney Convention and Exhibition Centre revenue 66,452 57,779 66,452 57,779

Car parks revenue 12,661 11,983 12,661 11,983

Other major assets revenue 3,724 1,133 3,724 1,133

Operating lease revenue 49,820 51,986 49,820 51,986

Long-term lease revenue 4,844 4,812 4,844 4,812

Fair value increment on investment properties (refer Note 2(t)) - 5,696 - 5,696

Fair value increment on property, plant and equipment (refer Note 2(n) and Note 17(c)) 2,845 - 2,845 -

Property sales proceeds – gross 45 3,530 45 3,530

Development contributions – Section 94 3,035 5,569 3,035 5,569

Development contributions 303 302 303 302

Grants 205 - 205 -

Visitor Centre sales 1,989 1,818 1,989 1,818

Marketing revenue 3,060 2,134 3,060 2,134

Interest revenue 4,431 5,031 4,431 5,031

Other 5,225 5,163 5,225 7,815

158,640 156,936 158,640 159,588

(b) Expenses from continuing operations

Other expenses include:

Administration 9,324 8,595 9,324 8,595

Fair value decrement on investment properties (refer Note 2(t)) 1,769 - 1,769 -

Property sales – cost of goods sold 18 1,801 18 1,801

Visitor Centre sales – cost of goods sold 1,088 896 1,088 896

Insurance 972 1,095 972 1,095

Consultants 149 217 149 217

Auditor’s remuneration – audit of financial statements 176 175 176 175

Impairment expense on receivables 34 151 34 151

Marketing and advertising 8,711 7,440 8,711 7,440

Affordable housing levy 14 1,176 14 1,176

Repairs and maintenance 12,034 12,321 12,034 12,321

Grants:

Sydney Community Foundation - 10 - 10

The Rocks Chamber of Commerce - 40 - 40

National Trust - 250 - 250

City of Sydney 100 100 100 100

34,389 34,267 34,389 34,267

Included in the 2006/07 ’administration expenses’ is $250,000 sponsorship to the National Trust of Australia.





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Depreciation and amortisation expense:

Depreciation of property, plant and equipment 14,352 12,854 14,352 12,854

Amortisation of leased assets 641 617 641 617

Amortisation of intangible assets 267 92 267 92

Total depreciation and amortisation expense 15,260 13,563 15,260 13,563

Finance costs:

Interest on borrowing 662 659 662 659

Government guarantee levy 91 116 91 116

Interest expense on leased assets 119 108 119 108

Total finance costs 872 883 872 883

Employee expenses include:

Directors’ fees 172 197 172 197

Employee related expenses 25,322 23,920 - -

Personnel services expenses (Note 1) - - 25,322 23,920

25,494 24,117 25,494 24,117

Property related expenses include:

Direct operating expenses 17,216 18,328 17,216 18,328

Others 53,785 49,693 53,785 49,693

71,001 68,021 71,001 68,021

Reconciliation of total maintenance expense:

Maintenance expense – contracted labour and other (refer Note 3(b)) 12,034 12,321 12,034 12,321

Employee related maintenance expenses 1,597 1,492 - -

Personnel services relating to maintenance - - 1,597 1,492

Total maintenance expense 13,631 13,813 13,631 13,813





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 4 – Income tax equivalent

Accounting surplus: 11,624 16,085 11,624 18,737

Prepaid revenue (4,864) (4,833) (4,864) (4,833)

Surplus on sale of land - (1,729) - (1,729)

Fair value (increment)/decrement on investment property 1,769 (5,696) 1,769 (5,696)

Superannuation revenue (1,071) (2,456) (1,071) (2,456)

Other unrealised gains (asset additions) (3,433) - (3,433) -

Adjustment relating to Cooks Cove project - - - (2,652)

Notional taxable surplus 4,025 1,371 4,025 1,371

Income tax equivalent calculated at 30% of adjusted operating surplus 1,208 399 1,208 399

Adjustment in income tax equivalent due to prior year adjustment (refer Note 16) - 12 - 12

1,208 411 1,208 411

Note 5 – Current assets – cash and cash equivalents

Cash at bank and on hand 5,116 5,230 5,116 5,230

NSW Treasury Corporation- Hour Glass short-term cash facility 68,383 72,422 68,383 72,422

73,499 77,652 73,499 77,652

Note 6 – Receivables

Current

Rental debtors 736 494 736 494

Sundry debtors 2,937 3,435 6,127 6,374

Goods and services tax recoverable 1,724 1,637 1,724 1,637

Deferred property settlement proceeds - 5,800 - 5,800

Other prepayments and accrued revenue 1,795 1,953 1,795 1,953

7,192 13,319 10,382 16,258

Less: Impairment allowance (167) (153) (167) (153)

7,025 13,166 10,215 16,105

Non-current

Superannuation (refer Note 14) 64 - - -

Receivable from subsidiary – superannuation - - 64 -

Deferred property settlement proceeds – Global Switch - 13,297 - 13,297

64 13,297 64 13,297




Deferred property settlement – Global Switch

On 6 June 2005, the Foreshore Authority completed a contract for the sale of half of the former Government Printing Office site, known as the Global Switch building. Under the terms of the contract, the Foreshore Authority would receive $22.2 million in four installments, plus interest payment on the deferred amount. The contract also allowed the purchaser to pay the Foreshore Authority at any time, as a single lump-sum, remaining unpaid instalments including interest on these, calculated up until the date of these payments. On 27 March 2007, the Foreshore Authority received a lump sum of $13.627 million, which included $307,491 of interest. At balance date there was no amount outstanding to the Foreshore Authority from the sale of Global Switch.


2007 2006 2007 2006 $’000 $’000 $’000 $’000

Impairment allowance

Opening balance 153 155 153 155

Increase/(decrease) in allowance 14 (2) 14 (2)

167 153 167 153

Note 7 – Inventories

Current

Trading stock (at cost) 971 859 971 859

971 859 971 859Non-current

Properties developed for eventual sale (at net realisable value) 4,090 4,090 4,090 4,090

4,090 4,090 4,090 4,090

Note 8 – Investment property

Balance at the beginning of financial year (at fair value) 474,939 462,938 474,939 462,938

Additions from subsequent expenditure 10,657 6,305 10,657 6,305

Transfer from property, plant and equipment 3,803 - 3,803 -

Net gain/(loss) from fair value adjustments (1,769) 5,696 (1,769) 5,696

Balance at the end of financial year (at fair value) 487,630 474,939 487,630 474,939

Property interests held under operating leases, including 99 year leases, are classified and accounted for as investment property. The fair value of land under a prepaid long-term lease is negligible and as such it is recorded at $1 in the asset register (TPP 06-3).

However the fair value will increase (or re-emerge) towards the end of the lease term as the effect of the encumbrance diminishes.

Land under a prepaid long-term lease, irrespective of whether an upfront lease revenue was received, that continues to receive a rental stream, will be measured at fair value per AASB 140 Investment Property.

The fair value of the Foreshore Authority’s investment property at the end of the financial year has been arrived at on the basis of a valuation carried out at that date by Jones Lang LaSalle, independent valuers not related to the consolidated entity. The valuation, which conforms to Australian Valuation Standards, was arrived at by reference to market evidence of transaction prices for similar properties.

Net revenue derived from investment properties

Rental revenue 40,001 40,057 40,001 40,057

Direct operating expenses arising from investment properties that generate rental revenue (5,759) (5,777) (5,759) (5,777)

Direct operating expenses arising from investment properties that did not generate rental revenue (10) (30) (10) (30)

Total 34,232 34,250 34,232 34,250





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 9 – Property, plant and equipment

(a) Amounts shown in the balance sheet are derived as follows:

Land and buildings (including open spaces and roads)

At gross value 509,349 524,416 509,349 524,416

Accumulated depreciation (13,440) (16,954) (13,440) (16,954)

Carrying amount 495,909 507,462 495,909 507,462

Plant and equipment

At gross value 81,003 40,196 81,003 40,196

Accumulated depreciation (33,847) (18,773) (33,847) (18,773)

Carrying amount 47,156 21,423 47,156 21,423

Leased assets

At gross value 4,132 3,291 4,132 3,291

Accumulated amortisation (2,167) (1,526) (2,167) (1,526)

Carrying amount 1,965 1,765 1,965 1,765

Art and artefacts

At gross value 8,178 4,298 8,178 4,298

Accumulated depreciation – – – -

Carrying amount 8,178 4,298 8,178 4,298

Work in progress 24,347 23,772 21,157 20,833

Total property, plant and equipment 577,555 558,720 574,365 555,781

At gross value 627,009 595,973 623,819 593,034

Accumulated depreciation and amortisation (49,454) (37,253) ( 49,454) (37,253)

Total property, plant and equipment 577,555 558,720 574,365 555,781





2007 2007 $’000 $’000

(b) Reconciliations

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below.

Land and buildings (includes open spaces and roads)Carrying amount at 1 July 507,462 507,462Additions 14,840 14,840Net transfer to plant and equipment (7,211) (7,211)Transfer to investments (3,176) (3,176)Asset revaluation (8,190) (8,190)Disposals (133) (133)Depreciation expense (7,683) (7,683)

Carrying amount at 30 June 495,909 495,909

Plant and equipmentCarrying amount at 1 July 21,423 21,423Additions 12,815 12,815Disposals (169) (169)Transfer to investments (628) (628)Transfer to intangibles (135) (135)Net transfer from land and buildings 7,211 7,211Revaluations 13,308 13,308Depreciation expense (6,669) (6,669)


Leased assetsCarrying amount at 1 July 1,765 1,765Additions 841 841Amortisation expense (641) (641)


Art and artefactsCarrying amount at 1 July 4,298 4,298Additions 306 306Asset revaluation 3,574 3,574Depreciation expense - -


Work in progress

Opening balance 23,772 20,833Additions 35,266 35,015

Capitalised and transferred to fixed assets (34,691) (34,691)

24,347 21,157

Property, plant and equipment 577,555 574,365





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 10 – Intangible assets

Gross carrying amount 1,149 850 1,149 850

Less accumulated amortisation (510) (251) (510) (251)

639 599 639 599

Net carrying amount at start of year 599 191 599 191

Additions 140 500 140 500

Disposal (23) (23)

Transfer from plant and equipment 135 - 135 -

Revaluation 32 - 32 -

Amortisation write-back 23 23

Amortisation expense (267) (92) (267) (92)

Net carrying amount at end of year 639 599 639 599

Note 11 – Payables

Current

Trade creditors 8,001 11,297 8,001 11,297

Sundry creditors and accruals 13,171 9,887 13,171 9,887

Retention on contracts 140 206 140 206

Security deposits and bonds 808 713 808 713

Income tax equivalent payable 1,219 411 1,219 411

Forward deposits 10,834 9,206 10,834 9,206

Accrued interest 197 105 197 105

Payable to subsidiary – annual leave - - 2,427 2,370

Payable to subsidiary – long service leave - - 2,129 1,775

Payable – accrued salaries, wages and on-costs 100 141 100 141

34,470 31,966 39,027 36,111

Non-current

Payable to subsidiary – long service leave - - 356 325

Payable to subsidiary – superannuation - - - 1,007

- - 356 1,332





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 12 – Other liabilities

Current

Finance lease liability 813 783 813 783

Revenue in advance 1,397 839 1,397 839

Unamortised revenue – upfront lease payment (refer Note 2(g)) 4,844 4,844 4,844 4,844

7,054 6,466 7,054 6,466Non-current

Finance lease liability 758 877 758 877

Revenue in advance 1,683 1,706 1,683 1,706

Unamortised revenue – upfront lease payment (refer Note 2(g)) 403,198 404,913 403,198 404,913

405,639 407,496 405,639 407,496

Included in ’unamortised revenue’ are upfront lease payments in relation to long-term leases, generally 99 years. From time to time, the Foreshore Authority enters into long-term leases for properties. Typically these leases are for periods of 99 years, and because titles do not pass at the end of the lease terms, the risks and rewards are not transferred. In accordance with AASB 117 Leases paragraph 3 and NSW Treasury Policy TPP06-3 Lessor Accounting for Prepaid Long Term Leases of Land, they are classified as operating leases. Upfront lease payments are recognised as revenue on a straight-line basis over the term of their lease.

In 2006/07, the Foreshore Authority entered into a lease call option for the development site ’Darling Island Stage 3’ for an upfront lease payment, 10% of which was received in November 2006 and the remaining was received after the balance date, in July 2007.

Under the lease call option, the Foreshore Authority will grant a 99 year lease to the private developer upon completion of the building on the site by the developer. Under the conditions of this arrangement, the prepaid rent is not to be paid to the Foreshore Authority until practical completion or commencement of lease. Hence the cash already provided to the Foreshore Authority is by way of loan. This loan does not contain any of the normal indicia of financial accommodation. There is no interest payable and is essentially non-recourse to the Foreshore Authority. If the option arrangements are terminated before the lease commences, the private developer must pay the Foreshore Authority damages equivalent to the amount of the loan.


2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 13 – Borrowings

Non-current

Loans with NSW Treasury Corporation 10,000 10,000 10,000 10,000

10,000 10,000 10,000 10,000As at 30 June 2007 the maturity profile of borrowings was:

Not later than one year (current liabilities) - - - -

Later than 1 year but not later than 5 years 5,000 - 5,000 -

Later than 5 years 5,000 10,000 5,000 10,000

10,000 10,000 10,000 10,000

The Authority as at 30 June 2007 has a total $104 million debt facility.

The net fair value of these loans at balance date was $10 million (2006: $10 million). The weighted average effective interest rate for the year was 7.51% (2006: 7.76%) for loans.




Note 14 – Superannuation

The superannuation schemes for the Foreshore Authority’s employees are:

•StateAuthoritiesSuperannuationScheme(SASS)

•StateSuperannuationScheme(SSS)

•StateAuthoritiesNon-contributorySuperannuationScheme(SANCS).

These schemes are all defined benefit schemes–at least a component of the final benefit is derived from a multiple of member salary and years of membership.

All the schemes are closed to new members. The assessed liability for the Foreshore Authority at 30 June 2007 and the funds held at the reserve account at Pillar Administration are:

(a) Defined Benefit Scheme as at 30 June 2007 (AASB 119 Employee Benefits)

SASS SANCS SSS Total

Member numbers

Contributors 9 12 3 24

Deferred benefits 0 0 5 5

Pensioners 0 0 15 15

Pensions fully commuted 0 0 1 1

$ ’000 $ ’000 $ ’000 $ ’000

Accrued liability (2,550) (486) (10,692) (13,728)

Estimated reserve account balance 2,164 334 11,294 13,792

(386) (152) 602 64

Future Service Liability (724) (230) (224) (1,178)

Surplus in excess of recovery available from schemes - - - -

Net asset/(liability) (386) (152) 602 64

Defined Benefit Scheme as at 30 June 2006 (AASB 119 Employee Benefits)


Member numbers





$ ’000 $ ’000 $ ’000 $ ’000



(142) (102) (763) (1,007)



Net asset/(liability) (142) (102) (763) (1,007)

The Future Service Liability (FSL) does not have to be recognised by the Foreshore Authority. It is only used to determine if an asset ceiling limit should be imposed (AASB 119 paragraph 58). No asset ceiling is imposed because there is no surplus in excess of recovery.




(b) Defined Benefit Scheme (AAS25 Financial Reporting by Superannuation Plans)

Reconciliation of the assets and liabilities recognised in the balance sheet

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000

Present value of defined benefit obligations (2,550) (486) (10,692)

Fair value of fund assets 2,164 334 11,294

(386) (152) 602

Surplus in excess of recovery available from schemes - - -

Unrecognised past service cost - - -

Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602

SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000



(142) (102) (763)



Net asset/(liability) disclosed in balance sheet as at 30 June 2006 (142) (102) (763)

All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.

Movement in net liability/asset recognised in balance sheet

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000

Net asset/(liability) at start of year (142) (102) (763)

Net revenue/(expense) recognised in the income statement (355) (79) 1,323

Contributions 111 29 42


SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000

Net asset/(liability) at start of year (260) (210) (2,992)

Net expense recognised in the income statement 366 72 1,827

Contributions (248) 36 402





Total revenue recognised in income statement

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000

Current service cost (87) (27) (47)

Interest on obligation (110) (25) (630)

Expected return on plan assets 134 26 756

Net actuarial (losses)/gains recognised in year (292) (53) 1,244

Change in surplus in excess of recovery available from scheme - - -

Past service cost - - -

(Losses)/gains on curtailment and settlements - - -

Total included in income statement (355) (79) 1,323

SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000




Net actuarial (losses)/gains recognised in year 456 106 1,860




Total included in income statement 367 72 1,827

Actual return on plan assets

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000

Actual return on plan assets 254 45 1,446

SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000


Valuation method and principal actuarial assumptions at the reporting date

i) Valuation method

The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

ii) Economic assumptions

2007 2006

Discount rate at 30 June 6.4% p.a. 5.9% p.a.

Expected return on plan assets at 30 June 7.6% 7.6%

Expected salary increases 4.0% p.a. to 2008, 3.5% p.a. thereafter

4.0% p.a. to 2008, 3.5% p.a. thereafter

Expected rate of CPI increase 2.5% p.a. 2.5% p.a.




Recommended contribution rates for the entity are:

SASS SANCS SSS

Multiple of member contributions % member salary Multiple of member contributions

2007 2.30 2.50 0.93

2006 2.30 2.50 0.93

The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer.

Under this method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.

The economic assumptions adopted for the last actuarial review of the Fund were:

Weighted average assumptions 2007 2006

Expected rate of return on fund assets 7.3% p.a. 7.3% p.a.

Expected salary increase rate 4.0% p.a. 4.0% p.a.


Nature of asset/liability

If a surplus exists in the Foreshore Authority’s interest in the Fund, the Foreshore Authority may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.





2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 15 – Provisions

Current

Annual leave 2,427 2,370 - -

Long service leave 2,129 1,775 - -

4,556 4,145 - -

Contributions to State Government 5,000 11,000 5,000 11,000

Provision for Ballast Point – remediation and demolition 2,125 1,268 2,125 1,268

Provision for Sharing Sydney Harbour Access Program 1,471 1,467 1,471 1,467

Other 7,281 5,956 7,281 5,956

15,877 19,691 15,877 19,691

20,433 23,836 15,877 19,691

Non-current

Long service leave 356 325 - -

Superannuation (refer Note 14) - 1,007 - -

356 1,332 - -

Aggregate employee benefits and related on-costs

Short-term

Annual leave 2,427 2,370 - -

Long service leave 151 149 - -

2,578 2,519 - -

Long-term

Long service leave 2,334 1,951 - -

Superannuation - 1,007 - -

2,334 2,958 - -

Total 4,912 5,477 - -

In accordance with the NSW Treasury circular TC07/04 Accounting for Long Service Leave and Annual Leave and AASB 101 Presentation of Financial Statements, all annual leave and unconditional long service leave is presented as a current liability in the balance sheet.




Note 16 – Correction of prior years’ errors

(a) During 2006/07, the Foreshore Authority reviewed classification of its properties against the requirements of AASB 140 Investment Property. The review identified an understatement of $14.8 million under the category ’ investment property’ and an overstatement of $3.4 million under the category ’property, plant and equipment’ disclosed in the financial report for the year ended 30 June 2006. This amount has been appropriately corrected and reported as a prior period error in the financial statements for the year ended 30 June 2007.

(b) The Foreshore Authority conducted an analysis of revenue recognised in relation to property it leased to other entities on a long-term basis involving upfront receipts. The analysis identified a net overstatement of ’unamortised revenue-upfront lease payment’ of $30.1 million, including $30.4 million relating to properties, the legal ownership of which is either vested or transfer agreed under Declaration of Trust to other agencies. The adjustments have been largely effected against accumulated fund balances as at 1 July 2005 as they represent prior period errors.


2006 2006 $’000 $’000

Financial impact of (a) and (b) is summarised below:

Effect of correction in previous year:

Surplus as reported in the financial report ended 30 June 2006 16,417 19,069

Correction of error –

Depreciation expense 41 41

Fair value increment income (615) (615)

Income tax equivalent expense (12) (12)

Long-term lease income (157) (157)

Restated surplus for the period ended 30 June 2006 15,674 18,326

Opening equity as reported in the financial report ended 30 June 2006 613,123 610,471


Investment property reclassification 11,426 11,426

Unamortised income – upfront lease payment 30,142 30,142

Restated opening equity for the period ended 30 June 2006 654,691 652,039

Equity as reported in the financial report ended 30 June 2006 621,401 621,401


Investment property reclassification 11,426 11,426

Depreciation expense 41 41

Fair value increment income (615) (615)

Income tax equivalent expense (12) (12)

Long-term lease income (157) (157)

Unamortised income – upfront lease payment 30,142 30,142

Restated equity for the period ended 30 June 2006 662,226 662,226





Restated Original Restated Original

2006 2006 2006 2006

The Foreshore Authority’s correction of prior years’ errors impact on opening equity as at 1 July 2005:

Opening equity balance as at 1 July 2005 654,691 613,123 652,039 610,471

The Foreshore Authority’s correction of prior years’ errors impact on the surplus for the financial year ended 30 June 2006:

Revenue

Fair value increment on investment properties 5,696 6,311 5,696 6,311

Long-term lease revenue 4,812 4,969 4,812 4,969

Total revenue stated in the income statement for the year ended 30 June 2006 156,936 157,708 159,588 160,360

Expenses

Depreciation and amortisation expense stated in the income statement for the year ended 30 June 2006 13,563 13,604 13,563 13,604

Total expenses stated in the income statement for the year ended 30 June 2006 140,851 140,892 140,851 140,892

Income tax equivalent

Income tax equivalent stated in the income statement for the year ended 30 June 2006 411 399 411 399

Surplus for the year after income tax equivalent

Surplus for the year after income tax equivalent stated in the income statement for the year ended 30 June 2006 15,674 16,417 18,326 19,069

Non-current assets

Property, plant and equipment stated in the balance sheet as at 30 June 2006 558,720 562,058 555,781 559,119

Investment properties stated in the balance sheet as at 30 June 2006 474,939 460,749 474,939 460,749

Total non-current assets stated in the balance sheet as at 30 June 2006 1,051,645 1,040,793 1,048,706 1,037,854

Total assets

Total assets stated in the balance sheet as at 30 June 2006 1,143,322 1,132,470 1,143,322 1,132,470

Current liabilities

Payables stated in the balance sheet as at 30 June 2006 31,966 31,954 36,111 34,473

Other liabilities stated in the balance sheet as at 30 June 2006 6,466 6,591 6,466 6,591

Provisions stated in the balance sheet as at 30 June 2006 23,836 22,210 19,691 19,691

Total current liabilities stated in the balance sheet as at 30 June 2006 62,268 60,755 62,268 60,755


Payables stated in the balance sheet as at 30 June 2006 - - 1,332 2,958

Other liabilities stated in the balance sheet as at 30 June 2006 407,496 437,356 407,496 437,356

Provisions stated in the balance sheet as at 30 June 2006 1,332 2,958 - -

Total non-current liabilities stated in the balance sheet as at 30 June 2006 418,828 450,314 418,828 450,314





Restated Original Restated Original

2006 2006 2006 2006

Total liabilities

Total liabilities stated in the balance sheet as at 30 June 2006 481,096 511,069 481,096 511,069

Net assets

Net assets stated in the balance sheet as at 30 June 2006 662,226 621,401 662,226 621,401

Accumulated funds

Accumulated funds stated in the balance sheet as at 30 June 2006 662,226 621,401 662,226 621,401

Total equity

Total equity stated in the balance sheet as at 30 June 2006 662,226 621,401 662,226 621,401


2007 2006 2007 2006 $’000 $’000 $’000 $’000

Note 17 – Equity reconciliation

(a) Accumulated funds

Balance at the beginning of financial year 662,226 654,691 662,226 652,039

Surplus for the year 10,416 15,674 10,416 18,326

Contributions by owner - 2,861 - 2,861

Contributions to State Government (5,000) (11,000) (5,000) (11,000)

667,642 662,226 667,642 662,226

(b) Asset revaluation reserve

Balance at the beginning of financial year - - - -

Increment/(decrement) on revaluation of property, plant and equipment 5,879 - 5,879 -

Balance at the end of financial year 5,879 - 5,879 -

(c) Asset revaluations

Plant and equipment

During the year, a complete stocktake of fixed assets was undertaken in the Foreshore Authority. All assets identified in the stocktake (except the ones purchased during the year) were fair valued as at 1 July 2006 by independent valuer Rodney Hyman Asset Services Pty Ltd. The valuation which conforms to Australian Valuation Standards, was arrived at by reference to market based evidence. For highly specialised assets with a high level of installation, depreciated replacement cost method was adopted. Asset revaluation reserve has been created to account for the asset increments between fair values and their carrying values as at 1 July 2006.

Base buildings and fittings within these buildings

On 1 July 2006, the buildings were revalued by Jones Lang LaSalle, with separate values assigned for base buildings and for plant and equipment and fittings within these buildings. The valuations adopted fair value methodology determined by best available market evidence. However for Sydney Convention and Exhibition Centre, a specialised building, a depreciated replacement cost approach was adopted.

The net increase in the carrying amount is recognised in the surplus as it partly reverses a net revaluation decrease of the same class of assets recognised in the income statement in June 2004.

The financial impact of the above is detailed on the following page.




Asset Asset increment revaluation recognised Impact on reserve in income net assets increment statement

Plant and equipment 5,400 2,273 3,127

Art – paintings and sculpture 3,880 3,574 306

Base buildings (8,190) - (8,190)

Intangibles (software) 32 32 -

Plant and equipment within buildings 11,034 - 11,034

12,156 5,879 6,277

Note 18 – Capital and lease commitments

Capital commitments

Contracted as at balance date 11,918 8,434 11,918 8,434

11,918 8,434 11,918 8,434

The capital commitments above include GST of $1,083,437 (contingent asset), expected to be recoverable from the Australian Tax Office.

Operating lease payable commitments

Leasing arrangements

Operating leases relate to information technology, office equipment and motor vehicles. Most leases are for terms between two to three years. Future monthly payments are contracted for and are not included in these financial statements. Amounts stated are GST inclusive.


2007 2006 2007 2006 $’000 $’000 $’000 $’000

Payable within one year 503 1,328 503 1,328

Payable one year or later and no later than three years 290 1,303 290 1,303

Total including GST 793 2,631 793 2,631

The operating lease commitments above include input tax credits of $72,115 (contingent asset) that are expected to be recoverable from the Australian Tax Office.

Operating lease receivable commitments

Operating lease minimum revenue commitments in relation to non-cancellable leases, not recognised in the financial statements are receivable as follows:

Not later than one year 32,488 32,116 32,488 32,116

Later than one and not later than five years 95,157 93,788 95,157 93,788

Later than five years 1,033,790 958,374 1,033,790 958,374

Total including GST 1,161,435 1,084,278 1,161,435 1,084,278

The revenue commitments relate to leases in rental properties. These are entered into at market rates and on commercial terms. Regular market valuations and tendering processes are carried out to ensure commercial arrangements are maintained.




The lease commitments on rental properties include GST of $105,584,963 (contingent liability) that is expected to be payable to the Australian Tax Office.

Finance leases

Finance leases mainly relate to audio visual equipment with lease terms between three to five years.

Present value Minimum future of minimum future lease payments lease payments

2007 2006 2007 2006 $’000 $’000 $’000 $’000

Not later than one year 885 866 868 783

Later than one and not later than five years 775 937 703 877

Later than five years - - - -

Minimum lease payments 1,660 1,803 1,571 1,660

Less future interest payments (89) (143) - -

Present value of minimum lease payments 1,571 1,660 1,571 1,660

Included in financial statements (refer Note 12)

Current lease liability 813 783 813 783

Non-current lease liability 758 877 758 877

1,571 1,660 1,571 1,660

Note 19 – Contingent assets/liabilities

Apart from the amounts disclosed in Note 18, there are no known (quantifiable) contingent liabilities at balance date.

(a) In July 2004, the Land and Environment Court handed down a preliminary judgement awarding Walker Corporation Pty Ltd $60 million for its compensation claim in relation to Ballast Point.

Since December 2004, the Foreshore Authority and Walker Corporation have jointly held a security investment of $41 million with the Commonwealth Bank. In May 2005, the Foreshore Authority appealed the Court’s decision, on grounds of errors in law. Judgment for the appeal was handed down on 27 July 2005 and set aside orders for the compensation claim in 2004. The Court of Appeal remitted outstanding matters of the appeal to the Land and Environmental Court which reheard the compensation matter in February 2006.

On 4 April 2006, the Land and Environment Court ruled that the original valuation of $60 million should stand.

On 21 December 2006, the Court of Appeal allowed the Foreshore Authority’s appeal and remitted the matter to the Land and Environment Court for assessment of the market value of the land, according to law.

On 25 May 2007, the High Court granted Walker Corporation special leave to appeal the two Court of Appeal decisions. A determination from the High Court is not expected to occur for another six to twelve months. In the event that Walker Corporation loses its Appeal, the deposit will be claimed by the Foreshore Authority.

(b) The Foreshore Authority is in dispute with a sub-lessee over the validity of its tenancy. The matter has been before the Court but the Foreshore Authority and sub-lessee have entered into a Stand Still Agreement and agreed to a negotiation timetable which expired on 31 May 2007. The Court recently agreed to an extension of the negotiation timetable until 20 August 2008. The parties have agreed to put proceedings on hold for the duration of the Stand Still Agreement to enable negotiations to proceed. If negotiations fail, the matter will be referred back to the Court.




Note 20 – Notes to the cash flow statement

(a) Reconciliation of cash

For the purposes of the cash flow statement, cash includes cash on hand, in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:


2007 2006 2007 2006 $’000 $’000 $’000 $’000

Cash at bank and on hand 5,116 5,230 5,116 5,230

Investments (NSW Treasury Corporation) 68,383 72,422 68,383 72,422

73,499 77,652 73,499 77,652

The Foreshore Authority manages bank accounts on behalf of the Luna Park Trust Reserve and NSW Maritime. This money does not belong to the Foreshore Authority and is not included as a cash asset.

(b) Reconciliation of surplus after related income tax equivalent to net cash flows from operating activities

Operating surplus after income tax equivalent 10,416 15,674 10,416 18,326

Non-cash flows in operating surplus:

Depreciation and amortisation 15,260 13,563 15,260 13,563

Miscellaneous non-cash revenue (10,749) 301 (10,749) 587

Change in operating assets and liabilities

Decrease/(increase) in inventories (110) (275) (110) (275)

Decrease/(increase) in GST input tax credits (70) (1,032) (70) (1,032)

Decrease/(increase) in receivables 22,849 42,352 22,849 42,352

Decrease/((increase) in inter-company - 2,938 - -

(Decrease)/increase in creditors 1,016 (13,605) 1,016 (13,605)

(Decrease)/increase in provisions 1,559 (1,826) 1,559 (1,826)

Net cash flows from operating activities 40,171 58,090 40,171 58,090




Note 21 – Financial instruments

(a) Interest rate risk

Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates.

The Foreshore Authority’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and unrecognised, at the (consolidated) balance sheet date are as follows:

Floating interest rate

Fixed interest rate maturing in:

Non-interest bearing

Total carrying amount

as per the balance sheet

Weighted average effective interest

rateFinancial instruments 1 year or less Over 1 to 5 years

More than 5 years

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %

Financial assets

Cash 5,116 5,230 - - - - - - - - 5,116 5,230 6.05 5.43

NSW Treasury Corporation – Hour Glass short-term cash facility

72,422 72,422 - - - - - - - - 72,422 72,422 6.23 5.56

Receivables - - - - - - - - 7,444 26,463 7,444 26,463 - -

Total financial assets 77,538 77,652 - - - - - - 7,444 26,463 84,982 104,115 12.28 10.99

Financial liabilities

Loans with NSW Treasury Corporation - - - - 5,000 - 5,000 10,000 - - 10,000 10,000 7.77 7.76

Payables - - - - - - - - 34,470 31,966 34,470 31,966 - -

Finance lease liability - - 813 783 758 877 - - - - 1,571 1,660 6.26 5.75

Other - - - - - - 411,122 412,302 411,122 412,302 - -

Total financial liabilities - - 813 783 5,758 877 5,000 10,000 445,592 444,268 457,163 455,928 14.03 13.51

The weighted average interest rate risk is not applicable for non-interest bearing financial instruments.




(b) Credit risk

Credit risk is the risk of financial loss arising from another party to a contract or financial position failing to discharge a financial obligation thereunder. The Foreshore Authority’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the consolidated balance sheet.

2007 2006 $’000 $’000

Financial assets

Cash and cash equivalents 73,499 77,652

Receivables 7,089 26,463

Total financial assets 80,588 104,115

(c) Derivative financial instruments

The Foreshore Authority holds no derivative financial instruments.

Note 22 – Future development

In accordance with the Infrastructure Planning Cabinet Committee decision of July 2006, Sydney Ports Corporation will transfer land (Barangaroo site) to the Foreshore Authority. The transfer is expected to be completed in 2007/08 upon finalisation of certain conditions between the two entities.

Note 23 – Events after balance sheet date

There are no significant events after balance sheet date.

END OF AUDITED FINANCIAL STATEMENTS





1. The accompanying financial statements exhibit a true and fair view of the financial position of the Office of the Sydney Harbour Foreshore Authority as at 30 June 2007 and transactions for the year ended on that date.






OFFICE OF THE SYDNEY HARBOUR FORESHORE AUTHORITY



OFFICE OF THE SYDNEY HARBOUR FORESHORE AUTHORITYSTART OF AUDITED FINANCIAL STATEMENTS


Notes 2007 2006 $’000 $’000

Personnel services revenue 3 23,999 23,694

Employee related expenses 4 (23,999) (23,694)

Surplus from continuing operations - -





Notes 2007 2006 $’000 $’000

Current assets

Receivables 5 4,656 4,286

Total current assets 4,656 4,286

Non-current assets

Receivables 5 419 1,332

Total non-current assets 419 1,332

Total assets 5,076 5,618

Current liabilities

Payables 6 164 141

Provisions 6 4,556 4,145

Total current liabilities 4,721 4,286


Provisions 7 356 1,332

Total non-current liabilities 356 1,332

Total liabilities 5,076 5,618

Net assets - -

Equity

Accumulated funds 9 - -

Total equity - -




STATEMENT OF RECOGNISED INCOME AND ExPENSEFOR THE YEAR ENDED 30 JUNE 2007

2007 2006 $’000 $’000

Gain/(loss) on property revaluation - -

Net increases/(decreases) in equity - -

Net revenue and expense recognised directly in equity - -

Surplus/(deficit) for the year - -Total revenue and expense recognised for the year - -

The above statement of recognised income and expense is to be read in conjunction with the attached notes.



CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2007

2007 2006 $’000 $’000


Receipts from customers - -

Payment to suppliers and employees - -

Net cash flows from operating activities - -


Payments for property, plant and equipment - -

Net cash flows from investing activities - -


Investment - -

Dividend paid/received - -

Net cash flows from financing activities - -

Net increase/(decrease) in cash held - -

Cash at the start of the financial year - -

Cash at the end of the financial year - -






The Office of the Sydney Harbour Foreshore Authority (the Office) is a Division of the Government Service, established pursuant to Part 1 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at 66 Harrington Street, The Rocks, New South Wales.

The Office’s only function is to provide personnel services to Sydney Harbour Foreshore Authority (Foreshore Authority).



The financial report is a general-purpose financial report and is prepared on an accrual basis in accordance with Australian Accounting Standards which include Australian equivalent to International Financial Reporting Standards (AEIFRS), other authoritative pronouncements of the Australian Accounting Standards Board (AASB), the Interpretation, the requirements of the Public Finance and Audit Act 1983 and Financial Reporting Directions issued by the Treasurer.

Set out below is a summary of the significant accounting policies adopted by the Office.


(b) Significant accounting judgements, estimates and assumptions






(c) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised.

(d) Receivables

Receivables are recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred.

Receivables are recognised initially at fair value, usually based on transaction cost or face value.

Receivables are subject to annual review for impairment. An allowance for impairment is established when there is objective evidence that the Office will not be able to collect all amounts due. The amount of the impairment loss is recognised in the income statement.

(e) Payables

Payables represent liabilities for goods and services provided to the Office. Payables include accrued wages, salaries, and related on-costs (such as payroll tax, fringe benefits tax and workers compensation insurance) where there is certainty as to the amount and timing of settlement.

Payables are recognised at fair value, when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted.

(f) Employee benefit provisions and expenses

Provision is made for benefits accruing to employees in respect of wages and salaries, superannuation, annual leave, long service leave, and for sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.




Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The government bond rate of 6.26% was applied for discounting purposes.

The outstanding amounts of payroll tax, workers compensation insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.

Defined contribution plans

Contribution to defined contribution funds, such as Basic Benefit and First State Super, are expensed when incurred. It is calculated as a percentage of the employees’ salary. In 2005/06 and 2006/07, 9% was contributed.

Defined benefit superannuation plans

For defined benefit superannuation plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each reporting date. Actuarial gains and losses are recognised in full, in the period in which they occur, and are presented in the income statement.

Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.

The defined benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service cost, net of the fair value of the plan assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

(g) New Australian accounting standards issues

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period. The Office did not early adopt any of these accounting standards and interpretations that are not yet effective:


•AASBInterpretation 10 Interim Financial Reporting and Impairment (1 November 2006)








It is considered that the impact of these new standards and interpretations in future periods will have no material impact on the financial statements of the Office.




2007 2006 $’000 $’000

Note 3 – Revenue

Personnel services revenue 23,999 23,694

Note 4 – Expenses

Employee related expenses 23,827 23,497

Directors’ fees 172 197

Total employee related expenses 23,999 23,694

Note 5 – Receivables

Current

Receivable from parent entity – annual leave 2,427 2,370

Receivable from parent entity – long service leave 2,129 1,775

Receivable from parent entity – accrued salaries, wages and on-costs 100 141

4,656 4,286Non-current

Receivable from parent entity – long service leave 356 325

Receivable from parent entity – superannuation - 1,007

Superannuation (refer note 8) 64 -

419 1,332

Note 6 – Payables

Accrued salaries, wages and on-costs 100 141

Payable to parent entity – superannuation 64 -

164 141




2007 2006 $’000 $’000

Note 7 – Provisions

Current

Annual leave 2,427 2,370

Long service leave 2,129 1,775

4,556 4,145Non-current

Long service leave 356 325

Superannuation (refer note 8) - 1,007

356 1,332Aggregate employee benefits and related on-costs

Short-term

Annual leave 2,427 2,370

Long service leave 151 149

2,578 2,519Long-term

Long service leave 2,334 1,951

Superannuation - 1,007

2,334 2,958

Total 4,912 5,477

In accordance with the NSW Treasury circular TC07/04 Accounting for Long Service Leave and Annual Leave and AASB 101 Presentation of Financial Statements, all annual leave and unconditional long service leave is presented as a current liability in the balance sheet.




Note 8 – Superannuation

The superannuation schemes for the Office’s employees are:

•StateAuthoritiesSuperannuationScheme(SASS)

•StateSuperannuationScheme(SSS)

•StateAuthoritiesNon-contributorySuperannuationScheme(SANCS).

These schemes are all defined benefit schemes–at least a component of the final benefit is derived from a multiple of member salary and years of membership.

All the schemes are closed to new members. The assessed liability for the Foreshore Authority at 30 June 2007 and the funds held at the reserve account at Pillar Administration are:

(a) Defined Benefit Scheme as at 30 June 2007 (AASB 119 Employee Benefits)


Member numbers





$ ’000 $ ’000 $ ’000 $ ’000



(386) (152) 602 64



Net asset/(liability) (386) (152) 602 64

Defined Benefit Scheme as at 30 June 2006 (AASB 119 Employee Benefits)


Member numbers





$ ’000 $ ’000 $ ’000 $ ’000



(142) (102) (763) (1,007)



Net asset/(liability) (142) (102) (763) (1,007)

The Future Service Liability (FSL) does not have to be recognised by the Foreshore Authority. It is only used to determine if an asset ceiling limit should be imposed (AASB 119 paragraph 58). No asset ceiling is imposed because there is no surplus in excess of recovery.




(b) Defined Benefit Scheme (AAS25 Financial Reporting by Superannuation Plans)

Reconciliation of the assets and liabilities recognised in the balance sheet

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000



(386) (152) 602




SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000



(142) (102) (763)




All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.




Movement in net liability/asset recognised in balance sheet

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000

Net asset/(liability) at start of year (142) (102) (763)

Net revenue/(expense) recognised in the income statement (355) (79) 1,323

Contributions 111 29 42


SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000

Net asset/(liability) at start of year (260) (210) (2,992)

Net expense recognised in the income statement 366 72 1,827

Contributions (248) 36 402


Total revenue recognised in income statement

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000




Net actuarial (losses)/gains recognised in year (292) (53) 1,244




Total included in income statement (355) (79) 1,323

SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000




Net actuarial (losses)/gains recognised in year 456 106 1,860




Total included in income statement 367 72 1,827




Actual return on plan assets

SASS 30 June 2007

$ ’000

SANCS 30 June 2007

$ ’000

SSS 30 June 2007

$ ’000


SASS 30 June 2006

$ ’000

SANCS 30 June 2006

$ ’000

SSS 30 June 2006

$ ’000


Valuation method and principal actuarial assumptions at the reporting date

i) Valuation method

The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

ii) Economic assumptions

2007 2006

Discount rate at 30 June 6.4% p.a. 5.9% p.a.

Expected return on plan assets at 30 June 7.6% p.a. 7.6% p.a.

Expected salary increases 4.0% p.a. to 2008, 3.5% p.a. thereafter

4.0% p.a. to 2008, 3.5% p.a. thereafter


Recommended contribution rates for the entity are:

SASS SANCS SSS

Multiple of member contributions % member salary Multiple of member contributions

2007 2.30 2.50 0.93

2006 2.30 2.50 0.93

The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer.

Under this method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.




The economic assumptions adopted for the last actuarial review of the Fund were:

Weighted average assumptions 2007 2006

Expected rate of return on fund assets 7.3% p.a. 7.3% p.a.

Expected salary increase rate 4.0% p.a. 4.0% p.a.


Nature of asset/liability

If a surplus exists in the Foreshore Authority’s interest in the Fund, the Foreshore Authority may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.

2007 2006 $’000 $’000

Note 9 – Accumulated funds

Balance at the beginning of financial year - -

Surplus for the year - -

Balance at the end of financial year - -






1. The accompanying financial statements exhibit a true and fair view of the financial position of the Sydney Harbour Foreshore Authority Casual Staff Division as at 30 June 2007 and transactions for the year ended on that date.






SYDNEY HARBOUR FORESHORE AUTHORITY CASUAL STAFF DIVISION



SYDNEY HARBOUR FORESHORE AUTHORITY CASUAL STAFF DIVISION START OF AUDITED FINANCIAL STATEMENTS


17 March 2006 2007 to 30 June 2006 $’000 $’000

Personnel services revenue 1,495 424

Employee related expenses (1,495) (424)

Surplus from continuing operations - -





Notes 2007 2006 $’000 $’000

Current assets

Receivables - -

Total current assets - -

Non-current assets

Receivables - -

Total non-current assets - -

Total assets - -

Current liabilities

Payables - -

Provisions - -

Total current liabilities - -


Provisions - -

Total non-current liabilities - -

Total liabilities - -

Net assets - -

Equity

Accumulated funds 3 - -

Total equity - -




STATEMENT OF RECOGNISED INCOME AND ExPENSEFOR THE YEAR ENDED 30 JUNE 2007

2007 2006 $’000 $’000

Gain/(loss) on property revaluation - -

Net increases/(decreases) in equity - -

Net revenue and expense recognised directly in equity - -

Surplus/(deficit) for the year - -

Total revenue and expense recognised for the year - -

The above statement of recognised income and expenses is to be read in conjunction with the attached notes.



CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2007

2007 2006 $’000 $’000


Receipts from customers - -

Payment to suppliers and employees - -

Net cash flows from operating activities - -


Payments for property, plant and equipment - -

Net cash flows from investing activities - -


Investment - -

Contributions paid/received - -

Net cash flows from financing activities - -

Net increase/(decrease) in cash held - -

Cash at the start of the financial year - -

Cash at the end of the financial year - -






Sydney Harbour Foreshore Authority Casual Staff Division (the Division) is a Division of the Government Service, established pursuant to Part 3 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at 66 Harrington Street, The Rocks, New South Wales.

The Division’s sole objective is to provide casual personnel services to Sydney Harbour Foreshore Authority (Foreshore Authority).

This financial report for the year ended 30 June 2007 was authorised for issue by the Foreshore Authority’s Board on 15 October 2007.



The financial report is a general-purpose financial report and is prepared on an accrual basis in accordance with Australian Accounting Standards which include Australian equivalent to International Financial Reporting Standards (AEIFRS), other authoritative pronouncements of the Australian Accounting Standards Board (AASB), the Interpretation, the requirements of the Public Finance and Audit Act 1983 and Financial Reporting Directions issued by the Treasurer.

Set out below is a summary of the significant accounting policies adopted by the Division.


(b) Significant accounting judgements, estimates and assumptions






(c) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised.

(d) Receivables

Receivables are recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred.

Receivables are recognised initially at fair value, usually based on transaction cost or face value.

Receivables are subject to annual review for impairment. An allowance for impairment is established when there is objective evidence that the Division will not be able to collect all amounts due. The amount of the impairment loss is recognised in the income statement.

(e) Payables

Payables represent liabilities for goods and services provided to the Division and other amounts. Payables include accrued wages, salaries, and related on-costs (such as payroll tax, fringe benefits tax and workers compensation insurance) where there is certainty as to the amount and timing of settlement.

Payables are recognised at fair value, when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted.




(f) Employee benefit provisions and expenses

No provisions for annual leave, long service leave and sick leave are provided to casual employees in accordance with the terms of employment.

The outstanding amounts of payroll tax, workers compensation insurance premiums, superannuation and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.

(g) New Australian accounting standards issues

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period. The Division did not early adopt any of these accounting standards and interpretations that are not yet effective:


•AASBInterpretation10Interim Financial Reporting and Impairment (1 November 2006)








It is considered that the impact of these new standards and interpretations in future periods will have no material impact on the financial statements of the Division.

17 March 2006 2007 to 30 June 2006 $’000 $’000

Note 3 – Accumulated funds

Balance at the beginning of financial year - -

Surplus for the year - -

Balance at the end of financial year - -



Section A – New FOI applications

How many FOI applications were received, discontinued or completed?

Number of FOI applications

Personal Other Total

2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

A1 New 0 0 17 9 17 9

A2 Brought forward 0 0 0 0 0 0

A3 Total to be processed 0 0 17 9 17 9

A4 Completed 0 0 15 9 15 9

A5 Discontinued 0 0 2 0 2 0

A6 Total processed 0 0 17 9 17 9

A7 Unfinished (carried forward) 0 0 0 0 0 0

Section C – Completed applications

What happened to completed FOI applications?

Number of completed FOI applications


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

C1 Granted or otherwise available in full 0 0 11 3 11 3

C2 Granted or otherwise available in part 0 0 1 4 1 4

C3 Refused 0 0 2 1 2 1

C4 No documents held 0 0 1 1 1 1

C5 Total completed 0 0 15 9 15 9

Section B – Discontinued applications

Why were FOI applications discontinued?

Number of discontinued FOI applications


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

B1 Request transferred out to another agency (s.20) 0 0 0 0 0 0

B2 Applicant withdrew request 0 0 0 0 0 0

B3 Applicant failed to pay advance deposit (s.22) 0 0 2 0 2 0

B4 Applicant failed to amend a request that would have been an unreasonable diversion of resources to complete (s.25(1)(a1))

0 0 0 0 0 0

B5 Total discontinued 0 0 2 0 2 0

AppendixFreedom of information

The following tables show details of freedom of information (FOI) requests received by the Foreshore Authority.


Section D – Applications granted or otherwise available in full

How were the documents made available to the applicant?

Number of FOI applications (granted or otherwise available in full)


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

All documents requested were:

D1 Provided to the applicant 0 0 9 2 9 2

D2 Provided to the applicant’s medical practitioner 0 0 0 0 0 0

D3 Available for inspection 0 0 1 0 1 0

D4 Available to purchase 0 0 0 0 0 0

D5 Library material 0 0 0 0 0 0

D6 Subject to deferred access 0 0 0 0 0 0

D7 Available by a combination of any of the reasons listed in D1-D6 above 0 0 1 1 1 1

D8 Total granted or otherwise available in full 0 0 11 3 11 3

Section E – Applications granted or otherwise available in part

How were the documents made available to the applicant?

Number of FOI applications (granted or otherwise available in part)


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

Documents made available were:

E1 Provided to the applicant 0 0 1 4 1 4

E2 Provided to the applicant’s medical practitioner 0 0 0 0 0 0

E3 Available for inspection 0 0 0 0 0 0

E4 Available to purchase 0 0 0 0 0 0

E5 Library material 0 0 0 0 0 0

E6 Subject to deferred access 0 0 0 0 0 0

E7 Available by a combination of any of the reasons listed in E1-E6 above 0 0 0 0 0 0

E8 Total granted or otherwise available in part 0 0 1 4 1 4

Section F – Refused FOI applications

Why was access to the documents refused?

Number of refused FOI applications


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

F1 Exempt 0 0 2 1 2 1

F2 Deemed refused 0 0 0 0 0 0

F3 Total refused 0 0 2 1 2 1


Section G – Exempt documents

Why were the documents classified as exempt? (identify one reason only)

Number of FOI applications (refused or access granted or otherwise available in part only)


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

Restricted documents:

G1 Cabinet documents (Clause 1) 0 0 0 0 0 0

G2 Executive Council documents (Clause 2) 0 0 0 0 0 0

G3 Documents affecting law enforcement and public safety (Clause 4) 0 0 0 0 0 0

G4 Documents affecting counter terrorism measures (Clause 4A) 0 0 0 0 0 0

Documents requiring consultation:

G5 Documents affecting intergovernmental relations (Clause 5) 0 0 0 0 0 0

G6 Documents affecting personal affairs (Clause 6) 0 0 1 0 1 0

G7 Documents affecting business affairs (Clause 7) 0 0 0 5 0 5

G8 Documents affecting the conduct of research (Clause 8) 0 0 0 0 0 0

Documents otherwise exempt:

G9 Schedule 2 exempt agency 0 0 0 0 0 0

G10 Documents containing information confidential to Olympic Committees (Clause 22)

0 0 0 0 0 0

G11 Documents relating to threatened species, Aboriginal objects or Aboriginal places (Clause 23)

0 0 0 0 0 0

G12 Documents relating to threatened species conservation (Clause 24) 0 0 0 0 0 0

G13 Plans of management containing information of Aboriginal significance (Clause 25) 0 0 0 0 0 0

G14 Private documents in public library collections (Clause 19) 0 0 0 0 0 0

G15 Documents relating to judicial functions (Clause 11) 0 0 0 0 0 0

G16 Documents subject to contempt (Clause 17) 0 0 0 0 0 0

G17 Documents arising out of companies and securities legislation (Clause 18) 0 0 0 0 0 0

G18 Exempt documents under interstate FOI legislation (Clause 21) 0 0 0 0 0 0

G19 Documents subject to legal professional privilege (Clause 10) 0 0 1 0 1 0

G20 Documents containing confidential material (Clause 13) 0 0 1 0 1 0

G21 Documents subject to secrecy provisions (Clause 12) 0 0 0 0 0 0


Why were the documents classified as exempt? (identify one reason only)

Number of FOI applications (refused or access granted or otherwise available in part only)


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

G24 Documents concerning operations of agencies (Clause 16) 0 0 0 0 0 0

G25 Internal working documents (Clause 14) 0 0 0 0 0 0

G26 Other exemptions (e.g. clauses 20, 22A and 26) 0 0 0 0 0 0

G27 Total applications including exempt documents 0 0 3 5 3 5

Section H – Ministerial Certificates (s.59)

How many Ministerial Certificates were issued?Number of Ministerial Certificates

2005/06 2006/07

H1 Ministerial Certificates issued 0 0

Section I – Formal consultations

How many formal consultations were conducted?Number

2005/06 2006/07

I1 Number of applications requiring formal consultation 5 2

I2 Number of persons formally consulted 7 3

Section K – Notation of personal records

How many applications for notation of personal records were made (s.46)?Number of applications for notation

2005/06 2006/07

K1 Applications for notation 0 0

Section J – Amendment of personal records

How many applications for amendment of personal records were agreed or refused?

Number of applications for amendment of personal records

2005/06 2006/07

J1 Agreed in full 0 0

J2 Agreed in part 0 0

J3 Refused 0 0

J4 Total 0 0


Section N – Fee refunds

How many fee refunds were granted as a result of significant correction of personal records?Number of refunds

2005/06 2006/07

N1 Number of fee refunds granted as a result of significant correction of personal records 0 0

Section M – Fee discounts

How many fee waivers or discounts were allowed and why?

Number of FOI applications (where fees were waived or discounted)


2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

M1 Processing fees waived in full 0 0 0 0 0 0

M2 Public interest discounts 0 0 0 0 0 0

M3 Financial hardship discounts – pensioner or child 0 0 0 0 0 0

M4 Financial hardship discounts – non-profit organisation 0 0 0 0 0 0

M5 Total 0 0 0 0 0 0

Section O – Days taken to complete request

How long did it take to process completed applications? (Note: calendar days)



2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

O1 0-21 days – statutory determination period 0 0 10 6 10 6

O2 22-35 days – extended statutory determination period for consultation or retrieval of archived records (s.59B)

0 0 5 3 5 3

O3 Over 21 days – deemed refusal where no extended determination period applies 0 0 0 0 0 0

O4 Over 35 days – deemed refusal where extended determination period applies 0 0 0 0 0 0

O5 Total 0 0 15 9 15 9

Section L – Fees and costs

What fees were assessed and received for FOI applications processed (excluding applications transferred out)?

Assessed costs Fees received

2005/06 2006/07 2005/06 2006/07

L1 All completed applications $2,367 $500 $1,920 $500


Section P – Processing time: hours

How long did it take to process completed applications?



2005/06 2006/07 2005/06 2006/07 2005/06 2006/07

P1 0-10 hours 0 0 14 7 14 7

P2 11-20 hours 0 0 0 1 0 1

P3 21-40 hours 0 0 1 1 1 1

P4 Over 40 hours 0 0 0 0 0 0

P5 Total 0 0 15 9 15 9

Section Q – Number of reviews

How many reviews were finalised? Number of completed reviews

2005/06 2006/07

Q1 Internal reviews 1 2

Q2 Ombudsman reviews 0 1

Q3 ADT reviews 0 0

Section R – Results of internal reviews 2006/07

Grounds on which the internal review was requested

Number of internal reviews


Original agency

decision

Upheld

Original agency

decision

Varied

Original agency

decision

Upheld

Original agency

decision

Varied

Original agency

decision

Upheld

Original agency

decision

Varied

R1 Access refused 0 0 0 2 0 2

R2 Access deferred 0 0 0 0 0 0

R3 Exempt matter deleted from documents 0 0 0 0 0 0

R4 Unreasonable charges 0 0 0 0 0 0

R5 Failure to consult with third parties 0 0 0 0 0 0

R6 Third parties views disregarded 0 0 0 0 0 0

R7 Amendment of personal records refused 0 0 0 0 0 0

R8 Total 0 0 0 2 0 2


Payment of accounts

The following table summarises the Foreshore Authority’s account payment performance during 2006/07. In total, the Authority paid 95 per cent of accounts on time, meeting its target for the year.

Description Quarter ended 30/09/2006

Quarter ended 31/12/2006

Quarter ended 31/03/2007

Quarter ended 30/06/2007 Total 2006/07

Percentage of accounts paid on time % 96 95 93 95 95

Total dollar of accounts paid on time $’000 48,095 55,911 56,208 48,365 208,579

Total dollar of accounts paid $’000 50,194 58,662 60,135 51,137 220,128


Determinations under the NSW Heritage Act 1977

The following tables summarise the determinations made by the Foreshore Authority under delegation from the Heritage Council of NSW.

This information is provided in accordance with general condition 11 of the delegations under section 169(3) of the NSW Heritage Act.

Section 60 applications

Application number Address Summary Time (calendar days)

s.60/06/15 16 individual George Street items Installation of fall arrest systems 7

s.60/06/16 155 George Street, The Rocks Interpretive mural to south facade 7

s.60/06/17 155 George Street, The Rocks Modification of signage 28

s.60/06/18 12-20 Argyle Street, The Rocks Fitout basement level 4

s.60/06/19 151-153 Sussex Street, The Rocks Fitout 1

s.60/06/20 96 Cumberland Street, The Rocks New bar on roof level, new toilets and minor additions to ground floor. Reconstruction of parapet 9

s.60/06/21 4-6 Kendall Lane, The Rocks Installation of air conditioning 9

s.60/06/22 68-84 George Street, The Rocks Replacement of light fittings and modification to fitout of Shop 4 10

s.60/06/23 102 George Street, The Rocks Fitout with new flooring, signage, painting, lights and fans 15

s.60/06/24 22-26 Playfair Street, The Rocks Fitout of shops 3 and 4 18

s.60/06/25 99 George Street, The Rocks Commercial signage 6

s.60/06/26 1-5 Hickson Road, The Rocks Fitout and maintenance ground floor and level 3 of bays 3 and 4 25

s.60/07/01 33 Playfair Street, The Rocks Fitout level 1 10

s.60/07/02 12-20 Argyle Street, The Rocks Fitout level 2 12

s.60/07/03 12-20 Argyle Street and 33 Playfair Street, The Rocks Fitout level 3 Argyle and level 2 Cleland Bond 19

s.60/07/04 37 George Street, The Rocks Signage and interior decoration 31

s.60/07/05 156-180 Cumberland Street, The Rocks

Internal fitout and signage, including removal of non-significant fabric 22

s.60/07/06 143-145 Sussex Street, The Rocks Internal fitout and use as day spa 15

s.60/07/07 1-5 Hickson Road, The Rocks Temporary partition walls and loose furniture 8

s.60/07/08 12-20 Argyle Street, The Rocks Installation of closed circuit television 1

s.60/07/09 33 Playfair Street, The Rocks Installation of two satellite systems on roof top 10

s.60/07/10 13-17 Playfair Street, The Rocks Reinstatement of window to western elevation, ground floor 9

s.60/07/11 86-88 George Street, The Rocks Replacement of webcams and removal of redundant enclosures 3

s.60/07/12 25-27 George Street, The Rocks Installation of two fire hose reels 7

s.60/07/13 Remains undetermined

s.60/07/14 77.5 George Street, The Rocks Retail fitout and signage 2

s.65a/07/15 1-5 Hickson Road, The Rocks Modification to s.60/07/07 1

s.60/07/16 12-20 Argyle Street, The Rocks Conservation of hydraulic whip 4


Section 57(2) exemptions

Application number Address Summary and standard exemption number Time

(calendar days)

s.57/06/12 10-22 Penrhyn House, The Rocks Erection of signage at Shop 14-15 (standard exemption 7) 5

s.57/06/13 Gloucester Street, The Rocks Excavation between Essex Street and Grosvenor Street (standard exemption 4) 1

s.57/06/14 121-125 George Street, The Rocks Repairs to white ant damaged timbers (standard exemption 2) 4

s.57/06/15 Campbells Cove, The Rocks Ground stabilisation (standard exemption 4) 1

s.57/06/16 96 Cumberland Street, The Rocks Maintenance and repair, removal and replacement of carpet, painting and general repairs (standard exemptions 1, 2 and 3) 2

s.57/06/17 87-89 George Street, The Rocks Painting with change in colour (standard exemption 7) 1

s.57/06/18 17 Little Pier Street, Darling Harbour Additions and alterations to non-significant structure within the cartilage of the State-listed Pump House (standard exemption 8) 1

s.57/06/19 102-104 George Street, The Rocks Painting of previously painted internal finishes to match existing (standard exemption 8) 1

s.57/06/20 102-104 George Street, The Rocks Maintenance and repairs to stone brick and plaster work and paint stripping (standard exemptions 1 and 7) 1

s.57/06/21 Sydney Cove railings, Circular Quay Minor maintenance to façade and repairs to pigeon deterrents (standard exemption 7) 1

s.57/06/22 12-26 Playfair Street, The Rocks Installation of glass to non-significant balustrade (standard exemption 7) 4

s.57/06/23 Sydney Cove railings, Circular Quay Excavation and extension of a concrete pipe (standard exemption 7) 1

s.57/06/24 88 George Street, The Rocks Modification of non-significant fabric to level 2 (standard exemption 8) 1

s.57/06/25 155 George Street, The Rocks Refurbishment of retail stores within contemporary building (standard exemption 8) 1

s.57/06/26 80 George Street, The Rocks Installation of audio and visual units in reversible fashion (standard exemption 7) 2

s.57/06/27 121-127 Harrington Street, The Rocks Painting non-original fabric (standard exemption 3) 1

s.57/06/28 Withdrawn and determined as a s.140

s.57/06/29 12-20 Argyle Street, The Rocks Installation of additional pipe work to existing plant (standard exemption 7) 6

s.57/06/30 10 Hickson Road, The Rocks Replacement of existing non-original ducting (standard exemption 7) 4

s.57/06/31 4-8 Kendall Lane, The Rocks Reinstatement of casement stay to window (standard exemption 5) 1

s.57/06/32 Circular Quay Railway Station Modifications to Shop C2 (standard exemption 8) 1

s.57/06/33 33 Playfair Street, The Rocks Painting to match existing scheme (standard exemption 3) 3

s.57/06/34 117 Harrington Street, The Rocks Installation of partitions, carpet and loose furniture (standard exemption 7) 1

s.57/06/35 117 Harrington Street, The Rocks Change of use and commercial fitout levels 2, 3 and 4 (standard exemptions 7 and 9) 1

s.57/06/36 155 George Street, The Rocks Installation of air conditioner to 1980’s non-significant space / fabric (standard exemption 8) 3

s.57/07/01 13-17 Playfair Street, The Rocks Installation of vent to non-original fabric (standard exemption 7) 1

s.57/07/02 Not used

s.57/07/03 87-89 George Street, The Rocks Installation of signage Jack Mundy Place (standard exemption 7) 1

s.57/07/04 1-3 Hickson Road, The Rocks Installation of electrical distribution board within Bay 4 (standard exemption 7) 4

s.57/07/05 45-47 Argyle Street, The Rocks Removal and replacement of display unit and compressor (standard exemption 7) 2


Application number Address Summary and standard exemption number Time (calendar

days)

s.57/07/06 1-3 Hickson Road, The Rocks Refurbishment of existing toilets to Bay 4 (standard exemptions 4 and 7) 8

s.57/07/07 45-47 Argyle Street, The Rocks Installation of dishwasher without alteration to plumbing (standard exemption 8) 2

s.57/07/08 229 George Street, The Rocks Extension of gaming room without impact to significant fabric (standard exemption 7) 1

s.57/07/09 100 George Street, The Rocks Core holes for investigation (standard exemption 4) 12

s.57/07/10 1-3 Hickson Road, The Rocks Installation of carpet, loose run data cables and door hardware (standard exemption 7) 1

s.57/07/11 155 George Street, The Rocks Repainting in existing scheme (standard exemption 3) 1

s.57/07/12 102 George Street, The Rocks Installation of extractor fan to server room (standard exemption 7) 2

s.57/07/13 123-125 George Street, The Rocks Maintenance and repair associated with termite damage (standard exemption 2) 1

s.57/07/14 100 George Street, The Rocks Repairs to prismatic pavement lights (standard exemption 7) 5

s.57/07/15 100 George Street, The Rocks Excavation for investigation (standard exemption 4) 3

s.57/07/16 31 Playfair Street, The Rocks Removal and replacement of non-original fabric, including paint and floor boards. Introduction of sub-floor ventilation (standard exemption 7) 1

s.57/07/17 86-88 George Street, The Rocks Temporary mobile phone base station to rooftop (standard exemption 7) 2

s.57/07/18 Withdrawn–works fall under standard exemption 2, not requiring notification

s.57/07/19 123-125 George Street, The Rocks Replacement of non-original shop fittings (standard exemptions 8 and 5) 1

s.57/07/20 123-125 George Street, The Rocks Removal of large tree, involving excavation (standard exemption 4) 1

s.57/07/21 45-47 Argyle Street, The Rocks Installation of ice machine to existing power and plumbing (standard exemption 8) 3

s.57/07/22 Circular Quay Railway Station Refurbishment of Shop W2a as per s.60 approved master plan (standard exemption 7) 8

s.57/07/23 Circular Quay Railway Station Refurbishment of Shop E10 as per s.60 approved master plan (standard exemption 7) 2

s.57/07/24 29a-31a Playfair Street, The Rocks Installation of security grille and alarm to non-original fabric (standard exemption 7) 2

s.57/07/25 100 George Street, The Rocks Maintenance to timber work associated with termite damage (standard exemption 7) 1

Section 57(2) exemptions – continued


Index

Aboriginal culture 17, 20, 24, 48

Aims and objectives 1

Annual report 12, inside back cover

Appendix 112

Awards 3, 6, 7, 10, 12, 13, 28, 44, 47

Employee awards 46

Ballast Point 19

Barangaroo 6, 7, 18, 19, 28, 31, 42, 43

Callan Park 19, 39

CEO 6, 7, 28, 36-43, 49, 53, 87, 103

Chairman 6, 7, 36-39, 53, 87, 103

Charter 1

Chinese Garden of Friendship 12, 20, 21, 26, 35, 44, 47, 48

Closed circuit television 17

Code of conduct 42, 48, 50

Community services 14-21

Conservation Management Plans 34, 35

Consultants 43

Contact information Inside back cover

Corporate governance 6, 36-43

Audit and Risk Management Committee 38

Board 36-40

Corporate Governance Committee 36

Credit cards 43

Customer response 2, 11, 42

Darling Walk 14, 18, 19

Development applications 13

Disability management 21, 47, 48

Disaster recovery 13, 35

East Darling Harbour see Barangaroo

Electronic service delivery 10, 11, 16, 32, 44, 48 See also Information technology

Energy 2, 30

Environment 28-32

Equal employment opportunity 48

Ethnic Affairs Priority Statement 48

Events 10, 14, 22-27

Executive team 6, 7, 40-41, 49

Filming 14

Financial statements 51-111

Fleet 32

Fraud and corruption prevention 42

Freedom of information 43, 112-117

Fundraising 50


Guarantee of service 42

Healthy Lifestyle Program 47

Heritage 10, 12, 14, 16, 17, 19, 28, 33-35, 119-121

Human resources 44-50

Employee numbers 48-49

Industrial relations 49

Information technology 13, 35 See also Electronic service delivery

Innovation 6, 44

Key performance indicator reporting 2

Knowledge management 42

Legislative change 43

Map 4

Occupational health and safety 46

Organisation chart 40

Overseas travel 42

Payment of accounts 118

People movements 26 See also Visitation figures

Performance highlights 3

Privacy management plan 42

Procurement 13

Property 1

Publicity 14

Risk management 38, 43

Social investment 20-21

Sponsorships 21, 31

Sustainability 28-35

Sydney Convention and Exhibition Centre 7, 8, 10, 13, 20, 26,

28, 31

Sydney Visitor Centres 9, 10-11, 12, 21, 30, 31, 47, 48

Tenants 14

The Rocks Discovery Museum 10, 15, 20, 21, 44, 48

The Rocks Market 1, 17, 22

Tourism 8, 10-12, 42

Tours

Sydney Learning Adventures 10, 20, 21, 31, 47, 48

Technical Insight Tour 10, 20

The Rocks Pub Tour 10, 17

Training 47

Vision 1

Visitation figures 2, 11, 22-26 See also People movements

Women in the workforce 49


Contact us

Sydney Harbour Foreshore Authority Foreshore House, 66 Harrington Street, THE RoCKS NSW 2000 Po Box N408, GRoSVENoR PLACE NSW 1220

Telephone: +61 2 9240 8500 or 1300 655 995 Fax: +61 2 9240 8899 Email: [email protected] Web: www.shfa.nsw.gov.au

Reception open 8am to 6pm, Monday to Friday

ABN: 51 437 725 177

Sydney Visitor Centres

The Rocks Corner Argyle and Playfair streets, THE RoCKS NSW 2000

Darling Harbour 33 Wheat Road, DARLING HARBouR NSW 2000 (between Darling Walk and IMAX)

Telephone: 1800 067 676 (freecall within Australia) Email: [email protected] Web: www.sydneyvisitorcentre.com

Sydney Visitor Centres open 9.30am to 5.30pm dailyClosed on Christmas Day and Good Friday and close at 4pm on New Year’s Eve.

Websites

www.shfa.nsw.gov.au

www.darlingharbour.com

www.therocks.com

www.therocksmarket.com

www.therockspubtour.com

www.sydneyforevents.com

www.sydneylearningadventures.com.au

www.sydneyvisitorpass.com

www.chinesegarden.com.au

www.sydneyharbourweek.com.au

Sustainable annual reporting

To enhance the sustainability of the 2006/07 Annual Report, Sydney Harbour Foreshore Authority has produced it in an electronic format, available at www.shfa.nsw.gov.au and on CD-RoM.

The report was written and designed in-house at Sydney Harbour Foreshore Authority.

The total cost for external production and printing was $7,159.

The paper used to print this report is Tudor RP.

Tudor RP

• ISo 14001

• Australian made

• pH neutral and acid free

• 100% recycled.

Images: Thank you to all our employees who were featured in the photos throughout this report.