ANNUAL REPORT...Department of Transport (DoT) Annual Report 2009-10 Our purpose To provide safe, accessible, sustainable and efficient transport services and systems which promote

ANNUAL REPORT2009 / 2010

Department of Transport (DoT) Annual Report 2009-10Our purposeTo provide safe, accessible, sustainable and efficient transport services and systems which promote economic prosperity and enhance the lifestyles of all Western Australians.

Our visionTo be recognised for excellence in customer service in providing world class transport services and solutions.

Our servicesThe Department benefits the community in many ways through planning, development and regulation of transport operations and systems; licensing services; strategic transport policy and integrated transport planning.

Our goalsTo provide effective and efficient transport systems and services to the economy of Western Australia, and assist the well-being of all Western Australians.

We will do this by:

• Focussing on strategic transport policy and planning, regulation and operational transport functions across the range of public and commercial transport systems that service Western Australia;

• Connecting people with goods and services through an intricate system of roads, railways, airports, ports and waterways and educating and regulating to keep them safe within those networks; and

• Planning, co-ordinating and prioritising the transport related infrastructure that allows our economy to grow.

Our outcomesTransport system and services development, planning, operation and regulation.

Motor vehicle and driver licensing services.

Strategic transport policy.

Integrated transport planning.

Our valuesTeamwork

We work together in the spirit of cooperation.

Respect

We welcome and accept differences and commonalities.

Passion

We embrace work with enthusiasm and energy.

Learning and innovation

We grow and seek better solutions.

Commitment and pride

We strive for excellence and do our best.

Honesty and integrity

We act ethically and fairly.

Leadership

We inspire and guide others.

Understanding

We listen and respond appropriately.

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ContentsOverview of agency 2Statement of compliance with the Financial Management Act 2006 2Director General’s foreword 2Executive summary 4Financial summary 6Operational structure 8 Organisational chart 10 Legislation priorities 12Performance management framework 14Goal 1: Outcomes based service delivery 16Goal 2: State Building – Major Projects 32Additional significant issues and trends 35

Government policy requirements 36 Substantive equality 36 Policy statement 37 Occupational safety and health, injury management performance 38 Workers’ compensation compliance 38 Workplace behaviour and culture 38 Scholarship program 39 Succession planning 39 Developing leadership capability 39 Personal and professional development 39 Employee assistance 39 Peer support program 39 Employment and industrial relations 40 Office of the Auditor General audits 40 Internal audit reviews 40 Audit and risk management committee 40 Risk management 41 Freedom of Information 41

Other legal requirements 42 Advertising 42 Disability access and inclusion plan outcomes 43 Compliance with public sector standards and ethical codes 46 Better recordkeeping 46 Information systems 48 Reconciliation action plan 48

Governance disclosures 49

Ministerial directives 49

Financial disclosures 50 Pricing policies of services provided 50 Major capital projects 50

Financial statements 51 Auditor General independent audit opinion 52 Certification of financial statements 53 Financial statements 54

Key performance indicators 93 Key performance indicators 94

Office locations 115

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I will also ensure that transport issues are high on the State Government’s agenda and that we have strong support and investment from the private sector.

The first step towards achieving these goals has seen a revamp of the DoT and the creation of two new divisions - Policy, Planning and Investment, and Transport Services.

The Policy, Planning and Investment division provides strategic transport policy and integrated planning oversight across the Transport Portfolio, working with local, State and Commonwealth governments.

The Transport Services division focuses largely on the operational side of the business and among the major challenges ahead is the licensing reform agenda.

Licensing reform is critical to our advancement. The aim is to transform the Licensing business unit from an inwardly focused, high volume, transaction-based business that registers drivers and vehicles into one that is focused on ensuring Western Australia has the world’s best drivers and the world’s safest vehicles.

The current business model is simply unsustainable and has no capacity for growth.

The key to transforming driver and vehicle services is to engage more effectively with the private sector to ensure the safety of our drivers and vehicles.

Some of the key actions the DoT will address in the short to medium term are:

• Review relevant legislation to reflect the new portfolio structure and limit or remove barriers to transport efficiency.

• Implement governance arrangements that facilitate strong relationships within the Transport Portfolio and across Government.

• Build capacity in key areas such as strategic transport planning, transport policy development, capital investment and strategic asset management.

• Develop a State integrated transport strategy to address Western Australia’s future transport needs.

At a workforce level, early in 2010-11 the transfer of corporate services staff from the Department of Planning will be completed.

This is significant for several reasons, but primarily it allows all employees to work together under a single management.

A significant focus for the DoT over the next 12 months will be optimising staff retention and attraction, fostering leadership, and developing and encouraging strong and effective workplace culture through implementation of best human resource practice across the DoT.

The management team will provide holistic policies and procedures and introduce programs to lead, develop and support our staff. For example, a new occupational health, safety and wellbeing program will be introduced in the near future.

As you read through this document you will realise 2009-10 was a good year for the DoT but there remains much work to be done.

The DoT remains steadfastly committed to improving its service delivery to the Western Australian community, whether it be in the area of private customers such as licensing and marine safety or servicing large business in the creation of new roads and other transport linkages.

There are many challenges facing transport planning, policy and infrastructure provision over the coming years.

I am confident that with the support of my executive team, DoT employees and the Transport Portfolio partners we can give Western Australia an integrated transport system that will allow us to efficiently and effectively move people and goods around the State, and help all Western Australians capitalise on our vast wealth of natural resources into and beyond the 21st century.

Reece WaldockDIRECTOR GENERAL – TRANSPORT

Overview of agency

Statement of compliance with the Financial Management Act 2006 FOR THE YEAR ENDED 30 JUNE 2010

To the Minister

Hon Simon O’Brien MLCMinister for Transport

In accordance with Section 61 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament the Department of Transport’s annual report for the financial year ended 30 June 2010.

The report has been prepared in accordance with the provisions of the Financial Management Act 2006 and fulfils the Department of Transport’s reporting obligations under the Public Sector Management Act 1994, the Disability Services Act 1993 and the Electoral Act 1907.

Reece WaldockDIRECTOR GENERAL – TRANSPORT

Director General’s forewordThe new Department of Transport (DoT) is just 12 months old and already we have delivered some key projects.

Among these are:

• The opening of a new $ 1.7million vehicle examination centre in Osborne Park.

• A comprehensive review of intrastate air services.

• The completion a $1.2 million upgrade of car and boat trailer parking facilities at Woodman Point.

• Major landscaping upgrades at Hillarys Boat Harbour plus the creation of an extra 44 boat pens.

• The launch of the Junior Crew Program, a major marine safety initiative targeted at primary school students.

I was appointed by the Minister for Transport in April 2010 to the new role of Director General – Transport. My role is to oversee the operations of the DoT, along with the Public Transport Authority (PTA) and Main Roads WA (MRWA).

The appointment heralded a new direction for transport in Western Australia. The State Government created this new Transport Portfolio to enhance the coordination of the State’s transport system and harness the synergies within the three Transport Portfolio partners.

Our State faces massive challenges in the area of transport. Over the past decade train, bus and ferry public transport boardings have grown at almost three times the rate of population growth, and the amount of freight being moved is expected to double by 2030.

This level of growth places enormous pressure on the State Government to provide more freight and passenger linkages while being mindful of the potential downsides of urban congestion and pollution.

My response is to develop an integrated, efficient and sustainable transport system and improved efficiency and effectiveness in transport service delivery.

I am confident that in the months and years ahead that the DoT, along with its portfolio partners (PTA and MRWA), will address these challenges.

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The works entail:

• $1.5 million to upgrade a boat ramp at Tantibiddi, near Exmouth.

• $2.3 million for additional new floating pens in Exmouth Marina.

• $3 million to construct a new boat launching facility in Carnarvon.

The DoT is a major service provider for regional Western Australia with the DoT delivering projects and infrastructure such as boating facilities and funding for regional airports.

The Regional Services business unit represents the DoT in regional Western Australia and is responsible for the delivery of services, compliance programs, the provision of advocacy and coordination.

The unit is comprised of 143 staff across seven regions, operating from a number of “one stop shops”. Regional Services has further expanded its services network following the opening of the Kununurra office in September 2009.

The DoT’s Transport Policy and Systems area has also had a fruitful year. Among its achievements was the completion of the review of intrastate regular passenger air transport services, the commencement of works to remove traces of lead in Esperance and the provision of $1.75 million to improve cycling infrastructure in Perth and regional Western Australia.

The DoT has made some good progress in its first year of operations and the aim is to better this in successive years.

Strong leadership and a realigning of some of the goals and values of the DoT will stand it in good stead to deliver great transport outcomes for Western Australia.

Executive summaryThe Department of Transport’s (DoT) first year of operation has provided as many successes as it has challenges.

This executive summary will detail some of the major achievements and milestones met by the DoT during the 2009-10 financial year.

Licensing services continues to be an important business focus for the DoT.

In the 2009-10 year the Licensing business collected approximately $1.5 billion through fees and charges and processed almost 6,000,000 licensing transactions.

The introduction of a BPAY payment option has given customers greater choice in how and when they pay for a number of licensing charges.

On 1 January 2010 licence stickers and discs no longer had to be applied to vehicles in Western Australia, saving the Government $2 million over four years.

This increasing emphasis on new technologies in Licensing will be a major focus for the DoT in the years ahead as the Dot seeks to streamline service delivery.

The opening of the Osborne Park vehicle examination centre represents a major step forward for Licensing Services in setting new standards in vehicle examinations.

The Osborne Park centre utilises dedicated inspection hoists and other specialty equipment to streamline the examination process while providing added safety for examiners.

In the passenger services area, the DoT released 56 unallocated taxi lease plates.

These will help meet the expected increase in demand that accompanies the State’s economic growth forecast.

A commitment was also given to continue the peak period operating hours for taxis to meet the early morning weekday demand.

Another great result in the area of taxis was a three-pronged approach aimed at assisting eligible people with a disability, particularly those in wheelchairs.

Firstly, the increase in the Taxi User Subsidy Scheme cap on the level of subsidy from $25 to $35 for people using multi-purpose taxis.

Also delivered, was a 12-month extension for the ‘standby taxi’ system to ensure that all wheelchair taxi requests are met in a timely and reliable manner.

A doubling in the night-time lifting incentive from $10 to $20 for multi-purpose taxi operators, providing a wheelchair service between 6pm and 8am, also aimed at improving services for people with disability.

For many Western Australians the waters off our coast also provide business and employment opportunities.

The maritime industry in Western Australia is diverse, multi-faceted and innovative; ever-changing to meet the demands of new markets.

It is a huge industry and its annual value to the State’s economy is in excess of $3.5 billion.

Recreational boating is also massively popular in Western Australia and with more than 13,500 kilometres of coastline, the provision of boating facilities is costly.

A total of $68 million will be spent enhancing Western Australia’s recreational boating facilities over the next four years.

In Broome, $35 million will be invested in building a new boating facility that will provide greater safety for boat users living in and visiting the region.

In addition, $6.8 million has been earmarked for facilities in the State’s Gascoyne region over the next year.

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Operating revenues of $171.28 million were raised in 2009-10. The revenue was derived from a range of services including:

• Boat registrations;

• Small boat harbour fees;

• Motor vehicle and driver licences; and

• Perth parking fees.

The accompanying chart shows the distribution by the main revenue categories.

The DoT managed a diverse asset base totalling $310.85 million in the provision of services.

The accompanying chart shows the distribution by asset class.

The DoT’s equity at 30 June 2010 was $463.75 million, which comprises contributed equity ($421.26 million), reserves ($11.36 million) and accumulated surplus ($31.2 million).

Funding for the operations of the DoT was sourced from revenues from Government of $139.96 million (primarily appropriations $133.77 million) and retained revenues of $171.28 million (as shown above under income by category).

The DoT also administered functions on behalf of the Department of Treasury and Finance and other Government agencies. The administered revenue from these functions totalled $1.482 million in 2009-10.

Financial summaryIn 2009-10, the DoT recorded a net cost of services of $108.84 million. Expenditure on ordinary activities totalled $280.12 million.

The DoT provided a highly diverse range of products and services to its numerous stakeholders, clients and customers, including:

• Transport system planning and regulation;

• Motor vehicle registration and driver licensing;

• Strategic transport policy; and


As the graph illustrates, the major expense categories were:

• Employee expenses (31.2%)

• Supplies and services (25.3%)

• Grants and subsidies (22.6%)

509,343

331,008 61,49943,072

39,4456,821

484,203 • Motor drivers licences

• Motor vehicle registrations

• Plate and transfer infringements

• Recording fees

• Speed and red lightinfringement �nes

• Stamp duty

• Third party motor vehicleinsurance premiums

• Other

6,148

Administered revenues$1.48 billion

144,119

123,191

4,378

• Property and equipment

• Infrastructure

• Intangible assets

• Construction in progress

• Land and buildings

15,14224,021

Assets under management$’000

40,612

63,447

6,6875,117

60,438 • Transport system planningand regulation

• Motor vehicle registrationand driver licensing services

• Strategic transport policy

• Integrated transport planning

• Grants and subsidies

• Other activities103,820

Expenditure by key activities$280.12 million

29,925

1,091

27,918

888

111,458 • User charges and fees

• Sales


• Interest revenues

• Other revenues

Income by category$171.28 million

11,506

2,2092,550

63,447

3,657

87,509 • Employee expenses

• Supplies and services

• Depreciation andamortisation expense

• Accommodation expenses


• Loss on disposal if non-current assets

• Other expenses fromordinary activities109,244

Operating expenses by category$’000

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Operational structureIn April 2009, Premier Colin Barnett announced the restructure of the Department for Planning and Infrastructure (DPI) with the creation of the Department of Planning, Department of Transport and the Department of Regional Development and Lands, all of which took effect on 1 July 2009.

The Department of Transport (DoT) was created to focus on strategic transport planning and policy across the range of public and commercial transport systems that service the State as well as operational transport functions.

On 21 April 2010 the Minister for Transport announced a new structure for the Transport Portfolio, with the Director General - Transport also becoming the CEO for the Public Transport Authority and the Commissioner of Main Roads WA. This will help reinforce the integration of transport activities across the portfolio. The portfolio structure is shown right.

The creation of the new DoT is a clear signal of the State Government’s commitment to improving transport policy development, transport planning and the provision of effective and efficient transport systems and services to the economy of Western Australia, and to the well being of all Western Australians.

The new arrangements ensure a focus on greater integration and collaboration across the Transport Portfolio.

The transport function is integral to business and commerce, and important for social interaction and connecting communities. With more than 1200 employees, and together with its portfolio partners, DoT has the expertise to deliver high quality and integrated transport policy and plans that connect a complex, inter-related economic and social network.

DoT connects people with goods and services through an intricate system of roads, railways, airports, ports and waterways, and educates and regulates to keep people safe within those networks. The DoT plans, co-ordinates and prioritises the transport related infrastructure that allows Western Australia’s economy to grow.

The DoT works closely with other State agencies and various stakeholders across the community. The agency also works in partnership with the Department of Planning, WA Planning Commission, Department of Regional Development and Lands and all other agencies within the Transport Portfolio – the PTA, MRWA, the Office of Road Safety and the eight port authorities.

The DoT’s primary activities are:

• Developing policy - influencing growth and change through policy development.

• Planning - meeting community needs for integrated transport and transport infrastructure through strategic planning.

• Capital investment and strategic asset management – a policy oversight role for all transport assets.

• Regulating - regulating transport and transport infrastructure to meet and exceed legislative requirements.

• Educating - educating the community through good communication and, where necessary, regulation.

• Resourcing - achieving sustainable transport solutions by ensuring the appropriate allocation of resources.

• Partnering - working in partnership with local communities, interest groups, industry, local governments and other Government agencies to deliver transport and transport infrastructure services.

• Coordinating and supporting - supporting the Transport Portfolio partners and coordinating the agencies responsible for transport to ensure the community receives the best service possible.

Minister for Transport

Director General -Transport *

Managing Director -MRWA

Managing Director -PTA

Deputy Director General -Policy, Planning and Investment

Managing Director -Transport Services

Port AuthorityBoards

BroomePort Authority

Port Hedland Port Authority

DampierPort Authority

GeraldtonPort Authority

FremantlePort Authority

BunburyPort Authority

AlbanyPort Authority

EsperancePort Authority

O�ce ofDirector General

Port Authorities

Public Transport AuthorityMain Roads WADepartment of Transport

* Denotes: Commissioner of Main Roads WA Chief Executive O�cer - Public Transport Authority Director General of Department of Transport

• Department of Transport has two main divisions:

• Policy, Planning and Investment: provides a strategic transport policy and integrated planning oversight role across the Transport Portfolio, working with local, State and Commonwealth governments; and

• Transport Services: leads and manages the delivery of a number of specialist transport services, including licensing, coastal infrastructure, passenger services and marine safety and rail safety.

• MRWA continues to act as a statutory authority and focus on the delivery and management of a safe and efficient road network.

• PTA continues to act as a statutory authority and focus on the delivery and management of public transport services.

• Port authorities continue to act as statutory authorities and focus on the effective operation of their port. The Director General – Transport will continue to provide advice to the Minister in relation to strategic port matters and on major projects.

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Thursday 15 July 2010

Director General - TransportReece Waldock

Minister for Transport

O�cer of Director GeneralDirector Richard Barrett (A)

Deputy Director General -Policy, Planning & Investment

Sue McCarrey (A)

Executive Director- Transport Policy

& SystemsJohn Fischer

Executive Director- Integrated

Transport PlanningSteve Beyer (A)

Executive Director- Major Transport

ProjectsGary Player (A)

Executive Director- Investment &

Finance CoordinationPeter King (A)

Executive Director- People &

OrganisationalDevelopment

Peter Mahler (A)

Executive Director- Corporate Support

Bill Ielati (A)

General Manager- Driver & Vehicle

ServicesIqbal Samnakay (A)

General Manager- Regional ServicesPeter Ollerenshaw

General Manager- Coastal

InfrastructureSteve Jenkins (A)

General Manager- Marine Safety

David Harrod

General Manager- O�ce of Rail Safety

Rob Burrows

General Manager- Passenger Services

Peter Ryan

Managing Director -Transport ServicesAlastair Bryant (A)

• Strategic Transport Policy• Freight Policy• Maritime & Aviation Policy• Sustainable & Active Transport Policy• Freight & Logistics Council

• Strategic Network Development• People Mobility Network Development• Travel Demand Management

• Major Transport Project Development• Lead Agency Framework• Oakajee Infrastructure Project• Grain Network Project• Esperance Clean Up Project

• Chief Financial O�cer• Portfolio Strategic Investment Coordination• Financial Services• Budget Planning• Review & Audit

• Human Resources• Organisational Development• Occupational Health & Safety

• Portfolio Coordination• Communications• Ministerial & Government Services• Strategic & Business Planning

• Regional Services (as per current Business Unit)

• Licensing Services (as per current Business Unit)

• Information Technology Support

• Coastal Infrastructure (as per current Business Unit)

• Marine Safety (as per current Business Unit)

• Rail Safety (as per current Business Unit)

• Passenger Services (as per current Business Unit)

• Legal & Legislative Services• Accommodation Services• Procurement Services• Information Management• Strategic Information Technology Planning

Func

tion

Org

anis

atio

nal S

truc

ture

Departmental Services

(A) Denotes: Acting

Department of Transport - New Organisational Structure The Director General – Transport is responsible and accountable for governance within the Transport Portfolio, excluding the eight independent port authorities.

A Transport Governance Council has been established to ensure effective integration and coordination across Transport Portfolio agencies of the State’s transport regulatory functions, policy development, integrated transport planning and investment.

The DoT itself has a corporate executive committee, which is made u of the Director General, Deputy Director General Policy, Planning and Investment, Managing Director Transport Services, Executive Director Investment and Finance Coordination, Executive Director People and Organisational Development, Executive Director Corporate Support and the Director, Office of the Director General. The committee’s role is to:

• Create a unified organisation and culture.

• Provide clear advice to the Director General and direction and leadership for corporate governance of DoT.

• Develop and coordinate strategic directions and priorities for DoT.

• Ensure DoT is appropriately funded and with internal allocations that reflect direction, priorities and realities.

• Improve DoT’s management by implementing the Australian Business Excellence Framework.

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Performance management frameworkThe split of the Department for Planning and Infrastructure into three new departments, including DoT, was undertaken at a time when there was uncertainty about the roles of the new departments. This resulted in publication in the budget papers of a single Government goal with two associated departmental outcomes and two services for the DoT as represented below.

Government goals Departmental desired outcomes Departmental services

Outcome based service delivery

Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

An accessible and safe transport system.

Transport system planning and regulation.

Road users that meet established vehicle standards and driver competencies.


Integrated transport policy and planning, which was the cornerstone for the creation of the new DoT, was not represented in this structure. This function was left with integrated land planning and allocated to the new Department of Planning.

Following the publication of the budget papers, further discussions were held to clarify the split of various roles across the departments and from 1 July 2009, integrated transport policy and planning was allocated to the DoT.

DoT approached the Department of Treasury and Finance and the Office of the Auditor General and sought approval to amend the outcome structure to include integrated transport planning and include some minor amendments to the existing outcomes and services to better reflect the new role for DoT. The submission was successful and both departments were asked to amend their outcome structures.

DoT subsequently added back the Government goal of State Building – Major Projects, with one associated departmental outcome and two additional services relating to strategic transport policy and integrated transport planning.

The approved outcome structure for 2010-11, which has also been used to report performance for 2009-10, is shown below.

Government goals Departmental desired outcomes DDepartmental services

Outcome based service delivery


An accessible and safe transport system.

Transport system and services development, planning, operation and regulation.

Vehicles and road users that meet established vehicle standards and driver competencies.


State building - Major Projects

Building strategic infrastructure that will create jobs and underpin Western Australia’s long-term economic development.

Integrated transport systems that facilitate economic development.

Strategic transport policy.


Legislation prioritiesOn behalf of the Minister for Transport during 2009-10 the Department of Transport administered the following Acts:• Air Navigation Act 1937

• Civil Aviation (Carriers’ Liability) Act 1961

• Damage by Aircraft Act 1964

• Harbours and Jetties Act 1928

• Jetties Act 1926

• Lights (Navigation Protection) Act 1938

• Marine and Harbours Act 1981

• Marine Navigational Aids Act 1973

• Maritime Fees and Charges (Taxing) Act 1999

• Motor Vehicle Drivers Instructors Act 1963

• Owner-Drivers (Contracts and Disputes) Act 2007

• Perth Parking Management Act 1999

• Perth Parking Management (Consequential Provisions) Act 1999

• Perth Parking Management (Taxing) Act 1999

• Pilots’ Limitation of Liability Act 1962

• Pollution of Waters By Oil and Noxious Substances Act 1987

• Port Authorities Act 1999

• Rail Safety Act 1998

• Railway Discontinuance Act 2006

• Railway Discontinuance Act (No.2) 2006

• Road Traffic Act 1974

• Road Traffic (Administration) Act 2008

• Road Traffic Amendment (Dangerous Driving) Act 2004

• Road Traffic (Authorisation to Drive) Act 2008

• Road Traffic (Vehicle Licensing) (Taxing) Act 2001

• Road Traffic (Vehicles) (Taxing) Act 2008

• Sea Carriage of Goods Act 1909

• Shipping and Pilotage Act 1967

• Taxi Act 1994

• Trans-Continental Railway Act 1911

• Transport Co-ordination Act 1966

• Western Australian Marine Act 1982

• Western Australian Marine (Sea

• Dumping) Act 1981

• Wire and Wire Netting Act 1926

Source: Western Australian Government Gazette No. 134, 14 July 2009

Other legislation and regulations affecting the functions and operations of the Department of Transport include:• State Records Act 2000;

• State Records (Consequential Provisions) Act 2000;

• Criminal Code 1913;

• Electronic Transactions Act 2003;

• Evidence Act 1906;

• Financial Management Act 2006;

• Freedom of Information Act 1992;

• Limitation Act 2005;

• Public Sector Management Act 1994; and

• Disability Services Act 1993

• Equal Opportunity Act 1984

• Industrial Relations Act 1979

• Interpretation Act 1984

• Library Board of Western Australia Act 1951

• Minimum Conditions of Employment Act 1993

• Native Title Act (Commonwealth) 1993

• Occupational Safety and Health Act 1984

• Royal Commission (Custody of Records) Act 1992

• State Supply Commission Act 1991

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Notes

These notes should be read in conjunction with the Explanatory Statement to the Financial Statements.

The variations are primarily due to:

Note1 : Total Cost of Service $Million

Transport Policy function (transferred from Department of Planning) $27.82

Coastal Infrastructure function (transferred from Department of Planning)

$8.58

Esperance Lead Nickel Clean Up $3.01

Taxi User Subsidy Scheme $2.24

Grain Freight Transitional Assistance Program $0.96

Note 2: Net Cost of Services $Million

Esperance Lead and Nickel Clean up $3.01

Taxi User Subsidy Scheme $2 24

Grain Freight Transitional Assistance Program $0.96

Note 3: Total Equity

The variation is primarily due to the transfer of equity from the Department of Planning, linked to the transfer of infrastructure assets.

Note 4: Net Increase in Cash Held

The variation is primarily due to the transfer of cash and cash equivalents from the Department of Planning, consisting mainly of the Perth Parking Licensing Account and the Small Craft Facilities Trust Fund.

Note 5:Approved Full Time Equivalent

The increase in the number of Full Time Equivalents is primarily due to functional transfers of Coastal Infrastructure and Policy functions from the Department of Planning.

Agency performanceCompares results with targets for both financial and non-financial indicators and explains significant variations. This section may also describe major initiatives and projects.

Government strategic goal Departmental desired outcomes Departmental services

Outcomes based service delivery


1. An accessible and safe transport system.

1. Transport system and services development, planning, operation and regulation.

2. Vehicles and road users that meet established vehicle standards and driver competencies.

2. Motor vehicle and driver licensing services.

State Building – Major Projects


3. Integrated transport systems that facilitate economic development.

3. Strategic transport policy.

4. Integrated transport planning.

Financial targets: Actuals compared to budget targetsThe following table provides a comparison of the financial targets and outcomes against criteria included in the Resource Agreement between the Chief Executive Officer, former Minister for Transport and Infrastructure and the Treasurer.

2009-10 Target (1)

2009-10 Actual

VariationNotes

Reference

$’000 $’000 $’000

Total costs of services 235,333 280,122 44,789 Note 1

Net cost of services 100,055 $108,842 8,787 Note 2

Total Equity 137,825 463,779 325,954 Note 3

Net increase/(decrease) in cash held 30,155 71,254 41,099 Note 4

Approved Full Time equivalent 1,094 1,136 42 Note 5

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Services and key efficiency indicators for Goal 1

2009 - 10 target 2009 - 10 actual Variance explanation

Service 1: Transport system and services development, planning, operation and regulation.

New costing models developed for the DoT have more accurately identified marine safety costs across the Regions that align directly to this measure. This along with an unanticipated drop in recreational boat registrations has combined to increase the actual cost per vessel.In 2009-10 the training schedule, which forms a large part of the pollution Preparedness cost, was interrupted on a number of occasions, due to staff being involved in actual disaster activity. The most notable being the 90 days involvement with the Montara spill and the Pacific Adventurer in Queensland.The scope of the TravelSmart program changed during 09/10 to include the Living Smart program. The target for 09/10 was calculated using the TravelSmart funding only.The lower than expected average tonnage per trip is due to the transition of service providers.Through the use of experienced personnel and qualified contractors and the establishment of good working relationships with local government, the DoT has been able to improve efficiency and reduce the overall administrative cost considerably as demonstrated by a continuing downward trend.

Average administrative cost per taxi user subsidy processed.

$1.06 $1.09

Average cost per day per maritime infrastructure asset managed.

$65.87 $69.61

Average survey cost per commercial vessel.

$2,603 $2662

Average cost per private recreational vessel registration.

$52.31 $93.87

Cost to maintain marine pollution response preparedness per registered vessel.

$46.24 $34.96

Average cost per household contacted under the ‘TravelSmart’ scheme.

$102.85 $204.21

Average tonnage per North-West shipping trip.

$3,050 $1,108.5

Cycling grant administration cost as a percentage of the total value of grants.

16.9% 14.94%


Service 2: Motor vehicle and driver licensing services.

Average cost per vehicle and driver transaction.

$18.76 $17.46

Average cost per vehicle inspection. $60.53 $90.46

Average cost per driver assessment. $70.14 $87.06

Percentage of driver’s licence cards issued within 21 days of completed application.

99% 99.8%

Goal 1 - Outcomes based service deliveryGreater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

Outcomes and key effectiveness indicators for Goal 1


Outcome 1: An accessible and safe transport system

Percentage of Taxi Users Subsidy Scheme (TUSS) applications rejected contrary to the entitlement guidelines.

0% 0%

Percentage of time maritime infrastructure is fit for purpose when required.

99.92% 99.87%

Percentage of regional airports receiving regular scheduled public transport (RPT) air services.

100% 96%

RPT air services to Ravensthorpe ceased in June 2009 when a major mine closed.

Rate of reported incidents (accidents) on the water per 100 commercial vessels surveyed under the Western Australian Marine Act 1982.

4.00 5.11

Commercial vessel activity decreased substantially during the economic downturn in 2008-09 and the rate of incidents/accidents also decreased. During 2009-10 activity levels returned to normal and the rate of incidents/accidents has reflected this.

Rate of reported incidents (accidents) on the water per 10,000 registered recreational vessels.

9.00 9.51

Rate of serious accidents per million train kilometres.

4.00 4.05


Outcome 2: Vehicles and road users that meet established vehicle standards and driver competencies.

Percentage of vehicle examinations completed in accordance with the Australian design rules assessed by independent audit.

100% 98%

Percentage of driver licences issued that comply with the graduated griver training and licensing system assessed by independent audit.

100% 92%

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Esperance Cleanup and Recovery Project The town of Esperance was contaminated with lead dust during the handling and loading of lead carbonate concentrate at the Esperance port between April 2005 and March 2007.

The Esperance Cleanup and Recovery Project (ECRP) was established to undertake a thorough and comprehensive cleanup of the town site where lead levels were found to exceed existing health and environmental guidelines. State Cabinet approved $15 million funding for the ECRP on 22 June 2009.

A steering committee of representatives from the Esperance community, Shire of Esperance and officers from relevant State Government agencies has been established and is overseeing this project.

By the end of May 2010, approximately 25,000 samples had been collected from 750 individual premises across the town site. Analysis of sample results indicated that 90 per cent of premises required some form of cleaning. In March 2010 a trial cleaning project involving 35 homes was successfully completed and by the end of June 2010 $2.75 million had been spent.

Contracts for the major cleaning component of the project have been awarded and cleaning commenced in July 2010. The majority of the required cleaning across the town site is scheduled for completion by the end of December 2010.

A dedicated website has been established to provide timely and accurate information to the Esperance community about the ECRP. The website address is www.oncue.org.au.

Rail Safety Bill 2009Designed to improve rail safety through greater efficiencies and regulatory harmonisation across jurisdictions, the Rail Safety Bill 2009 replaces the Rail Safety Act 1998. Alongside variations to the Australian Transport Council’s national model of rail safety legislation, the Bill will enhance rail safety outcomes while maintaining consistency with specific legislative requirements in Western Australia.

Under the legislation, which is expected to be implemented in the second half of 2010, regulations are being developed to govern drug and alcohol use, define fatigue, and establish accepted health and fitness regimes. New requirements for security and emergency management plans will also be addressed in the regulations along with interface co-ordination plans.

Owner-Drivers (Contracts and Disputes) Act 2007A code of conduct and regulations to support the Owner-Drivers (Contracts and Disputes) Act 2007 were approved in May 2010, ready for implementation on 1 July 2010. Changes to the Act and the introduction of a code of conduct were designed to promote a safe and sustainable road freight transport industry.

The code of conduct is overseen by the Road Freight Transport Industry Council, which was established under the legislation, and outlines provisions for hirers on the type and extent of information given to owner-drivers. This includes the determination of guideline rates using a costing model, payment conditions, record keeping requirements and other standard information.

The Road Freight Transport Tribunal, established under the Act, has also met on a regular basis to hear and determine disputes.

Major initiatives and projects, and significant issues impacting the agency for Goal 1North West shipping serviceLate in 2009, the State Government awarded the contract for the subsidised North West shipping service to Norwegian shipping company The Jebsens Group. The decision to support this service with public funds was based on the value of creating an alternative transport service for remote communities and industry, and to reduce the negative impacts of heavy vehicles by taking freight off the road system.

The service commenced in March 2010 and makes regular calls at the Kimberley ports of Broome and Wyndham. Pilbara ports will soon be added to the schedule.

The initial three-year contract with Jebsens will be extended by a further two periods subject to the agreement of both the State Government and the operator. A joint management committee comprising State Government agencies and Jebsens employees oversees the development of the service.

Aviation - intrastate air services reviewIn Western Australia there are regular public transport air services to 25 regional communities. Competition is permitted to nine communities where passenger numbers are high. Services to the remaining 16 communities are protected by the State Government through the Coastal Network, Northern Goldfields Network, a protected route between Perth and Derby, and the Kimberley subsidised air service.

The existing system was recently subjected to a comprehensive review when the airline industry’s response to a baseline framework was invited through an advertised request for proposal. Airlines were encouraged to provide alternative proposals in which they could demonstrate improved services to communities and better outcomes for Government and industry.

The new arrangements are anticipated to commence at the end of February 2011.

Regional Airports Development SchemeThe objective of the Regional Airports Development Scheme (RADS) is to ensure regional aviation infrastructure and airport services are developed and maintained to facilitate air access and enhance economic growth in Western Australia.

RADS has played a significant role in the development of airport infrastructure in regional Western Australia since 1997, allocating approximately $30 million into more than 250 airport projects.

The 2009-10 RADS funding round allocated $6.73 million to 33 eligible projects in regional airports across Western Australia. The scope of eligibility for RADS funds was increased to include the development of runways, facilities, grounds and master plans, as well as maintenance programs and terminal development.

Projects that advanced significantly or were completed in the 2009-10 funding round were Wyalkatchem and Newman airports, which received funding of $1.8 million and $1.1 million respectively for substantial upgrades to their runways and terminal facilities.

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Improved metropolitan taxi service The metropolitan taxi industry has improved its performance by increasing the number of ‘jobs covered’ across the Perth metropolitan area. This equates to the highest peak period performance level achieved by the industry since reporting began in 2000.

Since the March 2009 quarter, the percentage of jobs covered within the peak period (Friday and Saturday nights) increased from 97.8 per cent to 98.2 per cent in the same quarter in 2010.

During the off-peak period (all other times) the level of jobs covered was unchanged between the March quarters in 2009 and 2010.

The following table shows the improvements in jobs covered over the past 12 months.

Comparison of taxi jobs covered June 2008 to March 2010

Time period June September December March

2008 2009 2008 2009 2008 2009 2009 2010

Peak 95.8% 98.4% 96.4% 98.2% 96.1% 97.2% 97.8% 98.2%

Off-peak 97.8% 99.2% 98.3% 99.3% 98.2% 99.2% 98.8% 98.8%

Taxi Industry BoardThe Taxi Industry Board (TIB) was established in 2009 to provide professional and independent advice to the Minister for Transport in order to make improvements to the industry.

Recent achievements of the TIB include the implementation of an increase in the Taxi User Subsidy Scheme (TUSS) subsidy from $25 to $35 and an extension of the stand-by taxi system to ensure that all wheelchair taxi requests can be met in a timely and reliable manner. These initiatives were approved by the Minister on the recommendation of the TIB.

In line with its terms of reference, the TIB has also formed various sub-committees to address important single issues that include fare setting, multi-purpose taxis and a regulatory review of the taxi industry. These subcommittees meet as required to progress matters outside of the full TIB monthly meeting.

The Taxi Industry Board Reference Group, comprising taxi industry and consumer representatives, provides input into the considerations of the TIB and its sub-committees, before being submitted to the Minister for consideration.

Peak period operating hoursTo balance customer expectations with taxi driver viability, peak period taxis continue to operate weekday mornings between 5am and 9am on a rostered basis. This period of operation will continue and will be monitored closely by DoT.

Stand-by multi-purpose taxi

Following previous successful trials, the Government is funding a further 12-month multi-purpose taxi (MPT) stand-by trial whereby the two MPT coordinators (Black & White Taxis and Swan Taxis) are able to quickly dispatch a vehicle to service wheelchair taxi requests that might otherwise be unfulfilled or run unacceptably late. The stand-by vehicle system will operate seven days a week between 8am and 6pm. This additional capability is expected to bring the reliability of Perth’s wheelchair taxi service in line with or exceed the conventional taxi industry’s performance.

After-hours wheelchair taxi incentive

The availability of a MPT after 6pm is expected to increase with the introduction of a 12-month trial of an additional night time subsidy for MPT drivers. The current subsidy for drivers of $10 per wheelchair job has been increased to $20 for wheelchair jobs allocated by the MPT coordinators. This incentive will apply between 6pm and 8am the following day, thereby dovetailing with the MPT stand-by vehicle, which covers the higher demand in the daytime.

Improvement to the Taxi User Subsidy Scheme

Members of the Taxi User Subsidy Scheme (TUSS) eligible for a 75 per cent subsidy on their wheelchair taxi trips (when travelling with their wheelchair or scooter) benefited from a rise in the subsidy cap from $25 to $35. The cap had not been increased since its introduction in the late 1980s, and in recent times this has resulted in over 20 per cent of TUSS members who use a multi-purpose taxi incurring a greater proportion of the fare. The increase to $35 has minimised this problem.

TravelSmartWestern Australia is a world leader in working with householders to reduce car use as a strategic response to climate change, energy security and public health issues.

The TravelSmart Household program has been offered to 418,500 Perth residents, achieving annual reductions of 30 million car trips, 300 million vehicle kilometres and 90,000 tonnes of greenhouse gases.

In 2009-10, TravelSmart also worked with local government, schools and workplaces. One regional and 14 metropolitan local governments participated in the TravelSmart Officer Network. The TravelSmart to School pilot program worked with local governments to support 10 schools to increase the number of students that walk, cycle or take public transport to school. TravelSmart’s workplace program supported employers to reduce car use including completion of travel plans for the Building Commission, City of Cockburn and St John of God Hospital in Subiaco.

The TravelSmart programs will continue in 2010-11 in conjunction with project partners.

Living SmartIn 2008-09 the TravelSmart Household program was included in Living Smart together with initiatives to help households reduce their energy use, water use and waste production – and thus address carbon pollution and utility cost pressures on households. In 2009-10 the Living Smart program was funded under the Australian Government’s Perth Solar City program, and is currently being offered to 10,000 target households in the eastern metropolitan area.

Living Smart, a world-first initiative, is an integrated, cross-portfolio demand management initiative formed by partnerships that include planning, transport, environment and utilities. It combines important public policy aims to achieve efficient and effective responses to the challenges of climate change, energy security and public health.

Early indicators show that the initiative is on track to achieve carbon dioxide reductions of one tonne per household across the project population. Project evaluation also showed that 76 per cent of participants had reduced energy use, 68 per cent had reduced water use, 54 per cent had reduced waste and 31 per cent had reduced car use.

Cycle InsteadDoT has continued to promote cycling as an environmentally friendly, healthy, enjoyable and viable form of transport for short journeys.

During this year’s Cycle Instead Bike Week, more than 100 community events were held throughout Western Australia, as well as several well-patronised major events. These included a Members of Parliament and Mayors’ Bike Ride co-hosted by the City of Claremont, a Cycle to School Day and the annual HBF Freeway Bike Hike for Asthma community ride.

The Cycle Instead in Spring campaign included a six-week Bike to Work Challenge, which began in September 2009 and engaged 1646 commuter cyclists from 97 workplaces across the State. Participants travelled a combined total of 466,625 kilometres, saving an estimated $73,000 in fuel costs.

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Rail safety accreditationsIn Western Australia, 26 rail transport operators hold rail safety accreditation and the Office of Rail Safety is working with BHP Billiton Iron Ore to progress the company’s accreditation. Previously the company had been exempted from the Rail Safety Act 1998 and was regulated under the Mines Safety and Inspection Act 1994.

National rail safety guidelinesThe Director Rail Safety took up the role of chair of the national Rail Safety Regulators Panel in December. The Office of Rail Safety provides a secretariat function for this important national group as it progresses towards achieving national regulatory consistency. The Office of Rail Safety has contributed to the development of several national guidelines and procedures for rail safety regulation. These will take effect when the new Rail Safety Act 2010 based on a model national Bill is implemented in Western Australia. The guidelines will contribute significantly to achievement of consistent regulation of risks and rail safety by all jurisdictions.

Port HandbookPort and shipping industries and trade-related organisations across Western Australia were provided with the 2009 Port Handbook, a comprehensive publication outlining essential information about the operation of the State’s eight major ports from Broome to Esperance. Copies of the 2009 Port Handbook were also distributed at the International Harbour Masters Association’s Seventh Biennial Congress held in Perth from 19 to 23 April 2010. The congress was attended by more than 200 national and international delegates and provided a unique opportunity to showcase the capacity of the Western Australian port system to a global audience. The handbook was included in the information packs distributed to congress participants.

Port Authorities Act 1999 amendmentsThe Minister for Transport tabled a report reviewing the Port Authorities Act 1999 in both houses of Parliament on 14 October 2009. Although the review indicated the Act was serving the port industry efficiently, several minor amendments were recommended to enhance its operation. Additional amendments to the Act were also identified through:

• The review of ports initiated by the Council of Australian Governments;

• The Western Australian Legislative Assembly Education and Health Standing Committee investigation into the lead pollution incident at Esperance; and

• Further consideration of provisions in the Act by port authorities.

The range of identified amendments to the Act is now being formally progressed.

Taxi driver trainingThe national minimum standards framework aims to harmonise taxi driver training and entry standards across Australia, leading to greater confidence and mutual recognition of taxi driver licences. The project continues to be managed by DoT in cooperation with interstate taxi regulators. It encompasses the development of National Taxi Driver Training Units, a National Minimum English Standard (NMES), and the setting of minimum standards for criminal and medical checks for taxi drivers.

The National Taxi Driver Training Units were endorsed by the Australian Transport Council (ATC) in November 2009 and have been approved by the National Quality Council (NQC). Upon NQC online release, these units were available for implementation by registered training organisations in all jurisdictions from 1 July 2010. In addition, the NMES will provide all jurisdictions and their taxi industries with a methodology to ensure that potential drivers are sufficiently well developed in vocabulary, grammar and pronunciation. The NMES, using the International Second Language Proficiency Ratings standard or equivalent was endorsed by the ATC in April 2010 and was implemented on 1 July 2010.

Metropolitan taxi fare model

The metropolitan taxi fare model (MTFM) review created an industry-specific cost index approach for the annual adjustment of taxi fares. The review was completed in December 2008 and recommended a total fare increase of 6.18 per cent for the year.

In 2009, the new MTFM recommended an annual total taxi fare increase of 0.97 per cent, an adjustment which was negatively received by the taxi industry.

The Minister subsequently referred the MTFM to the Taxi Industry Board (TIB) to re-assess the current model and make recommendations for any necessary amendments. The TIB has subsequently appointed a sub-committee to undertake a review. Any changes to the MTFM will be effected prior to the next fare adjustment scheduled for November 2010.

Taxi rank marshal trial

The taxi rank marshal trial commenced on 12 June 2009 to increase the efficiency of the Milligan Street, Northbridge, and South Terrace, Fremantle, secure taxi ranks on Friday and Saturday nights. The experience of other Australian cities indicated that efficient and safe taxi ranks might reduce incidences of violence and anti-social behaviour by attracting more taxi drivers to service the rank, and transporting greater volumes of patrons away in a timely manner.

Analysis of customer waiting times and taxi industry feedback over the 12-month period of the trial confirmed that the improved rank efficiency provided by rank marshals reduced customer waiting times and incidences of violent or anti-social behaviour in the taxi rank precinct.

The taxi rank marshal initiative, together with the existing security guards, will be further developed in 2010-11. The aim is to refine secure taxi rank operations to realise greater improvements in customer service levels, and to taxi driver and customer safety.

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Woodman Point recreational boating precinct

The Perth Recreational Boating Facility Study identified the Woodman Point recreational boating precinct as a highly important site within the south metropolitan area to support the growth and future demand for boat launching, storage and a range of supplementary maritime service businesses.

Four new public boat ramps built in 2008 brought the total to eight public and five private ramps, making Woodman Point the largest boat launching facility in Western Australia. To cater for the increased patronage resulting from the new ramps, DoT has now upgraded the parking facilities to a total of 300 car and boat trailer bays. Of these, 185 bays are in a sealed parking area and the balance is in an unsealed adjacent overflow parking area. The estimated total cost of this project is $1.25 million.

Future planned improvements in the boating facility will include the upgrade to the access roads (planned for 2010-11), the replacement of the original four ramps with new structures, sealing of the eastern parking area, and the construction of a new ablution block. Lighting, landscaping and security will progressively be upgraded.

Earthworks associated with the parking area construction also provided fill material for the adjacent land, bringing it to a level where it can be developed in the future as serviced lots that can be offered for lease for marine related purposes.

Recreational Boating Facilities Scheme

In June 2010 the Minister for Transport announced that a record $1.87 million in grant funding had been allocated to successful applicants in Round 15 of the Recreational Boating Facilities Scheme (RBFS).

The RBFS, which is funded directly from recreational boat registration fees, is a grants program that provides improved recreational boating facilities through joint funding to local government authorities, State Government departments and statutory authorities throughout Western Australia.

It offers grants each year to assist in the planning and construction of facilities that benefit recreational boaters.

Eligible projects include boat ramps, jetties, signage, moorings, lighting, trailer parking, ablution blocks, universal access paths, planning studies and fish cleaning facilities.

Since its inception in 1998, the RBFS has allocated $11.1 million to 225 projects throughout Western Australia.

Seagrass wrack within Geographe Bay

DoT has overseen the completion and release of a two year study entitled “Seagrass Wrack Dynamics in Geographe Bay” by the University of Western Australia, Edith Cowan University and private research company DHI.

The study includes recommendations for the improved management of seagrass at Port Geographe, where extensive problems with seagrass wrack and sand deposits have been experienced since it was built in the mid 1990s.

In the study’s key recommendation, structural changes to the breakwaters and seawalls at Port Geographe were advised and a possible option was developed, modelled and recommended for further investigation.

The study was released in May 2010 and considered factors critical to the movement of seagrass on and off the beaches. Beach accumulations have been studied for their physical and chemical properties including the release of gases such as hydrogen sulphide. The study resulted in computer modelling to predict seagrass movement within the ocean and onto and off the beach. It was used to model options including proposed changes to the Port Geographe entrance groynes to ascertain whether modifications could reduce the collection of wrack on the beach west of Port Geographe and allow it to naturally bypass the marina entrance and groyne field.

The cost of the study was approximately $0.79 million, to be funded equally by DoT, the Shire of Busselton and the developer.

The recommended option is now being trialled against sand movement models and it is anticipated that detailed designs and cost estimates will be developed during 2010.

Extension of port authority jurisdictionIn order to ensure safe port operations at proposed new port developments near Dampier and Broome, proposals to extend the jurisdiction of each port authority are being progressed. Following significant work by the Department of State Development and DoT, Cabinet has approved the Dampier Port Authority being responsible for port operations at the proposed liquefied natural gas processing and export facility at Ashburton North near Onslow and for iron ore export facilities at Mount Anketell near the iron ore export facilities of Rio Tinto at Cape Lambert.

The State Government has flagged an intention to make the Broome Port Authority responsible for port operations at the proposed liquefied natural gas processing precinct at James Price Point. This proposal is being progressed by the Department of State Development with port-related input from DoT and the Broome Port Authority. As a matter of policy, opportunities for port authorities to assume responsibility for existing non-port authority ports and for new export facilities may be investigated in the future.

Esperance – Bandy Creek Boat Harbour weirThe Bandy Creek Boat Harbour weir in Esperance was badly damaged and the adjacent riverbanks significantly eroded by a major flood in 2007. DoT led an extensive consultation process with relevant State Government authorities, the Shire of Esperance and the traditional land owners to reach agreement on the design of a new weir structure and associated remedial works.

The works are now completed with the riverbanks being re-contoured, rock protection installed, and the remains of the old weir being demolished and replaced by a low profile, concrete causeway incorporating 45 pipes positioned at the base of the structure. The weir has been designed to ensure tidal flushing and to accommodate fish movement between the creek and the harbour. At the same time it provides protection to harbour operations by impeding the movement of silt from the creek, which would otherwise infill the harbour; and allows pedestrians, cyclists and service vehicles to cross.

The project, commenced 8 February 2010, was completed without complications at a total cost of $2.5 million.

Kalbarri – Construction of a land-backed wharf A land-backed wharf at the Kalbarri maritime facility will be constructed to meet the growing demands of the local fishing and charter boat industries. The wharf will be constructed between the existing service jetty and boat pens and will allow the local fishing fleet to directly load and unload consumables and catch thereby avoiding double handling and greatly improving efficiency and safety.

Project planning and consultation on the project has occurred with the Kalbarri Fishermen’s Association, Mid West Development Commission, Shire of Northampton and the traditional land owners.

Onsite construction of the facility is scheduled to commence in August 2010 at a cost of $1.4 million.

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Perth 2011 International Sailing Federation World Championships Regatta The Perth 2011 International Sailing Federation World Championships Regatta will be held in Fremantle from 3 to 18 December 2011 and will be three times larger than the 1987 America’s Cup defence. The event will be based at the Fremantle Fishing Boat Harbour, which is a DoT managed facility.

It is estimated that 1500 international competitors and more than 5000 official personnel will be involved in the event, and that over 500,000 spectators will make their way into the City of Fremantle over the course of the regatta. It is also estimated that 600 million people internationally will watch the event on television and online, and that approximately $41 million will be generated for Western Australia’s economy.

DoT, in conjunction with event organisers and a multi-agency working group, is taking a lead role in organising the transport and infrastructure requirements for this event. Special effort is being made to minimise any negative impact on existing users of harbour facilities, while taking advantage of the unique benefits to the City of Fremantle and the Western Australian economy an event of this size and profile affords.

Upgrade of the Wyndham port Funding of $10 million to upgrade the Port of Wyndham has been made available through the Commonwealth Government under the East Kimberley Development Package.

The port is a strategic transport link for the East Kimberley region servicing the mining, cattle and tourism industries, and will service future agricultural trade from the Ord Expansion Project.

A strategic development plan is being produced in conjunction with industry, local government and State Government agencies. The plan will guide future development of the port including key infrastructure required to cater for future trade and port operations.

Projects underway include replacement of the jetty amenities building, fendering to the jetty berth face and refurbishment of protective coatings to jetty piles.

Other projects include upgrading the jetty cathodic protection system, expansion of the sea container hardstand area, replacement of an electrical substation, repair of port storage buildings, and construction of additional plant storage building and ablutions blocks.

Oceanographic - Short Message Service

The original concept of the Short Message Service (SMS) was implemented to provide an alert system if and when any of DoT’s Directional Wave Riders (DWR) became adrift.

The new DWRs contain a GPS system that continuously transmits their geographical position. When the DWRs are deployed, a watch circle (500m radius) is set around their mooring location. As the DWR data is automatically downloaded at the Marine Operations Centre, the DWR position is monitored and if it is detected outside the watch circle an alert message, via SMS, is sent to a staff member’s mobile phone showing the DWR’s current position, drift direction and speed.

The SMS alert system allows immediate response for the recovery and rescue operations of a drifting DWR. The ability to monitor its position assists in preventing potential damage to or loss of the DWR and possible collisions with other vessels. This alert system allows DoT to better manage the DWR network, saving thousands of dollars in replacement or repairs.

Public access to near real time wave information via SMS - mobile phone service is an extension of the SMS alert system.

Fishermen, surfers, commercial and recreational maritime operations and coastal communities wanting current information about ocean conditions can now access the latest sea and swell data using their mobile phone by texting ‘W’ for west coast information or ‘S’ for south coast information to 199 SWELL (199 79355) for a fee of $1 and the information will be sent to their mobile phone.

Set-up costs associated with this project were approximately $3500, with ongoing monthly service costs of $185.

Since the implementation of the SMS wave information service in September 2009 DoT has received over 2000 calls.

Management activities

DoT has taken decisive action to remedy maintenance obligation defaults by the Port Geographe developers. DoT completed remedial dredging within the marina entrance to address marine safety concerns following several reported vessel groundings in early 2010. The dredging has restored the navigable channel and provided safe boating access for marina users.

DoT also arranged for the annual seagrass and sand bypass works following the developer’s failure to meet its obligations. The works, completed in June 2010, have removed approximately 20,000m³ of accumulated seagrass from the beach. This has overcome the public health issue associated with the release of hydrogen sulphide gas from the decomposing wrack and returned public amenity for beach users. DoT has also by-passed approximately 70,000m³ of sand from the western side of the marina breakwaters to the eastern side to rebuild beaches and protect nearby properties.

This cost approximately $0.8 million and DoT is currently in the process of accessing the developer’s bank guarantees to recoup the cost of these works.

Hillarys Boat Harbour enhancement program

Since its official opening in January 1988, Hillarys Boat Harbour has become one of Perth’s most visited destinations. Since 2005 the State Government has funded a $9 million enhancement program.

Stages one and two of the program were completed in 2009 and included an extension to the western breakwater, replacement of the E Jetty pen system, major landscaping works and ablution upgrades.

Stage three works were completed in 2010 and included major landscaping upgrades to the busiest of the public areas at the harbour, the southern beach and surrounding areas, centre groyne, grassed picnic areas and eastern entry areas of the harbour. These works have provided improved access and facilities to the harbour’s public areas.

An additional 44 new boat pens and a universal access pontoon, which allows people with limited mobility to easily board and disembark from vessels, were also constructed at the harbour at a cost of $6 million. On 23 May 2010 a public ballot was held with 20 pens being allocated to recreational boaters. The remaining 24 pens will be used to house vessels needing to be relocated as part of the pen replacement program that will replace D Jetty planned for the 2010-11 financial year.

New managing contractor agreement - relationship-based contracting

DoT’s Coastal Infrastructure and Marine Safety business units are responsible for the planning, design, construction and maintenance of DoT’s maritime infrastructure, including navigational aids.

DoT is implementing a revised procurement strategy for its construction and maintenance services based on the managing contractor concept. This new relationship style agreement will allow DoT to more effectively deliver the services required for whole-of-life asset management of its maritime assets and deliver various maritime infrastructure projects. This approach will see the end of multiple contracts, which are more costly and require greater management.

The request for proposal document for the new managing contractor agreement has been out to public tender and it is planned that this agreement will be awarded in late 2010.

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National Standards for Commercial Vessels - single national jurisdictionIn October 2008, DoT amended numerous regulations applying to commercial vessels, in order to adopt the updated Uniform Shipping Laws Code (USL Code). The updated USL Code picked up parts of the National Standard for Commercial Vessels (NSCV) endorsed by the Australian Transport Council (ATC). Additional amendments to Western Australia’s legislation were made in late 2009 to adopt further changes to the USL Code agreed to by the ATC in November 2008.

The amendments to the legislation will ensure the marine industry in Western Australia is subject to nationally consistent, modern, flexible standards for construction, fit-out and operation. This will lessen the complexity posed by differing regulatory requirements and reduce or eliminate the incidence of additional compliance costs to industry for vessels that conduct business in more than one jurisdiction.

A national marine safety regime will support Western Australia’s industry and economy through an increased ability for stakeholders to participate in national markets. It will also facilitate the Government in delivering its commitment to high standards of safety, environmental performance and productivity at a sustainable cost, by reducing existing administrative barriers to compliance, and eliminating the potential for some vessels to operate in legislative loopholes.

The single national jurisdiction will see the Australian Maritime Safety Authority (AMSA) assume overall responsibility for regulating commercial vessel design, construction, equipment and operational standards, surveying of vessels and regulating commercial vessel crewing and qualifications. In addition to involving the private sector to deliver some services, AMSA intends to seek assistance from states and territories in performing its functions. Western Australia is involved in discussions with AMSA to determine what activities it might perform on AMSA’s behalf. Service level agreements to underpin these arrangements will be developed between AMSA and relevant jurisdictions in future.

Mooring managementThe growing demand for moorings in the metropolitan area and coastal regions has been the catalyst for a review of the management of moorings throughout Western Australia and the initiation of a management strategy by DoT. The Swan and Canning rivers have reached capacity for mooring placements and the rapid growth and high income of regional mining communities has also seen significant expansion in recreational boating activity. This, coupled with ad hoc placement of moorings, has exacerbated the need for a State-wide moorings management plan supported by strengthened legislation.

DoT has embarked on a project to enhance the management of moorings in navigable waters under its jurisdiction in order to address the proliferation of unauthorised moorings across the State, particularly in Rockingham and the Peel and South West regions, and the adverse impact those moorings are having on public safety and the environment.

Equity of access by boat users in locations suitable for vessel moorings is the desired outcome of this new regime.

Navigational safety at the North West Shelf developmentDoT is working with the Commonwealth with a view to developing an integrated navigational management system for shipping in the North West.

The North West, due to the increase of mineral and petroleum developments and associated shipping, was identified as an area that required management plans to mitigate risks that may impact on the economy and the environment. DoT and the Australian Maritime Safety Authority undertook a joint initiative to identify particular areas and locations that require risk mitigating plans to be developed. The next stage of this project will entail the development of joint policies and project plans to risk manage the North West waterway. This will entail extensive liaison with industry, developers and other Government agencies at the State and Commonwealth levels.

In July 2009 DoT facilitated the Ports and Waterways Safety Assessment Workshop in Perth. The workshop was conducted by a specialist team from the United States Coast Guard who have conducted similar work in Australia, in the Great Barrier Reef and Torres Strait regions. There was an acute focus on the development of a traffic management system, consideration of environmental protection zones and current sea lanes.

The workshop identified potential risks and mitigation measures, how they would be prioritised, and discussed stakeholder “buy-in” for any agreed measures. Members from State and Commonwealth agencies and stakeholders with a vested interest in this region participated in the workshop as part of the consultation process. Work is now underway to develop a joint State/Commonwealth navigation management plan with phase two to be completed in December 2010.

Marine safety education - Junior Crew program DoT has a strong commitment to marine safety in Western Australian waters.

Supplementary to the Recreational Skipper’s Ticket, DoT has developed a new educational initiative, the Junior Crew Pack, which promotes marine safety and a safer boating community through a program focused at primary school students.

The Junior Crew Pack was developed by DoT in partnership with the Western Australian Curriculum Council and the Department for Education and Training, to provide a marine safety educational package for Western Australian primary school students in Years 3, 4 and 5. The program consists of five marine safety topics and a final task that uses these topics as a foundation to support the marine safety message. The program introduces students to marine safety, specifically the safe use of boats and how to ensure their own safety and that of others while boating. At the successful completion of the program, students are awarded a Junior Crew Certificate.

The program was launched by the Minister for Transport on 10 February 2010. To date 150 schools throughout the State have taken up the course, with schools as far afield as Esperance, Kununurra, Kalgoorlie and Christmas Island enrolled. In the future, it is planned that the program will see regional officers attending schools to further enhance the delivery of the program and incite further interest.

Volunteer Marine Safety Liaison OfficersThe Volunteer Marine Safety Liaison Officer (VMSLO) program was initiated by the former Department for Planning and Infrastructure in 2000 as a means of involving the community and enhancing marine safety. In 2008 the program was upgraded to reflect current boating standards and practices.

DoT has now expanded the reinvigorated program to incorporate the Moore River (Guilderton) region. There has been strong interest from Guilderton residents to participate in this program. Further extension to the rest of the State will occur as funding becomes available and demand warrants its introduction.

VMSLOs perform a valuable service within the community and assist DoT by promoting safe boating practices. The information gathered by these volunteers is invaluable, and is assisting DoT in gathering local knowledge by identifying issues, and aids in determining policy and operational decisions.

The ongoing management of the program will be coordinated by DoT in collaboration with its Marine Safety and Regional Services business units.

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Technology During 2009-10 DoT undertook a number of initiatives to improve and refine its technology to ensure better efficiencies in its service delivery. These improvements included the implementation of the TRELIS Application Deployment (TAD). TAD will simplify the distribution process of major TRELIS releases thereby reducing the effort and cost to the business.

An automated process has been implemented to allow change of address details received from Online WA to be automatically updated in TRELIS. This new efficiency eliminated what was previously a manual process.

In early December 2009, the introduction of the provisional date calculator delivered an automated provisional period calculator enhancing TRELIS functionality. The calculator is legislatively compliant, historically accurate, auditable and includes mouse-over enhancements for key information fields. The automation of this function reduces transaction time, the flow-on effect of which is a reduction in queue waiting times for all operational areas.

Customer serviceDoT has a commitment to improve and refine customer service levels through enhanced frontline and online customer contact. The introduction of the customer queue management system in all metropolitan licensing centres has seen a more focused use of frontline staff to service the needs of customers more effectively.

Meeting customers’ needs online has also been a priority, with the online vehicle registration status enquiry innovation allowing vehicle owners to check their vehicle licence validity instantly. DoT is also revamping the licensing section of its website and will roll-out the new enhanced web presence in July 2010.

Vehicle safetyCustomer convenience and comfort, workflow efficiencies, safety and security were the cornerstones of the design of the new Osborne Park vehicle examination centre. The centre was opened in October 2009 and features nine hydraulic vehicle hoists that allow for safer and more thorough inspections of vehicles. This ‘booking only’ centre also provides customers with a comfortable and well-appointed waiting area, while providing the examiners a safe and secure environment to undertake their work without customer interaction.

On 1 March 2010 DoT introduced a new Written-Off Vehicles Register (WOVR) inspection process designed to eliminate the opportunity for re-birthing vehicles and to ensure that the structural, electrical and welding repairs meet the highest possible standards of workmanship. An integral part of the new process was the appointment of a network of WOVR approved inspection stations throughout Western Australia.

Business efficienciesThe introduction of BPAY payment option has given customers greater choice in how and when they pay for a number of licensing charges.

From 1 January 2010 motor vehicle licence stickers and discs were no longer issued saving the Government $2 million over four years. This change was accelerated by the introduction of licence plate reading cameras, on-board computer technology in police vehicles, and mobile units for police street patrols. This was supported by the online vehicle registration status enquiry innovation, which allows vehicle owners to check their vehicle licence validity instantly.

The sanctions and demerit point data project has seen the manual rectification of 1648 previously incorrect records ensuring their accuracy and validity. Also, a new effective methodology for the collection and destruction of obsolete regional number plates was implemented on 1 April 2010.

Implementation of new shipping and pilotage regulationsIn December 2006 Parliament passed the Shipping and Pilotage Amendment Act 2006 to amend the Western Australian Shipping and Pilotage Act 1967. The amendments are designed to reduce risk and accidents at ports in relation to the safety of lives, the marine environment and the integrity of property through: 1) requiring pilots to be licensed and to meet minimum standards of qualifications and competency, 2) introducing revised appointment mechanisms for harbour masters and minimum standards of qualifications and competency, and 3) requiring port facility operators to develop and maintain marine safety plans.

The amendments were approved by the Governor in June 2010 and will be adopted from 1 July 2010. The new regulations will generate benefits for industry, including a streamlined process for the appointment of harbour masters and licensing of pilots, with the Minister and/or a delegated authority assuming this responsibility rather than the Governor.

Stakeholder education to ensure compliance with the National Standard for Commercial Vessels (NSCV) Part E

DoT will continue to educate Western Australian commercial vessel operators in the requirements of the National Standard for Commercial Vessels to ensure a smooth operational transition into the new legislation.

Oil spill response coordination process reviews

DoT is the hazard management agency for marine oil spills in Western Australia and is responsible for ensuring the State is prepared and able to respond to an incident.

DoT conducts a comprehensive program of training each year throughout Western Australia to train stakeholders in various aspects of oil spill response. Courses are provided in incident management, operational response and shoreline cleanup. Monthly training for a core group of oil spill responders known as the State Response Team is also conducted.

In response to the Commonwealth Government’s recent decision to review the national plan, DoT is currently conducting a review of oil spill coordination processes.

This review involves reassessing equipment stockpile needs across the State, stakeholder consultation to determine the training needs of port authorities, maritime facilities, industry, DoT staff and other Government agencies and the development of a suite of policies to guide the ongoing provision of equipment and training. Improvement of processes will facilitate the delivery of training programs that meet the specific needs of each stakeholder group.

Western Australia’s oil spill response and preparedness is operationally sound, as has been shown through successful deployments to large spills such as the response to the MV Pacific Adventurer incident, in which 270 tonnes of oil was spilt and washed up on beaches in Queensland, and the Montara oil well blow-out in the Timor Sea.

This review will not only enhance preparedness and response but will also provide for future needs of the State, particularly with the increase in offshore mining, shipping and commercial support vessels in the north west of Western Australia.

Aquatic review

In recent years there has been a significant shift in aquatic use in metropolitan and regional areas. New types of aquatic craft coupled with competing demand for space has been the catalyst for a State-wide aquatic review.

DoT, in conjunction with the Swan River Trust, will continue a formal aquatic use review of the Swan Canning River Park to ensure equity of use, marine safety and environmental sustainability.

Regional and local councils are also experiencing conflict in aquatic use at popular beaches. Local governments are the lead authorities in control of the land based activities at rivers and beaches down to the high water mark and DoT will continue to work with local government, the community and beach stakeholders to ensure optimum marine safety outcomes.

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Freight and Logistics Council of Western Australia

The Freight and Logistics Council was formed early in 2009 and comprises senior decision makers from industry and Government. Its objective is to provide independent strategic policy advice to the Minister for Transport on key freight and logistics issues.

In the period since its formation, the council has worked on a wide range of issues including the national port and national freight strategies, the State’s grain logistics network, dredging policy, freight corridor protection, freight noise policy, Fremantle Port planning and Kimberley supply chains. Other issues on the council agenda for future discussion include regional port access, the State transport strategy, the Western Australian road network and metropolitan freight logistics.

DoT provides funding, research and administrative support to the Council.

Goal 2. State Building – Major Projects Perth Airport Transport Master Plan

A transport master plan for Perth Airport has been prepared to guide future investment decisions in road and public transport to and around the airport and to ensure that the airport’s role is not constrained by a lack of transport facilities. The project was a joint State/Commonwealth initiative, overseen by a steering committee chaired by DoT. Project funding support was provided by the Commonwealth.

The master plan contains short and medium-term recommendations regarding key road infrastructure requirements and policy and infrastructure recommendations to assist with freight handling and movement. In particular, it draws attention to those road projects required prior to the consolidation of the airport terminals at one location. It also defines an alignment for a future rail link to the airport, so as to safeguard the land for future construction; plus a public transport strategy for prior to rail and in conjunction with rail.

National Transport Reform AgendaDoT supported the Minister’s participation in the Australian Transport Council (ATC), which is responsible for the coordination and integration of all transport and road policy issues at the national level. The ATC is supported by the Standing Committee on Transport (SCOT), of which the Director General is a member.

In 2009-10 the focus of these bodies was on progressing towards a seamless, co-ordinated transport system through single national systems for heavy vehicle regulation, rail safety regulation and investigation, and maritime regulation, along with work on the Council of Australian Governments Road Reform Plan.

DoT hosted a meeting of the SCOT in September 2009, and assisted the Minister with hosting the 31st ATC meeting in Perth on 30 April 2010. Key items on the agenda for this meeting were the national regulation reforms, minimum standards for taxi drivers and the National Road Safety Strategy.

Goal 2 - State Building – Major ProjectsBuilding strategic infrastructure that will create jobs and underpin Western Australia’s long-term economic development.

Outcomes and key effectiveness indicators for Goal 2

2009 - 10 Target 2009 - 10 Actual Variance explanation

Outcome 3: Integrated transport systems that facilitate economic development

Percentage of containerised freight transported via rail in relation to total metropolitan container movements to and from Fremantle port.

16% 10.89%

The global economic downturn in trade has impacted significantly on rail volumes both through loss of certain trades and the intense competition from the road sector.

Services and key efficiency indicators for Goal 2


Service 3: Strategic transport policy

AAverage cost per policy hour for strategic transport policy development

$72.67 $73.26


Service 4: Integrated transport planning

Average cost per planning hour for integrated transport planning development

$92.91 $99.48

Major initiatives and projects and significant issues impacting the agency for Goal 2Oakajee port and rail infrastructureThe development of a deep water port, associated rail infrastructure and a purpose built industrial estate at Oakajee has been characterised as one of the most important economic projects in Western Australia. This project, when implemented, will open up the Mid West as a major mineral resources region.

DoT has overall responsibility for setting the State Government’s port specifications, approving the port design, ensuring that the technical proposals are sound, and that the Government gets value for the $678 million that has been set aside for the development of common use port infrastructure. In the past year the port specifications were determined and the DoT commenced the task of conducting due diligence on the technical studies undertaken by Oakajee Port and Rail Pty Ltd as part of that company’s draft bankable feasibility.

DoT has also been assisting in the development of third party access regimes for the port and rail operations so that the infrastructure will be available to future users under prevailing capacity and commercial conditions.

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Walking and access

DoT’s Walking and Access unit provides tactical policy driven initiatives to encourage and enable Western Australians to walk rather than make short car trips, and to create a universally accessible transport system.

In addition to providing policy guidance to DoT and other State Government agencies, the Walking and Access Unit completed the Accessible Communities Study. The purpose of the study was to identify gaps in the planning system and make recommendations to enable the community to engage in active transport and meet the access needs of people with disability and seniors. The study was presented to the Department of Planning to consider the recommendations in light of State-wide strategic planning frameworks.

Walk Week is an ongoing cross-Government collaboration to promote walking across the State. During Walk Week 2009, there was a total of 336 events with an estimated 44,000 participants from schools, workplaces and community groups.

Additional significant issues and trendsOver the next 15-20 years Western Australia, like many other Australian states, will witness an unprecedented change in the composition of our population, which is expected to increase and age significantly. By 2031 it is estimated that the number of seniors over the age of 80 will increase to 185,000. In June 2009 there were 69,864 people over the age of 80 living in Western Australia (a 474 per cent increase on the number of people aged 80-plus in 1971). During the same period, the number of people aged 65 to 79 has increased by 200 per cent from 66,056 to 198,029. Such a significant rise will impact on the nature of transport users with disability as it is also forecast that the majority of people with a disability will be in this older age group.

At present the transport system in Western Australia has been able to keep pace with the increasing demand of older passengers and passengers with disability. Innovative policy solutions will need to be considered to address this dual trend to ensure that seniors and people with disability are catered for in the future.

Electric vehiclesDoT is participating in several electric vehicle projects, in line with the Government’s commitment to establish a range of incentives to develop and use vehicles that operate on alternative fuels. In November 2009, a research consortium led by the University of Western Australia received $229,000 in funding from the Australian Research Council (ARC) to install 10 public electric vehicle fast recharging stations in Perth. DoT is contributing $100,000 in cash and in-kind support to the project, which will provide information on infrastructure requirements associated with the future introduction of electric vehicles in Perth.

The Minister for Transport launched Australia’s first electric vehicle fleet trial on 11 March 2010. The trial will see 10 Ford Focus sedans converted to electric vehicles and operated in State and local government, and private sector fleets to test them in ‘real world’ operating environments. Trial vehicles will also utilise and test the recharging infrastructure developed for the ARC research project. DoT will take the first car, and is working closely with the trial managers to ensure that it meets all safety, performance and other requirements before the remaining vehicles are converted.

Review and development of a Rail Infrastructure Corridor BillDuring the year DoT commenced a review and the development of legislation governing rail infrastructure within Western Australia. The objectives of the legislation are to provide a consolidated legislative regime to create rail infrastructure corridors, provide for the ongoing management of rail corridors by one Minister and supporting Government agency, and provide consequential amendments to related Acts.

An interdepartmental working group has been established to progress the review.

Nation Building program

DoT worked closely with MRWA to implement the Nation Building Program Memorandum of Understanding (MOU) between Western Australia and the Commonwealth. This five year bilateral agreement replaces the AusLink program funding arrangements. The MOU, signed by the Minister for Transport on 1 July 2009, provides for funding arrangements on road and rail projects related to the AusLink defined National Land Transport Network, road maintenance programs, the Oakajee port infrastructure, and Perth City Link.

Cycling infrastructureThe Perth Bicycle Network (PBN) comprises a network of cycling routes that provide a safer and more enjoyable cycling environment throughout the Perth metropolitan area.

In 2009-10, the Government allocated more than $1.7 million to create shared paths and other cycling facilities to extend the PBN, with major activities undertaken during the year including the allocation of local government grants totalling $1 million to metropolitan local government authorities on a matching dollar-for-dollar basis.

In 2009-10, the Regional Bicycle Network program allocated $750,000 to regional local government authorities on a matching dollar-for-dollar basis to help with the planning, development and promotion of shared paths and cycling facilities in regional Western Australia.

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5. Safety and Health Representatives introductory training

All newly elected SHRs participated in a five-day introductory training course designed to help them understand their responsibilities and equip them with the skills required to undertake their role as SHRs.

SHRs will be the ‘eyes and ears’ of the OHS&W sub-committees, identifying any high-risk hazards and health and safety issues in their various work locations. The new representatives come from various directorates and will serve a two-year term.

6. Establishment of OHS&W committees

To ensure that formal consultative processes are in place and mechanisms for employees to raise and resolve occupational safety and health issues with management exist, the OHS&W committees have been established on a two tier approach comprising of the corporate first tier OHS&W management committee and second tier OHS&W sub-committees.

Policy statementThe Department of Transport (DoT) recognises that the most important element and input is that of its people. From the Director General and corporate executive, there is a strong commitment to ensure that DoT employees are provided with a safe, healthy and desirable work environment, where an inclusive and holistic approach to occupational health safety and wellbeing (OHS&W) is embraced.

Principles

In line with our policy statement, DoT applies the following principles to OHS&W in all we do:

• Management commitment supports a high standard of OHS&W performance;

• Well developed consultation mechanisms facilitate effective engagement between management and employees;

• Hazard management is a key element in the development of OHS&W practice;

• Effective training reduces the risk of work-related injury and disease;

• Planning is essential for the establishment and maintenance of safety management systems designed to continuously improve OHS&W;

• Wellbeing initiatives empower employees to take unique ownership and influence their own welfare; and

• Accountability of OHS&W cannot be delegated.

DoT is committed to:

• Creating a positive safety culture aspiring to zero harm;

• Sustaining mechanisms for engagement between employees and management are developed and working effectively;

• Openly communicating OHS&W performance with employees,

• OHS&W having equal status with other business objectives;

• Employees having equal status in OHS&W objectives and initiatives regardless of location;

• Applying and demonstrating a systematic approach to OHS&W to ensure compliance, review and achieve continuous performance improvement;

• Empowering employees to make the choice to work safely and influence their own wellbeing;

• Managers, employees and contractors undertaking continued training and development to carry out their duties in a safe manner; and.

• Clear OSH&W accountability at all levels.

This policy statement will form part of the OHS&W policy and will be reviewed annually or as required to ensure that it is relevant and appropriate to DoT.

Government policy requirements

Substantive equalityIn meeting and satisfying the State Government’s substantive equality requirements, DoT has commenced a number of activities including:

• Development of an equity and access plan;

• Review of equity group representations across the DoT; and

• General awareness raising through forums including induction sessions.

1. Refreshed focus on occupational health, safety and wellbeing

DoT has acknowledged occupational health, safety and wellbeing (OHS&W) as being one of the DoT’s most important business drivers. DoT’s strong corporate requirement for a safe and healthy work environment has included a revitalised focus in the past 12 months on the objective of valuing our people.

2. Occupational safety and health management systems

The WorkSafe plan developed by the Department of Commerce has been adopted as the framework to implement an effective and systematic safety management system for DoT. The DoT is currently striving towards bronze certification by WorkSafe WA.

3. OHS&W Management Plan 2010-2011

Designed to assist management and staff of DoT in the pursuit of excellence and in the development of improved OHS&W systems and practices, the OHS&W Management Plan 2010-2011 acknowledges that the management of health and safety involves management commitment, good planning and setting of objectives, implementation, monitoring, feedback from audits and reviews, and continuous improvement.

The OHS&W Management Plan 2010-2011 comprises six elements:

1. Management commitment;2. Planning;3. Engagement;4. Hazard management; 5. Training; and6. Wellbeing.

The wellbeing element reflects DoT’s commitment towards maintaining its employees’ health and mental and social wellbeing and not just their physical safety. It aims to empower employees to take ownership of their own wellbeing.

4. Newly elected safety and health representatives for a healthier workplace

In early 2010, DoT conducted a comprehensive nomination and election process to successfully elect safety and health representatives (SHRs) from each work location across the DoT. This coverage ensures that OHS&W issues, including in the regions, are being captured. It also encourages two-way consultation between management and employees.

The primary function of the SHRs is to act on behalf of employees in the workplace on all issues relating to occupational health, safety and wellbeing.

The 26 new graduates will carry out workplace inspections every 30 days to identify and manage hazards in the workplace.

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Scholarship programThe DoT has not yet developed a scholarship program. A submission for budget and has been made seeking to provide financial support for those employees wishing to undertake further study. The proposed program seeks to reinforce that the DoT is a learning organisation that values formal study. The scholarship program would seek to build required skills and competencies within our workforce and would be a tool to attract and retain staff for the challenges that lie ahead. A key aspect of the program would be to link to registered training organisations, TAFE colleges and tertiary accreditation, providing staff with graduated development as well as facilitating enrolment to formal qualifications.

Succession planning The DoT’s formal mentoring program has been budgeted for 2010-11. It is anticipated introduction will be March to August 2011 and will match experienced senior managers and leaders with employees seeking to broaden their knowledge and skill, and advance their careers.

Developing leadership capabilityPeople and Organisational Development continues to implement strategies that contribute towards identifying desired leadership principles and behaviours. Programs proposed for 2010-11 seek to create a shared vision for managers at all levels, engendering a strong commitment to consistent approaches in leading the organisation. The proposed programs are designed to ensure that employees at lower to mid levels who progress to supervisory positions have the support and skills to enable them to effectively and efficiently carry out their roles. These programs will also build the required skills within our workforce and will, like the scholarship program, provide the DoT with another attraction and retention strategy.

Personal and professional developmentThe Department of Transport has a strongly supported formal Performance Development Review (PDR) process, with 78 per cent of staff completing their PDR in 2009-10. The PDR process provides the opportunity for all employees to discuss job performance and development of key skills and behaviours that drive success and future career development opportunities and needs.

Employee assistanceThe Department of Transport has provided employee assistance through its employee assistance program contract with Centacare. This program was originally agreed to through the former Department for Planning and Infrastructure. A new contract is currently being tendered and negotiated with providers, and is due for commencement on 1 October 2010.

Peer support programThe Department of Transport’s peer support program has continued in 2010 with 14 peer support officers located in the DoT’s regional and metropolitan offices. Officers report low to moderate contact from employees (5-10 contacts per year) regarding a range of personal and professional matters. Training needs are reviewed regularly and the peer support team meets with POD quarterly at face-to-face meetings or via teleconference.

Occupational safety and health injury management performance

MeasureActual Result

2008 - 09 2009 - 09 Target DoT result

Number of fatalities 0 0 0 0

Lost time injury/disease incident rate

0.72 0.560% or 10% reduction

22.2% reduction

Lost time injury/disease severity rate

0.00 0.000% or 10% reduction

0

Percent of injured workers returned to work within 28 weeks

100% 100% N/A N/A

Percentage of managers trained in OSH and IM

15% 58% 50% 43% increase

Workers’ compensation complianceDoT is committed to providing injury management support to all workers who sustain a work-related injury or illness with a focus on safe and early return to meaningful work in accordance with the Workers’ Compensation and Injury Management Act 1981.

The Occupational Health Safety and Wellbeing branch is responsible for the effective coordination and case management of workers’ compensation claims, including early intervention in injury management to help people return to work as soon as practicable.

DoT’s injury management system has been developed so its employees:

• Return to the same position with DoT;

• If this is not possible, return to a new position with DoT; and

• If this is not possible, return to a new position with another organisation.

Workplace behaviour and cultureThe DoT has commenced plans to develop and sustain workplace relationships. The past year has been one of constant change, so the programs seek to promote the new DoT’s purpose and values so everyone contributes to a more positive working environment for all employees.

Corporate induction is compulsory for all new employees and is now also available for seconded employees. The induction program for 2010 aims to give new and seconded employees an understanding of our business, ensuring they understand expected standards of behaviour, and the obligations of working as a public sector employee.

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Employment and industrial relationsDuring 2009-10, four-and-half-hours industrial action leave was taken. The DoT has introduced a number of actions to improve reduction of industrial issues including the creation of a joint consultative committee.

Number of employees by award

Award No. employees % employees

Public Service General Agreement 1,284 99.92%

Salaries and Allowances Special Division 1 0.08%

Total 1,285 100.00%

FTE and headcount as at 30 June 2010

Status At June 30 2009 At June 30 2010

Casual 13 7

Permanent full time 906 959

Permanent part time 153 156

Temporary full time 162 146

Temporary part time 19 17

Total people 1,253 1,285

Total FTE 1,082.1 1,136.4

Office of the Auditor General auditsExternal audits specific to the DoT:

• TRELIS Application Controls - tabled 26 November 2009.

External audits where the DoT was part of the sample of agencies selected:

• Management of Government Purchasing Cards - tabled 11 November 2009.

The recommendations derived from external audit reviews are managed and monitored through the DoT’s Audit Recommendation Management System. Progress reporting on the status of implementation of recommendations occurs on a monthly basis to the corporate executive.

Internal audit reviewsDuring 2009-10, DoT received internal audit services from the Department of Planning’s internal audit function under a service level agreement. This service provided an independent, objective assurance and consulting activity designed to add value and improve the organisation’s operations and business practices.

The internal audit function conducted reviews in accordance with an endorsed internal audit charter and audit program. Key reviews conducted during 2009-10 included:

• Payment of allowances to staff;

• Duplicate payments;

• Time recording and leave management;

• Accommodation lease agreements;

• Various Commonwealth grant acquittals;

• Working with children;

• Fuel Card Subsidy Scheme; and

• VicRoads confidentiality agreement.

The recommendations derived from internal audit reviews are managed and monitored through the DoT’s Audit Recommendation Management System. Progress reporting on the status of implementation of recommendations occurs on a monthly basis to the corporate executive.

Audit and Risk Management CommitteeThe Audit and Risk Management Committee’s primary objective is to improve the credibility and objectivity of the DoT’s accountability processes and governance practices. In 2009-10, the committee was attended by senior representatives from the DoT, and included a representative from the Office of the Auditor General. Progress reporting on the status of implementation of internal and external audit recommendations is tabled at the Audit and Risk Management Committee. The committee met twice in 2009-10.

Risk managementThe DoT maintained a Strategic Risk Register during 2009-10. The Strategic Risk Register identifies a number of risks that have been assessed against the DoT’s risk matrix. The register also details treatment strategies to minimise the rating of each risk. Monitoring of risks and treatment strategies has occurred quarterly through the Audit and Risk Management Committee. Business areas have also developed risk registers applicable to their area of operation as part of the business planning process.

As part of a continuous improvement strategy the DoT adopted Risk Cover’s ’Risk Base’ as a tool to improve the management of risk. The DoT also reviewed and adopted new risk management tables. Two separate databases have been developed. The first database is for all strategic and operational risks and the second database is for occupational health, safety and wellbeing risks.

The DoT also began a comprehensive review of all risks using the new risk management tables.

Freedom of Information During 2009-10 Freedom of Information (FOI) was provided to the DoT by the Department of Planning’s FOI unit. The FOI Coordinator is the designated decision-maker for both departments.

The FOI unit is the initial contact point for members of the public, applicants, third parties, the Office of the Information Commissioner and other public sector agencies for all FOI related matters.

Under the Freedom of Information Act 1992, the agency is required to respond to FOI applications within 45 days of receipt, unless an extension of time is granted. The average time to process applications during 2009-10 was 24 days.

FOI fees and charges The rate of fees and charges are set under the FOI Act. Apart from the application fee for non-personal information, all charges are discretionary. Details of fees and charges are listed below

Personal information about applicant No fee

Application fee (for non-personal information) $30.00

Charge for time taken dealing with the application

$30.00 per hour

Charge for access time supervised by staff $30.00 per hour

Charges for photocopying $30.00 per hour for staff time and 20 cents per copy

Rights of review The FOI Act allows dissatisfied applicants to review a decision made by the DoT. In accordance with Section 40 of the FOI Act, internal review applications should be forwarded in writing to the DoT within 30 days of the date of decision.

Following an internal review, matters remaining in dispute can be submitted to the Office of the Information Commissioner for external review. Such applications must be submitted within 60 days from the date of decision.

No fees or charges apply to internal or external reviews.

FOI statistics for 2009-10 (as at July 2010)

Applications Amount

Total received 60

Internal reviews 5

External reviews Nil

Transferred to another agency 2

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Other Legal Requirements

AdvertisingThe following statement relates to advertising, direct mail and marketing research, as required under section 175 ZE of the Electoral Act 1907.

Advertising $

303 14,267.15

Media On Mars 1,819.00

ASB Marketing P/L 28,640.00

Proton Promotional Advertising 24,245.70

Government agency 76,829.50

Media advertising organisations

Adcorp 211,513.53

Optimum Media Decisions 105,189.22

Direct mail

Direct mail -

Market research organisations

Research Solutions -

Patterson Market Research $43,400.00

Disability Access and Inclusion Plan outcomesOutcome 1: People with disability have the same opportunities as other people to access the services of, and any events organised by, the DoT.

DoT regularly reviews its contracting processes to ensure they comply with the requirements of the Disability Services Act 1993. Contract managers are directed to the DoT’s Disability Access and Inclusion Plan (DAIP) and the Disability Services Commission’s Guide to DAIPs for State Government contract managers (where the DAIP clause is applicable) to ensure they are fully aware of their responsibilities. Tender templates include a prompt for the contract officer to consider if the DAIP clause is appropriate.

All services offered by the Passenger Services business unit are accessible, and all events are conducted in accessible accommodation. Passenger Services regulates the WA Taxi Industry, which includes availability of multi-purpose taxis and the Taxi Users Subsidy Scheme.

All Licensing business unit policies and legislation are reviewed in consideration of the Equal Opportunities Act 1984.

All building infrastructure projects for Licensing are managed through the DoT’s Accommodation Services branch. The branch engages project managers, consultants, architects and contractors via Building Management and Works to design and construct projects in accordance with approved standards.

Outcome 2: People with disability have the same opportunities as other people to access the building and facilities of a public authority.

DoT continues to ensure that access standards (as stated in the Building Code of Australia and other design principles) are provided for in new buildings and in the refurbishment of existing departmental offices with a public interface.

Metropolitan licensing centres provide the following facilities:

• Automatic doors;

• Ground-level entrance access or ramps;

• Parking bays for people with disability;

• Toilets for people with disability; and

• Hydraulic desks for centres with high level customer service counters.

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Outcome 5: People with disability have the same opportunities as other people to make complaints to the DoT.

During the year, customer service standards that reflect the DoT’s corporate values were developed through a consultative process. These standards were communicated to all staff.

An automatic response that acknowledges all incoming email complaints, compliments and feedback was also established.

DoT continually reviews its complaints management processes and accepts complaints and feedback in many different formats including an online feedback form on the DoT’s website, by mail, facsimile or over the counter. Contact numbers are provided for customers with special needs or for those where English is their second language.

Outcome 6: People with disability have the same opportunities as other people to attend and participate in public consultation.

Development of processes and resources for community consultation has been completed. Community engagement is an inclusive process for all individuals. Resources are available on the DoT’s intranet to assist staff in consulting with community members who may have difficulty accessing engagement activities including:

• Commonwealth Disability Strategy – Inclusive Consultation.

• Consulting Citizens – Engaging with Aboriginal Western Australia.

Improvements are continual as new resources are sourced and employees become better educated.

The Taxi Industry Board (TIB) and the TIB Reference Group are advisory bodies for the Minister for Transport and Disability Services, and both have representation from disability organisations.

All meetings and forums organised by the Passenger Services business unit are held at venues that provide equality of access.

Outcome 3: People with disability receive the same level of information from a public authority in a format that will enable them to access the information as readily as other people are able to access it.

DoT’s corporate style guide has been reviewed periodically during 2009-10 to ensure documents published are accessible. Publications and forms produced by the DoT’s Communications branch can be obtained in alternative formats such as audio tape, computer disk, large print and Braille.

The DoT conducts ongoing reviews of its website to ensure it meets accessibility standards. The DoT website is compliant with the Website Governance Framework and has been designed to be accessible to as many users as possible.

An accessibility page on the DoT website (http://www.transport.wa.gov.au/aboutus/19528.asp) outlines and explains the accessibility features throughout the site and also provides guidance on how to use the features. Documents on the website can be made available in an alternative format as requested.

Outcome 4: People with disability receive the same level and quality of service from employees of the DoT as other people receive from the employees of the DoT.

Corporate induction, which is compulsory for all new employees, has a half-day training module entitled Acceptable Workplace Behaviour. This session is specifically designed to ensure that employees are aware of their responsibilities and obligations in regards to discrimination and harassment under the Equal Opportunity Act 1984.

It provides participants with an understanding of equal opportunity law, its application, legal implications and the impact of potentially unlawful behaviour.

During 2009-10 these workshops continued for new employees and they were also extended to all existing metropolitan employees. Almost 1000 employees took part in these workshops.

The course covers definitions of discrimination, victimisation, harassment and bullying, culture and behaviour, individual and organisational roles and responsibilities, and identifying options to deal with inappropriate and potentially unlawful behaviour.

During the year, 40 employees also attended the Leading from the Inside Out course. This course is designed to enhance the leadership skills of senior managers and covers equal opportunity in employment.

An online Disability Access and Inclusion Plan (DAIP) awareness training package was developed and presented to the Coastal Infrastructure business unit management team in November 2009 for dissemination to team members. In addition to the training modules a DAIP fact sheet has been created for staff.

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Requirement 2 - The organisation conducts a recordkeeping training program.

An online recordkeeping awareness training (RAT) course is available to all DoT staff. There are currently 1261 staff enrolled and 1143 (91 percent) have completed the course.

September quarter

December quarter

March quarter June quarter

Number of staff enrolled in records awareness training 1119 1178 1201 1261

Number of staff who completed records awareness training

1042 1077 1111 1143

93% 91% 93% 91%

Requirement 3 - The efficiency and effectiveness of the recordkeeping training program is reviewed from time to time.

The online RAT is mandatory for all employees. Training assessment is integrated into the package and feedback from employees who have completed the course is reviewed and responded to.

For DoT specific information regarding processes, employees are referred to the Intranet. Content is reviewed periodically to ensure it reflects current operational and administrative practices and processes.

A comprehensive training package in the use of the Objective system is available and all new employees must attend 4.5 hours of hands-on training in document management and email management. Follow up assistance is provided by the IT Help Desk and a training and support officer. Quick reference guides are available on the Intranet to assist staff.

Requirement 4 - The organisation’s induction program addresses employee roles and responsibilities in regard to their compliance with the organisation’s recordkeeping plan.

A presentation on recordkeeping is included in the DoT induction program. The presentation advises employees of their roles and responsibilities in creating, managing and maintaining Government records. All new employees are expected to complete the online RAT, which covers roles and responsibilities in regard to recordkeeping and compliance with the recordkeeping plan. There is also a brochure available called Recordkeeping: Your Responsibilities, which is included in a series of information brochures designed to assist staff in dealing with different aspects of recordkeeping. New employees are also required to undertake training in the use of Objective.

Compliance with public sectorstandards and ethical codes DoT is committed to ensuring the highest standards of probity and accountability in all interactions.

During the final quarter of the year, People and Organisational Development (POD) developed a regional and metropolitan training program to support the DoT’s misconduct management framework and the Premier’s requirement that all public sector employees participate in accountable and ethical decision making workshops and attend an agency induction.

These programs aim to reinforce ethical principles through awareness and education initiatives for both new and existing employees.

DoT’s revitalised induction process also highlights the Public Sector Standards and DoT’s code of ethics.

Better recordkeepingDoT is committed to good recordkeeping and to meeting the requirements of the State Records Act 2000. In 2009-10 recordkeeping services were provided through a service level agreement with the Department of Planning.

A draft recordkeeping plan for the DoT was submitted in December 2009 and has been approved by the State Records Commission. The recordkeeping plan adopted legacy recordkeeping policies, procedures and practices from the former DPI. The plan is to be reviewed within two years and a report submitted to the State Records Office by April 2012.

The State Records Commission’s minimum compliance requirements are:

Requirement 1 - The efficiency and effectiveness of the organisation’s recordkeeping systems are evaluated not less than once every five years.

During 2009-10 the DoT achieved its goal of a single enterprise wide electronic document and records management system (EDRMS) with the deployment of Objective to all employees. The Objective EDRMS allows DoT to deal with digital as well as paper records within an integrated environment.

A process of continuous improvement is in place to improve performance and service. Regular training sessions are provided and are available for staff.

0

200

400

600

800

1000

1200

1400

Septquarter

RAT Training

No. enrolled

No. completed

Decquarter

Marchquarter

Junequarter

48 49

Governance disclosure For 2009-10, other than normal contracts of employment of service, no senior officers, or firms of which senior officers are members, or entities in which senior officers have substantial interests, had any interests in existing or proposed contracts with the DoT.

The DoT does not hold director’s liability insurance.

Ministerial directives Treasurer’s Instruction 903(12) requires disclosing information on any Ministerial directives relevant to the setting of desired outcomes or operational objectives, the achievement of desired outcomes or operational objectives, investment activities, and financing activities. The DoT received no Ministerial directives during the period 2009-10.

Information systemsDoT’s new electronic document and records management system is now fully functional, allowing all staff to deal correctly with digital and paper records within an integrated environment. This new platform allows documents to be stored in a manner consistent with the requirements of the State Records Act 2000.

Reconciliation Action Plan Following the restructure of the Department for Planning and Infrastructure (DPI), its Reconciliation Action Plan (RAP) working group continued to function as one group with representation from across the Department of Transport (DoT), Department of Planning (DoP) and the Department of Regional Development and Lands (DRDL).

The first and final annual progress report on the former DPI RAP was submitted to Reconciliation Australia in March 2010. The annual progress report applies to the DoT, DoP and DRDL.

New RAP working groups will be created in 2010-11 to develop a new plan for their respective departments. Outstanding actions from the existing RAP will be carried over into the new RAPs and new actions will be developed.

50 51

Financial Statements

Financial disclosuresPricing policies of services providedDoT reviews its fees and charges annually to reflect, where legally permissible, full cost recovery in the provision of its services pursuant to the DoT’s policy for costing and pricing.

Gazette 50 dated 1 April 2010, Gazette 73 dated 7 May 2010,

Gazette 83 dated 14 May 2010, Gazette 100 dated 4 June 2010,

Gazette 107 dated 18 June 2010, Gazette 126 dated 30 June 2010,

Gazette 127 dated 30 June 2010, and Gazette 128 dated 30 June 2010,

contain variations to the DoT’s fees and charges for the 2009-10 financial year.

Major capital projectsDepartment of Transport 2009-10 Financial Year

Details of major capital projects (TI 903 Section (13) (ii) (a) (b))

(Major is considered as projects over $5m)

Projects remaining uncompleted

Project nameExpected year of completion

Estimated cost to complete

Estimated total cost of project

$’000 $’000

Hillarys Boat Harbour - facility refurbishment 2010-11 29 7,755

Albany waterfront and convention centre 2010-11 4,800 12,800

Maritime facilities programOngoing Program

76,752 87,330

Licensing business unit reformOngoing Program

32,630 45,553

Wyndham port facility upgrade 2011-12 9,829 10,000

52 53

Certification of Financial StatementsFor the year ended 30 June 2010

The accompanying financial statements of the Department of Transport have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2010 and the financial position as at 30 June 2010.

At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.

Peter King Reece WaldockChief Finance Officer Accountable Authority6 September 2010 6 September 2010

Auditor General independent audit opinionTo the Parliament of Western Australia

DEPARTMENT OF TRANSPORT FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS

For the year ended 30 June 2010

I have audited the accounts, financial statements, controls and key performance indicators of the Department of Transport.

The financial statements comprise the Statement of Financial Position as at 30 June 2010, and the Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, Schedule of Income and Expenses by Service, Schedule of Assets and Liabilities by Service, and Summary of Consolidated Account Appropriations and Income Estimates for the year then ended, a summary of significant accounting policies and other explanatory Notes.

The key performance indicators consist of key indicators of effectiveness and efficiency.

Director General’s Responsibility for the Financial Statements and Key Performance Indicators

The Director General is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.

Summary of my Role

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. This document is available on the OAG website under “How We Audit”.

An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.

DEPARTMENT OF TRANSPORT FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS

For the year ended 30 June 2010

Audit Opinion

In my opinion,

(i) the financial statements are based on proper accounts and present fairly the financial position of the Department of Transport at 30 June 2010 and its financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions;

(ii) the controls exercised by the Department provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and

(iii) the key performance indicators of the Department are relevant and appropriate to help users assess the Department’s performance and fairly represent the indicated performance for the year ended 30 June 2010.

COLIN MURPHY

AUDITOR GENERAL

16 September 2010

54 55

Statement of Financial PositionAs at 30 June 2010

2010Note $ 000

ASSETSCurrent AssetsCash and cash equivalents 15 26 663 Restricted cash and cash equivalents 16 43 401 Inventories 17 366 Receivables 18 6 501 Other assets 20 514

77 445

Non-Current AssetsRestricted cash and cash equivalents 16 1 190 Amounts receivable for services 19 107 234 Property, plant, equipment, vehicles and vessels 21 148 497 Infrastructure 22 123 191 Intangible assets 23 15 142 Construction in progress 24 24 021 Total Non-Current Assets 419 275

TOTAL ASSETS 496 720

LIABILITIESCurrent LiabilitiesPayables 26 8 379 Provisions 27 13 550 Other liabilities 28 4 652 Total Current Liabilities 26 581

Non-Current LiabilitiesProvisions 27 6 360 Total Non-Current Liabilities 6 360

TOTAL LIABILITIES 32 941

NET ASSETS 463 779

EQUITY 29Contributed equity 421 295 Reserves 11 364 Accumulated surplus 31 120 TOTAL EQUITY 463 779

See also the Schedule of Assets and Liabilities by Service.

The Statement of Financial Position should be read in conjunction with the accompanying notes.

Statement of Changes in EquityFor the year ended 30 June 2010

Contributed equity Reserves Accumulated

surplus Total equity

$ 000 $ 000 $ 000 $ 000

Balance at 1 July 2009 - - - - Total comprehensive income for the year 11 364 31 120 42 484 Transactions with owners in their capacity as ownersCapital appropriations 9 010 - - 9 010

Other contributions by owners 412 285 - - 412 285

Balance at 30 June 2010 421 295 11 364 31 120 463 779

The Statement of Changes in Equity should be read in conjunction with the accompanying notes

Financial StatementsFor the year ended 30 June 2010

Statement of Comprehensive IncomeFor the year ended 30 June 2010

2010Note $ 000

COST OF SERVICESExpensesEmployee benefits expense 4 87 509 Supplies and services 5 109 244Depreciation and amortisation expense 6 11 506 Accommodation expenses 7 3 657 Grants and subsidies expense 8 63 447 Loss on disposal of non-current assets 13 2 550 Other expenses 9 2 209Total cost of services 280 122

2010

IncomeRevenueUser charges and fees 10 111 458 Sales 888 Grants and subsidies revenue 11 27 918 Interest revenue 1 091 Other revenues 12 29 925 Total revenue 171 280

Total income other than income from State Government 171 280

NET COST OF SERVICES 108 842

INCOME FROM STATE GOVERNMENT 14Service appropriation 133 769 Resources received free of charge 683 Royalties for Regions Fund 5 510 Total income from State Government 139 962

SURPLUS FOR THE PERIOD 31 120

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus 11 364 Total other comprehensive income 11 364

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 42 484

See also the Schedule of Income and Expenses by Service.

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

56 57

Schedule of Income and Expenses by ServiceFor the year ended 30 June 2010

Transport system planning and

regulation

Motor vehicle registration and driver

licensing services Strategic Transport

Policy Integrated

Transport Planning Total

2010 2010 2010 2010 2010

$ 000 $ 000 $ 000 $ 000 $ 000

COST OF SERVICES

Expenses

Employee benefits expenses 20 723 58 692 3 905 4 189 87 509

Supplies and services 38 302 64 170 2 799 3 973 109 244

Depreciation and amortisation expense 6 240 5 027 20 219 11 506

Accommodation expenses 1 242 2 309 26 80 3 657

Grants and subsidies 48 422 13 545 - 1 480 63 447

Loss on disposal of non-current assets 2 550 - - - 2 550

Other expenses from ordinary activities 1 272 809 43 85 2 209

Total cost of services 118 751 144 552 6 793 10 026 280 122

Income

User charges and fees 64 211 47 247 - - 111 458

Sales 814 20 - 54 888

Grants and subsidies 7 175 14 225 - 6 518 27 918

Interest revenues 1 091 - - - 1 091

Other revenues 19 979 9 778 5 163 29 925

Total income other than income from State Government 93 270 71 270 5 6 735 171 280

NET COST OF SERVICES 25 481 73 282 6 788 3 291 108 842

INCOME FROM STATE GOVERNMENT

Service appropriations 28 459 64 455 22 057 18 798 133 769

Resources received free of charge 160 460 30 33 683

Royalties for Region - - - 5 510 5 510

Total income from State Government 28 619 64 915 22 087 24 341 139 962

SURPLUS FOR THE PERIOD 3 138 (8 367) 15 299 21 050 31 120

The Schedule of Income and Expenses by Service should be read in conjunction with the accompanying notes.

Statement of Cash FlowsFor the year ended 30 June 2010

2010Note $ 000

CASH FLOWS FROM STATE GOVERNMENTService appropriation 120 923 Capital appropriations 9 010 Cash transferred from other agencies 47 322 Royalties for Regions Fund 5 510 Net cash provided by State Government 182 765

CASH FLOWS FROM OPERATING ACTIVITIESPaymentsEmployee benefits ( 84 605)Supplies and services ( 96 071)Accommodation ( 3 147)Grants and subsidies ( 62 089)GST payments on purchases ( 15 616)GST payments to taxation authority - Other payments ( 13 641)

ReceiptsSale of goods and services 972 User charges and fees 123 970 Grants and subsidies 27 355 Interest received 1 060 GST receipts on sales 6 044 GST receipts from taxation authority 8 142 Other receipts 15 150 Net cash used in operating activities 30(b) ( 92 476)

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of non-current physical assets 17 Purchase of non-current physical assets ( 19 052)Net cash used in investing activities ( 19 035)

Net increase/ (decrease) in cash and cash equivalents 71 254 Cash and cash equivalents at the beginning of the period - CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 30(a) 71 254

The Statement of Cash Flows should be read in conjunction with the accompanying notes

58 59

Schedule of Assets and Liabilities by ServiceAs at 30 June 2010 (Continued)


regulation



Policy Integrated


2010 2010 2010 2010 2010

$ 000 $ 000 $ 000 $ 000 $ 000

LIABILITIES

Current Liabilities

Payables 5 171 2 835 86 287 8 379

Provisions 3 173 9 123 602 652 13 550

Other current liabilities 4 298 354 - - 4 652

Total Current Liabilities 12 642 12 312 688 939 26 581

Non-Current Liabilities

Provisions 1 490 4 282 282 306 6 360

Total Non-Current Liabilities 1 490 4 282 282 306 6 360

TOTAL LIABILITIES 14 132 16 594 970 1 245 32 941

NET ASSETS 413 978 50 210 ( 135) ( 274) 463 779

The Schedule of Assets and Liabilities by Service should be read in conjunction with the accompanying notes.

Certain assets and liabilities have been excluded as they cannot be allocated to a particular service.

Schedule of Assets and Liabilities by ServiceAs at 30 June 2010


regulation



Policy Integrated


2010 2010 2010 2010 2010

$ 000 $ 000 $ 000 $ 000 $ 000

Current Assets

Cash and cash equivalents 15 025 11 479 76 83 26 663

Restricted cash and cash equivalents 43 401 - - - 43 401

Inventories 46 320 - - 366

Receivables 3 606 2 816 7 72 6 501

Other current assets 74 437 1 2 514

Total Current Assets 62 152 15 052 84 157 77 445

Non-Current Assets

Restricted cash and cash equivalents 279 801 53 57 1 190

Amounts receivable for services 86 025 19 754 698 757 107 234

Property, plant, equipment, vehicles and vessels 139 233 9 264 - - 148 497

Infrastructure 123 191 - - - 123 191

Intangible assets 85 15 057 - - 15 142

Construction in progress 17 145 6 876 - - 24 021

Total Non-Current Assets 365 958 51 752 751 814 419 275

TOTAL ASSETS 428 110 66 804 835 971 496 720

60 61

(b) Basis of preparationThe financial statements have been prepared on the accrual basis of accounting using the historical cost convention, modified by the revaluation of land and buildings which have been measured at fair value.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($ 000).

In the process of reporting the DoT as a single entity, all intra entity transactions and balances have been eliminated.

(c) Reporting entityThe reporting entity comprises the DoT.

Services

Service 1: Transport System Planning and Regulation

Transport system planning and regulation is designed to improve accessibility and safety of the transport system for all Western Australians.

Service 2: Motor vehicle registration and driver licensing services

The Road Traffic Act 1974 confers on the DoT responsibility for licensing the State’s drivers and registering vehicles.

Service 3: Strategic Transport Policy

Strategic Transport Policy contributes to the achievement of the desired Transport outcome, where integrated transport systems facilitate economic development by providing leadership for strategic transport issues.

Service 4: Integrated Transport Planning

Integrated Transport Planning contributes to the achievement of the desired Transport outcome, where integrated transport systems facilitate economic development by developing integrated transport strategy and planning.

The DoT administers assets, liabilities, income and expenses on behalf of Government which are not controlled by, nor integral to the functions of the DoT. These administered balances and transactions are not recognised in the principal financial statements of the DoT but schedules are prepared using the same basis as the financial statements and are presented at note 43 Administered expenses and income and note 44 Administered assets and liabilities.

(d) Contributed equity

AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed Equity.

The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal. See note 29 Equity.

Summary of Consolidated Account Appropriations and Income EstimatesFor the year ended 30 June 2010

2010 2010Estimate Actual Variance

$ 000 $ 000 $ 000DELIVERY OF SERVICESItem 39 Net amount appropriated to deliver services 92 448 133 451 41 003 Amount authorised by other statutes: - Salaries and Allowances Act 1975 317 318 1

Total appropriations provided to deliver services 92 765 133 769 41 004

CAPITALItem 130 Capital contribution 3 396 9 010 5 614

Total capital contribution 3 396 9 010 5 614

GRAND TOTAL 96 161 142 779 46 618

Details of expenses by serviceTransport system planning and regulation 88 508 118 751 30 243 Motor vehicle registration and driver licensing services 146 825 144 552 ( 2 273)Strategic Transport Policy - 6 793 6 793Integrated Transport planning - 10 026 10 026

Total cost of services 235 333 280 122 44 789 Less: Total income 135 278 171 280 36 002

Net cost of services 100 055 108 842 8 787 Adjustments (i) ( 7 290) 24 927 32 217

Total appropriations provided to deliver services 92 765 133 769 41 004

Capital expenditurePurchase of non-current physical assets 709 19 052 18 343 Delivery of Services 6 610 20 658 14 048 Adjustments for other funding sources ( 3 923) ( 30 700) ( 26 777)

Capital appropriations 3 396 9 010 5 614

DETAILS OF INCOME ESTIMATESIncome disclosed as Administered Income 610 866 1 481 539 870 673

(i) Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation.

Note 35 Explanatory Statement provides detail of any significant variations between estimate and actual results 2010.

Notes to the Financial StatementsFor the year ended 30 June 2010

1 Australian Accounting Standards GeneralThe DoT’s financial statements for the year ended 30 June 2010 have been prepared in accordance with Australian Accounting Standards. The term ‘Australian Accounting Standards’ refers to the Standards and interpretation issued by the Australian Accounting Standard Board (AASB).

The DoT has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

Early adoption of standards The DoT cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. No Australian Accounting Standards that have been issued or amended but not operative have been early adopted by the DoT for the annual reporting period ended 30 June 2010.

2 Summary of significant accounting policies(a) General statementThe financial statements constitute general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board as applied by the Treasurer’s instructions. Several of these are modified by the Treasurer’s instructions to vary application, disclosure, format and wording.

The Financial Management Act and the Treasurer’s instructions are legislative provisions governing the preparation of financial statements and take precedence over Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board. Where modification is required and has a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect, are disclosed in the notes to the financial statements.

62 63

(f) Property, plant and equipment and infrastructure

Capitalisation/expensing of assetsItems of property, plant and equipment and infrastructure costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income.

Initial recognition and measurementAll items of property, plant and equipment and infrastructure are initially recognised at cost.

For items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

Subsequent measurementSubsequent to initial recognition as an asset, the revaluation model is used for the measurement of land and buildings, and the cost model for all other property, plant, equipment and infrastructure. Land and buildings are carried at fair value less accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant, equipment and infrastructure are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions.

Where market-based evidence is not available, the fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost.

When buildings are revalued, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period.

The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets.

Refer to note 21 Property, plant, equipment, vehicles and vessels for further information on revaluations.

DerecognitionUpon disposal or derecognition of an item of property, plant and equipment, any revaluation surplus relating to that asset is retained in the asset revaluation surplus.

Asset revaluation surplusThe asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 21 Property, plant, equipment, vehicles and vessels.

DepreciationAll non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits.

Land is not depreciated. Depreciation on other assets is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:

Buildings 40 years

Computer hardware 4 to 7 years

Refurbishments, furniture and fittings 3 to 20 years

Maritime infrastructure 5 to 100 years

Plant and equipment 5 to 20 years

Vehicles 6 years

Vessels 10 years

Assets under construction are not depreciated until commissioned.

(e) Income

Revenue recognitionRevenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:

Sale of goodsRevenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably.

Provision of servicesRevenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.

Revenues are received in the form of various registration, examination and licence fees (including Stamp Duty and Third Party Motor Vehicle Insurance). These revenues are received for services provided including undertaking inspections and/or issuing licences associated with the fees. As no part of these charges is refundable, revenues are recognised at the time they are received.

Revenues collected from traffic and cannabis infringements are administered on behalf of the Western Australian Police and are recognised when the cash is received.

The revenue from other operating activities including rendering of services and the sale of assets are recognised when the DoT has passed control of the goods or other assets or delivery of the service to the customer. Recoups of operating activities are recognised when invoiced.

InterestRevenue is recognised as the interest accrues.

Service appropriationsService appropriations are recognised as revenues at nominal value in the period in which the DoT gains control of the appropriated funds. The DoT gains control of appropriated funds at the time those funds are deposited into the DoT’s bank account or credited to the Amounts receivable for services (holding account) held at Treasury. See note 14 Income from State Government for further detail.

Net appropriation determinationThe Treasurer may make a determination providing for prescribed receipts to be retained for services under the control of the DoT. In accordance with the determination specified in the 2009-10 Budget Statements, the DoT retained $171.2 million in 2010 from the following:

Boat registration fees, Indian Ocean Territories Program, jetty licences, marine examinations, duplicate motor drivers licence fees, motor vehicle transfer fees, motor vehicle plate fees, proof of age card, recoup for services provided, temporary permits, and other revenue.

Grants, donations, gifts and other non-reciprocal contributionsRevenue is recognised at fair value when the DoT obtains control over the assets comprising the contributions usually when cash is received.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Royalties for regions funds are recognised as revenue at fair value in the period in which the DoT obtains control over the funds. The DoT obtains control of the funds at the time the funds are deposited into the DoT’s bank account.

GainsGains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets.

64 65

(k) Financial instrumentsIn addition to cash and cash equivalents, the DoT has two categories of financial instrument:

• Receivables; and

• Financial liabilities measured at amortised cost.

These have been disaggregated into the following classes:

Financial Assets • Cash and cash equivalents

• Restricted cash and cash equivalents

• Receivables

• Amounts receivable for services

Financial Liabilities• Payables

• Amounts due to the Treasurer

Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value. Subsequent measurement is at amortised cost using the effective interest method.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.

(l) Cash and cash equivalents

For the purpose of the Statement of Cash Flows, cash and cash equivalents (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.

(m) Accrued salaries

The accrued salaries suspense account (see note 16 Restricted cash and cash equivalents) consists of amounts paid annually into a suspense account over a period of 10 financial years to largely meet the additional cash outflow in each eleventh year when 27 pay days occur in that year instead of the normal 26. No interest is received on this account.

Accrued salaries (refer note 26 Payables) represent the amount due to staff but unpaid at the end of the financial year, as the pay date for the last pay period for that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The DoT considers the carrying amount of accrued salaries to be equivalent to its net fair value.

(n) Amounts receivable for services (Holding Account)

The DoT receives funding on an accrual basis that recognises the full annual cash and non-cash cost of services. The appropriations are paid partly in cash and partly as an asset (holding account receivable) that is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement.

See also note 14 Income from State Government and note 19 Amounts receivable for services.

(o) Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class of inventory, with the majority being valued on a first in first out basis.

Inventories not held for resale are valued at cost unless they are no longer required, in which case they are valued at net realisable value.

See Note 17 Inventories.

(p) Receivables

Receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the DoT will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days.

See note 2(k) Financial Instruments and note 18 Receivables.

(g) Intangible assets

Capitalisation/expensing of assets

Acquisitions of intangible assets costing $5,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed directly to the Statement of Comprehensive Income.

All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life) on the straight line basis using rates which are reviewed annually. All intangible assets controlled by the DoT have a finite useful life and zero residual value.

The expected useful lives for each class of intangible asset are:

Software not integral to the operation of related hardware 3 to 10 years

Computer software

Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition.

(h) Impairment of assets

Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the DoT is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost of an asset is falling or where there is a significant change in the useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs.

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment.

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

See note 25 Impairment of assets for the outcome of impairment reviews and testing.

See note 2(p) Receivables and note 18 Receivables for impairment of receivables.

(i) Non-current assets (or disposal groups) classified as held for sale

Non-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell and are presented separately from other assets in the Statement of Financial Position. Assets classified as held for sale are not depreciated or amortised.

(j) Leases

The DoT holds operating leases for a number of branch office buildings, motor vehicles and office equipment. Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties.

66 67

(t) Superannuation expense

The superannuation expense in the Statement of Comprehensive Income comprises of employer contributions paid to GSS (concurrent contributions), the West State Superannuation Scheme (WSS), and the GESB Super Scheme (GESBS).

The GSS Scheme is a defined benefit scheme for the purposes of employees and whole-of-Government reporting. However, it is a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the agency to GESB extinguishes the agency’s obligation to the related superannuation liability.

(u) Resources received free of charge or for nominal cost

Resources received free of charge or for nominal cost that can be reliably measured are recognised as income and as assets or expenses as appropriate, at fair value.

Where assets or services are received from another State Government agency, these are separately disclosed under Income from State Government in the Statement of Comprehensive Income.

(v) Jointly controlled assets

Interests in jointly controlled assets have been reported in the financial statements. The DoT’s interest in jointly controlled assets is disclosed in note 39 Jointly controlled assets.

(w) Comparative figures

The Department of Transport was created on 1 July 2009 due to a restructure of the Department for Planning and Infrastructure. As this is the Department’s first year of operation, there are no comparative figures.

3 Disclosure of changes in accounting policy and estimates Initial application of an Australian Accounting Standard

The DoT has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 July 2009 that impacted on the DoT:

AASB 101 Presentation of Financial Statements (September 2007). This Standard has been revised and introduces a number of terminology changes as well as changes to the structure of the Statement of Changes in Equity and the Statement of Comprehensive Income. It is now a requirement that owner changes in equity be presented separately from non-owner changes in equity. There is no financial impact resulting from the application of this revised Standard.

AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101. This Standard changes the term ‘general purpose financial report’ to general purpose financial statements’, where appropriate in Australian Accounting Standards and the Framework to better align with IFRS terminology. There is no financial impact resulting from the application of this Standard.

AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distribution of Non-cash Assets to Owners [AASB 5 & AASB 110]. This Standard amends AASB 5 Non-current Assets Held for Sale and Discontinued Operations in respect of the classification, presentation and measurement of non-current assets held for distribution to owners in their capacity as owners. This may impact on the presentation and classification of Crown land held by the DoT where the Crown land is to be sold by the Department of Regional Development and Lands (formerly Department for Planning and Infrastructure). The DoT does not expect any financial impact when the Standard is first applied prospectively.

AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments AASB 4, AASB 7, AASB 1023 & AASB 1038. This Standard amends AASB 7 and will require enhanced disclosures about fair value measurements and liquidity risk with respect to financial instruments. There is no financial impact resulting from the application of this Standard.

(q) Payables

Payables are recognised at the amounts payable when the DoT becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days.

See note 2(k) Financial Instruments and note 26 Payables.

(r) Amounts due to the TreasurerThe amount due to the Treasurer is in respect of a Treasurer’s Advance. Initial recognition and measurement, and subsequent measurement is at the amount repayable. Although there is no interest charged the amount repayable is equivalent to fair value as the period of the borrowing is less than 12 months with the effect of discounting not being material.

See note 44 Administered Assets and Liabilities.

(s) ProvisionsProvisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period. See note 27 Provisions.

(i) Provisions – employee benefitsAnnual leave and long service leaveThe liability for annual and long service leave expected to be settled within 12 months after the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave expected to be settled more than 12 months after the reporting period is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilities are in respect of services provided by employees up to the end of the reporting period.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service.

The expected future payments are discounted using market yields at the end of the reporting period on Commonwealth Government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

All annual leave and unconditional long service leave provisions are classified as current liabilities as the DoT does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Superannuation

The Government Employees Superannuation Board (GESB) in accordance with the legislative requirements administers public sector superannuation arrangements in Western Australia.

Employees may contribute to the Pension Scheme, a defined benefit pension scheme now closed to new members or the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme also closed to new members.

The DoT has no liabilities under the Pension or the GSS Schemes. The liabilities for the unfunded Pension Scheme and the unfunded GSS Scheme transfer benefits due to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS Scheme obligations are funded by concurrent contributions made by the DoT to the GESB. The concurrently funded part of the GSS Scheme is a defined contribution scheme as these contributions extinguish all liabilities in respect on the concurrently funded GSS Scheme obligations.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension or GSS Schemes became non-contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The DoT makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish the liability for superannuation charges in respect of the WSS and GESBS Schemes.

The GESB makes all benefit payments in respect of the Pension and GSS Schemes, and is recouped from the Treasurer for the employer’s share.

See also note 2 (t) Superannuation expense

(ii) Provisions – other

Employment on-costs

Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses’ and are not included as part of the DoT’s ‘Employee benefits expense’. The related liability is included in ‘Employment on-costs provision’.

See note 9 Other Expenses and note 27 Provisions.

68 69

4 Employee benefits expense2010$ 000

Wages and salaries (i) 67 564Superannuation - defined contribution plans (ii) 6 765 Long service leave (iii) 3 246 Annual leave (iii) 8 162 Other related expenses 1 772

87 509

(i) Includes the value of the fringe benefit to the employee plus fringe benefits tax component.

(ii) Defined contribution plans include West State, Gold State and GESB Super Scheme (contributions paid).

(iii) Includes a superannuation contribution component.

Employment on-costs such as workers’ compensation insurance are included at note 9 Other expenses. The employment on-costs liability is included at note 27 Provisions.

5 Supplies and services2010

$ 000

Communications 6 067

Consultants and contractors 18 071

Consumables 16 313

Commissions 13 278

Repairs and maintenance 9 535

Service level agreement (i) 38 403

Travel 1 396

Other 6 181

109 244(i) Payments to the Department of Planning (DoP) for corporate services under a service level agreement.

6 Depreciation and amortisation expense2010

$ 000

DepreciationBuildings 751 Refurbishments, furniture and fittings 1 273 Plant and equipment 398 Computer hardware 510 Vehicles and vessels 144Infrastructure 4 986 Total depreciation 8 062

AmortisationIntangible assets 3 444 Total amortisation 3 444

Total depreciation and amortisation expense 11 506

7 Accommodation expenses2010

$ 000

Lease rentals 2 742 Cleaning 915

3 657

Future impact of Australian Accounting Standards not yet operative

The DoT cannot early adopt an Australian Accounting Standard unless specifically permitted by Treasurer’s Instruction 1101 Application of Australian Accounting Standards and Other Pronouncement’s. Consequently, the DoT has not applied the following Australian Accounting Standards that have been issued that may impact the DoT. Where applicable, the DoT plans to apply these Australian Accounting Standards from their application date.

Operative for reporting periods

beginning on/after

AASB 2009-11

Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128,

131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12].

The amendment to AASB 7 requires modification to the disclosure of categories of financial assets. The DoT does not expect any financial impact when the Standard is first applied. The disclosure of categories of financial assets in the notes will change.

1 Jan 2013

AASB 1053

Application of Tiers of Australian Accounting Standards

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. The Standard does not have any financial impact on the DoT. However it may affect disclosures in the financial statements of the DoT if the reduced disclosure requirements apply. DTF has not yet determined the application or the potential impact of the new Standard for agencies.

1 July 2013

AASB 2010-2

Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements into these pronouncements for application by certain types of entities. The Standard is not expected to have any financial impact on the DoT. However this Standard may reduce some note disclosures in financial statements of the DoT.

DTF has not yet determined the application or the potential impact of the amendments to these Standards for agencies.

1 July 2013

70 71

12 Other revenues2010$ 000

Commissions 14 041 Rents and leases 8 841 Recoups of operating expenses 6 004 Other 1 039

29 925

13 Net gain/loss on disposal of non-current assets2010$ 000

Plant, equipment, vehicles and vesselsCosts of disposal 2 419 Proceeds from disposal 16 Net gain/(loss) ( 2 403)

InfrastructureCosts of disposal 147 Proceeds from disposal - Net gain/(loss) ( 147)

Total net gain/(loss) ( 2 550)

14 Income from State Government2010$ 000

Appropriation received during the yearService appropriations

133 769

Service appropriations are accrual amounts reflecting the net cost of services delivered. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liabilities during the year.

2010$ 000

Resources received free of chargeDetermined on the basis of the following estimates provided by agencies:Commissioner of Main Roads 7 Department of Treasury and Finance 520 Department of Water 1 Landgate 19 State Solicitor’s Office 136

683

Where assets or services have been received free of charge or for nominal consideration, the DoT recognises revenue (except where the contributions of assets or services are in the nature of contributions by owners, the DoT shall make a direct adjustment to equity) equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have been purchased if they were not donated, and those fair values shall be recognised as assets or expenses, as applicable.

2010

$ 000

Royalties for Regions Fund

Regional Airport Development Scheme 5 510

5 510

This is a sub-fund within the over-arching Royalties for Regions Fund. The recurrent funds are committed to projects and programs in WA regional areas.

15 Cash and cash equivalents2010

$ 000

Cash and cash equivalents 26 663

Includes cash received as capital contributions remaining unspent at year end of $8,811,000

8 Grants and subsidies expense2010

$ 000

Bicycle infrastructure development 2 537

Central Area Transit (CAT) bus services 9 817

Coastal Projects & Zone Management 1 131

Community Police 695

Country pensioner petrol card subsidy scheme 12 769

Fremantle Port Rail Service 2 081

Grain Freight 2 120

Liquid Petroleum Gas Subsidy Scheme 952

Marine Communications 469

Marine Safety 227

National Transport Commission 344

North West Shipping Service 5 830

Pensioner subsidies 1 216

Port management 2 037

Public air transport 1 199

Recreational Boating Facilities 1 064

Regional airport development 7 595

Student subsidies 1 002

Taxi user subsidies 9 324

Other Grants & Subsidies 1 038

63 447

9 Other expenses 2010

$ 000

Employment on-costs (i) 261

Doubtful debts expense ( 286)

Other 2 234

2 209

(i) Includes worker’s compensation insurance and other employment on-costs. The on-costs liability associated with the recognition of annual and long service leave liability is included at note 27 Provisions. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.

10 User charges and fees2010

$ 000

Boat registration fees 11 685

Port charges 1 024

Small boat harbour fees 6 694

Vessel survey fees 2 375

Other maritime fees 1 444

Motor drivers licence application fees 14 955

Motor vehicle transfer, plate and inspection fees 31 591

Perth parking licence fees 29 007

Rail safety registration fees 1 719

Taxi licence fees 9 178

Other fees 1 786

111 458

11 Grants and subsidies revenue2010

$ 000

Commonwealth grants 172

General Government grants 27 201

Other 545

27 918

72 73

21 Property, plant, equipment, vehicles and vessels

2010

Cost/Fair Accumulated Carrying

value depreciation amount

$ 000 $ 000 $ 000

At fair value:

Land 120 504 - 120 504

Buildings 16 540 - 16 540

137 044 - 137 044

At cost:

Refurbishments, furniture and fittings 10 155 2 987 7 168

Plant and equipment 6 613 4 657 1 956

Computer hardware 2 965 1 436 1 529

Vehicles 189 181 8

Vessels 1 556 764 792

21 478 10 025 11 453

Total 158 522 10 025 148 497

Freehold land and buildings were revalued as at 1 July 2009 by the Western Australian Land Information Authority (Valuation Services). The valuations were performed during the year ended 30 June 2010 and recognised at 30 June 2010. In undertaking the revaluation, fair value was determined by reference to market values for land: $13,774,000 and buildings: $6,886,000. For the remaining balance, fair value of land was determined on the basis of current use for land: $106,730,000 and depreciated replacement cost for buildings: $9,654,000 See note 2(f ) Property, plant and equipment and infrastructure.

Reconciliations of the carrying amounts of property, plant, equipment, vehicles and vessels at the beginning and end of the financial year are set out in the table below.

16 Restricted cash and cash equivalents2010

$ 000

Current

Off-Road Vehicles Account (i) 231

Perth Parking Licensing Account (ii) 21 742

Rail Safety Accreditation Account (iii) 1 391

Taxi Industry Development Account (iv) 17 667

Small Craft Facilities - User Pays(v) 2 370

43 401

Non-current

Accrued salaries suspense account (vi) 1 190

Funds held as restricted cash can only be used to:

(i) meet the costs of administering the Control of Vehicles (Off Road Areas) Act 1978 and for matters approved by the Minister and the Treasurer.

(ii) meet the costs of administering the Perth Parking Management Act 1999 or for a purpose connected with the Perth Parking Policy.

(iii) meet the costs of administering the Rail Safety Act 1998.

(iv) pay remuneration and allowances to board members, pay for taxi plates surrendered to the Minister, pay grants for research, promotion and development projects that benefit the taxi industry and meet the costs of administering the Taxi Act 1994.

(v) fund the provision, maintenance, upgrading and management of small craft facilities.

(vi) meet the 27th pay in a financial year that occurs every 11 years.

17 Inventories2010

$ 000

Current

Inventories held for sale

Charts and publications (at cost) 46

Motor vehicle plates (at cost) 320

366

See also note 2(o) Inventories

18 Receivables2010$ 000

CurrentReceivables 5 446 Allowance for impairment of receivables ( 1 118)Goods and services tax receivable 1 840 Interest receivable 333

6 501

Reconciliation of changes in the allowance for impairment of receivables

Balance at start of year - Transferred in from the Department of Planning 1 405Doubtful debts expense recognised in the Statement of Comprehensive Income ( 286)Amounts written off during the year ( 12)Amount recovered during the year 11 Balance at end of year 1 118

The DoT does not hold any collateral as security or other credit enhancements relating to receivables.

See also note 2(p) Receivables and note 36 Financial Instruments

19 Amounts receivable for services2010$ 000

Current - Non-current 107 234

107 234

Represents the non-cash component of service appropriations (see note 2(n) Amounts Receivable for Services (Holding Account)). It is restricted in that it can only be used for asset replacement or payment of leave liability.

20 Other assets2010$ 000

CurrentPrepayments 492 Other current assets 22

514

Carrying amount Transfers at Carrying amount

at start of year 1-Jul-09 Additions Revaluation Disposals Other transfers Depreciation at end of year

2010 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000

Land - 111 583 125 11 199 ( 2 403) - - 120 504

Buildings - 17 232 359 165 - ( 465) ( 751) 16 540

Refurbishments, furniture and fittings - 5 521 2 920 - - - ( 1 273) 7 168

Plant and equipment - 1 596 774 - ( 16) - ( 398) 1 956

Computer hardware - 1 425 614 - - - ( 510) 1 529

Vehicles - 18 - - - - ( 10) 8

Vessels - 846 80 - - - ( 134) 792

- 138 221 4 872 11 364 ( 2 419) ( 465) ( 3 076) 148 497

74 75

25 Impairment of assetsThere were no indications of impairment to property, plant and equipment, infrastructure and intangible assets at 30 June 2010.

The DoT held no goodwill or intangible assets with an indefinite useful life during the end of the reporting period and at the end of the reporting period there were no intangible assets not yet available for use.

26 Payables2010

$ 000

Current

Trade creditors 7 317

Accrued salaries 1 061

8 378

See also note 2(q) Payables and note 36 Financial instruments.

27 Provisions2010

$ 000

Current

Employee benefits provision

Annual leave (i) 7 511

Long service leave (ii) 5 830

13 341

Other provisions

Employment on-costs (iii) 209

13 550

Non-current

Employee benefits provision

Long service leave (ii) 6 260

Other provisions

Employment on-costs (iii) 100

6 360

(i) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

2010

$ 000

Within 12 months of the end of the reporting period 4 074

More than 12 months after the end of the reporting period 3 437

7 511

22 Infrastructure2010

$ 000

At cost 232 348

Accumulated depreciation ( 109 157)

123 191

Reconciliations

Reconciliations of the carrying amounts of infrastructure at the beginning and end of the financial year are set out below.

2010

$ 000

Infrastructure

Carrying amount at the start of the year -

Transfers at 1 July 2009 119 811

Additions 8 048

Disposals ( 147)

Other transfers 465

Depreciation ( 4 986)

Carrying amount at the end of the year 123 191

23 Intangible assets2010

$ 000

At cost 34 334

Accumulated amortisation ( 19 192)

15 142

Reconciliation

Reconciliations of the carrying amount of intangible assets at the beginning and end of the financial year are set out below.

2010

$ 000

Intangible assets



Additions 765

Amortisation expense ( 3 444)


24 Construction in progress2010

$ 000

At cost:

Vessels 85

Computer hardware 1 198

Buildings and refurbishments 809

Intangibles 5 359

Maritime infrastructure 16 570

24 021

Reconciliation

Reconciliations of the carrying amounts of construction in progress at the beginning and end of the financial year are set out below.

2010

$ 000



Expenditure during the year 19 084

Non-current assets commissioned during the year ( 12 359)

Amounts expensed ( 213)


76 77

30 Notes to the Statement of Cash Flows (a) Reconciliation of cash

Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

2010

$ 000

Cash and cash equivalents (i) 26 663

Restricted cash and cash equivalents (ii) 44 591

71 254

Cash transferred (to)/from other sources

Cash and cash equivalents transferred:

from Department of Planning 47 322

47 322

(i) These cash and cash equivalents include $8,811, 000 capital contribution and funds available to meet expenditure commitments.

(ii) See note 16 Restricted cash and cash equivalents.

(b) Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

2010

$ 000

Net cost of services ( 108 842)

Non cash items:

Depreciation and amortisation expense 11 506

Doubtful debts expense ( 286)

Net (gain)/loss on disposal of non-current assets 2 550

Resources received free of charge 683

Expenses previously held in construction in progress 149

Initial recognition of assets not previously recognised ( 125)

(Increase)/decrease in assets

Current inventories 165

Current receivables (iii) ( 1 706)

Other current assets ( 21)

Increase/(decrease) in liabilities

Current payables 3 277

Current provisions 2 912

Other current liabilities ( 369)

Non-current provisions 540

Net GST receipts/payments ( 1 430)

Change in GST in receivables/payables (i) ( 1 479)

Net cash used in operating activities (ii) ( 92 476)

(i) This is the net Goods and Services Tax paid/received, i.e. cash transactions.

(ii) This reverses out the Goods and Services Tax in receivables and payables.

(iii) Note that the Australian Taxation office receivables/payable in respect of GST and the receivable/payable in respect of sale/purchase of non-current assets are not included in these items as they do not form part of the reconciling items.

27 Provisions (continued)(ii) Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

2010

$ 000

Within 12 months of the end of the reporting period 3 664

More than 12 months after the end of the reporting period 8 427

12 091

(iii) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of expected future payments. The associated expense is disclosed in note 9 Other expenses.

Movements in other provisions:

Movements in each class of provisions during the financial year, other than employee benefits, are set out below.

Employment on-cost provisions:

2010

$ 000


Transferred from the Department of Planning on 1 July 2010 372

Additional provisions recognised ( 2)

Payments/other sacrifices of economic benefits ( 61)

Carrying amount at end of year 309

28 Other liabilities2010

$ 000

Current

Income received in advance 4 294

Other payables 350

Other liabilities 8

4 652

29 EquityEquity represents the residual interest in the net assets of the DoT. The Government holds the equity interest in the DoT on behalf of the community. The asset revaluation surplus represents that portion of equity resulting from the revaluation of non-current assets.

Contributed equity

2010

$ 000

Balance at the start of the period -

Contributions by owners

Capital contributions 9 010

Transfer of net assets from the Department of Planning 412 285

Balance at the end of the period 421 295

Reserves

Asset revaluation surplus

2010

$ 000


Net revaluation increments:

Land 11 199

Buildings 165


Accumulated surplus

2010

$ 000


Result for the period 31 120


78 79

(d) Lease revenue commitments

The minimum lease revenue in relation to non-cancellable operating lease rentals contracted for at balance sheet date but not recognised as assets in the financial statements are receivable as follows:

2010

$ 000

Within one year 7 634

Later than one year but not later than five years 26 734

Later than five years 61 673

96 041

33 Contingent liabilities Contingent liabilities

In addition to the liabilities incorporated in the financial statements, the DoT has the following contingent liabilities:

Litigation in progress:

The DoT has pending litigation that may affect the financial position.

- Two actions for compensation against the DoT. The potential maximum financial effect is $230,000.

34 Events occurring after the end of the reporting periodThere are no significant events occurring after the reporting date.

35 Explanatory statementSignificant variations between estimates and actual results for income and expenses as presented in the financial statement titled Summary of Consolidated Account Appropriations and Income Estimates are shown below. Significant variations are considered to be those greater than 10% or $1 million.

(i) Significant variations between estimate and actual for 2010 – Total appropriation to deliver services

(a) Net amount appropriated to deliver services

2010 2010

Estimate Actual Variance

$ 000 $ 000 $ 000

92 448 133 451 41 003

The major variations in funding were:

Additional funding for:

• Section 25 : Transfer of Transport Policy from the Department of Planning 27 824

• Section 25 : Transfer of Coastal Infrastructure from the Department of Planning 8 584

• Esperance Lead and Nickel Clean up 8 530

• The cost of administering the Motor Vehicle Licence recording fee, where cost increased as a result of processing a greater number of transactions associated with increased sales and transfers of vehicles during the period.

3 429

• Reinstatement of Appropriation to reflect reduced advertising revenue from Coastal Infrastructure and Licensing Business Units. In order for the Department of Transport to undertake the proposed advertising, changes needed to be made to the State Trading concerns Act.

2 500

• Voluntary severance payments as approved by Government 1 480

• Section 25 Transfer of Transport Operation Staff from the Department of Planning 437

• Section 25 Transfer of National Transport Commission from the Department of Planning 240

• Increase cost associated with administering the Motor Driver Licensing function 208

Reduction in funding for:

• Rescheduling of Esperance Lead and Nickel Clean up to 2010-11 ( 6 700)

• Rescheduling of Fremantle Port Rail Service to 2010-11 ( 2 100)

• Section 25 : Transfer of Strategic Corporate Support (Information Services) to the Department of Planning ( 1 915)

• Procurement Savings ( 722)

• Reschedule of North West Shipping funding to 2010-11 ( 500)

• Reduction in grant for the Travelsmart Pedestrian Project ( 146)

• Transfer of appropriation to capital works program to fund Minor Works – Esperance Analyser ( 82)

• Fleet Vehicle Savings ( 65)

31 Resources provided free of chargeDuring the year the following resources were provided to other agencies free of charge for functions outside the normal operations of the DoT:

2010

$ 000

Western Australian Police Service - firearms collection fees 55

Various State and Commonwealth departments and agencies:

Spatial (mapping) information 9

Technical advice 87

Advice - waterfront and canal developments 382

533

32 Commitments (a) Capital expenditure commitments

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:

2010

$ 000

Within one year 334

Later than one year but not later than five years -

Later than five years -

334

The capital expenditure commitments include amounts for:

Regional office accommodation 282

Office Refurbishment 52

334

(b) Other expenditure commitments

Other expenditure commitments (including software licences and maintenance) contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:

2010

$ 000

Within one year 450


Later than five years -

2 450

The other expenditure commitments include amounts for:

Quality assurance and compliance 2 450

(c) Non-cancellable operating lease commitments

Commitments in relation to non-cancellable operating lease rentals contracted for at the end of the reporting period but not recognised as liabilities in the financial statements are payable as follows:

2010

$ 000

Within one year 6 431


Later than five years 2 793

21 036

All leases are non-cancellable.

These commitments are all inclusive of GST

80 81

35 Explanatory statement (continued)

(d) Operating revenues

2010 2010


$ 000 $ 000 $ 000

Total income other than from State Government 135 278 171 280 36 002

The variation is primarily due to:

• Section 25 transfer of Coastal Infrastructure function from the Department of Planning 30 098

• Grant from Public Transport Authority for the delivery of Grain Freight Transitional Assistance Program 4 669

• An increase in revenue from Perth Parking License fees as a result of new licence applications as well as an overestimation of the “Small Business” exemption, which enables “Small Business” owners to receive a free license if they have 5 or fewer fee liable bays

1 867

• Recoups from Department of Regional Development and Land for Country Age Fuel Card Scheme approved during 2009-10. 1 725

• Funding from Department Of State Development towards Oakajee Port and Rail Infrastructure Project to meet its project responsibilities.

1 009

• Grant from Western Power (through the Federal Department of Environment, Heritage, Water and the Arts (DEHWA)) for the Living Smart program.

600

These increases are offset by the following:

• Reduction in Motor Vehicle Plate Fee revenue as a result of fewer than anticipated car sales due to the economic downturn ( 2 653)

• An decrease in Motor Drivers’ Licence Application fees was primarily due to a lower than anticipated demand for new driver licences, associated with a slowing in the population growth through migration from eastern states and overseas.

( 1 139)

• Advertising revenue is lower than anticipated. Until the regulation of the State Trading Concerns Act 1916 is amended, the recovery of anticipated revenue will not be achieved.

( 681)

(ii) Significant variances between estimate and actual for 2010 – Capital contribution

2010 2010


$ 000 $ 000 $ 000

Total Capital Contribution 3 396 9 010 5 614

Increase in Capital Contribution is mainly attributable to the following:

• Projects are transferred from Department of Planning under Section 25 in 2009-10

• Albany Waterfront and Convention Centre 7 400

• Hillarys Boat Harbour - Precinct Upgrade 1 320

• Maritime Facilities Program 3 046

• Accommodation and Refurbishment 217

• Minor Works 590

• Office Accommodation - Exmouth 600

• Offset by deferrals of projects to 2010-11:

• LBU Reform ( 2 777)

• Albany Waterfront and Convention Centre ( 2 393)

• Maritime Facilities Program ( 1 430)

• Accommodation and Refurbishment ( 351)

• Office Accommodation - Exmouth ( 600)

35 Explanatory statement (continued)(b) Amount authorised by other statutes

2010 2010


$ 000 $ 000 $ 000

317 318 1

Increase as a result of Salaries and Allowance Tribunal Determination 2010

(i) Significant variations between estimate and actual for 2010 – Total appropriation to deliver services (continued)

(c) Service expenditure 2010 2010Estimate Actual Variance

$ 000 $ 000 $ 000

Transport system planning and regulation 88 508 118 751 30 243

The variation is primarily due to additional expenditure as a result of:• Section 25 Transfer of Coastal Infrastructure function from the

Department of Planning 31 859

• Esperance Lead and Nickel Clean up 3 012• Increase in payments under the Taxi User Subsidy Scheme 2 236• Grain Freight Transitional Assistance Program 964• Living Smart Program 982• Liquefied Petroleum Gas Subsidy 952• Expansion of Regional Services 596• Section 25 Transfer of National Transport Commission function from

the Department of Planning 344

Offset by decreases in expenditure as a result of:• Remapping of expenditure (including corporate overheads) from

Service 1 in 2009-10 to Service 3 during the year ( 4 216)

• Deferral of expenditure for Fremantle Port Rail Service Support to 2010-11 ( 2 403)• Deferral of expenditure for North West Shipping to 2010-11 ( 2 278)• Remapping of expenditure (including corporate overheads) from

Service 1 in 2009-10 to Service 4 during the year ( 1 733)

Motor vehicle registration and driver licensing services 146 825 144 552 ( 2 273)

The variation is primarily due to:• Section 25 Transfer of Transport Executive Licensing Information

System to the Department of Planning. ( 1 915)

• Deferral of Repeat Drink Driver Scheme and Novice Drivers to 2010-11 ( 1 551)• Expansion of Regional Services ( 596)• Delays with the establishment of accessible licensing services to the

Indigenous Community ( 504)

• Government initiated procurement and fleet savings ( 303)• Deferral of Hoons Program to 2010-11 ( 100)

These decreases are offset by:• Increase to Pensioner Fuel Card Subsidy 2 541• Transfer of cost associated with the prosecution function from the

Department of Planning 479

• WA Road Safety Program 169

Strategic Transport Policy - 6 793 6 793

The variation is primarily due to:• Remapping of expenditure (including corporate overheads) from

Service 1 in 2009-10 to Service 3 during the year 4 216• Section 25 Transfer of Coastal Infrastructure function from the

Department of Planning 1 855• Section 25 Transfer of Transport Operation Planners from the

Department of Planning 214

Integrated Transport Planning - 10 026 10 026

The variation is primarily due to:• Section 25 Transfer of Coastal Infrastructure function from the Department of Planning 6 029• Remapping of expenditure (including corporate overheads) from Service 1 in 2009-

10 to Service 4 during the year 1 733

• Section 25 Transfer of Transport Operation Planners from Department of Planning 1 523

82 83

36 Financial instruments(a) Financial risk management objectives and policies

Financial instruments held by the DoT are cash and cash equivalents, restricted cashand cash equivalents, Treasurer’s advances and receivables and payables. The DoT has limited exposure to financial risks. The DoT’s overall risk management program focuses on managing the risks identified below.

Credit risk

Credit risk arises when there is the possibility of the DoT’s receivables defaulting on their contractual obligations resulting in financial loss to the DoT.

The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment, as shown in the table at Note 36(c) Financial instrument disclosures and note 18 Receivables.

Credit risk associated with the DoT’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than Government, the DoT trades only with recognised, creditworthy third parties. The DoT has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the DoT’s exposure to bad debts is minimal. There were no significant concentrations of credit risk at the end of the reporting period.

Allowance for impairment of financial assets is calculated based on objective evidence such as observable data indicating changes in client credit ratings. For financial assets that are either past due or impaired, refer to Note 36(c) Financial instrument disclosures and Note 18 Receivables.

Liquidity risk

Liquidity risk arises when the DoT is unable to meet its financial obligations as they fall due.

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

The DoT has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the DoT’s income or the value of its holdings of financial instruments. The DoT does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes).

Other than as detailed in the interest rate sensitivity analysis table at note 36(c) Financial instrument disclosures. The DoT is not exposed to interest rate risk because apart from minor amounts of restricted cash, all other cash and cash equivalents and restricted cash are non-interest bearing, and have no borrowings other than the Treasurer’s advance (non-interest bearing).

(b) Categories of Financial Instruments

In addition to cash, the carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are as follows

2010

$ 000

Financial Assets

Cash and cash equivalents 26 663

Restricted cash and cash equivalents 44 591

Receivables (i) 4 661

Amounts receivable for services 107 234

Total Financial Assets 183 149

Financial Liabilities

Payables 8 379

Total Financial Liabilities 8 379

(i) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

35 Explanatory statement (continued)(iii) Significant variances between estimate and actual for 2010 – Administered income

2010 2010


$ 000 $ 000 $ 000

Administered income 610 866 1 481 539 870 673

The significant items comprising the variance were:

- Items not reflected in Budget Statements for Department of Transport:

• Third party insurance surcharge collected on behalf of Insurance Commission WA 509 343

• Stamp Duty on motor vehicle registrations, budgeted for by the Department of Treasury and Finance (DTF), where collections are made through licensing centres and transferred to DTF.

331 008

- Other Variances

• Increase in Motor Vehicle Licence Fees is due to growth in the number of registered vehicles, combined with increases of fees for light vehicles and higher rates for heavy vehicles.

28 924

• Increase to Motor Drivers Licence renewals is primarily due to Motor Drivers Licence renewals being dependent upon the time period chosen at the last renewal. Motor Driver Licence Fees are cyclical in nature and the number of driver licences issued in this period has increased.

7 008

• The increase in revenue from Motor Vehicle Recording Fee is attributable to the increase in the growth in the number of motor vehicles

2 008

• Collection of Interstate Licence Fees and Maritime Fees at Licensing Centres were not included in budget papers 1 709

• Lower than expected revenue from Speed and Red Light Traffic Infringement Fines. ( 9 874)

(iv) Authorisations to expend in advance of appropriation

Authorisation has been given to expend $4.352 million advance of appropriation. This comprises of the following expenditures:

• Esperance Lead and Nickel Clean up 8 530

• Cost of administering the collection of Motor Driver Licence fees and Recording fees 3 637

• Reinstatement of Appropriation to reflect reduced advertising revenue from Coastal Infrastructure and Licensing Business Units. 2 500

• Deferral of Esperance Clean up to 2010-11 ( 6 700)

• Deferral of Fremantle Port Rail Service to 2010-11 ( 2 100)

• Procurement Savings ( 722)

• Deferral of North West Shipping funding to 2010-11 ( 500)

• Reduction in grant for Travelsmart Pedestrian Project ( 146)

• Transfer of appropriation to capital to fund Minor Works – Esperance Analyser ( 82)

• Fleet Vehicle Savings ( 65)

84 85

36 Financial instruments (continued)(c) Financial instrument disclosures (continued)

Liquidity Risk

The following table details the contractual maturity analysis for financial liabilities. The contractual maturity amounts are representative of the undiscounted amounts at the end of the reporting period. The table includes both interest and principal cash flows. An adjustment has been made where material.

Interest rate exposures and maturity analysis of financial liabilities

Interest rate exposure Maturity datesWeighted Average Effective

Interest Rate

Carrying Amount

Variable Interest Rate

Non Interest Bearing

Adjustment for

Discounting

Total Nominal Amount

Up to 3 months 3-12 months 1-2

years2-5

yearsMore

than 5 years

% $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000

Financial liabilities 2010

Payables 8 379 - 8 379 - - - - - - -

8 379 - 8 379 - - - - - - -

The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.

36 Financial instruments (continued)(c) Financial instrument disclosures

Credit Risk and Interest Rate Risk Exposures

The following table disclose the DoT’s maximum exposure to credit risk, interest rate exposures and the ageing analysis of financial assets. The DoT’s maximum exposure to credit risk at the end of the reporting period is the carrying amount of the financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the DoT.

The DoT does not hold any collateral as security or other credit enhancement relating to the financial assets it holds.

The DoT does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.

Interest rate exposures and ageing analysis of financial assets

(i) The amount of receivables excludes GST recoverable from the Australian Taxation Office (statutory receivable).

Interest rate exposure Past due but not impairedWeighted Average Effective

Interest Rate

Carrying Amount

Variable Interest Rate

Non Interest Bearing

Up to 3 months 3-12 months 1-2

years2-5

yearsMore

than 5 yearsImpaired Financial

Assets

% $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000

Financial assets 2010

Cash and cash equivalents 4.0 26 663 11 877 14 786 - - - - - -

Restricted cash and cash equivalents 4.0 44 591 20 037 24 554 - - - - - -

Receivables (i) 4 661 - 4 661 388 363 78 6 - -

Amounts receivable for services 107 234 - 107 234 - - - - - -

183 149 31 914 151 235 388 363 78 6 - -

86 87

40 Special purpose accounts Deposits

2010

$ 000

Balance at the start of the year 1 614

Receipts:

Deposits - Keys 13

Deposits - Bonds 304

Deposits – Motor vehicle dealer plates 6

Deposits - Multi Purpose Taxi plates 3

Interest 28

354

Payments:

Refunds - Keys ( 5)

Refunds - Bonds ( 86)

Refunds - Multi Purpose Taxi plates ( 65)

( 156)

Balance at the end of the year 1 812

This Account holds deposits for the issue of keys to boat owners to access the harbour pens, performance bonds, motor vehicle dealer plates and Multi Purpose Taxi Plate deposits. These monies are held in a private trustee capacity, and in accordance with Treasurer’s Instruction 1101A Financial Reporting by Departments are only reported in these notes to the financial statements.

Off-Road Vehicles Account

2010

$ 000

Balance at the start of the year 235

Receipts:

Licence and plate fees 34

Payments:

Grants and subsidies ( 38)

Balance at the end of the year 231

This Account holds monies collected for the registration of vehicles under the Control of Vehicles (Off-road areas) Act and to provide funds to meet the expenses of the DoTin connection with administration of the Act pursuant to section 43(2) of the Act.

36 Financial instruments (continued)Interest rate sensitivity analysis

The following table represents a summary of the interest rate sensitivity of the DoT’s financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 1% change in interest rates. It is assumed that the change in interest rates is held constant throughout the reporting period.

Carrying -100 basis points +100 basis points

amount Surplus Equity Surplus Equity

$ 000 $ 000 $ 000 $ 000 $ 000

Financial assets 2010Cash assets 11 877 (119) (119) 119 119

Restricted cash assets 20 037 (200) (200) 200 200

31 914 (319) (319) 319 319

Fair values

All financial assets and liabilities recognised in the Statement of Financial Position, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

37 Remuneration of senior officersThe number of senior officers, whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:

2010$ No. $ 000

140 001 - 150 000 2 150 001 - 160 000 - 160 001 - 170 000 1 170 001 - 260 000 - 260 001 - 270 000 1 450 001 - 460 000 1

The total remuneration of senior officers is 1 168

The total remuneration includes the superannuation expense incurred by the DoT in respect of senior officers.

No senior officers are members of the Pension Scheme.

38 Remuneration of auditorRemuneration payable to the Auditor General in respect of the audit for the current financial year is as follows:

Auditing the accounts, financial statements and performance

indicators 140 000

The expense is included at Note 9 Other expenses.

39 Jointly controlled assetsThe following represents the DoT’s 50 per cent ownership interest in the Marine Operations Centre with the Department of Fisheries. The jointly controlled assets are included in the financial statements.

Non current assets

Property, plant, equipment, vehicles and vessels 3 139

Infrastructure 167

Total assets 3 306

88 89

40 Special purpose accounts (continued)Small Craft Facilities

2010

$ 000


Receipts:

Boat harbour fees 3 838

Other fees 2

Rental 7 280

Recoups 3 216

Funds for dredging 10 058

Other revenue 4 788

29 182

Payments:

Employment costs ( 656)

Contractors ( 2 742)

Administration expenses ( 703)

Recreational boat scheme ( 14 722)

Maintenance ( 7 206)

Power, water and sewerage ( 3 431)

Other operating expenses ( 1 133)

( 30 593)


This account holds funds for the purpose of funding the provision, maintenance, upgrading and management of small craft facilities.

Taxi Fare Evasion Recoupment Account

2010

$ 000

Balance at the start of the year -

Receipts:

Deposits 4

Payments:

Refunds ( 4)

Balance at the end of the year -

The purpose of this Account is to reimburse taxi drivers with monies collected from passengers who failed to pay their fare.

40 Special purpose accounts (continued)Perth Parking Licensing Account

2010

$ 000


Receipts:

Licence and plate fees 29 007

Payments:

Public Transport Authority ( 9 038)

Employee costs ( 165)

Supplies and services ( 235)

( 9 438)


This Account was established to hold funds for the purpose of administering the Perth Parking Management Act 1999.

Rail Heritage

2010

$ 000

Balance at the start of the year 2

Receipts: -

Payments: -


This account holds funds from the sale of property transferred from Westrail to the Australian Historical Society

Rail Safety Accreditation Account

2010

$ 000


Receipts:

Registration fees 1 719

Recoups and other receipts 42

1 761

Payments:

Employee costs ( 1 024)

Superannuation ( 92)

Contractors ( 33)

Lease and rental ( 30)

Other payments ( 414)

( 1 593)


This Account was established to hold funds for the purpose of administering the Rail Safety Act 1998.

90 91

42 Indian Ocean Territories Service Level AgreementThe provision of services to the Indian Ocean territories are recouped from the Commonwealth Government.

2010$ 000

Balance at the start of the year -

Receipts 94Payments ( 88)


43 Administered expenses and incomeExpenses Transport system planning

and regulationMotor vehicle registration

and driver licensing services Strategic Transport Policy Integrated Transport Planning Total

2010 2010 2010 2010 2010$ 000 $ 000 $ 000 $ 000 $ 000

Other expenses - 827 - - 827Total administered expenses - 827 - - 827

Revenues

For transfer to the Consolidated Account or AgenciesConservancy 281 - - - 281Infringements

Cannabis infringement fines - 71 - - 71 Plate and transfer infringements - 6 148 - - 6 148 Speed and red light infringement fines - 61 499 - - 61 499 Final demand fees - traffic infringements - 1 212 - - 1 212

Dealer Plates - 230 - - 230Motor drivers’ licences - 39 445 - - 39 445Motor vehicle registrations

Motor vehicle registrations - 484 203 - - 484 203 Recording fees - 43 072 - - 43 072 Stamp duty - 331 008 - - 331 008 Third party motor vehicle insurance premiums - 509 343 - - 509 343

Collection of interstate licensing fees - 1 732 - - 1 732 Firearm licence fees - 3 295 - - 3 295

Total administered revenues 281 1 481 258 - - 1 481 539

40 Special purpose accounts (continued)Taxi Industry Development Account

2010

$ 000


Receipts:

Licence fees 6 909

Interest 526

Other revenue 1 562

8 997

Payments:

Consultants’ fees ( 1 133)

Other expenses ( 3 262)

( 4 395)


The purpose of this Account is to hold funds received by the DoT for the purposes of the Taxi Act 1994.

Receipts in suspense

2010$ 000


Receipts credited to suspense account 9 353

Receipts transferred from suspense account ( 8 542)


Pursuant to section 26 (2) of the Financial Management Act, the purpose of this Account is to hold funds pending identification of the purpose for which these monies were received.

41 Supplementary financial information

Write-offs

During the financial year, assets valued at $11,816 were written off the DoT’s asset register under the authority of:

2010

$ 000

The Accountable Authority 12 Losses through theft, defaults and other causes

The DoT suffered no losses of public money or other property through theft, defaults or other causes during the current financial period.

92 93

44 Administered assets and liabilities2010

$ 000

Current assets

Cash 11 615

Accounts receivable (i) 1 541

Total current assets 13 156

Total administered assets 13 156

Current liabilities

Treasurer’s Advance 2 000

Creditors 3 477

Accruals and interest payable 3 835

Income received in advance 13

Total current liabilities 9 325

Total administered liabilities 9 325

(i) Notes to the Schedules of Administered Items – Accounts receivable

2010

$ 000

Current

Receivables 16 610

Allowance for impairment of receivables ( 15 069)

1 541

Contingent liabilities

There were no contingent liabilities in relation to the Administered assets and liabilities schedule as at 30 June 2010.

Key Performance Indicators

94 95

The transport function is integral to business and commerce, and important for social interaction and connecting communities. DoT’s key focus is on strategic transport policy and planning, regulation, and operational transport functions across the range of public and commercial transport systems that service Western Australia. With more than 1200 employees, and together with its portfolio partners, DoT has the expertise to deliver high quality and integrated transport policy and plans that connect a complex, inter-related economic and social network. DoT connects people with goods and services through an intricate system of roads, railways, airports, ports and waterways, and educates and regulates to keep people safe within those networks.

Approved changes to DoT’s outcome structure have been negotiated for the 2010-11 financial year and appear in the 2010-11 budget papers. Some of these changes have been included for the 2009-10 year annual report to address the final split of the Department for Planning and Infrastructure (DPI) into three new departments including DoT. New key performance indicators (KPIs) being introduced in 2010-11 will better align to the DoT outcomes by providing more relevant assessments, such as accessibility to taxis, through measuring the taxi jobs not covered and the percentage of times acceptable industry waiting times are met. KPIs that are no longer considered relevant to the business will also be removed from the outcome structure from 2010-11 onwards. Where required, notes relating to the changes and disclosing the rationale for each have been included in this section.

The breadth and diversity of DoT’s functions and services means that DoT contributes to many of the Government’s strategic goals, with the most significant contributions outlined below.

Government goalsDepartmental desired outcomes

Departmental services

Outcomes Based Service Delivery


1. An accessible and safe transport system

1. Transport system and services development, planning, operation and regulation.

2. Vehicles and road users that meet established vehicle standards and driver competencies.

2. Motor vehicle and driver licensing services.

State Building – Major Projects


3. Integrated transport systems that facilitate economic development.

3. Strategic transport policy.

4. Integrated transport planning.

Key performance indicatorsCertification of key performance indicatorsFor the year ended 30 June 2010

I hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Department of Transport’s performance, and fairly represent the performance of the Department of Transport for the financial year ended 30 June 2010.

Reece WaldockAccountable Authority 6 September 2010

96 97

Effectiveness indicator: Percentage of Taxi Users Subsidy Scheme (TUSS) applications rejected contrary to the entitlement guidelines.

DoT administers the TUSS on behalf of Government. The scheme’s objective is to allow people with disability who are unable to use public bus transport access to taxis. The scheme subsidises travel by taxi for eligible members through provision of a 75 per cent subsidy for people travelling in or with a wheelchair to a maximum of $35 per trip, and 50 per cent for others to a maximum of $25 per trip. There is no restriction on the number of trips that TUSS members can take under the scheme.

TUSS is governed by eligibility criteria that restrict membership to people with severe mobility disability, severe vision disability (legal blindness) and/or severe cognitive or intellectual disability.

The figures for this measure are obtained from the regular audit of all rejected applications. Where the audit reveals that people have been rejected contrary to the entitlement guidelines it may indicate that access to transport for people with disability is being compromised.

A daily review of rejected applications is undertaken and any queries reassessed against the entitlement guidelines. The total number of applications found to be rejected contrary to the entitlement guidelines are divided by the total number of applications that have been found ineligible for the scheme. The resulting figure is expressed as a percentage.

The method used to determine the number of applications rejected contrary to the guidelines is to audit all applications that have been rejected by the assessor. This then provides a confidence level of 100 per cent and a confidence interval of zero that applications are not being rejected contrary to the guidelines.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual

Reasons for significant

variance

Percentage of Taxi Users Subsidy Scheme (TUSS) applications rejected contrary to the entitlement guidelines.

2.5% 1.64% 1.08% 0% 0%

Department level desired outcome 1: An accessible and safe transport systemDoT’s responsibility for the accessibility and safety of the transport system derives from the Transport Co-ordination Act 1966. The Act confers on DoT the responsibility for co-ordinating and planning the transport system and enabling accessibility and safety considerations. Additionally, DoT is responsible for administering several pieces of legislation that regulate usage of the maritime, aviation, road and rail systems, enabling safety and accessibility conditions to be imposed on users for administering several grants and subsidies to facilitate transport access to relevant recipients and assist with the provision of various transport services.

There are varying degrees of accessibility and safety across the agency for the different modes of transport. For example, the Marine Safety business unit provides regulation, training and monitoring in regards to safety of marine vessels, whereas accessibility to marine related infrastructure and waterways is the responsibility of the Coastal Infrastructure business unit.

Rail safety is managed by the Office of Rail Safety, which is charged with administering the Rail Safety Act 2010 in Western Australia and nationally as part of a national approach to rail safety regulation. It does this by ensuring railway owners and operators comply with regulatory standards to construct, operate and maintain railways. Accessibility to railways is the responsibility of the owners and operators.

The Passenger Services business unit ensures an adequate taxi service is being provided to the public of Western Australia. Financial assistance for people with disability is also provided through the Taxi Users Subsidy Scheme to facilitate access to taxi services. Safety in taxis for vehicles and drivers is the responsibility of the Licensing business unit in administering the Road Traffic Act 1974 and is covered under Outcome 2 of the DoT’s outcome structure: “Vehicles and road users that meet established vehicle standards and driver competencies”. The Western Australia Police monitors safety for taxi operators and passengers not related to use on the road in its community safety role.

Accessibility to regular public transport air services is the responsibility of the Regional Passenger Transport and Aviation Policy section of the Transport Policy and Systems directorate, which ensures an adequate air service is provided to key regional communities throughout the State. Aviation safety is controlled through the Commonwealth Government’s Civil Aviation Safety Authority (CASA). DoT ensures all aircraft that carry passengers for regular public transport or charter purposes within Western Australia are licensed annually.

98 99

Percentage of regional airports receiving regular public transport air services Note: Approved as a new KPI for 2010-11 - Following the split of the DPI and the formation of DoT on 1 July 2009, the roles and functions of transport policy and planning within DoT have been further defined resulting in the transfer of additional resources from DoP to DoT

DoT provides advice on a range of aviation issues, provides grants to support the development of airport infrastructure through the Regional Airports Development Scheme and regulates intrastate air services to ensure that key Western Australian regional communities receive sustainable regular public transport (RPT) air services.

Under the Transport Co-ordination Act 1966, all aircraft that carry passengers for regular public transport or charter purposes within Western Australia are required to be licensed annually. In addition, the Minister has powers to apply conditions to aircraft licences to determine where they may fly in Western Australia. Where there are insufficient passenger numbers to support competition to a key regional centre, the Western Australia Government protects the service by offering it, through a public tender process, to only one airline service.

The objective of the Act is to ensure that no Western Australian community with a population of more than 500 is more than 250 kilometres from an airport, unless the community has access to another form of public transport. The airport must provide at least two RPT services per week and be accessible by a safe road.

Currently, of the 25 key regional centres receiving scheduled RPT air services, nine are open to competition and 16 are protected through various arrangements with or without a Government subsidy.

To ensure that charter operations do not undermine the RPT service, charter operators are limited by a condition on their aircraft licence to providing one return flight per client per week to an RPT airport. The Minister’s approval is required to provide additional services.

The licensing arrangements and contracts for the protected and subsidised services are monitored through monthly statistics and meetings with the airlines to ensure that the outcome of the regional centres having a sustainable RPT service is achieved.

A reduction in the percentage of key regional centres being serviced by RPT air services or other forms of public transport would indicate that services to remote communities are not being maintained.

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Percentage of regional airports receiving (RPT) air services.

100% 100% 100% 96%

RPT air services to Ravensthorpe ceased in June 2009 when a major mine closed.

Percentage of time maritime Infrastructure is fit for purpose when requiredNote: Approved as a new KPI for 2010-11 – With the split of the DPI on 1 July 2009, the Coastal Infrastructure business unit was initially intended to be a part of the Department of Planning. The decision to transfer the Coastal Infrastructure function to DoT was made after the budget publication to Parliament on 14 May 2009.

DoT is responsible for the planning, creation, enhancement and management of new and existing land and water based maritime facilities for small craft throughout Western Australia.

DoT manages and maintains a variety of maritime infrastructure assets, including jetties, wharves, boat-launching facilities, pens and moorings at approximately 50 separate locations throughout the State, to service the fishing and commercial maritime industries and the recreational boating needs of Western Australians.

DoT also maintains associated navigational aids, which are strategically placed in water and onshore to ensure that the boating community can safely transit through waterways. It also maintains the navigable waters at its managed maritime facilities as well as at a small number of other locations, including two commercial ports, throughout the State by providing access via dredged channels.

The facilities and their purpose vary for each location and the associated management and maintenance plans vary accordingly.

The outcome of this indicator is measured by determining the percentage of time each of the four infrastructure categories (1. pens and moorings, 2. jetties and other infrastructure, 3. navigational aids, and 4. dredged channels) is ’fit for purpose when required’, then calculating the average percentage across all four to arrive at the measure.

A consistently high percentage of availability will confirm that maritime infrastructure is being appropriately maintained and is accessible to the boating industries and the public of Western Australia.

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Percentage of time maritime infrastructure is fit for purpose when required.

98.77% 99.65% 99.92% 99.87%

100 101

Rate of reported incidents (accidents) on the water per 10,000 registered recreational vessels.Western Australia’s temperate climate and unique marine environment entice an estimated 250,000 people to make recreational use of the State’s waterways each year.

DoT takes a lead role in ensuring the safety of the State’s mariners through:

• Setting standards for recreational vessels and registering only those that meet legislative requirements;

• Requiring recreational mariners to meet basic safety competencies through the Recreational Skipper’s Tickets (compulsory from 1 April 2008);

• Maintaining marine charts and signs to promote safe navigation and warn of hazards;

• Responding to oil spills and other pollutants;

• Maintaining navigational aids; and

• Educating and informing mariners on marine safety matters.

Under the Navigable Waters Regulations 1958, all vessels that have a motor, or have the capacity to have a motor fitted, must be registered to operate in Western Australian navigable waters. It is also a requirement under the Western Australian Marine Act 1982 for people to report any accident or incident that results in serious injury or death, or the vessel being damaged enough to make it un-seaworthy or unsafe.

The data for this indicator is taken from the DoT’s recreational vessel registration database and the marine incidents database, and is calculated by dividing the number of incidents by the number of registered recreational vessels (expressed as a rate per 10,000 vessels).

A reduction in the rate of incidents per registered recreational vessel indicates that the safety outcome is being met in relation to recreational boating.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Rate of reported incidents (accidents) on the water per 10,000 registered recreational vessels.

10.00 9.05 9.46 9.00 9.51

Rate of reported incidents (accidents) on the water per 100 commercial vessels surveyed under the Western Australian Marine Act 1982All commercial vessels in Western Australia are subject to survey to ensure that they meet minimum standards for construction and equipment safety before they may begin to operate, and are surveyed annually to ensure safety and maintenance standards are upheld. (This excludes vessels certified as Class 4 hire and drive vessels).

As with recreational mariners, under the Western Australian Marine Act 1982 all accidents or incidents that result in serious injury or death, or cause damage to the vessel rendering it un-seaworthy or unsafe, must be reported. As mentioned above, for a commercial vessel to continue to operate it must hold a current certificate of survey to show that it meets national and international maritime standards.

The information for this indicator is derived from the DoT’s commercial vessel database and the marine incidents database, and is calculated by dividing the number of incidents by the number of commercial vessels holding current survey certificates (expressed as a rate per 100 vessels).

A reduction in the rate of incidents per commercial vessel indicates that the safety outcome is being met in relation to commercial activities.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual

Reasons for significant variance

Rate of reported incidents (accidents) on the water per 100 commercial vessels surveyed under the Western Australian Marine Act 1982.

5.40 5.15 3.26 4.00 5.11

Commercial vessel activity decreased substantially during the economic downturn in 2008-09 and the rate of incidents/accidents also decreased. During 2009-10 activity levels returned to normal and the rate of incidents/accidents has reflected this.

102 103

Efficiency key performance indicatorsService 1: Transport system and services development, planning, operation and regulation

Transport system and services development, planning, operation and regulation are designed to improve accessibility and safety of the transport system for all Western Australians.

This service contributes to the Government’s Framework for Strategic Management Goal – Outcomes Based Service Delivery through:

1 Transport system and services development and planning:

• Integration between and within transport modes;

• Managing heavy vehicle freight movement to major industrial and intermodal sites;

• Increasing accessibility to a reasonable level of transport services for all individuals, businesses and communities; and

• Encouraging sustainable choices through programs, such as TravelSmart and cycling promotions.

2 Transport operation and regulation:

• Provision and management of infrastructure, including small craft facilities and marine navigation aids, to maintain safe and accessible transport operations;

• Setting competencies and standards, and monitoring compliance for operators, vehicles and vessels in the taxi, omnibus and maritime industries;

• Developing policies, standards and guidelines for rail safety regulation, accrediting rail owners and rail operators in accordance with relevant standards, and ensuring rail owners and operators comply with the terms of their accreditation;

• Developing and implementing policies and strategies to facilitate safe navigation and safe use of the waters of the State;

• Maintaining effective contingency response strategies and mechanisms to combat marine transport emergencies and marine environmental pollution incidents;

• Safe jetties through licensing;

• Marine and transport related data collection, analysis and dissemination; and

• Provision of cartographic information services.

The key efficiency performance indicators used to measure this performance are:

Key efficiency indicators

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Average Administrative cost per taxi user subsidy processed.

$1.11 $1.02 $1.15 $1.06 $1.09


2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


Average cost per day per maritime infrastructure asset managed.

$61.17 $63.24 $65.87 $69.61

Note: previous wording ‘Average cost per vessel accommodated’ – Approved as a new KPI for 2010-11. With the split of the DPI on 1 July 2009, the Coastal Infrastructure business unit was initially intended to be a part of the Department of Planning. As there is no reference to the Coastal Infrastructure business unit or this KPI in the DoT budget papers the internal budget has been used as the target.

Rate of serious rail accidents per million train kilometres Through administration of the Rail Safety Act 1998 DoT is responsible for promoting safety of the rail transport system. In this regulatory scheme, where railway managers are accountable for rail safety, DoT accredits railway owners and operators to construct, operate and maintain railways where they have met requirements in the Act including:

• Demonstrating the competence and capacity to meet the requirements of Australian Standard AS4292 Railway Safety Management, Part 1: General and interstate requirements;

• Having a comprehensive safety management plan that identifies significant potential safety risks; and

• An appropriate system to address those risks.

DoT monitors performance of accredited railways to ensure they are complying with the terms of their accreditation and their approved safety management system, and to achieve continuous development and improvement in railway safety.

A ‘serious’ incident is one consistent with a Category A ‘notifiable occurrence’ as set out in the Rail Safety Regulations 1999:

• An accident or incident involving the death of a person;

• An accident or incident involving serious personal injury to a person (including a passenger, other member of the public, railway employee or trespasser) that results in admission to hospital;

• A derailment of a train or rolling stock on a running line; and

• A collision, including:

• A collision between trains, other rolling stock, vehicles or obstructions or buffer stops on running lines (including a collision as a result of a vehicle loading irregularity or an unsecured door);

• A collision involving a train with either a road vehicle or a person at a level crossing, including a pedestrian crossing;

• Fire affecting rail infrastructure or rolling stock that endangers, or could endanger, the safe operation of a railway; and

• An explosion affecting rail infrastructure or rolling stock.

A train kilometre is the distance travelled by a train over one kilometre of track.

The measure is calculated by dividing the total number of Category A occurrences by the total number of train kilometres travelled (expressed in millions) managed by accredited operators in Western Australia.

A reduction in the number of occurrences indicates that the safety outcome is being met on rail transport and provides users with reasonable confidence that the rail system they use is safe.

The result is economic growth and development through the promotion of rail as a safe passenger and freight carrier connecting commuters and goods to the desired destination for business or personal purposes. Social and economic benefits are also accrued through avoiding the high costs associated with rail accidents.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Rate of serious rail accidents per million train kilometres.

3.36 4.23 3.90 4.00 4.05

104 105


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Cost to maintain marine pollution response preparedness per registered vessel.

$51.10 $48.01 $35.40 $46.24 $34.96

In 2009-10 the training schedule, which forms a large part of the pollution preparedness cost, was interrupted on a number of occasions, due to staff being involved in actual disaster activity. The most notable being the 90 days involvement with the Montara spill and the Pacific Adventurer in Queensland.


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Average cost per household contacted under the ‘TravelSmart’ scheme.

$82.19 $105.98 $219.47 $102.85 $204.21

The scope of the TravelSmart program changed during 2009/10 to include the Living Smart program. The target for 09/10 was calculated using the TravelSmart funding only.

A decision to transfer the Coastal Infrastructure function to DoT was made after the budget publication to Parliament on 14 May 2009. The key performance indicator of efficiency for this function was previously entitled ‘Average cost per vessel accommodated’, and the unit used to measure this KPI was the average number of vessels using the DoT’s infrastructure averaged throughout the year.

Following the formation of DoT and a review of DoT’s outcome structure and KPIs, this indicator was reworded to better reflect the true intention of the indicator. The dollar base for this indicator has not changed and measures the total maritime infrastructure asset costs. As DoT is responsible for the planning, creation, enhancement and management of new and existing land and water based maritime facilities for small craft throughout Western Australia, the number of maritime infrastructure assets managed by DoT available each day have all been counted and averaged over the period measured.


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Average survey cost per commercial vessel.

$1,943 $2,124 $2,749 $2,603 $2662


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Average cost per private recreational vessel registration.

$52.34 $59.99 $79.83 $52.31 $93.87

New costing models developed for the DoT have more accurately identified marine safety costs across the regions that align directly to this measure. This along with an unanticipated drop in recreational boat registrations has combined to increase the actual cost per vessel.

106 107

Time series graphical representations

Average cost per private recreational vessel registration

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

Actual Actual Actual Target Actual

2006-07 2007-08 2008-09 2009-10 2009-10

Average cost per day per maritime infrastructure managed

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Actual Actual Target Actual

2007-08 2008-09 2009-10 2009-10

Average tonnage per North-West shipping trip

0

500

1,000

1,500

2,000

2,500

3,000

3,500


2006-07 2007-08 2008-09 2009-10 2009-10

Average survey cost per commercial vessel

$0.00

$1,000

$500

$1,500

$3,000

$2,500

$2,000


2006-07 2007-08 2008-09 2009-10 2009-10

Average cost per household contacted under the 'TravelSmart' scheme

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

Act ual Act ual Act ual Target Act ual

2006-07 2007-08 2008-09 2009-10 2009-10

Cost to maintain marine pollution response preparedness per registered vessel

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00


2006-07 2007-08 2008-09 2009-10 2009-10

Cycling grant administration cost as a percentage of the total value of grants

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


2006-07 2007-08 2008-09 2009-10 2009-10


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


Average tonnage per North-West shipping trip.

1,838 2,880 1,975 3,050 1,108.5

The lower than expected average tonnage per trip is due to the transition of service providers.


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


Cycling grant administration cost as a percentage of the total value of grants.

20.04% 25.18% 27.18% 16.90% 14.94%

Through the use of experienced personnel and qualified contractors and the establishment of good working relationships with local government, the DoT has been able to improve efficiency and reduce the overall administrative cost considerably as demonstrated by a continuing downward trend.

108 109

Effectiveness indicator: Percentage of driver licences issued that comply with the graduated driver training and licensing system assessed by independent audit

The Road Traffic Act 1974 confers on DoT responsibility for licensing the State’s drivers. Section 16 of the Road Traffic (Authorisation To Drive) Regulations 2008 details the requirements prescribed under section 42 (2)(c) of the Road Traffic Act 1974. Drivers must demonstrate that they are competent to drive a vehicle by passing theoretical and practical tests, completing the prescribed hours of supervised driving and passing a computerised hazard perception test.

This indicator measures the extent to which licensing of drivers is conducted according to processes designed to establish levels of competence pursuant to the provisions of the Road Traffic Act 1974 and related regulations.

To measure this indicator, an independent auditor conducts a sample oversight of driver’s licences issued, ensuring that each key component in the graduated driver training and licensing system is completed and passed.

The simple random sampling method is used to determine the applications selected. One hundred driver licences issued are selected at random for each quarter, giving a total random sample for the year of 400 from more than 30,000 licences issued. This sample size provides a confidence interval of approximately +/- 4.88 at the 95 per cent confidence level.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Percentage of driver licences issued that comply with the graduated driver training and licensing system assessed by independent audit.

86% 85% 89% 100% 92%

Department level desired outcome 2: Vehicles and road users that meet established vehicle standards and driver competenciesThe Road Traffic Act 1974 confers on DoT through the Licensing business unit, responsibility for licensing the State’s drivers and registering vehicles. Drivers must demonstrate that they are competent to drive a vehicle through complying with the requirements of Section 16 of the Road Traffic (Authorisation to Drive) Regulations 2008. Vehicles must be registered before they may be lawfully used on the road. Road Traffic (Vehicle Standards) Rules 2002 details the specific requirements for examination against the Australian Design Rules, which allow a vehicle to be deemed roadworthy.

DoT measures its effectiveness in meeting this outcome through measuring:

Effectiveness indicator: Percentage of vehicle examinations completed in accordance with the Australian Design Rules assessed by independent audit

The Road Traffic Act 1974 confers on DoT responsibility for licensing the State’s vehicles in order for them to be lawfully used on the road. Registration is determined only where a vehicle is deemed roadworthy (passed examination).

This indicator measures the extent to which vehicle examinations are conducted according to processes designed to establish levels of roadworthiness pursuant to the provisions of the Road Traffic Act 1974 and related regulations.

The Road Traffic (Vehicle Standards) Rules 2002 detail specific requirements for vehicles, including dimensions, braking, lighting and emissions – all of which must conform to the Australian Design Rules (as at the date of manufacture of the vehicle). The DoT’s vehicle examiners and authorised inspection station personnel are registered motor vehicle mechanics and trained to examine vehicles in accordance with the Australian Design Rules.

The Motor Vehicle Certificate of Inspection form (MR1) is used to record details of all vehicle examinations.

To measure this indicator, a sample of completed MR1 forms is audited by an independent auditor and the number of sample audited forms that pass the criteria are counted and expressed as a percentage.

The simple random sampling method is used to determine the applications selected. One hundred MR1 forms are selected at random for each quarter, giving a total random

sample for the year of 400 from more than 100,000 examinations conducted. This sample size provides a confidence interval of approximately +/- 4.89 at the 95 per cent confidence level.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Percentage of vehicle examinations completed in accordance with the Australian Design Rules assessed by independent audit.

84% 89% 99% 100% 98%

110 111


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Average cost per driver assessment.

$51.32 $56.46 $59.97 $70.14 $87.06

New costing models developed for the DoT have more accurately identified driver assessment costs associated with the regions that align directly to this measure. This along with a reduction in the number assessments undertaken for that period has resulted in a $17 increase per driver assessment.


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Percentage of driver licence cards issued within 21 days of completed application.

99% 99% 100% 99% 99.80%

Time series graphical representations

Average cost per vehicle and driver transaction

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00


2006-07 2007-08 2008-09 2009-10 2009-10

Average cost per driver assessment

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00


2006-07 2007-08 2008-09 2009-10 2009-10

Average cost per vehicle inspection

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00


2006-07 2007-08 2008-09 2009-10 2009-10

Percentage of driver's licence cards issued within 21 days of competed application

0%

20%

40%

60%

80%

100%

120%


2006-07 2007-08 2008-09 2009-10 2009-10

Efficiency key performance indicatorsService 2: Motor vehicle registration and driver licensing servicesThe Road Traffic Act 1974 confers on DoT, through the Licensing Business Unit, responsibility for licensing the State’s drivers and registering vehicles. Drivers must demonstrate that they are competent to drive a vehicle through passing theoretical and practical tests, completing the prescribed hours of supervised driving and passing a computerised hazard perception test.

Vehicles must be registered before they may lawfully be used on the road. Registration is conferred only where a vehicle is roadworthy.

This service contributes to the Government’s outcomes-based service delivery of ‘Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians’, through:

• Setting motor vehicle standards in accordance with Commonwealth and State Government requirements, examining motor vehicles for compliance with those standards and registering and transferring compliant motor vehicles;

• Setting standards and requirements within Government policies for the issue of a licence to drive on roads;

• Assessing driver competency, issuing and renewing driver licences in accordance with Commonwealth and State Government requirements and driver competency standards;

• Maintaining a database of registered vehicles and drivers, and managing vehicle identification numbers, to support the enforcement of road traffic and other relevant laws;

• Collecting revenue for vehicle and driver licensing on behalf of other Government agencies; and,

• Informing and educating road users about driver licensing, vehicle registration and related requirements.

The key efficiency performance indicators used to measure this performance are:


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Average cost per vehicle and driver transaction.

$15.42 $15.09 $16.80 $18.76 $17.46


2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


Average cost per vehicle inspection

$48.23 $57.99 $81.70 $60.53 $90.46

Estimated quantities used for the published budget were significantly overstated due to the anticipated growth in the economy resulting in an artificially low figure of $60.53. The target should have been in the vicinity of $83. The subsequent increase in the actual compared to the revised target is primarily caused by increased usage of authorised inspection stations in regional areas, resulting in increased commissions paid.

112 113

Efficiency key performance indicatorsService 3: Strategic transport policyThis service contributes to the Government’s framework for the strategic management goal ‘State Building – Major Projects’ by providing leadership for strategic transport issues and by shaping the pattern of transport system development through:

• Provision of an integrated transport policy framework to guide Government and the private sector in decision making;

• The provision and coordination of integrated State-wide transport policy including those of national significance and those involving multi-modal solutions; and

• Ensuring the transport policy framework supports cost effective transport systems and services.

The key efficiency performance indicator used to measure this performance is:


2009-10 target

2009-10 actual


variance

Average cost per policy hour for strategic transport policy development.

$72.67 $73.26

Note: New KPI for DoT in 09-10. With the split of DPI on 1 July 2009, and the formation of DoT, this new indicator was developed to better reflect the intention of the KPI as it relates to the Department of Transport. As this indicator does not exist in the DoT 2009-10 budget papers the DoT internal budget has been used as the target, and comparisons to previous years are not available.

Graphical representations actual against target

Average cost per policy hour for strategic transport policy development

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Target (Internal Budget) Actual

2009-10 2009-10

Department level desired outcome 3: Integrated transport systems that facilitate economic development. The transport function is integral to business and commerce, and important for social interaction and connecting communities. Therefore a major focus of DoT is on strategic transport policy and planning across the range of public and commercial transport systems that service Western Australia.

DoT, through its Policy, Planning and Investment division, develops, integrates and regulates the State’s transport systems and infrastructure.

DoT determines through its policy and planning role, the location of major transport routes and infrastructure, their suitability for a range of transport services and how each integrates into the broader transport system for boats, trains, planes and vehicles.

DoT measures its effectiveness in meeting this outcome through measuring:

Effectiveness indicator: Percentage of containerised freight transported via rail in relation to total metropolitan container movements to and from Fremantle port.

Previous wording for this KPI was - ‘Freight via rail to and from Fremantle port’, however, due to the split of DPI, this KPI was included in the Department of Planning 2009-10 budget papers. Ongoing changes to the two departments throughout 2009-10 and approved changes to DoT’s outcome structure and KPIs account for the inclusion of this KPI in the 2009-10 annual report for DoT.

As the lead agency in the planning of strategic transport routes and infrastructure, DoT understands that efficient logistics are essential between major metropolitan freight generators in order to avoid congestion and bottlenecks. Freight movement also needs to be balanced with community consideration such as noise, road safety and amenity.

An example of this approach, developed through the Metropolitan Freight Network Review (MFNR), is the encouragement of industry to transport more containerised freight by rail between Fremantle port and inland terminals in the Kewdale-Forrestfield area.

The MFNR set a target for containers carried by rail between the Fremantle port and Kewdale-Forrestfield of 15 per cent by 2007-08 and 30 per cent by 2012-13. At the end of 2008-09, container volumes reached 15.1 per cent, however, these percentages dropped to 10.89 per cent for 2009-10 due to the global economic downturn.

The State Government originally provided financial assistance to support the rail service at $50 per 20 ft container in reflection of rail’s higher costs compared to road. The subsidy reduced to $45 per 20ft container and $95 per 40ft container on 18 May 2009 and on 3 August 2009 the amount per 40ft container further reduced to $90. The subsidy is paid on loaded containers having their origin or destination in the metropolitan area. It was expected that the subsidy per container would further decline as volumes on rail increased and operational efficiencies were introduced, however, further evaluation of the subsidy for the future may be required due to the long term effects of the global financial crisis.

This indicator provides information on effectiveness and performance of the subsidy DoT paid on behalf of Fremantle Ports to Intermodal Link Services (ILS) to affect a modal shift from road to rail for containers transported to and from the Fremantle port for import or export.

To calculate this indicator, data on rail containers is sourced from the North Quay rail terminal and is compared to Fremantle Ports’ trade figures for total containers (excluding those that are transhipped and do not leave the port precinct). This comparison enables calculation of rail’s market share.

2006-07 actual

2007-08 actual

2008-09 actual

2009-10 target

2009-10 actual


variance

Percentage of containerised freight transported via rail in relation to total metropolitan container movements to and from Fremantle port.

8.3% 13.3% 15.1% 16% 10.89%

The global economic downturn in trade has impacted significantly on rail volumes both through loss of certain trades and the intense competition from the road sector.

114 115

Office Locations Metropolitan OfficesOffice Contact Numbers Street Address Postal AddressMurray Street Phone:0892168000 441MurrayStreet

PERTHWA6000GPOBoxC102PERTHWA6839

Public Transport Centre Phone:0892168000 WestParadeEASTPERTHWA6004

GPOBoxR1290PERTHWA6844

East Perth Phone: 1300 660 147 20 Brown StreetEAST PERTH WA 6004

GPOBoxC102PERTHWA6839

Fremantle Phone:0892168999Facsimile:0892168979

MarineHouse1EssexStreetFREMANTLEWA6160

POBox402FREMANTLEWA6959

Fremantle Fishing Boat Harbour (Marineoperationscentre)

Phone:0894311000Facsimile:0894311019

14CapoD’OrlandoDriveFREMANTLEWA6160

POBox402FREMANTLEWA6959

Hillarys(CoastalInfrastructure)

Phone:0894487544Facsimile:0894478713

86SouthsideDriveHILLARYSWA6025

POBox410HILLARYSWA6923

Efficiency key performance IndicatorsService 4: Integrated transport planningThis service contributes to the Government’s framework for strategic management goal ‘State Building – Major Projects’ by providing leadership for strategic transport issues and by shaping the pattern of transport system development through:

• Developing an agreed State-wide integrated transport strategy;

• Developing multi-modal network plans

• Undertaking State-wide capital investment planning, evaluation and prioritisation;

• Integrated planning for major transport system projects;

• Development of funding principles and pricing signals to ensure appropriate development and use of transport assets;

• Improving freight access to key terminals, improving freight flows and increasing competitiveness through reduced costs;

• Reducing the costs associated with road trauma by enhancing the accessibility and safety of public transport systems;

• Providing for the efficient distribution of goods and services to business and the community;

• Ensuring flexibility to meet the demands of a changing economy and market environments; and

• Enabling commuter access to industrial centres and to the services and goods they require.

The key efficiency performance indicator used to measure this performance is:


2009-10 target

2009-10 actual


variance

Average cost per planning hour for integrated transport planning development.

$92.91 $99.48

Note: New KPI for DoT in 09-10. With the split of DPI on 1 July 2009 and the formation of DoT, this indicator was developed to better reflect the intention of the KPI as it relates to the Department of Transport. As this indicator does not exist in the DoT 2009-10 budget papers the DoT internal budget has been used as the target, and comparisons to previous years are not available.

Graphical representations actual against target

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Target (Internal Budget) Actual

2009-10 2009-10

Average cost per planning hour for integrated transport planning development

116

Country OfficesRegion Office Contact Numbers Street Address Postal Address

PeelPinjarra(Licensingandmarinesafetyservices)

Phone:131156MurrayHouse14JamesStreet(CnrMurraySt)PINJARRAWA6208

MurrayHouse14JamesSt(CnrMurraySt)PINJARRAWA6208

Gascoyne Carnarvon(OneStopShop)

Phone:0899411830Facsimile:0899411067

CarnarvonBoatHarbourBoatHarbourRoadCARNARVONWA6701

POBox775CARNARVONWA6701

Exmouth(OneStopShop)

Phone:0899492079Facsimile:0899492078

SESBuildingCornerPayneandRiggsstreetsEXMOUTHWA6707

POBox220EXMOUTHWA6707

Goldfields/Esperance Esperance(Regionalservices)

Phone:0890716891Facsimile:0890716892

53TheEsplanadeESPERANCEWA6450

POBox2255ESPERANCEWA6450

Kalgoorlie(One-stopshop)

Phone:0890225999Facsimile:0890916288

Unit4,35BrookmanStreetKALGOORLIEWA6430

POBox10412KALGOORLIEWA6430

Great Southern Albany(One-stopshop)

Phone:0898927333Facsimile:0898421079

178StirlingTerraceALBANYWA6330

POBox1108ALBANYWA6331

Kimberley Broome(One-stopshop)

Phone:0891920200Facsimile:0891935651

OldKennedyStore9NapierTerraceBROOMEWA6725

POBox1993BROOMEWA6725

Kununurra(CrownLand)

Phone:0891680602Facsimile:0891680600

CnrMessmateWay&BandicootDveKUNUNURRAWA6743

POBox630KUNUNURRAWA6743

Mid WestGeraldton(One-stopshop)

Phone:0899560111Facsimile:0899560130(licensing)08 99560131(regionalservices)

65ChapmanRoadGERALDTONWA6530

POBox68GERALDTONWA6530

Pilbara Karratha(One-stopshop)

Phone:0891856100Facsimile:0891431288 3-5WelcomeRoad

KARRATHAWA6714POBox429KARRATHAWA6714

South West Bunbury(OneStopShop)

Phone:0897926666Facsimile:0897926600

24WellingtonStreetBUNBURYWA6230

POBox2247BUNBURYWA6231

Licensing and Vehicle Examination ServicesMetropolitan AreaOffice Street Address Postal Address

West Perth(Licensing services)

Suite 42 – 44, 102 Railway Parade Cnr Troode and Plaistowe Mews CITY WEST WA 6005

Suite 42 – 44, 102 Railway Parade Cnr Troode and Plaistowe Mews CITY WEST WA 6005

Willagee(Licensing services)

Cnr Stock Road and Leach HighwayWILLAGEE WA 6156

Cnr Stock Road and Leach HighwayWILLAGEE WA 6156

Joondalup(Licensing services)

65 Boas AvenueJOONDALUP WA 6027

65 Boas AvenueJOONDALUP WA 6027

Kelmscott(Licensing and vehicle examination services)

34 Gillam Drive KELMSCOTT WA 6111

34 Gillam Drive KELMSCOTT WA 6111

Mandurah(Licensing)

Cnr Pinjarra Rd and Ranceby Ave MANDURAH WA 6210

PO Box 3102MANDURAH EASTWA 6210

Midland(Licensing services)

Shop T053Midland Shopping Centre15 Cale StreetMIDLAND WA 6056

Shop T053Midland Shopping CentreCale StreetMIDLAND WA 6056

Midland(Vehicle examination services)

11 Victoria StreetMIDLAND WA 6056

11 Victoria StreetMIDLAND WA 6056

Morley(Licensing services)

63 Russell StreetMORLEY WA 6062

63 Russell StreetMORLEY WA 6062

O’Connor(Vehicle examination services)

2 Stockdale RoadO’CONNOR WA 6163

2 Stockdale RoadO’CONNOR WA 6163

Osborne Park(Vehicle examination services)

34 Howe StreetOSBORNE PARK WA 6017

34 Howe StOSBORNE PARK WA 6017

Rockingham(Licensing services)

37 McNicholl StreetROCKINGHAM WA 6168

37 McNicholl StreetROCKINGHAM WA 6168

Warwick(Licensing and vehicle examination services)

37 Eddington RoadWARWICK WA 6024

37 Eddington RoadWARWICK WA 6024

Welshpool(Licensing and vehicle examination services)

21 Murray Road SouthWELSHPOOL WA 6106

21 Murray Road SouthWELSHPOOL WA 6106

People with DisabilitiesIf you are deaf or have a hearing or speech impairment please call 13 36 77 and quote the number you want.

TTY access for people with a hearing impairment:

Fremantle office TTY 08 9430 6263Licensing information TTY 08 9216 8484

Local Induction

www.transport.wa.gov.au

For more information about the Department of Transport:

Phone: 08 9216 8000

Email: [email protected]

Or visit: