Department of the Environment and Heritage Reports 2003-04 (2024)

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Department of the Environment and Heritage Reports 2003-04

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Australian Government

Department of the Environment and Heritage

Annual Report 2003-04

Including the Department's Triple Bottom Line Report

Australian Govermnent

Department of the Environment and Heritage

Department of the Environment and Heritage Annual Report 2003-04

Protecting the environment, especially matters of national environmental significance

Advancing Australia's Antarctic interests

C Commonwealth of Australia 2004

ISSN 1441 —9335

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, available from the Australian Government Department of the Environment and Heritage.

Requests and inquiries concerning reproduction and rights should be addressed to:

Assistant Secretary Policy Development Branch Department of the Environment and Heritage GPO Box 787 Canberra ACT 2601

Photography credits

Australian Capital Territory Environment Protection Section - Fog and smoke over Canberra (p.27)

C. Baker and Australian Heritage Photo Library - Hope and Anchor Tavern (p.74)

John Baker - Trees in front of beach (p.14), Grazing hills and river (p.68), Kakadu National Park (p.74), lake Placid (p.109), Grasshopper on water lily (p.126), Wetland in Kakadu National Park (p.198), Grass tree on Mount Coryah (p.336)

Andrew S. Benwell - Flower Phaius Tancarvjlliae (cover and p. 1)

Alastair Belts - Water treatment plant (p.90)

D. Bishop and the Australian Heritage Photo Library - Royal Exhibition Building (cover)

Blackhill Flora Centre SA - Sandhill Greenhood Orchid (p.19)

Peter Christopheraen - Floodplain burning (p.407)

Peter Coyne - Tree fern crowns (p.126)

Department of Foreign Affairs and Trade - Tree planting (p.135), Twin Falls (p.342)

Director of National Parks - Yellow-throated Miner on Honey Grevillia (p.337)

Grant Dixon (Courtesy AAD) - Stormy sky over iceberg (p.177)

Glenn Duncan (Courtesy AAD) - Blade housing (p.399)

A Dunn - Chimney and phosphate dust (p.27)

TrevorJ. Jerino - Wildflowers at Mount Hotham (p.iv and p.236)

Glenn Jacobsen - Australian Antarctic Division headquarters (p.395)

Paul Janssen - Hand watering (p.405), Stormwater holding tanks (p.405)

Darren Jew - Northern Hairy-nosed Wombat (p.68) Steve Keough - Natural light for meeting spaces (p.373, p.376 and p.377), Helen Pike operating the Defence Circuit (p.374), Communications Centre lobby (p.375)

Kieran lawless - Penguins and chicks (p.137, p.140, p.167, p.177 and p.235), People on ice (p.152), Seals (p.167), Clouds over mountains (p.167), Ice on water (p.177)

Peter Magill (Courtesy AAD) - Installing the blades (p.399) Arthur Mostead - Farmer fixing fence (cover), Gum tree (p.18 and p.68), Bee on Bottlebrush (p.38), Shoreline at Narooma (p.55 and p.308), Salinity (p.119), Cow (p.119), Waterways (p.119), Gum seedling (p.135), Wildflowers (p.189), Australian bush (p.199), Kangaroo paw (p.349), Corridor natural light (p.361)

Pacific Whale Foundation - Whale tail (cover and p.152), whale (p. 140)

Wayne Papps (Courtesy AAD) - Antarctic knowledge passing to a new generation (p.397)

Trevor Preston - Moonrise over the ocean (p.x)

Peter Raynard - Grass tree (cover and throughout)

Graeme Robertson - Albatross (p.140)

Rix Ryan Photography - Girl picking up rubbish (p.135)

John Smith (Courtesy AAD) - Wind turbine in action (p.398)

Andrew Tatnell - Paperbark swamp (p.109), Great Egret (p.343), Fairy Wren (p.309)

Robert Thorn - Frog on fern (p.38), Green turtle (p.55), Butterfly fish (p.55)

Jenny Tomkins - Lighthouse on Rottnest Island (p.74)

Dave Watts - Orange-bellied Parrot (p.15)

Merran Williams - Murray Williams (p.109)

Eric Woehier (Courtesy AAD) - Children get close to

Printed by National Capital Printing on Australian paper made from sustainable plantation timber.

ii Department of the Environment and Heritage Annual Report 2003-04

Australian Government

Department of the Environment and Heritage

Office of the Secretary

Senator the Hon Ian Campbell Minister for the Environment and Heritage Parliament House CANBERRA ACT 2600

Dear Minister

I present the annual report of the Department of the Environment and Heritage for the financial year ended 30 June 2004 prepared in accordance with subsection 63(2) of the Public Service Act 1999. Subsection 63(1) of that Act requires me to give you the report for presentation to the Parliament. A copy of this annual report must be laid before each House of the Parliament on or before 31 October 2004.

In addition, the annual report must be tabled in each House of the Parliament within 15 sitting days after the day on which you receive it because it contains other annual reports about Acts the Department administers. Specifically, it includes annual reports that meet the requirements of:

â¢ section 516 of the Environment Protection and Biodiversity Conservation Act 1999; â¢ section 71 of the Fuel Quality Standards Act 2000; â¢ section 61 of the Hazardous Waste (Regulation of Exports and Imports)

Act 1989; â¢ section 68 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989; â¢ section 35 of the Product Stewardship (Oil) Act 2000; and â¢ section 47 of the Protection ofMovable Cultural Heritage Act 1986.

lam pleased to include in this annual report the Department's first Triple Bottom Line report about performance against selected environmental, social and economic indicators.

Yours sincerely

David Borthwick

Secretary

6 October 2004

GPO Box 787 Canberra ACT 2601 Telephone 02 6274 1111 Facsimile 02 6274 1666 Internet: www.deh.gov.au ABN: 34 190 894 983 UUM

MCMBER

III

Contents

Letter of transmittal iii

Readers' guide vii

Overview i

Review by departmental secretary 2

Departmental overview 6

Review of performance 15

Outcome 1- Environment 19

Progress towards Outcome 1 19

Protecting the atmosphere 27

Conserving and managing biodiversity 38

Protecting and managing coasts and oceans 55

Managing environmental assessments and approvals 68

Protecting and conserving heritage 74

Improving the environmental performance of Australian industry 90 Managing inland waters 109

Protecting and managing the land 119

Establishing and managing protected areas 126

Administering Natural Heritage Trust programmes 135

Outcome 2 - Antarctica 137

Progress towards Outcome 2 137

Influencing the Antarctic Treaty System 140

Protecting the Antarctic environment 152

Understanding the global climate system 167

Undertaking practical and significant scientific research 177

Financial results 189

Summary resource tables 191

Performance of purchaser-provider arrangements 195

Management and accountability 199

Environmental reporting 200

International policy advice 201

Environmental economics advice 204

Support for environmental education 206

Support for environmental organisations 207

Corporate governance 208

External scrutiny 215

Knowledge management

219

Management of human resources 220

Assets management 230

Purchasing 230

Consultants 232

Competitive tendering and contracting 232

Exempt contracts 232

Commonwealth disability strategy 232

Financial statements 235

Appendices - Other mandatory information 309

Occupational health and safety 310

Freedom of information 313

Advertising and market research 316

Environmental performance 317

Discretionary grants programmes 329

List of Acts administered by the Department 335

Glossary - Frequently used terms 338

Indexes 343

Compliance index 344

Alphabetical index 349

Other reports 379

Triple bottom line report 380

Operation of the Environment Protection and Biodiversity Conservation Act 1999, including this year the final report of the Australian Heritage Commission 455

Operation of the Fuel Quality Standards Act 2000 601

Operation of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 610

Operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 619

Operation of the product stewardship arrangements for oil including the Product Stewardship (Oil) Act 2000 629

Operation of the Protection ofMovable Cultural Heritage Act 1986 641

vi Department of the Environment and Heritage Annual Report 2003-04

Readers' guide

What is this document? This is the annual report of the Australian Government Department of the Environment and Heritage ('the Department') for the financial year that began on 1 July 2003 and ended on 30 June 2004 ('2003-04'). It is a report from the Secretary of the Department to the Australian Government Minister for the Environment and Heritage ('the Minister'), for tabling in the Australian Parliament.

What is it for?

Annual reports tell the Australian Parliament, other stakeholders, educational and research institutions, the media and the general public about the performance of government agencies like the Department in providing services. They are key reference documents that are part of the historical records of the Australian Government.

This annual report explains the activities of the Department during 2003-04. It includes the Department's audited financial statements for 2003-04. The information the report contains meets the requirements of the Public Service Act 1999 and the Financial Management and Accountability Act 1997.

Structure and content

The content of departmental annual reports must meet the requirements of the Australian Parliament's Joint Committee of Public Accounts and Audit, which have the force of law under subsections 63(2) and 70(2) of the Public Service Act 1999. The structure of this annual report reflects these requirements. For a complete list of the requirements, and where to find the relevant information in this annual report, see the 'Compliance index'.

Some Acts that the Department administers require the Department or Minister to provide annual reports on their operation. The last part of this annual report— 'Other reports'—includes reports on the operation of six of these Acts.

This annual report also includes the Department's triple bottom line report, which sets out the environmental performance of the Department's Canberra office, and the social and economic performance of the wider Department.

Vii

However, this annual report does not include annual reports about other

Environment and Heritage Portfolio agencies and some programmes such as the Natural Heritage Trust, which are published separately (see box below). For example, it does not include the Supervising Scientist's annual report on the operation of the Environment Protection (Alligator Rivers Region) Act 1978.

Annual reports published separately

The following agencies in the Portfolio publish separate annual reports: Australian Greenhouse Office Bureau of Meteorology Director of National Parks Great Barrier Reef Marine Park Authority National Oceans Office Office of the Renewable Energy Regulator Sydney Harbour Federation Trust

The following Acts administered by the Portfolio have separately published annual reports:

Environment Protection (Alligator Rivers Region) Act 1978 (section 36) National Environment Protection Council Act 1994 (sections 23 and 24) Natural Heritage Trust of Australia Act 1997(section 43) Renewable Energy (Electricity) Act 2000 (section 105)

Wet Tropics of Queensland World Heritage Area Conservation Act 1994 (section 10)

viii Department of the Environment and Heritage Annual Report 2003-04

Consistency with budget statements

Under the Australian Government's accounting system, government agencies receive funding to achieve results for the Australian Government called 'outcomes' by producing goods and services called 'outputs'. Annual reports are closely linked to documents called portfolio budget statements and portfolio additional estimates statements. These documents set out the details of each agency's annual funding,

including performance targets for its outputs and outcomes. (For explanations of government accounting terms and processes, see the glossary in this annual report.)

The 'Review of performance' part of this annual report has a separate section for each of the Department's 13 outputs (which are listed in the 'Departmental overview' and Figure 1).

For more information

For more information about this report contact: Assistant Secretary Policy Development Branch Department of the Environment and Heritage GPO Box 787 Canberra ACT 2601

Phone: (02) 6274 2722

For copies of this report and all departmental publications contact:

Community Information Unit Department of the Environment and Heritage GPO Box 787 Canberra ACT 2601 Phone: 1800 803 772

For more information about the Department, visit the web site at www.deh.gov.au . This annual report is published online at www.deh.gov.au/about/annual-report.

Review by departmental secretary

Our environment consistently rates as one of the top issues of importance to Australians. This is hardly surprising given the vast array of landscapes we enjoy—from the natural beauty of the inland, our beaches and forests, to some of the most liveable cities in the world.

The 2003-04 Annual Report of the Department of the Environment and Heritage outlines what has been achieved over the past year to ensure that our unique environment is sustained for future generations.

Also in this annual report, the Department has reported on its 'in-house' activities, for the first time, on a 'triple bottom line' basis, which is in keeping with our promotion of this concept to the private sector.

Our approach to the challenge

Before touching on some of the highlights, let me say a little more about how we have gone about our work.

Environmental matters are, by their very nature, complex. Problems may have developed over a long period of time; affect vast areas; impact on a range of individuals and groups; and cross state borders. Solutions are never easy to broker. In our work, we strive to devise solutions which are efficient, equitable and feasible to implement.

To be effective, we rely On:

â¢ having a comprehensive understanding, based on good science, of the nature of

the environmental problem;

â¢ a solid, underpinning framework of feasible instruments—whether economic, regulatory or administrative approaches—that can be targeted effectively at the nub of environmental problems;

â¢ applying policies and programmes which respond effectively to environmental goals but in a way that is supportive of the nation's social and economic interests;

â¢ having cooperation across a number of Australian Government agencies, with other levels of government, with industry, with international partners, and, most importantly, with the community; and

â¢ a skilled and dynamic staff.

2 Department of the Environment and Heritage Annual Report 2003-04

Review by departmental secretary

Overview

Through the application of this approach, the Department—and the broader Environment and Heritage Portfolio'—has made a considerable contribution over the past year to advancing environmental objectives.

2003-04: the highlights

The annual report indicates the depth and extent of the Department's activities, but four developments particularly illustrate the reach and effectiveness in 2003-04. First, the cornerstone of the Portfolio's legislative base is the Environment Protection and Biodiversity Conservation Act 1999, which aims to protect matters of national environmental significance. It sets out a framework to protect threatened species, ecological communities, Commonwealth land and waters, and protects

wildlife through the regulation of trade. In 2003-04 the reach of the Act was extended to now protect Australia's nationally significant natural, Indigenous and historic heritage places. For the first time, heritage places under Commonwealth management will also be legislatively protected.

Secondly, Australia's major land and water repair programmes are the $3 billion Natural Heritage Trust and the $1.4 billion National Action Plan for Salinity and Water Quality. Key components of these programmes involve planning and delivery at the community level through regional catchment committees. The strategy focuses on national priorities, while enriching those priorities with local knowledge, content and commitment. The fruits of this approach are being realised

as plans are being accredited and investment programmes are put in place. The task of environmental repair will require ongoing effort.

Thirdly, in 2003-04, a year of prolonged drought across much of the continent, the Council of Australian Governments adopted two intergovernmental agreements—the National Water Initiative and The Living Murray. The agreements are pathbreaking reforms which offer a framework for improved environmental performance and efficiency of water use. The Living Murray initiative, as a first step, will focus on improving six key ecological assets—the Barmah-Millewa Forest; Gunbower and Pericoota-Koondrook Forests; Hattah Lakes; Chowilla Floodplain (including Lindsay-WalIpolla); the Murray Mouth, Coorong and Lower Lakes; and

the River Murray Channel.

Fourthly, the finalisation of a new zoning plan for the Great Barrier Reef Marine Park (led by the Great Barrier Reef Marine Park Authority) was a milestone for environmental sustainability. Changes came into effect on 1 July 2004, increasing

1 The Environment and Heritage Portfolio consists of the Department of the Environment and Heritage, the Director of National Parks, the Great Barrier Reef Marine Park Authority, the Sydney Harbour Federation Trust, the Office of the Renewable Energy Regulator, the Australian Greenhouse Office, the Bureau of Meteorology and the National Oceans Office.

the 'no take' zones from 4.5 per cent to

33.5 per cent of the park. There are

clear long-term environmental and tourist industry benefits from this extended protection. However, there will be businesses adversely affected by the changes (primarily those involved in commercial and recreational fishing, and fish processing). It has been an important objective in finalising the plan to devise a fair and equitable adjustment assistance package for affected businesses, employees and communities.

The year ahead

The Portfolio has clear objectives for the year ahead, notwithstanding changes that may occur in this election year. Some of the matters that require particular attention in 2004 05 include:

â¢ continuing to work with regional catchment committees to ensure their planning and on-ground activities funded through the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality align with national priorities for environment conservation;

â¢ working closely with other Australian Government agencies, the states, industry and the community to turn the framework provided by the intergovernmental agreements on the National Water Initiative and The Living Murray into on-ground benefits for our inland waterways;

â¢ working with the Australian Heritage Council in implementing the new heritage regime: identifying places of outstanding national heritage significance and protecting Commonwealth-owned heritage places; and

â¢ ensuring the Department continues to have in place effective administrative and governance arrangements to support the delivery of our environment and heritage responsibilities, and that our staff are well prepared in meeting these challenges.

Organising ourselves

The Department will only be able to discharge its responsibilities effectively if it (and the broader Portfolio) is responsive to the Minister's and the Government's priorities. We will perform to the best of our ability only if we stay in 'tip-top' shape. To this end, the Department is undertaking a staff attitude survey (the first since 1995); reviewing the governance framework; sharpening our focus on programme

implementation; improving our IT systems and support; and ensuring we have in place a targeted training programme for staff.

David Borthwick Secretary

4 Department of the Environment and Heritage Annual Report 2003-04

Review by departmental secretary Overview

Retirement of Mr Roger Beale AM

Mr Roger Beale AM retired from the Australian Public Service, as Secretary of the Department of the Environment and Heritage, in February 2004.

Mr Beale led the Department for eight years from March 1996, as well as being a Commissioner of the Australian Heritage Commission, and Chairman of the Environment Protection and Heritage Standing Committee and the Prime Minister's Special Representative on Climate Change. With his capacity for identifying and engaging key players, he chaired many cross-portfolio initiatives, dealing with issues as diverse as greenhouse, environmental law and national heritage.

Mr Beale came to this role after an impressive record of achievement, including as an Associate Secretary in both the Department of Prime Minister and Cabinet and the Department of Transport and Communications, and as a Commissioner of the Public Service Board.

During his time as Secretary, Ministers Robert Hill and David Kemp, and Parliamentary Secretary Sharman Stone greatly valued his advice, and he earned the respect of his peers and staff.

Mr Beale's intellectual capacity, energy and commitment led the development and implementation of the Australian Government's environmental policy agenda, and shaped the portfolio as a respected contributor to whole of government policy on the range of issues affecting the sustainability of our nation.

The fact that working towards a sustainable environment now stands alongside our national economic and social objectives in the development of overall government policy is testament to Mr Beale's personal contribution to the protection of Australia's environment.

The list of Mr Beale's achievements is long, but the recognition of the Environment and Heritage Portfolio's contribution in setting the policy agenda, increased protection for Australia's special places such as Kakadu, many successes in international arenas and forums, and the consolidation of the

Department into the John Gorton Building were some of his key achievements.

Mr Beale was made a Member of the Order of Australia in 1995.

Departmental overview

Outline of portfolio structure As at 30 June 2004 the Environment and Heritage Portfolio was made up of: â¢ the Department (the activities of which are the subject of this annual report);

â¢ the Director of National Parks;

â¢ the Great Barrier Reef Marine Park Authority;

â¢ the Office of the Renewable Energy Regulator;

â¢ the Sydney Harbour Federation Trust;

â¢ the Australian Greenhouse Office;

â¢ the Bureau of Meteorology; and

â¢ the National Oceans Office.

See Figure 1 for a structure diagram of the Environment and Heritage Portfolio.

Changes during 2003-04

On 1 July 2003, the Office of the Renewable Energy Regulator became a prescribed agency under the Financial Management and Accountability Act 1997 and now reports as an agency in its own right. Before becoming a prescribed agency, the office reported in the Department's annual report.

On 1 January 2004 the Australian Heritage Council replaced the Australian Heritage Commission, which until that date was a Commonwealth authority within the Environment and Heritage Portfolio.

Role and functions of the Department

The Department advises the Australian Government on policies and programmes for the protection and conservation of the environment, including natural, cultural and Indigenous heritage.

Protecting the environment is a shared responsibility. The Department works with other Australian Government agencies, industry sectors, the community, and other levels of government to protect Australia's environment and heritage. It represents Australia in international environmental agreements and forums. Examples include the Convention on Biological Diversity, the Antarctic Treaty System, the International Whaling Commission and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.

6 Department of the Environment and Heritage Annual Report 2003-04

Departmental overview Overview

The Department manages major environmental programmes, the most significant

of which come under the umbrella of the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality. Both the Trust and National Action Plan are administered jointly with the Department of Agriculture, Fisheries and Forestry.

The Department administers the Commonwealth environmental laws listed in Appendix 5, including the Environment Protection and Biodiversity Conservation Act 1999.

See Table 1 and each section of the 'Review of performance' for more details of the Department's responsibilities.

Organisational structure

As at 30 June 2004 the Department had nine divisions as shown in Table 1, which summarises the main responsibilities of each division. Figure 2 shows how the divisions were further divided into branches, and identifies the responsible senior executives.

Changes during 2003-04

At the beginning of 2003-04 the Department underwent a restructure. The former Environment Quality Division and Policy Coordination Division were merged to form the Policy Coordination and Environment Protection Division. The Marine and Water Division and Natural Heritage Division were disbanded.

Marine and Water Division functions were reassigned to the Approvals and Wildlife Division, the Parks Australia Division, the National Oceans Office, the Australian Antarctic Division and the new Land, Water and Coasts Division. Natural Heritage Division functions were reassigned to the Natural Resource Management Programmes Division, the Approvals and Wildlife Division, and the Land, Water and Coasts Division.

Also, in April 2004 a new Marine Protected Areas Task Force was formed in the Land, Water and Coasts Division.

The Department changed the wording of its corporate logos from 'Environment Australia' to the 'Australian Government Department of the Environment and Heritage', consistent with advice received from the Secretary of the Department of the Prime Minister and Cabinet in July 2003.

Table I: The Department's divisions and their main responsibilities

Division Main responsibilities

Australian Antarctic Division Antarctic and sub-Antarctic territories, international whale and seabird conservation, Antarctic science.

Approvals and Wildlife Division Environment Protection and Biodiversity Conservation Act 1999 (environmental impact assessments, listing of threatened species and communities, regulation of wildlife trade, monitoring compliance, enforcement).

Corporate Strategies Division Human resources, financial management, environmental education, knowledge management, IT.

Heritage Division World, national and Commonwealth-owned heritage.

Land,Water and Coasts Division Biodiversity policy, environmental aspects of water reform, native vegetation, land management and repair, coastal sustainability, protecting wetlands, marine

- - - protected areas.

Natural Resource Management Natural Heritage Trust and National Action Programmes Division Plan for Salinity and Water Quality (shared with the Department of Agriculture, Fisheries and Forestry).

Parks Australia Terrestrial parks and reserves (including

Kakadu, Uluru-Kata Tjuta and Booderee national parks, and the Australian National Botanical Gardens), National Reserve System, Indigenous policy coordination, Australian Biological Resources Study.

Policy Coordination and Environment Air quality, ozone protection, eco-efficiency, Protection Division management of hazardous substances, chemicals, industry partnerships, international policy coordination, corporate

governance, budget coordination, economic advice, legal services, public affairs.

Supervising Scientist Division Environment Protection (Alligator Rivers Region) Act 1978 (uranium mining activities).

8 Department of the Environment and Heritage Annual Report 2003-04

Overview

Departmental overview

Outcome and output structure

In 200-04, the Department had two outcomes: Outcome 1: The environment, especially those aspects that are matters of national environmental significance, is protected and conserved.

Outcome 2: Australia's interests in Antarctica are advanced.

The Department's outputs that contributed to Outcome 1 were:

Atmosphere Biodiversity Coasts and oceans Environmental assessment and approvals Heritage Industry Inland waters Land management Parks and reserves

The Department's outputs that contributed to Outcome 2 were:

Influence in Antarctic treaty system Protecting the Antarctic environment Understanding global climate system Undertake scientific work of practical, economic or national significance

In practice, many of the Department's activities formed part of more than one of these outputs. Understanding these activities may require a reading of more than one of the sections in the 'Review of performance', using the index to this annual report to aid navigation.

In addition, the Department carried out other activities such as human resource management, which were funded from the departmental appropriations.

Figure 1 shows the Environment and Heritage Portfolio's output and outcome structure. It shows which parts of the Portfolio contributed to these outputs and outcomes. Other agencies in the Portfolio also contributed to the Department's environment outcome.

The Bureau of Meteorology had its own Outcome 1: 'Australia benefits from meteorological and related science and services'.

Portfolio structure

Minister for the Environment and Heritage The Hon Dr David Kemp (2003-04)

Visiting Deputy Secretary Ms Donna Petrachenko

Secretary

Mr David Borthwick

Deputy Secretary Dr Conall O'Connell

Deputy Secretary Ms AntheaTinney

Australian Greenhouse Office 171 personnel

Department of the Environment and Heritage 1770 personnel

Fi gur e 1

:Th e E nvi ronment

and H eri ta ge P

ortf oli o

Approvals and Wildlife Division

National Oceans Office 47 personnel

Natural Resource Management Programmes Division

Sydney Harbour Federation Trust Land Policy Coordination and

45 personnel

,Water and Coasts Division Environment Protection Division

Director of National Parks

Parks Australia Division Supervising Scientist Division

(402 personnel)

Great Barrier Reef Marine Park Authority 175 personnel Heritage Division

Australian Antarctic Division / (356 personnel)

Office of the Renewable Energy Regulator 12 personnel

Corporate Strategies Division

Commonwealth authority Lk Executive agency J Statutory agency

Parliamentary Secretary to the Minister for the

Environment and Heritage - Dr Sharman Stone

Australians working together to meet the challenge of climate change.

Australians working together towards the ecologically sustainable management of the oceans.

Trust lands on Sydney Harbour are conserved and enhanced for the benefit of present and future generations of Australians.

Conservation and appreciation of Commonwealth reserves.

â¢

Protection, wise use, understanding and enjoyment of the Great Barrier Reef.

â¢ Increasing renewable energy generation in Australia's electricity supplies.

Outcome 1 Outcome 2 Outcome 1

The environment, especially those aspects that are matters of national environmental significance, is protected and conserved. Australia's interests in Antarctica are

advanced.

Australia benefits from meteorological and related science and services.

Outcome and output structure

Output 1.1 Atmosphere

Output 1.2 Biodiversity

Output 1.3 Coasts and oceans

Output 1.4 Environmental Assessment and approvals

Output 1.5 Heritage

Output 1.6 Industry

Output 1.7 Inland waters

Output 1.8 Land management

Output 1.9 Parks and reserves

Output 2.1 Influence in Antarctic treaty system.

Output 2.2 Protecting the Antarctic environment.

Output 2.3 Understanding global climate system.

Output 2.4 Undertake scientific work of practical, economic or national significance.

Figure 2: Organisation chart including senior executives Minister for the Environment and Heritage The Hon Dr David Kemp MP (2003-00 Tel: (02) 6277 7640 Fax: (02) 6273 6101

Parliamentary Secretary The Hon Or Sharman Stone MP Tel: (02) 6277 2016 Fax: (02) 6277 8483

Secretary Mr David Borthwick Executive Assistant: Ms Marg Hall Tel: (02) 6274 1550 Fax: (02) 6274 1552

Deputy Secretary

Dr Conall O'Connell Tel: (02) 6274 1500 Fax: (02) 6274 1552

Deputy Secretary Ms Anthea Tinney Tel: (02) 6274 1949 Fax: (02) 6274 1552

Australian Antarctic Division

Director

DrTony Press Tel: (03) 6232 3200 Fax: (03) 6232 3215

Operations General Manager Mr Kim Pitt Tel: (03) 6232 3204 Fax: (03) 6232 3328

Policy Coordination General Manager Ms Linda Hay Tel: (03) 6232 3206 Fax: (03) 6232 3215

Science Chief Scientist Prof Michael Stoddart Tel: (03) 6232 3205 Fax: (03) 6232 3583

Corporate General Manager Mr Rod Allen Tel: (03) 6232 3203 Fax: (03) 6232 3215

Land, Water and Coasts Division

First Assistant Secretary

MrTony Slatyer Tel: (02) 6274 1919 Fax: (02) 6274 2360

Natural Resource Management Policy

Assistant Secretary Or Rhondda Dickson Tel: (02) 6274 2501

Fax: (02) 6274 2360

Coasts and Water Assistant Secretary Mr Theo Hooy Tel: (02) 6274 2223 Fax: (02) 6274 2360

Marine Environment Policy

Assistant Secretary Mr Stephen Oxley Tel: (02) 6274 1170 Fax: (02) 6274 2360

Natural Resource Management Programmes Division

First Assistant Secretary

Mr Mark Tucker Tel: (02) 6274 2345 Fax: (02) 6274 1163

Australian Government Natural Resource Management Teams(b)

Assistant Secretary Ms Chris Schweizer Tel: (02) 6274 2325 Fax: (02) 6274 2053

Assistant Secretary Ms Kelly Pearce Tel: (02) 6272 5818 Fax: (02) 6272 3626

Parks Australia Division

Director of National Parks

Mr Peter Cochrane Tel: (02) 6274 2221 Fax: (02) 6274 2349

Parks Australia North Assistant Secretary Mr Peter Wellings Tel: (08) 8920 1302 Fax: (08) 8920 1315

Parks Australia South Assistant Secretary Mr Con Boekel Tel: (02) 6274 2320 Fax: (02) 6274 2349

Supervising Scientist Division

Supervising Scientist

Or Arthur Johnston Tel: (08) 8920 1101 Fax: (08) 8920 1190

Office of the Supervising Scientist

Assistant Secretary Vacant Tel: (08) 8920 1102 Fax: (08) 8920 1190

Environmental Research Institute of the Supervising Scientist

Director Dr Max Fin layson Tel: (08) 8920 1104 Fax: (08) 8920 1190

Commonwealth authorities Statutory agency

Director of National Parks

Mr Peter Cochrane GPO Box 787 Canberra ACT 2601 Tel: (02) 6274 2221 Fax: (02) 6274 2349

Great Barrier Reef Marine Park Authority

Chair The Hon Virginia Chadwick GPO Box 1379 Townsville OLD 4810 Tel: (07)4750 0847 Fax: (07)4772 6093

Sydney Harbour Federation Trust

Executive Director Mr Geoff Bailey P0 Box 607 Mosman NSW 2088 Tel: (02) 8969 2100 Fax: (02) 8969 2120

Office of the Renewable Energy Regulator

Mr David Rossiter P0 Box 621 Canberra ACT 2601 Tel: (02) 6274 1436 Fax: (02) 6274 1725

(a) On 18 July 2004 Senator the Hon Ian Campbell was sworn in as Minister for the Environment and Heritage.

(b) As part of a joint arrangement, there are additional teams working on natural resource management programmes in the Department of Agriculture, Fisheries and Forestry.

12 Department of the Environment and Heritage Annual Report 2003-04

Departmental overview

Overview

Visiting Deputy Secretary Ms Donna Petrachenko Tel: (02) 6274 2809 Fax: (02) 6274 1858

Corporate Strategies Division

Policy Coordination and Environment Protection Division

Heritage Division Approvals and Wildlife

Division

First Assistant Secretary (Chief Information Officer) Mr David Anderson Tel: (02) 6274 1555 Fax: (02) 6274 1552

People Management

Assistant Secretary Mr Keith Fairbrother Tel: (02) 6274 1250 Fax: (02) 6274 1245

Knowledge Management and Education

Assistant Secretary Mr Peter Woods Tel: (02) 6274 1198 Fax: (02) 6274 2510

Financial Management

(Chief Finance Officer) Assistant Secretary Mr Stephen Mayes Tel: (02) 6274 1566 Fax: (02) 6274 1110

First Assistant Secretary

Mr Phillip Glyde Tel: (02) 6274 1590 Fax: (02) 6274 1940

Environment Standards

Assistant Secretary Mr Peter Burnett Tel: (02) 6274 1400 Fax: (02) 6274 1172

Communications and International

Assistant Secretary Mr Kevin Keeffe Tel: (02) 6274 1072 Fax: (02) 6274 1858

Environment Protection

Assistant Secretary Mr Mark Hyman Tel: (02) 6274 1622 Fax: (02) 6274 1164

Policy Development

Assistant Secretary Ms Kathleen Mackie Tel: (02) 6274 2722 Fax: (02) 6274 1322

First Assistant Secretary

Mr Bruce Leaver Tel: (02) 6274 2121 Fax: (02) 6274 2095

Heritage Assessment

Assistant Secretary Dr Barry Reville Tel: (02) 6274 2156 Fax (02) 6274 2095

Heritage Management

Assistant Secretary Ms Alison Russell-French Tel: (02) 6274 2015 Fax: (02) 6274 2095

First Assistant Secretary

Mr Gerard Early Tel: (02) 6274 1077 Fax: (02) 6274 1600

Environment Assessment and Approvals

Assistant Secretary Mr Malcolm Forbes Tel: (02) 6274 1444 Fax: (02) 6274 1607

Policy and Compliance

Assistant Secretary Mr Mark Flanigan Tel: (02) 6274 1052 Fax: (02) 6274 1607

Wildlife Conservation

Assistant Secretary Ms Anne-Marie Delahunt Tel: (02) 6274 2240 Fax: (02) 6274 1600

Wildlife Trade and Sustainable Fisheries

Assistant Secretary Mr Ian Cresswell Tel: (02) 6274 1224 Fax: (02) 6274 1006

Executive agencies

Australian Greenhouse Office

Chief Executive Mr Howard Bamsey GPO Box 621

Canberra ACT 2601 Tel: (02)6274 1815 Fax: (02) 6274 1790

Bureau of Meteorology

Director Dr Geoff Love GPO Box 1289K Melbourne VIC 3001 Tel: (03) 9669 4558 Fax: (03) 9669 4548

National Oceans Office

Director Mr Max Kitchell GPO Box 2139 Hobart TAS 7001 Tel: (03) 6221 5026 Fax: (03) 6221 5050

About this part of the annual report

This part reports On: â¢ progress towards Outcome 1 (Environment—see p.19);

â¢ progress towards Outcome 2 (Antarctica—see p.137); â¢ the Department's financial results (see p.189); â¢ the Department's purchaser-provider arrangements (which are agreements with other Australian Government agencies engaged in work to support the

Department's outcomes—see p.195); and â¢ resources allocated to deliver the Department's outputs (see especially Tables 66 and 67).

The sections reporting progress towards Outcomes I and 2 each include a summary of key achievements followed by a more detailed report on performance.

Tables are used to compare the Department's management of appropriations with the performance information set out in the Portfolio Budget Statements 2003-2004 Environment and Heritage Portfolio. The tables show three amounts to explain the funds needed to deliver the Department's outputs:

1. The estimated price set out in the portfolio budget statements at the beginning of the financial year. 2. Where applicable, the revised price, which was the full-year budget at the end of the financial year. Budgets were adjusted during the financial year (for example,

through the additional estimates and supplementary additional estimates processes). They were also adjusted for actual revenue received from other sources, and revised output allocations. 3. The actual expenses during 2003-04, which set out what was spent during

the financial year. This may differ from the revised price due to changes in the Department's structure and reallocation of funding to other functions.

Footnotes are used to explain any significant differences between the budgeted prices, including any revisions, and actual expenses.

The words 'Natural Heritage Trust national investment' are used to indicate projects that were funded by the 'national investment stream' of the Natural Heritage Trust.

16 Department of the Environment and Heritage Annual Report 2003-04

Review of performance

Use of performance information

The performance information in the portfolio budget statements reflects the structure and programmes of the Department in April 2003. In July 2003 the Department underwent a restructure. Some functions listed under Outcome 1 in the portfolio budget statements were assigned to the National Oceans Office and the Australian Antarctic Division. The Natural Heritage Division was renamed and its functions redistributed.

Consequently not all the performance information shown in the tables in this part of the annual report aligns exactly with the Department's activities during 2003-04. The additional estimates process did not change this performance information.

During 2003-04 the Department revised its performance information. The changes appear in the Portfolio Budget Statements 2004-2005 Environment and Heritage Portfolio. The Department's annual report for 2004-05 will report against the revised performance information.

Although the Department reviews the performance of its programmes each year, it can take many years to detect changes in the environment as a result of these programmes. Even then it may be difficult to decide how much change can be attributed to government action, and how much to other agents or natural causes.

The environment, especially those aspects

that are matters of national environmental significance, is protected and conserved

Progress towards Outcome 1 This section summarises overall progress towards Outcome 1.

Protecting the atmosphere

â¢ The State of the Air Report showed that levels of four key pollutants—lead, carbon monoxide, sulphur dioxide and nitrogen dioxide—have been reduced to well below the national standards in major urban centres, including the capital cities. However, the report showed no similar reduction is evident in the levels of two other pollutants ozone and particle levels. The Department is working with state and territory agencies to address these priority pollutants. â¢ Work continued on fuel quality standards, which, together with complementary

vehicle emission standards, are predicted to cut vehicle emissions of some pollutants by up to 60 per cent in the period from 2000 to 2020. Since the Fuel Quality Standards Act 2000 came into force, fuel sulphur levels have reduced significantly. In 1999, diesel sulphur content was around 1300 parts per million

on average. Under the Act this sulphur content was reduced to 500 parts

per million in December 2002, and will further reduce to 50 parts per million from 1 January 2006, and to 10 parts per million from 1 January 2009. Sulphur levels in premium unleaded petrol will reduce from the current level of 150 parts per million to 50 parts per million from 1 January 2008. â¢ Australia continued to contribute to international efforts to restore the earth's

ozone layer. Australia met or exceeded its obligations to phase out the use of ozone depleting substances under the Montreal Protocol and extended its supply and end-use controls to synthetic greenhouse gases to help reduce climate change impacts. In 2003-04, 504.4 tonnes of ozone depleting substances were imported into Australia. This represented a decrease of 58.4 tonnes from 2002-03.

Conserving and managing biodiversity

The Department aims to protect wildlife and their habitats, and works to ensure that Australia's use of biological resources is ecologically sustainable. During 2003-04:

â¢ Australia continued to lead international efforts to protect biodiversity. The Department nominated the Great White Shark under the Convention on the International Trade in Endangered Species of Fauna and Flora. If successful, this will protect these sharks globally from unregulated trade. â¢ The Australian Government continued to improve national strategies for

conserving biodiversity. Current efforts are aimed at all three levels of biodiversity—genetic diversity, species diversity and ecosystem diversity. â¢ Biodiversity conservation continued to underpin agreements for delivering funding under the Natural Heritage Trust and the National Action Plan for Salinity

and Water Quality. Through the framework for the extension of the Natural Heritage Trust, state and territory governments have agreed to: - prevent all clearing of endangered and vulnerable vegetation communities and critical habitats for threatened species; and

limit broad-scale clearing to those areas where regional biodiversity objectives are not compromised. â¢ The Department administered Australian Government expenditure totalling $99.208 million on environmental work under the Natural Heritage Trust's

Bushcare programme. â¢ The Australian Government's independent Threatened Species Scientific Committee, in consultation with biodiversity conservation experts, identified 15 national biodiversity 'hotspots'. The hotspots will help target funding and

hence slow down environmental damage.

20 Department of the Environment and Heritage Annual Report 2003-04

Progress towards Outcome 1

- Environment Review of performance

â¢ Work on controlling invasive species continued. Over recent years, Australian

Government support has led to successes in combating invasive terrestrial and freshwater species, particularly in world heritage areas and Commonwealth reserves. They include virtual elimination of Mimosa pigra and African big-headed ants from Kakadu National Park, control of crazy ants on Christmas

Island, and the eradication of feral cats from Macquarie Island. â¢ Wildlife smuggling cases referred by the Department to the Director of Public Prosecutions resulted in the prosecution of people who had attempted to export stag beetles, native birds and reptiles, and to import exotic bird eggs. â¢ As at 30 June 2004, over 700 nationally threatened species and ecological

communities had recovery plans in place or in preparation under the Environment Protection and Biodiversity Conservation Act 1999. â¢ Work continued on the development and implementation of market-based incentives for biodiversity conservation. In particular, the Department continued

covenanting land using revolving funds (funds used to buy land of conservation or cultural significance and resell it after placing a conservation covenant on it). As at 30 June 2004, 41 properties had been purchased and 29 of these resold with conservation agreements in place. â¢ Individuals and community groups continued to play an important role in

conserving biological diversity through direct involvement in activities such as tree planting, weed eradication, surveying and monitoring. Some 1600 Landcare and similar community-based groups now exist in Australia, proving extremely

effective in disseminating information and in the adoption of ecologically sustainable natural resource management in the rural sector. To promote community awareness, the Department continued to support information networks and to produce and disseminate relevant information. â¢ The Australian Biological Resources Study continued to expand the biodiversity

information available to natural resource managers and to the community. Since its inception, the study's grants and scholarships have resulted in more than 2000 research papers and 132 volumes on Australia's biodiversity.

Protecting and managing coasts and oceans

The Department contributes to the ecologically sustainable management of Australia's coasts and oceans. During 2003-04:

â¢ Work to implement the national approach to management of the coastal zone began. Other work to protect coastal water quality in priority areas and to control introduced marine pests continued. Australia continued to lead the world in protecting and conserving migratory waterbirds and their habitats. â¢ The Department administered Australian Government expenditure totalling

$35880 million on environmental work under the Natural Heritage Trust's Coastcare programme.

â¢ The Department completed 19 fisheries assessments, bringing the total number

of assessments completed to 38. The total number of fisheries requiring assessment was estimated to be 118 as at 30 June 2004. The assessment process is helping to shift the focus of fisheries management away from preserving target species towards maintaining entire ecosystems. â¢ Research and threat abatement planning continued, contributing to the

conservation of marine wildlife. â¢ Work on establishing and managing marine protected areas continued. Since 1996, the Australian Government has added 25 million hectares to the National Representative System of Marine Protected Areas.

Managing environmental assessments and approvals

The Department administers the referral, assessment and approval provisions of the Environment Protection and Biodiversity Conservation Act 1999. During 2003-04:

â¢ The Department prosecuted its first successful civil action for a breach of the environmental approvals part of the Environment Protection and Biodiversity Conservation Act 1999 relating to a Ramsar site.

â¢ It was apparent that the referral, assessment and approvals process faces increasing pressure due to: - the number, complexity and sensitivity of development proposals that must be dealt with; - increasing public expectations about the manner of protecting matters of

national environmental significance; and - an increasing number of reported non-compliance incidents that require compliance and enforcement action. â¢ It was also apparent that ongoing post-approval requirements (for construction

plans and environment management plans, monitoring, and audits) have significantly increased the volume of tasks the Department must do to fulfil its responsibilities as a regulator. â¢ The matter of Ministerfor the Environment and Heritage v Queensland

Conservation Council I nc, which was the Minister's appeal from the decision of Kiefel J in the 'Nathan Dam case', was concluded. In its July 2004 decision, the Federal Court confirmed the breadth of enquiry that needs to be undertaken under the Act in determining what actions require approval. This decision is expected to increase the scope and number of actions that will need assessment under the Act.

22 Department of the Environment and Heritage Annual Report 2003-04

Progress towards Outcome 1 - Environment

Review of performance

â¢ The Department upgraded the web site's search tool for matters of national environmental significance. It now includes a local government area search capability, and covers matters such as Commonwealth lands, Commonwealth heritage places and places on the Register of the National Estate.

â¢ Understanding of the Act was promoted through a range of information products. The Department also met with other Australian Government agencies, state and territory officials, Indigenous stakeholders, and industry and community groups to explain how the Act operates (a Natural Heritage Trust

national investment).

Protecting and conserving our heritage

The Department identifies, protects and conserves natural and cultural heritage, including Indigenous and historic heritage.

â¢ The Environment Protection and Biodiversity Conservation Act 1999 was amended. With the development of the new National Heritage and Commonwealth Heritage Lists, the amendments will improve the protection of heritage significantly.

â¢ The amendments supplemented the existing protection for World Heritage sites under the Act. As at 30 June 2004, Australia had 15 sites on the World Heritage List.

â¢ All World Heritage sites had full or partial management or strategic plan coverage. Compliance with the requirements of the Act for World Heritage management plans will be a key consideration as existing plans are reviewed and new plans developed.

â¢ Concerted efforts through 2003-04 led to World Heritage listing of the Royal Exhibition Building and Carlton Gardens in Melbourne on 1 July 2004. This site has outstanding cultural value as the best surviving example of the international exhibition movement of the 191h and early 201 centuries.

â¢ In addition, the Department's initiatives continued to contribute to the protection of Australia's historic shipwrecks, Indigenous heritage and movable cultural heritage.

â¢ The Department's administration of funds to support heritage conservation was effective. Administered funds supported the conservation of significant cultural heritage, the restoration of cathedrals in Melbourne and Perth, protection of Boobera Lagoon in New South Wales, the preservation of historic hotels, and National Trust activities.

Improving the environmental performance of Australian

industry

The Department works with all levels of government, the community and industry to minimise the impact of industrial processes on Australia's environment. During 2003-04:

â¢ The Department's efforts to improve the sustainability of industry focused on improving urban water efficiency, and supporting the work of the National Environment and Protection Council, including reducing the use of plastic bags. This work complements the voluntary efforts of industry and the regulatory activities of state and territory governments and local councils.

â¢ The Environment Protection and Heritage Council agreed to the Water Efficiency Labelling and Standards scheme in September 2003. The scheme will improve the water and energy efficiency of household appliances, thereby reducing water consumption and greenhouse emissions and saving consumers money.

â¢ The first report on the use of plastic shopping bags, for the six months to June 2004, showed supermarkets are on track to meet their 2004 target: Australian supermarket shoppers reduced the number of plastic carry bags used by over half a billion or an annualised 29 per cent of bags used for supermarket shopping. The Department will continue to monitor the reduction to the end of 2004 against the 25 per cent target.

â¢ As at 30 June 2004, the National Packaging Covenant, a partnership between Australian and state and territory governments and industry to manage packaging waste, had 649 signatories representing all sectors of the packaging supply chain. The covenant now covers more than 80 per cent of domestic products.

â¢ The National Pollutant Inventory continued to provide useful and accessible information on the pollutant emissions to the environment. The number of facilities reporting to the National Pollutant Inventory has increased steadily since 1998-99. â¢ Australia continued to contribute to international efforts to restrict the use,

production and emission of hazardous chemicals. Australia ratified the Stockholm Convention on Persistent Organic Pollutants and the Rotterdam Convention on Prior Informed Consent for International Trade in Hazardous Chemicals on 20 May 2004.

â¢ At the national level, the Department continued to advise on hazardous substances and organisms, including providing advice to regulators of agricultural, veterinary and industrial chemicals.

24 Department of the Environment and Heritage Annual Report 2003-04

Progress towards Outcome 1

- Environment

Review of performance

â¢ In May 2004, the Department released 12 technical reports describing the outcomes of studies on dioxins in the environment. This was the largest survey of dioxin levels ever undertaken in Australia. The studies showed that the dioxin levels in our food, bodies and environment are low compared with international standards. They also showed the risks posed by dioxins to human health and the

environment are low.

â¢ With the Department's support, the Environment Protection and Heritage Council launched the Internet-based National Chemical Information Gateway, which provides a simple and coordinated way to access information on chemicals at www.deh.gov.au/chemicals-gateway.

Managing inland waters

The Department develops initiatives to ensure that management of inland rivers, groundwater and inland wetlands is ecologically sustainable. During 2003-04:

â¢ Through the National Water Initiative, the Council of Australian Governments agreed to improve the security of water access entitlements, increase the productivity and efficiency of water use, and ensure the continued health of river and groundwater systems. Under the National Water Initiative, water allocated for environmental and other public benefit outcomes will, for the first time, have at least the same degree of security as water for human consumption. The environmental values of rivers, estuaries and aquifers of high conservation value will be protected through a range of measures.

â¢ In addition, the Council of Australian Governments agreed to provide $500 million to address water over-allocation and environmental objectives in the Murray-Darling Basin. Of this, the Australian Government is contributing $200 million to address water over-allocation in the basin and to support the Living Murray Initiative.

â¢ The Department continued work on the National Water Quality Management Strategy. New guidelines commenced under Phase 2 of the strategy will cover water recycling and water-sensitive urban design, helping to implement the urban component of the National Water Initiative.

â¢ The Department administered Australian Government expenditure totalling $41702 million on environmental work under the Natural Heritage Trust's Rivercare programme.

â¢ The Department improved management of nationally and internationally significant Australian wetlands, promoted wetlands conservation internationally, and supported the sustainable management of tropical river systems.

Protecting and managing the land

The Department works to ensure the management of Australia's natural and agricultural land is ecologically sustainable. During 2003-04:

â¢ The review of the National Framework for the Management and Monitoring of Australia's Native Vegetation commenced. An updated framework is expected in late 2005. â¢ The Department secured agreement to a range of commitments by state and

territory governments to improve native vegetation management. â¢ The Natural Heritage Trust Ministerial Board (which oversees Trust expenditure) and relevant state ministers accredited 33 integrated regional natural resource management plans in Victoria, South Australia and New South Wales, The

Department expects to provide the remaining 23 integrated plans for ministers to accredit during 2004 05. â¢ The Department administered Australian Government expenditure totalling $73.187 million on environmental work under the Natural Heritage Trust's

Landcare programme.

Establishing and managing protected areas

The Department supports the development of networks of protected areas (including national parks) to conserve biodiversity, protect ecosystem services and provide nature-based recreation and tourism opportunities. During 2003-04:

Twenty properties covering 291 791 hectares were added to the National Reserve System. Since 1996, the Australian Government has added 20.865 million hectares to the National Reserve System. This includes 7.075 million hectares purchased or covenanted and 13.790 million hectares declared as Indigenous Protected Areas. This area represents three per cent of Australia's mainland. The total area covered by terrestrial protected areas (including state and territory protected areas) in Australia is 77.462 million hectares or just over ten per cent of Australia's landmass. â¢ The two new Indigenous Protected Areas declared during the year took the

number of Indigenous Protected Areas to 19.

26 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment Atmosphere

I Review of performance

Protecting the atmosphere

The Department contributes to improving and protecting the air quality in Australia's cities and towns, and contributes to the international effort to restore the earth's protective ozone layer. In 2003-04, the Department worked to protect the atmosphere by implementing a range of activities related to: â¢ improving air quality; â¢ improving fuel quality; and â¢ ozone protection. Detailed reports on the operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and the Fuel Quality Standards Act 2000 are included in this annual report under 'Other reports'. The Policy Coordination and Environment Protection Division contributed to this output. 27

Air quality

Objective To improve air quality in order to protect human health and the environment.

Activities

Mr quality standards

Uniform national standards are set by the Australian Government, and state and territory governments. National standards set levels for certain air pollutants to protect human health.

Australia's first air quality standards were set in 1998 under the Ambient Air Quality National Environment Protection Measure. This measure sets national standards for six key pollutants—carbon monoxide, nitrogen dioxide, ozone, sulphur dioxide, particles and lead.

In April 2004 the Minister released the State of the Air. National Ambient Air Quality Status and Trends Report, 1991-2001. This was the first national report on trends from 1991 to 2001 in the average concentrations in urban air of the six key air pollutants. The report provides a benchmark for future assessments of air quality in Australia, and is available at www.deh.gov.au/atmosphere/airquality/status/ index.html.

In 2003-04, the Department focused on air toxics, which are pollutants at low concentrations that cause a range of health problems, including respiratory illnesses and cancer. In April, the Air Toxics National Environment Protection Measure was approved by the National Environment Protection Council. This measure

establishes national consistency in the monitoring and reporting on five air toxics— benzene, polycyclic aromatic hydrocarbons, formaldehyde, toluene and xylenes.

Fuel quality standards

Motor vehicles are the single largest contributor to urban air pollution, and have a major influence on the incidence of smog and haze.

The Australian Government has introduced national fuel quality standards. These standards make a major contribution to improved environment and health outcomes. The standards also pave the way for new and cleaner vehicle technologies which will bring fuel consumption benefits.

28 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Atmosphere

Review of performance

The fuel quality standards are made under the Fuel Quality Standards Act 2000, which is designed to improve the quality of petrol, diesel and other transport fuels sold in Australia. In 2003-04, the Department:

â¢ developed standards which will significantly reduce the sulphur levels for petrol and diesel beyond 2006;

â¢ developed new standards for biodiesel and liquefied petroleum gas; and â¢ managed a monitoring and compliance programme including appointing inspectors, sampling fuel, and testing the samples at accredited laboratories.

Reducing diesel vehicle emissions

The goal of the Diesel Vehicle Emissions National Environment Protection Measure is to reduce exhaust emissions from diesel vehicles. It aims to do this by facilitating compliance with in-service emissions standards for diesel vehicles. To implement the measure in 2003-04, the Department:

â¢ administered separate funding agreements with the Roads and Traffic Authority of New South Wales, the Brisbane City Council and the South Australian Department of Transport and Urban Planning to test and repair highly polluting vehicles; and

â¢ completed a project with the National Transport Commission to develop training that equips diesel mechanics to tune vehicles for environmental results.

The Department participated in the Prime Minister's Energy Task Force, which developed the Australian Government's Energy White Paper, Securing Australia's Energy Future. The White Paper announced measures targeting high polluting diesel vehicles, which will serve to strengthen the application of the Diesel Vehicle Emissions National Environment Protection Measure. From 1 July 2006, certain users of heavy-duty diesel vehicles will need to meet emissions performance criteria to qualify for fuel excise credits.

CycleConnect

In February 2004, the Australian Government launched the CycleConnect Programme to reduce car use through alternative transport options.

CycleConnect provides $2.4 million over two years to develop facilities that will encourage people to use public transport and bicycles instead of private motor vehicles. As a component of the Urban Environment Initiative, the Department will administer CycleConnect grants for installing over 3000 secure bicycle lockers at railway and bus stations.

Reducing woodheater pollution

Woodsmoke from woodheaters is a major source of urban air pollution during winter. The Australian Government targeted woodsmoke through the Natural Heritage Trust-funded Woodheater Replacement Programme in Launceston. Launceston has the worst woodsmoke problem of any city in Australia. The $2.05 million programme was completed inJune 2004.

Over the life of the programme $1.246 million in grants was allocated to replace 2244 woodheaters with cleaner forms of heating. The grants were complemented by public education, research and monitoring. Together with other initiatives and milder than expected weather conditions, reducing woodheater emissions led to only 18 days in 2003 when the national air quality standard for particulates was exceeded in Launceston—a 36 per cent improvement from 2001.

At the national level, an action plan was negotiated with industry to respond to findings that a majority of new woodheaters failed to comply with Australian Standard 4013. A key element in the action plan is a follow-up audit starting in September 2004 to test all woodheater models over the next two years.

Research

The Department undertook three research projects in 2003-04 to improve our understanding of air pollutants, their health impacts and to inform the development of effective management strategies.

During the 2003 winter, the Department managed a study on Unflued Gas Appliances and Air Quality in Australian Homes funded by the Natural Heritage Trust.

The study found concentrations of nitrogen dioxide in most of the 116 homes tested in Sydney, Canberra and Melbourne to be of a level likely to affect the health of asthmatics and other people sensitive to air pollutants. The Minister referred the report to state and territory health ministers and the Department will continue to work closely with health agencies to develop effective responses to this issue.

In the summer and winter months of 2003, the Department managed a study in Launceston to determine the influence of woodsmoke on exposure to selected air toxins.

The study found that personal exposure to benzene, toluene, ethyl-benzene and xylene was significantly higher during winter when woodheaters were used, including in houses that did not have woodheaters. This confirms the significance of woodsmoke as an outdoor pollutant that affects the entire community, rather than an indoor pollutant with localised effects.

30 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment Atmosphere

Review of performance

A study was commissioned to compare airborne particles in Sydney, Melbourne, Adelaide and Brisbane, in both city and suburban environments. The results of the study are expected to provide valuable information about the origins of particles in urban environments and how particle composition may affect health.

Result

The State of the Air Report showed that levels of four key pollutants—lead, carbon monoxide, sulphur dioxide and nitrogen dioxide—have been reduced to well below the national standards in major urban centres, including the capital cities. However, the report showed no similar reduction is evident in the levels of two other pollutants—ozone and particle levels. The Department is working with state and territory agencies to address these priority pollutants.

Work continued on fuel quality standards, which, together with complementary vehicle emission standards, are predicted to cut vehicle emissions of some pollutants by up to 60 per cent in the period from 2000 to 2020. Since the Fuel Quality Standards Act 2000 came into force, fuel sulphur levels have reduced significantly (see Figure 3). In 1999, diesel sulphur content was around 1300 parts

per million on average. Under the Act this sulphur content was reduced to 500 parts per million in December 2002, and will further reduce to 50 parts per million from 1 January 2006, and to 10 parts per million from 1 January 2009. Sulphur levels in premium unleaded petrol will reduce from the current level of 150 parts per million to 50 parts per million from 1 January 2008.

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Figure 3: Sulphur levels in petrol and diesel (2000-2010)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year

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32 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment

Atmosphere

Review of performance

Ozone protection

Objective To protect the stratospheric ozone layer by meeting Australia's international obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer, and by encouraging Australian industry to reduce the use of ozone depleting substances and to minimise emissions.

Activities

New legislation

During 2003-04 amendments to the Ozone Protection Act 1989 were made to:

â¢ include synthetic greenhouse gases used to replace ozone depleting substances;

â¢ provide for consistent national standards for the supply, use, storage and disposal of these substances; and â¢ implement the Beijing Amendment to the Montreal Protocol.

The Act is now called the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The Act controls the supply (import, export and manufacture) and use of ozone depleting substances and certain greenhouse gases through a licensing system.

Compliance and enforcement

The Department worked with the Australian Customs Service to halt illegal imports of refrigeration and air conditioning equipment containing, or designed to contain, chlorofluorocarbons. The Department decided not to prosecute importers who opted to de-gas and retrofit the equipment according to Australian standards, during a transition period.

Enforcement action prevented 1004 air conditioning units charged with chlorofluorocarbons from entering Australia over a four-month period, which equates to a saving of around 0.7 tonnes of chlorofluorocarbons. To increase industry awareness about illegal imports, the Department ran a national awareness campaign, including advertising and information workshops.

National Halon Bank

Halon is a major contributor to ozone depletion but it is also vital to specialised fire protection equipment and systems used in defence, aviation and shipping. The Department's National Halon Bank collects, reclaims, and supplies halon for essential uses.

In 2003-04, the bank reclaimed and repackaged halon on behalf of general aviation and shipping and the Australian defence force, and stored halon commercially on behalf of the United States Department of Defense.

The bank also destroys excess halon and other ozone depleting substances. During 2003-04 the bank destroyed 243 tonnes of ozone depleting substances, including six tonnes of mixed refrigerants imported from New Zealand.

International ozone protection activities

Australia meets or exceeds its international obligations to phase out the use of ozone depleting substances under the Montreal Protocol on Substances that Deplete the Ozone Layer. As ozone depletion is a global environmental issue, the Department uses its experience and expertise to help other countries in the region to phase out ozone depleting substances.

During 2003-04 the Department worked with the Canadian Government to help India establish a national halon banking facility, modelled on the Australian National Halon Bank. This will allow India to stop producing and importing halons.

The Department also helped eight Pacific Island countries to progress the phase Out certain ozone depleting substances in advance of their international obligations.

Result

Australia continued to contribute to international efforts to restore the earth's ozone layer. Australia met or exceeded its obligations to phase out the use of ozone depleting substances under the Montreal Protocol (see Figure 4) and extended its supply and end-use controls to synthetic greenhouse gases to help reduce climate change impacts. In 2003-04, 504.4 tonnes of ozone depleting substances were imported into Australia. This represented a decrease of 58.4 tonnes from 2002-03 (see Figure 4).

34 Department of the Environment and Heritage Annual Report 2003-04

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I I I

1997 1998 1999 2000 2001 2002 2003 2004

Outcome 1 - Environment I Atmosphere

Review of performance

Figure 4: Imports of controlled ozone depleting substances (1997-2004)

Year

Report on performance information

Tables 2 to 3 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 2: Fuel and air quality standards and ozone protection (departmental appropriation)

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met comprehensiveness of advice provided to the Minister's requirements. the Minister on fuel and air quality standards and ozone protection.'

'Number of projects approved under the One project was approved—a Diesel Diesel National Environment Protection National Environment Protection Measure Measure.' Test Facility and Vehicle Emissions Testing

Capability for South Australia—taking the number of projects under this measure to six.

'Number of enforcement actions completed Overall, test results indicate high levels of and fuel samples completed per annum compliance, with: under the National Fuel Quality Standards 822 petrol and diesel samples taken from Act 2000. approximately 400 sites nationwide

â¢ 120 compliance incident reports received

â¢ 13 briefs of evidence commenced for eventual referral to the Director of Public Prosecutions.

'Number of fuel samples tested per annum All of the 822 samples collected were tested under the National Fuel Quality Standards in 2003-04. Act 2000.'

'Percentage of [the Department's] written One hundred per cent.The Department pre-meeting objectives at Montreal Protocol ensured the Montreal Protocol's Beijing international meetings achieved.' Amendment is interpreted to promote the timely phase out of hydrochlorofluorocarb-

ons; ensured the methyl bromide phase out continues in accordance with established scientific information; secured Australia's re-election to the protocol's Implementation Committee, which monitors compliance; and promoted Australian methods for destroying ozone depleting substances.

36 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment

Atmosphere

Review of performance

Table 2 continued.

Table 3: Ozone protection (special administered appropriation)

Performance information Result

'Percentage of requests for supply of Halon One hundred per cent. for essential use met within the customer's requested timeframes.'

'The number of inspections of Halon storage A fortnightly inspection programme was tanks meets the established target.'maintained. Leak monitoring showed no unsatisfactory trends.

Appropriation Estimated priceRevised priceActual expenses

I Atmosphere—Output 1.1 $16386 million $18.016 million$16445 million (departmental)

Ozone protection (administered) $0.746 million$0.840 million $1212 million

Performance information

'The Commonwealth's obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer, including administration of the Ozone Protection Act 1989, are met.'

'Percentage of licenses issued within statutory timeframes.'

Result

Obligations were exceeded, for example hydrochlorofluorocarbon imports were below the level allowed under the protocol.

One hundred percent (516 licences issued). The Department conducts a round for licences every two years for the import of ozone depleting substances, synthetic greenhouse gases and equipment containing these substances.

Table 4: Pricing information for Tables 2 to 3

See also the summary resource tables at the end of this 'Review of performance'.

Outcome 1 - Environment Biodiversity

Conserving and managing

biodiversity The Department aims to protect wildlife and their habitats, and works to ensure that Australia's use of biological resources is ecologically sustainable. In 2003-04, the Department worked on a broad range of initiatives to protect and conserve biodiversity including: â¢ working internationally; â¢ developing and implementing national strategies; â¢ implementing national biodiversity conservation laws; and â¢ providing information to the public and opportunities for community involvement. This section reports on activities funded using the Department's appropriation for its 'biodiversity' output. For more information about the Department's biodiversity conservation activities see also: â¢ other sections of this 'Review of performance' dealing with coasts and oceans, environmental assessments and approvals, inland waters, land management, protected areas, and the Antarctic; â¢ the detailed report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 included under 'Other reports'; and â¢ the Natural Heritage Trust's annual reports at www.nht.gov.au/publications. The Land Water and Coasts Division, Natural Resource Management Policy Division, Approvals and Wildlife Division and Parks Australia contributed to this output. 38 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Biodiversity

Review of performance

International activities

Objective To work internationally to conserve biodiversity.

Activities

Australia is party to international agreements relevant to the conservation of biological diversity, including global agreements like the Convention on Biological Diversity and regional agreements to protect wildlife occurring in several countries. (For information about migratory waterbirds see the next section: 'Protecting and managing coasts and oceans'.)

In February 2004, the Department led the Australian delegation to the 7 1, Conference of the Parties to the Convention on Biological Diversity. At the

conference, Australia supported more international work to develop globally applicable indicators for countries to meet the target to 'significantly reduce the current rate of loss of biological diversity by 2010'. Australia helped to strengthen the convention's marine work programme, focusing on marine protected areas beyond national jurisdictions and on coral bleaching.

In March 2004, the Department represented Australia's interests at the 50th meeting of the Standing Committee of the Convention on the International Trade in Endangered Species of Fauna and Flora. Australia continued to promote capacity building activities in the Oceania region, and nominated the Great White Shark for listing under the convention. The Conference of the Parties to the convention will consider the nomination in October 2004.

In August 2003, the Department led the Australian delegation to the 6 1h Conference of the Parties to the United Nations Convention to Combat Desertification in Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa. Australia focused on the relationship between the Convention to Combat

Desertification and the Convention on Biological Diversity to ensure that the Joint Work Programme includes achievable objectives and does not duplicate activities in other conventions.

Result

Australia continued to lead international efforts to protect biodiversity. The Department nominated the Great White Shark under the Convention on the International Trade in Endangered Species of Fauna and Flora. If successful, this will protect these sharks globally from unregulated trade. See below for the results of Australia's domestic implementation of international biodiversity agreements.

National strategies

Objective To enhance the protection, conservation and ecologically sustainable use of biological resources.

Activities

Climate change

During the year, the Department worked with other government agencies and stakeholders to develop the National Biodiversity and Climate Change Action Plan—a key action highlighted in Australia's National Objectives and Targets for Biodiversity Conservation 2001-05. The action plan outlines ways to manage the impacts of climate change on marine and estuarine, inland aquatic and terrestrial ecosystems for the period 2004 to 2007. The Natural Resource Management Ministerial Council endorsed the plan, due for release in 2004 05.

Biodiversity hotspots

In October 2003, the Minister for Environment and Heritage announced 15 national biodiversity 'hotspots'—that is, areas rich in biodiversity but under immediate threat. Identifying biodiversity hotspots raises public awareness and improves targeting of environmental investment decisions such as Natural Heritage Trust funding. Investment in these hotspots could avert long-term and irreversible loss of

their biological values. For more information, see www.deh.gov.au/biodiversity/ hotspots.

Invasive species

In May 2004, the Natural Resource Management Ministerial Council adopted a proposal to review national arrangements for preventing and controlling invasive species. As a result, the Department is leading a high-level group that in 2005 will develop a national framework.

Concurrently, the Ministerial Council's Vertebrate Pests Committee initiated development of a national vertebrate pest strategy, and the Australian Weed Committee started the first review of the National Weed Strategy.

40 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment

Biodiversity

Review of performance

During 2003-04 the Department continued work on invasive species, including foxes, cane toads and nationally significant weeds, to improve knowledge and develop control measures (Natural Heritage Trust national investments).

The Department supported the Fox-free Tasmania project to eradicate Tasmanian fox incursion. Following a review of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) project on developing a permanent biological control agent for cane toads, additional funding was allocated to develop quicker ways to protect key habitats like Kakadu from cane toads.

The Department also managed projects for other invasive species, including phytophthora root-rot fungus, chytrid fungus, Bridal Creeper, Cabomba, Mimosa, Pond Apple, Hymenachne, Salvinia, and Alligator Weed.

For more information see www.deh.gov.au/biodiversity/invasive.

Forests

Australia's regional forest agreements protect forest reserves and meet the need for regional jobs. The Department monitors implementation of regional forest agreements to ensure the key environmental objectives of these agreements are met.

During the year, the Department worked with the Department of Agriculture, Fisheries and Forestry to develop and oversee annual reporting and five-yearly reviews of the forest agreements. The Tasmanian Regional Forest Agreement was reviewed, and as at 30 June 2004 the Australian Government was considering the review report.

Integrated natural resource management

As part of the Natural Heritage Trust and National Action Plan for Salinity and Water Quality, the Department supported the development of integrated natural resource management plans for 56 regions covering all of Australia. These plans provide the basis for spending Natural Heritage Trust and National Action Plan funds in a way that targets the key problems in each region.

As at 30 June 2004, 16 plans were accredited under the Natural Heritage Trust and 17 plans were accredited under the National Action Plan.

The Department also worked closely with the Department of Agriculture, Fisheries and Forestry on national capacity-building projects, which enhanced regional plans and increased the level of stakeholder involvement in the planning process.

For information about outcomes, see the Natural Heritage Trust's annual reports

at www.nht.gov.au/publications, and the National Action Plan's annual report at www.napswq.gov.au/publications.

Result

The Australian Government continued to improve national strategies for conserving biodiversity. Current efforts are aimed at all three levels of biodiversity—genetic diversity, species diversity and ecosystem diversity.

Biodiversity conservation continued to underpin agreements for delivering funding under the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality. Through the framework for the extension of the Natural Heritage Trust, state and territory governments have agreed to:

â¢ prevent all clearing of endangered and vulnerable vegetation communities and critical habitats for threatened species; and

â¢ limit broad-scale clearing to those areas where regional biodiversity objectives are not compromised.

The Department administered Australian Government expenditure totalling $99208 million on environmental work under the Natural Heritage Trust's Bushcare programme.

The Australian Government's independent Threatened Species Scientific Committee, in consultation with biodiversity conservation experts, identified 15 national biodiversity 'hotspots'. The hotspots will help target funding and hence slow down environmental damage.

Work on controlling invasive species continued. Over recent years, Australian Government support has led to successes in combating invasive terrestrial and freshwater species, particularly in world heritage areas and Commonwealth reserves. They include virtual elimination of Mimosa pigra and African Big-headed Ants from Kakadu National Park, control of Crazy Ants on Christmas Island, and the eradication of feral cats from Macquarie Island.

42 Department of the Environment and Heritage Annual Report 2003-04

Review of performance

Outcome 1 - Environment Biodiversity

National biodiversity conservation laws

Objective To conserve and protect biodiversity by administering the Environment Protection and Biodiversity Conservation Act 1999.

Activities

Under the Environment Protection and Biodiversity Conservation Act 1999, the Department identifies at -risk species and ecological communities, protects them from human activities (including the illegal international trade in wildlife specimens) and develops plans for their recovery. Detailed information about

2003-04 activities is contained in the report on the operation of the Act included under 'Other reports'.

Wildlife protection and trade

The Department issues permits for the import and export of wildlife and wildlife products, and works with the Australian Customs Service to fight illegal wildlife trade. The Department's investigations into illegal wildlife trade incidents led to successful prosecutions. In addition, the Department continued to provide external

advice and training about wildlife protection laws.

Threat abatement

During the year, the Department continued to develop threat abatement plans for amphibian chytrid fungus, feral pigs, and the psittacine circovirus (parrot beak and feather disease). The Department also started work on threat abatement plans for red imported Fire Ants and harmful marine debris. These projects were Natural

Heritage Trust national investments.

Threat abatement plans set out the actions needed to reduce the impact of a listed key threatening process on a threatened species or ecological community. A listed key threatening process is a process that:

â¢ threatens or may threaten the survival, abundance or evolutionary development of a native species or ecological community (an example is predation by the European Red Fox); and â¢ is listed under the Environment Protection and Biodiversity Conservation

Act 1999.

Species recovery

The Department worked with the South Australian Department for Environment and Heritage to reintroduce a sub-species of the Tammar Wallaby that was long extinct on the South Australian mainland (a Natural Heritage Trust national investment). The wallabies came from Kawau Island in New Zealand, where their forebears were shipped over a century ago.

The Department continued to implement recovery plans for other threatened species, including the Orange-bellied Parrot, the Swift Parrot, the Regent Honeyeater, the Northern Hairy-nosed Wombat, and stream frogs of south-east Queensland (Natural Heritage Trust national investments).

Recovery plans set out the actions needed to support the recovery of threatened species and ecological communities that are listed under the Environment Protection and Biodiversity Conservation Act 1999. The aim of a recovery plan is to maximise the long term survival in the wild of a threatened species or ecological community.

On advice from the Department, the Minister brought into force 23 recovery plans (a Natural Heritage Trust national investment) covering 27 terrestrial species listed under the Environment Protection and Biodiversity Conservation Act 1999. The species covered included the Norfolk Island Green Parrot, Coxen's Fig Parrot, the Southern Corroboree Frog, the Tallong Midge Orchid, Woolcock's Spider Orchid, and the Black-eared Miner bird.

In 2003-04, the Department also submitted 35 recovery plans covering 47 species to the Threatened Species Scientific Committee (one of the expert advisory committees established by the Environment Protection and Biodiversity Conservation Act 1999), which advised the Minister about making and adopting these plans.

The Minister added land critical to the survival of Black-eared Miner birds to the Register of Critical Habitat under section 207A of the Act. Over 95 per cent of known colonies of black-eared miners occur on this land, at Gluepot Reserve, Taylorville Station and Calperum Station in South Australia.

Integrated natural resource management

The Department explored ways to integrate various approaches to threatened species recovery and threat abatement at a regional level. The South Coast of Western Australia regional body and the Western Australian Department of Conservation and Land Management were contracted to trial a plan for the South Coast Natural Resource Management Region. The plan will combine threat reduction with species conservation activities and account for climate change (a Natural Heritage Trust national investment).

44 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Biodiversity

Review of performance

Results

Wildlife smuggling cases referred by the Department to the Director of Public Prosecutions resulted in the prosecution of people who had attempted to export stag beetles, native birds and reptiles, and to import exotic bird eggs.

As at 30 June 2004, over 700 nationally threatened species and ecological communities had recovery plans in place or in preparation under the Environment Protection and Biodiversity Conservation Act 1999.

Community involvement and information

Objective To encourage Australian communities to protect and conserve biodiversity.

Activities

Community involvement

During 2003-04 the Department continued to develop and implement incentives to accelerate behavioural changes that will protect biodiversity.

In a Natural Heritage Trust national investment project, the Department funded three workshops run by the Bureau of Rural Sciences and the CSIRO in the Ballina and central coast regions in New South Wales and the Macedon Shire in Victoria. Workshop participants included 'lifestyle' landholders, recent retirees and landholders involved in new rural industries. The workshops explored the factors that motivate people to buy properties and their attitudes towards environmental philanthropy. The aim was to identify what kinds of incentives would encourage landholders to manage their land for conservation. A report on the workshops is due for release in the first half of 2004 05.

Also under the Natural Heritage Trust, the Department has provided seed funding for 'revolving funds' in Victoria, Western Australia, South Australia and New South Wales, and continued to manage contracts for these funds during 2003-04. The funds are managed by specialist non-government organisations in each jurisdiction.

The organisations purchase high conservation value land, place a conservation covenant over the land, and resell it to people who are committed to managing the land for conservation.

The Department took a lead role in negotiating new tax arrangements to allow

landowners to claim income tax deductions if their land significantly drops in value after signing a 'conservation covenant' with state, territory and local governments, unless the landowner was paid to sign the covenant.

To provide land managers with information on market-based incentives for conserving biodiversity, the Department also developed and distributed a brochure on covenants and tax incentives (a Natural Heritage Trust national investment).

A survey of BUSH magazine readers was conducted in April 2004. The magazine (a Natural Heritage Trust national investment) helps Australians make better decisions about biodiversity conservation and encourages sustainable farm management practices. The survey found the magazine has contributed to positive changes in the way readers manage their land, increased understanding of government programmes and policies, and increased participation in Natural Heritage Trust activities.

The Department continued to co-sponsor the Threatened Species Network with WWF Australia, and the Threatened Bird Network with Birds Australia (Natural Heritage Trust national investments). These networks harness community power to carry out wildlife conservation projects and give the community access to skills, advice and support.

Development of web-based information resources continued, in particular the National Vegetation Information System available at www.deh.gov.au/erin/nvis (a Natural Heritage Trust national investment).

Australian Biological Resources Study

In 2003-04, the Australian Biological Resources Study (whose grants component is an administered item managed by the Department) published seven books— including a new volume of the Flora of Australia series. A strong emphasis was given to providing online information, including further development of electronic databases, which can be accessed at www.deh.gov.au/biodiversity/abrs.

Compiled as part of the study, the Australian Biodiversity Information Facility is a web-based source of taxonomic and biological information for all known Australian fauna, flora and other organisms. The fauna database (the Australian Fauna! Directory) now delivers information on 56 303 species. In March 2004, Flora

of Australia Online was launched—the world's first, national, online, interactive taxonomic data resource for flora that allows flexible user-defined searching.

The Australian Biodiversity Information Facility also provides links to other databases that have been developed and updated in collaboration with the Australian Biological

46 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Biodiversity

Review of performance

Resources Study, such as the Australian Marine Algal Name Index, the Interactive Catalogue of Australian Fungi, and the Australian Plant Name Index.

During the year, the study continued to be involved in the development of Australia's Virtual Herbarium (a Natural Heritage Trust national investment) and the Online Zoological Collections of Australian Museums web portal. The study also contributed to the Australian Plant Pests Database for the Department of Agriculture, Fisheries and Forestry.

The Australian Biological Resources Study has developed an Australian participant 'node' for the Global Biodiversity Information Facility. In 2003-04, it continued to contribute actively to this international organisation. Together with international colleagues from the Asia-Oceania region, progress was also made towards organising the 2nd Regional Workshop for the Global Taxonomic Initiative, a

programme established under the Convention on Biological Diversity.

Result

Work continued on the development and implementation of market-based incentives for biodiversity conservation. In particular, the Department continued covenanting land using revolving funds (funds used to buy land of conservation or cultural significance and resell it after placing a conservation covenant on it).

As at 30 June 2004, 41 properties had been purchased and 29 of these resold with conservation agreements in place.

Individuals and community groups continued to play an important role in conserving biological diversity through direct involvement in activities such as tree planting, weed eradication, surveying and monitoring. Some 1600 Landcare and similar community-based groups now exist in Australia, proving extremely effective

in disseminating information and in the adoption of ecologically sustainable natural resource management in the rural sector. To promote community awareness, the Department continued to support information networks and to produce and disseminate relevant information.

The Australian Biological Resources Study continued to expand the biodiversity information available to natural resource managers and to the community. Since its inception, the study's grants and scholarships have resulted in more than 2000 research papers and 132 volumes on Australia's biodiversity.

'Accuracy, timeliness and

comprehensiveness of advice provided to the Minister on biodiversity matters.'

'Extent to which new information and studies oriented to biodiversity content are instigated, commissioned and communicated.'

Report on performance information

Tables 5 to 7 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 5: Biodiversity (departmental appropriation)

Performance information

'Extent that biodiversity conservation objectives and requirements are included in the Natural Heritage Trust projects, Commonwealth Natural Resource Management (NRM) policies and Commonwealth/State Agreements! Arrangements.'

Result

Timeframes were met and policy advice met the Minister's requirements.

The Department commissioned a number of studies through Natural Heritage Trust national investment projects that provide new information on biodiversity conservation. The Department communicates the outcomes of this research through its web site at www.deh.gov.au .

Most regional public investment is made within the context of accredited regional plans that must include biodiversity conservation (see also the information about the National Action Plan for Salinity and Water Quality below).The Trust's regional competitive component provides for specific investment in conservation actions in biodiversity hotspots.

'Extent to which international agreements and national strategies are implemented through domestic programmes.'

Australia met and exceeded its obligations to the Convention on Biological Diversity and the Convention to Combat Desertification through implementation of key national legislation and policies, including:

â¢ the Environment Protection and Biodiversity Conservation Act 1999;

â¢ the Natural Heritage Trust; and

â¢ regional forest agreements.

The Department, in collaboration with other agencies and organisations, reports every two years on Australia's progress in meeting the requirements of these conventions. The next reports for the Convention on Biological Diversity and the Convention to Combat Desertification are due in 2004-05.

48 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 -

Table 5 continued.

Performance information

Environment Biodiversity

Review of performance

Result

'Extent to which conservation and recovery activities funded, contribute to the recovery of listed threatened species and communities.'

Twenty-three recovery plans, covering 27 listed terrestrial species, were brought into force in 2003-04.The on-ground impacts of these plans on species recovery will be monitored as part of the National

Natural Resource Management Monitoring and Evaluation Strategy.

'Extent to which Australia's strategic objectives are achieved at international fora.'

'Information about biodiversity strategies and conventions is readily accessible to the Australian community.'

'Extent to which bilateral and regional agreements for the National Action Plan for Salinity and Water Quality include targets and standards for biodiversity and natural resource management.'

With the exception of invasive alien species, Australia met all its strategic objectives at the Conference of the Parties to the Convention on Biological Diversity and the 6th Conference of the Parties to the Convention to Combat Desertification, particularly by strengthening the international marine conservation agenda, promoting adoption of the Bonn Guidelines on genetic resources, and clarifying the linkages between the Convention to Combat Desertification and other

conventions.

The Department's web site and hard copy publications provided up-to-date information on domestic and international activities (see also information on the range and scope of education and information

products below).

All agreements include or require the development of biodiversity standards and targets. Agreed accreditation criteria for regional plans include requirements for biodiversity standards and targets.

Table 5 continued...

Performance information Result

'Behavioural change in communities and uptake of native vegetation management best practice.'

'Number of covenants and management agreements in place protecting remnant vegetation as a result of Natural Heritage Division programmes.'

The Department promoted behavioural change by:

supporting 'revolving funds' in Victoria, Western Australia, South Australia and New South Wales;

supplying 4500 brochures on covenants and related tax incentives to over 50 organisations and individuals; and

holding three major workshops in New South Wales and Victoria that successfully identified possible incentives for conservation.

A survey of BUSH magazine readers concluded that the magazine contributed to positive changes in land management.

In 2003-04,210 perpetual covenants came into operation, protecting 101 538 hectares (the number of covenants for 2002-03 was estimated at 427 covering 54 567 hectares). As at 30 June 2004 there were 2492 covenants protecting 786 880 hectares, with a further 2427 statutory property agreements protecting 170 900 hectares over periods typically from 15 to 30 years. Figures for 2004-05 are expected to be similar to those for 2003-04. These figures do not include various types of agreement used to secure Natural Heritage Trust funding or made under the Environment Protection and Biodiversity Conservation Act

1999. Many covenants are supported by Natural Heritage Trust funding or Australian Government tax incentives.

50 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Biodiversity

Review of performance

Table COflhil?IK(/..

Performance information Result

Range and scope of education and information products relating to biodiversity.'

The Department delivered a wide range of information on education products through the Natural Heritage Trust national investment stream, including:

Internet (National Land and Water Resource Atlas, Environment Reporting Tool) access to national and regional assessments, and map data relevant to

biodiversity, such as native vegetation, landscape health, terrestrial biodiversity, and important wetlands;

an Internet-based Biodiversity Tool box for local governments;

â¢ weed management guides and a manual for landholders, conservation groups, catchment management groups, industry, and on-ground government land managers;

â¢ around 4500 brochures on covenants and related tax incentives supplied to over 50 organisations and individuals, and a more detailed booklet on financial implications for landholders;

â¢ the biannual BUSH insert in Australian Farm Journal and six Bushcare pages in Australian Landcare to encourage ecologically sustainable land management practices; and

the fifth annual Hands on for Habitat Awards to engage 6 to 12 year-olds (the Department distributed 1208 teachers' resource kits to schools in all states and territories and processed 214 entries from 3960 students at 187 schools).

The Department also:

â¢ published supplements in the Canberra Times and regional newspapers to raise awareness of threatened species; and

â¢ supplied 5000 school information kits to coincide with Threatened Species Day (7 September 2003).

5 contiiiied...

Performance information Result

'Native vegetation management and restoration training activities undertaken under Natural Heritage Division programmes:

number held

number of participants.'

Note that all these activities are funded by the regional stream of the Natural Heritage Trust, with the exception of a contract with Greening Australia. For information, see the Natural Heritage Trust's 2003-04 annual reports at www.nht.gov.au/publications.

This division was restructured at the beginning of 2003-04, and its functions distributed to other divisions.

Table 6: Wildlife protection and tr ade(a) (departmental appropriation)

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met

comprehensiveness of advice provided the Minister's requirements. to the Minister on wildlife protection and trade.'

'Extent to which international agreements The Environment Protection and Biodiversity and national strategies related to wildlife Conservation Act 1999 implements are implemented through domestic agreements and strategies. In 2003-04, programmes.' 4252 seizure notices were issued.A number

of prosecutions were launched leading to successful convictions.

'Extent to which Australia's strategic wildlife No Conference of the Parties was held in objectives are achieved at international 2003-04, but Australia pursued South Pacific Convention on International Trade in regional capacity building activities and Endangered Species of Wild Flora and Fauna nominated the Great White Shark for listing (CITES) meetings.' at the October 2004 Conference of the

Parties.

'The information about species and wildlife The Department's web site continued legislation, strategies and conventions, to provide guidance and hard copy that is readily accessible to the Australian publications were also available. community.'

'Number of species and ecological The Threatened Species Scientific communities considered for listing or Committee provided advice to the Minister change of status by the Threatened Species on 56 species. Scientific Committee.'

52 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment

Biodiversity

Review of performance

Table 6 coitititued...

See also the report on the operation of the Environment Protection and Biodiversity Conservation Act 1999in this annual report.

Table 7: Australian Biological Resources Study participatory grants

programme (administered appropriation)

Performance information Result

'Number and types of education and - The Department maintained a web site information products relating to wildlife about wildlife trade laws (www.deh.gov.au/ protection and conservation.'& biodiversity/trade-use), supplied printed guides and presented around 40 training

sessions to importers of live animals, the domestic pet industry and to approximately 600 staff of the Australian Customs Service and state wildlife agencies, and also

supplied an interactive CD-ROM to Customs officers.

'Level of usage by clients and stakeholders There were approximately 16 500 visits of information provided on the Wildlife to the wildlife trade pages over May, June website.' and July 2004 or (extrapolating from these

figures) around 66000 visits per year.

'Number of wildlife trade permits granted During 2003-04,4000 wildlife trade permits and refused under the Environmentand 55 108 personal accompanied baggage Protection and Biodiversity Conservation permits were issued and 13 were refused. (EPBC) Act.'

Performance information Result

'The Australian Biological Resource Study Research assisted the national taxonomic administered and managed according to effort in support of the Australian best practice, and supporting taxonomic Government's national research priorities, investigations into species/ecosystems of with a particular focus on lesser-known national priority.' groups.

'Number and value of grants and contracts Sixty-six taxonomic research projects for offered, funded and financially audited by $1.554 million. Other grants included one 30 June 2004!& new and three ongoing postgraduate

scholarships in taxonomy and 14 travel bursaries for postgraduate taxonomy students.

Table 8: Pricing information for Tables

5 to 7(a)

See also the summary resource tables at the end of this Review of performance'. Information about protecting biodiversity hotspots is shown in those tables,

Appropriation Estimated price Revised price Actual expenses

Biodiversity—Output 1.2 $28.523 million $32266 million $33.112 million (departmental)

Australian Biological Resources $1,825 million $1839 million $1842 million Study participatory grants programme (administered)

54 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 -

Environment 1 Coasts and oceans

Review of performance

Protecting and managing

coasts and oceans The Department contributes to the ecologically sustainable management of Australia's coasts and oceans. In 2003-04, the Department worked to protect the coasts and oceans by: â¢ working on a national approach to coastal management; â¢ working on ways to address threats to coastal water quality; â¢ protecting coastal wetlands and migratory waterbirds; â¢ working on a national approach to control introduced marine pests; â¢ assessing fisheries; â¢ protecting marine wildlife and the offshore environment; and â¢ developing and managing marine protected areas. This section reports on activities funded using the Department's appropriation for its 'coasts and oceans' output. For more information about the Department's coastal and marine management activities see also: â¢ other sections of this 'Review of performance' dealing with inland waters and the Antarctic; â¢ the detailed report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 included under 'Other reports'; â¢ the Natural Heritage Trust's annual reports at www.nht.gov.au/publications; and â¢ the annual reports of the Director of National Parks at www.deh.gov.au/about/ annual-report. The Land, Water and Coasts Division and Approvals and Wildlife Division contributed to this output. 55

Coastal zone

Objective To establish a national approach to managing the coastal zone effectively— including through protecting water quality and coastal wetlands, which are important to migratory waterbirds, and controlling marine pests.

Activities

National approach to coastal management

The Department is working with state and territory agencies under the Framework for the National Cooperative Approach to Integrated Coastal Management to improve water quality, conserve biodiversity and ensure the use of coastal resources is ecologically sustainable. During 2003-04 the Department finalised the framework, which canvasses coastal issues that will benefit from a national approach:

â¢ 'integrated management' of the coastal zone (management that works across the catchment-coast-ocean continuum); â¢ pollution; â¢ climate change; â¢ pest plants and animals; â¢ population change; and â¢ capacity building.

In October 2003 the Natural Resource Management Ministerial Council endorsed the framework. The Department is developing an implementation plan, in consultation with state agencies and other stakeholders.

In addition, under the Natural Heritage Trust, integrated natural resource management plans are being developed across Australia. Improving and protecting the coastal and marine environment is an objective of the plans in coastal regions.

Coastal water quality

The Australian Government's Coastal Catchments Initiative seeks to reduce pollutant discharges into coastal water at 'water quality hotspots'. Under this initiative the Natural Heritage Trust provided $3.9 million in 2003-04 to develop plans and projects to improve coastal water quality. Initial project work was at Adelaide's Port Waterways, the Peel Inlet and Harvey Estuary System, the Derwent

Estuary and Douglas Shire waterways.

56 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Coasts and oceans

Review of performance

A particular priority has been to protect the coast adjacent to the Great Barrier Reef. The Department worked with managers and stakeholders, including Queensland government agencies, to develop and implement the Reef Water Quality Protection Plan. The plan aims to halt and reverse the decline in the quality of water entering the reef, within ten years.

The Department also administered two specific projects to improve coastal water quality by installing wastewater treatment plants and reticulated sewerage systems at Boat Harbour and Sisters Beach in north west Tasmania.

Coastal wetlands and migratory waterbirds

The Department managed the Great Barrier Reef Coastal Wetlands Protection Programme, which aims to protect and restore coastal wetlands in catchments adjacent to the Great Barrier Reef, consistent with the Reef Water Quality Protection Plan. The Department began developing a decision support system, and obtained

information about targeting future investment through a review of wetland conservation programmes and incentives.

As an outcome of the World Summit on Sustainable Development, Australia and Japan worked to strengthen international cooperation on migratory waterbird conservation in the Asia—Pacific region, and Australia continued to work with the Republic of Korea to finalise a formal bilateral agreement on migratory birds.

Migratory birds are protected under the Environment Protection and Biodiversity Conservation Act 1999. The list of migratory birds protected by the Act was derived from the Bonn Convention, which protects migratory species, and from agreements with China and Japan. The Department continued to work with the governments of China and Japan to define which species are considered migratory.

Work continued on a Wildlife Conservation Plan for Migratory Shorebirds. This plan will set out actions needed to support the survival of species listed under the Environment Protection and Biodiversity Conservation Act 1999. The Department is producing the plan in consultation with Wetlands International (a non-government organisation) and other stakeholders.

More information about wetlands appears in the section on 'Inland waters'.

Controlling marine pests

Through the Natural Resource Management Ministerial Council, the Department continued work with state and territory governments on national efforts to protect the coastal zone by controlling marine pest plants and animals.

The Department worked with the Department of Agriculture Fisheries and Forestry to develop an intergovernmental agreement designed to establish permanent arrangements for a National System for the Prevention and Management of Introduced Marine Pest Incursions (a Natural Heritage Trust national investment). Key elements of the national system are control plans for agreed marine pests of concern and a coastal ballast water management regime. The Ministerial Council is due to consider the agreement in 2004 05.

Result

Work to implement the national approach to management of the coastal zone began. Other work to protect coastal water quality in priority areas and to control introduced marine pests continued. Australia continued to lead the world in protecting and conserving migratory waterbirds and their habitats.

The Department administered Australian Government expenditure totalling $35880 million on environmental work under the Natural Heritage Trust's Coastcare programme.

Offshore environment

Objective To ensure uses of offshore resources are ecologically sustainable—including through protecting marine wildlife, and establishing and managing a system of marine protected areas.

Activities

Fisheries assessments

The Environment Protection and Biodiversity Conservation Act 1999 requires the Australian Government to assess fisheries management to ensure that it is ecologically sustainable.

58 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Coasts and oceans

Review of performance

During 2003-04, 19 assessments were completed and a further 64 fisheries were under active assessment. The assessments considered impacts on target species (fish sought by the fisheries), by-catch (other organisms caught as a result of fishing), protected species and the ecosystem as a whole. The Department made recommendations to ensure that the management of these fisheries continues to improve.

Marine wildlife conservation

In August 2003 the Minister listed 'injury and fatality to vertebrate marine life caused by ingestion of, or entanglement in, harmful marine debris' as a key threatening process under the Environment Protection and Biodiversity Conservation Act 1999. A threat abatement plan will be developed to reduce the risks of ingestion and entanglement. The Department contracted a consultant and held national stakeholder workshops in Adelaide and Brisbane to develop the threat abatement plan (a Natural Heritage Trust national investment).

The Department managed projects to determine the ranges of species that are listed under the Act including the Southern Right Whale, Blue Whale and Humpback Whale (a Natural Heritage Trust national investment).

The Department made progress in the development of recovery plans, which are required under the Act to aid in the recovery of populations of threatened marine species, including whales, fur seals and elephant seals. Implementation of Great White Shark and Grey Nurse Shark recovery plans advanced significantly during the

year. As well, a National Turtle Recovery Group was set up to address issues such as sustainable Indigenous harvesting and interactions with fisheries.

For more information, see the report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 in this annual report.

Marine protected areas

The Department continued to develop the National Representative System of Marine Protected Areas by:

â¢ working with stakeholders to identify two options for marine protected areas off south-eastern Australia (the Murray and Zeehan areas) through the National Oceans Office's regional marine planning process; â¢ developing a proposal to declare a highly protected area at the Cod Grounds

off New South Wales to protect an 'aggregation site' for the Grey Nurse Shark (a site where members of this critically endangered species are known to gather in numbers); and

â¢ resuming two expired petroleum leases, adding approximately

259 square

kilometres (12 per cent) to the total area of Ningaloo Marine Park.

These activities were a Natural Heritage Trust national investment, as was continued active management of 13 marine protected areas, 11 of which had management plans in place.

Two court cases relating to illegal commercial fishing in the Great Australian Bight Marine Park (Commonwealth Waters) were concluded successfully. These were the first civil actions by the Minister under the Environment Protection and Biodiversity Conservation Act 1999.

Management of these areas is a statutory responsibility of the Director of National Parks. For more information, see the annual reports of the Director of National Parks at www.deh.gov.au/about/annual-report, or visit the web site at www.deh.gov.au/coasts/mpa.

Displaced fishing effort

The Department worked with other government agencies to develop a policy to manage fishing effort that is displaced when marine protected areas are declared or re-zoned. The Australian Government released the policy in January 2004.

The re-zoning of the Great Barrier Reef Marine Park came into effect on 1 July 2004. It increased the area of the Marine Park closed to fishing, including commercial fishing, from 4.5 per cent to 33 per cent. The Department developed a structural adjustment package to address the impacts on fishers and related businesses affected by the re-zoning.

Result

The Department completed 19 fisheries assessments, bringing the total number of assessments completed to 38. The total number of fisheries requiring assessment was estimated to be 118 as at 30 June 2004. The assessment process is helping to shift the focus of fisheries management away from preserving target species towards maintaining entire ecosystems.

Research and threat abatement planning continued, contributing to the conservation of marine wildlife.

Work on establishing and managing marine protected areas continued. Since 1996, the Australian Government has added 25 million hectares to the National Representative System of Marine Protected Areas (see Figure 5).

60 Department of the Environment and Heritage Annual Report 2003-04

3000

Area

ro tec

te d

illio

ns o

f hec

tares

2500 -

2000 -

1500

1000 -

500 -

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Year

Outcome 1 - Environment Coasts and oceans

Review of performance

Figure 5: Marine protected area estate managed by Department (19822004)°

11) Does not include the Great Barrier Reef Marine Park.

Report on performance information

Tables 9 and 10 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 9: Conservation and sustainable use of coasts, oceans, estuaries and coastal wetlands (departmental appropriation)

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met comprehensiveness of advice provided the Minister's requirements to the Minister on the conservation and sustainable use of coasts and oceans.'

'Extent to which significant marine and The National Representative System estuarine ecosystems are protected and of Marine Protected Areas, including restored.' Commonwealth reserves, state and territory

marine protected areas and the Great Barrier Reef Marine Park, protects approximately seven per cent of Australian marine waters from the coastline to the limit of the

Exclusive Economic Zone, excluding the Antarctic Territories. Commonwealth marine protected areas (excluding the Great Barrier Reef Marine Park) protect approximately 4.2 per cent of these waters. In October 2003 the Prime Minister and the Queensland

Premier signed the Great Barrier Reef Water Quality Protection Plan.

62 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Coasts and oceans

Review of performance

Table 9 continued...

Performance information rResult

'Extent to [which] the habitat of threatened In addition to marine protected areas, marine species, ecological communities and recovery planning continues to enhance migratory birds is protected and restored.' protection and restoration of relevant habitat, in particular:

â¢ the implementation of recovery plans for a number of threatened marine species (Grey Nurse Shark, Great White Shark and marine turtle species); and

â¢ the development of recovery plans for whales (Blue Whale, Humpback Whale, Sei Whale, Fin Whale and Southern Right Whale), seals (Sub-Antarctic Fur Seal and Elephant Seal), sharks (Whale Shark) and seabirds. Protection for migratory bird habitats continues to increase, through the identification of sites of international and

national importance and the development of arrangements for their effective management.

'Extent to which fisheries assessed All assessed fisheries are required to be under the [Environment Protection and managed in an ecologically sustainable Biodiversity Conservation Act 19991 move way. Australia's fisheries assessment process towards ecologically sustainable fisheriesis demonstrating world leadership by

management practices.' shifting fisheries management away from its historical focus on preserving target species towards maintaining entire ecosystems, in line with the aims of the Convention on

Biological Diversity.

'Extent to which the introduction and Substantial progress was made in spread of introduced marine pests are implementing the National System for the prevented or controlled.' Prevention and Management of Introduced Marine Pest Incursions, which supports

the prevention, emergency management, and ongoing management and control of marine invasive pests.

Table 9 continued...

Performance information Result

'Extent to which [the Department] supports Through the Department, Australia effective global and regional protection for continued its significant cooperative biodiversity.' relationship with Japan and China on

migratory bird conservation under the Japan—Australia and China—Australia migratory bird agreements. These agreements remain an important foundation of the regional work being

undertaken to conserve migratory shorebirds.The Department continued work in the region to conserve marine turtles by actively promoting and supporting the implementation of the Indian Ocean South East Asian marine turtle memorandum of understanding.

'Extent to which [the Department] supports These functions were transferred in a international efforts for the conservation departmental restructure on 1 July 2003. and sustainable development of the oceans.'

'Extent to which the protection of coastal Protection of wetlands and migratory wetlands and migratory waterbirds is birds continued to increase through the enhanced in Australia.' identification of sites of international and national importance and development

of arrangements for their effective management.

'Extent to which the objectives of the Substantial progress was made, particularly Migratory Waterbird Conservation Strategy in the conservation of migratory are achieved.' shorebirds and habitat in the East

Asian—Australian Flyway. Work continued with the Government of Japan and Wetlands International to improve regional conservation outcomes for these species.

'The number of Commonwealth marine Thirteen marine reserves and one protected areas and conservation zones, conservation zone (excluding the Great and the proportion of those for which Barrier Reef Marine Park) have been declared management plans are in place or being in Commonwealth waters. During 2003-04 developed.' 11 of these had management plans in place.

Two marine reserves (at Elizabeth and Middleton Reefs in the Tasman Sea, and at Heard Island and the McDonald Islands in the Southern Ocean) had draft management plans near completion.

64 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Coasts and oceans

Review of performance

Table 9 continued...

Performance information Result

'Number of coastal water quality protection plans prepared and/or implemented.'

'The proportion of listed species, communities and threatening processes for which plans and/or projects have been developed.'

'Numbers of fisheries management plans and arrangements assessed under the [Environment Protection and Biodiversity Conservation Act 1999].'

Four water quality improvement plans were prepared targeting water quality hotspots at:

â¢ the Port River in Adelaide;

â¢ the Peel-Harvey estuary in Western Australia;

â¢ the Derwent estuary in Tasmania; and

â¢ the Douglas Shire at the northern end of the Great Barrier Reef.

These are due for finalisation in 2004-05.

Thirty-four marine and migratory species are listed as threatened under the Environment Protection and Biodiversity Conservation Act 1999. Recovery plans are in place for 27 per cent of the listed threatened species,

draft recovery plans have been developed for 41 per cent, and recovery plans are currently in preparation for the remaining 32 per cent. There is only one listed key threatening process for which a threat abatement plan was recommended during 2003-04 ('injury and fatality to vertebrate marine life caused by ingestion of, or entanglement in, harmful marine debris'). Preparation of this threat abatement plan has commenced.

Assessments were completed for 19 fisheries. Sixty-four other fisheries are under active assessment. As at 30 June 2004:

the total number of fisheries requiring assessment was estimated to be 118 (this total can change depending on export markets, the development of new fisheries, and the amalgamation of

existing fisheries); and

38 fisheries assessments had been

completed.

Table 9 continued...

'For information about international oceans governance issues see the National Oceans Office annual report. For information about international whale and seabird issues see the section on Outcome 2 in this annual report.

These statistics exclude listed threatened marine and migratory species that are the responsibility of the Department's Australian Antarctic Division under Outcome 2.

Table 10: Development of sewerage schemes for Boat Harbour and Sisters

Beach,Tasmania (administered appropriation)

Performance information Result

'Number of control plans developed for One control plan was previously developed established introduced marine pests.' for northern Pacific seastar (Asterias amurensis). Draft business cases developed for 11 other species, with a view to

developing additional control plans.

'Number of [Environment Protection and A total of 286 marine-related referrals Biodiversity Conservation Act 1999] referral, were considered with 54 referred actions assessment and permit actions completed.' requiring assessment and some 30 relevant permits were issued (see the Director

of National Parks annual report at at www.deh.gov.au/about/annual-report for numbers of permits issued by the Director).

'Number of sea dumping permits Eighteen permits were granted under the completed.' Environment Protection (Sea Dumping)

Act 1981 in 2003-04: eight for disposal of dredged material, one for the placement of an artificial reef, one for the disposal of a seized vessel, and eight for human burials at sea. Seven variations to permits were also

issued.This compares with ten permits (six for dredged material, two for disposal of vessels and two for human burials at sea) and five variations in 2002-03.

Performance information Result

'Extent to which project will achieve Achieved, with wastewater treatment Government objectives.' facilities completed at Boat Harbour Beach, and under construction at Sisters Beach.

'Number of milestones achieved compared All milestones achieved. with those specified in the contract.'

66 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment Coasts and oceans

Review of performance

Table 11: Pricing information for Tables 9 to 10(a)

See also the summary resource tables at the end of this 'Review of performance'.

a The difference between the estimated and actual figures arose because the former Marine and Water Division was restructured. Some of its marine-related functions were redistributed to other divisions and attributed to other outputs, especially the 'environmental assessments and approvals' output (see Table 14) and the 'parks and reserves' output (see Table 37).

Appropriation Estimated price Revised price Actual expenses

Coasts and oceans— $11715 million $3.631 million $1473 million Output 1.3 (departmental)

Development of sewerage$1000 million $1.000 million $ 1.000 million schemes for Boat Harbour and Sisters Beach, Tasmania (administered)

Outcome 1 - Environment

Assessments and approvals

Review of performance

Managing environmental

assessments and approvals The Department administers the referral, assessment and approval provisions of the Environment Protection and Biodiversity Conservation Act 1999, In 2003-04, the Department: â¢ processed assessments and approvals for 'matters of national environmental significance'; and â¢ promoted understanding of the Act. A detailed report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 is included in this annual report under 'Other reports'. The Approvals and Wildlife Division contributed to this output. 68 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Assessments and approvals Review of performance

Matters of national environmental significance

Objective To protect the matters of national environmental significance defined in the Environment Protection and Biodiversity Conservation Act 1999.

Activities

Assessments and approvals Many types of development activities can potentially have a significant impact on matters of national environmental significance. Under the Environment Protection and Biodiversity Conservation Act 1999, these matters are:

â¢ World Heritage properties; â¢ Ramsar wetlands; â¢ nationally threatened species and ecological communities;

â¢ migratory species; â¢ Commonwealth marine areas; â¢ national heritage places; and â¢ nuclear actions.

In addition, the Environment Protection and Biodiversity Conservation Act 1999 provides controls for activities undertaken by the Australian Government or involving Commonwealth land, which can potentially have an impact on the environment.

Under the Act, the Department operates an environment assessment process. A person who proposes an action can refer the proposal to the Minister. After consulting the public and reviewing relevant information, the Minister makes decisions about:

â¢ whether the proposed action requires Ministerial approval under the Act; â¢ the method of assessing the impacts of the proposed action if it needs Ministerial approval; and â¢ whether the proposal is approved, and, if so, under what conditions.

The process is being refined continually to make it more efficient and effective, and to ensure that processes are transparent and involve the public.

During 2003-04, the Australian Government further strengthened the Act by

introducing:

â¢ a new system for protecting and managing heritage; â¢ provisions to deal with staged developments; and â¢ provisions that require actions be undertaken in the particular manner that was proposed by the proponent.

See www.deh.gov.au/epbc/about/history.

In 2003-04, the Department examined 292 proposed actions which could significantly impact on matters protected by the Act.

During 2003-04, decisions under the Act were challenged on six occasions. Legal challenge can be expected to continue until a body of legal precedent has been established.

The Department undertakes compliance and enforcement action when the necessary approvals under the Act are not obtained before carrying out an action. Compliance investigations were undertaken into 130 activities. Nine per cent of all referrals resulted from compliance matters.

The Department managed the first civil action for a breach of the environmental approvals part of the Act in the Federal Court, which found a land manager guilty for clearing and farming within the Gwydir Wetlands Ramsar site.

Promoting understanding of the Act

The Department promotes intergovernmental cooperation and works to reduce any duplication between the Australian Government and state and territory governments. As well, information, advice and assistance is given to community groups that have an interest in, or are regulated by, the Environment Protection and Biodiversity Conservation Act 1999.

During 2003-04, the Department continued to place a high priority on increasing stakeholder and public awareness of the Act. Stakeholders participated in referrals, assessments and approvals by accessing the Environment Protection and Biodiversity Conservation Act 1999 web site at www.deh.gov.au/epbc. This site contains information about all aspects of the Act, including weekly information on all matters that the Act requires to be made publicly available.

An increasing number of proponents worked with the Department to ensure they incorporated effective environment protection measures in the design and management of projects. This early engagement can reduce regulatory burden, while increasing environmental performance.

70 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Assessments and approvals

Review of performance

To bolster its capacity to investigate and prosecute environmental crime, the Department established an Environment Investigations Unit during the year. The new unit enlarges and provides leadership for the Department's core of skilled investigative officers. It took over ongoing investigations under the Act, refined investigative procedures, and improved cross-Departmental coordination.

Result

The Department prosecuted its first successful civil action for a breach of the environmental approvals part of the Environment Protection and Biodiversity Conservation Act 1999 relating to a Ramsar site.

It was apparent that the referral, assessment and approvals process faces increasing pressure due to:

â¢ the number, complexity and sensitivity of development proposals that must be dealt with; â¢ increasing public expectations about the manner of protecting matters of national environmental significance; and

â¢ an increasing number of reported non-compliance incidents that require compliance and enforcement action.

It was also apparent that ongoing post-approval requirements (for construction plans and environment management plans, monitoring, and audits) have significantly increased the volume of tasks the Department must do to fulfil its responsibilities as a regulator.

The matter of Minister for the Environment and Heritage v Queensland Conservation Council Inc, which was the Minister's appeal from the decision of Kiefel J in the 'Nathan Dam case', was concluded. In its July 2004 decision, the Federal Court confirmed the breadth of enquiry that needs to be undertaken under

the Act in determining what actions require approval. This decision is expected to increase the scope and number of actions that will need assessment under the Act.

The Department upgraded the web site's search tool for matters of national environmental significance. It now includes a local government area search capability, and covers matters such as Commonwealth lands, Commonwealth heritage places and places on the Register of the National Estate.

Understanding of the Act was promoted through a range of information products. The Department also met with other Australian Government agencies, state and territory officials, Indigenous stakeholders, and industry and community groups to explain how the Act operates (a Natural Heritage Trust national investment).

Report on performance information

Tables 12 and 13 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 12: Managing the environment protection processes under the Environment Protection and Biodiversity Conservation Act 1999 and other relevant environmental legislation(a) (departmental appropriation)

See also the report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 in this annual report.

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met comprehensiveness of advice provided the Minister's requirements. to the Minister under the [Environment Protection and Biodiversity Conservation Act 19991.'

'Percentage of statutory timeframes met. Statutory timeframes for decisions required Number of referrals under the [Environmentby the Act were met on an average of Protection and Biodiversity Conservation 84 per cent of occasions (timeframes were Act 19991. Number of decisions made on met for 86 per cent of the referral decisions,

referrals, assessment approaches and 84 per cent of the assessment decisions approvals under the [Environment Protectionand actions, and 81 per cent of the approval and Biodiversity Conservation Act 19991. decisions), with: Number of recommendations made in 292 decisions made on referrals; relation to environmental assessments under other relevant legislation.' 37 decisions made on levels of

assessment;

â¢ 27 decisions made on approvals; and

â¢ 5 recommendations made under other relevant legislation.

72 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment

Assessments and approvals

Review of performance

Table 13: Understanding of the Environment Protection and Biodiversity Conservation Act 1999 within industry, non-Government organisations and the commun ity(a) (departmental appropriation)

See also the report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 in this annual report.

Table 14: Pricing information for Tables 12 to 13(a)

See also the summary resource tables at the end of this 'Review of performance'.

Performance information Result

'The provision of useful and timely A wide range of information products information that increases stakeholder and is provided, including a web site that public awareness about environmental includes comprehensive information on the assessment and approval requirements, operation of the Act and the decisions made. resulting in more effective application Frequent face-to-face information sessions and administration of the [Environment are also held. Protection and Biodiversity Conservation

Act 19991.'

'Number of training sessions and Seminars on the operation of the Act, presentations conducted for external clients especially in relation to the new heritage and stakeholders. Level of usage by external protection arrangements were held clients and stakeholders of information in capital cities and regional centres. prepared by the Department, including the Presentations on the strategic assessment of [Environment Protection and Biodiversityfisheries were made at national workshops.

Conservation Act 19991 home page.' The Act's home page had 52974 visits.

Appropriation Estimated price Revised price Actual expenses

Environmental $10.946 million $13.878 million $14386 million assessment and approvals—Output 1.4 (departmental)

Outcome 1

- Environment 1 Heritage

Review of performance

Protecting and conserving

heritage The Department identifies, protects and conserves natural and cultural heritage, including Indigenous and historic heritage. In 2003-04, the Department worked to protect and conserve heritage by administering: â¢ national heritage laws; and â¢ grants to support heritage conservation. This section reports on activities funded using the Department's appropriation for its 'heritage' output. For more information about the Department's heritage protection activities see also: â¢ the detailed reports on the operation of the Environment Protection and Biodiversity Conservation Act 1999 (including the final report of the Australian Heritage Commission) and on the operation of the Protection of Movable Cultural Heritage Act 1986, included under 'Other reports'; and â¢ the Natural Heritage Trust's annual reports at www.nht.gov.au/publications. The Heritage Division (including the former Australian Heritage Commission) contributed to this output. 74 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment 1 Heritage

Review of performance

National heritage laws

Objective To identify, protect and conserve heritage of national significance.

Activities

New heritage system The Australian Government's previous heritage system was established by the Australian Heritage Commission Act 1975. At that time, it was Australia's only legislation protecting heritage. Today, all states and territories have heritage protection legislation and many local government bodies also identify and protect heritage.

In 1997, the Council of Australian Governments agreed that there was a need to rationalise the way the Australian Government and state and territory governments identified, protected and managed places of heritage significance. The Council accepted that the Australian Government's role should focus on protecting places of national heritage significance and on ensuring Australian Government compliance with state and territory heritage and planning laws.

Extensive consultation with government, non-government, industry groups and community bodies followed. The Department then helped to prepare and process Australian Government amendments to the Environment Protection and Biodiversity Conservation Act 1999, which came into effect on 1 January 2004. The

amendments:

â¢ protect National Heritage as a matter of national environmental significance; â¢ provide for identifying, protecting and managing places that the Australian Government owns or controls, called Commonwealth Heritage; and â¢ create a National Heritage List and a Commonwealth Heritage List, which

complement the continuing Register of the National Estate.

Under the Act the impacts of a proposed action on listed heritage must be assessed if the Minister determines that the action is a 'controlled action'.

The legislation established the Australian Heritage Council, an independent body that promotes heritage conservation and advises on listings.

The changes also saw the winding up of the portfolio's Australian Heritage Commission, whose final report covering the period 1 July 2003 to 31 December 2003 is included in this annual report as part of the report on the operation of the Environment Protection and Biodiversity Conservation Act 1999.

For more information about the new laws,

visit www.deh.gov.au/heritage/

publications/factsheets.

Identifying heritage places

The Department supported the Australian Heritage Council's assessment of 36 nominations for the new National Heritage List and 18 nominations for the new Commonwealth Heritage List.

The Minister listed on the Commonwealth Heritage List 334 Commonwealth places that were already on the Register of the National Estate.

The Department continued to work towards World Heritage listing of more of Australia's significant heritage places. This included responding to the International Council on Monuments and Sites, as that council assessed the Australian Government's nomination of the Royal Exhibition Building and Carlton Gardens in Melbourne.

The Department also consulted stakeholders to identify possible future nominations including Indigenous rock art sites, convict sites, the Sydney Opera House, Ningaloo Reef, and an extension of the Fraser Island World Heritage property.

Managing heritage places

The Department continued to advise the Australian Government and state property managers as they developed management plans for Australia's World Heritage properties, to make sure they are consistent with the Australian World Heritage Management Principles. Currently, management plans are prepared under a range of Australian Government and state and territory legislation.

The Department managed Natural Heritage Trust national investment projects that provided funding for the management of World Heritage sites by state and territory governments:

â¢ Wet Tropics of Queensland World Heritage Area ($2.7 million);

â¢ Tasmanian Wilderness World Heritage Area ($3.4 million);

â¢ strategic management support ($0567 million);

â¢ priority projects ($0.533 million); and â¢ assessments and nominations ($40 000).

Funding helped to protect and manage World Heritage sites by engaging managers, holding consultations with community, scientific and Indigenous committees, and implementing projects under agreed management plans.

76 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment Heritage Review of performance

The new heritage legislation provides for the preparation of management plans for National Heritage places in Australian Government owned or controlled areas and requires that the Government use its best endeavours to ensure a plan for managing National Heritage places in the states and territories. Heritage management principles were developed for the National Heritage List to provide the framework for future plans.

The Department advised Australian Government agencies about management plans and heritage strategies for places entered on the Commonwealth Heritage List. Many agencies alerted the Minister to management plans that had already been prepared for their heritage places. Other agencies sought advice from the Department about their responsibilities under the new legislation.

Promoting community involvement

The 'Distinctively Australian' programme underpins the new heritage system and supports the Government's legislation by engaging the community in identifying and protecting nationally significant heritage places. The Department worked to inform the community about the amendments and to promote involvement in

heritage conservation.

International activities

Australia maintained its leadership, commitment and involvement in international activities to implement the World Heritage Convention. The Department continued to host the Asia—Pacific Focal Point for World Heritage. It also assisted Australia's regional neighbours to implement the World Heritage Convention, which will help

to preserve globally significant biodiversity.

Under an agreement with the Chinese State Administration for Heritage, the Department continued to advise on master plans for two World Heritage sites in China: Mogao, and Chengde Imperial Summer Resort and Outlying Temples.

Historic shipwrecks

The majority of the more than 6500 wrecks identified in Australian waters are protected by the Historic Sbzwrecks Act 1976 The Department continued to administer the Act and to strengthen the protection of Australia's maritime heritage by developing a National Maritime Heritage Strategy. It also provided

funding assistance of $390 616 to state and territory government agencies and to the Australasian Institute for Maritime Archaeology for community education programmes and publications, wreck investigation work, register development, and historic research in support of the Act.

Aboriginal and Torres Strait Islander heritage protection

The Aboriginal and Torres Strait Island Heritage Protection Act 1984 protects and preserves areas and objects that are of particular significance to Aboriginal and Tones Strait Islander peoples from threats of injury or desecration. The Act provides for last resort protection only—state and territory governments have primary

responsibility for cultural heritage protection and have their own legislation, with the exception of Victoria. Aboriginal heritage in Victoria is protected by Part hA of the Commonwealth Act.

In 2003-04, the Department processed 21 new applications to protect eight areas and three objects under the Act. Of the 21 applications, three were withdrawn. The Department also processed eight applications that were received in the previous financial year to protect two areas.

The Department administered two long-term declarations. A declaration for Junction Waterhole near Alice Springs has been in place since 1992 and will expire in 2012. A declaration for Boobera Lagoon, an important Indigenous heritage site in northern New South Wales, near Goondiwindi in Queensland, was issued on 1 May 2002 and expired on 30 April 2004. To ensure ongoing management of heritage issues at Boobera Lagoon, a reserve trust with majority Indigenous representation was established.

Protection of movable cultural heritage

The international trade in objects that people create or collect continues to increase. The Protection of Movable Cultural Heritage Act 1986 protects objects that, if exported, would significantly diminish Australia's cultural heritage. It also allows Australia to respond to requests by foreign governments to return objects.

Under this Act during 2003-04 the Department finalised 143 export applications covering 264 objects and prepared 23 letters of clearance covering over 7260 objects. See also the report on the operation of the Act in this annual report.

Result

The Environment Protection and Biodiversity Conservation Act 1999 was amended. With the development of the new National Heritage and Commonwealth Heritage Lists, the amendments will improve the protection of heritage significantly.

The amendments supplemented the existing protection for World Heritage sites under the Act. As at 30 June 2004, Australia had 15 sites on the World Heritage List (see Figures 6 and 7).

78 Department of the Environment and Heritage Annual Report 2003-04

Heritage

Review of performance Outcome 1 - Environment

Figure 6: Area of World Heritage estate (1981-2003)

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Area

ro te

c te d

illio

ns o

f hec

ta res

)

Year

Figure 7: Number of World Heritage sites (1981-2003)

Num

ber

f s ites

16 -

14 -

12 -

10 -

8—

0 I I I I I I I I I I I

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Year

All World Heritage sites had full or partial management or strategic plan coverage.

Compliance with the requirements of the Act for World Heritage management plans will be a key consideration as existing plans are reviewed and new plans developed.

Concerted efforts through 2003-04 led to World Heritage listing of the Royal Exhibition Building and Carlton Gardens in Melbourne on 1 July 2004. This site has outstanding cultural value as the best surviving example of the international exhibition movement of the 19 " and early 20 1 centuries.

In addition, the Department's initiatives continued to contribute to the protection of Australia's historic shipwrecks, Indigenous heritage and movable cultural heritage.

Heritage grants

Objective To support the preservation and restoration of significant heritage places across Australia, and to support the National Trust's activities.

Activities

During 2003-04 the Department managed appropriations for administered items that supported heritage conservation.

Cultural heritage projects

The Department administered the Cultural Heritage Projects Programme to support projects that encourage private owners and local and community groups to conserve places of cultural heritage significance and to identify Indigenous places for conservation planning and heritage listing.

In 2003-04, the Minister approved grant funding of $3.5 million for 72 individual projects. As at 30 June 2004 these projects were being established, and the Department continued to administer 28 projects worth $3 million from the previous funding round of the programme. A total of 33 projects worth $1.2 million were completed.

80 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Heritage Review of performance

Regional natural heritage

In February 2004 the Australian Government announced the Regional Natural Heritage Programme with funds of $10 million over three years to assist conservation of biodiversity hotspots in South-East Asia and the Pacific. Eighty project proposals were considered for possible funding and nine projects were approved involving funding commitments of $0.82 million over 12 months from June 2004,

Historic hotels

The Department managed funding for projects to preserve and restore rural and regional hotels across Australia with significant historic features. During 2003-04, funding was provided to 46 currently licensed historic hotels entered on an Australian, state, territory, local government or National Trust list for their historical significance, bringing the total number of hotels successfully supported over the life of this programme to 148. As well as conserving heritage, these projects provided

economic and social benefits to regional communities through direct employment and by increasing opportunities for community activities and tourism.

National Trust

The Department managed funding for grants to continue support for the activities of the nine National Trust organisations.

St Paul's Anglican Cathedral

The Department managed funding to conserve the two southern spires of St Paul's Anglican Cathedral in Melbourne. Additional funding was administered to conserve St George's Cathedral in Perth.

Goondiwindi Serpentine Water Park

The Department managed funding to protect Boobera Lagoon by providing an alternative water sports facility. The project was completed in May 2004.

Historic events and famous persons

The Department managed grants worth $0036 million to commemorate people, events and places of national historical significance.

Result

The Department's administration of funds to support heritage conservation was effective. Administered funds supported the conservation of significant cultural heritage, the restoration of cathedrals in Melbourne and Perth, protection of Boobera Lagoon in New South Wales, the preservation of historic hotels, and National Trust activities.

82 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Heritage

Review of performance

Report on performance information

Tables 15 to 21 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 15: Administer legislation protecting Australia's heritage (departmental appropriation)

Performance information Result

'Accuracy, timeliness and comprehensiveness of advice provided to the Minister for the:

Heritage component of the [Environment Protection and Biodiversity Conservation Act 1999];

â¢ World Heritage Convention;

â¢ Historic Shipwrecks Act 1976;

â¢ Aboriginal and Torres Strait Islander Heritage Protection Act 1984 and

â¢ Protection of Movable Cultural Heritage Act 1986.'

Timeframes were met and policy advice met the Minister's requirements.

Table 15 continued...

Applies to National and Commonwealth Heritage, and Commonwealth land. °'& See also the report on the operation of the Environment Protection and Biodiversity Conservation Act 1999 in this annual report.

Performance information Result

'Number of referrals received and amount of Under the Environment Protection and advice provided.'(a) Biodiversity Conservation Act 1999, the

Department received 26 proposed actions as referrals where World Heritage values were likely to be significantly impacted. These actions predominately involved tourism in, or adjacent to, the Great Barrier

Reef and the Wet Tropics of Queensland. The Minister determined that six of these proposed actions were'controlled actions' requiring assessment under the Act, and that a further proposed action was not a 'controlled action' if it was undertaken in a specified manner.

Relevant amendments to the Environment Protection and Biodiversity Conservation Act 1999 came into operation on 1 January 2004. Advice was provided on 89 proposed actions on Commonwealth land (section 26, Environment Protection and Biodiversity Conservation Act 1999). Progress was

made on assessing 62 nominations for the National Heritage and Commonwealth Heritage Lists. No proposed actions were received for National Heritage List places. No places were entered in the list at 30 June 2004. (b)

84 Department of the Environment and Heritage Annual Report 2003-04

Performance information

Degree to which target audiences are

reached and engaged.'

Outcome 1 - Environment 1 Heritage

Review of performance

Table 16: Promote community involvement with Australian heritage (departmental appropriation)

Result

An extensive information programme

was conducted for the new legislation. Target audiences included Commonwealth Heritage property owners, conservation bodies, state government agencies and industry groups.The public began nominating places for the National Heritage List. States and territories provided advice on proposed listings.

'Degree of public participation including nominations of places, changes in public attitude, and regional economic benefits from increased heritage tourism.'

The public nominated 62 places for the National Heritage and Commonwealth Heritage Lists, and made four requests for emergency listing on the National Heritage List (the Minister decided that emergency listing was not warranted). Market research was commissioned to provide a benchmark

against which future public engagement activities can be measured.

Table 17: Identify and manage Australia's heritage

(departmental appropriation)

Performance information Result

'Degree to which the Australian Heritage Council and Minister are satisfied with the accuracy, timeliness and comprehensiveness of assessments of heritage significance.'

Emergency listing and Commonwealth Heritage listing briefs were comprehensive, leading to Ministerial decisions within the statutory time frame.

'Degree to which management plans improve the condition of properties.' Management plans are the key mechanisms for improving heritage outcomes where

there are recognised significant national and international heritage values. Plans are being developed for places entered in the National Heritage List and the Commonwealth Heritage List. All World Heritage areas either have a management plan or a strategic plan in place or being prepared. Additionally, some plans are being reviewed. Although it is clear that good management plans are essential for the proper conservation of heritage places, it will take a number of years to fully measure the improved condition of the properties.

'All heritage assistance projects (including Natural Heritage Trust grants) are assessed, managed and evaluated in accordance with Australian National Audit Office better practice guidelines, including appropriate monitoring of risk.'

'Number of properties assessed and management plans developed.'

There were no adverse findings from an Australian National Audit Office audit of a random sample of approved projects.

The Department assessed 334 Commonwealth properties on the Register of the National Estate for their Commonwealth Heritage values.

86 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment Heritage

Review of performance

Table 18: St Paul's Anglican Cathedral (administered appropriation)

Table 19: Goondiwindi Serpentine Water Park (administered appropriation)

Table 20: Conservation of rural and regional historic hotels (administered appropriation)

Performance information Result

'Remaining project (St Paul's Anglican The project was completed and all funds Cathedral, Melbourne) completed and fully fully acquitted. acquitted by 31 August 2003!

'One contract.' The contract was finalised.

Performance information Result

'Project design is consistent with Consistent with the deed of agreement, Government objectives.' construction and fill was completed in May 2004.

'Remaining works are completed by The project was completed by 30 June 2004. September 2003 and project fully acquitted The reason the target date was not met by 31 December 2003! was because water was not available on the target date to fill the water park.

Performance information Result

'All projects funded on a matching basis and The programme achieved its objectives of managed in accordance with agreed criteria.' restoring 46 historic hotels during 2003-04 and stimulating local economies. All projects were funded on a matching basis with

funding recipients and managed according to agreed criteria as set out in the contract.

'All remaining projects funded are All projects were completed by 30 June completed by 30 June 2004.' 2004.

Table 21: Grants-in-aid - National Trust (administered appropriation)

Performance information Result

'Payments made to support National Trust heritage initiatives in accordance with agreed performance requirements.'

Nine National Trust organisations received $821000 for work to:

â¢ promote the need for regional training programmes for cultural institutions through Regional Cultural Alliance;

â¢ contribute to new Australian Government heritage legislation;

â¢ develop research into issues associated with the guidelines for siting of wind farms;

â¢ improve management of heritage places, including those in the National Trust's care;

â¢ train and develop trust volunteers;and

â¢ continue to support trust activities and publications which assist and educate the community on heritage conservation practices, and to raise the profile of heritage amongst the community.

'9 agreements finalised by December 2003.' The agreements were finalised by January 2004—the slight delay was due to delays in holding National Trust annual general meetings.

88 Department of the Environment and Heritage Annual Report 2003-04

'I,,

Outcome 1 - Environment I Heritage

Review of performance

Table 22: Pricing information for Tables 15 to 21(a)

See also the summary resource tables at the end of this 'Review of performance'. Information about St George's Cathedral in Perth and the Regional Natural Heritage Programme is shown in those tables.

The difference between the estimated and actual figures arose because the Australian Heritage Commission was abolished on 31 December 2003. Its expenses and revenues for the remaining part of the financial year were included in the Department's expenses and revenues. In the 2004-05 Budget, the Australian Government granted an additional $2.5 million for further cathedral

conservation works, with the money fully disbursed in 2003-04. Administered appropriations unspent at 30 June 2003 were rephased from 2002-03 to 2003-04 to enable final payments to be made on this project. These final payments had been delayed due to the drought.

Progress with some of the grants during 2002-03 was slower than expected. This money was rephased into 2003-04 to enable grant commitments to be met.

Appropriation Estimated price Revised price Actual expenses

Heritage—Output 1.5 $9.731 million $17033 million $17.204 million (b) (departmental)

St Paul's Anglican Cathedral $0050 million $2.550 million $2550 million (administered)

Goondiwindi Serpentine $0150 million $0.530 million $0.530 million Water Park (administered)

Conservation of rural and $0543 million $1.138 million $0.808 million(,) regional historic hotels (administered)

Grants-in-aid—National $0821 million $0.821 million $0821 million Trust (administered)

Outcome 1 - Environment Industry

Review of performance

Improving the

environmental performance ofA ustralian industry The Department works with all levels of government, the community and industry to minimise the impact of industrial processes on Australia's environment. In 2003-04, the Department worked to improve the environmental performance of industry and funded activities that protect the environment and human health from hazardous substances and organisms. This section reports on activities funded using the Department's appropriation for its 'industry' output. For more information about the Department's industry-related activities see also: â¢ the Natural Heritage Trust's annual reports at www.nht.gov.au/publications ; and â¢ the Supervising Scientist's annual reports at www.deh.gov.au/about/annual-report. The Policy Coordination and Environment Protection Division and the Supervising Scientist Division contributed to this output. 90 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 -

Environment Industry

Review of performance

The environmental performance of industry

Objective To work with industry, and state and territory governments, to improve the environmental performance of industry.

Activities

Industry partnerships The Department works with industry through eco-efficiency agreements and product stewardship agreements. Eco-efficiency means using resources more efficiently so businesses save money and reduce environmental impacts. Product stewardship means the producers and users of goods and services share responsibility with government to manage environmental impacts throughout the life cycle of the goods and services, including the ultimate disposal of any

wastes. See also the report on the operation of the product stewardship for oil arrangements in 'Other reports'.

The Department works with industry associations through voluntary three-year eco-efficiency agreements. During the year, new agreements commenced with the Fertilizer Industry Federation of Australia and the Queensland Canegrowers Organisation. Agreements were also completed with the Australian Food and Grocery Council and Avcare (the National Association for Crop Production and Animal Health). Avcare completed its agreement by publishing its third environment report in June 2004. The report showed that over the three years of

their agreement, the industry achieved significant improvements in eco-efficiency, by cutting greenhouse gas emissions by more than 50 per cent, energy use by almost 40 per cent and water use by 17 per cent.

As at 30 June 2004, eco-efficiency agreements covered over 377 000 Australian businesses, including 6000 sugarcane growing businesses and 100 fertilizer businesses.

The Department also provides information and guidance to industry and the community on corporate sustainability (for example integrating environmental, social and economic considerations into business strategies), the built environment, and environmentally sustainable business practices (practical measures to help

improve industries' environmental performance).

In September 2003 the Department published

Corporate Sustainability - an

Investor Perspective (the Mays Report). The report provided an investment industry view on the value of corporate sustainability. It showed sustainability is a good measure of management competency and indicator of long-term performance. These results can be used to encourage Australian companies to consider the environmental and social outcomes of their activities.

A survey of sustainability reporting practices in Australia commissioned by the Department found that sustainability reporting by Australian companies has increased from 57 companies publishing public environment reports in 2001-02, to 116 companies publishing sustainability reports in 2002-03. The Department expanded its Sustainability Reporting Library, and over 330 public environment reports and triple bottom line reports are now available at www.deh.gov.au/ industry/corporate/reporting.

Following a public review, the Department finalised the National Australian Built Environment Rating System. This system enables building owners, tenants, and managers of existing commercial office buildings and residential homes to measure, report on, promote and improve the environmental performance of their buildings. The rating system is available at www.deh.gov.au/industry/construction/nabers.

As well, the Department:

â¢ worked with the Australian Building Codes Board and other stakeholders to include sustainability as a goal in the Building Code of Australia; and â¢ sponsored the Master Builders Australia National Environment and Energy Building Efficiency Awards, which promote outstanding environmental

performance and innovation in the Australian construction industry.

National Environment Protection Council

The National Environment Protection Council consists of the environment ministers of each state, territory and the Australian Government. It aims to ensure that all Australians benefit equally from environmental protection and that business decisions and markets are not fragmented by state and territory boundaries. The Council has law-making powers and works cooperatively to develop these laws, called National Environment Protection Measures.

National Environment Protection Measures outline agreed national objectives for protecting or managing particular aspects of the environment, and are similar to statutory environmental protection policies used in some states and territories.

92 Department of the Environment and Heritage Annual Report 2003-04

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Review of performance

The Environment Protection and Heritage Council now incorporates the National Environment Protection Council. The statutory functions of National Environment Protection Council continue under the umbrella of Environment Protection and Heritage Council. The, activities of the two councils were integrated to streamline

discussions on environment protection options that combine policy and statutory elements.

As the Australian Government's contribution to supporting the National Environment Protection Council, the Department managed an administered appropriation called 'Commonwealth Contribution to the National Environment Protection Council Service Corporation'. See also the annual report of the National

Environment Protection Council at www.ephc.gov.au/nepc/annual-reports,html.

In 2003-04, the National Environment Protection Council extended the operation of the National Environment Protection (Used Packaging Materials) Measure to April 2005, pending a review of the National Packaging Covenant, which underpins the measure.

The covenant is a partnership between the Australian and state and territory governments and industry and is the leading instrument for managing packaging waste in Australia. Covenant partners are working to minimise the environmental impacts of consumer packaging waste throughout the life cycle of the packaging

product, to close the recycling loop, including by developing economically viable and sustainable recycling collection systems.

The Department continued to support the National Packaging Covenant Council, a governing body established under the covenant, including by providing information services, helping signatories develop action plans, and monitoring compliance.

The environmental impacts of plastic shopping bags attracted significant attention during the year. While plastic bags provide a strong, cheap, and hygienic way to transport food and other products, the small percentage that end up in the litter stream can threaten marine animals. In 2002, Australians used about 6.9 billion

plastic carry bags and up to 80 million of these found their way onto streets and parks and into waterways.

In October 2003, the Environment Protection and Heritage Council formally accepted the industry code of practice for plastic shopping bags developed by the Australian Retailers Association. Under the code, retailers are committed to reducing plastic carry bag use by 25 per cent by the end of 2004 and 50 per cent

by the end of 2005. This national, voluntary approach allows retailers to adopt innovative and flexible solutions and avoid unnecessary costs. It also gives retailers and consumers time to embrace suitable alternatives. By the end of June 2004, more

than 90 per cent of Australian supermarkets had signed up to the code of practice, including Coles, Foodland, Franklins and Woolworths.

The Department, together with state and territory governments, is monitoring progress through six-monthly reports from retailers.

The Department worked on other initiatives to reduce the number of plastic bags entering the environment, including best practice guidelines for litter management at landfills and public places, and national standards for degradable plastics. The Department also supported Clean Up Australia's consumer awareness campaign.

With new degradable plastic products such as bags coming on to the Australian market, the Environment Protection and Heritage Council asked Standards Australia to develop national standards for degradable plastics. The Department chairs the Standards Australia steering group for degradable plastics, which will establish definitions and performance expectations for producers of degradable plastic products.

The Australian Government is working with state and territory governments and the electrical and electronics industries to develop a product stewardship approach to managing electrical and electronic wastes.

The Department funded the Electrical and Electronic Products Infrastructure Facilitation study with the New South Wales Department of Environment and Conservation. Along with pilot recycling projects undertaken in Sydney by New South Wales and in Melbourne by Victoria in, this work has identified barriers to effective collection and recycling of electrical and electronic products in Australia, and highlighted the need for industry-wide solutions.

The Department worked on developing a national solution to the problem of used tyres. In response to an approach by tyre manufacturers and importers, a Used Tyres Roundtable was established in October 2003.

The Department is also implementing the Greening of Government Programme to help Australian Government Departments and agencies improve their environmental efficiency and reduce costs through:

â¢ environmental management systems (Figure 8 shows the results of a recent survey);

â¢ environmental purchasing guidance, developed in cooperation with the Department of Finance and Administration and the Australian Greenhouse Office; and

â¢ continued support for environmental, triple bottom line and sustainability reporting by Australian Government agencies. This annual report contains a triple bottom line report on the Department's Canberra-based operations.

94 Department of the Environment and Heritage Annual Report 2003-04

35 -

30 -

25 -

20 -

15 -

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10 -

Outcome 1 - Environment j Industry

Review of performance

Figure 8: Number of Australian Government agencies that have environmental management systems (EMSs) as at 31 December 2003

EMS EMS EMS EMS No EMS

certified in place under development development

development planned planned

Water efficiency

The Sustainable Cities programme aims to make Australian cities and towns cleaner and more sustainable.

Through this programme, the Department worked in cooperation with state and territory governments and relevant industries to improve urban water efficiency.

In September 2003 the Environment Protection and Heritage Council agreed to implement a national mandatory Water Efficiency Labelling and Standards ('WELS) scheme for a range of urban products including washing machines, dishwashers, toilets, showerheads, taps and flow regulators.

The Department developed the Water Efficiency Labelling and Standards Bill 2004 and an associated Regulation Impact Statement, which were introduced to the Parliament in June 2004. The Department is working with the states and territories on the scheme's implementation, and new water efficiency labels have been

developed.

In November 2003, the Australian Government agreed to provide $1 million over five years to the International Council for Local Environmental Initiatives to help roll out the council's Water CampaignTm nationally. The Water Campaign Tm will help improve water quality and water efficiency at the local and catchment levels.

The Department's efforts on urban water use and re-use contribute towards the urban component of the National Water Initiative agreed to by the Council of

Australian Governments on 25 June 2004, available at www.coag.gov.au/meetings/

250604 and www.deh.gov.au/water/policy.

National Pollutant Inventory

The National Pollutant Inventory provides policy makers, industry and the community with current and easily accessible information about pollutant emissions to the environment. It quantifies pollutant emissions to air, land and water from industrial and non-industrial sources. It is a collaborative programme of the Australian Government and state and territory governments. The Department publishes the National Pollutant Inventory at www.npi.gov.au .

The Department collated the total emissions from industrial facilities during 2002-03, and published the results in January 2004 (results for 2003-04 will be published in January 2005). The total emissions from industrial facilities of 50 of the 90 pollutants on the National Pollutant Inventory decreased compared to the previous year.

It is not clear what proportion of the decrease is attributable to improved environmental performance, the use of different estimation techniques, or changing production levels.

The Department promoted the National Pollutant Inventory by sending information brochures to schools, libraries and state and territory environment agencies. The National Pollutant Inventory web site had almost 585 000 hits—an increase of 130 000 since the previous year.

Uranium mining supervision and research

The Australian Government and the Northern Territory Government share responsibility for the uranium mines in the Alligator Rivers Region. The Supervising Scientist has a role defined in the Environment Protection (Alligator Rivers Region) Act 1978, and is supported in this work by the Department's Supervising Scientist Division. For the Supervising Scientist's annual report, see www.deh.gov.au/about/ annual-report.

The Department's Supervising Scientist Division includes the Office of the Supervising Scientist, which carries Out supervision, audit and monitoring activities.

The Office of the Supervising Scientist also investigates incidents at mine sites to assess any environmental impacts. There were two serious incidents at Ranger during 2003-04, involving the contamination of potable water and contaminated earth-moving equipment. Investigations by the Supervising Scientist determined that it is most unlikely there will be any adverse longer term, or delayed, effects

96 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Industry

Review of performance

on the health of workers at Ranger, that the people and environment of Kakadu National Park which surrounds the Ranger Project Area, remained protected, and that the health of people living downstream was not harmed.

To provide the Supervising Scientist with the information required to undertake his role, the Environmental Research Institute of the Supervising Scientist conducts research on the potential impacts of uranium mining in the Alligator Rivers Region.

On 14 October 2003, the Senate Environment, Communications, Information Technology and the Arts References Committee tabled its report on Regulating the Ranger, Jabiluka, Beverly and Honeymoon uranium mines in the Australian Senate. The report included recommendations relevant to the Department's work. The Department of the Prime Minister and Cabinet referred the Committee's

report to the Department and as at 30 June 2004 the Department was developing a government response.

For more information, see the Supervising Scientist's annual report at www.deh.gov.au/about/annual-report.

Result

The Department's efforts to improve the sustainability of industry focused on improving urban water efficiency, and supporting the work of the National Environment and Protection Council, including reducing the use of plastic bags.

This work complements the voluntary efforts of industry and the regulatory activities of state and territory governments and local councils.

The Environment Protection and Heritage Council agreed to the Water Efficiency Labelling and Standards scheme in September 2003. The scheme will improve the water and energy efficiency of household appliances, thereby reducing water consumption and greenhouse emissions and saving consumers money.

The first report on the use of plastic shopping bags, for the six months to June 2004, showed supermarkets are on track to meet their 2004 target: Australian supermarket shoppers reduced the number of plastic carry bags used by over half a billion or an annualised 29 per cent of bags used for supermarket shopping. The Department

will continue to monitor the reduction to the end of 2004 against the 25 per cent target.

As at 30 June 2004, the National Packaging Covenant, a partnership between Australian and state and territory governments and industry to manage packaging waste, had 649 signatories representing all sectors of the packaging supply chain. The covenant now covers more than 80 per cent of domestic products (see Figure 9).

Figure 9: Number of signatories to the National Packaging Covenant (1999-2004)

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300 -

400 -

500 -

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1999-00 2000-01 2001-02 2002-03 2003-04

Financial year

The National Pollutant Inventory continued to provide useful and accessible

information on the pollutant emissions to the environment. The number of facilities reporting to the National Pollutant Inventory has increased steadily since 1998-99 (see Figure 10).

Figure 10: Number of industrial facilities reporting to the National Pollutant Inventory (1998_2003)a)

Num

ber

in dus

tr ia

l fac

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ies

4000 -

3500 -

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2500 -

2000 -

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1998-99 1999-00 2000-01 2001-02 2002-03

Financial year

Numbers are reported annually at the beginning of each calendar year

98 Department of the Environment and Heritage Annual Report 2003-04

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Industry

Review of performance

Hazardous substances and organisms

Objective To protect the environment and human health from hazardous substances and organisms.

Activities

Chemicals management

To ensure that chemicals are managed safely to protect the environment and human health, the Department:

â¢ cooperates in the development of international agreements;

â¢ works with the states and territories, industry and community groups in the development of guidelines and standards to reduce production of hazardous chemicals;

â¢ gathers information about persistent organic pollutants and develops strategies to reduce or eliminate them; and

â¢ undertakes environmental assessments of industrial and agricultural chemicals for the National Industrial Chemicals Notification and Assessment Scheme and the Australian Pesticides and Veterinary Medicines Authority.

In the last year, the Department participated in several international meetings, including the Stockholm Convention on Persistent Organic Pollutants and the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. Australia ratified both conventions on 20 May 2004. The Department cooperates in the development of these international agreements to restrict the use, production or release of

hazardous chemicals, and for the sharing of information about them.

Under the Stockholm Convention, Australia has committed to reducing and, where feasible, eliminating releases of persistent organic pollutants. The Department is now developing a national implementation plan through the Environment Protection and Heritage Council.

As part of the National Dioxins Programme, the Department completed seven projects on the levels of dioxins in the environment, the population and agricultural commodities, and to determine emissions from bushfires, motor vehicles and other sources. The information and other data were used to assess environmental risks and complemented a Department of Health and Ageing human health risk study.

This work led to the publication of a series of 12 technical reports in May 2004.

Australia contributed to the development of the Strategic Approach to International Chemicals Management—a United Nations Environment Programme initiative that identifies international priorities in chemical safety to the year 2020.

The Department reviewed the sources, pathways and management of mercury in Australia. This will assist in developing Australia's position on international measures to address mercury, which are currently being considered by the United Nations Environment Programme Governing Council.

Together with state and territory governments, the Department shares responsibility for managing unwanted agricultural chemicals. Under an agreement with all jurisdictions, the agricultural industry has now established regular collections of unwanted farm chemicals under the ChemClear programme (a Natural Heritage Trust national investment). During 2003-04, trials took place in New South Wales and South Australia to test and refine the proposed collection system.

The Australian Pesticides and Veterinary Medicines Authority regulates agricultural and veterinary chemicals. One test for registering a chemical product is whether the product is likely to harm animals, plants or the environment when used according to instructions. The authority seeks the Department's advice when applying this test. Where the Department advised that a product failed the test (eight out of 19 applications to register products with new active constituents; eight out of 43 applications to extend the use of existing products; and two out of

44 applications for trial or 'off-label' use--that is, a use not listed on the approved label), the authority did not authorise it. In most other cases, the Department identified likely adverse environmental impacts and recommended modifications to mitigate them and allow the application to pass the test.

The National Industrial Chemicals Notification and Assessment Scheme regulates industrial chemicals. The Department assesses the potential environmental impact of new industrial chemicals on behalf of the scheme (see Figure 11). The Department undertook environmental hazard assessments of short-chain chlorinated paraffins and formaldehyde as part of the scheme's review of priority existing chemicals.

100 Department of the Environment and Heritage Annual Report 2003-04

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Review of performance

Figure 11: Number of environmental risk assessments of agricultural, veterinary and industrial chemicals (1998-2004)

250 Agriculture and veterinary chemicals

Industrial chemicals

Num

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f assessmen

ts 200 -

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100

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

Financial year

Hazardous waste

The Department regulates the movement of hazardous wastes in and out of Australia through the Hazardous Waste (Regulation of Exports and Imports) Act 1989. The Act implements Australia's international obligations, including those under the Basel Convention on the Control of the Transboundary Movements of Hazardous Wastes and their Disposal. Under the Act, the Department operates a permit system to regulate imports and exports of hazardous wastes, which complements state and territory government regulation of waste management

within Australia.

Australia contributed actively to international meetings on controlling hazardous waste. Departmental officers attended four meetings of the Basel Convention and the Convention to Ban the Importation into Forum Island Countries of Hazardous and Radioactive Wastes and to Control the Transboundary Movement and Management of Hazardous Wastes within the South Pacific Region (known as the

Waigani Convention).

The Basel Convention puts an onus on exporting countries to ensure that hazardous wastes are managed in an environmentally sound manner. The Waigani Convention bans the imports of all hazardous and radioactive wastes into South Pacific Island countries.

101

161

A particular focus for the Department during 2003-04 was improving compliance

with the Act. For more information, see the report on the operation of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 in this annual report.

Gene technology assessment

The Gene Technology Regulator regulates genetically modified organisms under the Gene Technology Act 2000. This Act requires the regulator to seek advice from the Minister for the Environment and Heritage for each intentional release of genetically modified organisms into the environment. The Department supports the Minister in providing this advice.

In 2003-04, the regulator sought the Minister's advice on 23 occasions for 15 licence applications, and the regulator adequately addressed environmental concerns in each licence granted.

The Department also supported the Minister's involvement in the Australian Government Biotechnology Ministerial Council.

Product stewardship for oil

The improper use of used oil can pollute land, waterways, underground reservoirs and the marine environment. One litre of used oil can contaminate up to one million litres of water.

The Product Stewardship for Oil Programme was introduced in 2001 by the Australian Government to provide incentives to increase used oil recycling. The arrangements comprise a levy-benefit system, where a levy on new oil offsets benefit payments to used oil recyclers. Transitional assistance grants of $34.5 million from 2001 to 2007 are also helping to establish a sustainable oil recycling industry, including the installation of used oil collection points across Australia. A total of 547 oil collection facilities were installed and in operation as at 30 June 2004.

In May and June 2004, the Department conducted a six-week community awareness campaign, which led to over 600 public inquiries. For more information, see the report on the operation of the product stewardship arrangements for waste oil in this annual report.

102 Department of the Environment and Heritage Annual Report 2003-04

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Result

Australia continued to contribute to international efforts to restrict the use, production and emission of hazardous chemicals. Australia ratified the Stockholm Convention on Persistent Organic Pollutants and the Rotterdam Convention on Prior Informed Consent for International Trade in Hazardous Chemicals on 20 May 2004.

At the national level, the Department continued to advise on hazardous substances and organisms, including providing advice to regulators of agricultural, veterinary and industrial chemicals.

In May 2004, the Department released 12 technical reports describing the outcomes of studies on dioxins in the environment. This was the largest survey of dioxin levels ever undertaken in Australia. The studies showed that the dioxin levels in our food, bodies and environment are low compared with international standards. They also showed that the risks posed by dioxins to human health and the environment are low.

With the Department's support, the Environment Protection and Heritage Council launched the Internet-based National Chemical Information Gateway, which provides a simple and coordinated way to access information on chemicals at www.deh.gov.au/chemicals-gateway.

103

Report on performance information

Tables 23 to 25 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 23: Sustainable industry (departmental appropriation)

Performance information Result

'Accuracy, timeliness and comprehensiveness of advice provided to the Minister on improving the environmental performance of Australian industry.'

Timeframes were met and policy advice met the Minister's requirements.

'Statutory timeframes relating to the management of hazardous wastes are met.' All timeframes were met (18 permit applications were processed).

'Emissions data (collected by states and territories from industrial facilities and submitted to the Commonwealth) under the National Pollutant Inventory National Environment Protection Measure (NEPM) is posted on the website by 31 January each year.'

Industrial facility emission data was published on the web site on 30 January 2004.The number of facilities reporting on their 2002-03 emissions was 3396, about 400 more than the previous year.

'Percentage of projects under National Dioxins Programme meeting key milestones.'

One hundred per cent (seven projects). The projects showed that dioxin levels in the environment are low, as are risks to the environment and to human health.

'Percentage of advices to Government and regulators on applications to release genetically modified organisms into the environment that met the statutory timeframes under the Gene Technology Act 2000.'

Eighty-seven per cent of advices from the Minister to the Regulator met the timeframes. (The Regulator considered all advices from the Minister; 23 advices to the Minister were prepared by the Department.)

'Percentage of risk assessments for Australian Pesticides and Veterinary Medicines Authority (previously National Registration Authority) and National Industrial Chemicals Notification and Assessment Scheme that meet the statutory timeframe.'

Seventy per cent of 106 risk assessments prepared for the Australian Pesticides and Veterinary Medicines Authority met the timeframe (a 16 per cent improvement on last year). Sixty per cent of 203 risk assessments prepared for the National Industrial Chemicals Notification and Assessment Scheme met the timeframe (a seven per cent improvement on last year).

104 Department of the Environment and Heritage Annual Report 2003-04

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Table 23 continued...

Performance information Result

'Number of businesses covered by Industry! In total, there were 11 eco-efficiency Government environmental agreements.'agreements with 32 industry associations, representing over 377 000 Australian businesses.

'Percentage of total waste oil recycled Over 80 per cent of potentially recoverable nationally.' used oil was recycled (233 million litres,

which is a 20 per cent increase on last year and more than 40 per cent increase since the programme commenced).-

105

Table

24: Supervision and research on the environmental impact of uranium mining in the Alligator Rivers Region (departmental appropriation)

Performance information

'Accuracy, timeliness and comprehensiveness of advice provided to the Minister on the environmental impact of uranium mining in the Alligator Rivers Region.'

Result

Timeframes were met and policy advice met the Minister's requirements.

'Extent to which environmental research on the effects of uranium mining provides the Supervising Scientist with the information required to undertake his role.'

Research conducted by the Environmental Research Institute of the Supervising Scientist provided the Supervising Scientist with the scientific and technical information needed for him to fulfil his role:

â¢ Ecotoxological assessments of magnesium sulphate, aluminium and uranium for local aquatic organisms were either completed or commenced.

Environmental monitoring programmes were implemented at Ranger and Jabiluka to assess potential impacts of the mine sites. Information from the monitoring programmes indicated that ecosystems downstream of mining activities were protected from the potential deleterious impacts of uranium mining.

â¢ Research on the baseline stream sediment movement in Swift Creek (Ngarradj) neared completion.

â¢ Work on the erosion and hydrology of the Nabarlek mine site was carried out to assess the status of rehabilitation of the mine.

â¢ A radon and meteorological measurement network has been set up and data were obtained from locations in the Ranger! Jabiluka region.

'Extent to which the Commonwealth Environmental Requirements are met.' The Supervising Scientist indicated to the Minister that the potable water

contamination incident and contaminated vehicle incident at Ranger during 2003-04 were breaches of the Commonwealth Environmental Requirements.

106 Department of the Environment and Heritage Annual Report 2003-04

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Table 24 continued...

Performance information Result

'Extent to which routine minesite inspections and environmental audits are completed consistent with the requirements of the IS014000 series of standards and are supported by an environmental monitoring programme.'

Routine inspections of mine sites were carried out with representatives of the Northern Territory Department of Business, Industry and Resource Development and the Northern Land Council.The annual environmental audit and mid-term review were completed in accordance with the requirements of the

ISO 14000 series of standards.The Supervising Scientist's environmental monitoring programme provided data that supported these audit processes.

'Extent to which local standards for water quality and radiation levels are met.' Local standards for air and water quality at the Ranger and Jabiluka sites were met

during 2003-04.There were no recorded occasions when site-specific water quality limits were exceeded at either site as a result of mining operations.The potable water

contamination incident at Ranger resulted in short-term adverse effects (skin irritations and gastrointestinal distress) for some workers but longer-term effects are not

expected.The contaminated earth-moving equipment incident resulted in low level radiation exposure of three members of the public at approximately the public limit. Longer term effects are not expected.

'Number of reports including peer reviewed articles and presentations on standards, practices and procedures developed to protect the environment and people from

the effects of uranium mining.'

'Number of reports including peer reviewed articles and presentations on measures developed for the rehabilitation of the environment following uranium mining

activities.'

A total of 84 reports, including peer reviewed articles and presentations, were prepared in 2003-04.These reports included information relevant to protecting the

environment and people from the effects of uranium mining.A full list of publications from 2003-04 is included in the Supervising Scientist's annual report at www.deh.gov.au/

about/annual-report.

The 84 reports mentioned above included information relevant to the rehabilitation of the environment following uranium mining. A full list of publications from 2003-04 is included in the Supervising Scientist's annual report at www.deh.gov.au/about/ annual-report.

107

Table 25:

Commonwealth contribution to the National Environment Protection Council (NEPC) Service Corporation (administered appropriation)

Performance rnforma

'The Commonwealth's financial obligation to the NEPC [National Environment Protection Council] Service Corporation is met.'

The Department contributed $423 750 to the operational costs of the service corporation.

All payments were made on time. 'Commonwealth's contribution to the operating costs of the NEPC [National Environment Protection Council] Service Corporation is paid on time.'

Table 26: Pricing information forTables 23 to 25(a)

(11 See also the summary resource tables at the end of this 'Review of performance'.

Appropriation Estimated price Revised price Actual expenses

Industry—Output 1.6 $29.171 million $28936 million $30.399 million (departmental)

Commonwealth contribution $0.429 million $0.429 million $O.424 million to the National Environment Protection Council (NEPC) Service Corporation (administered)

108 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment

Inland waters

Review of performance

Managing inland waters

The Department develops Australian Government initiatives to ensure that the management of inland rivers, groundwater and inland wetlands is ecologically sustainable. In 2003-04, the Department worked to enhance the management of inland waters by: â¢ contributing to national reforms to water management; â¢ improving the health of river basins; â¢ working on ways to address threats to water quality; and â¢ protecting inland wetlands. This section reports on activities funded using the Department's appropriation for its 'inland waters' output. For more information about the Department's inland waters management activities see also: â¢ the Natural Heritage Trust's annual reports at www.nht.gov.au/publications; â¢ the annual report of the National Action Plan for Salinity and Water Quality at www.napswq.gov.au/publications; and â¢ the Supervising Scientist's annual reports at www.deh.gov.au/about/annual-report. The Land, Water and Coasts Division and Supervising Scientist Division contributed to this output. 109

Sustainable water use

Objective To ensure that the environment and communities continue to benefit from fresh water being available.

Activities

National water reforms

On 25 June 2004, the Council of Australian Governments agreed to a National Water Initiative to progress and build on the achievements of the 1994 Water Reform Framework. The Department worked closely with the Department of the Prime Minister and Cabinet and the Department of Agriculture, Fisheries and Forestry to develop:

â¢ the National Water Initiative; and

â¢ the related Intergovernmental Agreement on Addressing Water Overallocation and Achieving Environmental Objectives in the Murray-Darling Basin.

River basins

On 14 November 2003, the Murray-Darling Basin Ministerial Council agreed to a 'first step' proposal for implementing the Living Murray Initiative, which the Department helped to develop. The first step is a staged approach to increasing environmental flows (water that is actively managed for environmental purposes) in the River Murray and restoring its health. The first step will target six significant ecological assets along the River Murray. For more information, visit www.thelivingmurray.mdbc.gov.au .

The Department participated in a range of Murray-Darling Basin Commission activities including developing:

â¢ a trial water trading project;

â¢ a pilot programme for a Sustainable Rivers Audit Monitoring Programme; and

â¢ a $150 million programme of Environmental Works and Measures, such as fish ladders.

110 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Inland waters Review of performance

The Department worked with the Queensland, South Australian and Northern

Territory governments to agree on terms for the Northern Territory's participation in the Lake Eyre Basin Agreement. This agreement provides for the sustainable cross-border management of water and other natural resources in the basin. The Northern Territory signed the Lake Eyre Basin Intergovernmental Agreement on 10 June 2004. For more information, visit www.deh.gov.au/water/basins/lake-eyre.

The Department completed the first phase of the Lake Eyre Basin Rivers Assessment project, establishing the Lake Eyre Basin Community Advisory Committee, providing funding support, including the appointment of a facilitator, and supporting and publishing information prepared by the Lake Eyre Basin Scientific Advisory Panel.

The Department also administered two Natural Heritage Trust national investment projects that:

â¢ investigated options to identify and protect rivers and river reaches of high conservation value; and

â¢ collated and reviewed data on our northern rivers.

Water quality

The Natural Resource Management Ministerial Council oversees the environmental aspects of the National Water Quality Management Strategy. This strategy aims to protect the quality of water resources while supporting economic and social development. During 2003-04 the Department worked with other government agencies to develop guidelines for sewerage system overflows,

biosolids management and drinking water under Phase 1 of the strategy (see www.deh.gov.au/water/quality and www.daff.gov.au/nwqms) . The Department began work on National Guidelines for Water Recycling—Managing Health and Environmental Risks under Phase 2 of the strategy.

The Department administers both the Natural Heritage Trust (including Rivercare) and the National Action Plan for Salinity and Water Quality jointly with the Department of Agriculture, Fisheries and Forestry. Under these initiatives, integrated natural resource management plans are being developed for 56 regions

across Australia. A major objective of the plans is to improve the health of inland waters. In November 2001 the Prime Minister promised spending under the Natural Heritage Trust of at least $350 million directly on projects to improve water quality. For information about outcomes, see the Natural Heritage Trust's annual reports

at www.nht.gov.au/publications, and the National Action Plan's annual report at www.napswq.gov.au/publications.

111

International activities

The Department provided policy advice, delegation support, and briefing assistance on a range of bilateral and multilateral activities in pursuit of Australia's international water policy objectives. See also the section on international activities in the 'Management and accountability' part of this annual report.

Result

Through the National Water Initiative, the Council of Australian Governments agreed to improve the security of water access entitlements, increase the productivity and efficiency of water use, and ensure the continued health of river and groundwater systems. To put this in context: The Australia State of the Environment 2001 report found that about 26 per cent of Australia's surface water management areas were close to, or had exceeded, sustainable extraction

limits. Many river systems in the Murray-Darling Basin and along the east coast of Australia were either 'over-developed' or approaching 'fully-developed' status. The report also noted that only 13 per cent of river systems in Australia had formal environmental flow allocations—that is, water actively managed for environmental purposes. Under the National Water Initiative, water allocated for environmental and other public benefit outcomes will, for the first time, have at least the same degree of security as water for human consumption. The environmental values of rivers, estuaries and aquifers of high conservation value will be protected through a range of measures.

In addition, the Council of Australian Governments agreed to provide $500 million to address water over-allocation and environmental objectives in the Murray-Darling Basin. Of this, the Australian Government is contributing $200 million to address water over-allocation in the basin and to support the Living Murray Initiative.

For more information on the measures contained in the National Water Initiative and the Murray-Darling basin agreement, visit www.coag.gov.au .

The Department continued work on the National Water Quality Management Strategy. New guidelines that commenced under Phase 2 of the strategy will cover water recycling and water-sensitive urban design, helping to implement the urban component of the National Water Initiative.

The Department administered Australian Government expenditure totalling $41.702 million on environmental work under the Natural Heritage Trust's Rivercare programme.

112 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment 1 Inland waters

Review of performance

Wetlands conservation

Objective To enhance the protection of inland wetlands.

Activities

Ramsar wetlands

The Convention on Wetlands of International Importance especially as Waterfowl Habitiat, commonly known as the Ramsar Convention, seeks to halt worldwide losses of wetlands and to conserve those that remain. The Department is Australia's 'Administrative Authority' for the convention and worked to improve

the management of wetlands listed under the convention—Ramsar wetlands. The Environment Protection and Biodiversity Conservation Act 1999 sets out requirements for identifying and managing Ramsar wetlands, including the Australian Ramsar Management Principles.

During 2003-04, the Department helped to investigate possible nominations for under-represented wetland types around Australia. The Department assessed a draft Ramsar wetland management plan for consistency with the Australian Ramsar Management Principles. The Department also administered Natural Heritage Trust national investment projects to enhance management of Ramsar sites, and

to produce a wetlands conservation training module for regional facilitators and regional bodies.

Tropical wetlands research

The Department (including through the Environmental Research Institute of the Supervising Scientist, a partner in the National Centre for Tropical Wetland Research) undertook research, risk assessments and other technical work to protect the ecology of wetlands. Work during 2003-04 provided information about

managing feral pig damage, the herbicide Tebuthiuron, endocrine-disrupting compounds, and the weed Mimosa Agra.

113

In addition, the Department began a collaborative assessment of the risks posed

by ginger ants, Solenposis germinata, to seabird colonies at Ashmore Reef, and continued to provide technical guidance, notably for the Ramsar Convention's Scientific and Technical Review Panel, the Millennium Ecosystem Assessment and Wetlands International projects, and the coastal wetland component of the Reef Water Quality Protection Plan.

Result

The Department improved management of nationally and internationally significant Australian wetlands, promoted wetlands conservation internationally, and supported the sustainable management of tropical river systems.

114 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Inland waters Review of performance

Report on performance information

Tables 27 and 28 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 27: Conservation and sustainable use of inland waters including rivers, groundwater and wetlands (departmental appropriation)

Performance information Result

'Accuracy, timeliness and comprehensiveness of advice provided to the Minister on the conservation and sustainable use of inland waters.'

Timeframes were met and policy advice met the Minister's requirements.

'Extent to which significant freshwater ecosystems are protected and restored.' Activities in 2003-04 set in place decision tools, risk assessments and research to

support action to protect freshwater ecosystems. Information will be provided in the next State of the Environment Report

due in 2006 and the Sustainable Rivers Audits of the Murray-Darling Basin and the Lake Eyre Basin.

'Extent to which the condition of freshwater resources is improved.' Information will be provided in the next State of Environment Report due in 2006

and the Sustainable Rivers Audits of the Murray-Darling Basin and the Lake Eyre Basin.

'Extent to which the protection of inland wetlands is enhanced in Australia.' To date, all eight Ramsar wetlands in Commonwealth areas have management

plans and 50 of Australia's other 56 Ramsar wetlands have either operational or draft management plans, including 15 sites where the relevant management agencies released final or draft plans in 2003-04, and three additional sites (Boo[ and Hacks Lagoons in South Australia,'Riverland'in South Australia,

and Elizabeth and Middleton Reefs Marine National Nature Reserve) where existing plans are being developed with input from the Department.

115

Table 27 continued...

Performance information Result

'Extent to which [the Department] supports The Department supported international international efforts for the conservation efforts by providing policy advice, and sustainable development of inland delegation support, and briefing assistance, waters.' which were delivered on a range of bilateral

and multi-lateral activities.

'Number of projects to protect and restore Two Natural Heritage Trust projects that significant freshwater ecosystems are promote the improved management of implemented or being developed.' significant freshwater ecosystems were administered: Protection of rivers and river

reaches of high conservation value'and 'Tropical rivers and river protection

'Number of [Environment Protection and More than 130 referral and assessment Biodiversity Conservation Act 19991 referral, advices for Ramsar wetlands were assessment and permit actions completed.' completed.

116 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Inland waters

Review of performance

Table 28:Wetland ecology and conservation (departmental appropriation)

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met comprehensiveness of advice provided the Minister's requirements. to the Minister on wetland ecology and conservation.'

'Extent to which threats to tropical wetlands The Environmental Research Institute of the are identified and assessed.' Supervising Scientist continued to provide research services on tropical wetlands to other agencies:

â¢ In collaboration with Charles Darwin University (Key Centre for Tropical Wildlife Management) and traditional landowners, a decision support tool for managing feral pig damage in wetlands was developed.

â¢ Two papers on the aquatic toxicity and ecological risks of the herbicide Tebuthiuron were accepted for publication in peer-reviewed journals.

â¢ The presence and significance of endocrine disrupting compounds (originating from human activities) in recreational waterholes and wetlands receiving treated sewage effluent and stormwater from Jabiru township in Kakadu was determined in collaboration with the University of Sussex.

â¢ A risk assessment of the wetland weed Mimosa pigra in northern Australia was published.

â¢ In collaboration with the Parks and Wildlife Commission of the Northern Territory and the Australian Quarantine and Inspection Service,a risk assessment of the ginger ant So/enopsis germinata to seabird colonies at Ashmore Reef was commenced.

117

Table 28 continued...

Table 29: Pricing information forTables 27 to 28(a)

Appropriation Estimated price Revised price Actual expenses

$6409 million $8138 million $6231 million Inland waters—Output 1.7 (departmental)

See also the summary resource tables at the end of this Review of performance

Performance information Result

'Extent to which the Environmental Research Technical guidance, particularly in relation Institute of the Supervising Scientist (ERISS) to wetland inventory, assessment and contributes to requirements of international monitoring, was provided for international agreements and national policies on the agreements and assessments, such as the wise use of wetlands and methods of Ramsar Convention's Scientific and Technical assessment.' Review Panel, the Intergovernmental Panel

on Climate Change and the Millenium Ecosystem Assessment and Wetlands International projects.The Supervising Scientist Division also provided the Department with internal technical guidance and advice on wetland inventory and assessment, for example for the coastal wetland component of the Reef Water Quality Protection Plan.

'Extent to which managers and users For a list of technical reports published of tropical wetlands are provided with during 2003-04, see the Supervising information and expertise to enable the Scientist's annual report at www.deh.gov.au/ wise use of wetlands through sustainable about/annual-report.

practices.'

'Number of reports, including peer reviewedA total of 84 reports were prepared in articles and presentations, on techniques 2003-04.These reports included information developed for mapping wetlands relevant to mapping and monitoring distribution and monitoring change wetlands. A full list of publications from (including that caused by climate change 2003-04 is included in the Supervising and sea level rise).' Scientist's annual report at www.deh.gov.au/

about/annual-report.

118 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment

Land management Review of performance

Protecting and

managing the land The Department works to ensure the management of Australia's natural and agricultural land is ecologically sustainable. In 2003-04, the Department worked to: â¢ protect and restore native vegetation; and â¢ implement integrated natural resource management. This section reports on activities funded using the Department's appropriation for its 'land management' output. For more information about the Department's land management activities see also: â¢ the National Heritage Trust's annual reports at www.nht.gov.au/publications; and â¢ the annual report of the National Action Plan for Salinity and Water Quality at www.napswq.gov.au/publications. The Land, Water and Coasts Division and the Natural Resource Management Programmes Division contributed to this output. 119

Native vegetation

Objective To halt two centuries of decline in the extent and quality of Australia's native vegetation.

Activities

The Department is working with other Australian Government and state and territory government agencies and the Australian community to improve the way native vegetation is protected.

The National Framework for the Management and Monitoring of Australia's Native Vegetation is jointly implemented by the Department and other government agencies. On 16 April 2004, the Natural Resource Management Ministerial Council approved a review of the framework. The review has commenced.

The review will evaluate progress towards reversing the long-term decline in the quality and extent of Australia's native vegetation. The review will address the range of costs and benefits of vegetation management, and evaluate management tools such as volunteerism, grants, market-based measures and regulatory approaches. It will also consider best management practice.

The Department is also working in partnership with the Department of Agriculture, Fisheries and Forestry, through the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality, to increase the capacity of governments and communities to adopt ecologically sustainable land management practices. A focus of this work is to address salinity, especially dryland salinity, which is the build-up of salt in the soil surface in non-irrigated areas

The Department continued to monitor the implementation by the states and territories of their commitments to:

â¢ agreed institutional and legal reforms to improve native vegetation management; and â¢ prohibitions on land clearing in areas that would lead to unacceptable land and water degradation.

120 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Land management

Review of performance

During 2003-04, the Department also managed Natural Heritage investments to:

â¢ develop the Australian Collaborative Rangelands Information System, to bring together rangeland information from state and Northern Territory agencies and other sources—the system will improve the management of Australia's rangelands (generally and lands with diverse habitats and ecological communities);

â¢ collate information about current best practice for total grazing management and fire management; â¢ review salinity mapping methods—natural resource managers now have access to authoritative information on more than 30 different salinity mapping methods;

and

â¢ provide state and territory governments and regional organisations with information to assist regional organisations use incentives in regional natural resource management delivery.

Result

The review of the National Framework for the Management and Monitoring of Australia's Native Vegetation commenced. An updated framework is expected in late 2005.

The Department secured agreement to a range of commitments by state and territory governments to improve native vegetation management. These commitments are summarised in Table 30.

121

Report on performance information

Table 31 reports performance results against the indicators in the 2003-04 portfolio budget statements.

Table 31: Land management (departmental appropriations)

Performance information Result

'Accuracy, timeliness and comprehensivenessTimeframes were met and policy advice met of advice provided to the Minister on the Minister's requirements. sustainable land management.'

'New national strategies and projects Terms of reference were announced and a developed and implemented.' working group established to review the National Framework for the Management and Monitoring of Australia's Native Vegetation.

'Extent to which bilateral and regional All bilateral agreements finalised by agreements reflect the objectives on the 30 June 2004 reflected the objectives of National Action Plan for Salinity and Water the intergovernmental agreement for the Quality.' National Action Plan. Arrangements were

put in place to ensure that regional plans and agreements are consistent with the intergovernmental agreement.

'The number ofjurisdictions which have Bilateral agreements under the National in place institutional and legal regimes Action Plan set out specific commitments for to prohibit land clearing in areas which the implementation of agreed institutional would lead to unacceptable land and and legal reforms to prohibit land clearing in water degradation, in accordance with areas that would lead to unacceptable land and within the required timetable under and water degradation, in accordance with the Intergovernmental Agreement for the the timetable under the intergovernmental

National Action Plan.' agreement.

'Number of National Action Plan bilateral Seven National Action Plan bilateral and regional agreements signed.' agreements were signed by 30 June 2004—only the Australian Capital Territory was yet to sign.

'Number of accredited Regional plans in Thirty-three integrated regional natural place under the National Action Plan.' resource management plans were accredited by Australian Government Ministers.

'Number of capacity building initiatives for Capacity building initiatives were integrated natural resource management under the into all regional plans under the National National Action Plan, and feedback on their Action Plan. effectiveness.'

124 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment I Land management

Review of performance

Table 32: Pricing information for Table 31(a)

See also the summary resource tables at the end of this 'Review of performance'.

Appropriation Estimated price Revised price Actual expenses

Land management—Output 1.8 $3.246 million $6.168 million $5881 million (departmental)

125

Review of performance

Outcome 1 - Environment I Parks and reserves

Establishing and managing

protected areas The Department supports the development of networks of protected areas (including national parks) to conserve biodiversity, protect ecosystem services and provide nature-based recreation and tourism opportunities. In 2003-04, the Department worked to protect ecologically significant areas by: â¢ supporting the Director of National Parks in establishing and managing protected areas under the Environment Protection and Biodiversity Conservation Act 1999; â¢ coordinating the National Reserve System; and â¢ supporting the establishment of Indigenous Protected Areas. The Director of National Parks publishes a separate annual report containing detailed information about the management of protected areas, available at www.deh.gov.au/about/annual-report. The Parks Australia Division ('Parks Australia') contributed to this output. 126 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Parks and reserves

Review of performance

Protected areas

Objective To develop a comprehensive, representative and well-managed national system of protected areas.

Activities

Establishing and managing protected areas

Under the Environment Protection and Biodiversity Conservation Act 1 999, the Director of National Parks is responsible for Australian Government protected areas called 'Commonwealth reserves' and 'conservation zones'. The Department receives an appropriation for managing these areas and uses it to purchase management services from the Director.

The Director's annual report contains detailed information about the management of these protected areas during 2003-04 (see www.deh.gov.au/about/annual-report). In addition, summary information about marine protected areas is reported in the part of this annual report dealing with coasts and oceans.

National Reserve System

The National Reserve System represents the collective efforts of the states, territories, the Australian Government, non-government organisations and Indigenous landholders to achieve an Australian system of terrestrial protected areas to conserve our native biodiversity. It aims to include comprehensive, adequate and representative samples of all Australia's regional ecosystems.

During 2003-04, the Department led a national task force to develop a draft National Reserve System Directions Statement for the Natural Resource Management Ministerial Council. The statement will assist agencies in the development, management and understanding of the National Reserve System for the next ten years. The draft statement was released for public comment in

February 2004.

The Department also provided spatial data for marine and terrestrial areas in Australia for the United Nations' 2004 version of the World Database on Protected Areas.

127

The Department continued to administer the Natural Heritage Trust's National

Reserve System Programme, which funds the acquisition and covenanting of properties to add to the National Reserve System. The area acquired in 2003-04 (not including Indigenous Protected Areas, which are reported separately below) was 291 791 hectares and covered 20 properties (see Figure 12). Significant

purchases included:

â¢ Yanda, New South Wales, covering 28 224 hectares in the Cobar Peneplain and Darling Riverine Plains. Yanda encompasses seven broad vegetation types including River Red Gum riverine forest, Black Box—Coolabah open-woodland, and grassland. All of these are significantly under-represented at the bioregional and sub-regional levels. Yanda's acquisition will help protect seven state-listed flora species, 20 state-listed fauna species and five species listed under the

Environment Protection and Biodiversity Conservation Act 1999.

â¢ Glenalbyn, New South Wales, covering 14 187 hectares in the Mulga Lands bioregion. Glenalbyn contains six broad vegetation types that have low reservation and are under threat. It also contains significant stands of Brigalow, Acacia harpophylla, which is an outlying population of the main Brigalow distribution within New South Wales. Brigalow is listed nationally as an 'endangered ecological community' under the Environment Protection and

Biodiversity Conservation Act 1999.

â¢ Northern Plains Grassland near Kotta, Victoria, covering 224 hectares in the Riverina bioregion. The Kotta land incorporates mostly a northern plains grassland community, a once widespread ecosystem of the Victorian Riverina. It was identified as one of the highest quality areas outside the reserve system and

provides habitat for two nationally and state-threatened species.

â¢ Mutton Hole Wetland, Queensland, covering 9000 hectares in the Gulf Plains bioregion. This wetland contains Karumba plains wetland vegetation communities, all of which are unrepresented in the current reserve system. The wetlands of the Gulf Plains are of state and territory, national and international significance for breeding, feeding, moulting and drought refuge for waterbirds

that include Whistling Ducks, Sarus Cranes, Brolgas and waders.

â¢ Toulby station, Queensland, covering a total of 18 600 hectares in the Mulga Lands. The station abuts Culgoa Floodplain National Park and will increase its size to 61 900 hectares. It contains Brigalow, major samples of 14 regional ecosystems, including two 'endangered', six 'of concern' and two unreserved vegetation communities.

128 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment

Parks and reserves

Review of performance

â¢ Mooloolah Floodplain and Blackall Range are two properties in the South-east Queensland bioregion purchased by the Caloundra City Council as part of the Council's progressive establishment of the Blackall Range Conservation Corridor. The first block is part of a series of remnants in the highly fragmented, urbanised

coastal area covering 46 hectares. The second mountainous block of 25 hectares is at the other end of the catchment. It contains rainforest communities on sedimentary rock, one 'endangered' and one 'of concern'. â¢ Ethabuka Station, covering 214 000 hectares in the Channel Country bioregion.

The property adjoins the Simpson Desert National Park in Queensland (1 012 000 hectares), which then adjoins the Simpson Desert Conservation Park in South Australia (688 142 hectares), creating a continuous protected area of 1914 142 hectares. It contains major samples of two vegetation communities

and 16 others, including two mound springs, listed as 'endangered' under the Environment Protection and Biodivemity Conservation Act 1999. It has a highly diverse native small mammal community, as well as diverse reptile fauna and bird life associated with wetlands.

Figure 12: National Reserve System approvals for 2003-04

Legend

A NRS Acquisitions BRA 5.1

---

Data;

BRA 5.1 (2000) was developed cooperatively by States, Territories and the Department of the Environment and Heritage.

National Reserve System approval locations are based on information supplied by proponents to NHT funding. The nap does not include locations of the Tasmanian protect Protected Areas on Private Land (PAPL).

Mapping; Environmental Resources Information Network for the National Reserve System Section, 26 July 2004. Projection; Geographica Datum; WGSS4 A

o 125200 too

129

All new properties approved for inclusion in the National Reserve System contain ecosystems that are poorly represented or not represented at all in the National Reserve System. Many properties have rare or threatened species, communities and ecosystems, or species that depend on reserves for their survival.

Indigenous Protected Areas

Parks Australia works in partnership with Indigenous Australians to establish Indigenous Protected Areas, which are non-statutory protected areas that form part of the National Reserve System. Under the National Reserve System Programme, the Department administers Natural Heritage Trust funding to support Indigenous organisations in establishing and managing Indigenous Protected Areas. In 2003-04, two new Indigenous Protected Areas covering 5106 hectares were declared and three new projects were approved for funding (see Tables 33 and 34).

Table 33: New Indigenous Protected Areas declared in 2003-04

Table 34: New Indigenous Protected Areas projects approved for funding in 2003-04

Areas are indicative only, with boundaries yet to be finalised.

Property State Size (hectares)

Toogimbie New South Wales 4858

Tyrendarra Victoria 248

Total 5106

Property State Size (hectares)

Mount Serle Station South Australia 50500

Ngarrbullgan Queensland 148 000

Kaanju Homelands Queensland 471 500

Total 670000

130 Department of the Environment and Heritage Annual Report 2003-04

â¢ Indigenous Protected Areas

Other National Reserve System protected areas

1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04

Outcome 1 - Environment Parks and reserves

Review of performance

Results

This area represents three per cent of Australia's mainland (see Figure 13). The total area covered by terrestrial protected areas (including state and territory protected areas) in Australia is 77.462 million hectares or just over ten per cent of Australia's landmass (see www.deh.gov.au/parks/nrs/capad).

The two new Indigenous Protected Areas declared during the year took the number of Indigenous Protected Areas to 19 (see Figure 14).

Figure 13: National Reserve System additions (1996-2004)

Financial year

131

â¢ IPA Current Projects - â¢ IPA Daclared Protected Areas CAPAD2002

Aboriginal Lands

Figure 14: Indigenous Protected Areas

Warul Kawa .

Palu Islet

Kaanju Homelands

Ngarrabullgan

Ohimurru

Laynhapuy

Guanaba

WIII

Ugw

!9aanyatiara W &

' MOU tr : Watllerscfge rters -- Ntawarflna Beach Yalata . Toogimble

Legend

Projection: Geographins Sources CAPAD 2002, Geoscience Australia Land Tenure

Produced by ERIN, June 2004

Preminghana

Mt.Chappell .& Badger Is. Risdon Cove oyster Cove

.4yrendarr :

OeenMaar

132 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1

- Environment Parks and reserves

Review of performance

Report on performance information

Tables 35 to 37 report performance results against the indicators in the 2003-04 Portfolio Budget Statements.

Table 35: Managing protected areas(a) (departmental appropriations)

Please refer to the annual report of the Director of National Parks at www.deh.gov.au/ahoutlannual-report for a complete report of performance against the Director's seven key result areas for protected area management.

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met comprehensiveness of advice provided to the Minister's requirements the Minister on managing protected areas.'

'Extent to which the Commonwealth's Management of all Commonwealth reserves reserves are managed as required by the was carried out in accordance with the [Environment Protection and Biodiversity requirements of the Environment Protection Conservation Act 1999], relevant leases and and Biodiversity Conservation Act 1999 and

other contractual arrangements.' the Director's legal responsibilities were met.

'Extent to which best practice management Management plans were in effect and is demonstrated through: implementation schedules were completed

â¢ number of parks with current for 17 of the 20 parks and reserves.The management plans; performance assessment approach to annual reporting introduced last year has â¢ number of parks with implementation been continued and provides a consistent

plans; approach to planning and performance

â¢ progress on development of a park throughout the agency. Implementation management effectiveness programme; and reporting systems were further and enhanced. Parks Australia participated in risk

management benchmarking and received a

â¢ progressive Improvement in our commendation in the inaugural ComCover performance information.' awards. 'Extent to which the Director meets his Please refer to the annual report obligations under park leases through: of the Director of National Parks at â¢ management of the cultural heritage of www.deh.gov.au/about/annual-report

for

the parks; details.

â¢ timely payment of monies due under the lease; and

â¢ growth in employment opportunities for Traditional Owners through direct or indirect employment.'

133

III

Table 36: Enhancing the National Reserve System (departmental appropriations)

Table 37: Pricing information for Tables 35 to 36(a)

See also the summary resource tables at the end of this 'Review of performance.

Performance information Result

'Accuracy, timeliness and Timeframes were met and policy advice met comprehensiveness of advice provided the Minister's requirements to the Minister on enhancing the national reserve system.'

'The comprehensiveness, adequacy and Enhancement is through acquisitions representativeness of the National Reserve and covenanting properties in priority System is enhanced.' bioregions or in priority ecosystems for other bioregions. Properties acquired

or covenanted were located in five very high priority bioregions, six high priority bioregions, six medium priority bioregions and four low priority bioregions.

'Extent to which new reserves protect The Department added almost ecosystems which have been poorly 300 000 hectares to the National Reserve represented in the national system: System. Properties acquired (using increase in area of the reserve system.' Natural Heritage Trust funding) contained:

89 ecosystems, including 72 ecosystems unrepresented or inadequately represented in the current reserve system; 54 species listed under the Environment Protection and Biodiversity Conservation Act 1999; and 17 ecosystems listed either under state and territory or Australian Government legislation.

'Extent to which best practice management As at 30 June 2004, there were 135 reserves is demonstrated through: with plans and interim management plans â¢ number of reserves with current and no joint management arrangements. management plans; and â¢ development of agreements for joint/

cooperative management arrangements with Aboriginal people and other government agencies.' -

Appropriation Estimated price Revised price Actual expenses

Parks and reserves—Output 1.9 $34.894 million $39.151 million $40.336 million (departmental)

134 Department of the Environment and Heritage Annual Report 2003-04

Outcome 1 - Environment

I Natural Heritage Trust

Review of performance

Administering Natural

Heritage Trustprogrammes The Natural Heritage Trust contributes part of the appropriation for the Department's outputs. The Department, through the Natural Resource Management Programmes Division, manages the Natural Heritage Trust's Bushcare, Landcare, Rivercare and Coastcare programmes jointly with the Department of Agriculture, Fisheries and Forestry. During 2003-04, the Department administered Australian Government expenditure totalling $249.977 million on environmental work under the Natural Heritage Trust, made up of: â¢ $99208 million under the Bushcare programme; â¢ $73.187 million under the Landcare programme; â¢ $41702 million under the Rivercare programme; and â¢ $35880 million under the Coastcare programme. For more information, see the Natural Heritage Trust's annual report at www.nht.gov.au/publications. 135

Report on performance information

Table 38 reports performance results against the indicators in the 2003-04 portfolio budget statements.

Table 38:Administration of Landcare, Bushcare, Rivercare and Coastcare Programmes (administered appropriation)

Performance information Result

'Investments are approved in accordance The Minister for the Environment and with agreed guidelines.' Heritage and the Minister for Agriculture, Fisheries and Forestry approved investment proposals that contributed to the Trust's

objectives and were consistent with the Trust's priority areas of activity.

'Bilateral agreements signed with the states The bilateral agreements reflect the agreed and territories reflect agreed priorities priorities and delivery arrangements for the and delivery arrangements for the Natural Trust. Heritage Trust.'

'Integrated Natural Resource Management Sixteen regional integrated management Regional Plans meet agreed accreditation plans were accredited against the agreed criteria.' accreditation criteria.

'All investments approved by Ministers TheTrust provided funding for all investments in 2003-04 are provided with funding, under Financial Agreements.The Envirofund in accordance with Trust accountability (the local grants component) and national and acquittal procedures, to meet Trust components used standard contracts that objectives. Bilateral agreements signed withreflect the Trust's accountability, reporting and each State/Territory.' acquittal procedures.

'Number of investment strategies prepared The Department worked with the Department and evaluated for which funding is agreed of Agriculture, Fisheries and Forestrthe and specified in Partnership Agreements.' states, territories and regional bodies to prepare investment strategies at the same

time as integrated regional natural resource management plans, with most progress in New South Wales, Victoria and South Australia.

'Number of individuals/community groups The Envirofund approved 1411 projects for supported through Australian Government funding of $19.952 million during 2003-04. Envirofund grants.'

'Number of on-ground actions by type Eighty-nine per cent of Envirofund projects funded by the Trust.' focussed on on-ground activities. For details,

seethe Natural Heritage Trust's annual

report at www.nht.gov.au/publications.

136 Department of the Environment and Heritage Ann ua' Report 2003-04

Outcome 2

- Antarctica

Australia's interests in Antarctica are advanced

Progress towards Outcome 2 This section summarises overall progress towards Outcome 2.

Influencing the Antarctic Treaty System

The Department takes the lead on issues of concern to Australia and develops initiatives for international consideration. It supports Australia's compliance with the requirements of the Antarctic Treaty System and cooperation with Antarctic Treaty partners. During 2003-04:

â¢ Australia worked closely with other parties to the Antarctic Treaty on a number of initiatives to improve the management of tourism in Antarctica, including measures on insurance and contingency planning for tourism and adventure expeditions. Australia also played an active role in negotiating rules for liability for environmental damage. â¢ Australia was instrumental in working out the details for the establishment of

a permanent secretariat of the Antarctic Treaty. The secretariat will commence work in Buenos Aires in September 2004. â¢ An electronic system developed by Australia for Antarctic State of the Environment reporting was endorsed for further development by the 2004

Antarctic Treaty Consultative Meeting.

137

—

â¢ Australia played a lead role in the development of key conservation measures at the 2003 meeting of the Commission for the Conservation of Antarctic Marine Living Resources to better manage exploratory and established fisheries, to minimise by-catch and to combat pirate fishing. Australia also played major roles in the commission's scientific committee and working groups.

â¢ The Australian Antarctic Division continued its efforts in Southern Ocean whale research. â¢ The Agreement for the Conservation of Albatrosses and Petrels, for which Australia is currently acting as the interim secretariat, entered into force. The

agreement marks a considerable step forward in the international work to protect these threatened seabirds. â¢ Australian scientists continued to play prominent roles in the Scientific Committee on Antarctic Research and its sub-committees.

â¢ The Director of the Australian Antarctic Division was re-elected to chair the international Committee for Environmental Protection for a further two years.

Protecting the Antarctic environment:

The Department minimises the human impacts of current activities, repairs past work sites, and undertakes research to ensure Antarctic resource management is based on sound scientific principles. During 2003-04:

â¢ The Australian Antarctic Division maintained certification of its environmental management system to the international standard (ISO 14001). â¢ At the 2004 Antarctic Treaty Consultative meeting Australia achieved Antarctic Specially Managed Area status for the Cape Denison precinct of the 1912-14

Australasian Antarctic Expedition led by Douglas Mawson. â¢ A major research voyage around Heard Island was completed. Research findings will help to support the ecologically sustainable management of the fishery in the region. â¢ Work to minimise seabird by-catch by increasing the sink rate of fishing

lines was recognised internationally by the awarding of a prestigious Pew Marine Conservation Fellowship to Australian Antarctic Division scientist Dr Graham Robertson. Dr Robertson initiated the manufacture of weighted longlines, conducted scientific trials into their effect on by-catch, persuaded fishing companies to use the new techniques, and publicised the results to encourage widespread adoption of the weighted longlines. â¢ The Department removed 1000 cubic metres of contaminated material from the

Thala Valley waste tip near Casey as the first stage in a ten-year plan to clean up Australia's old waste sites in Antarctica.

138 Department of the Environment and Heritage Annual Report 2003-04

Progress towards Outcome 2

- Antarctica

Review of performance

Understanding the global climate system

Through Australia's Antarctic science programme, the Department is advancing understanding of Antarctica's role in the global climate system and contributes data to the world's climate research and meteorological communities. During 2003-04:

â¢ Glaciologists from the Australian Antarctic Division found evidence of a decline in the extent of Antarctic ice with chemical signals from an ice core taken from Law Dome near Casey station indicating a diminution in the sea ice of around 20 per cent in the past 50 years. â¢ Division scientists found that in the past three years a major glacier, Brown

Glacier on Heard Island, had retreated 50 metres. The surface of the lower slopes of the glacier lost as much as 11 metres in height. â¢ Atmospheric physicists from the Division successfully predicted a large ozone hole over much of Antarctica from work involving a light detection and ranging

instrument. â¢ Research into Southern Ocean biogeochemical processes showed carbon dioxide uptake correlates dramatically with phytoplankton stocks.

Undertaking practical and significant scientific research

The Department provides data and support for Australian and international collaborators and conducts physical, biological and medical research. During 2003-04:

â¢ Investigation of the biotechnological potential of Antarctic microorganisms continued. â¢ Extensive oceanographic data collected during the simultaneous land-sea research programme on the marine food web around Heard Island provided

insights into why some areas are more productive than others. â¢ New technologies developed by Australian scientists were used during the clean up of the Thala Valley waste tip to control the dispersion of contaminants from the site. Their success was confirmed using environmental monitoring

techniques not previously attempted in Antarctica.

139

Outcome 2

Antarctic Treaty System Review of performance

Influencing the Antarctic

Treaty System The Department takes the lead on issues of concern to Australia and develops initiatives for international consideration. It supports Australia's compliance with the requirements of the Antarctic Treaty System and cooperation with Antarctic Treaty partners. In 2003-04, the Department participated in international activities related to: â¢ managing tourism and fishing; â¢ protecting seabirds and whales; and â¢ managing data and Antarctic programmes. The Australian Antarctic Division contributed to this output. 140 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic Treaty System

Review of performance

Antarctic Treaty System

Objective To maintain the Antarctic Treaty System, to enhance Australia's influence in it and to enhance international protection for whales and seabirds.

Activities

Representation in the Treaty System To further Australia's interests, the Department has a strong presence at Antarctic Treaty meetings and related forums, which include:

â¢ Antarctic Treaty Consultative Meetings (where representatives of the nations of the Antarctic Treaty System gather at intervals to discuss matters relating to the management of the Antarctic Treaty area and to further develop the Antarctic Treaty system); â¢ the Committee for Environmental Protection (which advises the Antarctic Treaty

nations about environmental protection under the Protocol on Environmental Protection to the Antarctic Treaty and normally meets once a year in conjunction with the Antarctic Treaty Consultative Meeting);

â¢ the Commission for the Conservation of Antarctic Marine Living Resources (which manages Antarctic marine living resources, other than whales and seals, under the similarly named international convention); â¢ the Council of Managers of National Antarctic Programmes (which meets

annually to discuss cooperative logistics and scientific programmes, develop standard operational procedures and, if requested, formulate advice for the Antarctic Treaty Consultative Meeting and Committee on Environmental Protection); and â¢ the Scientific Committee on Antarctic Research and its sub-groups (the

Committee, which meets every two years, is an inter-disciplinary committee of the International Council for Science charged with the initiation, promotion and coordination of scientific research in Antarctica).

During 2003-04, the Department was instrumental in developing the details for establishing the permanent secretariat of the Antarctic Treaty. This year's Antarctic Treaty meeting agreed on the remaining legal and operational issues, which will enable the secretariat to commence work in Buenos Aires in September 2004.

141

Australia played a leading role at the 2004 meeting of the Committee for

Environmental Protection. The Director of the Department's Australian Antarctic Division was re-elected to chair the committee for a further two years. The committee adopted Australia's proposal for an Antarctic Specially Managed Area and associated Antarctic Specially Protected Area for Mawson's Huts at Cape

Denison.

The Commission for the Conservation of Antarctic Marine Living Resources coordinates approaches to the sustainable management of Antarctic fisheries. Through the commission, Australia is leading international efforts to combat illegal fishing in the Southern Ocean.

The Department represents Australia on the Council of Managers of National Antarctic Programmes and many of its subgroups, including the Standing Committee on Antarctic Logistics and Operations. Four departmental officers hold leadership positions in the council's working groups and networks—as chair of the standing committee and as coordinators of three out of four council networks (namely energy management, training, and environment).

Scientists working for the Department played a major role in committees of the Scientific Committee on Antarctic Research.

Managing tourism

Over the past decade, tourist visits to Antarctica have doubled with 20 000 visitors last year. Tourist vessels operating in Antarctica have increased from 12 to 47. There is every indication this interest in Antarctica will continue to grow. Antarctic tourism needs to be managed to prevent future damage to the environment.

Australia is working closely with other parties to the Antarctic Treaty to improve the management of tourism in Antarctica. At the Antarctic Treaty's meeting of experts on Antarctic tourism in Norway in March 2004, the Department made a number of proposals, which included:

â¢ establishing an accreditation scheme for tour operators ; â¢ developing a database for tourism activities to provide accurate, timely information with which to manage these activities;

â¢ establishing quarantine protocols; and â¢ limiting tourism to activities that have no more than a minor transitory environmental impact.

142 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic Treaty System

Review of performance

Achieving integrated management of tourism in Antarctica was also a priority for the Australian delegation at the May 2004 Antarctic Treaty Consultative Meeting in Cape Town, To help protect Antarctica's wilderness and wildlife, the delegation presented a proposal for the development of an Antarctic tourism industry accreditation scheme and other proposals to better manage non-government activities.

Managing fishing

There is a long history of over-exploitation of Antarctic marine living resources (whaling and sealing) and recently illegal fishing for toothfish has increased, with consequent damage to Antarctic ecosystems.

Through the Commission for the Conservation of Antarctic Marine Living Resources, the Department was instrumental in obtaining support for a trial of a centralised vessel monitoring system—a key tool for combating illegal, unregulated and unreported fishing. While the commission already has a catch documentation scheme (an earlier Australian initiative) that tracks the taking, landing and trading of the highly prized Patagonian toothfish, a centralised vessel monitoring system is seen as essential to verify and validate claims made by fishing vessels.

Australia has worked with commission members to support the vessel monitoring system trial and to bolster support for full adoption of the system at the 2004 commission meeting. Australia also argued strongly for the addition of vessels to the commission's illegal, unregulated and unreported, or 'pirate', vessel list and other initiatives to combat illegal, unregulated and unreported fishing.

The Department's research directly contributed to the revision or renewal of key conservation measures relating to:

â¢ Antarctic krill fisheries and exploratory finfish fisheries in the Antarctic;

â¢ established fisheries for Patagonian toothfish and mackerel icefish around Heard Island and McDonald Islands; and â¢ incidental mortality of seabirds associated with fishing.

The research directly influenced key elements of these measures such as total allowable catch limits. A scientist working for the Department was awarded a prestigious Pew Marine Conservation Fellowship for his work into seabird by-catch mitigation.

143

Albatross and petrel conservation

The recovery of 21 albatross and two giant petrel species listed under the Environment Protection and Biodiversity Conservation Act 1999 was supported through implementation of a recovery plan. The mitigation of by-catch of these birds in longline fisheries—a key threatening process for seabirds—was managed through implementation of the threat abatement plan for the incidental catch (or by-catch) of seabirds in oceanic longline fishing. As a result, the by-catch of

albatrosses has been reduced to extremely low levels in all Australian longline fisheries, although the by-catch of flesh-footed shearwaters still needs to be further reduced.

Conservation of highly migratory species such as albatrosses and petrels cannot be achieved by any single country acting independently of other nations that share the same species populations. Australia has therefore encouraged other countries to act to protect these seabirds both nationally and internationally. This has been pursued through international forums such as the Convention for Conservation of Migratory Species of Wild Animals—and a number of other international forums including the Commission for the Conservation of Antarctic Marine Living Resources and fishing forums.

In 2004, the Agreement for the Conservation of Albatrosses and Petrels came into force. Australia is the depositary government of the agreement. This activity was funded through an administered appropriation as a national investment project of the Natural Heritage Trust.

Australia was instrumental in developing the agreement, providing support for meetings to negotiate the text of the agreement and assisting delegates from developing countries to attend the meetings. To date there are 11 signatories to the agreement and six nations (Australia, the United Kingdom, Ecuador, New Zealand, Spain and South Africa) have also ratified the agreement. There is now strong

international commitment to protecting albatrosses and petrels.

Whale protection

In July 2003 the Department transferred responsibility for international marine species (whales and albatrosses) to its Australian Antarctic Division. These responsibilities include Australia's approach to the International Whaling Commission. A research plan to support Australia's position in the commission was developed in consultation with relevant stakeholders and recruitment of new research staff commenced. In 2003-04, scientists working for the Department also played a significant role in the commission's scientific committee.

144 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic Treaty System

Review of performance

Australia maintained its position on seeking a permanent ban on commercial whaling, opposing so-called scientific' whaling and seeking the continuation and creation of whale sanctuaries. Australia continued to pursue these issues in the lead up to the 561h meeting of the International Whaling Commission in July 2004.

April 2004 saw the 25' anniversary of Australia's change of policy on whaling. This was a significant Australian milestone and provided an opportunity to highlight the Australian Government's continuing commitment to protecting whales in Australian waters and improving the protection of whales throughout the world. To mark the occasion, a commemorative reception was held at Parliament House where the Australian Government was presented with a Gift to the Earth award for its commitment to whale protection.

The second workshop on the Convention on Migratory Species and marine mammal conservation in the South Pacific was held in Apia in March 2004. The workshop, which was partly funded by the Department, was a success in both attendance and outcomes. It confirmed widespread interest in both Convention on

Migratory Species membership and developing a regional arrangement for marine mammal conservation. Samoa announced it would become the first island state of the South Pacific to join the convention.

Data management

The Scientific Committee on Antarctic Research biodiversity database, which the Australian Antarctic Data Centre developed, is fully operational and accepting new biological observations from the international Antarctic biological research community.

The Australian Antarctic Data Centre has added 118 000 records to the database, including observations from the United Kingdom and records from the Regional Sensitivity to Climate Change workshop in Paimpont, France. The system has been expanded to accommodate satellite tracking data from species. It has also been exposed to the Global Biodiversity Information Facility using international standards for sharing data (Web Services). The Department's Australian Antarctic

Data Centre was the first Australian organisation in the facility. This delivery strategy enables simple, standardised access to a large base of biological data from around the world. Over the next year, the Web Services protocols will be extended to enable the biodiversity database to support the National Oceans Office's anticipated

Oceans Web Portal.

145

The Australian Antarctic Data Centre's approach to scientific data management has

been widely acknowledged as highly successful, and the Department's advice is sought by many Australian and overseas organisations. An external review of the centre in November 2003 confirmed this status. The Chinese and New Zealand Antarctic Data Centres are using the Australian Antarctic Data Centre's data management strategy as a scientific information management model.

The synergy between scientific data management and Australia's Antarctic Mapping Programme within the Australian Antarctic Data Centre results in efficient production of a wide range of digital map and other geographical information system products online. The centre hosts a comprehensive web-based Antarctic Map Catalogue. Six Antarctic Treaty nations have contributed 76 maps to this online

catalogue over the past 12 months. Of these, the centre produced 47.

Managing Antarctic programmes

At this year's meeting of the Council of Managers of National Antarctic Programmes in July 2004 a Symposium was held under the council's auspices and the Department provided several posters outlining Australia's operational activities in

the Antarctic. In addition, one of the CASA 212 aircraft which has been purpose-built for use by the Australian Antarctic Division within Antarctica was on display. Two CASA 212 aircraft will begin operating within Antarctica in the 2004-05 season.

Result

Australia worked closely with other parties to the Antarctic Treaty on a number of initiatives to improve the management of tourism in Antarctica, including measures on insurance and contingency planning for tourism and adventure expeditions. Australia also played an active role in negotiating rules for liability for environmental damage.

Australia was instrumental in working Out the details for the establishment of a permanent secretariat of the Antarctic Treaty. The secretariat will commence work in Buenos Aires in September 2004.

An electronic system developed by Australia for Antarctic State of the Environment reporting was endorsed for further development by the 2004 Antarctic Treaty Consultative Meeting.

146 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2 Antarctic Treaty System

Review of performance

Australia played a lead role in the development of key conservation measures at the 2003 meeting of the Commission for the Conservation of Antarctic Marine Living Resources to better manage exploratory and established fisheries, to minimise bycatch and to combat pirate fishing. Australia also played major roles in the commission's scientific committee and working groups.

The Australian Antarctic Division continued its efforts in Southern Ocean whale research.

The Agreement for the Conservation of Albatrosses and Petrels, for which Australia is currently acting as the interim secretariat, entered into force. The agreement marks a considerable step forward in the international work to protect these threatened seabirds.

Australian scientists continued to play prominent roles in the Scientific Committee on Antarctic Research and its sub-committees.

The Director of the Australian Antarctic Division was re-elected to chair the international Committee for Environmental Protection for a further two years.

147

Report on performance information

Table 39 reports performance results against the indicators in the 2003-04 portfolio budget statements.

Table 39: To maintain the Antarctic Treaty System and enhance Australia's influence within the System (departmental appropriation)

PerfQrmance

.â¢.â¢.. .. â¢.. .:.::. â¢. â¢.. .â¢â¢::â¢.â¢: . . .

information Result

. .H.

Australia's position is advanced by policy The Department played a key role in these proposals, briefings and attendance at key forums in 2003-04 and Australia's key forums within the Antarctic Treaty System objectives were advanced including in including: relation to tourism, protected areas and

â¢ Antarctic Treaty Consultative Meetings; illegal, unregulated and unreported fishing.

â¢ Commission for the Conservation of Antarctic Marine Living Resources;

â¢ Committee for the Environmental Protection;

â¢ Council of Managers of National Antarctic programmes; and

â¢ Scientific Committee on Antarctic Research.

'Provide Chair and other support for the The Director of the Department's Australian CEP [Committee for the Environmental Antarctic Division was re-elected as chair Protection].' of the Committee for the Environmental

Protection for a further two years. Australia as chair continues to improve the committee's processes.

148 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic Treaty System

Review of performance

Table 39 continued..

Performance information Result

Influence, by directed research, the decisions of ATS [Antarctic Treaty System], including CCAMLR [Commission for the Conservation of Antarctic Marine Living Resources].'

'Produce general policy and management measures for by-catch species for consideration by CCAMLR [Commission for the Conservation of Antarctic Marine Living Resources].'

'Produce methodological papers for International Whaling Commission (IWC) and CCAMLR [Commission for the Conservation of Antarctic Marine Living Resources].'

'Advocate, using scientific data, precautionary catch limits on toothfish in Heard Island and McDonald Islands (HIMI) Exclusive Economic Zone, and for icefish

and other fish off AAT [Australian Antarctic Territory].'

The Department contributed directly to conservation measures for:

â¢ the Antarctic krill fisheries and exploratory finfish fisheries in the Antarctic;

â¢ established fisheries for Patagonian toothfish and mackerel ice fish around Heard Island; and

minimising incidental mortality of seabirds associated with fishing.

The Department was instrumental in gaining support for a trial of a centralised vessel monitoring system,a key tool for combating illegal, unregulated and unreported fishing.

'Influence the decisions of the ATS [Antarctic Treaty System] by high quality Human Impacts research.'

'Brief CEP [Committee for the Environmental Protection] delegation on recommendations arising from experiments on contaminant dispersion, remediation and monitoring.'

'Contribute to report for CEP [Committee for the Environmental Protection] on technical and practical measures to minimise the risk of introduction and spread of non-indigenous species to the Antarctic region.'

Reported in Table 41 in the next section 'Protecting the Antarctic environment

149

Fable

39 continued...

Performance information 1 ol

Result

'Involvement in the planning and execution of major SACR [Scientific Committee on Antarctic Research] scientific programmes.'

'Key role played by Australian scientists in the planning and execution of Antarctic and Southern Ocean components of the World Climate Research Programme.'

'Development of the SCAR [Scientific Committee on Antarctic Research] Biodiversity RiSCC database to operational stage.'

'Publish results from 'Space Ship Earth' analyses of cosmic anisotopes and transients.'

'Provide 400kyr palaeoenvironmental chronology (IMAGES) from South Tasman Rise and Chatman Rise.'

Scientists working for the Department continue to play a major role in Scientific

Committee on Antarctic Research committees, in particular steering committees for programmes investigating Antarctic sea ice and climate.

Space Ship Earth observations of the impact at earth of a huge burst of radiation from the sun in 2001 were analysed and published. Three further blasts, observed between

29 October and 3 November 2003 by the network, are being analysed.The Space Ship Earth network also observed a number of space weather storms. Analysis tools to aid in their prediction are being developed.

'Effective administration of the Australian Antarctic Territory and the Territory of Heard Island and McDonald Islands in accordance with relevant Australian legislation and international obligations.'

'Permits issued or administered under Antarctic environmental protection legislation.'

'Develop a management plan for the Heard Island and McDonald Islands Marine Reserve.'

'All new activities subjected to prior environmental impact assessment in accordance with legislation and relevant management plans.'

The Australian Antarctic Territory and the Territory of Heard Island and McDonald Islands were administered in accordance with the relevant legislation and international obligations.The Heard Island and McDonald Islands Marine Reserve was managed under delegation from the Director of National Parks. A draft management plan was developed for the marine reserve, This is expected to be released for public comment in the second half of 2004.A land—sea research programme on the marine ecosystems of Heard Island and the surrounding Southern Ocean in 2003-04 is informing development of the management plan for the reserve.

150 Department of the Environment and Heritage Ann ua' Report 2003-04

Appropriation

Estimated price Revised price Actual expenses

Influence in Antarctic Treaty System—Output 2.1 (departmental)

$13.332 million $14.424 million $14.287 million

Outcome 2

Antarctic Treaty System

Review of performance

Table 39 continued...

Performance information Result

151

'Continue Australia's leadership in applied

mapping and data management.'

'Support and populate biodiversity database for the SCAR [Scientific Committee on Antarctic Research] Regional Sensitivity to Climate Change programme.'

'Prepare ICG [Intersessional Contact Group] Working Paper (with New Zealand) on State of Antarctic Environment Reporting to the CEP [Committee for the Environmental Protection].'

'Maintain and up-date the Antarctic spatial data dictionary for SCAR [Scientific Committee on Antarctic Research] Working Group on Geodesy and Geographic

Information.'

An Australian model for State of the Environment reporting was accepted by the Antarctic Treaty Consultative Meeting.The Scientific Committee on Antarctic Research biodiversity database, developed by the

Australian Antarctic Data Centre, is now fully operational and accepting new observations from the international biological research community.

The Scientific Committee on Antarctic Research's Antarctica Data Dictionary has evolved with international standards

into what is now known as the Antarctic Feature Catalogue. Scientists working for the Department played a leading role in the Climate and Cryosphere project, a major initiative of the World Climate Research Programme. As well as being represented on the executive of the Scientific Steering Group of Climate and Cryosphere,

glaciologists working for the Department contributed to the work of the Climate and Cryosphere Data Management and Information Panel; the Climate Variability and Predictability Programme {CLIVAR]/ Climate and Cryosphere Southern Ocean Panel; and the International Programme.

The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not absa s quoted verbatim as in the similar tables for Outcome 1.

Table 40: Pricing information for Table 39 (a)

See also the summary resource tables at the end of this 'Review of performance.

Outcome 2

Antarctic environment I Review of performance

Protecting the Antarctic

environment The Department minimises the human impacts of current activities, repairs past work sites, and undertakes research to ensure Antarctic resource management is based on sound scientific principles. In 2003-04, the Department's work focused On: â¢ environment protection laws; â¢ international efforts to protect the Antarctic environment; â¢ enhancing fisheries management; â¢ understanding biodiversity; â¢ understanding sea ice changes; â¢ preventing and managing pollution; and â¢ understanding ozone depletion. The Australian Antarctic Division contributed to this output. 152 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic environment

Review of performance

Antarctic environment

Objective To protect the environment of Antarctica, the Southern Ocean and the Territory of Heard Island and McDonald Islands.

Activities

Environment protection laws

The Antarctic region—Antarctica, the Southern Ocean and the sub-Antarctic— encompasses diverse and often unique ecosystems, which are under increasing threat from human activities and environmental changes. At some locations —particularly around long-standing research stations—there is evidence of

past human activity and, as Antarctic tourism increases, the pressures on the environment grow.

Australia has international obligations to protect the Antarctic environment under the Protocol on Environment Protection to the Antarctic Treaty, and under Australian legislation, notably the Antarctic Treaty (Environment Protection) Act 1980, the Antarctic Marine Living Resources and Conservation Act 1981 and

the Environment Protection and Biodiversity Conservation Act 1999.

The Department administers relevant legislation to minimise the human impacts of current activities, which involves assessing the potential impacts of all Australian activities in Antarctica and issuing relevant approvals and permits.

International efforts to protect the Antarctic environment

The Department plays a leading role internationally through the Committee for Environmental Protection, of which the Director of the Department's Australian Antarctic Division is the current chair.

In recognition of its lead role in Antarctic tourism issues, Australia has been asked to coordinate work by Committee for Environmental Protection members to assess the suitability of existing environmental impact assessment processes to tourism and similar non-government activities.

Australia was again influential in the committee's deliberations on area protection and environmental impact assessment, and in securing the committee's endorsement for further development of Australia's model for Antarctic State of the Environment reporting (see the Antarctic Treaty System part of this annual report).

153

Australia's management plans for the Cape Denison historic precinct were endorsed

by the committee, and plans to protect the unique seabird assemblages at Scullin and Murray Monoliths near Mawson station were endorsed for final consultation.

The Department also established a new international collaboration with Canada to work towards environmental guidelines for polar regions similar to the water quality guidelines available for mainland Australia.

Enhancing fisheries management

The Department leads scientific and policy responsibility for Australia's participation in the Commission for the Conservation of Antarctic Marine Living Resources, the International Whaling Commission and the Agreement for the Conservation of Albatrosses and Petrels.

Australian contributions to the working groups of the Commission for the Conservation of Antarctic Marine Living Resources during 2003-04 included considerable analysis of the commission's Ecosystem Monitoring Programme The Australian Antarctic Division also contributed to:

â¢ assessing the abundance of toothfish and icefish; â¢ assessing the status of several species of albatrosses; and â¢ reducing the numbers of seabirds caught as by-catch on long lines.

The Department conducted further successful work to minimise seabird by-catch by increasing the rate at which fishing lines sink.

A major research voyage around Heard Island was completed. The voyage examined food web linkages so the fishery in the region can be managed sustainably. Researchers examined the food supply available to seals, penguins and albatrosses, which were satellite tracked from the island.

Understanding biodiversity

Ongoing work by biologists working for the Department is creating and populating Antarctic databases of known organisms, habitats and terrestrial vegetation communities. This work is to enable better understanding of the structure and genetic complexities of these communities and the consequences of environmental change.

Researchers developing Antarctic biodiversity databases of known organisms, habitats and terrestrial vegetation communities have found:

â¢ a new virus which is causing disease symptoms in plants on Macquarie Island, which is the southernmost plant virus found; and

154 Department of the Environment and Heritage Annual Report 2003-04

Review of performance

155

Outcome 2 Antarctic environment

â¢ a fungal infection of a moss on Heard Island, which was identified by

morphological and genetic analyses, and characterised by gene sequencing.

A major reference text on the moss flora of Macquarie Island was also published.

The biodiversity of ecologically-important invertebrates (Collembola) in Antarctica, the sub-Antarctic islands, Australia and New Zealand is being explored using molecular and morphological techniques to better understand the distribution patterns of the species and to provide molecular data that will lead to automated species identification.

Several studies contributed to an understanding of how global change can lead to changes in biodiversity:

â¢ Antarctic nitrogen fixing microbes were isolated and examination of their DNA is underway to gain a better insight on their evolution and genetic relationship with their tropical relatives.

â¢ Isolates of Antarctic microalgae have been established at the University of Malaya Algae Culture Collection. Laboratory studies on the effect of ultraviolet radiation and temperature on the growth, biochemical composition, fatty acid profiles, and antioxidant enzymes of selected microalgae are being undertaken to compare the responses of Antarctic and tropical microalgae. â¢ Antarctic reefs, like their tropical counterparts, harbour a high diversity of

animal life. Investigations are determining how global warming will affect food availability to the animals that comprise the structural components of the reefs and to predict the cascading effect through the community as one component changes.

Continuing investigations on the conservation status of marine organisms, which use the Antarctic continent and sub-Antarctic islands for breeding and moulting, showed:

â¢ The population of elephant seals on Macquarie Island has decreased at about 1.2 per cent per annum in the three decades since the 1960s. The population is now approximately 40 per cent of what it was in the 1950s. However, the rate of decrease has slowed in recent years. â¢ Fur seal pup production on Macquarie Island has slowed over the last four

seasons after 25 years of sustained annual increase. The cause for the change is unknown, but may be related to increased pup predation by Hooker Sea Lions. Pup production at Heard Island during the 2003-04 season was 1278, an increase of 27 per cent since the last census in 2000-01.

Global warming is causing changes in terrestrial ecosystems, and the effects on

terrestrial life are most likely to be greatest around regional boundaries like the Antarctic Polar Front zone, where the sub-Antarctic islands are located. Research into how Antarctic and sub-Antarctic organisms and ecosystems will respond to climate change is being conducted simultaneously on Heard, Kerguelen and Marion Islands in association with the French and South African Antarctic Programmes. Preliminary data indicate that development times for key plant species between Kerguelen and Heard Islands may differ by at least five weeks in some localities.

Disease response kits were deployed to each Australian station to be used to investigate the cause of death if unusual numbers of dead wildlife are discovered in Antarctica.

Understanding sea ice changes

Scientists working for the Department showed that the concentration of the trace chemical methanesulphonic acid (MSA)—an atmospheric aerosol produced as a result of phytoplankton activity at the surface of ocean waters—in a coastal ice core is strongly correlated with sea ice extent in the region. Thus, the ice core record provides a proxy for sea ice extent before modern satellite monitoring, and shows evidence of an ice edge retreat of more than 100 kilometres since about 1950.

A successful research voyage to the Antarctic sea ice zone was made by RSVAurora Australis in September to October 2003. This involved 40 scientists from six countries and included projects on sea ice physics, sea ice ecosystems, and the interactions between them. With an unprecedented level of ice-shelf collapse

in some areas of the Antarctic in recent years, scientists are trying to understand the melting and freezing processes and their overall influence on sea water properties.

Preventing and managing pollution

The Department's scientific research is providing the advice to support environmental management and remediation. This work is giving Australia the capability to fulfil its international obligations to clean up abandoned waste disposal sites in Antarctica without creating additional environmental impacts.

Eco-toxicology work, which is providing the scientific basis to ensure clean-up results in significant environmental improvements, has shown that threshold concentrations for contaminants that cause impacts to Antarctic fauna and flora may be different from threshold concentrations in other regions. For this reason, environmental quality guidelines developed in other regions (such as the Australian and New Zealand Environment Conservation Council Water Quality Guidelines) may not be appropriate for Antarctica.

156 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic environment

Review of performance

Contaminants in Antarctica are not locked away frozen in the ice as previously thought. Research by the Department indicates that dispersal and spreading of contaminants on land in Antarctica is very site specific and largely controlled by freeze-thaw processes and the presence of water. At some sites, the annual summer melt causes enormous quantities of water to flow, causing contaminants to

be mobilised and carried to otherwise clean sites downstream. This information is being used to prioritise site remediation.

In 2003-04, Departmental employees carried out scientific monitoring designed to identify environmental impacts on three time scales during the clean-up of the Thala Valley waste tip near Casey station. Small Antarctic marine crustaceans were used as environmental 'sentinels' to detect short-term impacts during tip removal. The crustaceans were held in enclosures at sites near the tip and elsewhere, and will be analysed for contaminants in their tissues. In the medium-term, settlement of marine invertebrates was used to determine whether the clean-up disrupted sensitive early life stages. Long-term monitoring will indicate whether removal of

the tip has allowed nearby marine seabed communities to recover.

Experiments show that under Antarctic conditions, natural biological breakdown of petroleum hydrocarbons such as fuel and oils is very slow and could take hundreds of years. However, by managing factors that limit natural breakdown, such as adding nutrients or water, we can significantly increase the rates of in situ bioremediation in Antarctica. This creates the opportunity for some contaminated

soils to be treated in Antarctica rather than be returned to Australia for disposal. In situ bioremediation would be significantly cheaper than removal and return to Australia.

A review of oil spill trajectory models for Antarctic marine waters concludes that at present there is insufficient data available on near shore water currents to build reliable oil spill dispersion models for the shipping approaches to most research stations in Antarctica.

Understanding ozone depletion

Light detecting and ranging temperature measurements showed that the stratospheric region was abnormally cold in the 2003 winter. As a result, scientists working for the Department were able to predict a very deep ozone hole several months before the equal largest hole on record developed. The prediction

received extensive national and international media coverage. This programme is contributing to international projects and the data are also being archived at the World Ozone and Ultraviolet Data Centre.

157

Results

The Australian Antarctic Division maintained certification of its environmental management system to the international standard (ISO 14001).

At the 2004 Antarctic Treaty Consultative meeting Australia achieved Antarctic Specially Managed Area status for the Cape Denison precinct of the 1912-14 Australasian Antarctic Expedition led by Douglas Mawson.

A major research voyage around Heard Island was completed. Research findings will help to support the ecologically sustainable management of the fishery in the region.

Work to minimise seabird by-catch by increasing the sink rate of fishing lines was recognised internationally by the awarding of a prestigious Pew Marine Conservation Fellowship to Australian Antarctic Division scientist Dr Graham Robertson. Dr Robertson initiated the manufacture of weighted longlines, conducted scientific trials into their effect on by-catch, persuaded fishing companies to use the new techniques, and publicised the results to encourage widespread adoption of the weighted longlines.

The Department removed 1000 cubic metres of contaminated material from the Thala Valley waste tip near Casey as the first stage in a ten-year plan to clean up Australia's old waste sites in Antarctica.

158 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2 Antarctic environment

Review of performance

Report on performance information

Tables 41 to 48 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 41:To protect the Antarctic environment (departmental appropriation)

Performance information Result

Environmental impact assessments reviewed or completed for all relevant activities in Antarctica.

'Australia's obligations under the Protocol on Environmental Protection to the Antarctic Treaty are met.'

'AAD [Australian Antarctic Division] provides the Chair and other support for the CEP [Committee for the Environmental Protection].'

'Environmental policy proposals and briefings completed for ATCM [Antarctic Treaty Consultative Meeting] and CEP [Committee for the Environmental Protection].'

'Maintain 1S014001 certification for the Environmental Management System (EMS).'

'Develop and undertake environmental audits to ensure compliance with the EMS.'

Potential environmental impacts of activities undertaken in Antarctica by the Department's Australian Antarctic Division and other Australians were assessed and relevant approvals and permits issued. Ninety-three environmental impact assessments were authorised during the 2003-04 financial year.

Obligations were met.

Australia continued its leading role in the Committee for the Environmental Protection, of which the Director of the Department's Australian Antarctic Division's is the current chair.The Division maintained ISOl 4001 certification and conducted regular (six monthly) audits as part of a mandatory three-year certification cycle, which involved a broad level,'spot check' of

parts of the Environmental Management System. Division management reviewed these audits and corrective action was taken where appropriate. As part of the three-year certification cycle, external audits

of Antarctic activities were planned for 2004-05, mainly:

â¢ an audit of Davis and Mawson stations (an audit of the remaining stations is planned for the following summer); and

â¢ an audit of the Division's Head Office (including the Kingston and University of Tasmania complexes) and the Macquarie Wharf No.4 cargo handling facility in Hobart.

The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1.

159

Table 42: To protect the Antarctic environment

- Antarctic marine living

resources (departmental appropriation)

Performance information Result

'Produce operational objectives and performance measures for ecosystem based management of krill fisheries.'

'Produce management procedure for toothfish and icefish fishery at HlMl [Heard Island and McDonald Islands].'

Develop Heard Island and McDonald Islands and Antarctic ecosystem models.

'Evaluate monitoring requirements to describe food web linkages between marine mammals and krill.'

'Assess the ecological importance of squid in the Southern Indian Ocean sector.'

'Characterise foraging behaviour and movement of individual baleen whales.'

'Monitor inter-annual variability in whale distribution and abundance in relation to krill characteristics and report to IWC [International Whaling Commission].'

'Develop draft candidate management procedures for krill.'

'Assess the effects of benthic trawling at Heard Island and McDonald Islands (HIM[).'

The Department assisted the Commission for the Conservation of Antarctic Marine Living Resources working groups by contributing to:

considerable analysis of the Ecosystem Monitoring Programme;

methods for assessing the abundance of toothfish and icefish, the population structure of toothfish, and the status of several species of albatross;

the effect of weighted longlines on seabird by-catch;and

approaches to reducing by-catch.

A major research voyage in waters around Heard Island examined food web linkages so the fishery there can be managed sustainably.

The Department continued to investigate new techniques for examining diet and foraging in marine mammals, including whales, and contributed to the International Whaling Commission Scientific Committee.

Initial work was under way in 2003-04. A Commission for the Conservation of Antarctic Marine Living Resources modelling workshop was held in July 2004.

Benthic sampling conducted as part of Heard Island marine science operation in 2004.

160 Department of the Environment and Heritage Annual Report 2003-04

Table 42 continiitl...

Outcome 2 Antarctic environment

Review of performance

Performance information Result

Develop Antarctic ecosystem model.' Development of this model proceeded through work conducted in association with the Antarctic Marine Living Resources programme, the Antarctic Climate and Ecosystem-Cooperative Research Centre and Commission for the Conservation of Antarctic Marine Living Resources working group on Ecosystem Monitoring and Management. An Australian Antarctic Division scientist convened a Commission for the Conservation of Antarctic Marine Living Resources modelling workshop in July 2004.

'Determine key ecosystem linkages at HIMI A major ship and land-based research [Heard Island and the McDonald Islands] programme was conducted in December— based on field work.' March 2003. Results are being analysed and will be written up in 2004-05.

'Evaluate spatial scales for management of Parts of the krill management procedure are krill fisheries.' currently under development.

'Develop preliminary operational objectives Parts of the krill management procedure are and performance measures for ecosystem currently under development. based management of krill fisheries.'

'Establish the krill-based ecosystem- Australia's Commission for the Conservation monitoring programme that will assist of Antarctic Marine Living Resources with discriminating between inter-annual Ecosystem Monitoring Programme is variability and long-term trends.' currently under evaluation. An Australian

Antarctic Division scientist convened an international workshop for the Commission for the Conservation of Antarctic Marine Living Resources to review this programme.

'Identify stock structure of commercial fish A paper on genetic stock structure of populations.' toothfish was presented to the Commission

for the Conservation of Antarctic Marine Living Resources in 2003.

'Assess the sustainable yield of species in This is an annual process resulting in catch the AAT [Australian Antarctic Territory], limits adopted by the annual meeting of HIM] [Heard Island and McDonald Islands], the Commission for the Conservation of Macquarie Island and the Southern Indian Antarctic Marine Living Resources. Ocean.'

161

Performance information Result

2003-04 saw progress on the use of genetic methods for determining diet in vertebrates. Results were presented to the International Whaling Commission in 2003.

'Develop techniques for non-invasive sampling of vertebrate diets.'

Table 42 continued...

'Examine factors inducing schooling in krill.' Paper on schooling of krill was published in proceedings of international workshop on

living knit.

'Complete lifetime growth model for krill.' A lifetime growth model was developed and presented to Commission for the Conservation of Antarctic Marine Living Resources in 2004.

'Publish results of pack ice seals survey conducted in 1999.'

'Assess the initial 5 year results of the CCAMLR Ecosystem Monitoring Program (CEMP).'

'Design a programme to monitor the dynamics of the krill-based ecosystem offshore from the AAT [Australian Antarctic Territory] incorporating elements of the CEMP [CCAMLR ecosystem monitoring programme] and sampling methodologies developed in 2000-01.'

'Conduct fine-scale survey off the AAT [Australian Antarctic Territory] for krill flux and sampling methodologies.'

Seven papers were submitted in 2003-04 (see www.aad.gov.au/ default.asp?casid= 14742)

Results of the evaluation of the monitoring programme were presented to the Commission for the Conservation of Antarctic Marine Living Resources in 2003.

Evaluation of the commission's Ecosystem Monitoring Program led to the development of a revised programme, which will be implemented in future years.

A survey was conducted in 2003.The results are currently being analysed and prepared for publication.

The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1.

162 Department of the Environment and Heritage Annual Report 2003-04

Result

'Study the effects of environmental modification from global climate change, solar irradiation, moisture and nutrient regime to understand how organisms and communities on sub-Antarctic islands respond to global change.'

'Understand the effect of global warming on temperature-sensitive ecosystems in ice-reduced coastal areas.'

Performance information

Recent fieldwork in the sub-Antarctic showed strong evidence of vegetation and habitat changes over the past 16 years. Research is quantifying the susceptibility of DNA in Antarctic plants to ultraviolet damage, and investigating the effectiveness of protective and repair mechanisms.

Outcome 2

Antarctic environment

Review of performance

Table 43:To protect the Antarctic environment - Biology (departmental appropriation)

The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1.

Table 44:To protect the Antarctic environment - Geoscience

(departmental appropriation)

Performance information Result

Complete combined marine benthic community and seabed sediments survey around Heard Island.'

The seabed sampling component of Heard Island marine survey was completed.

Table 45:To protect the Antarctic environment - Glaciology

(departmental appropriation)

Performance information Result

Records show evidence of an ice edge retreat of more than 100 kilometres, or about 20 per cent since about 1950.

'Synthesise proxy records of environmental parameters determined by analysis of ice cores from Law Dome, the Amery Ice Shelf/Lambert Glacier region and the Casey-Dumont D'Urville sector of Wilkes Land in order to understand the likely consequences of future environmental changes.'

'Complete a spring field study to relate sea ice properties to biological processes.'

163

Table 46:To protect the Antarctic environment

- Human impacts

(departmental appropriation)

Performance information Result

'Provide scientific information to support the clean-up of Antarctic contaminated sites.'

'Develop dispersion models for contaminants in the Antarctic terrestrial and marine environment.'

'Develop techniques for monitoring clean-up operations and implement them in support of removal ofThala Valley tip at Casey.'

The Department removed 1000 cubic

metres of contaminated material from the Thala Valley waste tip near Casey as the first stage of a ten-year plan to clean up Australia's old waste sites in Antarctica. Marine crustaceans and other invertebrates were used to monitor impacts over various time scales.

'Populate integrated GIS [geographic information system]/web-based database for managing clean-up operations at Antarctic contaminated sites.'

A geographic information system/web-based sites register was established. It will be used to prioritise contaminated sites remediation.

'Determine the rate of natural biological remediation and the potential for enhancing biological remediation of contaminated soils in the sub-Antarctic.'

'Determine whether animals adjacent to and remote from Antarctic stations contain different levels of antibiotic resistant bacteria.'

'Document clinical signs of health and non-health in wildlife, as an aid to the identification of disease.'

Experiments show that under Antarctic conditions natural biological breakdown of petroleum hydrocarbons is very slow and could take hundreds of years.

South polar skuas were identified as likely carriers of infectious disease in Antarctica because they are predators at penguin colonies, and are scavengers. Sampling indicates they are host to a range of pathogens.A variety of disease and health problems have been documented in 'normal' Weddell Seal populations.This baseline information will be invaluable if unusually high mortality of seals occurs in future.

'Develop risk assessment model to quantify risks of introductions from tourism and national Antarctic programmes.'

Ship inspections indicate that the hulls of vessels in Antarctic waters carry marine species known to be invasive, The use of toxic anti-fouling paints on ships' hulls needs to be balanced against the risk of introducing invasive species.

164 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Antarctic environment

Review of performance

Table 46 continued...

Performance information Result

'Monitor the Antarctic troposphere and Air samples were collected at Antarctic stratosphere for signatures of anthropogenic stations Casey and Mawson and at the change.' sub-Antarctic station of Macquarie Island.

'Describe changes in tropospheric and This project is part of a global network stratospheric trace gas concentrations." maintained by Commonwealth Scientific and Industrial Research Organisation (CSIRO)

Centre for Atmospheric Research and its partners, which has recently been re-focused on the Australian and Southern Ocean regions.The results are used to monitor

changes in the atmosphere resulting from natural exchanges and anthropogenic emissions.

165

Performance information

'Develop visitor guidelines to reduce the

risk of harmful disturbance to the fauna and flora of Antarctica.'

'Monitor impacted and control colonies of Antarctic wildlife to identify long-term or cumulative effects of disturbance on breeding success, survival and colony size.'

Result

Research shows different species react differently to visitors. Guidelines for tourists are based on this advice.

Historic photographs, being used to extend the range of studies, are showing populations of Antarctic wildlife vary considerably over time and in complex ways. Simple generalisations on cause and effect are risky.

(a) The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1

Table 47:To protect the Antarctic environment - Meteorological science

(departmental appropriation)

The performance information from the portfolio budget Statements is paraphrased in some cases to reduce length, tnd not always quoted verbatim as in the similar tables for Outcome 1.

Table 48: To protect the Antarctic environment -

Space and atmospheric

sciences (departmental appropriation)

° The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1

Table 49: Pricing information for Tables 41 to 48(a)

Appropriation

Protecting the Antarctic environment—Output 2.2 (departmental)

Estimated price

$33.411 million

Revised price Actual expenses

$36.794 million $37.238 million

(11 See also the summary resource tables at the end of this 'Review of performance'.

Performance information0 Result

'Carry out research that describes High resolution observations of polar characteristics of the peripheral boundary of mesospheric clouds were made using the stratospheric polar vortex above Davis, light detecting and ranging equipment. and the occurrence of polar stratospheric In addition, new detectors that allow the clouds at high latitudes.' nature of cloud particles (liquid drops or

ice crystals) to be deduced, are enabling scientists to determine types of clouds at different levels of the atmosphere and hence their effects on ozone depletion and other atmospheric chemistry.

166 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Climate Review of performance

Understanding the global

climate system Through Australia's Antarctic science programme, the Department is advancing understanding of Antarctica's role in the global climate system and contributes data to the world's climate research and meteorological communities. In 2003-04, the Department's research covered a range of disciplines, notably: â¢ biology; â¢ glaciology; and â¢ space and atmospheric sciences. The Australian Antarctic Division contributed to this output. 167

Antarctica and climate

Objective To improve understanding of Antarctica's role in the global climate system. This knowledge will help Australians plan for the challenges of global climate change and better understand the likely impacts on weather and climate, oceans and sea levels, and natural ecosystems. Some of the questions being addressed are:

â¢ the role of Antarctic cryosphere (the region where water is found in its frozen form) in the global climate system and sea level change;

â¢ the Southern Ocean processes responsible for climate variability and predictability, and how they influence sea level;

â¢ the magnitude and current uptake of atmospheric carbon dioxide by the Southern Ocean and what processes control this;

â¢ changes in the climate of Antarctica and the Southern Ocean and the links between these changes and the global climate system; and

â¢ the role of the dynamics and composition of the whole atmosphere in climate processes and how these are changing.

Activities

Biology

Plants, animals and microbes (bacteria, viruses, protists and fungi) in the Antarctic are of global importance. Research is looking at the effects of global climate change on Antarctic biota, and the role of Antarctic biota in global biogeochemical cycles. Biota of the Antarctic region have evolved to survive, and often thrive, on the fringes of the harshest continent on the planet and in the ocean which surrounds it. Many Antarctic organisms are living at the limit of survival and are indicators of global environmental change.

Data from a new French-Australian collaboration showed carbon dioxide uptake in the Southern Ocean correlates dramatically with phytoplankton stocks. These data contributed significantly to the development of biogeochemical models of the Southern Ocean.

Dimethylsulphide is a volatile trace sulphur gas produced by marine micro-organisms. Vented to the atmosphere, it produces particles onto which water vapour condenses to form clouds, thus influencing climate. The relative contributions of Antarctic sea ice organisms to the sulphur cycle were examined.

168 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2 Climate

Review of performance

This study and those on the impacts of ultraviolet radiation, grazing, and damage by viruses will establish the role of key micro-organisms and stresses on them on the flux of reduced sulphur compounds.

Exopolysaccharide is complex sugar made by many microbes in the Antarctic marine environment. Low temperatures stimulate some bacteria in sea ice and seawater to produce exopolysaccharide. Investigations by scientists working for the Department indicate exopolysaccharide is linked to the level of iron in seawater—a factor affecting the productivity of phytoplankton.

Glaciology

Glaciologists working for the Department found that in the past three years a major glacier, Brown Glacier on Heard Island, had retreated 50 metres. The surface of the lower slopes of the glacier lost as much as 11 metres in height. Even up high where it is colder and changes are less obvious, the surface was found to have lowered by up to four metres.

Analysis of ice cores taken from Law Dome provided high resolution data able to resolve sub-annual and inter-annual variations in past climate through most of the Holocene (the last 20 000 years). This record provides evidence of atmospheric transport and large-scale climate in the Australian sector of the Southern Hemisphere and beyond. Variability in the climate record is correlated with the total amount of direct sunlight received on the earth and offers new evidence of a solar-climate link. On shorter timescales, the record also shows significant variability at a

period that is correlated with the El Nino Southern Oscillation phenomenon.

Salinity and temperature measurements in the ocean cavity beneath the Amery Ice Shelf show a strong seasonal cycle indicative of the interactive feedbacks that occur between the ice shelf and ocean. The under-shelf water is modified by a combination of melt on the underside of the ice shelf, intrusion of saltier water formed during sea ice growth in Prydz Bay, and water currents from further north.

Scientists working for the Department analysed changes between the 1950s and the present in the thickness and duration of the seasonal cover of ice that forms on the coastal ocean near Davis and Mawson stations. There has been a trend at both stations for the date at which the ice reaches its maximum thickness to be delayed

by about four to five days per decade. These changes are related to changes in weather patterns rather than ocean changes.

Glaciologists observed and investigated a system of longitudinal and transverse rifts in the front of the Amery Ice Shelf that are extending and will eventually calve a 25 by 25 kilometre iceberg from the shelf. The rifts are extending at as much as 10 metres per day, and the rift propagation rate was found to have a strong seasonal signal.

169

Space and atmospheric sciences

Atmospheric physicists working for the Department successfully predicted a large ozone hole over much of Antarctica from work involving a light detection and ranging instrument. Observations continued at Davis station, providing atmospheric wind and temperature characterisation throughout the stratosphere and mesosphere (10 to 90 kilometre altitude). The winter stratosphere over the Antarctic in 2003 was abnormally cold and this resulted in conditions that produced much greater ozone depletion than would be expected from a normal year.

The Davis 55 megahertz radar system made the first observations of polar mesosphere summer echoes from the Antarctic continent. Previous radar observations in the sub-Antarctic suggested that there may be a significant difference between the northern and southern hemispheres in the nature of these echoes and in the mesosphere itself. However, observations at Davis during the 2003-04 summer did not support this.

A full summer of observations of winds in the upper mesosphere and lower thermosphere (60 to 100 kilometre) was carried out in conjunction with Japanese and British collaborators using similar radars at Syowa and Rothera stations. At present, observations of some atmospheric tides in this region have been inconsistent with each other and with model results. This unique data set will allow scientists to define the characteristics of the semidiurnal (12 hourly) tide in this region more precisely and to study the cause of its variability.

Result

Glaciologists from the Australian Antarctic Division found evidence of a decline in the extent of Antarctic ice, with chemical signals from an ice core taken from Law Dome near Casey station indicating a diminution in the sea ice of around 20 per cent in the past 50 years.

Division scientists found that in the past three years a major glacier, Brown Glacier on Heard Island, had retreated 50 metres. The surface of the lower slopes of the glacier lost as much as 11 metres in height.

Atmospheric physicists from the Division successfully predicted a large ozone hole over much of Antarctica from work involving a light detection and ranging instrument.

Research into Southern Ocean biogeochemical processes showed carbon dioxide uptake correlates dramatically with phytoplankton stocks.

170 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Climate

Review of performance

Report on performance information

Tables 50 to 55 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 50:To understand the role of Antarctica in the global climate system - Biology (departmental appropriation)

The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1.

Performance information Result

Quantify the role of sea ice communities in Ongoing work contributed to the Southern Ocean biogeochemical processes development of biogeochemical models of and contribute to the development of the Southern Ocean through data from a biogeochemical models of the Southern French-Australian collaboration. Ocean.

'Elucidate the roles of grazing and viral A new French-Australian collaboration infection on the vertical flux of carbon.' showed a dramatic correlation between carbon dioxide uptake in the Southern Ocean and phytoplankton stocks.These data

contributed significantly to Southern Ocean modelling.

'Establish the role of marine micro-Investigations showed that a complex sugar organisms in the cycling and sequestration produced by bacteria at low temperatures of iron in the Southern Ocean.' is linked to the level of iron in seawater, and hence the productivity of phytoplankton.

'Establish the role of marine micro-The Department supported ongoing studies organisms in the net flux of reduced into the factors that affect how Antarctic sulphur compounds to the atmosphere, marine micro-organisms produce large including identification of the key quantities of a gas called dimethylsulphide,

organisms responsible for synthesis and which affects Antarctic cloud formation and utilisation of these compounds and the hence the climate. impact of ultraviolet light, grazing and viral destruction of these organisms.'

'Monitor concentrations of reduced sulphur compounds in the atmosphere and waters of the Southern Ocean.'

171

Table 51:T6 understand the role of Antarctica in the global climate system

- Geoscience (departmental appropriation)

Performance information Result

'Produce high-resolution isotopic, sedimentological and palaeontological Plio-Pleistocene records from samples collected from glacial deposits in Antarctica and sub-Antarctic islands in order to understand the natural climate cycles of the past.'

Geological records of past climate change obtained by Australian participation in the Ocean Drilling Programme in Prydz Bay were published. Results from a joint survey with the Italian programme of the George V Land continental margin were published. Analysis of long sediment cores from the Wilkes Land margin, from lakes on Loewe Massif, and from lakes in the Vestfold Hills is continuing.

Table 52:To understand the role of Antarctica in the global climate system

- Glaciology (departmental appropriation)

Performance information Result

'Monitor and detect change in Antarctic and Ongoing field work conducted annually Southern Ocean climatic parameters.' contributes to databases.

'Improve meso-scale sea ice models of the Sea ice models have been refined following Mertz Glacier Polynya and validate against polynya field work. field data.'

'Assess links between Antarctic sea ice Data were collected and passed to the variability and Southern Hemisphere Commonwealth Scientific Industrial weather.' Research Organisation (CSlRO) and Bureau

of Meteorology for inclusion in weather models.

'Establish relationship between past Analysis of ice cores taken from Law Dome changes in the Law Dome ice cap and ice has provided very high resolution data able core inferred palaeoclimate parameters.' to resolve sub-annual and inter-annual

'Extend the high resolution (seasonal) Law variations in past climate through most Dome climate record to about 2,000 years of the Holocene (the past 20 000 years). It before present.' offers new evidence of a solar—climate link.

'Assess the impact of the Mertz Glacier The true role of the Mertz Glacier Polynya on Polynya on Adelie Bottom Water production.' deep bottom water is still being assessed, as is its role in global ocean circulation.

Assess the relative mass of ice in different Ongoing work is showing little change to sectors of East Antarctica. the mass of ice covering East Antarctica.

172 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2 Climate

Review of performance

Table 52 continued...

The performance information from the portfolio budget statements is paraphrased in some cases to reduce length, and not always quoted verbatim as in the similar tables for Outcome 1.

Performance information Result

'Assess dynamics and ice mass budget of the Analysis of salinity and temperature Amery Ice Shelf-Lambert Glacier system.' measurements in the ocean cavity beneath the Amery Ice Shelf show a strong seasonal cycle indicative of the interactive feedback

that occurs between the ice shelf and ocean.

'Update climatology of inter-seasonal Scientists working for the Department variability in landfast sea-ice extent and have analysed changes in thickness thickness.' and duration—between the 1950s and

'Monitor and analyse fluctuations in the present—of the seasonal cover of ice on physical characteristics of the ice sheet, ice the coastal ocean near Davis and Mawson shelves and glaciers.' stations.There is a trend at both stations for the date at which the ice reaches its

maximum thickness to be delayed by four to five days per decade. These changes are related to weather patterns rather than ocean changes. Scientists also observed and investigated rifts in the front of the Amery

Ice Shelf, while research in the summer of 2003-04 found Brown Glacier on Heard Island had retreated 50 metres.

173

Table 53:To

understand the role of Antarctica in the global climate system - Meteorological science (departmental appropriation)

Performance information Result

'Continue development of a Global Climate System Model (GCSM) with nested regional model for climate simulation purposes to cover the Antarctic and Southern Ocean region.'

Work on a global climate system model is now an ongoing research goal being performed by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) Centre for Atmospheric Research as part of its contribution to the Antarctic Climate and Ecosystems Cooperative Research Centre.

'Determine associations between past levels of atmospheric constituents, as determined from ice cores, to the corresponding broad meteorological situations that existed at those times.'

Ice core analysis continues to provide data for collaborative research conducted through the Antarctic Climate and ecosystems Cooperative Research Centre.

'Participate actively in the Surface Ocean Lower Atmosphere Study (SOLAS).' The Department actively participated in the Surface Ocean Lower Atmosphere Study.

'Validate climate models by simulating Antarctic climate changes over various time-scales in the past and investigate possible future changes.'

Models are being developed from knowledge of past climate change derived from ice core analysis.

'Deploy additional long-term automatic weather stations.' The long-term automatic weather station programme continued, with data available

at www.antcrc.utas.edu.au/argosI awswebsite/datapage.html.

'Explain how the El Nino-Southern Oscillation phenomenon influences and is influenced by processes occurring in Antarctica.'

'Carry out comprehensive analysis of weather systems in the Antarctic region.'

'Investigate how the Antarctic and southern Australian regions might influence each other's weather and climate via synoptic-scale meteorological processes.'

Considerable progress was made in investigating how the Antarctic and southern Australian regions might influence each other's weather and climate via synoptic-scale meteorological processes.

174 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2 1 Climate

Review of performance

Table 54:To understand the role of Antarctica in the global climate system - Oceanography (departmental appropriation)

The oceanography programme is undertaken almost entirely by staff of the Commonwealth Scientific Industrial Research Organisation (CSIRO) using Australian Antarctic Division resources. Their products feed into the work of the Antarctic Climate and Ecosystems Cooperative Research Centre whose reports set out the results of oceanographic research (see www.antcrc.utas.edu.au ).

175

Performance information Result

'Continue to map the change in water This is an ongoing activity which advanced properties between 1960 and 1990.' during the year.

'Collect water property data along track Four return research transects were between Hobart and Dumont D'Urville.' conducted from Hobart to Dumont D'Urville.

'Recover and redeploy automated sediment The recovery and redeployment of trap moorings to determine carbonautomated sediment trap moorings transport and inter-annual variability.' continued with mixed success. Analysis of previous sample collections from the

automated moored sediment traps and from shipboard incubation experiments were successful and led to eight publications in refereed international journals in 2003-04.

'Estimate the transport of the Kerguelen Conductivity, temperature and depth! Western Boundary Current.' hydrographic observations were completed as part of work to estimate the transport of the Kerguelen Western Boundary Current.

'Estimate factors controlling the biological Studies into photosynthesis, ultraviolet light productivity of the Southern Ocean and the and iron availability continued to improve export of carbon to the deep ocean.' understanding of carbon transport.

'Continue ocean and coupled Modelling of the ocean—atmosphere ocean—atmosphere cryosphere models for cryosphere continued. the prediction of climate variability and change.'

Table

55:To understand the role of Antarctica in the global climate system - Space and atmospheric sciences (departmental appropriation)

Performance information

'Operate Light Detecting and Ranging (LIDAR) equipment at Davis that together with optical spectrophotometers and radars will measure stratospheric and mesospheric properties to quantify temperature, wind, aerosol concentration and abundance of trace gases to determine their role in the middle atmosphere climate.'

'Measure vertical extent and frequency of very high altitude clouds to understand the atmospheric processes occurring at high altitudes.'

'Describe vertical air mixing between lower and middle atmosphere above Davis.'

'Describe a climatology of planetary waves and tides above Davis.'

Light detecting and ranging, radar and spectrophotometer observations continued at Davis station, providing atmospheric wind and temperature characterisations through the stratosphere and mesosphere (10 to 90 kilometre altitudes). Observations of the stratosphere and mesosphere allowed atmospheric physicists to successfully predict a large ozone hole.The abnormally cold winter stratosphere in 2003 resulted in more ozone layer depletion than normal.

The Davis 55 megaherz radar system made the first observations of polar mesosphere summer echoes from the Antarctic continent, Collaboration on radar observations with Japanese and British scientists at Syowa and Rothera stations yielded new information about the upper mesosphere and lower thermosphere (60 to 100 kilometres), which is challenging current theories and will improve understanding of atmospheric tides.

Table 56: Pricing information forTables 50 to 55(a)

See also the summary resource tables at the end of this Review of performance'.

Appropriation Estimated price Revised price Actual expenses

Understanding global $20,747 million $22.031 million $21.832 million climate system—Output 2.3 (departmental)

176 Department of the Environment and Heritage Annual Report 2003-04

Scientific research I Review of performance

Outcome 2

177

Undertaking practical and

significant scient ific research The Department provides data and support for Australian and international collaborators and conducts physical, biological and medical research. In 2003-04, the Department supported research with benefits for: â¢ fisheries management and whale abundance estimates; â¢ pharmacology and biotechnology; â¢ navigation; â¢ living in harsh environments; â¢ waste management; â¢ space weather prediction; and â¢ data management. The Australian Antarctic Division contributed to this output.

Scientific research

Objective To support practical and significant Antarctic scientific research. Australian science has driven the development of many new technologies, often with a practical pay-off. Antarctica's remote and hostile environment presents opportunities for technological innovation, which may have a commercial or practical application to the wider community. Research results are presented at national and international forums and data is shared with collaborators.

Activities

New strategic plan

The five-year Antarctic Science Strategic Plan concluded during 2003-04. After thorough external evaluation by the Antarctic Science Advisory Committee and widespread consultation with the science community, the Department released a new five-year Antarctic science strategy in May 2004.

Fisheries management

An internally weighted fishing line developed by researchers working for the Department was assessed against its effectivness to reduce seabird by-catch without affecting fishing success. Results will be presented at the 2004 Commission for the Conservation of Antarctic Marine Living Resources meeting.

Work continued on the development of ecosystem models. A new modelling approach was developed and is being presented to the Commission for the Conservation of Antarctic Marine Living Resources. A large scale predator-prey and marine science experiment around Heard Island was conducted during the summer of 2003-04. It will form the basis of data used to develop anaytical software to assess the status of the Heard Island food web in relation to fished species.

The Department continued to work with the Commission for the Conservation of Antarctic Marine Living Resources to review the commission's Ecosystem Modelling Programme, which aims to improve the power of ecosystem assessement methods to detect change caused by fisheries.

178 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Scientific research

Review of performance

Whale abundance estimates

A new whale acoustics programme commenced. This aims to use passive acoustic techniques to measure the distribution and relative abundance of whales in the Southern Ocean.

Pharmacology and biotechnology

Animals and plants that have evolved in the unique and harsh environment have biological attributes that potentially have commercial importance. The pharmacological potential of micro-organisms and the food and horticultural potential of sub-Antarctic plants are being investigated by scientists working for the Department in an ongoing programme.

Several organisations participating in the Australian Antarctic programme are investigating the biotechnological potential of Antarctic organisms. Antarctic bacteria produce a wide range of exopolymer types, with the high molecular weight types having biotechnological potential.

Navigation

The Australian Antarctic Science programme maintained records of sea ice conditions, iceberg distributions, and other relevant parameters for use in Antarctic navigation and planning. The Department operates an extensive network of automatic weather stations on the surface of the Antarctic ice sheet and has

provided data from these back to 1984.

Sea ice and iceberg observations are routinely made on most voyages, and contribute to long-term databases. The extent, inter-annual variability and an estimate of the total volume of land-fast sea ice forming around East Antarctica was determined using satellite radar imagery.

Living in harsh environments

Human biological research in the Antarctic, linked as it is with health care, is designed not only to improve the efficiency of people in Antarctic operations but to help plan activities in other remote and extreme environments. The Department's epidemiological studies continue to inform, support and optimise provision of

medical care in the extreme environments of Antarctica and the Southern Ocean.

The Department's Australian Antarctic Division also has a collaborative agreement with the United States National Aeronautics and Space Administration to gather data over a long period on aspects of human physiology in the Antarctic. The problems faced by people in Antarctica, relating to isolation and living in confined environments for long

periods, are similar to those experienced by people on extended space journeys.

179

Fundamental research continued into the effects of immunological, psychological

and behavioural stressors on human health and wellbeing in Antarctica. Preliminary results of long-term, small group psychological studies and thermal physiology and modelling studies of wintering Antarctic expeditions suggest both individual and group psychological and physiological adaptive responses.

New studies commenced including detailed photobiology study of bone loss among wintering expeditioners. Studies in psychological resilience and reintegration on return from Antarctica and telehealth applications are in the preparatory phase.

Waste management

Scientists from the Department's Human Impacts programme are providing practical solutions to the difficult problems of how to remediate contaminated sites and remove abandoned waste disposal sites from Antarctica without creating additional environmental impacts.

New water treatment technologies designed for use in cold, remote locations were used to reduce off-site migration of contaminants during excavation of waste from the Thala Valley tip.

Environmental monitoring of the Thala Valley clean-up by human impacts scientists was designed to monitor whether the clean-up created additional adverse impacts.

Experiments on the in situ bioremediation of spilt fuel in Antarctica indicate that microbial breakdown can be significantly enhanced by relatively minor changes to water and nutrient availability. This has the potential to provide significant savings for contaminated sites remediation in the future.

Space weather predicton

Data collected through the Space and Atmospheric Science Programme is shared with other national and international researchers and is helping to improve space weather monitoring and predictions.

Radio transmission properties of the atmosphere, together with optical measurements of the Aurora Australis (southern lights) and measurements of the earth's magnetic field, were forwarded in real time from all Australian stations to the Ionospheric Prediction Service for its space weather monitoring and forecasts of southern regions.

A new automated Fabry Perot spectrometer was installed and commissioned at Davis station to further enhance data input into model development of the upper middle atmosphere circulation.

180 Department of the Environment and Heritage Annual Report 2003-04

Outcome 2

Scientific research Review of performance

Three cosmic ray ground level enhancements were recorded in quick succession in

late October and early November 2003. The second of these also included radiation dose measurements made at aircraft altitudes during a Qantas flight over north America in a collaborative study with researchers working for the Department. This is believed to be the first such measurements and will prove invaluable in reconciling the model passenger and crew dose calculations with observations. The present models are known to be crude, and detailed studies are being undertaken to include the ground level enhancements models developed locally into the dose calculations.

An improved cosmic ray spectrum has been deduced as a result of the annual cosmic ray latitude surveys. This will result in a better determination of the contribution made to natural annual radiation dosage arising from cosmic rays and how this varies with latitude, longitude and altitude. The cosmic ray data are now

provided to both the Space Ship Earth consortium and to the international space weather warning and prediction centre. Data are lodged with these groups with a one minute time resolution within about 20 seconds of collection at Mawson.

Data management

The Department's Australian Antarctic Data Centre is an international leader in the development and use of national and international data management standards and, in accordance with the Antarctic Treaty, all scientific data are made publicly available after a period of exclusive use.

The Australian Antarctic Data Centre, which is responsible for maintaining Antarctic scientific data, currently has 1712 metadata records, all of which are available through the Australian Spatial Data Infructure and the Antarctic Master Directory. The centre is currently developing and maintaining 58 separate, but

linked databases. All scientific and mapping data is publicly discoverable and downloadable on the Internet.

The Australian Antarctic Data Centre generated 47 new maps covering the Australian Antarctic Territory and the Territory of Heard and McDonald Islands. Forty-two of these can be viewed via the Internet. Applications for these maps include support for the new air transport system as well as policy development, environmental protection, navigation, scientific research and search and rescue.

181

Result

Investigation of the biotechnological potential of Antarctic microorganisms continued.

Extensive oceanographic data collected during the simultaneous land—sea research programme on the marine food web around Heard Island provided insights into why some areas are more productive than others.

New technologies developed by Australian scientists were used during the clean up of the Thala Valley waste tip to control the dispersion of contaminants from the site. Their success was confirmed using environmental monitoring techniques not previously attempted in Antarctica.

182 Department of the Environment and Heritage Annual Report 2003-04

Performance information

The Department developed an internally weighted fishing line, which reduces seabird by-catch.The line has been incorporated into the Heard Island fishery and is planned for incorporation into the Ross Sea fishery.

'Develop management procedures for finfish and krill fisheries.'

'Develop acoustic methodologies for use in the assessment of krill and other pelagic species.'

'Develop guidelines for marine protection areas.'

'Provide practical advice to industry, national agencies and Government on marine living resources.'

'Develop analytical software to assess the status of the food web relative to fished species.'

'Develop preliminary ecosystem assessment methods.'

A predator—prey marine science experiment around Heard Island 2003-04 will be used to develop analytical software to assess the status of the Heard Island food web in relation to fished species.

A new ecosystem modelling approach has been developed and will be presented to the Commission for the Conservation of Antarctic Marine Living Resources in 2004.

Outcome 2

Scientific research

Review of performance

Report on performance information

Tables 57 to 64 report performance results against the indicators in the 2003-04 portfolio budget statements.

Table 57:To undertake scientific work of practical, economic or national significance - Antarctic Marine Living Resources (departmental appropriation)

183

Table 58:To undertake scientific work of practical, economic or national

significance - Biology (departmental appropriation)

Table 59:To undertake scientific work of practical, economic or national significance - Geoscience

Performance information Result

'Collect GPS [global positioning system], VLBI [very long baseline interferometry] and geophysical data at the ANARE [Australian National Antarctic Research Expedition] stations and selected points.

Conduct geophysical airborne reconnaissance survey over the AAT [Australian Antarctic Territory].'

Global positioning system and geophysical data were collected from Australian National Antarctic Research Expedition stations and remote sites in the Grove and Prince Charles Mountains. Airborne geophysical survey data from the Southern Prince Charles Mountains in 2002-03 is being processed and published.The very long baseline interferometry was abandoned as a geodetic technique for Antarctic stations because of high cost.

Performance information Result

'Initiate alliances with organisations to share Several organisations participating in collection and data for bloactive molecule the Australian Antarctic programme are discovery.' investigating the biotechnological potential

'Initiate research into biotechnical potential of Antarctic organisms. of exopolymers.'

'Identify potentially commercially important organisms.'

184 Department of the Environment and Heritage Annual Report 2003-04

Performance information

Result

'Continue research into the effects of immunological,thermophysiological, psychological and behavioural stressors, and the effects of UV [ultraviolet] radiation on health of Antarctic personnel in the totally isolated groups in Antarctica.'

Research continued, including collaborative work with the United States National Aeronautics and Space Administration (NASA).

Outcome 2 Scientific research

Review of performance

Table 60:To undertake scientific work of practical, economic or national significance - Glaciology (departmental appropriation)

Table 61:To undertake scientific work of practical, economic or national significance - Human biology and medicine (departmental appropriation)

Performance information Result

'Maintain records of sea ice conditions, Records of sea ice conditions, iceberg iceberg distributions, and other relevant distribution and other relevant parameters parameters for use in Antarctic navigation were maintained.The Department operated and planning.' an extensive network of automatic weather

'Collect data on snow and ice conditions that stations on the surface of the Antarctic ice will contribute to the selection of a runway sheet. site for intercontinental air transport.'

185

Table 62:To undertake scientific work of practical, economic or national

significance - Meteorological science (departmental appropriation)

Performance information Result

flDevelop a sea ice analysis system.' The development of a sea ice analysis and forecasting system is awaiting relevant staff for the Antarctic Climate and Ecosystems Co-operative Research Centre, although

work began on implementing an automated ice-cloud discrimination system at Casey station.

'Implement an operational weather A weather forecasting Numerical Weather forecasting high-resolution Numerical Prediction model to cover the Antarctic Weather Prediction (NWP) model to cover region, including the sea ice zone, was the Antarctic region including the sea-ice developed and work on implementation is zone.' proceeding.

'Improve modelling relevant to Antarctica to enable'tuning'of the Antarctic Limited Area Model and Global NWP [Numerical Weather Prediction] model.' 'Commence development of an Australian operational sea-ice forecasting system.'

'Investigate and implement better use in Australian systems of existing Antarctic remotely sensed data.' 'Upgrade the NOAA [United States National Oceanic and Atmospheric Administration] Ground Station at Casey in support of

intercontinental air transport.'

'Contribute to on-going re-analysis processes as techniques and data sources become of higher quality and more numerous.'

'Publish further Antarctic working papers.'

'Produce hardcopy of The International The International Antarctic Weather Antarctic Weather Forecasting Handbook.' Forecasting Handbook was produced.

186 Department of the Environment and Heritage AnnuM Report 2003-04

Outcome 2 Scientific research

Review of performance

Table 63:To undertake scientific work of practical, economic or national

significance - Space and atmospheric sciences (departmental appropriation)

Performance information Result

'Utilisation of ionosonde, geomagnetic, GPS Tasman International Geospace [global positioning system], riometer and Environment Radar and FedSat data were optical data from all Australian Antarctic made widely available for research into stations to provide space weather data.' space weather effects.

'Provide Tasman International Geospace Environment Radar (TIGER) and FedSat data to facilitate studies of upper atmosphere space weather research.'

'Develop ultra-low frequency hydromagnetic wave techniques to monitor high variability in Sun—Earth connections.'

'Continue Fabry Perot Spectrometer (FPS) A new Fabry Perot spectrometer was thermospheric 630 nanometre observations installed and commissioned at Davis station. at Davis, and enhance middle atmosphere circulation models.'

'Develop automated instrumentation.'

'Continue development of cosmic ray Three cosmic ray ground level Ground Level Enhancement (GLE) models.' enhancements were recorded in quick succession in late October and early November 2003.

'Enhance accurate forecasting capabilityCosmic ray data is now provided to both of high frequency radio communication the Space Ship Earth consortium and the between Australia and Antarctica.' international space weather warning and

Undertake annual austral summer cosmic predication centre. ray latitude surveys.' 'Provide real-time geophysical data of practical importance for use by international

science.' 'Automate'Space Ship Earth' consortium real-time data for space weather prediction.'

187

Table 64:To undertake scientific work of practical, economic or national

significance - Australian Antarctic Data Centre (departmental appropriation)

Table 65: Pricing information for Tables 57 to 64(a)

(" See also the summary resource tables at the end of this 'Review of performance'.

Performance information Result

'Maintain and develop the Australian The Australian Antarctic Data Centre Antarctic Data Centre as the leading is currently developing and managing depository for Antarctic scientific and other 58 separate and linked databases. All data.' scientific and mapping data is publicly

'Collate and store all relevant data collected discoverable and downloadable on the by Australian researchers in Antarctica, and Internet. provide access to authorised researchers.'

'Ensure compliance with departmental and national standards for management of scientific data and geographical information.'

'Produce aeronautical charts in support of The centre has generated 47 new maps an air transport system.' covering the Australian Antarctic Territory

and the Territory of Heard Island and McDonald Islands. Forty-two of these can be viewed on the Internet.

'Prepare hydrographic data acquired for The centre coordinated survey work by the charts of approaches to Mawson.' Naval Hydrographic Office on the western approaches to Mawson station as the basis for a new chart.

Appropriation Estimated price Revised price Actual expenses

Undertake scientific $17.311 million $7.901 million $17.733 million work of practical, economic or national significance—Output 2.3 (departmental)

188 Department oft he Environment and Heritage Annual Report 2003-04

The Department's 2003-04 operating revenues of $262.2 million (2002-03,

$336.7 million) exceeded its operating expenses of $256.6 million (2002-03, $307.6 million), producing a net operating surplus of $5.6 million (the 2002-03 surplus was $29 million, which included revenue for the Capital User Charge).

Included in the 2003-04 surplus were revenues of $1.4 million, reflecting the transfer of appropriation for prior year outputs of the Australian Heritage Commission. After it was abolished in 2003, the commission's functions were transferred to the Department.

The overall reduction in revenues and expenses between 2002-03 and 2003-04 reflected the creation of the Bureau of Meteorology as a prescribed agency on 12 September 2002.

The Department concluded the year with total equity of $258 million, which represented a slight reduction from the previous year ($260.6 million). The overall reduction reflected the gain of Australian Heritage Commission net assets, and the transfer out of National Halon Bank assets (when this function was reclassified from

departmental to administered in December 2003).

Revenues administered on behalf of the Australian Government in 2003-04 amounted to $11.1 million, which represented a slight reduction from the previous year ($11.9 million). This reflected the Bureau of Meteorology becoming a prescribed agency in September 2002.

Expenses administered on behalf of the Australian Government increased in 2003-04 by $9 million to $267.5 million (2002-03, $258.5 million), as a result of increased grant activity.

189

Assets administered on behalf of the Australian Government increased to

$132 million (2002-03, $124 million) during the year, mainly as a consequence of a capital injection for the Sydney Harbour Federation Trust that increased the value of the Department's administered investments.

Liabilities administered on behalf of the Australian Government increased by $27.1 million to $43.4 million (2002-03, $16.3 million). The increase was associated with increased grant activity.

190 Department of the Environment and Heritage Ann ua' Report 2003-04

Financial results

Summary resource tables

Review of performance

Summary resource tables

Table 66: Summary of resources for Outcome 1 (Environment)

RESOURCES FOR PLANNED OUTCOME 1-ENVIRONMENT

(A) (B)

Actual Variation

Budget Revised expenses (Column (B) Budget") 2003-04 2003-04 2003-04 minus (A)) 2004-05 $,000 $'OOO $'000 s'000 $'000

ADMINISTERED EXPENSES (including third party outputs)

Special Appropriation

A: Ozone protection 746

B: Natural Heritage Trust interest(ce 19097 22513 18836

Annual Appropriations

Acts (Nos 1, 3, and 5)- Grants and other payments

Grants-in-aid - NationalTrust 821 821 821 0 822

NEPC service corporation 429 429 424 (5) 429

Australian Biological Resource Study participatory grants 1825 1839 1842 3 1827

C: Natural Heritage Trust appropriation revenue 134 777109 083 302 607

Conservation of rural and regional historic hotels 543 1138 808 (330) 0

Restoration of St George's Cathedral in Perth 0 3000 3000 0 0

Restoration of St Paul's Cathedral in Melbourne 50 2550 2550 0 0

D: National cultural heritage account ' 175 143 185

Regional natural heritage programme 0 772 221 (551) 4228

Protecting biodiversity hotspots 0 5000 5000 0

Great Barrier Reef- Representative Areas Programme 0 0 0 8005

Acts (Nos 2 and 4)- Specific payments to the states and territories

Goondiwindi Serpentine Water Park (Qld) 150 530 530 0 0

Boat Harbour and Sisters Beach sewerage scheme (Tas) 1000 1000 1000 0 1000

E:Total administered appropriations 159613 143 818 16196 4117 337 939

191

Alsommor-

Table 66 continued...

(A) (B)

Actual Variation

Budget Revised( ,) expenses (Column (B) Budget 0

2003-04 2003-04 2003-04 minus (A)) 2004-05

5'OOO $'OOO $000 $'OOO $000

Special accounts payments (c)

Natural Heritage Trust of Australia account ° (23) 310000 250000 250000 249977

Federation Fund account 0 0 0 0 0

National Cultural Heritage account () 500 (441) 500 59 500

Ozone Protection and Synthetic Greenhouse Gas accountt° 746 840 1212 372 2870

F: Total special accounts 251 340 (92) 250675 251 248 313370

Other administered expenses

Net write down of assets 0 0 97 97 0

G:Total other 0 0 97 97 0

PRICE OF DEPARTMENTAL OUTPUTS

1.1 Atmosphere 16386 18016 (1571) 16445 14723

Biodiversity 1.2 28523 32266 846 33 112 24488

Coasts and oceans 1.3 11715 (2158) 3631 1473 8992

Environmental assessment and approvals 1.4 10 946 13878 508 12405 14386

Heritage 1.5 9731 17033 17204 171 23255

1.6 Industry

1.7

1.8

29171 28936 30399 1463

(1907)

5881 (287)

26969

13 193

6754

Inland waters 6231

Land management 3246 6168

Parks and reserves 34894 39 151 1.9 40336 1185 39 125

Non attributable to outputs 3828 (3828) 673

Total Outputs 151 021 171 045 (5578) 165 467 170577

H: TOTAL PRICE OF DEPARTMENTAL OUTPUT5' 151 021 171045 (5578) 165 467 170577

TOTAL FOR OUTCOME 1'' 407 085 434464 (1456) 433 008 500258

2003-04 2004-05

848.0 AVERAGE STAFFING LEVEL 884.0

(287.7)' (275.0)rt

192 Department of the Environment and Heritage Annual Report 2003-04

Financial results

Summary resource tables

Review of performance

(a) Full-year budget including additional estimates, supplementary additional estimates, and adjusted for actual revenue received from other sources, and revised output allocations.

(b) 2004-05 Budget prior to pre-election economic and fiscal outlook, and additional estimates.

(c) These administered special accounts are funded via administered annual appropriations. Expenses relating to the special account are debited directly against the balance of the special account. The Natural Heritage Trust of Australia Account approved expense allocations are $250 million in 2003-04 and $310 million in 2004-05. For the National Cultural Heritage account, $0500 million is available each year for expenditure.

(d) The balance of the Natural Heritage Trust special account at the end of each financial year is also augmented with interest pursuant to sub-section 6(2) of the Natural Heritage Trust ofAustralia Act 1977.

(e) In the 2004 Budget, the government announced $6 million to be provided in the Contingency Reserve for Protecting Biodiversity Hotspots in 2003-04. $5 million was expensed in 2003-04 with the remaining $1 million to be expensed in 2004-05. An additional $10 million has been provided in the contingency reserve for 2004-05 to maintain Australia's biodiversity hotspots.

(I) The Ozone Protection Act 1989 was reformed on 5 December 2003 and amendments are now reflected in the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. Prior to the new Act, expenses relating to this item were funded through an administered special appropriation. The new Act enables expenses to be debited directly from the Ozone Protection and Synthetic Greenhouse Gas special account. See Note 27.5 to the Financial

Statements for more details.

(g) Total price of departmental outputs includes revenue as follows:

(h) Total price of outputs and administered appropriations including adjustment for administered special accounts - see note W. This total = Row (B) + Row (F) + Row (G) + Row (H) - Row (A) - Row (B) - Row (C) - Row (D).

(i) The staff supporting the Director of National Parks is not included in departmental staff numbers.

Source of revenue 2003-04 2003-04 2004-05

- $,000 $'OOO $'OOO

Revenue from government (appropriations) 131 903 138 582 145 555 Revenue from other sources 19 118 32463 25 022

Total price of departmental outputs 151 021 171 045 170577

193

Table 67 Summary of resources for Outcome 2 (Antarctica)

RESOURCES FOR PLANNED OUTCOME 2 - ANTARCTIC

(a) Full-year budget including additional estimates, supplementary additional estimates, and adjusted for actual revenue received from other sources, and revised output allocations.

(b) 2004-05 Budget prior to pre-election economic and fiscal outlook, and additional estimates.

(A) (B)

Actual Variation

Budget Revised51 expenses (Column (B) Budgetfb) 2003-04 2003-04 2003-04 minus (A)) 2004-05 51000 $'OOO $'OOO $'OOO $'OOO

ADMINISTERED EXPENSES (including third party outputs) 0 0 0 0 0

PRICE OF DEPARTMENTAL OUTPUTS

2.1 Influence in Antarctic Treaty System 13 332 14424 14287 -137 13 842

2.2 Protecting the Antarctic environment 33411 36 794 37238 444 34689

2.3 Understanding global climate system 20747 22031 21 832 -199 21 540

2.4 Undertake scientific work of practical, economic 17311 17901 17733 -168 17973 or national significance TOTAL PRICE OF DEPARTMENTAL OUTPUTS(C) 84801 91150 91090 (60) 88044

2003-04 2004-05

AVERAGE STAFFING LEVEL 390.0 392.0

Source of revenue 2003-04 2003-04 2004-05

$,000 $'000 $'000

Revenue from government (appropriations) 83 882 85 539 87 125

Revenue from other sources 919 5611 919

Total price of departmental outputs 84801 91150 88044

194 Department of the Environment and Heritage Annual Report 2003-04

Review of performance

Financial results Performance of purchaser-provider arrangements

Performance of purchaser-provider

arrangements

Department - Department of Agriculture, Fisheries and Forestry: Natural Heritage Trust

Under the Natural Heritage Trust of Australia Act 1997, responsibility for Natural Heritage Trust administration is vested in a Board consisting of the Minister for the Environment and Heritage and the Minister for Agriculture, Fisheries and Forestry. The Department has a cross-portfolio arrangement with the Department of

Agriculture, Fisheries and Forestry for Natural Heritage Trust administration, which occurs through a joint Commonwealth Regional Natural Resource Management Team.

The Minister for the Environment and Heritage and the Minister for Agriculture, Fisheries and Forestry approved investment proposals that contributed to the objectives of the Trust, and that were consistent with the priority areas of activity.

The bilateral agreements signed with the states and territories reflect the agreed priorities and delivery arrangements for the Trust. The departments worked with the states, territories and regional bodies to prepare investment strategies at the same time as integrated Regional Natural Resource Management Plans, with most

progress in New South Wales, Victoria and South Australia. The Ministers accredited 16 integrated regional natural resource management plans for the Natural Heritage Trust against the agreed accreditation criteria.

The Trust provided funding for all investments under financial agreements. The Envirofund (the local grants component) and national component used standard contracts that reflect the Trust's accountability, reporting and acquittal procedures. The Envirofund approved 1411 projects for a total of $19952 million during 2003-04.

Eighty-nine per cent of Envirofund projects focused on on-ground activities.

The bilateral agreements include a commitment to develop a monitoring and evaluation strategy that is consistent with the National Framework for Natural Resource Management Standards and Targets. Monitoring and evaluation implementation plans have been developed to meet the requirements of the

bilateral agreements in Queensland, New South Wales, Western Australia and Victoria. Implementation plans are being finalised in the other states and territories.

More detailed information on the administration of the Natural Heritage Trust is contained in the Natural Heritage Trust annual report.

195

Department

- Department of Agriculture, Fisheries and Forestry: National Action Plan for Salinity and Water Quality

The Minister for Agriculture, Fisheries and Forestry and the Minister for the Environment and Heritage jointly determine policy and major funding allocations from within the National Action Plan for Salinity and Water Quality. The Department has a cross portfolio arrangement with the Department of Agriculture, Fisheries and Forestry for administration of the National Action Plan, which occurs through a joint Commonwealth Regional Natural Resource Management Team.

The Department of Agriculture, Fisheries and Forestry receives the appropriation for the National Action Plan and during 2003-04 provided $1.8 million to the Department to cover administration costs incurred in implementing the National Action Plan (refer to the audited financial statements elsewhere in this annual

report).

Both departments worked with the states, territories and regional bodies to prepare investment strategies at the same time as integrated regional natural resource management plans, with most progress in New South Wales, Victoria and South Australia. The Ministers accredited 17 integrated regional natural resource management plans for the National Action Plan.

The multi-jurisdictional Market Based Instruments Working Group continued its ongoing work to develop strategic approaches for the non-regional elements of the National Action Plan under the National Market Based Instruments Pilots Programme.

The bilateral agreements signed with the states and territories include a commitment to develop a monitoring and evaluation strategy that is consistent with the National Framework for Natural Resource Management Standards and Targets. Monitoring and evaluation implementation plans have been developed to meet the requirements of the bilateral agreements in Queensland, New South Wales, Western Australia and Victoria. Implementation plans are being finalised in the other states and territories.

More detailed information on the administration of the National Action Plan for Salinity and Water Quality is contained in the National Action Plan for Salinity and Water Quality annual report.

Department - Director of National Parks

The Environment Protection and Biodiversity Conservation Act 1999 provides for the office of Director of National Parks. The Department receives the appropriation for the Director of National Parks. In effect, the Department purchases park

196 Department of the Environment and Heritage Annual Report 2003-04

Financial results

Performance of purchaser-provider arrangements

Review of performance

management services from the Director to contribute to the Department's Outcome 1, where the Director is the sole provider of statutory functions and powers for establishing and managing Commonwealth reserves (including parks).

The Department also has a cross-agency arrangement with the Director whereby the Department provides corporate services to the Director. The Department's Parks Australia Division supports the Director's work.

During 2003-2004, the Department provided $35.552 million to the Director of National Parks under the purchaser-provider arrangement (refer to the audited financial statements elsewhere in this annual report).

The arrangement was effective, providing park management services that met the targets set in the Portfolio Budget Statements 2003-2004 Environment and Heritage Portfolio. Management of all Commonwealth reserves was carried out in accordance with the requirements of the Environment Protection and Biodiversity

Conservation Act 1999 and the Director's statutory and legal responsibilities were met. The Director and Parks Australia continued to strive to meet best practice management standards. Implementation and reporting systems were further enhanced. As at 30 June 2004:

â¢ 17 of the 20 parks and reserves proclaimed under the Act had management plans in effect;

â¢ one new plan was completed and came into effect during the year; and

â¢ implementation schedules had been completed for 17 of the 20 parks and reserves.

The Director and the staff of Parks Australia continued to represent the Australian Government in international and national forums, work closely with traditional owners of Australian Government parks to further develop joint management arrangements, and actively encourage community participation in the development of management plans for Commonwealth reserves.

Refer to the annual report of the Director of National Parks for more detail.

Department - Director of National Parks,Australian

Greenhouse Office, National Oceans Office: Corporate services

The Department has a cross-agency arrangement with the Director of National Parks, the Australian Greenhouse Office and the National Oceans Office, whereby the Department provides corporate services to these agencies on a fee-for-service basis. The Department received $4.886 million in fees. Refer to the report on

'Outcome 1' and the separate annual reports of these agencies for more information about the effectiveness of this arrangement.

197

About this part of the annual report

Not all the Department's activities are listed in the portfolio budget statements, and so are not reported in the previous part of the annual report 'Review of performance'.

Additional, 'enabling' activities allow the Department to produce the outputs that are listed in the portfolio budget statements. They are funded from the departmental appropriations for the outputs in the portfolio budget statements.

Some of these activities can be characterised as cross-cutting intermediate outputs that contribute directly to the Department's core tasks of protecting the environment and advancing Australia's interests in Antarctica. Cross-cutting outputs like environmental reporting, international policy advice and environmental economics advice are linked in obvious ways to the outputs listed in the portfolio budget statements and described in the 'Review of performance'.

Other activities, like improving business procedures, building corporate knowledge and managing assets, sustain the organisation itself.

This part of the annual report covers these additional activities.

Environmental reporting

Data identified by the Department's State of the Environment team is used to inform policy advice and monitor progress on environmental protection.

2006 State of the Environment Report

The Minister appointed an independent Australian State of the Environment 2006 Committee in March 2004. By the end of June 2004 the Committee had finished scoping the Australian State of the Environment 2006 Report, and the preparatory process for the report was well under way.

Sustainability reporting

The Department commenced scoping data sources for a second report against the National Headline Sustainability Indicators, which is expected in 2006 or 2007.

Sustainability indicators relate economic, social and environmental factors to provide integrated information about how a nation, region, sector or activity is

200 Department of the Environment and Heritage Annual Report 2003-04

Management and accountability

performing in achieving the goals and objectives of sustainable development. The 2001 publication Are We Sustaining Australia: A Report Against Headline Sustainability Indicators for Australia was Australia's first report on national performance against the core objectives of the National Strategy for Ecologically

Sustainable Development, measured against a set of 24 sustainabiity indicators (see www.deh.gov.au/esd/national/indicators/report) . Comparing successive sets of indicators will help to determine Australia's progress towards sustainability.

Environmental Resources Information Network

The Environmental Resources Information Network (also referred to as 'ERIN') continued to develop and coordinate key environmental information products. Improved spatial and computing infrastructure allowed better integration of environmental data across the Department and enhanced support for the operation of the Environment Protection and Biodiversity Conservation Act 1999.

The Department's web sites and Internet map services improved the delivery of environmental information to the public including the development and launch of the Used Oil Recycling Directory, improvement of the National Pollutant Inventory web site, and enhancements to the online Australian Natural Resources Atlas.

ERIN also provided expert technical services including remote sensing analysis to support a successful prosecution of the Gwydir Wetlands case under the Environment Protection and Biodiversity Conservation Act 1999 (see also the report on the operation of this Act in this annual report).

International policy advice

Australia—United States Free Trade Agreement The Department was an active participant in the negotiation of the Free Trade Agreement with the United States. The Department was represented at all rounds of negotiations and was actively involved between rounds in providing policy advice on aspects of various chapters in the Free Trade Agreement. The final agreement

meets an initial objective set out by the Australian Government in 2002, which was to seek to ensure that trade and environment policies are mutually supportive by maintaining Australia's ability to protect and conserve its environment and to meet its international obligations.

201

World Trade Organisation Committee on Trade and

Environment

The Department continues to take an active role in meetings of the World Trade Organisation Committee on Trade and Environment. The Committee is negotiating the trade and environment outcomes of the Ministerial Meeting in Doha, Qatar; particularly the reduction or elimination of tariffs and non-tariff barriers on environmental goods and services and the relationship between multilateral environment agreements and the World Trade Organisation rules. Little was achieved this year on these issues as negotiations on the Doha round ceased across the board for some time following the breakdown in talks at the meeting in Cancun, Mexico, in September 2003.

Commission on Sustainable Development

The major themes under discussion at the 12th session of the United Nations Commission on Sustainable Development (CSD12), held between 14 and 30 April 2004, were water, sanitation and human settlements. CSD12 was the first session under the new two-year cycle format agreed at the 2002 World Summit on Sustainable Development, focusing on reviewing progress to date. CSD13 in 2005 will examine the policy issues and priorities identified during CSD12.

The Minister led the Australian delegation, highlighting Australia's leadership in the management of freshwater resources in his high-profile role as an introductory speaker on the water theme. The Minister identified the importance of good governance, integrated approaches to natural resource management, and innovative financing mechanisms, including private capitalisation. Australia's domestic work on freshwater issues, including provision of environmental flows in key river systems, was highlighted by a number of countries at the meeting as being world-leading. A number of issues were identified for further action on all three

main themes, and will be the subject of negotiation at CSD13 in 2005.

Organisation for Economic Cooperation and Development

and United Nations Environment Programme

The Department represented Australia's interests in the meetings of the Organisation for Economic Cooperation and Development's Environment Policy Committee and the United Nations Environment Programme's Governing Council.

The Environment Policy Committee met at ministerial level in April 2004 to review progress on implementation of the Organisation for Economic Cooperation and

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Development's Environmental Strategy for the First Decade of the 21 1 Century. The Minister was unable to attend and was represented by a senior departmental officer. Australia along with Sweden had been requested to develop a draft ministerial statement on sustainable development, which was accepted by ministers with much

recognition of the effort put in by Australia.

The Department represented Australia's interests at the March 2004 meeting of the United Nations Environment Programme's Global Ministerial Environment Forum held in the Republic of Korea. Australia was able to ensure there was emphasis on environmental flows of water in United Nations Environment Programme's submission to the Commission on Sustainable Development meeting on water.

Bilateral activities

â¢ Papua New Guinea: The Department continued to assist Papua New Guinea in the areas of governance and natural resource management, forestry and forest biodiversity conservation, and partnership building. Assistance has included support on issues such as wildlife trade, world heritage, marine planning, and

the development of a National Capacity Self Assessment to assist Papua New Guinea to meet its international environment obligations more effectively.

â¢ Indonesia: Work continued on alleviating the impact of Indonesia's traditional fishing activities on Australian marine environments, on enhancing local government planning and management capacity in the Lorentz National Park World Heritage property in West Papua (formerly Irian Jaya), and on building

Indonesia's oceans policy capacity. â¢ Japan: Engagement with Japan continued through attendance at EcoAsia and representation on the Asia—Pacific Forum for the Environment and Development, and through working together on migratory birds, the climate change Umbrella

Group, a regional agreement on albatross and petrels, meteorology, world heritage and joint polar research. Australia is also working with Japan on a number of World Summit for Sustainable Development voluntary partnerships and is represented on the Board of Trustees of the Institute for Global Environmental Strategies, based in Kanagawa. â¢ New Zealand: Bilateral environment talks were held with New Zealand in

Canberra in October 2003. Issues discussed included oceans, chemicals management, world heritage and climate change, along with a number of other subjects. The relationship with New Zealand continues to be very strong.

â¢ Pacific islands: Engagement with the South Pacific Regional Environment Programme continued through Australia's involvement in the 141 annual South Pacific Regional Environment Programme meeting of officials and

203

11 ministerial meeting, held in Apia in September 2003. The Department assisted

the programme and the Pacific in the areas of wetlands conservation, chemicals management and climate variability assessment, as well as through assistance with the implementation of regional conventions such as the Montreal Protocol on Substances that Deplete the Ozone Layer and the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

European Commission: Australia—European Commission consultations on the environment were held in November 2003 in Canberra. Attended by a small delegation from the European Commission Directorate-General for Environment, the talks focused in the main on climate change and current issues in the Convention on Biological Diversity. The European Commission delegation was also engaged in site visits related to Australia's work on water issues and was very impressed.

â¢ United States: Australia and the United States signed a Joint Statement on Environmental Cooperation on 18 May 2004, which cements our already good relationship on environment issues.

Planning and coordination

During the year, the portfolio revamped its International Steering Committee, making it into a high-level strategic planning and coordination body across the portfolio on international issues. The steering committee developed an international workplan, which guided the year's activities. The plan will be reviewed annually. A negotiators' forum was also run for staff engaging in international negotiations, to discuss issues of common interest.

Environmental economics advice

Protection of the environment has increasingly become a whole-of-go'ernment activity, with ecologically sustainable development requiring inputs on environment, social and economic aspects of policy development. The Department has had an Environmental Economics Unit since 1992. The role of the unit is to provide sound economic analyses of the costs, benefits and impacts of environmental policies. In developing these analyses the unit works closely with the Productivity Commission, the Department of the Treasury, and the Department of the Prime Minister and Cabinet.

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Great Barrier Reef

A major focus in 2003-04 was the Great Barrier Reef. The unit helped to develop the structural adjustment package for the Great Barrier Reef Marine Park's Representative Areas Programme to address impacts on fishers and related industries affected by the re-zoning. The unit examined economic aspects within the Great Barrier Reef Water Quality Protection Plan.

Market development for water and wastes

Also significant was the unit's contribution to various initiatives to improve markets for water and industry wastes. The unit provided input to water property rights and water markets and pricing processes including the National Water Initiative. It advised on the application of market-based instruments to natural resource and waste stream management issues, for example, overseeing projects examining the potential for market mechanisms for waste tyres and oil.

The unit represents the Department on the Market Based Instruments Working Group that oversees the National Market Based Instruments Pilots Programme under the National Action Plan for Salinity and Water Quality. The programme involves the Australian, state and territory governments jointly funding 11 innovative natural resource management projects to the value of $5 million. The projects are now under way and strategies are being implemented for consolidating and communicating results from the programme about the challenges and benefits of using market-based instruments.

The Department sponsored, and the unit co-organised with the Australian Agricultural and Resource Economics society, a symposium on market-based tools for environmental management. The symposium was attended by practitioners, policy makers and academics, and provided a forum for debate and discussion on these innovative mechanisms. A proceedings report is due to be published in the second half of 2004.

Energy and other policy development

A third major area of activity for the unit was providing advice on the development of the Energy White Paper process that resulted in the Securing Australia's Energy Future report, which was launched on 15 June 2004.

The unit also:

â¢ advised on aspects of the economic modelling of the Australia-United States Free Trade Agreement and the incorporation of environmental factors; and

205

â¢ prepared and coordinated the Department's submission to the Productivity

Commission's Inquiry into National Competition Arrangements.

The Environmental Economics Unit, together with the Department's legal, strategic policy and budget areas, forms the Policy Development Branch. In 2003-04 the unit had an operating expenditure of approximately $400 000.

Support for environmental education

Environmental education is a fundamental tool in achieving a shift towards ecologically sustainable development. In conjunction with the Australian Government's advisory body on environmental education, the National Environmental Education Council, the Department achieved some significant results in its implementation of the National Action Plan for Environmental Education in 2003-04.

Sustainable Schools initiative

The Australian Government has committed $2 million to the Sustainable Schools initiative. Pilot Sustainable Schools programmes are being undertaken in Victoria and New South Wales. With the support of the National Environmental Education Network, agreement has been reached to develop the Sustainable Schools programme into a national initiative. In addition to the 320 schools currently participating in the pilot programmes, agreement has been reached to proceed with further pilots in Queensland, Western Australia and South Australia. This will bring funding to date for the initiative to $780 000, with $540 000 approved and $279 000 expended in 2003-04.

National Environmental Education Statement for Schools

Support was also achieved from the states and territories to work together on the development of a National Environmental Education Statement for Schools. Once completed, the statement will provide for the first time a national framework for environmental education in Australian schools, setting out objectives and guiding principles.

Environmental education research

An environmental education research programme was instigated through the Australian Research Institute in Education for Sustainability at Macquarie University,

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at a cost in 2003-04 of $500 000 (a Natural Heritage Trust national investment).

The research is intended to identify key factors and impediments influencing environmental education, and to develop effective educational materials and programmes to promote behavioural change towards the sustainable use of Australia's resources.

Guidance for departmental staff

An environmental education protocol was also developed for the Department, which provides guidance to departmental staff on effective environmental education. The protocol will also help to coordinate the portfolio's education activities.

Support for environmental organisations

Taxation concessions The Register of Environmental Organisations is a list of approved environmental organisations to which donations of money or property for the conservation of the natural environment are tax-deductible. During 2003-04, it is estimated that the public donated more than $55 million to environmental tax-deductible organisations. These funds are used to protect and enhance the natural environment. Sixty-nine applications were processed for entry to the register during

2003-04. Sixteen organisations were entered on the register and three organisations were removed. Registration is a slow process: some organisations take a long time to meet the requirements of the Income Tax Assessment Act 1997, and the Treasury is now obliged to assess the revenue implications of listing new organisations in the register.

Grants to Voluntary Environment and Heritage Organisations The Grants to Voluntary Environment and Heritage Organisations programme is directed to community-based environment and heritage groups to assist with the

administrative costs of the activities. In 2003-04, 66 organisations met the eligibility criteria and were recommended to receive funding. Under the programme, $858 890 was allocated, with all funding offers accepted and all grants paid.

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The National Environment Consultative Forum

The National Environment Consultative Forum provides an opportunity for 35 peak environmental organisations to hold discussions with the Minister and the Department on a range of environmental issues.

The forum met twice in 2003-04. A small meeting was convened in November 2003, where, for the first time, the forum was provided with the opportunity to suggest to the Minister priorities for the next budget. A full meeting was held in June 2004 and discussed a very broad range of environmental issues including

water initiatives, greenhouse, sustainable cities, toxics, marine fisheries, oceans policy, and legislation.

Forum members also participated in a briefing on the environment budget held on Budget night (11 May 2004), hosted by the Department.

Corporate governance

The Department improved the way it operates—its corporate governance arrangements—to respond to the challenges of a whole-of-government approach to environment protection and cross-portfolio linkages on key environmental issues. During 2003-04, the Department took concerted steps to clarify the roles and responsibilities of senior management committees, review performance information in the portfolio budget statements, and improve its risk management framework.

Senior executive staff

The Department's senior executive staff is responsible for setting the Department's policies, priorities and strategic directions. The senior executive staff comprises Senior Executive Service employees:

â¢ the Secretary; â¢ deputy secretaries; â¢ first assistant secretaries (division heads); and â¢ assistant secretaries (branch heads).

Figure 2 shows the names and responsibilities of these officers in a departmental organisational chart.

In February 2004, the Secretary, Mr Roger Beale AM, retired after a total of over 37 years in the Australian Public Service, with 19 years at department head level (see the Review by departmental secretary' part of this annual report). The current Secretary of the Department is Mr David Borthwick.

208 Department of the Environment and Heritage Annual Report 2003-04

Total 29 27

11 9 40 36

1 9 SES Band 1

7 SES Band 2

2002-03 2003-04 2002-03 2003-04 2002-03 2003-04

8 25" 18

8 2

9 g(d)

SES Band 3 3 4 2

Management and accountability

Table 68 shows the numbers of senior executive employees in the Department by

classification and gender during 2002-03 and 2003-04.

Table 68: Numbers of Senior Executive Service employees(a)

Male Female Total

Classification

Figures for 2002-03 areas at 30 June 2003 and figures for 2003-04 areas at 30 June 2004. a, SES stands for Senior Executive Service. Includes 6 Executive Level 2 emplyees acting in SES Band 1. 511 Includes 1 inoperative employee.

Table 69 shows the number of changes to the Department's senior executive staff

during 2002-03 and 2003-04.

Table 69: Mobility of Senior Executive Service employees

Senior executive remuneration

The Department's remuneration strategy for Senior Executive Service employees is based on the following set of principles:

â¢ financial rewards will be directly related to the success of the Department in providing the outputs required by government; â¢ individuals will be rewarded according to their assessed contribution in meeting performance expectations;

â¢ remuneration will be competitive with other like organisations;

Type of movement 2002-03 2003-04

Commencements 0 4

Cessations 4 3

Transfers/promotions within Department 2 3

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Total

$182585 $157105 $129495 $140020

Classification

Performance pay statistic

SES Band 2 and 3 SES Band 1

2002-03 2003-04

Number of performance payments 13 12 24 25

Average performance pay

Range of performance pay

$6546

$1508 - $8458

$7303

$1549-$8897

$10771 $10791

$6211 -$13 196 $5 144-$13566

e Includes employees of the Australian Antarctic Division, Senior Executive Service performance pay bonuses for the 2002-03 appraisal cycle were paid during 2003-04. Some payments were made on a pro-rata basis as Senior Executive Service employment did not span the full appraisal.

â¢ remuneration arrangements will be flexible so that the Department can recruit

and retain staff with special skills; and â¢ remuneration arrangements will be streamlined where possible to avoid unnecessary administrative costs.

All Senior Executive Service employees have Australian Workplace Agreements. Senior Executive Service remuneration packages comprise base pay, performance pay and other benefits, such as a maintained vehicle. From time to time, the Secretary reviews Senior Executive Service remuneration. The fourth round Senior Executive Service Australian Workplace Agreements became effective on 1 July 2003 and has a nominal expiry date of 30 June 2005.

Table 70 shows the amount of performance pay the Department paid to senior executive employees in 2002-03 and 2003 -04. (Table 76 shows performance pay for executive level employees and Table 77 shows the base salary ranges for employees at each level of employment).

Table 70: Performance pay for Senior Executive Service employees

Cb) ' SES' stands for Senior Executive Service.

Senior management committees

The Environment and Heritage Portfolio is responsible for delivering a broad range of policies and programmes. The Portfolio covers a range of locations across Australia and its offshore territories, so that cross-portfolio communication and coordination is a particular challenge.

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Management and accountability

The Executive Roundtable is the Portfolio's key decision making forum. The

Executive Roundtable is chaired by the Secretary and members include the deputy secretaries, division heads and agency heads. It meets weekly (including via video-conferencing) to consider policy, programme and corporate matters across the Portfolio. A summary of outcomes from these weekly meetings is made available to

all employees via the Department's intranet.

Several sub-committees assist the Executive Roundtable to carry out its responsibilities. Table 71 shows the current roundtable sub-committees and their roles.

Table 71: Subcommittees of the Executive Roundtable and their roles

Subcommittee Role

Audit Committee

Budget, Finance and Strategy Committee

Compliance Executive Committee

International Steering Committee

Oversees internal audit programme evaluation, fraud control, risk management, and corporate governance related matters.

Considers significant budget and financial matters, and guides and monitors activities to improve the portfolio's strategic engagement in the Sustainable Environment

Committee of Cabinet.

Sets strategic policy and direction for compliance work across the Department, endorses operational policies and practices,

and sets performance measures and reviews

performance.

Oversees and provides strategic direction to the international work of the Department, and sets priorities for its international

activities.

Knowledge Management Committee

Marine and Coastal Coordination Committee

Workforce Management Committee

Works towards providing ready access to and sharing of knowledge across the

Department.

Coordinates marine and coastal issues, including international marine issues,to provide a consistent and strategic approach.

Provides high level strategic oversight and

direction for people management in the

Department.

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During

2003-04, the Executive Roundtable reviewed the governance arrangements of these sub-committees. As a result, each sub-committee developed a charter of operations that outlined its terms of reference. In addition, briefing formats and meeting procedures were improved and standardised.

Currently, the Audit Committee, International Steering Committee and the Knowledge Management Committee report their activities on the Department's intranet. As at 30 June 2004, the Department was upgrading its intranet and expected to make each sub-committee's charter of operations, meeting minutes and other relevant papers available to employees in the second half of 2004.

In addition, the Department has a range of other committees and networks that provide advice to the Executive Roundtable and its sub-committees. These include senior management boards such as the Procurement Review Board, as well as more widely representative bodies such as the Department of the Environment and Heritage Consultative Committee and the Network on Indigenous Issues.

Planning and review

A five-year corporate plan, an annual cycle of planning and review, and a service charter support the Department's corporate governance framework.

Launched in April 2001, the corporate plan is aligned with the Department's output structure and supported by the annual strategic plan.

The annual strategic plan highlights the Department's key directions, challenges and priorities against each output. The Department reviews performance continually through an annual programme of internal audits and evaluation, and periodically through its annual report. These reviews inform development of future strategic and corporate plans and the portfolio budget statements.

The Department's service charter has been in place since 1 July 1998. The charter sets out the standards of service that clients can expect from the Department, their rights and responsibilities, and how to find out more about the Department. The charter applies to all clients, including other government agencies, community organisations, industry and members of the public. The principal means of accessing the charter is through the Department's web site (for external clients—see www.deh.gov.au/about/publications/eacharter.html) and intranet (for employees).

Internal audit and risk management

The Department's Audit Committee oversees internal audit and risk management. The Department engages WalterTurnbull to provide internal audit functions,

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including reviewing risks, and advising on risk management policy, fraud

investigations and programme evaluations.

During 2003-04, the Department:

â¢ reviewed the risk management framework against better practice approaches;

â¢ finalised a strategic risk assessment;

â¢ increased awareness of the importance of risk management; â¢ conducted risk management workshops for divisions and developed divisional risk assessments and management plans; and â¢ implemented a risk management approach to the delivery of programmes and

projects consistent with its Risk Management Handbook.

The Audit Committee oversees the Department's Fraud Control Plan. During 2003-04, WalterTurnbull continued to provide fraud prevention services, which include assisting in the development and review of the Department's fraud prevention policy, providing fraud advice, and conducting investigations of potential fraud.

In 2003-04, the Department finalised its Fraud Control Plan, which is a requirement of the Commonwealth Fraud Control Guidelines. The Department's fraud control capabilities were also enhanced by:

â¢ reviewing and monitoring the Department's fraud risk analysis and management actions; â¢ providing fraud awareness training to staff; and â¢ developing appropriate ethical standards within departmental programmes.

Comcare, the Australian Government's workforce insurance provider, covers the Department and provides support and guidance aimed at reducing the likelihood of workplace injury.

The Department's Occupational Health and Safety Unit plays an important role in reducing the risk of injury through preventive programmes, awareness raising, workplace assessments, and inspections to identify, remove and reduce risks. The unit also provides rehabilitation case management services to ill and injured employees to help them to return to the workplace in a timely manner. Health

and safety awareness is maintained and raised through training and orientation programmes.

An Occupational Health and Safety Committee and a network of health and safety representatives and first aid officers further assist the Department to identify and minimise risks. On occasions, external experts are engaged to provide advice on risk elimination, reduction and management strategies. See also Appendix 1.

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Ethical standards

In its dealings with clients, the Department is committed to acting ethically with integrity, responsiveness and responsibility, as set out in the Department's service charter.

For employees, the Department reinforces its commitment to the Australian Public Service Values and Code of Conduct by:

â¢ running an orientation programme for new employees that specifically addresses ethical issues and the code of conduct;

â¢ issuing a comprehensive departmental code of conduct, which is available to all employees on the Department's intranet and illustrates commonly encountered ethical issues to all new staff;

â¢ warning staff against the inappropriate use of information technology through Guidelines for the Use of Information Technology;

â¢ maintaining a Workplace Contact Officers Network, whose role it is to raise awareness about acceptable behaviour in the workplace, as well as assist employees with their complaints;

â¢ running an ethics course for participants in the graduate programme each year;

â¢ maintaining a whistleblower policy to ensure that allegations are treated seriously and independently investigated in a timely manner; and

â¢ including a requirement in contracts with external service providers that they observe the Australian Public Service Values and Code of Conduct in their work for the Department.

The Department's Australian Antarctic Division has separate arrangements for human resource management. To uphold the Australian Public Service Values and Code of Conduct, the Division has developed a Code of Organisational Behaviours for Australian-based employees and the Antarctic Service Code of Personal

Behaviour for personnel (whether employees or not) based principally in the Antarctic and sub-Antarctic.

These codes underpin the Division's human resource management strategies, including recruitment. As part of the selection process for senior head office vacancies, during 2003-04, the Division used psychometric testing focused on the relevant behavioural code. The Division continued to separate technical and personal quality assessments for the majority of Antarctic employment opportunities, reflecting its strong commitment to an Antarctic culture that respects tolerance, diversity, the environment, and agreed social standards.

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The Australian Antarctic Division advises potential employees about the need to

disclose any potential conflict of interest and that the Australian Public Service values apply. On commencement, all employees receive a copy of the Division's certified agreement, which clarifies staff behavioural requirements.

The behavioural codes also form the basis for performance management, and are incorporated in employees' performance agreements. During 2003-04, the Division upgraded training and reporting arrangements to focus more on corporate governance. Managers are prepared to intervene where conduct or performance does not meet reasonable minimum expectations. Recent indications, based largely on employee feedback, suggest these initiatives are helping to promote increasingly harmonious and supportive Antarctic communities.

All Australian Workplace Agreements administered by the Department (including the Australian Antarctic Division) require a personal commitment to the Australian Public Service Values and Code of Conduct.

External scrutiny

Courts and tribunals There were no judicial or administrative tribunal decisions in 2003-04 that significantly affected the operations of the Department. For more information about case law developments in 2003-04, see the reports on the operation of various Acts

administered by the Department under 'Other reports'.

Auditor-General reports

Apart from the report on financial statements, the following Auditor-General reports were tabled.

Report No. 24:Agency Management of SpecialAccounts, tabled 31 January 2004

The Australian National Audit Office conducted an audit of all special accounts (and their predecessors) that have existed at sometime during the time since the Financial Management and Accountability Act 1997 commenced operation on 1 January 1998. The audit objectives were to:

â¢ identify all special accounts that have existed;

215

â¢ assess the efficiency and effectiveness of the establishment, management and

abolition of these special accounts; and â¢ assess compliance with the legislative requirements (including those of the Financial Management and Accountability Act 1997 and the Finance Minister's Orders promulgated under that Act).

To address the first audit objective, the audit commenced with a census of all Commonwealth agencies. This was combined with analysis of each reported special account to confirm that the account existed at law, and had been properly disclosed by the relevant agency. The second and third audit objectives were met by an assessment of the overall governance framework for special accounts, together with a detailed examination of the management of 19 special accounts administered by six agencies. These 19 special accounts had reported closing balances totalling $1.23 billion as of 30 June 2003, with total reported transactions (credits and debits) of $7.60 billion during 2002-03.

In terms of the audit objectives, the Australian National Audit Office concluded as follows:

â¢ there had been uncertainty since the introduction of the Financial Management and Accountability Act 1997 about the number and identity of special accounts that exist. After detailed examination of all available records, the Australian National Audit Office found that a total of 297 special accounts had been established since the Financial Management and Accountability Act 1997commenced. Of these, 56 had subsequently been abolished, leaving 241 accounts in existence as at November 2003; â¢ many agencies needed to improve their management of special accounts.

There had been widespread non-reporting of special accounts, and significant inaccuracies in the financial disclosures on some of those accounts that have been reported. Further, appropriation management procedures were found to be inadequate in a number of agencies; and â¢ there had been non-compliance with a number of legislative requirements. This

included those provisions of the Financial Management and Accountability Act 199 7(and subordinate legislation) relating to the management of appropriations, the keeping of proper accounts and records, and the reporting of all special accounts. There had also been inadequate understanding within agencies of, and non-compliance with, aspects of the legislation that has established particular special accounts. This included where legislation required amounts to be credited to a special account.

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The results of the audit were that deficiencies were identified in the management of 12 of the 19 special accounts examined in detail by the Australian National Audit Office. This included special accounts not being credited with amounts that legislation required to be credited and debits being recorded against special accounts that were outside the specified expenditure purposes of the account. Inaccuracies in the reported balance of seven special account appropriations were one consequence of the deficiencies identified during the course of the audit.

The audit demonstrated that there was significant scope for agencies to improve their financial management and reporting practices for their special accounts. The improvements to special account disclosure requirements and the development and publication in October 2003 of Special Account Guidelines by the Department of Finance and Administration have provided a stronger platform for enhancing the financial management, reporting and transparency of special accounts. The Australian National Audit Office made 13 recommendations to improve management of, and accountability for, special accounts.

The recommendations of the report that were relevant to the management of the Department's special accounts have been implemented.

Report No. 31:The Senate Order for Departmental and Agency Contracts (FinancialYear 2002-2003 Compliance), tabled 26 February 2004

The objectives of the audit were to assess agency performance in compiling the Internet listings required by the Senate Order and the appropriateness of the use of confidentiality provisions in Commonwealth contracts.

The focus of the audit in relation to confidentiality was on the commercial information that could be reasonably protected as confidential information. The Australian National Audit Office recognised, however, that agencies might have reported confidentiality for other reasons, such as for information with a national security classification, or personal information.

The Australian National Audit Office found that, by the time the audit was completed, 78 Financial Management and Accountability Act agencies had either placed a list of contracts on their websites, or did not have any contracts that fell within the scope of the Senate Order. The majority of lists generally complied with

the requirements of the Senate Order, although there was scope for agencies to improve the presentation of the lists and to ensure that all details required of the Senate Order listing had been met.

217

In relation to the six agencies subject to detailed audit, all had placed a list of

contracts on their web site by the due date. For five agencies, the Australian National Audit Office concluded that the processes used to compile the Internet listing were generally likely to lead to the lists being complete in terms of the number of contracts listed.

Six of the selected agencies had revised, or were in the process of revising, elements of their general contracting practices, policy guidance, tender documentation and contract templates to reflect the changes to government policy. These changes, amongst other things, require both parties to a contract to agree what information, if any, should be protected as confidential prior to the contract being entered into. However, as identified in previous Australian National Audit Office audits of the Senate Order, the understanding of how to implement these changes was not uniform across, or within, agencies.

The Australian National Audit Office reviewed 30 contracts that were listed, or should have been listed, on the Internet as containing confidential provisions to determine whether they had been listed appropriately. The Australian National Audit Office considered that only five (17 per cent) of the contracts contained information that was likely to satisfy the criteria for protection as confidential information. In previous audits, the percentage of contracts that the Australian National Audit Office considered had been appropriately listed ranged from 15 to 38 per cent. In previous audits, the Australian National Audit Office also

recognised that agencies had difficulty in changing procedures to implement the new accountability framework. This was largely because formal Department of Finance and Administration guidance on how to determine the confidentiality of contractors' commercial information had not been available at the time the contracts had been negotiated.

However, in this audit, the majority of contracts selected for review had been entered into after the Department of Finance and Administration guidance had been issued. As a result, the Australian National Audit Office considered that a larger percentage of contracts should have been appropriately listed as containing confidential information. The results from this audit highlighted the need for all agencies to continually review their policies on the new accountability framework so that they accord with the government policy of the time. In addition, agencies should make sure that the policies are known, and acted upon, at all levels within the agency. This reinforced the need for an ongoing effective awareness-raising regime.

The recommendations of the report that were relevant to the Department's management of the Senate Order have been implemented.

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Management and accountability

Parliamentary committees

On 1 December 2003, the House of Representatives Environment and Heritage Committee tabled its report entitled Employment in the Environment Sector: Methods, Measurements and Messages. The Department has been charged with developing a government response to this report. Several of the key

recommendations of the report have been overtaken by government decisions.

On 14 October 2003, the Senate Environment, Communications, Information Technology and the Arts Committee tabled its report entitled Regulating the Ranger, Jabiluka, Beverly and Honeymoon Uranium Mines in both houses of the Parliament. The report includes recommendations relevant to the Department's

work. The Department of the Prime Minister and Cabinet has referred the committee's report to the Department and as at 30 June 2004 the Department was in the process of developing a government response.

Office of Regulation Review

The Office of Regulation Review advised that the Department was fully compliant with the Australian Government's regulation impact statement requirements.

Ombudsman

No reports were made.

Knowledge management

Effective management of the Department's knowledge base is critical for sound environmental policy making.

In 2003-04, the Department escalated its efforts to achieve a durable and up to date system for maintaining the extensive environmental knowledge held across the Department and the Portfolio. The Department established a Knowledge Management Section for the first time. The Executive Roundtable's Knowledge

Management Committee audited the knowledge base of the Department's divisions, identifying business information and knowledge needs.

The Department continued to build staff support for devoting time to establishing and maintaining environmental knowledge. A number of projects were initiated with the goal of improving knowledge development and sharing, through cultural change and the use of technology.

219

At a senior level, knowledge management was incorporated into performance

appraisals. Staff generally were encouraged to become part of a network of 'knowledge champions' covering all areas of the Department to enhance communication about knowledge management needs and better practices.

The Department also reviewed the latest technology options for knowledge storage and circulation, as a prelude to implementing new systems during 2004 05.

Management of human resources

Strategic people management remained an important issue for the Department. Through the Workforce Management Committee, the Department continued to ensure that its people management policies and programmes remain focused on achieving corporate goals.

The Department has a diverse workforce carrying out a wide range of responsibilities across Australia and the Australian Antarctic Territory. The Department has a common strategy and approach to people management. This is administered from the department in Canberra for areas other then the Australian Antarctic Division. That Division has a separate corporate administration in Hobart to support its specific business requirements.

Workforce planning, employee turnover and retention

The Department's non-Antarctic workforce remained fairly stable with a two per cent decrease in separations, from 24 per cent in 2002-03 to 22 per cent in 2003-04. Employees initiated eight per cent out of the 22 per cent. The remaining 14 per cent was separation of non-ongoing staff.

Tables 72 and 73 show the numbers of employees classified according to broadbanded employee classification, gender and location as at 30 June 2004. Tables 74 and 75 show the number of Australian Public Service employees, including (as at 30 June 2004) classifications according to gender and whether the employees are ongoing or non-ongoing.

Employing a higher proportion of women in the Department's Australian Antarctic Division remained a priority. Advertising for the 2004 05 season continued the Division's commitment to encourage applications from women across occupational categories. The success of this approach is yet to be fully evaluated. However the proportion of female applicants for Antarctic employment increased progressively from 4.5 per cent in 2001-02 to 13 per cent in 2003-04.

220 Department of the Environment and Heritage Annual Report 2003-04

Table

72: Department (excluding Australian Antarctic Division) staff by classification, gender and location(a)

- Classification>

Location Gender Secretary PEO SES

Executive APS 1-6 Research Public Affairs Total Levels 1 &2 Scientists

2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 Australian Female 11 8 170 159 391 405 16 17 588 589

Capital Territory Male 1 1 1 1 26 21 211 203 207 221 2 2 5 4 453 453

Northern Female 6 8 138 113 144 121

Territory Male 3 3 14 13 198 144 6 6 221 166

New South Female ---- - 2 2 17 19 19 21

Wales10 Male 4 1 35 31 39 32

Western Female 1 3 3 3 4

Australia>> Male 1 3 9 14 10 17

Female 1 0 1

Victoria Male 1 0 1

Female 4 0 4

Queensland Male o 0

South Female 0 0

Australia Male 3 0 3

Female 2 0 2 Tasmania Male 0 0 Total 1 1 1 1 40 32 408 401 998>0 950>> 8 8 21 21 1477 1414 0)

Vt1

5) 0

Figures for 2002-03 are as at 30 June 2003 and figures for 2003-04 are as at 30 June 2004.

SES stands for Senior Executive Service; PEO stands for Principle Executive Officer; 'APS' stands for Australian Public Service. (d Includes Norfolk Island, l3ooderee National Park and Beecroft Peninsula (the northern peninsula of Jervis Bay in New South Wales).

Includes Indian Ocean Territories.

Includes 144 casual and day labour employees. " Includes 117 casual and day labour employees.

Table 73: Australian Antarctic Division

staff by classification, gender and location(a)

Figures for 2002-03 are as at 30 June 2003 and figures for 2003-04 are as at 30 June 2004. SES' stands for Senior Executive Service; 'AAD' stands for Australian Antarctic Division; 'AMP stands for Antarctic Medics! Practitioner,

Table 74: Full-time staff employed under the Public Service Act 1999(a)

Classification

Location Gender Chief of Division SES AAD Band 1-8 AMP Level 1-2

Exneditioner Total

Band 1-3

2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04

Females 1 1 94 95 1 96 96

Tasmania Males 1 1 3 3 183 189 3 3 4 194 196

Females 1 5 5 5 6

Antarctica Males 4 4 50 54 54 58

Total 1 1 4 4 277 284 7 8 60 59 349 356

- Full-time

Total

Division

Ongoing Non-ongoing

2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 Male Female Male Female

Parks Australia 143 133 70 63 37 39 24 28 274 263

Australian Heritage Commission 23 39 1 63 0

Australian Antarctic Division 146 149 47 59 91 93 38 25 322 326

Department—other divisions 347 364 384 425 26 40 35 49 792 878

Department total 659 646 540 547 154 172 98 102 1451 1467

Figures for 2002-03 areas at 30 June 2003 and figures for 2003-04 areas at 30 June 2004.

Table

75: Part-time staff employed under the Public Service Act 19 99 (a)

Part-time

Total

Ongoing Non-ongoing

Division

2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04

Male Female Male Female

Parks Australia 4 4 21 15 110 60 90 60 225 139

Australian Heritage

3 8 11 0 Commission -

Australian Antarctic Division 4 4 9 7 7 8 7 11 27 30

Department—other divisions 15 20 71 86 14 10 11 16 111 132

Department total 26 28 109 108 131 78 108 87 374 301

Figures for 2002-03 areas at 30 June 2003 and figures for 2003-04 areas at 30 June 2004.

The Department undertook two significant personnel studies in

2003-04.

A study of staff turnover involved contacting 132 former employees to find out their reasons for separation. One major finding was the perception that there are few opportunities for promotion to Executive Level 2 positions. The findings of this study led to the development of a Succession Planning Framework, which takes

into account issues related to a mature-aged workforce. The Department is also developing a pilot 12-month work rotation programme for promising APS 6 level employees, which may be extended to Executive Level 1 employees in the second half of 2004-05.

A comprehensive staff survey—the first survey of this type since 1995—was also conducted. The survey had an encouraging response rate of 76 per cent. The findings are due to become available in the second half of 2004. Along with the outcomes of the Australian Public Service Commission's State of the Service Report, the survey findings will provide a rich source of data on which to base future

people management and information technology policies.

Employment agreements

The Department's Certified Agreement 2002-04 for staff, other than the Australian Antarctic Division, covered 1153 employees. During 2003-04, the agreement continued to support a high performance culture with improved communication, a fair and equitable basis for identifying and improving performance, and improved

individual, team and managerial skills. Under the agreement staff received a three per cent pay increase in August 2003, in recognition of improved productivity.

Following extensive negotiations with staff and unions, the Department prepared a new certified agreement, which commenced on 1 July 2004 with a nominal expiry date of 30 June 2006. The new agreement reinforces the Department's commitment to staff achieving an appropriate balance between work and private life. It includes a competitive remuneration framework of pay and conditions, which will help the Department remain an employer of choice. The certified agreement is principles-based and supported by guidelines.

The Department offers Australian Workplace Agreements to all ongoing substantive Executive Level 1 and 2 employees. In 2003-04, these agreements covered 257 executive level employees—an increase of 163 from 2002-03. The agreements include:

â¢ access to an increased top pay point for Executive Level 2 and equivalent employees; â¢ provision for a responsibility and skills supplement;

224 Department of the Environment and Heritage Annual Report 2003-04

Management and accountability

â¢ removal of deeming of recreation leave; and

â¢ performance pay.

The Department's Australian Antarctic Division has separate employment agreements.

The Division's 'New Directions' Certified Agreement 2002-04 covered the majority of the Division's 305 head office employees. Negotiations on a replacement certified agreement commenced in May 2004 and were well advanced as at 30 June 2004. It is expected that a new two-year agreement for the Division will be certified in October 2004.

The Division's Australian Workplace Agreements gained greater acceptance among executive level employees. In 2003-04, 61 executive level employees (56 non-senior executive and five senior executive employees) were covered by Australian Workplace Agreements—an increase of 22 from 2002-03. These agreements

include:

â¢ employment conditions derived from a discrete 'conditions of service' manual, which effectively maintains the conditions available under the Division's certified agreement; â¢ access to performance pay; â¢ requirements to give four weeks' notice on resignation; and â¢ access to a range of non-cash benefits including reimbursement for financial

advice, Internet service provider costs, airline club membership, and limited personal use of laptops and mobile phones.

Table 76 shows the amount of performance pay the Department paid to executive level employees in 2003-04. Table 77 shows the base salary ranges for employees at each level of employment during 2003-04.

Table 76: Performance pay for executive level employees

Classification

Performance pay statistic Executive Level 2 Executive Level 1

2002-03 2003-04 2002-03 2003-04

Number of performance payments 66 86 97 148

Average performance pay $6934 $6201 $3743 $4621

Range of performance pay $544-$9786 $1176-$10586 $1303-$8046 $210-$8404

Total performance pay $457652 $533327 $363063 $683987

225

Table 77:

Base salary ranges for employees at each level of employment(a)

Classification—Department (excluding the Australian Antarctic Division)

Certified Agreement Australian Workplace

rates Agreement rates

APS Level 1/2 $29276 - $37905

APS Level 3 $38718 - $42640

APS Level 4 $43397 - $46831

APS Level 5 $47494 - $50908

APS Level 6 $51801 - $59949

Executive Level l $64954 - $72172 $64954— $72172

Executive Level $74916 - $87774 $74916 - $90774

PAO 1 (APS Level 4/5) $43397 - $50909

PAO 2(APS Level 6) $55293 - $61 114

PAO 3 (APS Exec Level 1) $68327 - $84934

SPAO 1/2 (APS Exec Level 2) $87774 - $92178 $87774— $95178

Legal Officer (APS Level 3/6) $39702 - $59949

Senior Legal Officer (APS Exec Level 1) $64954 - $79033 $64954 - $79033

Principal Legal Officer (APS Level 2) $84934 - $90016 $84934 - $93016

Research Scientist (APS Level 6/Exec 1) $55293 - $72172 $55293 - $72172

Senior Research Scientist (APS Exec Level 2) $74916 - $89268 $74916 - $92268

Principal Research Scientist (APS Exec Level 2) $90764 - $101640 $90764 - $104640

Senior Principal Research Scientist (APS Exec Level 2) $107423 —$117132 $107423 - $120132

226 Department of the Environment and Heritage Annual Report 2003-04

"-I

I 2)

?13)

!14)

1 5)

I 6)

Level 1)

Level 2)

:titioner Band 2

$6-

$7!

$10

:titioner Band 1 $8

lune 2004.

a Public Service; 'AAD' stands for Ausi nds for 'Senior Public Affairs Officer'.

nd development St

)mmitment to its People D continued during 2003-04.

vestors in People standard rformance through its peo wgural Australian Governr w the standard has helped

an resources in a geograp partment will seek Invest

siness planning, commun ies support the Investors in 7er cent of eligible employ cheme, which ensures emi

erformance agreements al:

012

- $38279

427 - $41827

3084 - $47079

3492 - $51443

2987 - $59636

1426 - $71 211 $59633

3346 - $121,235 $71 205 1531 -$110947 $102511

1673 - $55802

1289 - $69219

1 236 - $81 685

7583 - $98573 $88427

ralian Antarctic Division; 'PAO' stanc Ls

ategies

velopment Policy and lm

provides a framework for pie. In late 2003, the Depa aent Investors in People C the Department achieve b

hically and functionally di rs in People accreditation

[cations, and learning and People programme. Durii -es participated in the Per loyees have, and are asse;

gned to the work program

their branch. The scheme provides an avenue for employees to align their work

and development goals to those of the Department's 2003-04 Strategic Plan, which helps ensure a focus on results.

The Department developed its Learning and Development Strategy 2004 06, which provides a framework for management and supervision, and a leadership model.

In 2003-04, the Department continued its diverse programme of learning activities, including:

â¢ regular orientation sessions for new employees;

â¢ regular seminars presented by senior executive officers and other guest speakers—examples included presentations on the heritage amendments to the Environment Protection and Biodiversity Conservation Act 1999, on the work of the Australian Antarctic Division, on the Budget and its implications for the Department, on the National Water Initiative, and a 'winter law series' about the legislation and legislative processes that underpin the Department's work, which were typically attended by around 100 employees;

â¢ reporting the outcomes of Executive Roundtable meetings on the intranet;

â¢ briefings for Executive Level 2 employees on their management responsibilities and other issues of interest;

â¢ briefings for all employees on employment conditions and financial management;

â¢ an annual senior executive conference;

â¢ a conference for Executive Level 2 employees every 18 months; and

â¢ instruction in the use of the Department's information technology tools.

The Department also participated in cross-departmental learning and development activities, including:

â¢ the Public Sector Management programme;

â¢ the Masters of Management programme, through the Australian National University; and

â¢ the Australian National University intern programme.

In addition, the Department maintained its staff development yearly allocation for each employee of $1000 and five days for learning and development activities.

The Department maintained its commitment to graduate recruitment with ten graduates and two internal staff participating in its graduate recruitment programme. The programme provides the Department with a pool of skilled graduates who develop a wide knowledge of the Department's activities.

228 Department of the Environment and Heritage Annual Report 2003-04

Management and accountability

The Department's Australian Antarctic Division placed greater emphasis on learning and development under its performance management system. In 2003-04, 90 per cent of head office employees had performance agreements. The Division's certified agreement and Australian Workplace Agreements promote access to training and development for all employees, and provides scope for managers to approve reimbursement of course fees under a Study Support Scheme.

In 2003-04, the Division directed significant training and development effort towards:

â¢ promoting leadership development opportunities such as the Leadership In Action programme; â¢ improving the Division's performance management capability, with particular emphasis on appropriate behaviours and personal accountability; â¢ awareness training about organisational values, codes and behaviours for both

Australian-based and Antarctic employees; â¢ a governance training programme with regular weekly sessions covering the broad range of responsibilities across the Division; â¢ programmed induction for groups and individuals at the Division's head office,

to address initial organisational requirements; and â¢ maintaining technical and professional skills and qualifications.

The Division continued to ensure that expeditionary employees are adequately prepared for working and living in the harsh Antarctic environment, and are equipped to deal with working and living as a member of an isolated Antarctic community.

During 2003-04, the Department also:

â¢ finalised its Workplace Diversity Strategy; and â¢ recognised significant individual contributions to the work of the Department in its Australia Day Awards.

Occupational health and safety

The Department continued its commitment to preserving the health, safety and welfare of its staff and any other persons at or near work sites. The Department's Canberra-based Occupational Health and Safety Committee continued to meet regularly to address a wide range of issues. Each of the mainland National Parks

and workplaces maintained other Occupational Health and Safety Committees to address site-specific issues. For more information, see Appendix 1.

229

Assets management

Fixed assets represent 90 per cent of the Department's total net assets. The majority of these are managed by the Department's Australian Antarctic Division.

In June 2004, the Australian Antarctic Division successfully completed a significant refurbishment and construction programme at its facilities in Kingston, Tasmania. The project included substantial new science facilities, a world leading krill aquarium and herbarium, improved workshop facilities, and more efficient workspaces for administrative and corporate functions. The project was completed ahead of time and within budget.

Major asset procurement in 2003-04 included the completion of the fitout of the Communication Centre in the John Gorton Building and an upgrade of the current Financial Management Information System.

The Department successfully converted the disused underground Communications Centre of the John Gorton Building to A-Grade office space for the Australian Greenhouse Office. The project resulted in a high quality working environment that has set new performance benchmarks for environmental performance and efficiency in energy consumption. Environmentally sustainable processes were integrated into the design concept and continue in the ongoing operation and management of the facility.

The Department began preparing a capital plan to address the significant long-term capital budget issues surrounding its current asset base. Among other things, this includes how to manage the replacement of existing assets and purchase of new assets.

In addition, the Department again put its policies into practice by maintaining the accreditation of its Environmental Management System to the ISO 14001 international standard. An independent audit of the Environmental Management System recommended ways in which the Department can further improve performance. See also the last section of Appendix 4.

Purchasing

The Department's purchasing activities are undertaken in accordance with the Commonwealth Procurement Guidelines and Best Practice Guidelines.

Current departmental purchasing benchmarks are as follows:

â¢ Up to $20: petty cash expenditure allowed for any one purchase.

â¢ Up to $2000: quotes are not required, but may be advisable if it is believed there is a possible material disparity between suppliers.

230 Department of the Environment and Heritage Annual Report 2003-04

Management and accountability

â¢ $2001-$5000: at least three competitive verbal quotes should be obtained.

â¢ $5001-$100 000: at least three competitive written quotes should be obtained. All requirements must be adequately specified. â¢ Over $100 000: open competition (see below) should be sought for all purchases.

Open competition should ensure transparency in the procurement process, including access to opportunities for potential suppliers. The Department should put effort and research into encouraging competition in order to get the best possible results from the market.

All purchases valued over $100 000 are subject to review by the Departmental Procurement Review Board, however if a Senior Executive Service decision-maker considers that a purchasing transaction below this threshold is particularly complex or controversial, then these instances should also be referred to the Procurement Review Board.

Information on endorsed supplier arrangements is available from the Department of Finance and Administration.

During the year, the Department's Procurement Review Board examined 31 submissions from the Canberra-based divisions for contracts over $100 000. The board ensured that all aspects of the Commonwealth procurement guidelines and the Department's procurement requirements were adequately met.

The Department's policy and procedures were reviewed and amended in relation to Regulation 10, in line with the Minister for Finance and Administration's amendment of delegations under the Financial Management and Accountability Regulations. The Department put in place a system to enable six-monthly reporting

to the Department of Finance and Administration about all projects requiring Regulation 10 authorisation.

The Department met the requirement to report on the Senate Order on Government Agency contracts. All contracts over $100 000 are listed at www.deh.gov.au/about/ contracts.

In May 2004, the Department commenced advertising open government business opportunities via AusTender, the Australian Government online system for notifying publicly available business opportunities. The Department also began to examine the possibility of electronically completing all procurement evaluations

over $100 000.

The Department continued to encourage suppliers to accept payments by electronic funds transfer. During 2003-04, 92.4 per cent of the total value of supplier payments was made electronically.

231

Consultants

For the purpose of this annual report a consultant is an individual, a partnership, or a corporation engaged to provide professional, independent and expert advice or services to the Department. In 2003-04, the Department let 335 consultancies, and spent $17629 million on consultancies. The consultants were engaged for specialist technical and professional skills. Details of consultancies, including

additional information on consultancies worth $10 000 or more, are -listed as part of the electronic version of this annual report available on the Internet at www.deh.gov.au/about/annual-report.

Competitive tendering and contracting

During 2003-04, the Department continued to source its internal audit and information and communications service delivery from external providers.

The Australian Antarctic Division completed a risk assessment across a broad range of functions. This assessment formed the basis for the development of business cases to identify opportunities for market testing, process re-engineering, or other business improvement strategies. Recognising the long-term benefit of implementing business improvement strategies, the Division appointed a Business Improvement Facilitator as a 'champion', adviser, consultant and coordinator for all business improvement activities.

Exempt contracts

During 2003-04, there were no standing offers or contracts exempted from being published in the Purchasing and Disposal Gazette.

Commonwealth Disability Strategy

The Commonwealth Disability Strategy is a strategic framework for inclusion of and participation by people with disabilities in Australian Government policies, programmes and services. In 2003-04, the Department began developing a Disability Action Plan to meet the needs of people with disabilities, in accordance with the strategy. The strategy requires the Department to report, in its annual

232 Department of the Environment and Heritage Annual Report 2003-04

Management and accountability

report, on its outcomes for people with disabilities against five core roles of government: policy adviser, regulator, purchaser, provider, and employer.

Policy adviser role

The Department delivers environmental policies and programmes in a manner that is free from discrimination and recognises and utilises the diversity of the Australian community. The Department has extensive web sites (www.deh.gov.au and www.aad.gov.au ) and a Community Information Unit to provide access to

information on the Department's activities. The Department's web site is maintained to meet the Australian Government Online standards that relate to access for people with disabilities (www.deh.gov.au/about/accessibility.html). For technical reasons and to meet some legal requirements, the Department's web site has a limited number of documents that cannot be provided in the preferred HTML format. In such cases, contact details have been provided for their supply in alternative formats.

Regulator role

The Department, including the Australian Antarctic Division, administers 34 Acts, together with associated regulations and subsidiary legal instruments (see Appendix 5). Legislation is accessible via the internet (www.deh.gov.au/ about/legislation.html), with additional fact sheets available on request from the Community Information Unit. Public notification of legislative decisions or changes

is made in the Australian Government Gazette, and (where required) on the Department's web site. The Department may respond to specific requests by fax, email or post.

Purchaser role

The Department's procurement policies are available on its web site (www.deh.gov.au/business/index.html). The procurement policies are consistent with the requirements of the Disability Discrimination Act 1992. The Department has complaints and grievance mechanisms in place.

Provider role

In the provider role, Parks Australia and the Land, Water and Coasts Division within the Department manage Commonwealth parks, reserves and protected areas including Kakadu, Uluu-Kata Tjuta, Booderee, Norfolk Island, Christmas Island, and Cocos Island National Parks. Access is provided to these parks and reserves for

233

tourism, recreation and commercial uses. Information regarding parks and reserves

is available in accessible formats on the Department's web site (www.deh.gov.au/ parks/commonwealth/index.html) and in hard copy from park management. Given the nature of the terrain, physical access to the terrestrial reserves varies for people with a disability.

Employer role

In the employer role, employment policies, procedures and practices of the Department comply with the requirements of the Disability Discrimination Act 1992. Recruitment information is available in electronic formats and contact details are provided should special assistance be required (www.deh.gov.au/ jobs). The principle of reasonable adjustment (accommodating the additional needs of a person who can perform the inherent requirements of a job, where reasonable—such as providing a large computer screen for a person with impaired vision) is applied within the Department. Learning and development programmes are accessible to employees with disabilities and, where appropriate, contain information on disability issues. Complaints and grievance mechanisms are in place and available to all employees.

234 Department of the Environment and Heritage Annual Report 2003-04

-a

Financial statements

FA F

A Australian National Audit Office

INDEPENDENT AUDIT REPORT To the Minister for the Environment and Heritage

Scone

The financial statements comprise:

â¢ Statement by the Chief Executive and Chief Finance Officer:

â¢ Statements of Financial Performance, Financial Position and Cash Flows;

â¢ Schedules of Commitments and Contingencies;

â¢ Schedule of Administered Items; and

â¢ Notes to and forming part of the Financial Statements

of the Department of the Environment and Heritage for the year ended 30 June 2004.

The Department of the Environment and Heritage's Chief Executive and Chief Financial Officer are responsible for the preparation and true and fair presentation of the financial statements in accordance with the Finance Minister's Orders. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates

inherent in the financial statements.

Audit approach

I have conducted an independent audit of the financial statements in order to express an opinion on them to you. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing and Assurance Standards, in order to provide reasonable assurance as to whether the financial statements are free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive, rather than conclusive, evidence. Therefore, an audit cannot guarantee that all material

misstatements have been detected.

While the effectiveness of management's internal controls over financial reporting was considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

I performed procedures to assess whether, in all material respects, the financial statements present fairly, in accordance with the Finance Minister's Orders made under the Financial Management

GPO Box 157 CANBERRA ACT 2601 Centenary Ho— 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fa, (02) 6203 7777

237

and Accountability Act 1997,

Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with my understanding of the Department of Environment and Heritage's financial position, and of its performance as represented by the statements of financial performance and cash flows.

The audit opinion is formed on the basis of these procedures, which included:

â¢ examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial statements; and

â¢ assessing the appropriateness of the accounting policies and disclosures used, and the reasonableness of significant accounting estimates made by the Chief Executive and the Chief Finance Officer.

Independence

In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate Australian professional ethical pronouncements.

Audit Opinion

In my opinion, the financial statements:

(i) have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997 and applicable Accounting Standards; and

(ii) give a true and fair view, of the matters required by applicable Accounting Standards and other mandatory professional reporting requirements in Australia, and the Finance Minister's Orders, of the financial position of the Department of the Environment and Heritage as at 30 June 2004, and of its performance and cash flows for the year then ended.

Australian National Audit Office

Mashelle Parrett Executive Director

Delegate of the Auditor-General Canberra

26 August 2004

238 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE STATEMENT BY THE CHIEF EXECUTIVE AND CHIEF FINANCE OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2004 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Ministers Orders made under the Financial Management and

Accountability Act 1997.

Signed Signed

David Borthwick Stephen Mayes

Chief Executive Chief Finance Officer

24 August 2004 24 August 2004

239

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 30 June 2004 2004 2003

Notes $'OOO $000

Revenues from ordinary activities Revenues from Government 41 224,387 298,862

Goods and services 4.2 33,760 30,966

Interest 4.3 0 994

Revenue from sale of assets 4.4 20 442

Reversal of previous asset write-downs 4.5 8 2

Other revenues 4.6 4,020 5,401

Revenues from ordinary activities 262,195 336,667

Expenses from ordinary activities (excluding borrowing costs expense) Employees 5.1 97,744 111,118

Suppliers 5.2 87,424 96,138

Grants 5.3 47,736 64,764

Depreciation and amortisation 5.4 21,752 31,879

Write-down of assets 5.5 1,131 702

Value of assets sold 4.4 444 2,293

Other expenses 5.6 93 496

Expenses from ordinary activities (excluding borrowing costs expense) 256,324 307,390

Borrowing costs expense 6 233 246

Net surplus from ordinary activities 5,638 29,031

Net credit I (debit) to asset revaluation reserve 0 (2,958)

Total revenues, expenses and valuation adjustments recognised directly in equity 0 (2,958)

Total changes in equity other than those resulting from transactions with the Australian Government as owner 5,638 26,073

The above Statement should be read in conjunction with the accompanying notes.

240 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE STATEMENT OF FINANCIAL POSITION as at 30 June 2004 2004 2003

Notes $000 $000

ASSETS Financial assets Cash Receivables

Accrued revenues Other financial assets Total financial assets Non-financial assets

7.1 6,928 4,249

7.2 14,609 25,852

7.3 2,823 3,172

23 30

24,383 33,303

Land and buildings 8.1/8.4 199,393 200,074

Infrastructure, plant and equipment 8.2/8.4 102,396 103,384

Intangibles 8.3/8.4 7,580 4,875

Inventories 8.5 9,101 7,990

Other non-financial assets 8.6 646 2,397

Total non-financial assets 319,116 318,720

Total Assets 343,499 352,023

LIABILITIES Interest bearing liabilities Loans 9.1 3,974 4,831

Leases 9.2 0 39

Other interest bearing liabilities 9.3 704 807

Total interest bearing liabilities 4,678 5,677

Provisions Employees 10.1 33,976 30.914

Other provisions 10.2 37,040 42,997

Total provisions 71,016 73,911

Payables Suppliers 11.1 6,452 8,109

Grants 11.2 767 1,952

Other payables 11.3 2,568 1,820

Total papables 9,787 11,881

Total Liabilities $5,481 91,469

NET ASSETS

258,018 260,554

EQUITY Contributed equity Reserves Retained accumulated surplus TOTAL EQUITY

Current assets Non-current assets Current liabilities Non-current liabilities

12.1 6,021 14,446

12.1 129,515 129,008

12.1 122,482 117,100

258,018 260,554

30,694 40,787

312,805 311,236 27,294 27,781

58,187 63,688

The above Statement should be read in conjunction with the accompanying notes.

241

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE

STATEMENT OF CASH FLOWS for the year ended 30 June 2004

2004 2003

Notes $'OOO $000

OPERATING ACTIVITIES Cash received Appropriations 224,694 294,749

Goods and services 35,369 30,284

Interest 0 953

Cash transferred from the OPA 9,252 0

Other cash received from operating activities 3,860 699

GST received from the ATO 8,844 12,301

Total cash received 282,019 338,986

Cash used Employees 96,910 115,184

Suppliers 101,256 109,766

Grants 48,920 65,277

Cash transferred to the OPA 0 19,046

Borrowing costs 242 344

Other cash used for operating activities 0 31

GST paid to the ATO 4,628 499

Total cash used 251,956 310,147

Net cash from operating activities 13.2 30,063 28,839

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 20 442

Total cash received 20 442

Cash used Purchase of property, plant and equipment 15,728 41,667

Purchase of intangibles 3,032 1,993

Total cash used 18,760 43,660

Net cash used by investing activities (18,740) (43,218)

FINANCING ACTIVITIES Cash used Repayment of debt 960 25

Capital use charge paid 0 30,917

Other cash used for financing activities 7,684 25,144

Total cash used 8,644 56,086

Net cash used by financing activities (8,644) (56,086)

Net increase / (decrease) in cash held 2,679 (70,465)

Cash at the beginning of the reporting period 4,249 74,714

Cash at the end of the reporting period 7.1 6,928 4,249

The above Statement should be read in conjunction with the accompanying notes.

242 Department of the Environment and Heritage Annual Report 2003-04

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGE SCHEDULE OF COMMITMENTS as at 30 June 2004 2004 2003

1'OOO $000

BY TYPE Capital commitments (I) Land and buildings 6 133

Infrastructure, plant and equipment 275 2,160

Intangibles 628 139

Total capital commitments 909 2,432

Other commitments Operating leases (2) 183,341 141,733

Project commitments (3) 11,749 13,530

Other commitments (4) 3,848 8,885

Total other commitments 198,938 164,148

Commitments receivable 18,339 14,848

Net commitments 881,508 151,732

BY MATURITY

Capital commitments One year or less 909 2,382

From one to five years 0 50

Total capital commitments by maturity 909 2,432

Operating lease commitments One year or less 35,999 43,246

From one to five years 97,564 64,395

Over five years 49,778 34,092

Total operating lease commitments by maturity 183,341 141,733

Project commitments One year or less From one to five years Total project commitments by maturity 11,749 13,530

Other commitments One year or less From one to five years Total other commitments by maturity

3,646 8,852

202 33

3,848 8,885

Commitments receivable Net commitments by maturity

18,339 14,848

181,508 151,732

243

10,372 7,940

1,377 5,590

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE

SCHEDULE OF COMMITMENTS (continued) as at 30 June 2004

(I) Capital commitments relate to contractual payments for new assets and assets under Construction.

(2) Operating leases are effectively non-cancellable and include:

(3) Project commitments relate to grant amounts payable under agreements in respect of which the grantee has yet to complete the milestone required under the agreement.

(4) Other commitments relate to contracts for goods and services in respect of which the contracted party has yet to provide the goods and services required under the contract,

Note: All commitments are GST inclusive where relevant.

The above Schedule should be read in conjunction with the accompanying notes.

Nature of lease General description of/easing arrangements Leases for office * Lease payments are subject to increases in accordance with accommodation terms as negotiated under the lease. * The Department's leases for office accommodation each have

options for renewal. Future options not yet exercised are not included as commitments. Leases for transportation * Lease payments are subject to increases in accordance with to and within the terms as negotiated under the lease. Antarctic Territory * The transportation leases generally have options for renewal.

Future options not yet exercised are not included as commitments. Leases for support * Lease payments are subject to increases in accordance with facilities for Antarctic terms as negotiated under the lease. operations * The facility leases each have options for renewal. Future options

not yet exercised are not included as commitments.

Lease of computer * The lessor provides all computer equipment and software equipment designated as necessary in the supply contract for five years plus for two further two year periods at the Department's option. The Department is currently within the initial period of the initial

period of the lease. * The equipment has on average a useful life of three years.

244 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE SCHEDULE OF ADMINISTERED ITEMS 2004 2003

Notes $000 $000

Revenues Administered on behalf of Government for the year ended 30 June 2004

Non-taxation revenue Revenue from government 19 42 40

Goods and services 19 2,700 2,773

Interest 19 6 6

Reversal of previous asset write-downs 19 0 19

Other sources of non-taxation revenue 19 8,304 9,020

Total Revenues Administered on behalf of Government 11,052 11,858

Expenses Administered on behalf of Government for the year ended 30 June 2004

Grants 20 220,168 210,839

Suppliers 20 46,311 46,975

Write-down and impairment of assets 20 124 294

Other expenses administered on behalf of Government 20 938 407

Total Expenses Administered on behalf of Government 267,541 258,515

245

DEPARTMENT OF THE ENVIRONMENT

AND HERITAGE

SCHEDULE OF ADMINISTERED ITEMS (continued) 2004 2003

Notes $'OOO $000

Assets Administered on behalf of Government as at 30 June 2004

Financial assets

Cash 21 1 1

Receivables 21 6,812 3,240

Investments 21 118,301 114,136

Accrued revenues 21 441 151

Totalfinancial assets 125,555 117,528

Non-financial assets Land and buildings 21 4,750 4,750

Infrastructure, plant and equipment 21 1,271 1,271

Inventories 21 392 329

Other non-financial assets 21 74 131

Total non-financial assets 6,487 6,481

Total Assets Administered on behalf of Government 132,042 124,009

Liabilities Administered on behalf of Government as at 30 June 2004

Interest Bearing Liabilities Overdraft 341 0

Total interest bearing liabilities 341 0

Payables Suppliers 22 3,027 1,586

Grants 22 32,720 11,914

Other payables 22 7,343 2,818

Total payables 43,090 16,318

Total Liabilities Administered on behalf of Government 43,431 16,318

Net Assets Administered on behalf of Government 23 88,611 107,691

Current assets 7,720 3,805

Non-current assets 124,322 120,204

Current liabilities 43,431 16,318

Non-current liabilities 0 0

246 Department of the Environment and Heritage Annual Report 2003-04

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGE SCHEDULE OF ADMINISTERED ITEMS (continued) 2004 2003

Notes 51000 $000

Administered Cash Flows for the year ended30 June 2004

OPERATING ACTIVITIES Cash received Rendering of services 2,617 4,516

Interest 9 7

Other cash received from operating activities 7,391 8,888

GST received from ATO 8,237 6,785

Total cash received 88,254 20,196

Cash used Suppliers 45,176 46,472

Grant payments 198,636 206,414

Other cash used by operating activities 73 406

GST paid to ATO 7,917 317

Total cash used 251,802 253,609

Net cash used by operating activities (233,548) (233,413)

INVESTING ACTIVITIES Cash received Repayment of advances 6 6

Total each received 6 6

Cash used Purchase of property, plant and equipment 0 4,750

Total cash used 0 4,750

Net cash from (used by) investing activities 6 (4,744)

FINANCING ACTIVITIES Cash received Capital injection 0 4,750

Total cash received 0 4,750

Net cash from financing activities 0 4,750

Net increase / (decrease) in cash held (233,542) (233,407)

Cash at beginning of reporting period 1 24

Cash from Official Public Account for: - Appropriations (including GST appropriation) 16,839 16,312

- Special Accounts 227,551 240,410

244,390 256,722

Cash to the Official Public Account for: - Appropriations (including return of (1ST appropriation) - Special Accounts - Other cash to the Official Public Account

Cash at end of reporting period

9,720 7,152

1,469 5,317

0 10,869

11,189 23,338

(340) 1

247

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE

SCHEDULE OF ADMINISTERED ITEMS (continued) 2004 2003

Notes $'OOO 8000

Administered Commitments as at 30 June 2004

BY TYPE Other commitments Project commitments (1) 46,773 39,548

Program commitments (2) 7,842 4,713

Total other com,nigments 54,615 44,261

Commitments receivable 3,364 1,511

Net administered commitments 51,251 42,750

BY MATURITY Other commitments One year or less 42,659 37,542

From one to five years 11,956 6,719

Total other commitments by maturity 54,615 44,261

Commitments receivable 3,364 1,511

Net administered commitments 51,251 42,750

(I) Project commitments relate to grant amounts payable under agreements in respect of which the grantee has yet to complete the milestone required under the agreement.

(2) Program commitments relate to contracts for goods and services in respect of which the contracted party has yet to provide the goods and services required under the contract.

Note: All commitments are GST inclusive where relevant.

Statement of Activities Administered on Behalf of Government

The major administered activities of the Department are directed towards achieving the outcomes described in Note I of the Financial Statements. The major financial activities are as follows: contribute to the restoration of St Paul's and St George's Cathedrals; â¢ fund on a matching basis the conservation of rural and regional historic hotels; â¢ provide participatory grants to support the Australian Biological Resources Study; â¢ contribute to the development of sewerage schemes for Boat Harbour and Sisters Beach; â¢ provide financial assistance (from the Natural Heritage Trust of Australia Account) to conserve,

repair and replenish Australia's natural capital infrastructure with a focus on specific objectives of Biodiversity Conservation, Sustainable Use of Natural Resources, and Community Capacity Building and Institutional Change.

Details of planned activities for the year can be found in the Department's Portfolio Budget and Portfolio Additional Estimates Statements for 2003-04 which have been tabled in the Parliament.

This Schedule should be read in conjunction with the accompanying notes.

248 Department of the Environment and Heritage Annual Report 2003-04

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGE NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2004

Note Description Summary of Significant Accounting Policies 2 Adoption of International Accounting Standards from 2005 3 Events Occurring after Reporting Date 4 Operating Revenues

5 Operating Expenses

6 Borrowing Cost Expenses 7 Financial Assets

8 Non-financial Assets

9 Interest Bearing Liabilities 10 Provisions

11 Payables

12 Equity

13 Cash Flow Reconciliation 14 Contingent Liabilities and Assets 15 Executive Remuneration 16 Remuneration of Auditors 17 Average Staffing Levels 18 Financial Instruments 19 Revenues Administered on Behalf of Government 20 Expenses Administered on Behalf of Government 21 Assets Administered on Behalf of Government 22 Liabilities Administered on Behalf of Government 23 Administered Reconciliation Table 24 Administered Contingent Liabilities and Assets 25 Administered Investments 26 Administered Financial Instruments 27 Appropriations

28 Specific Payment Disclosures 29 Reporting of Outcomes

249

I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 Objectives of the Department

The objectives of the Department are to: advise on and implement policies and programs for the protection and conservation of the environment while ensuring its use is ecologically sustainable; and administer the Australian Antarctic Territory and the Territory of Heard and McDonald Islands, enhance Australia's role in the Antarctic Treaty System, conduct and support strategic research, and protect the Antarctic environment.

The Department is structured to meet two outcomes.

Outcome 1 â¢ The environment, especially those aspects that are matters of national environmental significance, is protected and conserved.

Outcome 2 â¢ Australia's interests in Antarctica are advanced.

The following provides a representation of the individual outputs under each of the 2 outcomes.

Outcome I 1.1 Atmosphere â¢ 1.2 Biodiversity â¢ 1.3 Coast and Oceans â¢ 1.4 Environmental Assessments and Approvals â¢ 1.5 Heritage â¢ 1.6 Industry â¢ 1.7 Inland Waters â¢ 1.8 Land Management â¢ 1.9 Parks and Reserves

Outcome 2 â¢ 2.1 Influence in Antarctic Treaty System â¢ 2.2 Protection of Antarctic Environment â¢ 2.3 Understanding Global Climate System â¢ 2.4 Undertake Scientific work of practical, economic or national significance

250 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

1.2 Basis of Accounting

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report. The financial statements have been prepared in accordance with: â¢ Finance Ministers Orders (being the Financial Management and Accountability (Financial

Statements for reporting periods ending on or after 30 June 2004) Orders); â¢ Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and â¢ Consensus Views of the Urgent Issues Group.

The financial statements have also been prepared having regard to the Explanatory Notes to Schedule I of the Finance Minister's Orders and Finance Briefs issued by the Department of Finance and Administration.

The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets, which, as noted, are at valuation.. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that the future economic benefits will flow and the amounts of the assets and liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard.

Assets and liabilities that are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 14).

Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

The continued existence of the Department in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament for the Department's administration and programs.

Administered revenues, expenses, assets, liabilities and cash flows reported in the Schedule of Administered Items and related Notes are accounted for on the same basis and using the same policies as for agency items, except where otherwise stated at Note 1.19.

251

1.3 Changes in Accounting Policy

The accounting policies used in the preparation of these financial statements are consistent with those used in 2002-2003.

In 2003-2004, the impairment test provisions of the Finance Minister's Orders have been extended to cover non-current assets carried at deprival values. There were no indications of impairment for these assets.

1.4 Agency and Administered Items

Activities of the Department are classified as either agency or administered. Agency activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department on behalf of the Government of items controlled or incurred by the Government.

The purpose of the separation of agency and administered items is to enable the assessment of administrative efficiency of the Department in providing goods and services.

1.5 Principles of Consolidation (Natural Heritage Trust of Australia Account)

Subsection 43(3) of the Natural Heritage Trust ofAustralia Act 1997 requires financial statements to be prepared for the Natural Heritage Trust of Australia Account (NHT). Reporting by the NHT reflects the NHT as a separate reporting entity, with all transactions between the NHT and parties outside the NHT being reported.

Reporting of the NHT as part of the Department's administered disclosure in these financial statements takes account of the treatment of administered items as a whole. Under the administered presentation rules (Schedule I of the Finance Minister's Orders) administered disclosures do not include amounts available to entities for administered purposes but which are not held in the Department's administered bank account.

The financial statements of the NHT are consolidated into the Department's financial statements. Where accounting policies and disclosure requirements differ between the NHT and the Department adjustments are made on consolidation to bring any dissimilar accounting policies and disclosures into alignment.

1.6 Revenue

(a) Revenues from Government

Departmental outputs appropriations for the year (less any current year savings and reductions) are recognised as revenue, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

252 Department of the Environment and Heritage Annual Report 2003-04

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(b) Resources Received Free of charge

Services received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition are recognised at their fair value when the asset qualifies for recognition, unless received from another Government agency as a consequence of a restructuring of administrative arrangements - refer to Note 1.7(b).

Revenue from the sale of goods is recognised upon delivery of goods to customers.

Revenue from the rendering of a service is recognised by reference to the stage of completion of contracts or other agreements to provide services. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the

transaction.

Receivables for goods and services are recognised at the nominal amounts due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is judged to be less rather than more likely.

Interest revenue is recognised on a time proportional basis taking into account the effective yield on the relevant financial asset.

Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

(a) Equity injections

Amounts of appropriations designated as "equity injections for a year (less any savings offered up in Portfolio Additional Estimates Statements) are recognised directly in Contributed Equity in that year.

(b) Restructuring ofAdministrative Arrangements

Net assets received from or relinquished to another Commonwealth agency or authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

253

1.8 Employee Benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured at their nominal amounts. Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of tervices provided by employees up to the reporting date.

(a) Leave

The liability for employees entitlements includes provision for annual leave, tong service leave and the superannuation on-cost related to leave. No provision has been made for sick leave as all sick leave is non vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees remuneration, including the Department's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2002. The actuary indicated that a further actuarial assessment would not be required for 3 years. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

(b) Separation and Redundancy

Provision is made for separation and redundancy payments in circumstances where the Department has invited an excess employee to accept voluntary redundancy, the employee has accepted the offer, and a reliable estimate of the amount of the payments can be determined.

Staff of the Department contribute to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. The liability for their superannuation benefits is recognised in the financial statements of the Commonwealth and is settled by the Commonwealth in due course.

254 Department of the Environment and Heritage Annual Report 2003-04

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The Department makes employer contributions to the Commonwealth at rates determined by an actuary to be sufficient to meet the cost to the Commonwealth of the superannuation entitlements of the Departments employees.

The liability for superannuation recognised as at 30 June represent outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets and operating leases under which the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased assets.

A lease incentive taking the form of a rent holiday is recognised as a liability. This liability is reduced by allocating lease payments between rental expense and reduction of the liability.

1.10 Borrowing Cost

All borrowing costs are expensed as incurred.

1.11 Cash

Cash means notes, coins and cheques held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount.

1.12 Other Financial Instruments

(a) Loans

Government loans are carried at the balance yet to be repaid. Interest is expensed as it accrues unless it is directly attributable to a qualifying asset.

255

(b)

Trade Creditors

Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Contingent liabilities and assets are not recognised in the Statement of Financial Position but are discussed in the relevant schedules and note*. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Remote contingencies are part of this disclosure. Where settlement becomes probable, a liability or asset is recognised. A liability or asset is recognised when its existence is confirmed by a future event, settlement becomes probable or reliable measurement becomes possible.

1.13 Property, plant and equipment

(a) Acquisition ofAssets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency's accounts immediately prior to the restructuring.

(b) Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition. All items or components which form an integral part of a lt asset are recognised as a single functional asset.

Land, buildings, plant and equipment are carried at valuation. Revaluations undertaken up to 30 June 2002 were done on a deprival basis, revaluations since that date are at fair value. This change in accounting policy is required by Australian Accounting Standard AASB 1041 Revaluation of Non-Current Assets.

Assets which are surplus to requirements are measured at their net realisable value.

256 Department of the Environment and Heritage Annual Report 2003-04

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Deprival values for each class of asset are determined as follows.

â¢ Land â¢ Buildings â¢ Leasehold improvements â¢ Plant and equipment

- Market selling price - Depreciated replacement cost - Depreciated replacement cost - Depreciated replacement Cost

Land, buildings, plant and equipment are each revalued progressively in successive five-year cycles. All current cycles commenced on 1 July 1999 and finish on 30 June 2004. These assets are each revalued progressively on a geographical basis. Assets in each class acquired after the commencement of a progressive revaluation cycle are not captured by the progressive revaluation then in progress.

The Finance Minister's Orders require that all property, plant and equipment assets be measured at up-to-date fair values from 30 June 2005 onwards. The current year is therefore the last year in which the Department will undertake progressive revaluations.

All valuations are conducted by an independent qualified valuer.

(d) Depreciation and Amortisation

Property, plant and equipment is depreciated to its estimated residual value on a straight line basis over the expected useful life of the asset to the Department. Leasehold improvements are amortised on a straight line basis over the estimated useful life of the improvement or the unexpired period of the lease, whichever is the shorter.

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.

Depreciation./amortisation rates applying to each class of depreciable asset are based on the following useful lives: 2004 â¢ Buildings 3 to 50 years

â¢ Leasehold improvements lease term

â¢ Plant and equipment 2 to 50 years

2003

3 to 50 years lease term 2 to 50 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 5.4.

(e) Impairment of Non-current Assets

Non-current assets carried at cost or deprival value, which are not held to generate net cash inflows, have been assessed for indications of impairment. Where indications of impairment exist, the carrying amount of the asset is compared to the higher of its net selling price and depreciated replacement cost and is written down as at the current reporting date.

257

All land, buildings, plant and equipment assets were assessed for impairment at 30 June 2004.

None were found to be impaired (2003 none).

1.14 Intangible Assets

The Departments intangibles comprise internally developed software and licences. These assets are carried at cost.

All software and licences are recognised at cost in the Statement of Financial Position, except for items costing less than $10,000, which are expensed in the year of acquisition.

All software assets were assessed for indications of impairment as at 30 June 2004. None were found to be impaired.

Software is amortised on a straight-line basis over its anticipated useful life.

The useful lives of the Department's software is 3 to 17 years (2002-2003: 3 to 17 years).

1.15 Inventories

Inventories held for resale are valued at the lower of cost and net realisable value. Inventories not held for resale are valued at cost, or estimated replacement cost, unless they are no longer required in which case they are valued at net realisable value. Costs have been assigned to inventory quantities on hand at balance date using the first in first out or average cost bases.

1.16 National }Ialon Bank

The Commonwealth operates the National Halon Bank which maintains sufficient stock of halon to meet Australia's essential use needs to 2030 and also collects, decants, recycles and destroys surplus halon. The stock of halon (an asset) and the future costs to destroy surplus halon (a liability) are not recognised as they can not be reliably measured and or valued.

1.17 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material.

1.18 Insurance

The Department has insured for risks through the Government's insurable risk managed fund called 'Comcover Workers compensation is insured through the Government's 'Comcare Australia'.

258 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

1.19 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for agency items, including the application to the greatest extent possible of Accounting Standards, Accounting Interpretations and UIG Consensus Views.

Administered Cash Transfers to and from Official Public Account

Administered appropriations received or receivable from the Official Public Account (OPA) are not reported as administered revenues or assets respectively. Similarly, receipts transferred or transferable to the OPA are not reported as administered expenses or payables. These transactions or balances are internal to the administered entity.

These transfers of cash are reported as administered (operating) cash flows and in the Administered Reconciliation Table in Note 23.

Accounting policies which are relevant to administered activities only of the Department are disclosed below.

(a) Revenue

All administered revenues are revenues relating to the core operating activities performed by the Department on behalf of the Commonwealth.

Administered fee revenue is recognised when access occurs. Administered fines are recognised in the period in which the breach occurs.

(b) Grants

The Department administers a number of diverse grant schemes on behalf of the Government.

Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied. A commitment is recorded when the Government has a binding agreement to make the grants but services have not been performed or criteria satisfied.

Administered investment in controlled entities are not consolidated because their consolidation is relevant at the Whole of Government level.

Administered investments are recognised on the cost basis, adjusted for any subsequent capital injections or withdrawals and for any impairment losses.

259

(d)

Land and Buildings

The Department received appropriation of $4350 million in 2002-2003 for the purchase of Macquarie Lightstation and Snapper Island from the Department of Finance and Administration The assets were acquired in 2002-2003 and will remain with the Department until such time as they are vested to the Sydney Harbour Federation Trust (expected to be in 2004-2005) Due to the long life of the assets the annual depreciaiton charge is not material

2 ADOPTION OF INTERNATIONAL ACCOUNTING STANDARDS FROM 2005

The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply from 2005-2006. The new standards are the AASB Equivalents to International Financial Reporting Standards (IFRS) which are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-2006 but continue to apply in the meantime.

The purpose of issuing AASB Equivalents to lFRSs is to enable Australian entities reporting under the Corporations Act 2001 to be able to more readily access overseas capital markets by preparing their financial reports according to accounting standards more widely used overseas.

For-profit entities complying fully with the AASB Equivalents will be able to make an explicit and unreserved statement of compliance with IFRSs and as well with the AASB Equivalents.

It is expected that the Finance Minister will continue to require compliance with the Accounting Standards issued by the AASB, including the AASB Equivalents to IFRS, in his Orders for the Preparation of Agency financial statements for 2005-2006 and beyond.

The AASB Equivalents contain additional provisions which will apply to not-for-profit entities, including Australian Government agencies. Some of these provisions are in conflict with the IFRSs and therefore the Department will only be able to assert compliance with the AASB Equivalents to IFRSs.

Existing AASB standards that have no IFRS equivalent will continue to apply, including in particular AAS 29 Financial Reporting by Government Departments.

AASB 1047 Disclosing the Impacts ofAdopting Australian Equivalents to International Financial Reporting Standards requires entities to disclose, in respect of annual or interim reporting periods ending on or after 30 June 2004:

â¢ an explanation of how the transition to Australian equivalents to International Financial Reporting Standards (IFRS) is being managed; and â¢ a narrative explanation of the key differences in accounting policies that are expected to arise from adopting Australian equivalents to IFRSs.

The following disclosures address these requirements.

260 Department of the Environment and Heritage Annual Report 2003-04

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Management of Transition to Australian Equivalents to IFRSs

The Department will develop a plan for the implementation of Australian equivalents of IFRSs by 31 August 2004. The plan will then be approved by the Departments Audit Committee. Review of progress against the plan will be a standing agenda item for Audit Committee meetings.

The Department will review AASB Standards when they are finalised and placed on the AASB web site. Issues relevant to the Department will be identified and an assessment made on the need for specialist advice.

Departmental accounting policies will be fully reviewed, taking into account Australian equivalents on IFRSs and relevant Finance Briefs issued by the Department of Finance. Revised accounting policies to take effect from 1 July 2005, with retrospective restatement of comparative information, will be endorsed by the Audit Committee.

Preparation of an opening balance sheet required by AASB 1 First Time Adoption of Australian Equivalents of International Financial Reporting Standards will commence early in the 2004-2005 financial year and should be completed by 15 September 2004. The reconciliation of equity as at the 1 July 2004 should be completed by 30 September 2004.

The Departments financial management system may need to be modified to provide regular monthly reporting during 2004-05 under both current Australian Accounting Standards and Australian equivalents to IFRSs. Procedures will be revised to capture the data necessary for reporting under Australian equivalents to IFRSs.

Key financial management staff have briefed on Australian equivalents to IFRSs. All financial management staff will receive training on the changes resulting from the introduction of Australian equivalents to IFRSs over the period October to December 2004.

Major Changes in Accounting Policies

Changes in accounting policies under AASB Equivalents are applied retrospectively, ie as if they had always applied. This rule means that a balance sheet prepared under the AASB Equivalents must be made as at 1 July 2004, except as permitted in particular circunitances by AASB First-time Adoption ofAustralian Equivalents to International Financial Reporting Standards. This will enable the 2005-2006 financial statements to report comparatives under

the AASB Equivalents also.

Changes to major accounting policies are discussed in the following paragraphs.

Property, plant and equipment

Property, plant and equipment is valued at cost or deprival value. To comply with the anticipated AASB 116 Property Plant and Equipment requirement that property, plant and equipment assets be measured at fair value or historical cost, all property, plant and equipment assets will be revalued to fair value on 1 July 2004. These revalued amounts will constitute the carrying amounts of

property, plant and equipment assets in the opening balance sheet prepared as at 1 July 2004.

261

Intangible assets

Intangible assets are currently measured on the cost basis under AASB 1041 Revaluation of Non-Current Assets. However, the carrying amounts of some of these assets include amounts arising from revaluations in the years before the cost basis was adopted. Consistent with AASB 138 Intangible Assets, all amounts arising from revaluation of intangible assets will be reversed against equity at the date of transition to Australian equivalents to IFRSs.

Impairment of non-current assets

Non-current assets that are surplus to requirements are currently measured at their net realisable value. Under AASB 5 Assets Heldfor Sale and Discontinued Operations, assets that meet the 'held for sale' criteria under that Standard will be measured at the lower of their carrying amount and their fair value less costs to sell. Any write-downs under this Standard will be recognised as an expense. Assets will cease to be depreciated while they are held for sale.

Disposal of non-current assets

Proceeds from the disposal of non-current assets are currently recognised as revenue and the carrying amounts of the asset disposed of are recognised as an expense. Under Australian equivalents to lFRSs, the net of these amounts will be recognised as a gain or loss in the Income Statement.

Inventory

Inventories not held for resale are currently valued at cost, unless they are no longer required in which case they are valued at net realisable value. Under AASB 102 Inventories, inventories not held for sale will be measured at the lower of cost and current replacement cost.

Employee Benefits

The provision for long service leave is measured at the present value of estimated future cash outflows using market yields as at the reporting date on national government bonds.

Under the new AASB Equivalent standard, the same discount rate will be used unless there is a market in high quality corporate bonds, in which case the market yield on such bonds must be used.

3 EVENTS OCCURRING AVER BALANCE DATE

There are no known events occurring after balance date that could impact on the financial statements.

262 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

$1000 s'000

4 OPERATING REVENUES

4.1 Revenues from Government

Appropriations for outputs 223,752 298,262

Resources received free of charge - government 370 360

Assets received free of charge - government 265 240

Total revenues from government 224,387 298,862

4.2 Goods and Services

Goods 1,272 991

Services 32,488 29,975

Total sales of goods and services 33,760 30,966

Provision of goods to: - Related entities 0 143

- External entities 1,272 848

Total sales of goods 1,272 991

Rendering of services to: - Related entities 26,802 21,327

- External entities 5,686 8,648

Total rendering of services 32,488 29,975

4.3 Interest Revenue

Interest on deposits 0 994

263

2004

2003

$000 $000

4.4 Net Gains from Sale of Assets

Non-financial assets Land and buildings Net book value of assets disposed 0 (892)

Net loss from disposal of land and buildings 0 (892)

Infrastructure, plant and equipment Proceeds from disposal 20 442

Net book value of assets disposed (444) (1,140)

Write-offs 0 (87)

Net loss from disposal of infrastructure, plant and equipment (424) (785)

Intangibles Write-offs 0 (174)

Net loss from disposal of intangibles 0 (174)

Total proceeds from disposals 20 442

Total value of assets disposed (444) (2,032)

Total write-offs 0 (261)

Total net loss from disposal of assets (424) (1,851)

4.5 Reversal of previous asset write-downs

Financial assets Doubtful debts received - receivables

8 2

4.6 Other Revenues

Collections, scientific and other assets of the Australian Antarctic Division recognised for the first time 1,710 2,784

Write-down of provisions and payables 1,172 1,542

Repayments of prior years expenditure 0 505

Compensation revenue 0 97

Property, plant and equipment assets recognised for first time 252 15

Grants received 236 3

Miscellaneous 650 455

Total other revenues 4,020 5,401

264 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

$'OOO 8000

5 OPERATING EXPENSES

5.1 Employee Expenses

Wages and salary 70,644 80,936

Superannuation 14,024 14,108

Leave and other entitlements 10,074 11,272

Separation and redundancies 1,155 2,433

Other employee expenses 349 878

Total employee benefits expense 96,246 109,627

Workers compensation premiums 1,498 1,491

Total employee expenses 97,744 111,118

5.2 Suppliers Expenses

Goods from related entities 0 114

Goods from external entities 9,785 7,739

Services from related entities 6,147 17,964

Services from external entities 45,430 32,302

Operating lease rentals* 26,062 38,019

Total suppliers expense 87,424 96,138

* These comprise minimum lease payments only.

5.3 Grants

Other sectors in the Commonwealth* 35,705 46,471

State and Territory governments 4,995 5,725

Local governments 2,247 5,680

Non-profit institutions 2,459 3,355

Individuals 556 1,162

Profit making entities 98 891

Overseas 964 767

Universities 712 713

Total grants 47,736 64,764

* Includes payment to the Director of National Parks of $35,552,000 (2003: 845,916,000).

265

2004

2003

51000 $'OOO

5.4 Depreciation and Amortisation

Depreciation Other infrastructure, plant and equipment 12,287 16,224

Buildings 8,353 13,208

Total depreciation 20,640 29,432

Amortisation Intangibles - computer software 1,092 2,387

Plant and equipment held under finance lease 0 47

Intangibles- other 20 13

Total amortisation 1,112 2,447

Total depreciation and amortisation 21,752 31,879

The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable asset are as follows:

Plant and equipment 12,287 16,271

Buildings 8,353 13,208

Internally developed software 821 1,766

Purchased software 271 621

Other intangibles 20 13

Total depreciation and amortisation 21,752 31,879

No depreciation or amortisation was allocated to the carrying amounts of other assets.

266 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

5.5 Write-down of Assets

Financial assets Bad and doubtful debts expense

2004 2003

s1000 s'000

253 11

Non-financial assets Inventories - asset write-downs 58 357

Intangibles - asset write-downs 802 212

Land and buildings - asset write-downs 0 122

Infrastructure, plant and equipment 18 0

Total write-down of assets 1,131 702

5.6 Other Expenses

Miscellaneous 93 296

Contribution to World Meteorological Organisation 0 200

Total other expenses 93 496

6 BORROWING COSTS EXPENSE

Loans 233 242

Leases 0 4

Total borrowing costs expense 233 246

267

FINANCIAL ASSETS

7.1 Cash

2004 2003

$'OOO $000

Cash at bank Cash on hand Total cash

6,918 4,109

10 140

6,928 4,249

Under banking arrangements in place up to 1 July 2003, monies in the Department's bank accounts were swept into the Official Public account nightly and earned interest on the daily balance at rates based on money market call rates. Since 1 July 2003, no interest is earned on the Department's bank balances.

7.2 Receivables

Goods and services Provision for doubtful debts

1,632 1,991

(80) (23)

1,552 1,968

Appropriation receivable - undrawn 9,794 21,555

GST receivable from the Australian Taxation Office 2,377 2,104

Other receivables 886 225

Total receivables (net) 14,609 25,852

All receivables are current assets.

Receivables (gross) are aged as follows: Not overdue 13,296 25,486

Overdue by: Less than 30 days 1,129 253

30 to 60 days 32 16

60t090days 11 62

More than 90 days 221 58

Total receivables (gross) 14,689 25,875

The provision for doubtful debts is aged as follows: Not overdue Overdue by: More than 90 days 80 23

Total provision for doubtful debts 80 23

All receivables are with entities external to the Commonwealth. Credit terms are generally net 30 days (2003: 30 days). No interest rate applies and payments are generally one-off.

Appropriations receivable undrawn are appropriations controlled by the Department but held in Official Public Account under the Government's just-in-time drawdown arrangements.

268 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

$,000 S0o0

7.3 Accrued Revenues

Goods and services 2,823 3,072

GST 0 100 Total accrued revenues 2,823 3,172

All accrued revenues are current assets.

8 NON-FINANCIAL ASSETS

8.1 Land and Buildings

Land - at 1999-2004 valuation (deprival) 982 982

Total land 982 982

Buildings on land

- At cost 3,468 8,575

Accumulated depreciation (167) (271)

Work in progress - at cost 10,269 5,329

Total buildings on land at cost 13,570 13,633

- At 1999-2004 valuation (deprival) Accumulated depreciation Total buildings on land at valuation

207,114 199,275 (22,273) (13,816) 184,841 185,459

Total buildings on land 198,411 199,092

Total land and buildings (non-current) 199,393 200,074

All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note I. All revaluations have been conducted by an independent valuer, the Australian Valuation Office.

269

8.2 Infrastructure, Plant and Equipment

- At cost Accumulated depreciation Work in progress - at cost Total infrastructure, plant and equipment at cost

2004 2003

s1000 S'000

35,136 22,794

(7,032) (2,588) 10,090 4,456

38,194 24,662

- At 1999-2004 valuation (deprival) 82,664 89,668

-At Transferor valuation (refer Note 1.3(a)) 327 0

Accumulated depreciation (18,789) (10,946)

Total infrastructure, plant and equipment at valuation 64,202 78,722

Total Infrastructure, Plant and Equipment (non-current) 102,396 103,384

Plant and equipment under finance leases are subject to revaluation. The carrying amount is included in the valuation figures above and is separately disclosed in Note 8.4(c) below.

All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. All revaluations have been conducted by an independent valuer, the Australian Valuation Office.

8.3 Intangibles

- Purchased computer software 1,964 2,389

Accumulated amortisation (1,746) (1,643)

Work in progress 1,869 22

Total purchased computer software 2,087 768

- Internally developed computer software 10,415 7,933

Accumulated amortisation (6,096) (5,107)

Work in progress 1,007 1,234

Total internally developed computer software 5,326 4,060

- Patents, brand names and licences 852 712

Accumulated amortisation (685) (665)

Total patents, brand names and licences 167 47

Total Intangibles (non-current)

270 Department of the Environment and Heritage Annual Report 2003-04

7,580 4,875

51000

$000 $000 51000 $'OOO $'OOO S'OOO S'OOO Item

As at I July 2003

Gross book value Accumulated depreciation/amortisation

Net book value

982 213,179 214,161

0 (14,087) (14,087)

982 199,092 200,074

12,289 343,369

(7,415) (35,036)

4,874 308,333

116,919 (13,534)

103,385

11,577 (6,750)

4,827

712 (665)

151 3,434 22,498

0 1,219 1,567

(1,092) (20) (1,112) (21,752)

0 0 0 97

(539) 1 (824) (II) (835) (1,374)

Additions

by purchase

from restructure 0

Depreciation/amortisation expense

Other movements

Disposals

Other disposals and write-downs 0

(8,353)

) 0

7,672 7,672

11,392

348 0

(8,353) (12,287)

3,283

1,219

As at 30 June 2004

Gross book value

Accumulated depreciation/amortisation Net book value

982 220,851

0 (22,440)

982 198,411

16,107 366,157

(8,527) (56.788)

7,580 309,369

221,833

(22,440 199,393

128,217

(25,821) 102,396

15,255 (7,842) 7,413

852

(685) 167

8.4 Analysis of Property, Plant, Equipment, and Intangibles

8.4 (a) Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles Other Infrastructure, Buildings on Total Land Plant and Computer

Land Land and Buildings Equipment Software

Other Total

Intangibles Intangibles Total

suawes

eP UEU!

(a 0

8.4 (b) Assets at Valuation

Other

Infrastructure,

Total Land Plant and Computer Other Total

Land Buildings and Buildings Equipment Software Intangibles Intangibles Total

Item $000 $000 $'OOO $'OOO S'OOO $'OOO $'OOO $'oOo

As at 30 June 2004

Gross value 982 207,114 208,096 83,435 0 0 0 291,531

Accumulated depreciation/amortisation 0 (22,273) (22.273) (19,233) 0 0 0 (41,506)

Net book value 982 184,841 185 823 64,202 0 -0 0 250,025

As at 30 June 2003

Gross value 982 199,275 200,257 89,668

Accumulated depreciationlamorsisation 0 (13,816) (13,816) (10,946)

Net book value 982 185,459 186,441 78,722

0 0 289,925

0 0 (24,762)

0 0 265,163

8.4 (c) Assets held under Finance Lease

Other

Infrastructure,

Total Land Plant and Computer Other Total

Land Buildings and Buildings Equipment Software Intangibles Intangibles Total

Item s1000 $'000 $000 s'000 $'000 $'000 sâ¢000 s1000

As at 30 June 2004 Net book value 0 0 0 0 0 0 0 0

As at 30 June 2003 Gross value 0 0 0 190 0 0 0 190

Accumulated depreciation/amortisation 0 0 0 (182) 0 0 0 (182)

Net book vaW6 0 0 0 8 0 0 0 8

8.4 (d) Summary of Assets under construction

Item

Gross value as at 30 June 2004

Gross value as at 30 June 2003

Other

Infrastructure,

Total Land Plant and Computer Other Total

Buildings and Buildings Equipment Software Intangibles Intangibles Total

$000 $000 $000 $000 $'flOO $000 $'000

10,269 10,269 10,090 2,876 0 2,876 23,235

5,329 5,329 4,456 1,256 0 1,256 11,041

SUaWaPS

PP Ueu!

8.5 Inventories

2004 2003

$1000 $'OOO

Work in progress (cost) Finished goods (cost) Total Inventories held for sale

0 14

144 86

144 100

Work in progress (cost) 96 109

Finished goods (cost) 8,861 7,781

Provision for obsolescence Total Inventories not held for sale 8,957 7,890

Total inventories 9,101 7,990

Inventories are represented by: Current 5,666 5,087

Non-current 3,435 2,903

Total inventories 9,101 7,990

8.6 Other Non-financial Assets

Prepayments - suppliers Total other non-financial assets

646 2,397

All other non-financial assets are current assets.

274 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

S1000 S'000

9 INTEREST BEARING LIABILITIES

9.1 Loans

Loans from Government 3,974 4,831

Maturity schedule for loans: Payable: -Within one year 908 857

- In one to five years 3,066 3,974

Total loan liability 3,974 4,831

Loan liabilities are represented by: Current 908 857

Non-current 3,066 3,974

Total loan liability 3,974 4,831

The loan was issued in 1998-1999 and is repayable in annual installments ending in 2007-2008. The interest rate is subject to review each year based on the 10 year bond rate as at 30 June. The current interest rate is 6.03%.

9.2 Leases

Finance Lease Commitments Payable: - Within one year 0 44

Minimum lease payments 0 44

Future finance charges 0 (5)

Net lease liability 0 39

All finance lease commitments are current liabilities.

Finance leases existed in relation to minor office equipment assets. The leases were non-cancellable and for fixed terms averaging 4 years. The maximum interest rate implicit in the leases was 12.5%. The lease assets secured the lease liabilities. The Department guaranteed the residual values of all assets leased. There are no contingent rentals.

No new finance leases have been entered into by the Department in 2003-2004.

9.3 Other Interest Bearing Liabilities

Lease incentive 704 807

Other interest bearing liabilities are represented by; Current Non-current Total other interest bearing liabilities

103 103

601 704

704 807

275

2004

2003

s1000 $'000

10 PROVISIONS

10.1 Employee Provisions

Salaries and wages 3,191 2,564

Leave 25,803 24,689

Superannuation 4,982 3,569

Separation and redundancies 0 89

Other employee provisions 0 3

Aggregate employee benefit liability and related on-costs 33,976 30,914

Employee provisions are represented by: Current 13,041 11,445

Non-current 20,935 19,469

Aggregate employee benefit liability and related on-costs 33,976 30,914

10.2 Other Provisions

Provision for Antarctic Base Restitution 36,788 42,997

Provision for Renewable Energy Certificates 252 0

Total other provisions 37,040 42,997

Other provisions are represented by: Current 3,455 3,455

Non-current 33,585 39,542

Total other provisions 37,040 42,997

Australia is required by the Madrid Protocol to remove all accumulated rubbish from the Antarctic Territories. A process of gradual removal is in effect. The Provision for Antarctic Base restitution is for the future costs of this exercise.

11 PAYABLES

11.1 Suppliers Payables

Trade creditors 6,452 5,877

Operating lease rentals 0 2,232

Total supplier payables 6,452 8,109

Settlement is usually made net 30 days.

All suppliers payables are current liabilities.

276 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

51000 $'OOO

11.2 Grant Payables

State and Territory governments Local governments Non-profit institutions Profit making entities Individuals Universities

Overseas Total grant payables

376 144

86 747

143 569

4 12

5 450

34 25

119 5

767 1,952

Settlement is made according to the terms and conditions of each grant, this is usually within 30 days of meeting the grant eligibility criteria.

All grants payables are current liabilities.

113 Other Payables

Appropriation payable 657 0

Interest payable 233 242

Unearned revenue 671 1,235

Purchase of property, plant and equipment payables 105 0

Claims for damages/costs 35 0

Miscellaneous 867 343

Total other payables 2,568 1,820

All other payables are current liabilities.

277

12 EQUITY

12.1 Analysis of Equity

Asset Revaluation

Item Accumulated Results Reserves Contributed Equity TOTAL EQUITY

2004 2003 2004 2003 2004 2003 2004 2003

$1000 $'OOO $'OOO $000 $'OOO $000 $'OOO $'OOO

Opening balance at 1 July 117,100 144,263 129,008 276,079 14,446 21,676 260,554 442,018

Net surplus 5,638 29,031 0 0 0 0 5,638 29,031

Net revaluation decrement 0 0 0 (2,958) 0 0 0 (2,958)

- 7,câ¢ .

Transactions with owner c-

Distributions to owner -

Returns on capital V

Capital Use Charge 0 40,9131 0 0 0 0 0 (40,913)

Returns of capital

Restructuring (256) (15,281) 507 (144,113) (8,425) (7,230) (8,174) (166,624)

Closing balance at 30 June 122,482 117,100 129,515 129,008 6,021 14,446 258,018 260,554

Financial statements

12.2 Restructuring

On 8 September 2003, Parliament passed a package of legislation which abolished the Australian Heritage Commission on 31 December 2003, replaced it with an Australian Heritage Council and incorporated a new heritage regime into the Environment Protection and Biodiversity Conservation Act 1999. These legislative changes took effect from the proclamation date of 1 January 2004. From this date onwards, the Department has administered the new heritage regime and receives all related funds.

On 5 December 2003 the Ozone Protection Act 1989 was amended and became the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. One of the consequences of the changes to the legislation was to rename the Ozone Protection Account to the Ozone Protection and SGG Account. The purpose of the Account has been broadened to include National Halon Bank activities. Consequently this activity is now administered in nature rather

than departmental in nature.

On 11 September 2002 the Department relinquished the responsibility for undertaking meteorological and related monitoring and research, and the provision of weather and climate services for the Australian community to the Bureau of Meteorology as a consequence of the Bureau of Meteorology becoming a prescribed agency.

2004 2003

$1000 $'OOO

In respect of the function assumed, the net book value of assets and liabilities transferred to the Department for no consideration and recognised as at the date of transfer were:

Total assets recognised 1,779 0

Total liabilities recognised 1,528 0

Net liabilities assumed 251 0

Net contribution by Government as owner during the year 251 0

In respect of functions relinquished, the following assets and liabilities were transferred by the Department:

Total assets relinquished Total liabilities relinquished Net assets relinquished

Net distribution to Government as owner during the year

8,170 237,386

0 70,762

(8,170) (166,624)

(7,919) (166,624)

279

Heritage Regime

Revenues Recognised by the Australian Heritage Commission 5,041 9,376

Recognised by the Department 3,533 0

Total revenues 8,574 9,376

Expenses Recognised by the Australian Heritage Commission 4,645 9,146

Recognised by the Department 3,721 0

Total expenses 8,366 9,146

National Halon Bank

Revenues Recognised as Departmental 1,486 3,224

Recognised as Administered 1,147 0

Total revenues 2,633 3,224

Expenses Recognised as Departmental 1,001 2,762

Recognised as Administered 1,039 0

Total expenses 2,040 2,762

280 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

51000 S'000

13 CASH FLOW RECONCILIATION

13.1 Reconciliation of cash per Statement of Financial Position to Statement of Cash Flows

Cash at year end per Statement of Cash Flows 6,928 4,249 Statement of Financial Position items comprising above cash: 'Financial Asset - Cash' 6,928 4,249

13.2 Reconciliation of net surplus to net cash from operating activities:

Net surplus 5,638 29,031

Assets recognised for first time (1,962) (2,799)

Depreciation / Amortisation 21,752 31,879

Loss on disposal of non-current assets 424 1,851

Write down of non-current assets 820 334

Asset adjustments (1,680) 539

Other revenues and expenses not involving cash (1,180) (483)

(Increase) / decrease in receivables 11,243 (24,453)

(Increase) / decrease in inventories (1,111) (208)

(Increase) / decrease in accrued revenue 349 1,258

(Increase) / decrease in other financial assets 7 0

(Increase) / decrease in prepayments 1,751 (28)

Increase / (decrease) in interest bearing liabilities (999) (936)

Increase / (decrease) in employee provisions 3,062 782

Increase / (decrease) in other provisions (5,957) (3,862)

Increase / (decrease) in suppliers liabilities (1,657) (6,395)

Increase / (decrease) in grant liabilities (1,185) 1,191

Increase / (decrease) in other liabilities 748 1,138

Net cash from operating activities 30,063 28,839

National Halon Bank

As a result of restructuring of administrative arrangements on 5 December 2003 certain assets were relinquished. Note 12.2 refers. No infrastructure, plant and equipment, and intangibles were relinquished.

Heritage Regime

Also, as a result of restructuring of administrative arrangements on 1 January 2004 certain assets and liabilities were assumed. Note 12.2 refers. At that date the Department assumed infrastructure, plant and equipment, and intangibles with a gross values of $2,052,335 and accumulated depreciation/amortisation of $484,895. The net amount of $1,567,440 is included in Asset adjustments above.

281

14 CONTINGENT LIABILITIES AND ASSETS

Quantifiable Contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting period, therefore there is no Schedule for such items.

Unquantifiable Contingencies

A contractual obligation for a make good, as part of a sub-lease arrangement, where the timing, method and cost of the work that will be required to be undertaken cannot be determined with any degree of accuracy. (2003: Nil).

Remote contingencies

2004: 2 claims for damages/costs - estimated dollar value $360,000. (2003: Nil).

282 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

15 EXECUTIVE REMUNERATION

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

2004 2003

Number Number

$100,000to$109,999

$110,000to$Il9,999 0 1 $120,000 to $129,999 0 2 $130,000 to $139,999 1 3 $140,000 to $149,999 3 6 $150,000 to $159,999 3 6 $160,000 to $169,999 3 7 $170,000 to $179,999 8 0 $180,000 to $189,999 2 2 $190,000to$199,999 1 2 $200,000 to $209,999 0 1 $2 10,000 to $219,999 3 3 $220,000 to $229,999 1 0 $230,000 to $239,999 I I $240,000 to $249,999 0 1 $270,000 to $279,999 1 0 $300,000 to $309,999 1 0 $350,000 to $359,999 0 1 The aggregate amount of total remuneration of executive shown above: 5,375,593 6,309,236 The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above 298,296 164,864 With executives commencing and ceasing during the year, there was a net reduction in the number of executives who received or were due to receive total remuneiation of$ 100,000. 283

16 REMUNERATION OF AUDITORS

2004 2003

$ $

Financial statement audit services are provided free of charge to the Department. The fair value of audit services provided was: 370,000 360,000

No other services were provided by the Auditor-General.

17 AVERAGE STAFFING LEVELS

2004 2003

Number Number

The average staffing levels for the Department during the year were: 1,238 1,315

284 Department of the Environment and Heritage Annual Report 2003-04

Total assets

343,499 352.023

18 FINANCIAL INSTRUMENTS

18.1 Interest Rate Risk

Total liabilities 91,469 85,481

Floating Interest Fined interest Rate Maturing in Non-Internal Rearing Total Financial Instrument Notes Rate Weighted Average I year or less Ito 5 years >0 years Effective Interest Raft 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003

1000 (000 0000 $000 $080 $000 5000 0000 5000 1000 S'OOO SO(S) %

Financial Assets

Cash 7.1 0 4,109 0 0 0 0 0 0 6,920 140 6,928 4.249 0.00% 4,79% Receivables (cross) 7.2 0 0 0 0 0 0 0 0 4.895 4,320 4,895 4,320 W. fl/a Appropriation receivable 7.2 0 0 0 0 0 0 0 0 9,794 21,550 9,794 21,555 st/a via Aecroed tnsenae 7.3 0 0 0 0 0 0 0 0 2,823 3.172 2,823 2.172 n/a W.

Total - 0 - 4.109 0 0 0 0 0 0 24,440 29.107 24,440 33,296

Financial Liabilities

Loans 9.1 3,974 4,831 0 0 0 0 0 0 0 o 3974 4.831 6.03% 3.01% Finance cues 9.. 0 0 0 39 0 0 0 0 0 0 0 39 12.50% Trade creditors 11.1 0 0 0 0 0 0 0 — 0 6,402 0,109 6,402 8.109 n/a n/a Grant Paynbies (non

Cotnnsonweallls gooerotsent) 11.2 0 0 0 0 0 , 01 0 0 767 1,952 767 .932 n/a n/s Total 3,974 4.831 0 39 0 - 0 0 0 7,219 10,061 11,193 14,931

wai;

I eP

UeU!

18.2 Net Fair Values of Financial Assets and Liabilities

The net fair value of each class of the Departments financial assets and liabilities equals its carrying amount in both the current and immediately preceding reporting period, and none of these financial assets or liabilities are readily traded on organised markets in a standardised form

18.3 Credit Risk Exposures

The Departments maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position.

The Department has no significant exposures to any concentrations of credit risk.

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

2004 2003

$1000 $'OOO

19 REVENUES ADMINISTERED ON BEHALF OF GOVERNMENT

Non-taxation Revenues

Revenues from Government Audit services received free of charge for the N}IT 42 40

Total revenues from Government 42 40

Goods and services Rendering of services - related entities Rendering of services - external entities Other fees from regulatory services Total goods and services

Interest Loans - State and Territory Governments

Reversal of previous asset write-downs Doubtful debt received - receivable

Other revenue Industry contributions Grant repayments Assets recognised for the first time Other sources of non-taxation revenues Total other revenue

Total revenues administered on behalf of Government

0 19

194 2,051

2,506 703

2,700 2,773

6 6

0 19

7,000 6,700

993 2,057

67 40

244 223

8,304 9,020

11,052 11,858

286 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

51000 $'OOO

20 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Grants State and Territory governments 146,312 128,037

Local governments 8,422 15,249

Non-profit institutions 53,624 50,921

Profit making entities 1,048 3,164

Individuals 2,428 2,866

Universities 976 2,392

Overseas 287 407

Other sectors in the Commonwealth 7,071 7,803

Total grants 220,168 210,839

Suppliers Provision of goods - related entities 0 18

Provision of goods - external entities 656 452

Rendering of services - related entities 19,718 30,111

Rendering of services - external entities 25,937 16,394

Total suppliers 46,311 46,975

Write-down and Impairment of assets Financial assets - receivables - other 103 16

Non-financial assets - inventories 19 0

Non-financial assets - other 2 278

Total write-down and impairment of assets 124 294

Other expenses administered on behalf of Government Total other expenses administered on behalf of Government 938 407

938 407

Total expenses administered on behalf of Government 267,541 258,515

287

2004 2003

$'OOO $000

21 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assets

Cash Special accounts 0

Other I 0

Total cash 1 1

(The balance of the administered cash account is non-interest bearing.)

Receivables Loans to State and Territory governments 42 50

(Loans were made under financial assistance legislation. No security is required. Principal is repaid in full at maturity. Interest rates are fixed. Effective interest rates range from 9.0% to 14.475%. Interest payments are due on the last day of July and January each financial year.)

Goods and services Provision for doubtful debts

88 49

(All receivables are with entities external to the Commonwealth. Credit terms are generally 30 days (2003: 30 days).)

Goods and Services Tax 6,156 2,851

Other receivables Provision for doubtful debts

608 291

(82) (1)

526 290

Total receivables (net) 6,812 3,240

Receivables (gross) are aged as follows: Not overdue 6,505 3,105

Overdue by: Less than 30 days 73 89

30 to 60 days 41 0

60t090days 51 33

More than 90 days 224 14

Total receivables (gross) 6,894 3,241

The provision for doubtful debts is aged as follows: Not overdue Overdue by: More than 90 days 82

Total pro vision for doubtful debts 82

288 Department of the Environment and Heritage Annual Report 2003-04

—a

Financial statements

2004 2003

$1000 $1000

21 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT (continued)

Investments Commonwealth authorities: Australian Heritage Commission (abolished 31.12.2003) 0 4,835

Director of National Parks and Wildlife 95,907 95,907

Great Barrier Reef Marine Park Authority 13,017 13,017

Sydney Harbour Federation Trust 9,377 377

Total investments 118,301 114,136

Accrued Revenues Goods and services 0 6

Interest on loans 3 3

UST 438 142

Total accrued revenues 441 151

Total financial assets 125,555 117,528

Non-financial assets

Infrastructure, plant and equipment Buildings 4,750 4,750

Heritage plant and equipment - at 1999-2004 valuation (deprival) 1,271 1,271

Revaluations were completed by the Australian Valuation Office using depreciated replacement coat.

Inventories Work in progress (cost) 0 3

Finished goods (cost) 141 107

Total inventories held for sale 141 110

Work in progress (cost) 30 0

Finished goods (cost) 221 219

Total inventories not held for sale 251 219

Total inventories 392 329

Other Non-financial Assets Prepayments

74 131

Total non-financial assets 6,487 6,481

Total assets administered on behalf of Government 132,042 124,009

289

Payables

Suppliers Payables Trade creditors 3,027 1,586

2004 2003

s1000 $'000

22 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

Interest Bearing Liabilities Overdraft 341 0

Total interest bearing liabilities 341 0

(All creditors are entities that are not part of the Australian Government. Settlement is usually made within 30 days).

Grant Payables

Public sector State and Territory governments 29,955 8,798

Local governments 273 442

Commonwealth entities 116 179

Private sector Non-profit institutions 2,212 2,163

Profit making entities 14 222

Individuals 138 27

Universities 12 83

Total grant payables 32,720 11,914

(All grants are to entities that are not part of the Australian Government. Settlement is made in accordance with terms and conditions for each grant. This is usually within 30 days of

performance or eligibility).

Other payables

GST appropriation payable 6,444 2,803

Miscellaneous 899 15

Total other payables 7,343 2,818

Total payables

Total liabilities administered on behalf of Government

All liabilities are expected to be settled within 12 months of balance date.

43,090 16,318

43.431 16.318

290 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

2004 2003

$'OOO $000

23 ADMINISTERED RECONCILIATION TABLE

Opening administered assets less administered liabilities as at 1 July 107,691 119,139

Plus: Administered revenues 11,052 11,858

Less: Administered expenses (267,541) (258,515)

Administered transfers to / from Government Appropriation transfers from OPA 246,812 247,797

Transfers to OPA (13,568) (16,186)

Capital injection 0 4,750

Restructuring 4,165 (1,152)

Movement in carrying amount of investment

Closing administered assets less administered liabilities as at 30 June

24 ADMINISTERED CONTINGENT LIABILITIES AND ASSETS

Quantifiable administered contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting periods, therefore there is no Schedule for such items.

Unquant(flable administered contingencies - Nil for 2004 and 2003

Remote administered contingencies - Nilfor 2004 and 2003

25 ADMINISTERED INVESTMENTS

The principal activities of each of the Department's administered investments are as follows:

* Director of National Parks and Wildlife - assists the Minister and the Department in the conservation and appreciation of Australia's biological diversity and associated cultural heritage, through leadership and cooperation in the management of the Commonwealth's protected areas.

* Great Barrier ReefMarine Park Authority - works in partnership with Commonwealth and Queensland government agencies to undertake a wide range of functions to ensure that the conservation and world heritage values of the Great Barrier Reef are preserved for future generations.

* Sydney Harbour Federation Trust - responsible for planning, managing, conserving, enhancing and making publicly accessible certain lands on or near the foreshores of Sydney Harbour.

88,611 107,691

291

26 ADMINISTERED FINANCIAL

INSTRUMENTS

a) Administered interest Rate Risk

Total assess

132,042 124.009

Floating Interest Fixed Interest Rate Maturing In Non-Interest BearingTotal Weighted Average Financial Instrument Notes Rate Efrertive Interest Rate

I year orless I ts5vears >52,eora 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003

$000 $000 $000 $000 $000 S000 5000 5000 S1000_ $000 $000 $000 % %

I'loanoiat Assets ('ash 21 0 0 0 0 5 0 0 0 I I I 1 W. 0/0

Receivables (gross)21 0 0 0 0 0 0 0 0 6,852 3,101 6,052 3,191 es/a n/s

loans 21 0 0 8 0 34 42 0 0 8 0 42 50 10.0% 10.8%

Accroodrevenoc 21 0 0 0 0 0 0 0 0 441 lOt 440 151 st/u x/o

Total 0 0 8 5 34 42 - 0 0 7,294 3.343 7,336 3,393

Financial Liabilities Overdraft 22 341 0 0 0 0 0 0 0 0 0 341 0 0.00% 00/TI,

TosdeCroditorn 22 0 0 0 0 0 0 0 0 3,027 1,506 3,027 1,556 rif. s/u

Grant Pa/rabIes (non Connsnonwrolthgovenrnrent) 22 0 0 0 0 0 0 0 0 32,604 11,735 32.604 11.735 st/a ala

Total 341 0 0 0 0 0 0 0 35,630 - 13,321 35,972 13,321

Total liabili ties 43,431 1 16,318

Financial statements

b) Net Fair Values of Administered Financial Assets and Liabilities

The net fair value of each class of administered financial assets and liabilities equals its carrying amount in both the current and immediately preceding reporting period, and none of these financial assets or liabilities are readily traded on organised markets in a standardised form.

c) Credit Risk Exposures

The Department's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets and liabilities is the carrying amount of those assets and liabilities as indicated in the Schedule of Administered Items which details assets and liabilities administered on behalf of Government.

The Department has no significant exposures to any concentrations of credit risk.

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

293

'a =

3 'a 0 a) = 0. = ID C) )0 (a = 0 C ID â¢0 0 S.) C 0

27 APPROPRIATIONS

27.1 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) from Acts 1,3 and 5

Particulars Administered Expenses Departmental Total

Outcome 1 Outcome 2 Outputs $ $ S $

Year ended 30 June 2004 Balance carried from previous year 379,191,807 0 49,665,960 428,857,767

Adjustment of estimated carried forward and actual determination(378,836,540) 0 (25,439,617) (404,276,157) Adjusted balance carried from previous year 355,267 0 24,226,343 24,581,610

Appropriation Act (No. 1) 2003-2004 -basic appropriation 138,620,000 0 206,887,000345,507,000 Appropriation Act (No.3) 2003-2004 - basic appropriation 1381,000 0 4,940,000 6,321,000 Appropriation Act (No.5) 2003-2004 - basic appropriation 5,500,000 0 0 5,500,000

Refunds credited (FMA Act section 30) 0 0 3,178,212 3,178,212

Appropriations to take account of recoverable GST (FMA Act section 30A) 1,174,907 0 5,919,297 7,094,204 Annotations to net appropriations (FMA Act Section 31) 0 0 35,856,283 35,856,283

Adjustment of appropriations on change of entity function (FMA Act section 32) 0 0 0 0

Administered amounts rephascrt 0 0 0 0

Total Appropriations available for payments 147,031,173 0 281,007,135 428,038,308

Ps'ments made (GST inclusive) (15,967,769) 0 (265,786,689) (281,754,458)

Appropriations credited to Special Accounts (109,226,103) 0 0 (109,226,103)

Balance carried!,, next year 21,837,302 0 15,220,446 37,057,749

Represented by: Cash at bank and on hand 0 0 4,333,324 4,333,324

Add: Appropriations not drawn from the ()PA 21,837,302 0 0 21,837,302

Add: Appropriations receivable 0 0 9,794,153 9,794,153

Add: Receivables - Goods and services - GST receivable from customers 0 0 471,310 471,310 Add: Receivables - Net GST receivable from the ATO 0 0 1,950,979 1,950,979

Less: Other payables - Net GST payable to DoFA 0 0 0 0

Less. Payable - Suppliers / Grants - GST portion 0 0 (1,329,320) (1,329,320)

Add: Under consideration for rephasing 0 0 0 0

Add: Under consideration for lapsing 0 0 0 0

Total 21,837,302 0 15,220,446 37,057,748

Reconciliation for Appropriation Acts (Nos 1, 3 and 5 Paid to the Department from the OPA 123,663,698 0 211,827,000335,490,698

Add: Finance Minister reduction of Appropriation in current year 0 0 0 0

Add: Administered Appropriation lapsed in current year 0 0 0 0

Not drawn from OPA 21,837,302 0 0 21,837,302

Total Appropriation Acts 145,501,000 0 211,827,000357,328,000

27.1 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) from Acts 1,3 and

5 (continued)

""Paid Mars :; :.:r . , ,.â¢â¢ :: ., Adndnistered Expenses Departmental Total .. . .. :Outcome 1. Outcome 2 Outputs $ $ $ $

Year ended 30 June 2003 Balance carried from previous year 11,363 0 75,969,632 75,980,995 Total annual appropriation - basic appropriations 9,171,000 0 496,754,977 505,925,977 Adjustments and annotations to appropriations 379,106,158 0 0 379,106,158

Transfers so/from other agencies (FMA Act section 32) 0 0 (164,923,500) (164,923,500) Administered amounts rephased 0 0 0 0 Administered appropriations lapsed (940,000) 0 0 (940,000) Available for payments .. , 387r348,521 0 407,801,109 795,149,630 Payments made during year. (7,422,609) . 0 (358,135,149)_ (365,557,758)

Appropriations credited to special accounts . " .. ... (734,1051 . 0 0 (734,105) Balance carried to next year 379,191,807 0 49,665,960 428,857,767

Represented by: 0

Cash 835 0 29,392,346 29,393,181

Add: Receivables - Goods and services - GST receivable from customers 684,450 0 0 684,450 Add: Investment in term deposit 0 0 19,046.421 19,046,421 Add: Receivables - Net GST receivable from the ATO 0 0 292,849 292,849 Loss. Other payables - Net GST payable to DoFA 73,582 0 2,521,383 2,594,965

Less: Payable - Suppliers - GST portion (73,582) 0 0 (73,582) Add: Under consideration for rephasing p0,938) 0 (1,587,039) (1,607,977) Add: Under consideration for lapsing 378,527,460 0 0 378,527,460 Total 379,191,807 0 49,665,960 428,857,767

GPS

ueUI:

e part

ment

of th e E nvi

ronment

and

H e

27.2 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) from Acts 2,4 and 6

Particulars Administered Expenses Non-operating totat

- Outcome 1 -Outcome 2

SPP'sNAE SPP's NAEEquity Loans PreviousAdmits assets years' & liabilities outputs

S S $ S S S S S S

Year ended 30 June 2004 Balance carried from previous year 700,000 0 0 0 0 0 0 0 700,000

Adlusloseot of estimated carried forward and actual determination (380,000)0 0 0 0 0 0 0 (380,000) Adjusted balance curriedfrorn prerious year320.000 0 0 0 0 0 0 0 320,000

Appropriation Act (No. 2)2003-2004 1,180 0000 0 0 0 0 2,224 000 0 3,374.000

Appropriation Act (No. 4) 2003-2004 380.000 0 0 0 0 0 2,109,000 0 2,489,0110

Appropriation Act (No. 6) 2003-2004 0 0 0 0 0 0 0 ii 0

Refunds credited (FMA Act section 30) 0 0 0 o 0 0 0 0 0

GST credits COMA Act section 30k) 32,000 0 0 0 0 0 0 0 32,055

Administered amounts rephased 0 0 0 0 0 o 0 0 0

Available for payments 1,882,0050 0 0 0 0 4,333,000 0 6,215,000

Payments made (1,732,000) 0 0 0 0 0 (2,224,000) 0 (3,956,000)

Balance carried to nerO year 150,000 0 0 0 0 0 2,109,000 0 2,259,000

Represented b,: Cash 0 0 0 0 0 0 2,109,000 0 21109,080

Appropriations not drawn down from the OPA 190,000 0 0 0 0 0 0 0 150,000

Total 150,000 0 0 0 0 0 2,109,000 0 2,250,600

Reconciliation for Appropriation Acts (Nos 2. 4 and 0) Paid to the Deparnneot from the OPA 1,732 0000 0 0 0 0 2,109,000 0 3,841,000

Not draw,, from the OPA 150,000 0 0 0 0 0 0 0 150,000

Total Appropriation Acts 1,082,0000 0 0 0 0 2,109,000 ii 3,991,000

Year coded 30 June 2003 Balance carried Front provisos year 0 0 0 0 0 0 0 0 0

Total annual appropriation 4,640,0000 0 0 4,750,000 0 0 II 9,390,0011

Adjustments and annotations to appropriations0 0 0 0 0 0 0 0 0

Administered amounts rephnsed (2,940.000) 0 0 0 0 0 0 0 (2,940.000)

Administered appropriations lapsed 0 0 0 0 0 0 0 0 II

Available for payments . 1,700,0000 (I 0 4750,000 0 0 0 6,450,000

Payments made (1,000000 (4,750,000) (0,750,000)

Balance carried to next year 700,000 0 0 0 0 5 0 0 700,0011

Represented b,' Appropriations not drown down from the OPA 700,000 0 0 0 0 0 0 Ii 700.000

Total 700,000 0 0 0 0 0 0 0 700,000

O -EOO

tio dab

e nuUV

e 6e

49,848,000

426,355

19,843,000 422,303

Budget Estimate Payments made

Total for unlimited special appropriations

2004 $

2003 $

Financial statements

273 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount)

Natural Heritage Trust of Australia Act 1997 - Sub-section 6(2) Administered Outcome I 2004 2003

$ $

Purpose.- Amount equal to the fixed-income percentage of the uninvested money in the Natural Heritage Trust of Australia Reserve as at the end of the financial year.

All transactions under this Act are recognised as administered items. Budget Estimate 19,097,000 49,230,000

Payments made 0 0

Ozone Protection Act 1989 - Sub-section 65C(1) Adminstered - Outcome 1 -

2004 2003

$ $

Purpose.Amounts equal to amounts received by the Commonwealth as; â¢ Fees for the grant of licences under the Ozone Protection Act 1989; â¢ Fees under the Ozone Projection (Licence Fees - Manufacture) Act 1995 and the Ozone Protection (Licence Fees - Imports) Act 1995; and â¢ Penalties under sub-section 69(2) of the Ozone Protection Act 1989.

All transactions under this Act are recognised as administered items. Budget Estimate - 746,000 618,000 Appropnattons credited to Special Account 422,303 426 355

297

Appropriation (Supplementary Measures) Act (No. 2) 1999 Section 3

Departmental Outcome I 2004 2003

$ $

Purpose. Supporting the development and implementation of in-service emissions testing capabilities for diesel and petrol vehicles, where the diesel emissions testing is in connection with the making and/or implementation of a Diesel National Environment Protection.

All transactions under this Act are recognised as departmental items. Balance carried from previous period 453,339 107,154

Adjustment to balance carried from previous year (453,339) 0 Adjusted balance carried forward from previous year 0 107,154 Appropriations for reporting period 10,000,000 10,000,00() (1ST credits (FMA Act section 30A) 340,299 457,701

Available for payments 10,340,29910,564,855

Payments made (4,125,672) (5,104,546)

Special appropriation lapsed (6.214,627) (6,970)

Special appropriation rephased 0 (5.000,000)

Balance carried to next period 0 453,339

Appropriation (Supplementary Measures) Act (No. 2) 1999 Section 3 Departmental Outcome 1 2004 2003

S $

Purpose: Developing a product stewardship system for the reuse and recycling of waste oil.

All transactions under this Act are recognised as departmental items. Balance carried from previous period 2,032,153 8,638,640 Adjustment to balance carried from previous year (2,032,153) 0 Adjusted balance carried forward from previous year 0 8,638,640 Appropriations for reporting period 15,000,000 18,900,000 (1ST credits (FMA Act Section 30A) 535,369 747,838

Available for payments 15,535,369 28,286,478

Payments made (6,870,670) (0,835,498)

Special appropriation lapsed (8,664.699) 0

S2isl aporunriation rephased 0 ( '.415.82"i

Balance carried to nest period 0 2,032,153

-I

27.4 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount)

Captains Flat (Abatement of Pollution) Agreement Act 1975 Administered

Outcome 1

Ps/pose: Amounts payable to the Government of New South Wales in accordance with an a greement made under section 3, by way of financial assistance.

There were no transactions against this appropriation during 2003-2004 (2002-2003: Nil). The balance of this appropriation at 30 June 2004 is Nil (2002-2003: Nil).

298 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

27.5 Special Accounts 2004 2003

S $

a) Special accounts comprise part of the Departments administered reporting entity.

* In accordance with the legal authority for the Account, separate finanical statements are prepared for the Account. The balance for the Account is reported in those financial statements as appropriations receivable undrawn less overdraft as the net amount represents appropriations that are controlled by the Department but held in the Official Public Account under the Governments just-in-time drawdown arrangements.

Natural Heritage Trust of Australia Account LegalAuthorily - Natural Heritage Trust ofAustralia Act 1997, Section 4

Purpose - The purposes of the Reserve are as follows: (a) the National Vegetation Initiative; (b) the Murray-Darling 2001 Project; (c) the National Land and Water Resources Audit; (d) the National Reserve System; (e) the Coasts and Clean Seas Initiative; (f) environmental protection (as defined by section 15 of the Act); (g) supporting sustainable agriculture (as defined by section 16),- (h) natural resources management (as defined by section 17 of the Act); (i) a purpose incidental or ancillary to any of the above purposes; (j) the making of grants of financial assistance for any of the above purposes; and (k) an accounting transfer purpose (as defined by section 18 of the Act).

This account earns interest at the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia. Balance carried from previous year 484,147,043 611,740,753 Natural Heritage Trust ofAustralia Act 1997 credits:

â¢ Recognised for first time 0 404,221,357

â¢ Sub-section 6(2) 22,512,947 81,277,984

â¢ Sub-section 23(1) 109,083,103 0

Receipts from other sources 722,528 2,237,022

GST credits (FMA Act section 30A) 10,583,733 7,852,935

Correction of legislative misinterpretation 0 (378,527,460) Available for aymenis ,. \. '' 627,049,355:728;802,591

Payments made: :â¢'â¢. . ,',.(237,729,117) : (244,655,548)

Balance carried to next year* 389,320,237 484,147,043

Represented by: Cash on call held in the OPA 394,779,141 486,327,149

GST payable to the OPA (5,458,904) (2,180,106)

Total 389,320,237 484,147,043

299

300

Department of the Environment and Heritage Annual Report 2003-04

Environment - Federation Fund Account

Legal Authority - Financial Management and Accouitabiliry Act 1997, Section 20

Put-pose - For expenditure on substantial capital projects throughout Australia which will mark the centenary of Federation and make a significant and lasting contribution to the Australian Community.

This account is non-interest bearing. Balance carried from previous year 31,042,724 842,724 Reversal of 2002 return of appropriation to OPA 0 30,200,000 Appropriations for reporting period GST credits (FMA Act section 30A) Available for payments 31,042,724 31,042,724

Payments made Balance carried to next year 31,042,724 31,042,724 Represented by: Cash on call held in the OPA 31,042,724 31,042,724

Ozone Protection and SCG Account Legal Authority - Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, Section 65B

Purpose - The following are the purposes of the Account: (a) paying or reimbursing the Commonwealth's costs associated with the administration of the Act and the regulations; (b) paying or reimbursing the Commonwealth's costs associated with furthering the

following programs (including providing information about those programs): (i) ODS phase-out programs; and (ii) emission minimisation programs for ODSs and SGGs; (c) paying or reimbursing the Commonwealth's costs associated with the management of

the National Halon Bank; and (d) refunding any amounts credited to the Account in error.

This account is non-interest bearing. Balance carried from previous year 1,765,286 1,741,164 Appropriations for reporting period 422,303 426,355 Appropriations for prior periods (Refer Note 12.2) 7,684,267 0 Receipts from other sources 871,475 0

Available for payments 10,743,331 2,167,519

Payments made (334,104) (402,233)

Balance carried to next year 10,409,227 1,765,286

Represented by: Cash on call held in the OPA 10,409,227 1,765,286

Financial statements

273 Special Accounts (continued) 2004 2003

$ S

Sea Installations Account Legal Authority - Sea installations Act 1987, Section 38

Purpose - There must be transferred to the Reserve from the Consolidated Revenue Fund amounts equal to money paid as a security under section 37 by way of a cash deposit. There were no transactions of this special account during 2003-2004 (2002-2003: Nil). The balance of this special account at 30 June 2004 is Nil (2002-2003: Nil).

Australian Antarctic Heritage Conservation Special Account Legal Authority - Financial Management and Accountability Act 1997, Section 20

Purpose - The following are the purposes of the Account: (a) the conservation of Antarctic and sub-Antarctic heritage, including the conservation of the Mawson'a Huts Historic Site; and (b) activities that are incidental to that conservation.

This special account was established with effect from 25 June 2004. There were no transactions of this special account during the period 25 to 30 June 2004 inclusive. The balance of this special account at 30 June 2004 is Nil.

National Cultural Heritage Account Legal Authority - Protection of Moveable Cultural Heritage Ac: 1986, Section 25

Purpose - Amounts standing to the credit of the National Cultural Heritage Account may be expended for the purpose of facilitating the acquisition of Australian protected objects for display or safe-keeping.

This account is non-interest bearing. Balance carried from previous year 357,000 192,250

Appropriations for reporting period 143,000 307,750 OST credits (FMA section 30A) 5,875 14,300

Available for payments 50S,875; 514,300

Paymentsmade . (64,625). ; (157,300)

Balance carried to next year 441,250 357,000

Represented by: Cash on call held in the OPA 443,750 358,800

OST payable to the OPA (2,500) (1,800)

Total 441,250 357,000

301

2004

2003

$ $

b) Special public moneys are trust account in nature and do not comprise part of the Departments reporting entity.

Australian and New Zealand Environment and Conservation Council Fund Trust Account Legal Authority - Financial Management and Accountability Act 1997, Section 20

Purpose - for expenditure to support environmental research and special activities approved by the Australian and New Zealand Environment and Conservation Council or a Committee appointed by the Council for that purpose.

This account is non-interest bearing. Opening balance at 1 July 12,429 23,929

Available for payment 0 23 929

Payments made 0 (11;500)

Balance at 30 June 12,429 12,429

Environment - Services for other Governments and Non-agency Bodies Account Legal Authority - Financial Management and Accountability Act 1997, Section 20

Purpose - For the expenditure in connection with services performed on behalf of other Governments and bodies that are not Agencies under the Financial Management and Accountability Act 1997.

This account is non-interest bearing. Opening balance at 1 July 3,424,057 3,186,508

Receipts dunn the year 255,332 730,124

k'ailablefofjrnyint

Pneittnade.'

TransfitoJhe Bureau of Metebrology,.refer Note 12.2. â¢. - -. ' tt.0 (66,646) Balance at 30 June 3,372,987 3,424,057

Other Trust Moneys Account Legal Authority - Financial Management and Accountability Act 1997, Section 20

Purpose - For the expenditure of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth

This account is non-interest bearing. Opening balance at 1 July 10,591 64,054

Correction to opening balance 0 (27,184)

Receipts during the year 2,542 0

Available far payment 13,133 36,870

Payments made (2,542) 0

Transfer to the Bureau of Meteorology, refer Note 12.2 0 (26,279) Balance at 30 June 10,591 10,591

302 Department of the Environment and Heritage Annual Report 2003-04

Financial statements

28 SPECIFIC PAYMENT DISCLOSURES

No Act of Grace payments were made, and there were no amounts owing as at year end. (2003: No Act of Grace payments made)

No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2003: No waivers made)

No ex-gratia payments were made during the reporting period. (2003: No ex-gratia payment made)

No payments were made under the Defective Administration scheme (2003: One payment of $577 was made under the Defective Administration scheme)

303

.5, a)

29 REPORTING BY OUTCOMES

Prior to the 12 September 2003 the Department contributed to all 3 of the Portfolios outcomes - Environment Divisions to Outcome I (Environment), Bureau of Meteorology to Outcome 2 (Meteorology), and the Australian Antarctic Division to Outcome (Antarctic). On 12 September 2003 the Burma of Meteorology became a Prescribed Agency and reports as no agency in its owe right The Department now contributes to only 2 outcomes - Environment and

3 Antarctic. In 2003-2004 the Outcome numbers have been realigned with Outcome 2 becoming Antarctic and Outcome

3 Meteorology. With the change in

Outcome numbering on 2003-2004, in this note Outcomes are referred to by name rather than number.

A percentage bared attribution system has been used to determine the allocation of shared items. The percentages used titifer in some instances from those used for the 2002-2003 Budget.

29,1 Net cost of Outcome Delivery

Environment Meteorology Antarctic Total

2004 2003 2094 2003 2004 2003 2004 2003

$000 5000 $000 folio $000 $000 $000 $1000

Administered rspesssm 267,541 258,515 0 0 0 0 267,541 258,515

Oepaetmentalespeeses 165,467 180,090 0 35,799 91,090 91.747 256,557 307.636

Total expenses 433.008 430,605 0 35,799 90,090 91,747 524,095 566,151

Canto recorer-odfrom provision of good.c and services

3 to the non-government sector:

Administered 2,700 145 0 1,906 0 0 2,700 2,754

CD Depussrssesstal 4,952 4,716 0 1,010 1,976 3,270 6,950 9.496

Total costs recovered 7,682 4,061 0 3,416 1,976 3,270 9,688 12,250

â¢ Other external revenuer:

Administered interest essloans 6 6 8 0 0 0 6 6

Reveesat otpvevioan asset write-duwssu 0 19 0 0 5 0 0 19

Goods and services revenue from related entities 0 19 0 0 0 0 0 10

Other 5,346 9,020 0 0 0 0 8,346 9,060

Total administered 8,352 9,064 0 0 0 0 6,352 9.104

Departmental totnrmt an cash deposits 0 456 0 210 0 326 0 994

Revenue from disposal ofassets 0 0 0 t 20 441 20 442

Reversal of previmsn asset write-dowser 8 2 0 0 0 0 8 2

Other 2,310 2,472 0 145 1,730 2,784 4,020 5,401

Goods and services revenue from related entities 24,897 19,710 0 584 1,905 076 26,802 23,470

Total departmental 27215 22,642 0 1,240 3,635 4,427 30,850 28,309

Total other external r0000nes 38,067 31,706 0 1,240 3,630 4,427 30,202 37,413

Net rose/(ronorthutlon) of outcome 389,709 402,038 0 31,143 85,479 04,050 475,236 516,408

Net cost shown include nan-government costs that are eliminated in calculating the actual Budget outcome.

Financial statements

29.2 Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs

Departmental Expenses

Total

Other Departmental

Employees Suppliers Grants Depreciation expenses Expenses

51000 $000 $000 $'000 $'000 s'000

ENVIRONMENT Output I.! 2004 5,036 6,950 3,818 567 74 16,445

2003 4,185 7,514 4,679 393 211 16,982

Output 1.2 2004 20,785 10,277 745 732 573 33,112

2003 18,515 10,153 1,041 951 434 31,094

Output 1.3 2004 1,146 229 0 66 32 1,473

2003 6,901 4,002 202 355 56 11,516

Output 1.4 2004 8,829 4,559 221 591 186 14,386

2003 7,773 3,999 394 650 60 12,876

Output 1.5 2004 6,466 6,978 3,074 450 236 17,204

2003 4,065 4,027 4,035 182 37 12,346

Output 1.6 2004 13,680 12,542 3,103 885 189 30,399

2003 12,308 13,227 7,644 1,007 1,031 35,217

Output 1.7 2004 3,838 2,058 101 178 56 6,231

2003 4.770 2,504 136 295 214 7,919

Output 1.8 2004 3,900 1,397 378 153 53 5,881

2003 1,933 1,187 49 94 10 3,273

Output 1.9 2004 3,466 1,186 35,623 24 37 40,336

2003 2,628 288 45,929 19 3 48,867

Total 2004 67,146 46,176 47,063 3,646 1,436 165,467

Environment 2003 63,078 46,901 64,109 3,946 2,056 180,090

METEOROLOGY Output 2.1 2004 0 0 0 0 0 0

2003 9,779 7,386 0 4,977 92 22,234

Output 2.2 2004 0 0 0 0 0 0

2003 1,316 369 0 28 6 1,719

Output 2.3 2004 0 0 0 0 0 0

2003 8,366 2,489 0 439 41 11,335

Output 2.4 2004 0 0 0 0 0 0

2003 118 184 0 7 202 511

Total 2004 0 0 0 0 0 0

Meteorology 2003 19,579 10,428 13 5,451 341 35,799

ANTARCTIC Output 3.1 2004 4,698 6,559 107 2,863 60 14,287

2003 4,418 6,121 104 3,555 173 14,371

Output 3.2 2004 12,893 16,526 270 7,316 233 37,238

2003 11,810 15,737 263 9,084 670 37,564

Output 3.3 2004 7,177 10,023 163 4,375 94 21,832

2003 6,750 9,354 159 5,432 272 21,967

Output 3.4 2004 5,830 8,140 133 3,552 78 17,733

2003 5,483 7,597 129 4,411 225 17,845

Total 2004 30,598 41,248 673 18,106 465 91,090

Antarctic 2003 28,461 38,809 655 22,482 1,340 91,747

TOTAL 2004 97,744 87,424 47,736 21,752 1,901 256,557

2003 111,118 96,131 64,764 31,879 3,737 307,636

Net cost shown include intra-government costs that are eliminated in calculating the actual Budget outcome.

305

29.2 Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs (continued)

Revenues Total

from Sale of goods Other Departmental

Funded by: Government and services Interest revenues Revenues

$000 $000 $000 $000 $'OOO

ENVIRONMENT Output 1.1 2004 13,832 4,473 0 256 18,561

2003 13,436 4,643 31 70 18,180

Output 1.2 2004 19,758 12,182 0 322 32,262

2003 20,843 6,950 145 234 28,172

Output 1.3 2004 3,228 421 0 0 3,649

2003 7,326 3,199 55 314 10,894

Output 1.4 2004 12,292 1,467 0 119 13,878

2003 7,594 497 53 32 8,176

Output 1.5 2004 16,120 1,061 0 1,004 88,185

2003 12,044 702 29 71 12,846

Output 1.6 2004 23,527 4,894 0 515 28,936

2003 31,779 4,504 91 1,631 38,005

Output 1.7 2004 6,599 1,495 0 44 8,138

2003 4,784 1,901 36 43 6,764

Output 1.8 2004 3,042 3,099 0 27 6,168

2003 2,061 1,510 15 78 3,664

Output 1.9 2004 40,450 787 0 31 48,268

2003 46,540 520 3 I 47,064

Total 2004 138,848 29,879 0 2,318 171,045

Environment 2003 146,407 24,426 458 2,474 173,765

METEOROLOGY Output 2.1 2004 0 0 0 0 0

2003 27,959 522 46 31 28,558

Output 2,2 2004 0 0 0 0 0

2003 1,540 143 13 8 1,704

Output 2.3 2004 0 0 0 0 0

2003 10,278 1,729 151 107 12,265

Output 2.4 2004 0 0 0 0 0

2003 508 0 0 0 508

Total 2004 0 0 0 0 0

Meteorology 2003 40,285 2,394 210 146 43,035

ANTARCTIC Output 3.1 2004 13,518 615 0 291 84,424

2003 17,726 654 51 548 18,979

Output 3.2 2004 34,585 1,554 0 655 36,794

2003 45,353 1,672 133 1,198 48,356

Output 3.3 2004 20,658 948 0 425 22,031

2003 27,089 1,008 78 801 28,976

Output 3.4 2004 16,778 764 0 359 17,901

2003 22,002 812 64 678 23,556

Total 2004 85,539 3,881 0 1,730 91,150

Antarctic 2003 98,327 4,494 1,190 48,311 152,322

TOTAL 2004 224,387 33,760 0 4,048 262,195

2003 298,862 30,966 994 5,845 336,667

Net cost shown include intra-government costs that are eliminated in calculating the actual Budget outcome.

306 Department of the Environment and Heritage Annual Report 2003-04

29.3 Major Classes of Administered Revenues and Expenses by Outcome

Environment Meteorology Antarctic Total

2004 2003 2004 2003 2004 2003 2004 2003

s1000 $'oOo s1000 $'000 $'000 $'Ooo $1000 $'oOO

Administered Revenues Audit services received free of charge for the NHT 42 40 0 0 0 0 42 40

Interest 6 6 0 0 0 0 6 6

Sales of goods and services 2,700 867 0 1,906 0 0 2,700 2,773

Reversal of previous asset write-downs 0 19 0 0 0 0 0 19

Other revenue 8,304 9,020 0 0 0 0 8,304 9,020

Total administered revenues 11,052 9,952 0 1,906 0 0 11,052 11,858

Administered Expenses Grants 220,168 210,839 0 0 0 0 220,168 210,839

Suppliers 46,311 46,975 0 0 0 0 46,311 46,975

Write-down of assets 124 294 0 0 0 0 124 294

Other 938 407 0 0 0 0 938 407

Total administered expenses 267,541 258,515 0 0 0 0 267,541 258,515

Net cost shown include intra-government costs that are eliminated in calculating the actual Budget outcome.

--i

Appendices

- Other mandatory information

Appendix 1

- Occupational health and safety

This report is presented in accordance with the requirements of section 74 of the Occupational Health and Safety (Commonwealth Employment) Act 1991.

The Department continues to maintain a strong commitment to the health, safety and welfare of its staff and any other persons at or near work sites through the promotion of its health, safety and welfare programmes.

The Department's Occupational Health and Safety Committee continues to meet regularly to address a wide range of issues. There are also occupational health and safety committees in each of the mainland national parks and workplaces, which meet regularly to address local issues.

Comcare conducted a review of the Department's Planned Investigation Programme, which was undertaken in 2000. A number of recommendations, policies and procedures have since been implemented. Comcare has been invited back to the Department to review implementation.

A new departmental policy and agreement on occupational health and safety is currently being negotiated with the relevant unions.

Specific programme activities during 2003-04 included:

â¢ signing a new two-year contract to provide staff and their families with an Employees Assistance Programme with Davidson Trahaire Corpsych, the successful tenderer; â¢ conducting regular orientation sessions for new staff including information on

occupational health and safety legislation, responsibilities and procedures; â¢ continuing ongoing ergonomic and work station assessments as part of the Department's policy of providing a safe workplace—there were a total of 188 assessments conducted in-house and by external occupational therapists; â¢ reimbursing staff for eyesight testing relating to use of screen-based equipment,

and reimbursing field staff for skin cancer and hearing loss screening; â¢ offering ongoing training for first aid officers and health and safety representatives; â¢ maintaining prevention programmes to address occupational overuse syndrome and stress; and â¢ reviewing a number of occupational health and safety management systems

throughout the year.

310 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Occupational health and safety initiatives

Specific initiatives during 2003-04 included: â¢ conducting, through external consultants, a risk assessment of work undertaken by staff within the Canberra-based elements of the Department (excluding the Australian National Botanic Gardens); â¢ beginning to develop an online occupational health and safety reporting system,

which records and reports on incidents, accidents, hazards, risks, workers' compensation and rehabilitation case management; â¢ commencing negotiations with an external occupational health and safety training provider to facilitate the introduction of online occupational health and

safety training for staff, covering legislative obligations, legal principles, and the roles and responsibilities of the employer and employees; â¢ starting to negotiate for the purchase and installation of an occupational health and safety information management and reference system based on AS 4801:

Occupational health and safety management systems - spec ification with guidelines for use, â¢ reviewing and updating occupational health and safety policies and procedures to reflect better practices and legislative changes; and â¢ revising the occupational health and safety risk assessment methodology and

integrating it into the general day-to-day activities of staff.

Considerable progress has been made towards enhancing the Australian Antarctic Division's safety management system. A safety management system framework consisting of seven major elements and organisational level' policy documents has been developed. Policy documents have been published and feedback obtained for three of the seven elements. The next stage of the roll out, which commenced

with the Australian Antarctic Division's Operations Branch, will look at developing section safety plans for implementing local policies and procedures to meet the divisions overall occupational health and safety policy requirements.

Formal review processes (short-term, ongoing and long-term) will then be instituted to ensure effectiveness, applicability to the division's operating environment and continuous improvement.

The Australian Antarctic Division's occupational health and safety committee structure continues to be very active with meetings held every three months. A recent election was held after a call for new health and safety representatives attracted too many candidates. Training has been organised for the new

representatives and refresher courses for those who continue in the role.

311

Occupational health and safety accident or incident

reporting During 2003-04, the Canberra-based programmes reported 26 incidents or accidents under section 68 of the Occupational Health and Safety (Commonwealth Employment) Act 1991. Additionally, Parks Australia reported 35 accidents or incidents, and the Australian Antarctic Division reported 11 accidents or incidents under section 68 of the Act.

Comcare conducted one investigation within the Australian Antarctic Division. An investigation conducted by Comcare, and reported in last year's annual report, is under review by Comcare. One internal investigation report was requested by

Comcare and supplied by the Department.

There were no matters to report under section 30, 45, 46 or 47 of the Act.

Compensation and rehabilitation

Under its rehabilitation policy and guidelines, the Department continued to support injured and ill employees and provided an early return to work programme. During 2003-04, there were 12 return to work plans in place for injured staff, and five return to work plans ceased during this period. Within the Australian Antarctic Division, 19 new workers' compensation claims were made and 10 existing and ongoing claims remain open.

312 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Appendix 2 - Freedom of information

This report is presented in accordance with the requirements of section 8 of the Freedom of Information Act 1982.

The Department received 35 applications pursuant to the Freedom of Information Act 1982 during the 2003-04 financial year. No applications were made to the Administrative Appeals Tribunal.

The Act extends to the Australian community the right to obtain access to information in the possession of the Australian Government.

Access is limited only by exemptions necessary for the protection of essential public interests and the private and business affairs of persons in respect of whom information is collected and held by departments and statutory authorities.

Section 8 of the Act requires agencies to make available information about their functions, organisation and operations. This information is contained in the body of this annual report.

Details of the categories of documents each agency maintains and the facilities for public access are also required under section 8 of the Act.

Categories of documents maintained by the Department

The Department holds a large range of documents, which are described in the general policy, specific and parliamentary categories set out below. In accordance with the Archives Act 1983 documents may have been transferred into archival custody or destroyed.

General policy

Administrative files, consultants' reports, memoranda of understanding, agreements, permits, licences, submissions, guidelines for programmes, grant documents, manuals, financial records, staffing records, instructions of the Secretary, legal documents, and tender evaluations.

Specific

Australian Antarctic Division records, committee records, and court documents and records.

313

Parliamentary

Briefing documents, Cabinet documents, ministerial submissions, policy advice, ministerial correspondence, explanatory memoranda to Acts, Ordinances and Regulations.

Arrangements for outside participation

In the formulation of policy by the Department and in the administration of legislation and schemes, the Department consults with members of the public and bodies outside the Australian Government's administration.

General participation is possible by making oral or written representations to the Minister or the Department or putting submissions to the various working groups on matters chaired by the Department.

The Antarctic Science Advisory Committee, which advises the Government on priority areas in Antarctic research, solicits research proposals from the scientific community within Australia and overseas, and provides funding and logistic support for approved scientific projects.

Formal arrangements under the Environment Protection (Sea Dumping) Act 1981, Sea Installations Act 198Z Environment Protection and Biodiversity Conservation Act 1999, and the environmental impact assessment provisions of the Antarctic Treaty (Environment Protection) Act 1980 provide for proposals to be examined publicly and for comments to be received.

Formal arrangements under the Territory of Heard Island and McDonald Islands Environment Protection and Management Ordinance 1987 provide for public consultation during the development of management plans.

Formal arrangements under the Environment Protection (Alligator Rivers Region) Act 1978 provide for public consultation with respect to scientific research programmes and matters relating to the effects on the environment in the Alligator Rivers region of uranium mining operations.

Procedures for gaining access to information

Freedom of information matters within the Department are handled by the legal section in the Policy Coordination and Environment Protection Division. Contact details for the freedom of information officer are:

Phone: (02) 6274 1578 Fax: (02) 6274 1587 Email: foi..contact_officer@deh.gov.au

314 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Written requests for access to documents should be addressed to:

The Freedom of Information Coordinator Legal Section Department of the Environment and Heritage GPO Box 787 Canberra ACT 2601

For enquiries specific to the Antarctic contact:

The Director Australian Antarctic Division Kingston las 7050

For a list of the Department's publications visit www.deh.gov.au/aboutlpublications.

315

Appendix 3

- Advertising and market research

This report is presented in accordance with the requirements of section 311A of the Commonwealth Electoral Act 1918.

Type of expense 2003-04 expenses

Market research

Artcraft Research $46860

Colmar Brunton Market Research $59353

Miliward Brown Australia $158277

Worthington Di Marzio $5500

Sub-total $269990

Media advertising

Attorney General's Department $11 957

Avant Cards $10236

Hayes Berry Tehan $4508

HMA Blaze $363599

Lowe Hunt $4523

Osborn Southgate $5221

Smart $4437

Teleconnect Australia $5380

Universal McCann $1 578 197

Zoo Communications $139546

Sub-total $2 127 604

Direct mail

Canberra Mailing $6145

Lane Print Group $1890

Sub-total $8035

Total $2405629

316 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Appendix 4 - Environmental performance'

This report is presented in accordance with the requirements of section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

1. How the activities of the organisation, and the administration of legislation by the organisation, accord with the principles of ecologically sustainable development (section 5 16A(6)(a))

The following activities of the Department accord with the principles of ecologically sustainable development:

â¢ administering and enforcing the Environment Protection and Biodiversity Conservation Act 1999 and the Natural Heritage Trust ofAustrcilia Act 1997, both of which explicitly recognise these principles; and

â¢ working with other portfolios to reach positions for Australia to pursue within international multilateral forums and organisations. In 2003-04 international activities to promote ecologically sustainable development focused on:

reviewing progress to date in the water, sanitation and human settlements themes in the 12 111 session of the United Nations Commission on Sustainable Development (CSD12);

providing policy advice to ensure that trade and environment policies are mutually supportive, including active participation in the negotiation of the Free Trade Agreement with the United States and meetings of the World Trade Organization's Committee on Trade and Environment; and

continuing work on a number of World Summit for Sustainable Development voluntary partnerships with partner countries.

The following activities accord with the principle of integrating environmental, social, and economic considerations:

â¢ providing advice on and assessing referrals for action under the Environment Protection and Biodiversity Conservation Act 1999 â¢ contributing to the development of the energy white paper process and Securing Australia's Energy Future report;

â¢ addressing use and development issues affecting the coastal zone through the work of the Intergovernmental Coastal Advisory Group to implement the Framework for a National Cooperative Approach to Integrated Coastal Zone Management;

I See also the triple bottom line report under 'Other reports'.

317

â¢ contributing to the development of the National Water Initiative and the National

Guidelines for Water Recycling; â¢ continuing to integrate the interests of all stakeholders in decision-making processes including under the Natural Heritage Trust, the National Action Plan for Salinity and Water Quality, and the regional marine planning process; â¢ working in partnerships with Australian businesses and industry to improve their

triple bottom line; and â¢ carrying out initial trials of alternative livelihoods for Indonesian fishers in order to alleviate the impacts of traditional fishing on Australian marine environments.

The following activities accord with the principles of ecologically sustainable development, especially by employing or promoting the use of the precautionary principle:

â¢ making decisions under the Environment Protection and Biodiversity Conservation Act 1999 (section 391); â¢ providing advice, through the Minister; to the Gene Technology Regulator on environmental issues related to the release of genetically modified organisms

into the environment; and â¢ providing advice to the Australian Pesticides and Veterinary Medicines Authority and National Industrial Chemicals Notification and Assessment Scheme on environmental issues related to the use of agricultural, veterinary and industrial

chemicals.

The following activities accord with the principles of ecologically sustainable development by aiming to promote conservation of the environment for the benefit of future generations:

â¢ contributing to the conservation of biodiversity, including: - improving information on the quality and extent of Australia's native vegetation through the National Vegetation Framework for the Management and Monitoring of Australia's Native Vegetation; - developing a comprehensive monitoring and reporting mechanism, and

sustainable grazing and fire management strategies for rangelands; identifying 15 national biodiversity 'hotspots' and funding the implementation of hotspot conservation actions; and funding the State ofAustralia 's Birds 2003 report; â¢ contributing to the conservation of biodiversity in marine ecosystems including

through establishing the National Turtle Recovery Group;

318 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

â¢ contributing to the conservation of wetlands and their biodiversity through:

- providing research services as well as technical and policy advice to wetland managers through the Environmental Research Institute of the Supervising Scientist; and

- working with other jurisdictions to identify additional nationally important wetlands for including or updating data in A Directory of Important Wetlands in Australia;

â¢ contributing to the conservation of river systems through:

- the Rivercare programme;

- facilitating the implementation of the Water Reform Framework, the Lake Eyre Basin Intergovernmental Agreement and the National Water Quality Management Strategy;

- participating in the Murray-Darling Basin Initiative and the Living Murray Initiative; and

- funding the national roll out of the International Council for Local Environment Initiative's Water CampaignTM;

conserving representative terrestrial and marine ecosystems through the National Reserve System. Activities in 2003-04 included:

- acquisition of twenty properties with a combined area of 291 791 hectares for preservation;

- addition of two new Indigenous Protected Areas totalling 5106 hectares; and

- addition of 259 square kilometres to the Ningaloo Marine Park;

â¢ facilitating the protection of wildlife and wildlife habitat on private land through:

- purchasing properties of high conservation value through the Bush For Wildlife Initiative's revolving fund agreements; and

- disseminating information on conservation covenants and taxation incentives through workshops and brochures;

â¢ protecting the environment from the long-term effects of harmful substances. Activities in 2003-04 included:

- strengthening the ozone protection regime through amendments to the Ozone Protection Act 1989, and establishing the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989,

- implementing national initiatives to reduce the level of air pollutants in major metropolitan centres, including:

â¢ funding agreements to test and repair high polluting vehicles under the Diesel Vehicle Emissions National Environment Protection Measure;

319

â¢ implementing the Fuel Quality Standards Act 2000,

and

â¢ funding research studies on air toxics;

managing Australia's National Halon Bank;

- facilitating the establishment of the ChemClear programme—an initiative for regular collection of unwanted farm chemicals by the agricultural industry;

- contributing to the development of a national implementation plan for reducing and, where feasible, eliminating the release of persistent organic pollutants;

regulating the movement of hazardous wastes through the Hazardous Waste (Regulation of Exports and Imports) Act 1989, including enforcement action relating to electronic waste;

- implementing the permit system under the Environment Protection (Sea Dumping) Act 1981;

- implementing the ban on the use of antifouling paints on ships in Australia through the Antifouling Programme; and

- funding the development of Water Quality Improvement Plans for coastal water quality hotspots under the Coastal Catchments Initiative;

â¢ achieving the further strengthening of the protection and management of Australia's natural and cultural heritage through the amendment to the Environment Protection and Biodiversity Conservation Act 1999,

â¢ identifying and conserving Australia's natural, historic and cultural heritage, including Indigenous heritage areas and objects, and working with Australia's regional neighbours to protect heritage for the benefit of future generations, including through:

- assisting the Minister and the Australian Heritage Council in the nomination, assessment and listing processes for the newly created National Heritage List and Commonwealth Heritage List; and

- working with Australian Government agencies on the development of management plans and heritage strategies for places entered on the Commonwealth Heritage List;

â¢ protecting the World Heritage values of Australia's World Heritage properties, including through:

- regulation, including the consideration of 23 proposed actions, predominantly in, or adjacent to, the Great Barrier Reef and the Wet Tropics of Queensland;

- working on management plans for World Heritage properties;

- undertaking consultations for the development of possible future nominations; and

320 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

- nominating the Royal Exhibition Building and the Canton Gardens, Melbourne for inscription on the World Heritage List;

working in partnership with stakeholder groups, including:

- the National Natural Resource Management Facilitator Network to enhance the capacity of regional bodies and other key stakeholders to prepare regional natural resource management plans;

- community conservation activity networks, such as the Threatened Bird Network and the Threatened Species Network;

- heritage peak bodies, Indigenous communities and the tourism industry to provide information on the new heritage legislation and to promote best practice in heritage management; and

- community-based environment and heritage groups to assist with the administrative costs of their activities through the Grants to Voluntary Environment and Heritage Organisations programme;

working in collaboration with other parties to the Antarctic Treaty and contributing to the conservation of the biodiversity and ecological integrity of Australia's Antarctic and sub-Antarctic territories and the Southern Ocean, including through:

- achieving Antarctic Specially Managed Area status for Mawson's Huts at Cape Denison;

- playing a lead role in the Commission for the Conservation of Antarctic Marine Living Resources to better manage exploratory and established fisheries, to minimise by-catch and to combat illegal fishing;

- contributing to the development of the Agreement for the Conservation of Albatrosses and Petrels, which came into effect in 2004;

- continuing and enhancing research work on the Antarctic and the Southern Ocean, including research on Southern Ocean whales; and

- completing a major research voyage around Heard Island to examine food web linkages to inform the sustainable management of the fishery in the region; and

â¢ collaborating with other countries and providing assistance to regional countries to promote the conservation of the environment including through:

- a Joint Statement on Environmental Co-operation with the United States signed on 18 May 2004;

- work with Japan on migratory birds, climate change, albatrosses and petrels, meteorology, World Heritage, and polar research; and

- work with Pacific regional countries in the areas of wetlands conservation, chemicals management and climate variability assessment.

321

The following activities accord with the principles of ecologically sustainable

development by ensuring that biodiversity and ecological integrity are fundamental to decision-making:

â¢ administering the environmental assessment and approvals processes under the Environment Protection and Biodiversity Conservation Act 1999 to protect the Australian environment, especially matters of national environmental significance; â¢ undertaking review work on the Australian Government's marine compliance

and enforcement systems and procedures; â¢ working to support accreditation of 33 integrated regional natural resource management plans (16 plans under the Natural Heritage Trust and 17 plans under the National Action Plan for Salinity and Water Quality) and working with

other jurisdictions and regional bodies to prepare investment strategies; â¢ developing revised and finalised recovery plans and threat abatement plans for threatened species and communities. In 2003-04: - 23 recovery plans covering 27 terrestrial species were made or adopted, while

35 recovery plans, covering 47 listed species were forwarded for the Minister's consideration; - habitat critical to the survival of the endangered Black-eared Miner, Manorina melanotis, was added to the Register of Critical Habitat; and

- the Tammar Wallaby, Macropus eugenii eugenii, a South Australian mainland sub-species, was reintroduced to the Australian mainland; â¢ contributing to the management of threats posed by invasive species on both land and the marine environment through the Introduced Marine Pests

Programme, the Ballast Water Remediation Programmes and the National Weeds Strategy. Activities in 2003-04 under these programmes included: - completing the Ballast Water Remediation programme; developing the National System for the Prevention and Management of

Introduced Marine Pest Incursions; - funding projects related to the management of invasive species; and - working closely with the Australian Customs Service and enforcement agencies to enforce the provisions of the wildlife trade amendments to the

Environment Protection and Biodiversity Conservation Act 1999, especially through assessing applications for and issuing permits; â¢ completing assessments against the Guidelines for Ecologically Sustainable Management of Fisheries for 19 fisheries, while continuing the assessment

process for a further 64 fisheries;

322 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

â¢ assessing the long-term impacts of nuclear actions through research in and monitoring of the Alligator Rivers Region, and conducting investigations into incidents at mine sites to assess any environmental impacts;

â¢ providing high quality information to enable informed decision-making relating to the protection of the environment and the conservation of biodiversity, including through: - conducting risk assessments for agricultural, veterinary and industrial

chemicals; - carrying out studies on dioxin levels and risk assessments under the National Dioxin Programme; providing publicly accessible information through the National Pollutant

Inventory and other online environmental information products such as the Biodiversity Information Online, the National Vegetation Information System, and the National Chemical Information Gateway; - conducting deepwater and benthic studies in the Commonwealth waters

of Ningaloo and Lord Howe Island Marine Parks and the Heard Island and McDonald Islands Marine Reserve Conservation Zone; and - producing education, information and training products to build capacity for Weed Management; and â¢ contributing to international decision-making on the conservation of biodiversity

and maintenance of ecological integrity through active participation in international forums and through bilateral cooperation with countries especially in the Asia-Pacific region. In 2003-04, the Department's activities in this area included: - representing Australia's interests in the meetings of international environment

treaties and their associated bodies, including the Convention on Biological Diversity; the Convention on Migratory Species; the Ramsar Convention; the Convention on International Trade in Endangered Species; the Convention to Combat Desertification; the Basel Convention; the Stockholm Convention; the Rotterdam Convention; the Antarctic Treaty; and the Convention on the Conservation of Marine Living Resources; - contributing to the development of the Strategic Approach to International

Chemicals Management initiative to identify international priorities in chemical safety; - continued assistance to Papua New Guinea in the areas of governance and natural resource management, forestry and forest biodiversity conservation,

and partnership building; and - enhancing local government planning and management capacity in the Lorentz National Park World Heritage property in West Papua, and in building Indonesia's oceans policy capacity.

323

The following activities accord with the principles of ecologically sustainable

development by aiming to improve valuation, pricing and incentive mechanisms:

facilitating the development and implementation of environmental management standards by Australian Government agencies and state and territory agencies. Activities in 2003-04 included:

- developing environmental purchasing guidance documents for Australian Government procurement, in collaboration with the Australian Greenhouse Office and the Department of Finance and Administration;

- commencing a feasibility study on a water efficiency policy for Australian Government agencies; and

- supporting environmental triple bottom line and sustainability reporting by Australian Government agencies;

â¢ developing the structural adjustment package for the Representative Areas Programme for the Great Barrier Reef Marine Park; â¢ implementing the National Market Based Instruments Pilot Programme under the National Action Plan for Salinity and Water Quality;

â¢ participating in the Productivity Commission's Inquiry into National Competition Arrangements;

â¢ providing advice on aspects of economic modelling and the incorporation of environmental factors in the Australia-United States Free Trade Agreement; and â¢ working in partnership with Australian businesses and industry to improve valuation by industry to include environmental and social costs and benefits.

Activities in 2003-04 included: - working with the finance sector to increase the understanding of the commercial value of sound environmental and social management; - continuing the partnership with industry associations through voluntary eco-

efficiency agreements;

continuing to encourage corporate sustainability reporting, including the publication of Corporate Sustainability - an Investor Perspective (the Mays Report);

- facilitating improved environmental management in the building and construction sector through finalising work on the National Australian Built Environment Rating System, and through collaborative work with the Australian Building Codes Board and Master Builders Australia; - promoting minimisation of waste production and improvement of

environmental performance by all participants in the supply chain through product stewardship arrangements, including work on packaging, plastic bags, degradable plastics, electrical and electronic products, and the sustainable management of used lubricating oil and used tyres; and

324 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

- working with other jurisdictions and relevant industry on the Water Efficiency Labelling and Standards Scheme and towards introducing the Water Efficiency Labelling and Standards Bill 2004 in the Parliament in June 2004.

2. How the outcomes specified in a relevant Appropriations Act contribute to ecologically sustainable development (section 5 16A(6)(b))

The Department's role is to achieve two major outcomes for the Australian Government. The outcomes are:

1. the environment, especially those aspects that are matters of national environmental significance, is protected and conserved; and 2. Australia's interests in Antarctica are advanced.

Outcome 1 contributes directly to ecologically sustainable development by protecting and conserving the environment, with its major focus on threats that are serious enough to be of national significance. Thus it contributes to protecting biodiversity and ecological systems and to maintaining the health, diversity and productivity of the environment for future generations. Outputs, which deliver the ecologically sustainable development aspects of Outcome 1, are discussed in section 1 above on how the Department's activities accord with the principles of ecologically sustainable development.

Outcome 2 does not explicitly contribute to ecologically sustainable development, but one of the goals of the Department's Australian Antarctic Division is to protect the Antarctic environment, the Southern Ocean, and the Territory of Heard Island and McDonald Islands, including by developing ways to minimise human impact,

remediating past work sites, administering environmental legislation, developing policy, and undertaking research. It thus contributes to ecologically sustainable development by providing information, which enables biodiversity conservation and ecological systems to be considered in decision making, and by protecting the

health and diversity of the Antarctic environment for future generations.

3. Effect of the organisation's activities on the environment (section 5 16A(6)(c))

The Department's mission of 'national leadership in the protection and conservation of the environment' ensures that the effect on the environment of most of its activities, including policies, programmes and administration of legislation, is a positive one. Positive effects of the Department's activities on the environment in

2003-04 are detailed throughout this annual report.

325

In the course of its normal daily operations, the Department also contributes

to a range of negative impacts on the environment through its consumption of electricity, petrol, water, paper and other materials and through its generation of waste. The Department's office tenant light and power at the John Gorton Building for 2003-04 was 1 447 630 kilowatt hours. The Department's vehicle fleet used 55 103 litres of petrol and travelled 499 586 kilometres in 2003-04. The combined gross greenhouse emissions were 530 tonnes of CO0 2-e ('tonnes of carbon dioxide equivalent—calculated by multiplying the actual mass of emissions by the appropriate global warming potential factor published by the Intergovernmental Panel on Climate Change). The Department's paper consumption was 15.08 reams per person per year. Figures for water, material consumables other than paper, and the total amount of waste generated are not available. For more information, see the triple bottom line report under 'Other reports'.

4. Measures being taken by the organisation to minimise the impact of its activities on the environment (section 5 16A(6)(d))

Through a structured Environmental Management System, which has been certified to the international standard ISO14001, the Department monitors a range of its operational activities including the management of energy, water and wastes, the departmental fleet, and purchasing. The system provides a framework for considering and minimising environmental impacts within the context of continual improvement.

Key environmental management actions and performance for 2003-04 included:

â¢ Environmental Management System—the ISO 14001 certification of the Environmental Management System was renewed and an external review of the system was commissioned. The Department's Executive agreed to a series of best practice upgrades recommended by the external review; many of these changes are underway. â¢ Energy—the Department purchased 100 per cent accredited Green Power (a

national scheme that sets stringent environmental and reporting standards for renewable energy products offered by electricity suppliers) for its office tenant light and power at the John Gorton Building. â¢ Waste—the Department generated 250 tonnes of waste, or 263 kilograms per

employee. Of this total, approximately 133 tonnes (53 per cent) were recycled, the remainder going to landfill. The Department recycled 97 375 kilograms of paper, 22 225 kilograms of co-mingled recyclables, 22 060 kilograms of organic waste, 171 kilograms of printer and toner cartridges, and 173 kilograms of fluorescent tubes. The Department, its information technology services provider and the cafÃ© operating in the John Gorton Building sent 107 569 kilograms of waste to landfill.

326 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

â¢ Greenhouse—through better management of its energy use, fleet, and waste the Department reduced its combined gross greenhouse emissions. The Department's combined gross greenhouse emissions were 530 tonnes of CO 2-e, while the net emissions (after offsets) were 388 tonnes. If the Department had

not undertaken its Environmental Management System initiatives, the business as usual emissions would have been 1821 tonnes, or almost five times its net emissions. â¢ Water—the Department continued to reuse grey water in the John Gorton

Building. Flow reduction devices, leak reporting and water efficient appliances all helped to reduce its consumption of potable mains water. As at 30 June 2004, the Department did not have separate water metering for its tenancy. â¢ Materials—by using electronic circulation of press clips and duplex trays for

all printers, the Department reduced its paper consumption to 15.08 reams per person per year. The Department purchased 14 300 reams of recycled A4 paper, or approximately 30 sheets per person per day. This was a substantial reduction from the 45 sheets per person per day baseline figure established by a paper

audit carried out in 2002. The Department used recycled paper, made from 60 per cent recycled fibre (produced from Australian waste) and 40 per cent sustainable new fibre, for all standard A4 printing or photocopying tasks.

Additionally, the Department:

â¢ continued contract arrangements guaranteeing ten per cent of electricity supply is sourced from greenpower for the Australian National Botanic Gardens, and implemented a 25 to 40 per cent reduction in water use by the Gardens; â¢ maintained certification to IS014001 standards for the Australian Antarctic

Division's Environmental Management System; â¢ removed 1000 cubic metres of contaminated material from the Thala Valley waste tip near Casey as the first stage in a ten year plan to clean up Australia's old waste sites in Antarctica;

â¢ deployed disease response kits to all Australian stations for investigating the cause of death, if unusual numbers of dead wildlife are discovered in Antarctica; and â¢ established a new international collaboration with Canada to work towards

environmental guidelines for polar regions.

327

Mechanisms, if any, for reviewing and increasing the effectiveness of these measures (section 5 16A(6)(e))

The Environmental Management System for the Canberra offices is reviewed every three years for certification to the ISO 14001 standard. This review, as well as internal reviews of the environmental management systems for the other office locations, is used to identify and address the negative environmental impacts within the context of continual improvement.

Key environmental management goals for 2004-05 include:

â¢ Environment Management System—retain ISO 14001 certification and implement the recommendations of the Environmental Management System review. â¢ Energy—upgrade metering arrangements and decrease tenant light and power consumption to 4500 megajoules per person per year. â¢ Waste—develop a methodology to gather robust data on waste sent to landfill,

conduct a full waste audit and achieve a 100 per cent recycling rate for fluorescent tubes and loners. â¢ Greenhouse—renew the Greenhouse Challenge agreement (which provides a framework for undertaking and reporting on actions to abate greenhouse

gas emissions) with new targets, and identify and assess options for offsetting emissions associated with staff air travel. â¢ Water—investigate the feasibility of installing water sub-meters to produce accurate figures on the Department's tenancy water consumption. â¢ Materials—review office machines to reduce paper use, develop an

environmental printing policy for outsourced printing, and conduct a new paper audit.

328 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Appendix 5 - Discretionary grant programmes

The Department administers a range of discretionary grant programmes. A full list of grant recipients is available on request from the Department. For more information about Natural Heritage Trust grants, see the Trust's annual report at www.nht.gov.au/publications.

Note that, where possible, the grant figures shown include goods and services tax.

Atmosphere

Air Pollution in Major Cities Programme $974845

Objective: To develop national strategies and standards to minimise the adverse impacts of air pollution.

Diesel National Environmental Protection Measure $3 633 000

Objective: To support the development and implementation of in- service emissions testing capabilities for petrol and diesel vehicles, where diesel emission testing is in conjunction with the making and/or implementation of the Diesel Vehicle Emissions National Environmental Protection Measure.

Sustainable Cities Programme

Objective: To develop national standards, increase compliance and enforcement activities and give priority to national initiatives in areas such as air quality, fuel quality, ozone depleting substances and renewable energy.

Assessments and approvals

Better Science for our Decision-Making

Objective: To provide scientific support to ensure best practice implementation of the Commonwealth's Environment Protection and Biodiversity Conservation Act 1999 obligations.

$40000

$4400

329

Biodiversity

Bushcare Programme $22000

Objective: To reverse the long-term decline in the quality and extent of Australia's native vegetation cover.

Australian Biological Resources Study Participatory $1 839 000

Programme

Objective: To provide funding for taxonomic and biogeographic research and training that leads to the scientific documentation of Australia's biodiversity. Projects that meet National Research Priorities are funded under this programme.

Heritage

Historic Shipwrecks Programme $399 770

Objective: To implement the Historic Shipwrecks Act 1976 and ensure the protection of maritime archaeological sites while encouraging responsible public access.

Cultural Heritage Projects Programme $2 143 654

Objective: To support the conservation of historic places on the Register of the National Estate, its interim list or state heritage registers. Projects that aim to identify Indigenous heritage places for appropriate listing or conservation planning may also be supported.

Cathedral Restoration Projects $6 105 000

Objective: To administer projects for the restoration and conservation of St Paul's Cathedral (Melbourne) and St George's Cathedral (Perth).

Rural and Regional Historic Hotels Programme $808321

Objective: To provide one-off assistance, on a matching basis, for the preservation and restoration of rural and regional hotels across Australia, giving priority to hotels with strong community significance and works which would provide socio-economic benefits for those communities.

330 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Commemoration of Historic Events and Famous Persons $33 369 Programme

Objective: To commemorate people, events and places of national historical significance providing funds primarily to care for the graves of former Australian prime ministers and for erecting suitable plaques. The programme has grown to include other kinds of commemorative monuments, exhibitions, surveys of historical sites and other projects, all of national significance.

Jabiru Area School Indigenous Heritage Education Project $25 000

Objective: To support and maintain the cultural heritage traditions of the Indigenous people in the Kakadu region including the Kakadu National Park World Heritage Area.

Asia-Pacific Focal Point for World Heritage $18875

Objective: To promote the World Heritage Convention in our region by hosting the Asia-Pacific Focal Point for World Heritage. The Focal Point has continued to support a range of strategic activities in our region, including projects for capacity building, regional networking and transfer of expertise, awareness raising, planning and best

practice management of World Heritage values.

Regional Natural Heritage Programme $225907

Objective: To help conserve outstanding biodiversity in South-East Asia and the Pacific regions. (The three-year Regional Natural Heritage Programme was launched by the Prime Minister on 18 February 2004.)

Industry

Oil Recycling $2 354 586

Objective: To support the product stewardship arrangements for waste oil and provide targeted grants to address barriers to oil recycling.

Sustainable Cities Programme $638379

Objective: To develop national standards, increase compliance and enforcement activities, and give priority to national initiatives in areas such as the management and control of chemicals, pollutants, hazardous waste, water quality, environmental information and

education, and waste management.

331

Environment Protection Ad hoc Grants

Objective: To provide funding to organisations to protect the environment of Australia through national leadership and cooperation.

National parks and reserves

$59 269

Indigenous Protected Areas Programme $4 191 000

Objective: To establish and manage protected areas on Indigenous-owned estates and to establish joint management arrangements for government-owned protected areas between Indigenous groups and the relevant government nature conservation agencies.

National Reserve System Programme $3 598 000

Objective: To assist with the establishment and maintenance of a comprehensive, adequate and representative system of protected area reserves in Australia.

Antarctica

Australian Antarctic Science Grants $740 578

Objective: To provide grants for high quality scientific research relevant to the Government's Antarctic programme goals.

Project Jonah $6600

Objective: To produce a report on the historic role of non-government organisations in the development of Australia's policy on protecting whales.

Public affairs and environment education

Environment Institute Australia and New Zealand - developing a certification scheme for environmental professionals

Objective: To create a certification scheme for environmental practitioners that assists government, industry, and the broader community in identifying and verifying the qualifications, accountability and ethics of professionals in environmental practice.

332 Department of the Environment and Heritage Annual Report 2003-04

$27500

Other mandatory information

Australian Association for Environmental Education

Conference 2004

Objective: To support the 2004 Biennial Australian Association for Environmental Education Conference: Creating Ethical Communities Now - footprints, pathways, possibilities.

Housing Industry Association - Green Smart Module, Sustainable Water Management and Application Course

Objective: To develop of course modules that allow industry professionals to gain more detailed and practical training in specific areas of sustainability within the housing industry.

Marine Education Society ofAustralasia /Australian Marine Education Alliance - One Ocean, Pacific Basin Forum

Objective: To facilitate a network of marine environmental educators in the Pacific Basin, Through identification and sharing of experiences, the forum seeks to maximise the effectiveness of local strategies used to educate for the sustainable use of the ocean.

Rural Skills Australia - Rural Production and Conservation and Land Management Training Packages

Objective: To develop a suite of competency-based training resources to support the teaching of sustainability. The resources will draw upon learning guides from Rural Skills Australia in addition to publicly available material from a range of government departments and agencies.

School of Social Science and Planning, Royal Melbourne Institute of Technology

Objective: To develop a guide to environmental jobs. The project will survey the range of environmental jobs and scope of environmental careers in Australia and will result in a report on environmental career opportunities. Case studies on environmental career paths in each employment sector will also be developed.

Appendices

$33000

$27500

$8250

$40150

$34100

333

Prime Minister's Award for Environmentalist of the Year 2003

Objective: To select, promote and present the Prime Minister's Award for Environmentalist of the Year as part of the celebrations for World Environment Day.

Environment Australia's sponsorship of the Peter Hunt Eureka Prize for Environmental Journalism, 2003

Objective: To recognise particular work or overall performance in the field of environmental journalism. Special emphasis is given to work that informs and influences public opinion and attitudes, and that recognises and promotes the principles of ecologically sustainable development.

Additional

$100000

$18000

Grants to Voluntary Environment and Heritage Organisations $958 890

Objective: To provide administrative funds to help community-based environment and heritage organisations to conserve and protect the natural environment and cultural heritage.

Environment Protection and Biodiversity Conservation Act $102000 Awareness Programme

Objective: To promote community awareness and understanding of the Act and participation in its operation.

Conservation of Listed Migratory Water Birds $168 175

Objective: To protect migratory shorebirds by supporting regional activities to conserve important habitat, and by collating and publishing important information on migratory bird numbers and habitats in Australia to support advice on referrals and assessments.

Development of National Recovery Plans $5000

Objective: To recover and protect marine wildlife through recovery plans for threatened whales, marine turtles, sharks, seals, seabirds and other listed marine species.

334 Department of the Environment and Heritage Annual Report 2003-04

Other mandatory information

Appendices

Appendix 5 - List of Acts administered by the

Department

Aboriginal and Torres Strait Islander Heritage Protection Act 1984 Antarctic Marine Living Resources Conservation Act 1981

Antarctic Treaty Act 1960

Antarctic Treaty (Environment Protection) Act 1980

Australian Antarctic Territory Acceptance Act 1933

Australian Antarctic Territory Act 1954

Australian Heritage Council Act 2003

Captains Flat (Abatement of Pollution) Agreement Act 1975

Environment Protection (Alligator Rivers Region) Act 1978

Environment Protection and Biodiversity Conservation Act 1999

Environment Protection (Sea Dumping) Act 1981

Fuel Quality Standards Act 2000

Hazardous Waste (Regulation of Exports and Imports) Act 1989

Heard Island and McDonald Islands Act 1953

Hindmarsh Island Bridge Act 1997

Historic Shijwrecks Act 1976

Koongarra Project Area Act 1981

Lake Eyre Basin Intergovernmental Agreement Act 2001

National Environment Protection Council Act 1994

National Environment Protection Measures (Implementation) Act 1998

Natural Heritage Trust of Australia Act 1997

Ozone Protection and Synthetic Greehouse Gas Management Act 1989

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995

Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995

Product Stewardship (Oil) Act 2000

Protection of Movable Cultural Heritage Act 1986

Removal of Prisoners (Territories) Act 1923, insofar as it relates to the Territory of Heard Island and McDonald Islands and the Australian Antarctic Territory

Sea Installations Act 1987

Sea Installations Levy Act 1987

Wet Tropics of Queensland World Heritage Area Conservation Act 1994

335

.40

\:'â¢ â¢\ .\ ,\

Accrual accounting

is the system of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Administered items are expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Administered expenses include grants, subsidies and benefits, and may fund the delivery of third party outputs. For example the Department administers appropriations for the Australian Government's Natural Heritage Trust to provide grants This annual report refers to appropriations for administered items as 'administered appropriations'.

Additional estimates is a process where the Parliament may appropriate more funds to portfolios if the amounts appropriated at Budget time are insufficient.

Appropriations are authorisations by the Parliament to spend monies from the Consolidated Revenue Fund. Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates.

Biodiversity in essence means the variety of life. The term 'biodiversity' is a contraction of, and synonymous with, biological diversity. The term 'biological diversity' is defined in Article 2 of the Convention on Biological Diversity to mean 'the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems' (a similar definition appears in the glossary to the Ramsar Convention on Wetlands available at www.ramsar.org/about_glossary2_e.htm). Apparently this term was first defined in 1980 to include two related concepts, genetic diversity (the amount of genetic variability within species) and ecological diversity (the

number of species in a community of organisms). In terms of the diversity between species, so far about 1.75 million species have been identified, with estimates of the total number of species ranging from three to 100 million. Apparently the contracted form 'biodiversity' was coined in 1986. See the glossary of terms related to the Convention on Biological Diversity available on the Internet at bch-cbd.naturalsciences.be/belgium/glossary/glossary.htm.

Bioregion in essence means a geographic area characterised by a combination of physical and biological characteristics—for example, terrain, climate and ecological communities. The glossary of terms related to the Convention on Biological Diversity (available on the Internet at bch-cbd.naturalsciences.be/belgium/ glossary/glossary.htm) provides the following definition: 'a territory defined by a combination of biological, social, and geographic criteria, rather than geopolitical considerations; generally, a system of related, interconnected ecosystems'. The term

338 Department of the Environment and Heritage Annual Report 2003-04

Glossary

'bioregion' is a contraction of biogeographic region and is usually synonymous with that term. The glossary to the Ramsar Convention on Wetlands (available at www.ramsar.org/about ._glossary2_e.htm) provides the following definition of 'biogeographic region' in relation to wetland management: 'a scientifically rigorous determination of regions as established using biological and physical parameters such as climate, soil type, vegetation cover, etc.' Bioregions are a useful way to

analyse patterns of biodiversity. The definition of a particular bioregion depends on the scale at which its characteristic features are measured. Examples include the Interim Biogeographic Regionalisation for Australia (see www.deh.gov.au/ parks/nrs/ibra) and Interim Marine and Coastal Regionalisation for Australia (see

www.deh.gov.au/coasts/mpa/nrsmpa/imcra.html).

Corporate governance is the process by which agencies are directed and controlled. It is generally understood to encompass authority, accountability, stewardship, leadership, direction and control.

Departmental items are assets, liabilities, revenues and expenses that are controlled by the agency in providing its outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most employee expenses, supplier costs and other administrative expenses incurred. This annual report refers to appropriations for departmental

items as 'departmental appropriations'.

Ecologically sustainable is used to describe activities that meet present needs without compromising the ability to meet future needs, because of damage to the environment. For example, ecologically sustainable development is 'using, conserving and enhancing the community's resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased' (source: National Strategy for Ecologically Sustainable

Development, available at www.deh.gov.au/esd/national/nsesd/strategy) . Ecologically sustainable use of natural resources means 'use of the natural resources within their capacity to sustain natural processes while maintaining the life-support systems of nature and ensuring that the benefit of the use to the present generation

does not diminish the potential to meet the needs and aspirations of future generations' (source: Environment Protection and Biodiversity Conservation Act 1999).

Ecological communities are 'any naturally occurring group of species inhabiting a common environment, interacting with each other especially through food relationships and relatively independent of other groups. Ecological communities may be of varying sizes, and larger ones may contain smaller ones' (source: the

glossary to the Ramsar Convention on Wetlands, available at www.ramsar.org/ about .glossary2_e.htm). In the Environment Protection and Biodiversity Conservation Act 1999 they are 'assemblages of native species that inhabit particular areas in nature'.

339

Ecosystem services or ecological services are 'ecological or ecosystem processes or functions which have value to individuals or to society' (source: glossary of terms related to the Convention on Biological Diversity, available at bch-cbd.naturalsciences.be/belgium/glossary/glossary.htm). The term encompasses the range of resources and services provided by the natural environment and the life forms it contains. It is often used to characterise services that are fundamental to the economy but that are not traded or priced because historically human intervention was not needed to maintain them. For example, the environment naturally provides services such as decomposing wastes, pollinating crops, absorbing carbon dioxide and maintaining habitat for useful animals and plants. It also produces resources such as oxygen, fresh water, fertile soil, fish, timber, and pharmaceuticals. Expense is the total value of all of the resources consumed in producing goods and services. Financial results are the results shown in the financial statements of an agency. Integrated natural resource management is a way to ensure that uses of natural resources are ecologically sustainable. It is 'integrated' because it attempts to manage all the activities that could affect natural resources, taking natural processes into account as well. It combines managing uses of natural resources with conservation. To do this it cuts across artificial distinctions such as government agency responsibilities, government or property boundaries, industry sectors and scientific disciplines. In defining management areas it gives priority to natural over human boundaries, for example using river catchments or bioregions as the primary basis for planning and management. Outcomes are the results, impacts or consequence of actions by the Australian Government on the Australian community. They are listed in agencies' portfolio budget statements and portfolio additional estimates statements. Actual outcomes are the results or impacts actually achieved. Outputs are the goods and services produced by agencies on behalf of the Australian Government for external organisations or individuals. Outputs also include goods and services produced for other areas of government external to an agency. In practice, most of the Department's current outputs are expressed in broad terms linked to major environmental themes (see 'Outcome and output structure' in the 'Departmental overview' part of this annual report). Price is the amount the government or the community pays for the delivery of agreed outputs. Purchaser-provider arrangements are arrangements under which the outputs of one agency are purchased by another agency to contribute to outcomes. Purchaser- 340 Department of the Environment and Heritage Annual Report 2003-04

Glossary

provider arrangements can occur between Australian Government agencies or

between Australian Government agencies and state or territory government or private sector bodies.

Revenue is the total value of resources earned or received to cover the production of goods and services.

Special appropriations are monies appropriated by Parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. For example, the Department receives special appropriations under laws that require industry to pay a levy on the import of ozone depleting substances. Special appropriations are not subject to annual budget control by the Parliament, unlike

the annual appropriations.

341

Compliance index

The content of departmental annual reports must meet the requirements of the Australian Parliament's Joint Committee of Public Accounts and Audit, which have the force of law under subsections 63(2) and 70(2) of the Public Service Act 1999. The requirements are published on the website of the Department of the Prime Minister and Cabinet at http://www.pmc.gov.au/docs/govt--index.cfm#Requirements . This annual report complies with the requirements, as shown in the following index.

344 Department of the Environment and Heritage Annual Report 2003-04

Ref Description Requirement Paged

A.4 Letter of transmittal Mandatory iii

AS Table of contents Mandatory v

AS Index Mandatory 349

A.5 Glossary Mandatory 338

A.5 Contact officer(s) Mandatory ix

A.5 Internet home page address and Internet Mandatory ix

address for report

Review by Secretary

9.1 Review by departmental secretary Mandatory 2

9.2 Summary of significant issues and Suggested 3

developments

9.2 Overview of department's performance and Suggested 3

financial results

9.2 Outlook for following year Suggested 4

9.3 Significant issues and developments Portfolio departments 4

- portfolio - suggested

Departmental Overview

10 Overview description of department Mandatory 6

10.1 Role and functions Mandatory 6

10.1 Organisational structure Mandatory 7

10.1 Outcome and output structure Mandatory 9

Ref Description Requirement Page

10.2 Where outcome and output structures differ Mandatory Not applicable from portfolio budget statement format, details of variation and reasons for change

10.3 Portfolio structure Portfolio departments 6

- mandatory

Report on Performance

11.1 Review of performance during the year Mandatory 19-188 in relation to outputs and contribution to outcomes

11.1 Actual performance in relation to Mandatory 36-37,48-54, performance targets set out in portfolio 62-67,72-73,

budget statements and portfolio additional 83-89,104-08, estimates statements 115-18,124-25,

133-34,136, 148-151,159-166, 171-76,183-88,

11.1 Performance of purchaser/ provider If applicable, 195-97 arrangements mandatory

11.1 Where performance targets differ from the Mandatory Not applicable portfolio budget statements and portfolio additional estimates statements, details of both former and new targets, and reasons for the change

11.1 Narrative discussion and analysis of Mandatory 19-188 performance

11.1 Trend information Suggested 19-188

11.1 Factors, events or trends influencing Suggested 19-188 departmental performance

11.1 Significant changes in nature of principal Suggested Not applicable functions! services

11.1 Performance against service charter customer If applicable, Not applicable service standards, complaints data, and the mandatory department's response to complaints

11.1 Social justice and equity impacts Suggested -

11.2 Discussion and analysis of the department's Mandatory 189 financial performance

345

rRef Description

Requirement Page

11.2 Discussion of any significant changes from Suggested 67,89,189-90, the prior year or from budget. 193

11.3 Summary resource tables by outcomes Mandatory 191-94

11.4 Developments since the end of the financial If applicable, Not applicable year that have affected or may significantly mandatory affect the department's operations or financial results in future

Management and Accountability

Corporate Governance

12.1 Statement of the main corporate Mandatory 208-15 governance practices in place

12.1 Names of the senior executive and their Suggested 12-13 responsibilities

12.1 Senior management committees and their Suggested 210-12 roles

12.1 Corporate and operational planning and Suggested 212 associated performance reporting and review

12.1 Approach adopted to identifying areas of Suggested 212-13 significant financial or operational risk and arrangements in place to manage risks

12.1 Certification of fraud measures in place Mandatory 212-13

12.1 Policy and practices on the establishment Suggested 214-15 and maintenance of appropriate ethical standards

12.1 How nature and amount of remuneration Suggested 209-10 for senior executive service employees is determined

External Scrutiny

12.2 Significant developments in external Mandatory 215-19 scrutiny

12.2 Judicial decisions and decisions of Mandatory 215 administrative tribunals

12.2 Reports by the Auditor-General,a Mandatory 215-19 Parliamentary Committee or the Commonwealth Ombudsman

346 Department of the Environment and Heritage Annual Report 2003-04

Indexes

Ref Description Requirement Page

Management of Human Resources

12.3 Assessment of effectiveness in managing Mandatory 220-29 and developing human resources to achieve departmental objectives

12.3 Workforce planning, staff turnover and Suggested 220-24 retention

12.3 Impact and features of certified agreements Suggested 224-27 and Australian Workplace Agreements

12.3 Training and development undertaken and Suggested 227-29 its impact

12.3 Occupational health and safety Suggested 229

performance

12.3 Productivity gains Suggested -

12.3 Statistics on staffing Mandatory 209,221-23

12.3 Certified agreements and Australian Mandatory 224-27 Workplace Agreements

12.3 Performance pay Mandatory 210,225

Contracts exempt from Purchasing and Mandatory 232 Disposal Gazette

Assets management

12.4 Assessment of effectiveness of assets If applicable, 230 management mandatory

Purchasing

12.5 Assessment of purchasing against core Mandatory 230-31 policies and principles

Consultants

12.6 Number of consultancy services contracts Mandatory 232 let and total expenditure on consultancy services. (Additional information as in Attachment C of the requirements to be

available on request or published.)

Competitive Tendering and Contracting

12.7 Competitive tendering and contracting Mandatory 232 contracts let and outcomes

347

Ref Description Requirement

Page

The reference is to the location of the item in the Joint Committee of Public Accounts and Audit requirements. For example, 9.1' refers to subsection 9(1) of the requirements, and 'A4' refers to the fourth item in Attachment A of the requirements.

348 Department of the Environment and Heritage Annual Report 2003-04

12.7 Absence of contractual provisions allowing Mandatory Not applicable access by the Auditor-General

Exempt contracts

12.8 Contracts exempt from the Purchasing and Mandatory 232 Disposal Gazette

Commonwealth Disability Strategy

12.9 Report on performance in implementing Mandatory 232-34 the Commonwealth Disability Strategy

Financial Statements

13 Financial Statements Mandatory 235-307

Other Information

14.1 Occupational health and safety (section Mandatory 310-12 74 of the Occupational Health and Safety (Commonwealth Employment) Act 199 7)

14.1 Freedom of Information (subsection 8(1)of Mandatory 313-15 the Freedom of Information Act 1982)

14.1 Advertising and Market Research (Section Mandatory 316 311 A of the Commonwealth ElectoralAct 1918)

14.1 Ecologically sustainable development Mandatory 317-28 and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Other

14.2 Discretionary Grants Mandatory 329-34

14.3 Correction of material errors in previous If applicable, Not applicable annual report mandatory

Indexes

Alphabetical index

A Aboriginal people, 59, 78, 130, 131-2 see also Indigenous people

accident/incident reporting, 312

accommodation, 230

accountability, see management and accountability

addresses and contact numbers, ix, 12-13, 314-15

Adelaide, 31

Port Waterways, 56, 65

administered appropriations, administered

expenses, 189-93 191-3, 338

atmosphere, 37

biodiversity, 46-7, 53, 54

coasts and oceans, 66, 67

heritage, 87-8, 89

industry, 93, 108

inland waters, 118

ozone protection, 37

see also Natural Heritage Trust national investment projects, National Heritage Trust programmes

advertising and market research, 316

African Big-Headed Ants, 42

agricultural chemicals, 91, 100, 101, 104, 117, 318, 320, 323

agriculture, 70, 121, 122

air, see atmosphere

air conditioning units, 33

air quality, 28-32, 329

Alligator Rivers Region, 106, 107

air toxics, 28, 30, 320

Air Toxics National Environment Protection Measure, 28

aircraft, 146

albatrosses, 144, 154, 321

Alligator Rivers Region, 96-7, 106-7, 117, 314,323

Ambient Air Quality National Environment Protection Measure, 28

Amery Ice Shelf, 169

amphibian chytrid fungus, 43

ANAO (Australian National Audit Office), 86, 215-18

animals, 44, 128, 129

importers, 53

taxonomy, 46, 47

see also Ramsar Sites

Wetlands International, 57, 64

Whale Shark, 63

whales, 8, 59, 63, 144-5, 147, 160, 179, 321, 332,334

whistleblower policy, 214

White Paper on Energy, 29, 205, 317

wildlife conservation, see biodiversity

Wildlife Conservation Plan for Migratory Shorebirds, 57

wildlife trade, 39, 43, 45, 52-3, 322

378 Department of the Environment and Heritage Annual Report 2003-04

Triple bottom line report

Our performance at a glance

This section summarises our key performance indicators. Additional detail on each of these indicators is provided in relevant sections of the rest of this report. A list of abbreviations used can be found at the end of this report.

Environmental outcomes

â¢ Retained ISO 14001 certification of our Environmental Management System (EMS). â¢ / Purchased 100% accredited green power for our office tenant light and power at the John Gorton Building. â¢ / Recycled 97 375 kg of paper, 22 225 kg of comingled recyclables, 22 060 kg of

organic waste, 171 kg of printer & toner cartridges and 173 kg of fluorescent tubes. â¢ / Reduced our combined gross greenhouse emissions to 530 tonnes of CO 2e, through better management of our energy use, fleet and waste. Our net emissions (after offsets) were 388 tonnes. If we had not undertaken our EMS

initiatives, our business as usual emissions would be 1821 tonnes, or almost five times our current net emissions. I/I â¢ / Caught and reused grey water in the John Gorton Building. Flow reduction devices, leak reporting and water efficient appliances all help to reduce our

consumption of potable mains water. â¢ / Reduced our paper consumption to 15.08 reams per person per year (around 30 sheets per person per day), by using electronic circulation of press clips and duplex trays for all printers. This is down from approximately 45 sheets per

person per day in 2002. We purchase recycled paper for our internal copying and printing.

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Social outcomes

â¢ / Employed 1340 staff (78% in the Australian Capital Territory), with 74% full-time ongoing. â¢ / Achieved a total staff turnover rate (gross) of 24.6%, which is a slight increase on the 2002-03 rate of 24.15%. Seasonal employment in Parks Australia makes a

significant contribution to this figure. â¢ Made flexible working arrangements available to staff, including a variety of leave types and part-time work. â¢ / Lost 2.44% of available working hours for every 100 working days through

staff being on sick leave (with or without a doctor's certificate).

Economic outcomes

â¢ Spent $41.4 million on suppliers for the provision of goods and services. â¢ Paid over 90% of invoices within 30 days of receipt. â¢ Paid Department of the Environment and Heritage staff a total of $90.6 million in wages and related benefits.

Staff profile

During 2003-04, the typical Department of the Environment and Heritage employee:

â¢ / produced 559 kg of greenhouse gas from a working year, or 409 kg after offsets â¢ / used 30 sheets of paper a day â¢ / consumed 28 litres of water per day (at work) â¢ / was aged 40 years or over â¢ / was female â¢ / worked full-time as an ongoing employee â¢ / took 6.4 days of sick leave â¢ Used small airlines for 23.1 per cent of Canberra-Sydney travel.

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About the Department of the Environment

and Heritage The Department of the Environment and Heritage (DEH) advises the Australian Government on policies and programmes for the protection and conservation of the environment, including both natural and cultural heritage places.

We also manage environmental and cultural heritage programmes, including those that come under the umbrella of the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality. An important part of our work is to cooperate with business, the community, Australian Government agencies, and state, territory, and local governments to improve environmental outcomes for Australians. We also administer environmental laws, such as the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Our portfolio comprises:

â¢ the Department of the Environment and Heritage (DEH), which includes the Australian Antarctic Division (AAD) and the Supervising Scientist Division (SSD) â¢ five statutory authorities: the Australian Heritage Council; the Director of National Parks; the Great Barrier Reef Marine Park Authority; the Office of the Renewable

Energy Regulator; and the Sydney Harbour Federation Trust â¢ three executive agencies: the Australian Greenhouse Office (AGO); the Australian Government Bureau of Meteorology; and the National Oceans Office.

Although largely based in Canberra, DEH has a presence in all states and territories, and in many of Australia's external territories. Figure 1 shows the Department's permanent operational sites, excluding our Antarctic bases.

More detailed information on DEH's operations, functions and policy outcomes can be found on our departmental web site at www.deh.gov.au/about/ or in the annual report which can be accessed at www.deh.gov.au/about/annual-report.

382 Department of the Environment and Heritage Annual Report 2003-04

k") NORTHERN TERRITORY

WESTERN AUSTRALIA

SOUTH AUSTRALIA

NEW SOUTH WALES

VICTORIA

Acknowledgement:

Geoscience Australia

National Mapping

Division 1989: Australia,

Coastline, State and

Territory Borders 1:1 OM.

TASMANIA

1 Cocos (Keeling) Island 6 UIuu-Kata Tjuta

2 Supervising Scientist Div. 7 Head Office and ANBG 3 Kakadu 8 Booderee

4 Norfolk Island 9 Aust. Antarctic Div.

5 Christmas Island 0 500 1,000 k

QUEENSLAND

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Figure 1: Locations of DEH sites in Australia and on offshore islands

383

rting is an integrated appr4

I economic outcomes agai s that the vitality of organi ental, social and financial

1 TBL reporting can also ci with existing data collecti ient of practical, achievabl in organisation's ability to.

nt years a growing numbe md government business ting as an integral element nt and DEH actively supp and access to examples of

ished Triple Bottom Line 11 vironmental Indicators (1 sustainabiity reports.

ive we adopted TBI

:eport demonstrates our wi â¢nmental, social and econo nicate our TBL performanc port. It also enhances the c

ntal management by show ample of our guidance in

the external benefits, the internal benefits. For exar social and environmental nts. In addition, publicatk rig, skilled enthusiastic stal

ach to public reporting of

rist established benchmark ;ations and communities d Dutcomes.

arify organisational structu )fl and analysis practices, social and environmental [dentify the needs of stake]

r of private sector organisa nterprises throughout Aus I of their business strategie ort and encourage this trer

good reporting practice. F eporting in Australia: a G )EH TBL Guide) and we n

reporting?

llingness to be open and ti mic performance. It offers

e and initiatives to stakehc redibility of our advice on ing that we act on that ad action.

eporting process has prov ple, we have identified so practices and the findings n of the TBL Report plays

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What are we reporting?

Report focus

The focus of this TBL Report is the environmental performance of our Canberra office-based operations at the John Gorton Building in Parkes, and the social and economic performance of the wider Department (excluding AAD). Where accurate historical data are available, the report shows performance trends measured against suitable benchmarks. Against many key indicators, goals are set, committing us to ongoing improvements. This material is supplemented by a case study of the design and construction of the Australian Greenhouse Office's new underground office

complex at the John Gorton Building. This study highlights how environmental, social and economic outcomes can be improved by applying sound green building practices.

Indicator selection

This report is based on environmental, social and economic indicators from the Global Reporting Initiative's Sustainability Reporting Guidelines 2002. The Global Reporting Initiative (Gill) is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable sustainabiity

reporting guidelines. We have also used the DEH TBL Guide, which tailors the GRI environmental indicators for Australian conditions.

Only those indicators that address office-based operations for which DEH can access meaningful information were selected. As a result, DEH is reporting against 16 environmental, 12 social and five economic indicators. The GRI includes standard abbreviations for each indicator, such as EN3 for direct energy use. In this report, the relevant Gill and DELI TBL Guide abbreviations appear next to the

respective section headings. A full list of indicators, including descriptions can be found at Appendix B.

DEH has participated in the development of the Gill's Public Agency Sector Supplement but that document was not available in time for use in this report.

Australian Antarctic Division, Parks Australia and Supervising Scientist Division operations

At present, AAD has separate reporting systems but robust data on outcomes against key environmental indicators are not yet available for SSD or Parks operations located outside the John Gorton Building. However, the latter section of this report provides overviews of the structure and operational responsibilities of these areas. Linked case studies show how they respond to environmental, heritage

conservation, and social issues that impact on local communities, or have wider significance for Australians.

3851

Verification

Verification of TBL data provides assurance that it meets acceptable standards of completeness, accuracy, precision and reliability. Verification requires an auditing process that examines the systems and processes used for data collection, reconciles data with source documentation and tests it for accuracy. Underlying assumptions and data definitions are also tested. Credibility is enhanced by the use of external auditors, a practice promoted by DEH.

Why verify ThL reports?

Verification provides clear external and internal benefits. These include:

â¢ enhanced public credibility for the report and, consequently, acknowledgement that an organisation is willing to be open about its social, environmental and economic outcomes â¢ identification of weaknesses in current policies, procedures and data recording

practices â¢ findings that can inform future improvements in both systems and outcomes.

DEH's verification outcomes

The Australian National Audit Office (ANAO) has audited five of the report's environmental indicators and four of the social indicators. These indicators were selected for their direct relevance to our operational and policy objectives. Additional indicators may be verified in any subsequent reports.

Throughout the report the symbol./ indicates those indicators that were fully verified by the ANAO. The symbol / (that is, a tick within a box) indicates data that received qualified verification, or that the ANAO was unable to verify. All five of the environmental indicators audited and two of the social indicators were fully verified.

The verified indicators were:

â¢ EN3 Direct energy use â¢ EN1 1 Total amount of solid waste by destination â¢ EN1 Total material use (printing/photocopy paper) â¢ EN8 Greenhouse gas emissions â¢ EN5 Total water use â¢ LA1 Breakdown of workforce by status, employment type â¢ LA2 Employment net creation and average turnover

The full ANAO report is at Appendix A.

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Report feedback

DEH would appreciate feedback on this report. Please call (02) 6274 1909 or email tblreport@deh.gov.au with your comments.

Environmental performance

Overview Our key environmental management actions and performance for 2003-04 included: â¢ EMS - the IS014001 certification of our Environmental Management System (EMS) was renewed. We also commissioned an external review of our EMS,

which recommended a series of best-practice upgrades. The DEH Executive agreed to these changes, many of which are underway. â¢ / Energy - we purchase 100% accredited green power for our office tenant light and power at the John Gorton Building. From 2000-01, we have reduced

our tenant light and power consumption by 20%. In 2003-04, usage increased compared to 2002-03, due to shared meters with the new AGO office space that was still going through building commissioning. â¢ / Waste - we recycled 97 375 kg of paper, 22 225 kg of comingled recyclables,

22 060 kg of organic waste, 171 kg of printer & toner cartridges and 173 kg of fluorescent tubes. DEH, the cafÃ© and our IT services provider sent 107 569 kg of waste to landfill. â¢ / Greenhouse - through better management of our energy use, fleet and waste

we have reduced our combined gross greenhouse emissions to 530 tonnes of CO2e. Our net emissions (after offsets) were 388 tonnes. If we had not undertaken our EMS initiatives, our business as usual emissions would be 1821 tonnes, or almost five times our current net emissions. â¢ / Water - we capture and reuse grey water in the John Gorton Building. Flow

reduction devices, leak reporting and water efficient appliances all help to reduce our consumption of potable mains water. We do not yet have separate water metering for our tenancy. â¢ / Materials - by using electronic circulation of press clips and duplex trays for all printers, we have reduced our paper consumption to 15.08 reams per person per year, or around 30 sheets per person per day. This is down from approximately 45 sheets per person per day in 2002. We purchase recycled paper for our

internal copying and printing.

387

Our key environmental management goals for 2004

05 include:

â¢ EMS - retain our IS014001 certification and implement the recommendations of the EMS review.

â¢ Energy - upgrade metering arrangements and decrease TLP consumption to 4500MJ per person per year.

â¢ Waste - develop a methodology to gather robust data on waste to landfill, conduct a full waste audit, and achieve a 100% all sites recycling rate for fluorescent tubes and toners.

â¢ Greenhouse - renew our Greenhouse Challenge Agreement with new targets, and identify and assess options for offsetting emissions associated with staff air travel.

â¢ Water- investigate the feasibility of installing water sub-meters to produce accurate figures on DEH's tenancy water consumption.

â¢ Materials - review our office machines to reduce paper use, develop an environmental printing policy for our outsourced printing, and conduct a new paper audit.

Environmental Management System EMI, EM2, EM3

DEH has an Environmental Management System (EMS) certified to the international standard IS014001, which covers our Canberra-based office operations. An EMS is a structured tool for measuring and continually improving the performance of an organisation in maintaining its regulatory compliance and managing its environmental risk. IS014001 certification of an EMS is provided on an annual basis, with recertification subject to an independent audit by NATA Certification Services International Pty Ltd (NCSI). Recertification in 2003-04 confirmed that the quality of our environmental systems and practices has been maintained.

The aspects identified in DEH's operations include: energy; transport; paper and other consumables; solid waste management; purchasing; information technology/ communications/records management; water; ozone-depleting substances; office cleaning/pest management; and building design and utilisation.

Ensuring the EMS is effective

An EMS on paper does not in itself change corporate behaviours or guarantee positive environmental outcomes. An effective EMS must be integrated with existing business systems and actively engage employees. To achieve these ends our EMS

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has been embedded in DEH's corporate and strategic plans, and it is supported by

two central initiatives that complement and are part of the EMS:

â¢ An Environmental Management Policy covering our departmental operations, a copy of which is at Appendix C. Developed using a 'rethink, reduce, reuse, repair, recycle' philosophy, the policy provides accessible guidance on environmental issues. â¢ Our Environment Contact Officer Network (EcoNet). EcoNet is an active

group of staff from across the department who assist with the development, implementation and refinement of environmental best practice initiatives and programmes.

Paul Doyle Graduate Programme 2004

My first task as a new graduate employee was to help upgrade DEH's Environmental Management System (EMS).

As a result of that work, DEH is upgrading its EMS to best practice for office-based environments and has developed an updated environmental policy.

I now know that I work for an organisation that 'walks-the-talk' on environmental issues, introducing initiatives such as grey water recycling. I'm proud of the place and often tell friends about what we're doing here.

Ensuring a best practice EMS

In 2003, we commissioned an external review of our EMS to assess its effectiveness and identify opportunities for improvement. The review, undertaken by Sustainable Solutions Pty Ltd, was completed in late 2003. Key recommendations were that DEH:

â¢ investigate opportunities to better monitor resource consumption (for example, of water and paper) â¢ conduct a National Australian Buildings Environmental Rating System (NABERS) assessment of its tenancy in the John Gorton Building â¢ produce a Public Environment Report â¢ investigate energy smart metering to improve monitoring of electricity

consumption â¢ include energy use and environmental performance criteria in its IT contracts â¢ improve carpooling arrangements

â¢ extend the use of videoconferencing to reduce travel related environmental

impacts â¢ investigate the purchase of greenhouse offsets for staff air travel.

DEFt's Executive and staff are committed to act on all of the review recommendations. An ongoing programme of actions for these recommendations has been agreed and is being implemented.

Goals

â¢ Maintain EMS certification to international standard ISO 14001. â¢ Continue to implement, during 2004 05, the recommendations of the 2003 EMS review.

Encouraging Australian Government agencies to adopt best practice

DEH actively encourages all Australian Government departments and agencies to adopt best practice environmental management techniques. Through the Greening of Government Programme, we work to provide them with advice, access to suitable communication networks, and best practice techniques from around the world. An essential element of this work is assisting agencies to develop and introduce environmental management systems. To support this work, DEH has developed a range of publicly accessible tools for improved environmental management systems. These tools can be found at the Greening of Government web site www.deh.gov.au/industry/agency-performance/

Energy / EN3 (Energy 1), EN4 (Energy 2), EN 17 (Energy 3)

Electricity - tenant light and power

DEH has invested considerable effort in reducing use of electricity for tenant light and power at the John Gorton Building.

Much of that effort has been concentrated on energy efficient lighting systems. For example, dichroic light fittings have been replaced with more efficient fluorescent down lights and light fittings now feature dimming high frequency ballasts. Such measures have been supplemented by the installation of movement detectors to control lighting in rooms that are used infrequently, and a Clipsal C-Bus energy

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management and lighting control

system. In addition, only Energy Star compliant office equipment that maximises energy efficiency is now purchased.

DEH has also invested in Energy Management Option (EMO), a software solution that delivers significant, auditable reductions in energy use and associated greenhouse gas emissions. Corridor natural light-John Gorton Building.

Performance - energy

The consumption reduction measures implemented over recent years have had a significant impact on our tenant light and power electricity consumption. The combination of user shutdown and the EMO system has proved invaluable, enabling the saving of some 39 400 kWh of electricity in 2003-04. This saving is 2.7% of our total tenant light and power consumption.

From 2000-01, total consumption has fallen 20% (1290 GJ). Annual consumption per person is now 5500MJ and annual consumption per m 2 of office space is now 274 MJ. These outcomes for 2003-04 compare favourably with the Australian Government's target of 10 000 MJ per person per annum. Our self assessed MJ per m2 performance rates at an unofficial four stars under the Australian Building Greenhouse Rating Scheme. Table 1 provides detailed consumption information for the period 2000-01 to 2003-04. Our 2003-04 usage, compared with 2002-03, has increased due to the current metering arrangements in the John Gorton Building, which means that the tenant light and power for the AGO's new office space is included in DEH's bills.

Table 1:Tenant light and power 2000-01 to 2003-04 (kWh) - all DEH office s(a)

(a) DEH has recently collocated into the John Gorton Building. Until September 2002, the Department leased office space at Nature Conservation House, and until December 2003 also leased space at Tourism House (both are in Canberra).

Tenant light and power 2000-01 2001-02 2002-03 2003-04

Total kWh 1 806 708 1 710 786 1 389 809 1 448 335

TOTALGJ 6504 6159 5003 5214

Mi per person per annum 5907 5618 5158 5500

MJ per m2 per annum 324 338 292 274

%Greenpower 81% 86% 82% 93%

391

Goals

â¢ Upgrade metering arrangements by 2005 to improve electricity consumption reporting.

â¢ Decrease tenant light and power consumption to 4500MJ per person per annum by 2005-06.

Gas use / EN3 (Energy 1)

Gas is used in the John Gorton Building solely for central services such as heating, ventilation and air-conditioning, and hot water in showers, kitchens and tea points. Gas charges are passed on to DEH in the lease, and therefore we do not receive an individual bill. See Table 2 for DEH's share of the total gas usage for the whole building, calculated using the net lettable area for our tenancy in the John Gorton Building.

Table 2:Total gas use for DEH in John Gorton Building 2003-04

Greenpower, indirect energy and greenhouse gases EN4 (Energy 2)

DEH now uses 100% greenpower for tenant light and power in the John Gorton Building. Although a more costly option, it provides significant environmental benefits. Indirect energy use associated with the generation of electricity is minimised and no associated greenhouse gases are created and released.

Gas usage 2003-04

TotaMJ 3215198

Mi per day 12809

Mi per person per day 13.5

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Transport /EN3 (Energy 1)

DEH's transport strategy encompasses departmental business travel and commuting to and from work. It focuses on more efficient use of our vehicle fleet and reducing the need for business-related air travel. We also encourage the use of public transport and the two most environmentally friendly forms of transport - walking and cycling. Staff are encouraged to adopt more environmentally friendly forms of commuting, a strategy informed by a November 2002 survey of DEH staff to establish baseline data on personal travel.

Reducing the use offossilfuels

DEH's vehicle fleet comprises 22 Senior Executive Service (SES) officer vehicles and six pool vehicles, of which three are the fuel efficient and low emissions hybrid Toyota Prius. The Prius acquisitions are part of an ongoing commitment to progressively replace existing vehicles with ones that perform better against the Green Vehicle Guide. Since August 2003, carpooling has been encouraged by allocating permanent car parking spaces for private vehicles used to transport three or more people to work.

DEH will soon provide information packs to all staff eligible for car leasing arrangements. The packs will include information on Green Vehicle Guide ratings, fuel efficient vehicles, benchmarks and relevant government and departmental policies.

Encouraging alternative modes of transport

Working in conjunction with ACTION buses, links to the timetables and routes of buses operating in the Parliamentary Triangle have been made available on our intranet site. Cycling has been encouraged by increasing the size of the secure bike cage, and ensuring that secure lockers and change room facilities are available for staff commuting by bicycle. In 2003-04, we purchased 40 extra lockers for the

increasing number of cyclists in the Department.

Air travel

DEH provides facilities for staff to use telephone and videoconferencing as alternatives to flying to meetings. We have commenced a project on assessing the greenhouse emissions associated with staff air travel, and opportunities for reducing and offsetting these, which will be completed in 2004-05.

136.7

164.9 181.5 180 Total CO2 (t)

DEH vehicle fleet 2000-01 2001-02 2002-03 2003-04

Total fuel consumed (L) 71 991 71 519 65 952 54698

Performance - transport

In 2003-04, the Department's vehicle fleet used 54 698 litres of petrol and travelled 499 586 kilometres.

17.86% of the Department's fleet scored 10.5 or higher against the Green Vehicle Guide, averaging 11 litres per 100 km. The Australian Government target aims to increase the proportion of vehicles with scores in the top half of the Green Vehicle Guide to 28% by 2005. Table 3 shows detailed data on our vehicle fleet fuel and energy consumption.

Table 3: DEH vehicle fleet fuel and energy consumption 2000-01 to 2003-04

Goals

By the end of 2005-06, develop and assess options to:

â¢ further encourage the take-up by staff of more environmentally responsible transport options for business related travel (for example public transport, carpooling, cycling and walking) â¢ increase the use of information and communication technologies as

alternatives to air travel â¢ further improve the environmental performance of our vehicle fleet by reducing the amount of vehicles scoring poorly against the Green Vehicle Guide scores and selecting better vehicles.

DEH's 2004-06 Certified Agreement commits us to these goals and, where feasible options are identified, to implement them.

]Total distance travelled (km) 746345 759831 622 130 499586

TOTALGJ 2459 2474 2255 1871

ij Average (L) perlO0km 9.6 9.5 10.6 11

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Waste

Reducing waste

fEN11 (Waste 1 &Waste 3)

DEH has been consigning waste for recycling since 1996 and in recent years we have been increasing the proportion of our waste materials that are recycled. A waste management system provides for the recycling of paper and cardboard, organics, comingled material, toners and paper towel from toilets. One element of our recycling strategy is to centralise recycling bins in kitchen and tea point areas, rather than providing bins at individual workstations. Effective signage lowers contamination rates.

Signage displayed on centralised recycling stations in DEH.

meY5 _

The signage is well received by DEH staff. It is now used in other Australian Government agencies and higher education institutions for promoting recycling in their organisations.

Used fluorescent tubes are another source of potential environmental contamination. DEH recycles fluorescent tubes from the John

Gorton Building, ensuring that pollutants such as mercury are disposed of safely. In 2003-04, over 57% of our printer and toner

cartridges were returned directly to Lexmark for remanufacturing. The remainder of these cartridges were recycled through Cartridges for Planet Ark.

Performance - waste

YES SI oIs. YES, oil mONO, oilo, foEs, YES: â¢O NESMObI, ood hull ,oc,ulubl, Plollllu, pot pop-,,cydublo and saws, mono udpdu, lop pod 10150 5001510015 pso-,pusablu material iuoreu1bos, pupal hued NO. IysIabI, plosOso NO, paper, 0,901115 lea ha 1pS "P.*1,eoylobIasaoterioI NO, moms, slip, f-, 550'rerrrlablp pspt.rial 00151.1

rH tf v* r'i

DEH has been consigning waste for recycling since 1996. In 2003-04, we generated some 250 tonnes of waste, or 263 kg per employee. Of this total, approximately 142 tonnes (57%) were recycled, the remainder going to landfill. DEH, the cafÃ© (located in the John Gorton Building), and our information technology services provider sent 107.5 tonnes of waste to landfill.

Figure 2 shows a detailed breakdown by waste type and destination. Weights for materials sent to landfill are based on a formula applied by weight of bins multiplied by number of pick-ups per year.

Landfill

Fluorescent tubes (Recycled)

Toners (Recycled)

Organics (Recycled)

Comingled (Recycled)

Paper and cardboard (Recycled)

Was

te by

p e

Figure 2:Waste by type and destination in kilograms 2003-04

0 20,000 40,000 60,000

Weights (kgs)

80,000 100,000 120,000

which generates significant volumes of food wastes, and also DEH's outsourced information technology services provider.

Goals

â¢ Develop a methodology to gather robust data for waste to landfill by 2005-06.

â¢ Conduct a full waste audit of the John Gorton Building in 2004 05.

â¢ Achieve a 100% recycling rate for fluorescent tubes and toners from all DEH sites by mid 2005.

Greenhouse gas emissions / EN8 (Greenhouse 1 & Greenhouse 2)

Reducing greenhouse gas emissions

DEH is committed to minimising greenhouse gas emissions generated as a result of its operations. We were the first Australian Government Department to sign up to the Greenhouse Challenge, requiring an annual progress report on reductions in greenhouse gas emissions to the Australian Greenhouse Office (AGO). A profile of DEH's emissions is available at www.greenhouse.gov.au

396 Department of the Environment and Heritage Annual Report 2003-04

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Our strategies for reducing emissions focus on electricity, transport and recycling. We have no direct ability to influence or control building gas usage as this is under the control of the building owner.

All electricity for tenant light and power at the John Gorton Building is now sourced from producers of accredited greenpower, resulting in no emissions from this energy source.

Subscribing our vehicle fleet to Greenfleet ensures greenhouse offsets, with some 142 tonnes of CO 2 offset through tree planting in 2003-04. Since joining Greenfleet in 2001, 272 tonnes of CO 2 have been sequestered to offset our vehicle emissions. We are considering joining BP's Global Choice programme in 2004-05. This would further increase our greenhouse offsets, with BP guaranteeing to offset greenhouse

gas emissions generated by fuel purchased from them. Global Choice is accredited under the AGO's Greenhouse Friendly Programme.

In 2003-04, we recycled some 22 tonnes of organic waste, which was processed through a local worm farm. Not only does organic waste recycling reduce pressure on landfill space and associated methane emissions, our organic recycling also supports a local small business.

Performance - greenhouse gas emissions

In 2003-04, DEH generated 530 tonnes of CO 2 from the energy used for tenant light and power, gas for central services, the vehicle fleet and waste to landfill (gross).

Figure 3:Total tonnes of CO2 by end use (gross)

â¢ Tenant light and power I Fleet

â¢ Waste to landfill 0 Gas

This is equivalent to 559 kilograms of CO 2e per person per year. After our purchase

of greenhouse offsets for our vehicle fleet, our net emissions of CO 2 are 388 tonnes or 409 kilograms per person per year (see Figure 4).

397

iss

io ns

(

COe

Reducing transport generated greenhouse gas emissions

â¢ DEH is considering joining BP's Global Choice programme. Certified under the Australian Greenhouse Office's Greenhouse Friendly Programme, Global Choice is a world-leading programme that helps businesses offset greenhouse gas emissions generated by vehicle use. â¢ DEH subscribes its fleet to Greenfleet, a not-for-profit organisation that plants

trees to offset carbon emissions from vehicles. On an annual basis, for each fleet vehicle, 17 trees are planted to sequester 4.3 tonnes of CO 2.

Figure 4: DEH net greenhouse emissions (business as usual compared to post-EMS) 2000 1----

1000-800-600-400-

200-

Tenant light % Transport Waste Gas

power

E Emissions prior to EMS (business as usual) D Emissions post EMS

DEH's purchase of vehicle fleet greenhouse offsets in 2003-04 exceeded gross fleet

emissions, producing a negative net emissions figure for our vehicle fleet.

Goals

â¢ Renew our Greenhouse Challenge Agreement in 2005, setting new greenhouse gas emission reduction targets. â¢ Identify and assess options for offsetting greenhouse gas emissions associated with business related air travel by 2004-05.

1800 ----, 1600

1400 -1---

1200 -

Total

1821

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Water / EN5 (Water 1), EN22 (Water 2 & Water 3)

Since moving to the John Gorton Building, we have introduced a range of measures to minimise water use from local reservoirs and maximise the use of recycled water.

Minimising water use

Installation of a Jemflo Water Management system in the fitout of the John Gorton Building has been the most effective measure adopted to reduce water consumption. Reducing the flow of water through pipes typically reduces water use by between 25% and 35% and, in some cases, by over 50%. For example, water flow to the hot water taps is four litres per minute and six litres per minute to the

cold water taps. Normal water flow of 10-15 litres per minute is available only at cleaners' sinks and cisterns.

Considerable water savings have also been achieved through the use of efficient dual flush toilet cisterns. These deliver six litres for full flush and three litres for half flush.

Water in government operations

DEH conducted a study of water in Australian Government operations in 2003-04. Reporting in 2004 05, initial results from the study indicate cost effective savings of between 4296Ml per year and 7405Ml per year can be achieved from water efficiency in government. DEH is continuing work on water in

government operations in 2004 05.

DEH maintains a business and after hours phone number for the reporting of water leaks and wasteful water practices in our building. These are posted at all water use points.

Water recycling

A grey water treatment system was incorporated into our original fitout design. In 2003 this system was upgraded to treat grey and black water. The system can now treat up to 36 kilolitres of wastewater per day.

Treated water is used for irrigating lawns and gardens, and toilet flushing in the AGO's underground office complex.

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Performance

- water

We share the John Gorton Building with another Australian Government department and, as yet, we do not have separate tenant metering for water. All water used for this building is included in a consumption total that includes base building, the cafÃ© and the watering of lawns.

The building owner estimates that DEH used approximately 6605 kilolitres (6.6m) of water or 28 litres per person per day for our tenancy in 2003-04.

Goal â¢ Investigate the feasibility of installing water metering to enable accurate monthly monitoring of water used by DEH by end 2004 05.

Materials - paper / EN1 (Materials 1), EN2 (Materials 2)

Two strategies underpin our efforts to reduce the environmental impact of paper usage:

â¢ ongoing reductions in direct paper use â¢ using recycled Fuji-Xerox Green Wrap paper for all standard A4 printing or photocopying tasks. Green Wrap is made from 60% recycled fibre (produced from Australian waste) and 40% sustainable new fibre. It is suitable for single and

double-sided photocopying and printing.

The Department conducted a paper audit in November 2002, establishing baseline data on paper consumption. The audit revealed that, on average, each staff member used approximately 45 sheets of A4 photocopying/printing paper per day.

Since the 2002 audit, DEH has focused on improving those business systems and processes that impact on paper use. This strategy has resulted in a range of measures that reduce usage. For example:

â¢ electronic press clips and employment forms (for example, leave, overtime, higher duties) have replaced hard copy press clips and employment forms

â¢ the ratio of printers to staff has been reduced to 1:5 â¢ in February 2004, we commenced a roll-out of duplex trays for all printers. This process is now complete.

400 Department of the Environment and Heritage Annual Report 2003-04

Total (reams)

14300

Total (sheets) 7150000

Total tonnes 36.5

Per employee (reams) 15.08

Per employee (sheets) 7542

Total cost $76505.00

Cost per employee $80.70

Triple bottom line report

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We are investigating the feasibility of electronic departmental and ministerial letterhead. This will eliminate paper wastage through misprints and excess stock held because of factors like machinery of government changes. Other initiatives include a trial of printing business cards on recycled cardboard.

Performance - materials - paper

In 2003-04, we purchased 14 300 reams of A4 paper, weighing some 36.5 tonnes. This is approximately 30 sheets per person per day (see Table 4).

Table 4:TotalA4 printer and photocopier paper purchased 2003_04(a)

(a) Data is not currently available for paper used for publications, outsourced printing or paper based stationery. Nor is reliable data available for printing/photocopying paper in sizes other than A4.

Goals

In 2004 05,wewill:

â¢ conduct an office machine review to identify strategies to reduce paper consumption, improve energy efficiency and reduce the number of machines in use

â¢ finalise the electronic departmental and ministerial letterhead project

â¢ develop a policy to improve environmental performance for outsourced printing

â¢ establish systems to collect information on paper used when printing is outsourced.

By the end of 2005, we will conduct another paper audit.

401

Suppliers EN33 (Suppliers 1)

Current Australian Government and departmental procurement policies require the consideration of environmental issues as part of value for money. DEH has also developed a draft Environmental Purchasing Guide and 15 draft checklists covering common types of goods and services procured by the Australian Government. These policies are reflected in our Chief Executive Instructions for procurement.

Performance - suppliers

Some of the Department's activities aim directly to improve the performance of our suppliers. We do not currently capture this data in our business systems. An example of how we encourage our suppliers to improve their environmental performance is a recent tender for an Environmental Management System training package. The Department inserted a criterion specifically asking for evidence of an environmental management policy or other initiatives to improve the environmental performance of supplier organisations.

Greening the supply chain

Working with the Australian Greenhouse Office and the Department of Finance and Administration, DEH has developed a voluntary Environmental Purchasing Guide and 15 Environmental Purchasing Checklists. These will assist Australian Government departments and agencies to take into account the environmental performance of a good or service. The guide and checklists will also help drive supply chain environmental improvement through procurements that ask about the environmental performance of suppliers' own operations. The guide and checklists will be released in 2004-05.

Goals

â¢ Continue to use our position in the supply chain to improve the environmental performance of our suppliers. â¢ Adjust our business systems in 2004 05 to capture this information.

402 Department of the Environment and Heritage Annual Report 2003-04

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Sustainable building design: The Australian

Greenhouse Office project

Setting a benchmark in environmentally sustainable design In 2003, DEH refurbished the former Communications Centre at the John Gorton Building as office space for the Australian Greenhouse Office (185 staff). The project called for the transformation of an outdated, highly specialised,

underground complex into a contemporary office space to meet the needs of a modern workforce. It provided an opportunity to demonstrate that the use of innovative green building design practices could transform a bunker into a leading example of sustainable building design.

In the design phase particular attention was given to recycling of materials, preserving heritage values, energy and water use efficiency and providing a 'liveable' underground workspace for AGO staff.

Meeting spaces.

The refurbished space set a new benchmark in environmentally sustainable design within heritage-listed premises. In recognition of that achievement, the ACT Chapter of the Royal Australian Institute of Architects gave the project an Ecologically Sustainable Development Award.

By the end of 2004, the new AGO complex's energy use and greenhouse gas emission impact will be assessed under the Australian Building Greenhouse Rating scheme. It is expected that the site will achieve a better than five star rating. The site will also be included in DEH's existing Environmental Management System, which

has been certified to the IS014001 international standard.

403

The original Communications Centre

From 1978 to 1996 the centre, encased in concrete and steel to ensure electronic security, was the central hub for the Australian Government's international communications.

Designed in the early 1970s, the building incorporated many innovative features to compensate for the lack of external visual and acoustic stimulation. The design incorporated unusual colour schemes, piped music and fish tanks. The extensive recreation areas were designed to replicate domestic lounge rooms and living areas. Closed circuit television was installed to show what was happening outside the building.

Communications Centre circa 1978 Communications Centre - Computer - Helen Pike operating the Defence Circuit. Room 2.

Department of Foreign Affairs staff maintained an around-the-clock schedule

sending, encrypting and deciphering messages. Communications for major international crises such as the Falklands War and the first Gulf War were managed at the centre.

404 Department of the Environment and Heritage Annual Report 2003-04

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Preservation of cultural heritage

Djcikaldjirparr' mural by Johnn Ru/ui, Buu/uuui.

Communications Centre lobby.

Heritage considerations were important during the construction phase. Existing features that had been identified as culturally significant, such as the

original lobby and the 1976 Johnny Bulun Bulun mural - Djakaldjirparr - had to be preserved.

Preservation of these heritage items presented special difficulties. The lobby had to be disassembled piece-by-piece and carefully reinstalled during the fitout stage. The mural, which was part of a larger wall that formed a vault, could not be moved. To ensure

its survival during the construction phase it was placed in a pressurised wooden box, maintained at a constant temperature, and constantly monitored by vibration and temperature alarms.

Sustainability in construction

The underlying design principle was 'rethink, reduce, reuse, repair and recycle'. Consequently, emphasis was placed on minimising the space's energy and water requirements, and using recycled materials.

Energy use

To exceed accepted energy use targets, particular attention was given to minimising consumption. An underfloor displacement air-conditioning system was used, which is 25% more efficient than normal systems, and solar water heating was installed.

Lighting zones were planned carefully and the use of external natural light sources was maximised. Other lighting measures include the use of light dimmers and sensor systems to automatically turn off lighting when it is not required. To minimise greenhouse gas emission impacts from energy use, all electricity is sourced from accredited greenpower producers.

405

These and other measures are central

to meeting the energy use goal for the design brief: that the AGO energy performance for central services and tenant light meets or exceeds the Australian Government Energy Policy target for refurbished buildings of 581MJ per m2 per annum (derived from the 1994 Building Owners and Managers Association Energy Guidelines).

Natural light for meeting spaces.

Water

Mains water consumption has been reduced to approximately 1.8 litres per person per day, less than 8% of the average consumption in Australian Government office buildings. A 361(1 rainwater storage and treatment system provides potable water. Non-potable water is supplied by a water treatment system linked to the main building's existing grey water system.

A range of water saving systems are being used. These include single lever mixer taps, water efficient dishwashers and a Jemflo water flow and balancing system. A Rada Pulse System to control water flows from individual water fittings and a drip-fed irrigation system for plants were also installed.

Materials and recycling

During construction some 97% of all demolition waste, including fittings such as carpets and fluorescent tubes, was recycled. Whenever possible, the structure's original access floors and support systems were reused. Renewable timbers were used in preference to new non-renewable metal structural materials.

A 'reuse, recycle' philosophy was also applied during fitout. For example, carpet tiles manufactured using recycled materials were laid and extensive use made of refurbished furniture.

Work environment

A green building philosophy is unsustainable if it delivers only environmental outcomes. It must also provide a practical and agreeable working environment. To deliver this outcome for the new underground AGO space, four design elements were critical: natural light sources; ready access to external spaces; visual stimulation and a sense of 'openness'.

406 Department of the Environment and Heritage Annual Report 2003-04

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Designing for natural light.

Four landscaped sunken courtyards, extensive use of skylights and well designed reflective light shelving all contribute to maximising the use of natural lighting within the complex. The courtyards have multiple roles. Each provides ready access to an external space, visual stimulation and a source of natural light.

Extensive use of 'break-out' areas and open meeting areas add to the sense of openness of space. Where possible, these areas are located close to sources of natural light or visual stimulation such as the courtyards or the Djakaldjirparr mural.

In late 2004, an assessment of the site will be undertaken to evaluate the building's performance in terms of occupant health, comfort and satisfaction, and to assess its overall contribution to productivity outcomes.

407

Social performance

Overview

Key actions and performance 2003-04

â¢ Investors in People - inaugural Australian Government Investors in People Gold Award received.

â¢ / Our workforce - detailed analysis of DEH workforce completed Work begun on succession and job rotation/skills development strategies to address ageing workforce and turnover rate issues.

â¢ Learning and development - DEH's Performance and Development Scheme rated highly in an Australian National Audit Office audit of APS Performance Management Systems in relation to 'staff participation' and 'review of performance against agreements'.

â¢ Work-life balance - flexible working arrangements and variety of leave entitlements available.

/I Healthy and safe working environment - Compensation claims received rose from 31 in 2002413, to 35 in 2003-04. â¢ Diversity - Disability Action Plan being developed.

Key goals 2004-05

â¢ Investors in People - continue to meet the international standard for Investor in People (TiP) accreditation.

â¢ Our workforce - implement a detailed exit survey. Commence implementation of a pilot Development Programme for APS6 level employees with demonstrated potential.

â¢ Learning and development - provide financial assistance for appropriate tertiary study activities. Complete analysis of graduate retention. Investigate and implement systems to improve reporting on staff training and development (by end 2005).

â¢ Work-life balance - review outcomes of the recent staff survey to identify appropriate strategies. Obtain accreditation with the Australian Breastfeeding Association.

â¢ Healthy and safe working environment - investigate and implement more informative occupational health and safety reporting systems (by end 2005).

â¢ Diversity - establish an effective methodology to collect statistics on employee diversity.

408 Department of the Environment and Heritage Annual Report 2003-04

Sarah Yip

Graduate Programme 2003

During my graduate year I was fortunate in securing a six-week placement at Jabiru, working with Parks Australia and the Kakadu Board of Management.

I had a great time assessing walking tracks, counting crocodiles, tracking rats and just watching the sunsets. I also learnt a lot about Aboriginal culture from the park staff and traditional owners.

Working on location has left me with a great respect for everybody involved in the joint management of our national parks and a strong appreciation of DEH's role at Kakadu.

Other reports Triple bottom line report

Investors in People IA16

On ii December 2001, the Department became an Investors in People (Tip) organisation. HP underpins DEH's commitment to providing staff with development opportunities suited to their individual needs.

HP principles and practices inform the development of measures such as DEH's Performance and Development Scheme, and time and budget allocations for staff development. DEH divisions also develop their own liP activities including staff newsletters, seminars, communications and celebratory events.

Measures such as Executive seminars on topical items and issues, discussiOn at hi-monthly meetings between the Secretary and directors, and distribution of Executive Roundtable meeting outcomes on our intranet help ensure that the HP standard is supported by the Executive and other staff.

Benefits for management and staff from HP related measures include:

â¢ a stronger focus on performance and performance management

â¢ clear links between DEH's goals and individuals' work plans that help ensure staff know how they contribute to meeting departmental objectives and that their contributions are valued

â¢ a stronger commitment to staff development and improved communications across DEH.

Performance

- Investors in People

A November 2003 surveillance audit showed that DEH continues to meet the international standard for TiP accreditation. The Department was awarded the inaugural Australian Government Investors in People Gold Award on 12 November 2003.

Goal

â¢ Continue to meet the international standard for TiP accreditation.

Our workforce / LA1,/LA2,LA11,LA16

Staffing profiles

At 30 June 2004, DEH employed 1340 people, based on a headcount of staff. DEH staff are located in: Canberra; Darwin; Adelaide; Brisbane; Hobart; Perth; Bendigo; Kakadu National Park; Uluru-Kata Tjuta National Park; Booderee National Park; Cocos (Keeling) Islands; Christmas Island and Norfolk Island.

Figure5: Make-up of DEH staff at 30 June 20040)

o FIT ongoing â¢ Plrongoing 0 Non-ongoing â¢ Casuals

(a) Headcount of full-time and part-time ongoing, non-ongoing and casual staff, and staff on leave without pay.

Of our 1340 staff:

â¢ 78% (1045) were located in the ACT â¢ 74% (987) were full-time ongoing (permanent) staff â¢ 9% (128) were part-time ongoing (permanent) â¢ 14% (184) were full or part-time non-ongoing staff (temporary) employed for

short periods

â¢ 3% (45) were casual employees.

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DEH has a higher proportion of staff that are non-ongoing (14%) than does the APS as a whole (8.8% in 2003). However, non-ongoing employees are particularly important to DEH in national parks. They provide the flexibility to meet seasonal operational requirements of lease arrangements between traditional owners and the

Australian Government. Seasonal employment also provides important employment and training opportunities for Indigenous Australians.

Figure 6 shows that DEH has a lower proportion of ongoing staff at the APS1 to APS4 levels, and a greater proportion at higher levels, when compared to the Australian Public Service as a whole. The profile is, however, generally consistent with other Australian Government agencies whose core roles are policy advice and development, and programme administration rather than 'shop-front' service delivery.

Figure 6: DEH's ongoing staff by classification compared to all APS staff(2)

30% -

25% -

20% -

15% -

10% -

[IiIEMh APSS APS6 ELI EL2 SES1 SE52 5E53

11*1 APS1/2 APS3

5% -

APS4

â¢ DEH 2004 U APS 2003

(a) DEH staff at 30/06/04, excluding those on leave without pay. EL-Executive level. SES= Senior Executive Service. APS 2004 data not yet available.

Figure 7 shows that the ratio of DEH's female to male ongoing staff is higher at

the APS1 to APS6 classifications, and lower in the ELI to SES Band 3 classifications (particularly at the ELI level and beyond). This profile is generally comparable to that of the Australian Public Service as a whole.

411

APS 1/2

APS3 APS4 APS5 APS6 Exec 1 Exec SES SES SES

Band I Band 2 Band 1

Figure 7: DEH's ongoing staff at 30/06/04 by classification by gender "')

â¢ 2003 APS males D 2003 APS females U 2004 DEH females E 2004 DEH males

(a) DEH staff at 30/06/04, excluding those on leave without pay. EL=Executive level. SES= Senior Executive Service. APS 2004 data not yet available.

DEH's peak decision making body, the Executive Roundtable, is comprised of 83%

male and 17% female members.

Figure 8: DEH's ongoing staff by age cohort compared to all APS staff ' )

20% -

15% -

10%

5% -

20-24 25-29 3034 35-39 40-44 45-49 50-54 55-59 60 & over

I: I- I - I I- I I

â¢ DEH 2004 El DEH 2003 Li APS 2003 (a) DEH staff at 30/06/04, excluding those on leave without pay. IiL=Executive level. SES= Senior Executive Service. APS 2004 data not yet available. 412 Department of the Environment and Heritage Annual Report 2003-04

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Figure 8 shows that DEH, like the APS as a whole, has an ageing workforce. With some 39% of our workforce aged 45 and over, considerable numbers of our more skilled and experienced employees will retire or semi-retire over the next decade. To minimise the impact, work is now being undertaken on succession planning, job rotation for skills development, leadership and management development,

recruitment practices, and investigation of measures such as more flexible working arrangements for mature age workers. This work will help to ensure the retention of corporate knowledge and a strong skills base.

Performance - our workforce

At 30 June 2004, DEH had 1340 staff, an increase of 30 on the figure at 30 June 2003 (based on headcount of staff).

DEH's total staff turnover rate for 2003-04 was 24.6% (including ongoing and non-ongoing staff), a marginal increase on the 2002-03 rate of 24.15%. These turnover rates are higher than those of most other APS agencies. However, in 2002-03 DEH's turnover rate for ongoing staff only was 10.7%, compared to an average of 7.4% for all Australian Government agencies. A significant factor contributing to DEH's high turnover rate is the employment of seasonal workers in national parks - a practice essential to the management of the parks.

A survey of staff who left voluntarily during the 18 months to 30 June 2003 identified two main reasons for their departure: 'better career prospects elsewhere' and 'lack of work satisfaction and challenge'.

An exit survey of ongoing staff will be implemented before December 2004 to gather additional information that will be used to help develop of new measures and/or refine existing measures for addressing the factors that drive staff turnover. A new job rotation and skills development pilot programme for APS6s with demonstrated management potential will be introduced in 2004-05.

Goals

â¢ Commence by August 2004, implementation of a pilot development programme for APS6 level employees with demonstrated potential. â¢ Commence by December 2004, an 'expert staff identification process, as part of succession planning and knowledge management. â¢ Implement a detailed exit survey prior to December 2004, with candidates

being offered face-to-face interviews.

413

Learning and development

LA9,LA16

Strategies and initiatives

DEH's training and development strategies are designed to benefit both DEH and individual staff by developing their potential and providing the skills needed to take on new roles throughout their careers. DEH's Performance and Development Scheme and its Graduate Recruitment and Development Programme (Graduate Programme) are integral to achieving these objectives. Regular information sessions on human resources issues - including specific sessions for Directors - help ensure that learning and development strategies are implemented effectively.

Performance and Development Scheme (PDS)

The PDS facilitates access to job-related learning, provides clarity about job performance expectations and encourages regular feedback on performance. The scheme also provides the framework for managers (with their staff) to identify development needs and prepare individual learning plans. Under DEH's Certified Agreement, salary progression and pay increases are linked to participation in the

PDS.

In a recent Australian National Audit Office audit of APS Performance Management Systems, DEH's PDS rated highly in relation to 'staff participation' and 'review of performance against formal agreements'.

Graduate Programme

This programme is highly sought after, with a large number of applications received each year. During 2004, DEH put 12 graduates, (including two who were already employed by DEH), through the programme. These 12 graduates were qualified in a wide range of fields.

Graduates have three job rotations during the one-year programme. This provides them with experience in a range of DEH activities, formal training, and diverse skills acquired through on-the-job development.

By June 2005, DEH will analyse Graduate Programme outcomes to determine how programme participants progress in their careers, and the proportion of graduates retained after one, two or more years. This information will provide benchmarks for future outcome comparisons.

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Study assistance and investment in training

DEH encourages staff to undertake studies that are relevant to its responsibilities and goals and, where appropriate, provides study leave and financial assistance. Under a new initiative, in 2004-05 it will offer a bursary to eligible employees undertaking approved tertiary studies.

Staff training is supported by a commitment to spend an average of $1000 per year (inclusive of travel and other associated non-salary costs) on learning and development activities for each employee, and provide an average of five days training per person per year.

Performance - learning and development

At present, DEH's information systems do not capture reliable data on training expenditure.

Goals

â¢ Provide financial assistance for approved tertiary study activities from July 2004. â¢ Complete analysis of graduate retention by June 2005. â¢ Investigate systems to improve reporting on staff development and implement by end 2005.

Work-life balance LA4, LAI2

DEH understands that staff must be able to balance the demands of work and home life if they are to perform well in the workplace and successfully achieve longer-term career goals. To achieve an appropriate balance, staff must have access to suitable leave entitlements and flexible working arrangements. They must also

know that they can exercise an effective influence over workplace conditions, and contribute to, organisational change.

DEH involves staff in decision making about the structure and objectives of the organisation through such initiatives as staff surveys, workforce consultation about restructures, and staff input into processes of business and strategic planning. A number of formal mechanisms are also in place to ensure staff are informed of, and can contribute to, organisational change. These include the DEH Consultative Committee and the establishment of sub-committees to address specific change

issues.

415

LA7

Through its Certified Agreement and individual Australian Workplace Agreements (AWAs) DEH provides a variety of leave entitlements and alternative working arrangements, such as flexible working hours, part-time employment, and home-based work. These provide staff with flexible options for balancing their work and

personal lives.

DEH also provides family rooms for its staff at the John Gorton Building in Canberra and is currently investigating accreditation with the Australian Breastfeeding Association to become a breastfeeding friendly workplace.

Goals

â¢ Review outcomes of the staff survey (completed July 2004) to identify areas of improvement and appropriate strategies, by end 2004. â¢ Obtain accreditation with the Australian Breastfeeding Association by end 2005.

Healthy and safe working environment LA5,

Occupational health and safety

DEH's occupational health and safety (OH&S) policy and agreement and their associated programmes underpin our commitment to maintaining a safe working environment and helping to ensure the health of our staff. An OH&S Committee, designated work groups who represent and safeguard staffs health and safety interests, and a network of health and safety representatives are primarily responsible for the effective implementation of OH&S policies and programmes. Our aim is best practice in occupational health and safety management.

Departmental wide OH&S activities and programmes include: workplace assessments (on request); the Employee Assistance Programme (EAP) that provides a free counselling service; and a range of stress reduction programmes.

Our Rehabilitation Unit assists staff who have been affected by injury or illness, whether or not work-related, to make a safe, early and effective return to work. The unit works closely with the employee, their manager/s, rehabilitation providers, Government medical officers and Comcare Australia.

In 2003-04, a number of DEH divisions initiated various voluntary health and fitness programmes. For example, some divisions have invited staff to participate in the voluntary 'Health Futures' programme which provides free health checks and promotes the benefits of healthy eating and regular exercise, and some initiated the Heart Foundation's 10 000 Steps programme.

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Performance - occupational health and safety

We are required to maintain records of OH&S incidents, including near misses, and report these to the Australian Government's workers compensation insurer, Comcare Australia.

Compensation claims

In 2003-04, the Department had 35 compensation claims, a slight increase on 2002-03 when 31 claims were received. Sprains and strains accounted for 49% of those claims and back injuries for a further 20%.

There were no work related fatalities in 2003-04 or 2002-03.

Absenteeism

In 2003-04, for every 100 working days 2.44% of available working hours were lost through staff being on sick leave (with or without a doctor's certificate). On average, each employee took 6.4 days of sick leave. This excludes staff employed in Parks Australia, and does not include absences due to compensation claims.

Participation in OH&S activities 2003-04

â¢ 173 workstation assessments were completed. â¢ 8% of staff used the counselling service provided under the Employee Assistance Programme. â¢ 30 staff attended the 'Get Tough with Stress', 38 the 'Back in Alignment' and 16

the 'Alexander Technique' programmes respectively.

Goal

â¢ Investigate and implement more informative reporting systems for OH&S by end 2005.

417

Diversity LAb, HR12, HR4

Diversity policy and strategy

The Department's Workplace Diversity Policy and Workforce Diversity Strategy are the central mechanisms for ensuring a diverse workforce and preventing discriminatory practices. They are based on, and designed to, instil in staff the following principles:

â¢ All employees are treated with respect and courtesy. â¢ Individuals' rights and differences are acknowledged and accepted. â¢ Workplaces are free from unlawful discrimination. â¢ All employees have the opportunity to reach their full potential. â¢ Workplace structures and conditions should enable all staff to contribute to their

potential and balance work and personal commitments. â¢ Decisions affecting staff should be based on facts, not stereotypes or discriminatory values.

The strategy is supported by specific initiatives, including the Disability Action Plan, the Workplace Contact Officers Network and the Indigenous Career Development and Recruitment Strategy.

Disability Action Plan

The Disability Action Plan, to be fully implemented by December 2004, is designed to raise staff awareness of disability issues, ensure that information is accessible (for example, in Braille), and all provide staff with appropriate physical access to departmental offices and other work locations. Under the strategy the needs of staff with disabilities and external stakeholders must be considered during the development of policies and/or operational procedures.

Workplace contact officers network

The Department has a network of Workplace Contact Officers comprising 18 staff across the Department. Their role is to provide other staff and managers with information and support in relation to issues such as harassment, whistleblowing, grievance procedures, workplace diversity, APS values and the APS code of conduct. Their role does not encompass the instigation of investigations.

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Indigenous Career Development and Recruitment Strategy

This strategy, through its related initiatives, provides Indigenous Australians with equitable employment and career development opportunities across all operational areas of DEH. -

The strategy encompasses, among other initiatives: cross-cultural awareness

programmes for all staff; workplace diversity awareness workshops; resource exchange and information programmes for Indigenous staff and communities; a traditional skills workplace recognition programme, and mentors for new Indigenous employees. Appropriate training is also provided for Indigenous interviewees and selection panels.

The traditional rights, roles and obligations of Indigenous employees are recognised through measures such as ceremonial leave entitlements for all Indigenous employees. Those located at Uluj:u-Kata Tjuta National Park may be granted five days additional paid personal leave to attend traditional ceremonies relating to Tjukurpa.

A Working Group reports regularly to the Department of the Environment and Heritage Network on Indigenous Issues, which is a high level committee. It is proposed that in 2004 05 this group be replaced by an Indigenous Committee that will report directly to the Executive Roundtable, which comprises all Division

Heads.

Performance - diversity

At present, DEH does not capture reliable diversity data such as the number of Indigenous Australians employed. A significant issue is that disclosure of personal characteristics by staff is voluntary. However, during 2004-05, DEH will investigate

methodologies for collecting improved data.

Goals

â¢ Finalise implementation of the Disability Action Plan by December 2004.

â¢ Establish an effective methodology to collect statistics on employee diversity by end 2005.

419

Community activity No Gill indicator

DEH provides staff with access to paid leave for many activities that benefit the community. These activities include donating blood, fire fighting, participating in other emergency or disaster relief situations, and defence force training. Some DEH staff participated in each of these activities in 2003-04.

At present DEH does not collect information on staff participation in these community activities.

Goal

â¢ Develop and implement a system in 2004-05 for collecting information on staff involvement in those community activities for which DEH has provided paid leave.

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Economic performance

Overview Contribution to the economy DEH contributes to the economy by providing employment, paying wages and other benefits to its employees, and sourcing goods and services from suppliers and contractors. As an Australian Government agency it differs from private enterprises

in that it pays only fringe benefit tax and GST.

2003-04 outcomes

â¢ $90.6 million paid in wages and related benefits. â¢ $41.4 million spent on suppliers for the provision of goods and services. â¢ Over 90% of invoices from suppliers paid within 30 days of receipt. â¢ 23.1% of DEH's Canberra-Sydney sector air travel requirements provided by

smaller airlines.

Environmental purchasing

Australian Government and DEH purchasing guidelines require staff to consider the environmental impact of goods and services purchased and encourage suppliers to improve their environmental performance.

Monitoring issues

At present DEH does not have a robust monitoring system for ensuring that all purchasing decisions meet good environmental purchasing practice. Our goals for 2004 05 will include the development and implementation of suitable monitoring systems to address this issue.

Employee benefits EC5

As at 30 June 2004, DEH employed 1340 staff. Total payroll and benefit expenses for 2003-04, excluding accrued leave entitlements, was $90.6 million. These benefits included salaries and allowances, lump sums paid to staff who left the Department permanently, superannuation contributions and performance pay.

421

Suppliers and contracts EC3, EC4,EC11

Expenditure on suppliers

In 2003-04 DEH's total expenditure on suppliers was $41.4 million. Table 5 provides a breakdown of expenditure by the Department's major business reporting categories.

Table 5: Expenditure on suppliers by major reporting categories (2003-04)

Expenditure spread

Of the $41.4 million spent on suppliers in 2003-04, some 58% was accounted for by goods and services provided to the Department by 10 providers. Figure 9 shows those providers and the amount paid to each.

Category Expenditure ($ million)

Consultants and other professional services 11

Information services (ICT) 8.8

Property 8.7

Travel 4.1

Office services 2.3

Furniture and equipment 1.3

Legal services Li

Public relations and provision of public information 0.9

Recruitment and professional development 0.9

Transport 0.8

Insurance 0.8

Conference/workshops 0.5

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Figure 9:Top 10 suppliers

10 -

8-7-6-5-4-3-2-1-

Do llar

illio

n )

â¢â¢â¢â¢ 0 1 111.1 1

CSIRO Qantas ISIS Southern Corncare Universal Carlson United Dept of IPEXITG

Projects Cross Australia McCann Wagonlit Process Finance Pty Corn Travel Solutions

Supplier

Supporting smaller businesses - air travel

In July 2003, the Government decided that Australian Government departments should work towards allocating a minimum of 10% of their Canberra—Sydney business air travel to smaller airlines. By 30 June 2004, DEH had exceeded that objective, having allocated 23.1% of its Canberra—Sydney air travel to smaller

airlines.

Payment policy

The Financial Management and Accountability Act 1997 includes specific time requirements for paying small businesses. The Act requires Australian Government agencies to pay invoices of up to $5 million from small businesses within 30 days, subject to the goods or services having been accepted by the agency.

The percentage of invoices from all suppliers paid within agreed terms and within 30 days of receipts by DEH in 2003-04 (excluding the Australian Antarctic Division) was 90.09%. This outcome exceeds the Australian Government's target of 90% of payments to be made within 30 days.

423

Environmental purchasing

DEH has two main mechanisms for ensuring that environmental issues are considered during procurement processes. Our Chief Executive's Instructions require all staff to consult and use the Australian Government's Environmental Purchasing Guide when they are procuring goods or services. This guide is supported by DEH's internal purchasing guidelines, available to all staff. The

internal guidelines require staff involved in purchasing decisions to:

â¢ purchase goods and services that have the least adverse environmental impact â¢ work with industry to encourage improved environmental outcomes on the part of provider â¢ assess the environmental impact of goods and services against common

standards.

At present, however, DEH does not have an effective monitoring system to ensure that staff are always referring to, and applying, the appropriate guidelines during the purchasing process, or that the goods and services purchased are ones that have the least adverse environmental impact.

Goals

By the end of 2004 05:

â¢ develop and implement a monitoring system to ensure good environmental purchasing practice â¢ increase the proportion of invoices paid within 30 days to over 91% â¢ continue to better the Australian Government's goal of agencies allocating

a minimum of 10% of their Sydney - Canberra sector air travel to smaller airlines.

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Australian Antarctic Division, Parks Australia

and Supervising Scientist Division - operational responsibilities and activities

At present the AAD's reporting systems are not linked to those that gather environmental, social and economic data on the internal operations of the rest of the Department. Consequently, the environmental, social and economic indicator sections of this report do not address the internal operations of AAD.

In addition, reliable information is not yet available for the environmental performance of the SSD or those elements of Parks Australia located outside the John Gorton Building. Consequently, the environmental indicator section of this report does not address SSD or the external elements of Parks Australia.

The day-to-day operational tasks of AAD, SSD and Parks Australia do, however, impact directly on issues that affect local communities throughout Australia. Many of those issues also have a wider significance for all Australians. This section of the TBL report is designed to provide readers with an understanding of the operational responsibilities of AAD, SSD and Parks Australia and an insight into how their operational activities address wider environmental, social and economic issues.

The section includes:

â¢ an overview of the structure and operational responsibilities of AAD, Parks Australia and SSD â¢ a selection of case studies showing how they are responding to some wider environmental, heritage conservation, social and economic issues, often in

cooperation with local communities and other stakeholders.

Australian Antarctic Division

Australian Antarctic Division headquarters - Kingston, Tasmania.

The Australian Antarctic Division (AAD) is responsible for leading the Australian Antarctic programme (AAP) and advancing Australia's Antarctic interests.

Based at Kingston in Tasmania, it represents the Australian Government within the Antarctic Treaty System, and administers the Australian Antarctic Territory and the Territory of Heard Island and the McDonald Islands.

425

Figure 10: Map ofAustralian Antarctic Division permanent operational sites

Heard Island -

Macquarie Island 77(tfl -

Casey

Davis

A N T A B C T C P

The AAD provides strategic, policy, operational and scientific resources to maintain and enhance Australia's influence in the Antarctic Treaty System. Its resources are also used to conduct, coordinate and support its own and other agencies' scientific research in Antarctica, the sub-Antarctic and the Southern Ocean. The AAD maintains a permanent Australian research and monitoring presence at its three stations on the Antarctic continent and its station on Macquarie Island. Activities are also undertaken at AAD facilities at Kingston and Macquarie Wharf, as well as at the University of Tasmania in Hobart (see Figure 10).

The AAD actively pursues protection of the Antarctic environment. This objective is underpinned by research activities, promoting Antarctic research and the AAP in universities and elsewhere, environmental impact assessment, regulation and providing public information on the Antarctic. The research carried out as part of the AAP improves our understanding of the Antarctic region, including its role in the global climate system. Public dissemination of information helps to ensure that Antarctica is valued and understood by the wider community.

All research and operational activities carried out as part of the AAP are assessed for their potential impact on the environment in the Australian Antarctic Territory and the Territory of Heard Island and the McDonald Islands. The AAD's activities are considered under, and comply with, the requirements of relevant Australian legislation and international treaties. These include: the Antarctic Treaty (Environment

Protection) Act; the HtMl Environment Protection and Management Ordinance, and the Environment Protection Biodiversity Conservation Act 1999.

426 Department of the Environment and Heritage Annual Report 2003-04

Antarctic knowledge passing to a new

generation.

427

Triple bottom line report Other reports

As part of its ongoing commitment to protecting the environment, the AAD

has implemented an Environmental Management System (EMS) certified to the international standard IS014001. The EMS covers AAD's activities at its headquarters in Kingston and its Antarctic stations. It provides a framework for assessing and reducing the environmental impacts of the AAD's activities.

Tasmania's Antarctic Midwinter Festival

Children get close to Australia's Antarctic history.

For the AAD to meet its responsibilities it needs to attract suitable personnel for its Tasmanian and Antarctic based operations. It also needs to ensure that

its work and the Antarctic environment are understood and valued by the wider community. The Tasmanian Antarctic Midwinter Festival provides a valuable opportunity to address these needs and,

at the same time, contribute to an event that provides economic, cultural and social benefits for the wider Tasmanian community.

Coordinated by Antarctic Tasmania, an office of Tasmania's Department of

Economic Development, the Festival aims "to educate, inform, inspire and celebrate the Tasmanian community's involvement with Antarctica and Australia's leading role in Antarctic science and policy" (Antarctic Tasmania, 2004). Starting as a one-day event in 2001, it is now a nine-day festival featuring 119 events at 19 locations

across Tasmania. In 2003, over 35 000 Tasmanians, interstate and overseas visitors participated in the festival.

The AND has been a sponsor and active participant in the festival since 2001. Its participation complements other public activities, such as a major annual exhibition at Parliament House

in Canberra, the Antarctic magazine, the display area at its Kingston headquarters and its web site.

The festival allows people to meet AAD staff and ask them about the work they undertake and possible employment opportunities with the AAD in Antarctica or Australia. The displays and

Wind turbine in action.

activities show the public, especially children, the importance of the work carried out as part of the Australian Antarctic programme. In 2003 these displays attracted large numbers of children, with over 1800 school students visiting in organised school groups. Establishing an Antarctic field camp in the middle of Hobart is a

particularly popular activity for children to witness. Participation in activities such as 'Science in the Pub' also allows AAD scientists to showcase their work.

AAD will continue to sponsor and participate in activities such as the Antarctic Mid-winter Festival.

Fossil fuel replacement - the Mawson wind farm

Meeting Mawson station's energy needs typically required around 700 000 litres of diesel fuel each year, producing approximately 2000 tonnes of CO2. If an alternative energy source was feasible, environmental

impacts from burning fossil fuels and the station's operating costs could be substantially reduced.

The AAD began researching the feasibility of wind turbines in 1993, when a joint Australian—French project was established to investigate alternative energy options for Antarctic stations. Encouraging results were obtained from the field trial of a 10kw wind turbine at Casey station.

With mean wind speeds at Mawson of 39 km/h and gusts exceeding 180 kin/h during blizzards, wind generated electricity was a serious option. In 2001, the AAD formed a consortium with PowerCorp Pty Ltd (a Darwin-based contractor) and a German company, Enercon GmbH, to develop and install Antarctica's first wind farm at Mawson. The partnership enables risks to be shared and ensures a state-of-the-art facility. An environmental impact assessment was prepared, to ensure that the project is consistent with Australia's obligations under the Protocol on Environmental Protection to the Antarctic Treaty and Australian law.

428 Department of the Environment and Heritage Annual Report 2003-04

Installing the blades- blade

housing.

Triple bottom line report

Other reports

PowerCorp developed and installed a system to optimise operation of the wind turbines and the remaining diesel generators against the station's heating and electrical load. They also developed an electric boiler-based energy storage system to stabilise the frequency and voltage on the station grid and provide the station's heating needs. Enercon modified the wind turbines to suit Antarctic conditions. AAD teams erected the turbines, poured the concrete foundations and installed the infrastructure and cabling.

Installation of two (of three) 300kw wind turbine generators began in the summer of 2001-02. Commissioned in 2003, the wind farm reduced diesel consumption by 27% in its first year of operation. Installation of additional electric boiler capacity in the 2003-04 summer and ongoing fine tuning of the control system could result in up

to a 50% reduction in diesel fuel used compared to a 2002 baseline. Westpac Bank has entered into a pre-purchase agreement with AAD for the Renewable Energy Certificates (RECs) associated with the wind turbines.

A grant from the Australian Greenhouse Office is allowing the AAD to investigate the feasibility of generating hydrogen on site with excess energy from the wind turbines. The hydrogen would be stored in fuel cells and used to power Mawson during low wind periods. If this technology is successful, implementing a full-scale system and the erection of a third wind turbine would allow Mawson to meet all of its non-transport energy needs from a renewable source.

429

Installing the blades.

Protecting the Antarctic environment

- removing waste from Thala Valley

Up to the mid-1980s, waste was usually dumped in gullies and bays in the immediate vicinity of stations.

In the mid-1990s the AAD decided to clean up the abandoned waste disposal site at Thala Valley near Casey station, thus reducing the environmental impact of the waste stored there. This project was also part of a wider aim - to develop more effective techniques for cleaning up contaminated sites in the Antarctic.

Thala Valley remediation site. Site assessments were conducted over

a number of summers to identify issues

and establish environmental monitoring baselines. In 2000, suitable on-site and post-removal hazardous waste remediation technologies were identified. Diversion channels to direct summer melt water away from the site, and a specially designed water treatment plant to separate particulate and dissolved contaminants from site run-off, were among methods used to control the spread of contaminants from the waste site.

In the summer of 2003-04, the AAD removed an estimated 1000m3 of waste from the site and loaded it into purpose-built containers donated by Vivendi (now Veolia). Samples from each container were analysed to determine whether heavy metal stabilisation treatment would be needed. The material was shipped to Tasmania, treated if necessary, and deep buried in an appropriately certified landfill near Hobart. This complex project was completed in accordance with Australian quarantine and environmental protection requirements, and those of the Protocol on Environmental Protection to the Antarctic Treaty.

As a result of the project, AAD developed novel techniques for monitoring the environmental impacts of contaminated sites and new procedures for remediation of contaminated ground in cold regions. A scientific basis to underpin environmental guidelines for cold regions was also established. AAD has shared its experience at international forums and 24 scientific papers related to the clean-up project were published in peer-reviewed journals in 2003. Lessons learnt are particularly valuable for other nations involved in cleaning up or remediating contaminated sites in the Antarctic or similar regions.

430 Department of the Environment and Heritage Annual Report 2003-04

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Other reports

AAD is using the Thala Valley project findings in its development of a long-term plan to clean up contaminated sites across Australia's Antarctic territory and sub-Antarctic islands. The findings will also help to develop practical, scientifically sound and cost-effective ways of meeting Australia's environmental obligations

under the Madrid Protocol for protection of the Antarctic environment.

Parks Australia

The Director of National Parks is a 'corporation sole' established under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The Director is responsible to the Minister for the Environment and Heritage. The EPBC Act provides for the Director to proclaim and manage Commonwealth

reserves. The term 'reserves' includes all the areas proclaimed under the EPBC Act with names such as national parks, marine parks, national nature reserves, marine national nature reserves, marine reserves, and botanic gardens. Figure 11 shows the locations of Commonwealth reserves declared under the EPBC Act.

Responsibility for the marine protected areas has been delegated to the Land Water and Coasts Division and responsibility for Heard Island and MacDonald Islands has been delegated to the Australian Antarctic Division of the Australian Environment and Heritage portfolio.

The holder of the office of Director of National Parks has also been delegated functions and powers to administer programmes that complement his/her functions. The staff involved in these programmes are included within Parks Australia. Under these delegations, the Director administers the National Reserve

System Programme - a programme of the Natural Heritage Trust that includes the Indigenous Protected Areas programme. The Director also manages the Australian Biological Resources Study.

Kakadu National Park, Uluru-Kata Tjula National Park and Booderee National Park are jointly managed with traditional Indigenous owners, and Parks Australia is a significant employer of Indigenous Australians in these remote areas.

431

Kakaclu

National Park

Lihou Reef National Nature Reserve

M iddl Elizabeth and I eton Reefs

Marine National / Nature Reserve

I Norfolk Island I National Park

Mermaid Reef Marine National Nature Reserve -

Booderee National Park Ningaloo Marine Park (Commonwealth Waters) /

Uluru-K National Park ata ijuta

I-- *

Lord Howe Island Marine Park (Commonwealth Waters)

Solitary Islands Marine Reserve (Commonwealth Waters)

Great Australian Bight Marine Park (Commonwealth Waters)

Australian National Botanic Gardens

Tasmanian Seamounts Marine Reserve Heard Island and McDonald Islands Marine Reserve and

Conservation Zone Macquarie Island

Marine Park

CopyoIcrlr Comm enweaIth of Australia, 2004

0 500 1000 1 1500

------1 l-1 Kilometres

Christmas Island National Park

Ashmore Reef ___ - Cartier Islands

National Nature Reserve - Marine Reserve

Coringa-Herald National Nature Reserve I. *

uiuxeeino National Park

Figure 11: Locations of national parks and reserves protected under the

Environment Protection and Biodiversity Conservation Act 1999

432 Department of the Environment and Heritage Annual Report 2003-04

Phillip Island (Norfolk Group) 1995— after

eradication of rabbits.

Triple bottom line report

Other reports

Restoration of Philip Island

Philip Island is a 190 hectares uninhabited island lying approximately seven kilometres south of Norfolk Island. It was almost denuded of

vegetation by pigs, goats and rabbits released for food and sport by the early colonists. Rabbits were finally removed in 1988, making rehabilitation of the

island possible.

When it was added to Norfolk Island National Park in 1996, the task facing Parks Australia was to restore its natural environment. This project is expected to take at least another 20 years.

With few oceanic islands occurring between latitude 251S and 35°S, this

island group is an important link between tropical and temperate environments. The island has rare and endemic species of flora and fauna including five plant species endemic to the Norfolk group, 32 native species and 31 exotic species. The Norfolk Island Abutilon (a small herb) was rediscovered on the cliffs of

Philip Island after being presumed extinct for over 70 years. It is an outstanding breeding island for 12 species of seabirds. It is also a significant geomorphological feature and has special recreational and educational features. In recognition of its significance, Phillip Island is included on the Register of the National Estate.

In the absence of exotic predatory fauna such as rats, cats and cockroaches, Phillip Island provides an important breeding ground for seabirds and a vital refuge for some of the native and endemic fauna, including two terrestrial reptiles, a gecko and a skink. Many species of insects, spiders, centipedes and molluscs occur on Philip Island that are not present on Norfolk Island itself.

t. 13 zle-oak survives rabbi! c,Yio1i

433

Planted Norfolk Island Pines and other native

species reclaim the moonscape.

Phillip Island is culturally important to the people of Norfolk Island and the rehabilitation programme is a significant employer of park and contract staff. The annual work programme includes regular weed control of exotic woody weeds such as African olive and Kikuyu grass, and planting of native and endemic species. The native plants help to hold the soil together and re-establish an environment in which the native animals, such as the gecko, can thrive.

An ongoing annual work programme is planned and, subject to funding, will continue until Phillip Island has been fully rehabilitated.

The Australian National Botanic Gardens (ANBG) - water use reduction

Over recent years the Australian Capital Territory (ACT) has been dealing with water shortages, and the ANBG shares the community consensus that long-term water conservation strategies are essential. Although constrained by the needs of a diverse, publicly accessible collection, it has to develop and implement effective water saving measures.

In 2003, the ANBG responded to ongoing shortages by intensifying its water use reduction programme. Sections of the gardens were reassessed to establish more precise watering requirements and priorities. Relatively simple water saving measures were identified and successfully implemented. These included:

â¢ monitoring to ensure water use matches plant needs and evaporation rates â¢ increasing the use of mulch to reduce water evaporation â¢ isolating the lawn irrigation system to ensure watering of lawns is on an as needs basis â¢ improving the management of ponds to reduce evaporation and the need for topping

up'

â¢ promptly replacing damaged sprinkler heads and ensuring optimal arc spray adjustments â¢ installing dual-flush toilet cisterns.

434 Department of the Environment and Heritage Annual Report 2003-04

Hand watering is an efficient water

saving technique.

Stormwater holding tanks at new nursery.

Yellow crazy ant Anoplolepis gracilipes.

Triple bottom line report

Other reports

The new production nursery incorporates water saving measures such as composting toilets. Two 5000-litre tanks capture rainfall and nursery irrigation run off for use in watering garden

display beds.

Since 2003, annual water use has been reduced by an estimated 25% (50 megalitres), redudng demand from local public reservoirs. There have also been important incidental benefits for the ANBG. Cost savings are supporting other

ANBG programmes and links with the wider community have been strengthened. The ANBG was invited to participate in ACT Electricity and Water Authority's 2003 'Stop the Drop - Reduce the Use' campaign and the ANBG Director was appointed as an ACT Water Ambassador for the

2003-04 summer.

The ANBG's immediate goals are to maintain the current level of water savings indefinitely and further reduce the use of potable water for

irrigation by using lower grade water from other sources. To achieve the first goal, however, existing measures will need to be supplemented by the installation of a modern water control computer system. This is currently under consideration.

Controlling crazy ants on Christmas Island

The yellow crazy ant Anoplolepis Gracilipes was accidentally introduced to Christmas Island sometime before 1934. During the 1990s there was a population explosion with the formation of high-density super-colonies, comprising hundreds of millions of ants spread over some

2500 hectares, or 25% of the island's forest. The crazy ant outbreak has been accompanied by, and may have been a major cause of, massive mortality in the endemic red crab and even more severe population crashes in endemic

skinks, blind snakes, geckos and bats. A number of endemic snails and insects have apparently become extinct already.

435

Red crabs during their annual

migration.

Over the last five years the Australian Government has spent more than $1.5 million (including $200 000 from the Natural Heritage Trust) controlling this infestation. The programme began with research and ground baiting, supplemented in late 2002 with an extensive aerial baiting exercise.

Of the 2500 hectares originally infested, 2143 were aerially baited. New colonies have established and existing colonies are expanding continuously. Baiting has reduced overall ant densities by 95% but the rest needs to be baited. A combination of aerial and ground baiting will be required to treat these remaining areas from 2004 to 2006. Without control, the existing 400 hectares of infestation could double every year, as would the eventual cost of control.

Christmas Island red crab killed by crazy ants.

The programme has had direct economic and social benefits for the local community. Locals fill two full-time positions and local businesses supply many of the programme's needs.

The long-term goal is to contain the ant at a density that has no significant environmental impact. While eradication is desirable it is probably impractical unless a much more effective method can be developed. Control to negligible densities is possible within five years

provided funding is sufficient to maintain the required control effort, estimated at $1.9 million over the five years to 2009.

Supervising Scientist Division (SSD)

The Supervising Scientist is a statutory office under the Environment Protection (Alligator Rivers Region) Act 1978 and is a division within DEH. The Supervising Scientist Division (SSD) consists of the Environmental Research Institute of the Supervising Scientist (eriss) and the Office of the Supervising Scientist (oss).

eriss conducts environmental monitoring and research into the impact of uranium mining on the environment and people of the Alligator Rivers Region of the Northern Territory, which incorporates Kakadu National Park. eriss also conducts research on the ecology and conservation of tropical wetlands, and is a partner in the National Centre for Tropical Wetland Research. oss carries out supervision, audit and policy functions in relation to uranium mining in the Alligator Rivers Region.

436 Department of the Environment and Heritage.Annual Report 2003-04

Triple bottom line report

Other reports

Traditional fire regimes - managing Boggy Plain

Floodplain burning, an important traditional management pra ctice.

Boggy Plain is a freshwater wetland on the South Alligator River floodplain in Kakadu National Park. It supports many freshwater floodplain vegetation communities and a diversity of fauna. It is also one of the most important dry season refuges for magpie geese in the Northern Territory. In some years,

85% of the total Northern Territory magpie geese population gathers there to feed.

It is exposed to potential impacts from threats such as feral pigs, weeds and saltwater intrusion. Not being exposed to mining impacts, it offers a valuable contrast to floodplains that are so exposed. This provides a non-mining reference site that assists SSD to distinguish between potential impacts caused by mining-related disturbances, other anthropogenic influences, or natural influences.

The use and management of this important wetland by traditional owners represents many of the natural and cultural values of Kakadu. However, according to traditional management practice, floodplains need to be burnt periodically to maintain natural and cultural values. Kakadu traditional owners consider that Boggy

Plain has not been burnt correctly during the past decade, allowing the native grass Hymenachne acutigluma to spread over much of the area. This has limited access for hunting and gathering and reduced the habitat for wildlife.

Traditional burning regimes have been reinstated, and SSD is collaborating with local Aboriginal people and Parks Australia North to map and assess the impact of traditional fire regimes on Boggy Plain's vegetation, using remote sensing in conjunction with ground-based surveys. Results suggest that

traditional burning practices effectively reduce dense Hymenachne monocultures, allowing a diverse range of species to re-establish.

The information gathered at Boggy Plain will continue to assist the local Indigenous community assess the impact of traditional management practices. It will also continue to inform SSD's ongoing studies into landscape-scale impacts and to distinguish between mining impact and other influences.

437

Revegetation at Nabarlek is monitored through

photographic records.

Collaborative minesite rehabilitation - Narbarlek

Monitoring and managing the impact of uranium mines on local environments and the restoration of areas impacted by decommissioned mines are significant issues for Indigenous communities and other stakeholders. The Narbarlek mine, in Arnhem Land near Kakadu National Park, was decommissioned in 1995-96 and is the first uranium mine to be rehabilitated under a contemporary regulatory regime.

Rehabilitation at Narbarlek provides a reference for future mine rehabilitation practices.

Stakeholder groups cooperating in the rehabilitation of Nabarlek include the Northern Land Council, the local Indigenous community, Pioneer (mining company), the Northern

Territory Government, SSD and Charles Darwin University. Genuine collaboration has imparted a strong sense of community ownership and

pride, providing a valuable model for other rehabilitation projects.

Demed, a local Aboriginal association, has an active rehabilitation programme involving revegetation of native species, weed control and fire management. Pioneer supports work by Demed's Land Management Rangers. This involves planting islands of favourable species, and active weed and fire management surrounding regrowth plots. Demed provides SSD with access to its revegetation programme and weed survey records. In return, SSD uses its research to assist Demed to review their revegetation and weed management plans.

SSD monitors site rehabilitation, with a view to developing a cost-effective, ground-based and remote sensing monitoring and assessment programme that can be applied to the Ranger uranium mine. It also conducts ground-based vegetation surveys, comparing the data to remote sensing captures of Nabarlek in the wet and

dry seasons. This provides a 'whole of landscape assessment' of the area. SSD's research findings are being used to develop management options in discussions with all stakeholders.

438 Department of the Environment and Heritage Annual Report 2003-04

Regrowth plots have not always been

successful.

Other reports Triple bottom line report

SSD and Charles Darwin University collaborate on research into revegetation success at Nabarlek. The research shows that, although

revegetation commenced in 1995, for at least half the mine site the primary revegetation objective is still to be achieved.

SSD's collaborative research at Nabarlek with Charles Darwin University is continuing. SSD will also be continuing its work with traditional landowners to

ensure its research findings assist their communities to find sustainable solutions to revegetation issues at Nabarlek and other affected sites.

439

INDEPENDENT VERIFICATION STATEMENT

To the Secretary of the Department of the Environment and Heritage

Introduction

Appendix A - Australian National Audit

Office Verification Statement

di Ak k

Australian National Audit Office

We have performed an independent verification of selected environmental and social indicators from the inaugural Triple Bottom Line (TBL) report completed by the Department of the Environment and Heritage (DM1) for the year ended 30 June 2004.

In undertaking our verification activities, we adopted an independent assurance approach that, in the absence of generally accepted international standards for providing assurance over TBL reports, reflects contemporary practices and guidance including: â¢ local and internationally recognised

financial and environmental auditing standards; â¢ the assurance principles proposed by the Global Reporting Initiative (GM); â¢ the Department of Environment and

Heritage's Guide to Reporting Against Environmental Indicators; â¢ FaCS' Guide to Reporting Against Social Indicators; and â¢ Standards Australia draft General

Guidelines on the Ver(/ication, Validation and Assurance of Environmental and Sustainability Reposes (DR 03422).

Scope and Objective

The information included in DEll's TBL report is the responsibility of DEN. We were asked to provide independent verification of selected economic and social data, and commentary pertaining to that data, contained

in the report. The scope of our verification involved: â¢ selection of a sample of data parameters, from the total of data to be reported upon; â¢ definition of the scope of activities within

DEN to be covered by verification; and â¢ undertaking the necessary tasks to verify or otherwise the data parameters selected.

The objective of our verification work was to provide an independent opinion on the completeness, accuracy and reliability of the selected data parameters and the representation and discussion of such data in the report. The reporting period nominated was I July 2003 1030 June 2004.

DEN's TBL report coven the internal operations and performance of the Department only, specifically excluding: â¢ the Australian Antarctic Division (AAD),

and the Supervising Scientist Division (SSD); â¢ the five statutory authorities: Australian Heritage Council; Director of National

Parks; Great Barrier Reef Marine Park Authority: Office of the Renewable Energy Regulator , and Sydney Harbour Federation Trust; and â¢ the three executive agencies: Australian

Greenhouse Office (AGO); Australian Government Bureau of Meteorology: and the National Oceans Office.

The report does not cover the outcomes Or policies and programs that DElI delivers on behalf of Government.

Throughout the report, those parameters that were selected for verification and were successfully verified have been marked with the symbol /. Those parameters that were selected but which we were unable to verify

have been marked with the symbol 0.

Verification work performed

We examined, on a sample basis or more comprehensive basis where necessary, the completeness, accuracy and reliability of the data presented in the report by:

where data is generated by a system, examining the comprehensiveness of the

550 ns oat caneenra ACT anus Cesiesan ReUse 19 Naltonal Ciuh BARTON ACT Phone (02) suns 7300 Fa t02t 6203 7777

440 Department of the Environment and Heritage Annual Report 2003-04

Other reports Triple bottom line report

systems and processes for data collection, collation and aggregation: â¢ testing and reconciling data back to source documentation; â¢ testing algorithms, arithmetic accuracy

and graphical representation: â¢ reviewing assumptions and estimates and the basis of same for logic and justification; and â¢ testing the interpretation of definitions

used to describe data in the report for clarity; and â¢ reviewing the presentation and description of data within the report for consistency

with our understanding of the data.

The data was assessed against an error coefficient of ±10%, which was agreed between 1)EH and the ANAO.

Opinion and conclusion

Based on the results of our verification procedures we conclude that, in all material respects, the data pertaining to the following parameters to be complete. accurate and

reliable: â¢ ENI - Total Material Use

(printing/photocopy paper): â¢ EN3 Direct Energy Use; â¢ fN5 - Total Water Use: â¢ I NIS - Greenhouse Gas Emissions: â¢ EN I I Total Amount of Solid Waste by

Destination; â¢ LAI - Breakdown of Workforce by Status, Employment Type etc; and â¢ LA2 Employment Net Creation and

Average Turnover.

All other environmental and social data parameters tested could not be verified for completeness, accuracy and reliability in all material terms. This is due to a combination

of factors including: â¢ Site absence of mature systems to accurately record and report associated employee training information, including

hours undertaken. Cost of training courses and indirect costs: and â¢ information related to safety incidents and accidents is currently not captured in the

format required to he reported under the parameter. In addition, systems and processes have not been developed and implemented at a local level to track workers compensation performance.

Commentary

It is acknowledged that this was the inaugural TEL verification program for DER. As consequence. the data parameters selected had not previously been subject to external

verification. We also acknowledge that DER management have expressly requested our opinions oil improving the completeness. accuracy and reliability of reported data, so as

to overcome such qualifications in the future.

The initiative to undertake TEL reporting within the Commonwealth is commendable and in line with the contemporary principles of transparency and accountability for both

financial and non-financial organisational performance. The program of external verification of TBL disclosures by DER will only strengthen the application of such principles.

P.J. Barrett

Auditor-General

Canberra

28 September 2004

441

Appendix B

- Indicators, benchmarks, performance and goals

Environmental indicators (derived from the Gill and the DEHTBL Guide)

Indicator Description Benchmark/s Performance 2003-04 Goal/s 2004-05 Page

EM1 Environmental management

conformance

Management System (EMS) certified to ISO14001 standard

EMS IS014001 certification maintained EMS remains certified to 1S014001 standard

387-90

Implement review recommendations

EMS reviewed EM2 Environmental performance improvement process

387-90

EM3 Integration of environment

with other business systems

DEH Executive agreed to implement EMS review recommendations

Implement review recommendations

387-90

EN3 Energy 1

Direct energy use (tenant light and power) Australian Government

target:

10000 MJ per person per

5500 Mi per person per year Achieve 4500 Mi per person per year by 2005-06

Upgrade metering arrangements to improve electricity consumption reporting

390-4

Direct energy use (transport) Australian Government target: 28% of vehicles to

score in top half of Green Vehicle Guide (GVG) scoring range

17.86% of DEH vehicle fleet scored 10.5 or higher against GVG

Improve GVG score

Increase staff take-up of environmentally responsible transport options, including information and

communication technologies as alternatives to air travel

o dej

aull

wooq

al dlAj

EN4 Indirect energy use Zero indirect emissions from Continue greenpower 390-4 Energy 2 100% green power purchase

EN 17 Initiatives to use renewable Greenpower supplies tenant Continue greenpower 390-2 Energy 3 energy sources and increase light and power purchase energy efficiency Energy Management Option system

EN8 Greenhouse gas emissions 530 tonnes of CO2 (gross) Renew Greenhouse 396-8 Greenhouse 1 388 tonnes (net) after offsets Challenge agreement in 2005

559 kg per person per year (gross) 409 kg per person per year (net)

Greenhouse 2 Initiatives to decrease Greenhouse Challenge Renew Greenhouse Challenge 396-8 greenhouse gas emissions membership agreement, continue to use Purchased greenpower Greenpower, and consider implementing BPs Global

Purchased Greenfleet offsets Choice programme Recycled organic and other Identify/assess options for wastes offsetting air travel related emissions

EN5 Total water use Australian Approximately 6605 KI of Investigate separate water 399-400 Water 1 Government water used (281 per person per metering of DEH office space average for office day) - tenancy only buildings 461 per person per day (tenancy and

base building combined)

EN22 Total water reused Greywater reused in John 399-400 Water 2 Gorton Building Water 3 Initiatives to decrease water Jemflo Water Management system 399-400 consumption or increase Water efficient appliances and water reuse

leak reporting signage Upgrade of greywater system

si o

dai

jaq

Paqe

EN 1 Total material use (other than 14300 reams of A4 paper Conduct paper audit by end 400-1 Materials 1 water) purchased 2005 and an office machine

15.08 reams per person per review year. 30 sheets per person per Finalise letterhead project day Establish data collection system

for outsourcecl printing

EN2 Initiatives aimed at using Recycled paper used for A4 400-2

Materials 2 post-consumer recycled printing and photocopying material and waste from industrial sources EN11 Total amount of solid waste 250 tonnes generated (263kg Waste audit of John Gorton 395-6 Waste 1 by type and destination per person per day) Building

142 tonnes recycled including Sound methodology for data 22 tonnes of organic waste to on waste to landfill a worm farm small business

Waste 3 Initiatives and improvements No individual waste binsWaste audit of John Gorton 395-6 (to minimise waste) - recycling bins centralised in Building kitchen/tea point areas 100% recycling of fluorescent Prominent waste signagetubes and toner cartridges

Recycling of toner cartridges from all DEH sites and fluorescent tubes

EN33 Initiatives to encourage Development of draft Capture information on,402 Suppliers 1 improved environmental Environmental Purchasing Guide and use DEH supply chain performance of suppliers and environmental performance position to improve, suppliers' of suppliers addressed inperformance

some tender criteria

Performance 2003-04 Goal/s 2004-05 Descriotion Benchmark/s Indicator 0 CD CD

CD = 0

CD m

CD CD

CD CO CD >

= C CD

Social indicators (derived from the Gill)

Indicator Description Benchmark/s Performance 2003-04 Goal/s 2004-05 Page

- LA1 Geographical breakdownAPS staffing 74% of staff full-time ongoing; 410-13

of workforce by status, proportions 14% non-ongoing, 37.9% employment type, and 2002-03: at executive level and 78% employment contract non-ongoing located in the ACT 8.8%

executive level (ELI and above) 22.1%

LA2 Employment net creation and APS turnover Increase of 30 staff in 2003-04 Implement exit survey by 410-13 average turnover rate for ongoing All turnover 24.6% (2003-04) June 2005 staff 7.4% Ongoing staff turnover 10.7% Implement pilot development (2002-03) (2002-03) program for APS6 level employees who have potential. Start 'expert staff' identification process LA4 Policy and procedures DEH Consultative Committee 415-16 involving information, and sub-committees to consultation and negotiation involve staff in organisational with employees over changes change in the reporting organisation's operations (e.g. restructuring) LA5 Practices on recording and Records maintained of OH&S 416-17 notification of occupational incidents and incidents accidents and diseases reported to Comcare Australia .iodai auil woi oq

el d!

(0 0

(0 nl

(0 01 =

(0 (0

C 01

(0 â¢0 0

i Indicator

Description

Benchmark/s

Performance 2003-04

Goal/s 2004-05

Page

LA7 Standard injury, lost day - - - - 35 compensation claims Investigate and implement 416-17

and absentee rates, and 2.44% of working hours lostmore informative OH&S the number of work over 100 days reporting systems related fatalities (including contracted workers) LA12 Employee benefits beyond Range of leave entitlementsReview outcomes of July 2004 415-16 those legally mandated and flexible working staff survey and identify areas arrangements available, that could be improved and Family rooms at John Gorton appropriate strategies. Building Obtain accreditation with Australian Breastfeeding Association. LA9 Average hours of training DEH awarded inaugural Investigate and implement 414-15 per year per employee by Australian Government systems to improve reporting category of employee Investors in People Gold on training/staff development Award Provide financial assistance for tertiary study Complete analysis of graduate retention LA1 6 Existence of programme/s Rehabilitation unit 408-15 to support the continued Performance and employability of employees Development Scheme and manage career endings LA1 0 Description of equal Workplace Contact Officer Implement Disability Action 418-19 opportunity policies or Network Plan by December 2004 programmes, as well as Methodology for collecting monitoring systems to ensure diversity statistics compliance

-J

i. .io

dai

uil w

oi oq

aI d!

LA1 i Composition of senior 17% of the Executive 410-13 management and corporate Roundtable (DEH's peak governance bodies, including decision making body) male/female ratio and other members are female indicators of diversity as culturally appropriate

HR4 Description of global policy Workplace Contact Officer Finalise implementation of 418-19 and procedures/programmes Network Disability Action Plan preventing all forms of Establish methodology to

discrimination P Development of Disability collect statistics on employee

including

and results of monitoring

F-IR12 Description of policies, Indigenous Career Establish an Indigenous 418-19 guidelines and procedures Development and Committee to report directly to address the needs of Recruitment Strategy to DEH Roundtable Indigenous people.This

includes Indigenous people in the workforce and communities where the organisation operates or intends to operate

No GRI Policies to encourage the Develop/implement system 420 indicator voluntary participation of on staff voluntary activities staff in local community where DEH provides paid activities leave

s l i o

daA

CD =

=-CD

CD â¢ 0

NJ 0

Economic Indicators (derived from the GRI)

Indicator Description Benchmark/s Performance 2003-04 Goal/s 2004-05 Page

EC3 Cost of all goods, materials $41.2 million expended 421-4

and services purchased

EC4 Percentage of contracts thatAustralian 90.09% of invoices paid within Increase proportion of 421-4 were paid in accordance Government 30 days invoices paid within 30 days

with agreed terms, excluding target: 90% of to over 91%

agreed penalty arrangements invoices paid within 30 days

ECu I Supplier breakdown by Australian 23.1% of Canberra—Sydney Continue to exceed the 421-4 organisation and country Government air sector travel with smallerAustralian Government goal target: 10% airlines to use smaller airlines on the

of Canberra— Canberra—Sydney air sector

Sydney air sector business to be with smaller airlines

EC5 Total payroll benefits $90.6 million expended 421

(including wages, pension, other benefits and

- redundancy payments)

No GRI Initiatives to include Monitoring system to 421

indicator environmental criteria in the ensure good environmental

procurement of goods and purchasing practice

services

Triple bottom line report

Other reports

Appendix C

Policy

Environmental Management

Our Organisation

The Department of the Environment and Heritage (DEn) is the Australian Government's major environmental agency, and is responsible for achieving Government's environment objectives, domestically and internationally.

We aspire to a natural and cultural environment, valued, enhanced and protected in harmony with the nation's social and economic goals and we aim to deliver national leadership on environmental issues through excellence in the programs we run and the policy advice we provide.

Our Environmental Management Commitment

This policy covers the office-based operations of the Department of the Environment and Heritage in Canberra, ACT.

DEH has made a strong commitment to environmental best practice and the prevention of pollution in office management and general operations. Through a process of continual improvement we aim to lead the Commonwealth public sector in efficient and effective environmental office practices, providing a role model for others to follow.

Through a philosophy of 'rethink, reduce, reuse, repair, recycle'we will:

â¢ identify and manage our environmental risks and opportunities

â¢ minimise or eliminate our negative environmental impacts and use of resources while maximizing our positive environmental impact

â¢ work closely with our employees, unions, clients, suppliers and other interested parties to continually refine our work practices and operations to best practice standards

â¢ regularly monitor and report on our environmental performance

â¢ incorporate best practice environmental management into our core business plans and management practices, including the preparation, fitout and ongoing operation of new accommodation arrangements

â¢ as a minimum, comply with our environmental management plans and all relevant government policy and legislation

â¢ actively promote and encourage the adoption of ecological sustainable work

449

practices and operations within our organisation, the Australian Public Service

and the general community, especially by educating others about of the outcomes of our experience make this policy publicly available on the DEH website.

All managers are accountable for environmental performance in their area of responsibility.

David Bortbwick Secretary September 2004

450 Department of the Environment and Heritage Annual Report 2003-04

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Other reports

Appendix D

reporters

Resources for sustainability

An increasing number of organisations in Australia and overseas are engaged in corporate sustainability reporting. This type of reporting meets a growing demand for information about the environmental, social and economic performance of organisations. It also provides benefits to the reporting organisation. Relations with stakeholders are improved, public credibility is enhanced, and the reporting

process can drive operational improvements. In addition potential investors can better assess the organisation's environmental, social and economic credentials.

DEH encourages government agencies and industry to adopt sustainability reporting and provides assistance to reporters. It helps to make the business case for sustainability reporting, develops and publishes reporting guides and provides access to other resources and reporting frameworks which can improve the quality

and comparability of reports.

Resources that DEH makes available to reporters include:

â¢ A corporate sustainability reporting web site. â¢ A Sustainability Reporting Library that provides access to the reporting history, disclosure practices and performance data of over 87 organisations and over 332 published reports.

â¢ Two reporting guides Triple Bottom Line Reporting in Australia: A Guide to Reporting Against Environmental Indicators - June 2003 and Public Environmental Reporting: An Australian Approach - March 2000. â¢ A report on our 2004 survey of the sustainability reporting practices of some 500

of Australia's largest companies The State of Sustainability Reporting in Australia 2004.

These resources are available at the following web addresses:

â¢ Corporate Sustainability Reporting: www .deh.gov.au/industry/corporate/repOrtiflg â¢ Sustainability Reporting Library: www.deh.gov.au/industry/corporate/reportiflg/rePofts â¢ Triple Bottom Line Reporting in Australia:

www.deh.gov.au/industry/finance/publicatiOfls/ifldiCatorS/ifldeX.html â¢ Public Environmental Reporting: An Australian Approach www.deh.gov.au/industry/finance/publicatioflS/framewOrk/indeX.htm1 â¢ The State of Sustainability Reporting in Australia:

www.deh.gov.au/industry/corporate/reporting/Survey.html

451

DEH works with an international body, the Global Reporting Initiative (GRI)

that aims to enhance the quality, rigour and utility of sustainability reporting. In 2002 the GRI published Sustainability Reporting Guidelines an internationally recognised resource for reporters. The guide and information about the GRI can be found at www.globalreporting.org . The GRI's Public Sector can be found at www.globalreporting.org/guidelines/sectors/public.asp

452 Department of the Environment and Heritage Annual Report 2003-04

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Other reports

Appendix E - Environmental reporting units

Abbreviation Name Description Joule Unit ofenergy

KJ Kilojoule 1000 (1 thousand) joules

MJ Megajoule 1000 000 (1 million) joules

GJ Gigajoule 1000 000 000 000 (1 billion) joules

W Watt Unit of energy use (equivalent to ijoule per second)

kW Kilowatt 1000 (1 thousand) watts

kWh Kilowatt hour Electricity consumption that uses 3.6 Mi of energy in one hour kg Kilogram A metric unit of weight

t Tonne 1000 (1 thousand) kilograms

L litre A metric unit of volume (equivalent to 1000 cubic

centimeters)

KI Kilolitre 1000 (1 thousand) litres

Ml Megalitre 1 000 000 (1 million) litres. Equivalent to 1 cubic metre km kilometre A metric unit of distance

km/h kilometres per hour Velocity

m3 cubic metre A metric unit of volume (equivalent to 1 megalitre)

ha hectare A metric unit of area

CO2 carbon dioxide The most common greenhouse gas produced by human activity

tCO2e Tonnes of carbon Standard measure for normalising the varying global dioxide equivalent warming impacts of different greenhouse gases

Ream 500 paper sheets A standard measure for quantifying standard photocopying and/or printing paper. 1 ream is 500 sheets of A4, A5, A3 or any other standard sized paper

453

Appendix F

- Abbreviations used in report AAD Australian Antarctic Division

AAP Australian Antarctic Program

ABGR Australian Building Greenhouse Rating ACT Australian Capital Territory

AGO Australian Greenhouse Office

ANAO Australian National Audit Office ANBG Australian National Botanic Gardens APS Australian Public Service

AWA Australian Workplace Agreement BOMA Building Owners and Managers Association (now the Property Council of Australia) CMO Chief Medical Officer

CO2 Carbon dioxide

DEE Department of the Environment and Heritage EcoNet Environment Contact Officer Network EMO Energy Management Option

EMS Environmental Management System EPBC Act Environment Protection and Biodiversity Conservation Act 1999 eriss Environmental Research Institute of the Supervising Scientist HIMI Territory of Heard Island and the McDonald Islands liP Investors in People

ISO International Standards Organisation

NCSI NATA Certification Services International Pty Ltd NABERS National Australian Built Environment Rating System OH&S Occupational Health and Safety

oss Office of the Supervising Scientist

PDS Performance and Development Scheme

RAIA Royal Australian Institute of Architects SSD Supervising Scientist Division

TBL Triple Bottom Line

WCO Workplace Contact Officer

APS 1,2,3,4,5,6 EL 1, 2 SES Band 1,2,3

APS Administration Officer (level) classifications APS Executive Level classifications (middle management) Senior Executive Service (level) classifications

454 Department of the Environment and Heritage Annual Report 2003-04

Operation of the Environment Protection and

Biodiversity Conservation Act 1999 including this year the final report of the Australian Heritage Commission

Introduction

This report describes the operation of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) from 1 July 2003 to 30 June 2004. This is the fourth annual report on the operation of the EPBC Act as required by section 516.

As in previous years, this report follows a format allowing examination of the operation of the EPBC Act against the key priorities in implementing the Act. These priorities are:

â¢ ensuring a clear role for the Australian Government in protecting matters of national environmental significance (addressed in Part 1.1 of this report); â¢ providing more effective protection of the environment in proposals involving the Australian Government (Part 1.2); â¢ increasing intergovernmental cooperation and reducing duplication (Part 1.3); â¢ providing a more efficient, timely and effective assessment and approval process

with greater certainty (Part 1.4); â¢ increasing transparency and public awareness (Part 1.5); â¢ taking an integrated approach to conserving biodiversity (Part 2); â¢ managing heritage and protecting significant areas (Part 3); and â¢ developing an improved monitoring and compliance regime (Part 4).

Overview

The Australian Government, through the operation of the EPBC Act, continues to protect matters of national environmental significance—namely nationally threatened species and ecological communities, internationally important wetlands, migratory species, World Heritage properties, National Heritage places, the Commonwealth

marine environment, and protecting the environment from nuclear actions.

455

Since the commencement of the EPBC Act in 2000, the Department has considered

nearly 1240 referrals. The clear processes and mechanisms established by the EPBC Act have streamlined administration of environmental decisions while focusing the Australian Government on environmental outcomes of national importance.

During 2003-04, the Department received 292 referrals. Fifty-four of these referrals were controlled actions requiring approval under the Act. It was decided that a further 38 actions could proceed without approval if undertaken in a particular manner. Decisions on the level of assessment were made for 37 actions, with 21 actions to be assessed by preliminary documentation, four by public environment report, two by an environmental impact statement and ten through an accredited state or territory process. During the year, 26 actions were approved and one approval was declined. The Department also received 12 requests for advice

under section 160 of the EPBC Act from Australian Government decision-makers. The statutory timeframes were met for 86 per cent of referral decisions, 84 per cent of assessment decisions and actions and 81 per cent of approval decisions made under the Act. The average delay for referral decisions however was only 1.9 days.

Compared to previous years there has been a reduction in meeting the timeframes for referral, assessment and approvals decisions and actions. This is indicative of the increased time required for decision-making on an increasing number of actions that are complex and sensitive, and the increasing work resulting from actions referred in previous years now entering the approval phase. The Department is conscious of the need for timely decision-making under the Act and is working on strategies to increase adherence to statutory timeframes.

The EPBC Act continues to be successful in encouraging development interests to interact with the Department early in the project design phase with the aim of having effective environment protection measures incorporated in project designs and management arrangements. This trend is exemplified in the strategic environmental assessments of export fisheries, which are aimed at ensuring that ecological sustainability is specifically recognised in managing Australian fisheries. The assessment of these fisheries is changing management practices across Australia's commercial fisheries with a shift from species management to an ecosystem-based fisheries management approach.

The EPBC Act has been strengthened through the inclusion of a new system for managing heritage. This new system, which came into force on 1 January 2004 provides for the identification, protection and management of National Heritage places as a matter of national environmental significance, and also Commonwealth heritage places.

456 Department of the Environment and Heritage Annual Report 2003-04

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In addition, the EPBC Act has been made more effective by including provisions to deal with staged developments, and to enforce decisions that a development can be undertaken without approval, provided that the development is undertaken in a particular manner in order to avoid significant impacts on matters protected by the Act.

Through assessment of wild harvests, approval of breeding and propagation programmes, and regulating exports and imports of wildlife under the EPBC Act the Australian Government is ensuring that wildlife industries are ecologically sustainable and are humane. During the year a total of 59 108 wildlife trade permits

were issued. In addition a total of 34 non-fisheries wildlife trade programmes were approved.

Wildlife trade activities are being further improved by increasing public transparency in decision-making, and by encouraging best practice animal welfare and sustainable management practices. Wildlife trade provisions are integrated with other environmental impact assessment procedures to streamline assessment while ensuring that potential environmental impacts of wildlife trade proposals are

properly considered.

The Australian Government continues to lead international activities to conserve migratory waterbirds in the Australasian region. The outcomes of 2003-04 will build on to the successful migratory waterbird conservation undertaken to date at both the national and international levels. Implementation of the migratory waterbird

partnership initiative under the World Summit on Sustainable Development will be facilitated, and the proposed bilateral agreement on migratory bird conservation with the Republic of Korea will be brought to completion. At the national level the Wildlife Conservation Plan for Migratory Shorebirds will be released for public

comment for the purpose of it being formally made under the EPBC Act.

While environmental harm is prevented by encouraging voluntary observance of high quality environmental performance, enforcement action is taken under the EPBC Act where necessary. For example, the Department investigated and successfully prosecuted a land manager whose action had a significant impact on a

Ramsar wetland of international importance. The Federal Court found that the land manager and his company had acted in breach of the EPBC Act by undertaking clearing and farming activities within the Gwydir Wetlands Ramsar site.

The Department's capacity to handle cases like this has been significantly enhanced by the establishment of an Environment Investigations Unit. The unit will provide specialised investigative skills thus improving the capacity to carry out higher level law enforcement, including formal investigation and prosecution of environmental

crime under the EPBC Act.

457

The first external performance review of the administration of the EPBC

Act, conducted by the Australian National Audit Office, concluded that the administration of the Act is sound and effective. The Productivity Commission, in the course of inquiring into the impact of native vegetation regulation, found that the EPBC Act met more of the criteria for good regulation than legislation in other

jurisdictions, particularly by setting out time limits for consideration of applications and taking economic and social factors into account in the approvals process.

Potential users have been provided with increased guidance on the operation of the EPBC Act. Through targeted awareness raising activities, some proponents have been given practical assistance on the operation of the EPBC Act.

1. Protecting environment and heritage

1.1 Focusing on matters of national environmental significance

An important means of protecting matters of national environmental significance is through their identification as controlling provisions for actions likely to have significant environmental impacts, and therefore requiring assessment and approval under the EPBC Act. Provisions of the EPBC Act also require certain actions to be undertaken in a particular manner to avoid adverse impacts on matters of environmental significance. During the year a total of 169 matters of national environmental significance were protected through these processes (see Table 5 in Appendix 1 of this report).

During the year the most frequent controlling provisions were listed threatened species and ecological communities and listed migratory species. These two controlling provisions were included in approximately 75 per cent of controlled action decisions.

Case study

The Koolyanobbing Iron Ore Expansion project The Koolyanobbing Iron Ore Expansion proposed by Portman Iron Ore Ltd was determined to be a controlled action due to the likely significant impacts to four listed threatened species —including three species of tetratheca, namely

Tetratheca aphylla, T paynterae, T harperi and the Malleefowl.

458 Department oft he Environment and Heritage Annual Report 2003-04

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The project as originally proposed would have impacted about 90 per cent of the population of the endangered T paynterae. The project was refused by the Western Australian Environmental Protection Agency but this decision was overturned on appeal. On the recommendation of the Appeals Convenor, the Western Australian Minister allowed Portman to remove 30 per cent of the tetratheca population and then a further 20 per cent if mining operations do not

impact on the remaining population. On this basis the project was considered for approval under the EPBC Act. The EPBC Act approval conditions mirrored the Western Australian approval by allowing access to up to 50 per cent of the area covered by T. paynterae in two stages. The EPBC Act conditions however

are more stringent. Access to the initial 30 per cent requires Portman Iron Ore to:

â¢ develop plans to manage the impacts of mining on the plants, such as dust, access, weeds, and ground and surface water. This plan was reviewed and approved by the Department; and â¢ develop a Recovery Plan and a Research and Management Plan for the

species backed by a $900 000 bank guarantee;

After mining begins, Portman must commission an independent audit and provide an annual certificate stating compliance with the approval conditions.

Before Portman Iron Ore accesses the next 20 per cent of the area, they must demonstrate in an independent report that adequate recovery measures have been introduced and that the first phase of mining has had no significant impact

on the remaining plant population. Areas of adjacent land have also been permanently protected to provide continuity with the surrounding environment and to further safeguard the remaining population of T paynterae.

In response to the approval conditions imposed by the Australian Government under the EPBC Act, an intensive survey programme has been undertaken and found that the population size and distribution of T paynterae is now much greater than initially estimated. This survey data will be used in monitoring the impacts of mining operations on plant health and condition as per the

Tetratheca management plan. The approval decision provides strong, ongoing protection of the T paynterae, T harperi and the Malleefowl, while at the same time, boosting the regional infrastructure, economy and employment.

Also, 26 proposed actions were referred where World Heritage values were likely to be significantly impacted. As in previous years, these projects predominantly involved actions in, or adjacent to, the Great Barrier Reef and the Wet Tropics of Queensland and included tourism, urban development and aquaculture. World

Heritage was determined to be a controlling provision on six occasions.

459

Thirty-four of the

54 controlled actions requiring approval were triggered by more than one matter of national environmental significance. These actions typically involved potential impacts on species listed as both threatened and migratory, or listed species found in or near to the Commonwealth marine environment, World Heritage properties or Ramsar wetlands.

A total of 26 actions were approved in 2003-04 with a range of conditions to ensure that matters of national environment significance were protected. One proposed action was refused on the basis that approval of the action would have had a significant detrimental impact on the outstanding cultural heritage qualities and environmental characteristics of adjacent Commonwealth land. Refusal of the action was recommended, as the adverse environmental impacts of this proposal could not be adequately addressed through mitigation methods.

At the end of the 2003-04 period, 72 actions affecting matters protected by the Act were undergoing assessment. That is, a decision had been made on the assessment approach but the assessment was still to be completed. These ongoing assessments include six assessments conducted under bilateral agreements and 35 assessments conducted under processes that have been accredited case by case. Appendix 1 to this report provides information on the types and number of assessment approaches used during 2003-04.

On 1 January 2004, the new heritage protection legislation came into effect protecting Australia's National Heritage, which comprises exceptional natural, Indigenous and cultural places that have helped shape Australia's unique identity. Such places are living and accessible records of the nation's evolving landscapes and experiences. Passage of this legislation followed extensive consultation over seven years with government, non-government, industry and community groups,

involving discussion papers, technical workshops, a National Heritage Convention in 1998, and more than 70 briefings held nation-wide.

With the passage of the legislation, the National Heritage values of a National Heritage Place become matters of national environmental significance and so are protected under the EPBC Act. The EPBC Act requires that approval be obtained before any action takes place, which has, will have, or is likely to have, a significant impact on the National Heritage values of a listed place. Proposals for actions, which could affect such values, will be rigorously assessed.

460 Department of the Environment and Heritage Annual Report 2003-04

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Case study

Australian International Council on Monuments and Sites (ICOMOS) Australia International Council on Monuments and Sites is a non-government professional organisation that promotes expertise in the conservation of cultural heritage. It was formed in 1965, and has a responsibility to advise UNESCO in the assessment of sites proposed for the World Heritage List.

Following the passage of the new heritage legislation, Australia International Council on Monuments and Sites, in partnership with the Heritage Division of the Department of the Environment and Heritage, organised seminars for practitioners on the new national heritage system. Seminars were held in every capital city except Darwin (which will take place in the future). Practitioners throughout Australia were given the opportunity to discuss the new heritage system with government officers involved in its implementation. Participants

were also able to workshop hypothetical listings and management situations to obtain greater clarity and understanding of the new legislation. The feedback on these sessions has been very positive and Australia International Council on Monuments and Sites has taken the view that working closely with the

government offers the best chance of realising the full potential of the new arrangements for protecting Australia's heritage. Following the success of these workshops, it is anticipated that there will be future opportunities for the two organisations to work in partnership to assist in the implementation of the new heritage system.

1.2 Proposals involving Commonwealth land and/or actions

Actions by the Australian Government and actions on Commonwealth land Three actions were determined to require approval under the EPBC Act because of likely significant impacts in relation to Commonwealth land. A further four actions by Australian Government agencies were also controlled actions. These actions also can be controlled actions because of potential impacts on matters of national environmental significance.

The Australian Antarctic Division of the Department referred a proposal to remove heritage-listed buildings known as the 'Old Donga Line' from the Davis station site. This proposal was determined to be a controlled action. The Donga Line is currently being assessed and a decision on assessment approach will be made shortly.

461

Actions approved that had Commonwealth land as a controlling provision included

the modernisation of parts of the existing munitions facility at Muiwala, New South Wales by Australian Defence Industries Limited. The construction of a residential building and associated infrastructure at Kingston, Norfolk Island, located on Commonwealth land was referred but was not approved due to threats on the outstanding cultural heritage qualities and environmental characteristics of the adjacent Kingston and Arthur's . Vale Historic Area.

Advice on authorising actions

Section 160 of the EPBC Act requires Australian Government agencies or employees of the Australian Government to obtain and consider advice from the Minister in relation to the authorisation for specified actions, where those actions are likely to have a significant impact on the environment. Actions include providing foreign aid, managing aircraft operations in airspace or implementing a major development

plan for an airport.

During 2003-04, advice was sought on 12 occasions under section 160. These projects included eight major airport development plans and a permit under the Environment Protection (Sea Dumping) Act 1981. Major airport development plans were referred for the Brisbane (two), Melbourne (two), Canberra, Gold Coast, Parafield and Essendon airports. Major development plans included proposals for runway extensions, aircraft maintenance facilities, mail facilities, and office and commercial developments.

The Westralia Airports Corporation proposed the development of a warehouse and distribution park at Perth Airport. Advice from the Minister concluded that the environmental impacts of the proposal should not prevent the Minister for Transport and Regional Services approving the proposed major development plan subject to conditions. Advice to the Minister for Transport and Regional Services on an extension to the terminal at Canberra International Airport determined that there

were no unacceptable environmental impacts associated with the proposal.

The 2003-04 year also saw the completion of the assessment and advice for the installation of a new 106 metre by 58 metre multi-level tourist pontoon at Moore Reef in the Great Barrier Reef Marine Park near Cairns, Queensland. The Minister provided advice to the Great Barrier Reef Marine Park Authority on minimising the adverse effects that the design and operation of the pontoon could have on the values of the Great Barrier Reef World Heritage area.

Chevron Texaco applied for a permit under the Environment Protection (Sea Dumping) Act 1981 to dredge, excavate and dispose of 12 million cubic metres of dredge spoil from channels adjacent to Barrow Island in Western Australia. The

462 Department of the Environment and Heritage Annual Report 2003-04

Operation of the

Environment Protection and Biodiversity Conservation Act 1999 Other reports

proposed action was referred under section 160 of the EPBC Act and is currently being assessed by an environmental impact statement (EIS) still in preparation as of 30 June 2004.

Exemptions

During 2003-04 no exemptions were issued under the EPBC Act.

1.3 Increasing intergovernmental cooperation

Alignment of threatened species lists

The Department, in association with the EPBC Act Threatened Species Scientific Committee, has been working towards improving the alignment of the Australian Government, state and territory lists of threatened species. During 2003-04, the Department met with Northern Territory Government officials and held preliminary discussions with Queensland Government and New South Wales Government officials to progress the alignment of lists. The committee held a meeting in Perth Western Australia in June 2004, where it met with representatives from the Western Australian Department of Conservation and Land Management and the Western Australian Scientific Committees to discuss the streamlining of threatened species

listing processes.

Bilateral agreements

A key objective of the EPBC Act is to promote a cooperative approach to the protection and management of the environment that involves governments, the community, landholders and Indigenous peoples. The EPBC Act proposes that this will be achieved in part through bilateral agreements which strengthen

intergovernmental cooperation and minimise duplication.

To this end bilateral agreements have been established with Tasmania, Western Australia and the Northern Territory. An agreement with Queensland is close to completion. Agreements with the other states and the Australian Capital Territory are progressing, although to date South Australia has not taken up the offer to enter

into a bilateral agreement. Development of bilateral agreements have enabled early, transparent and effective accreditation of state and territory environmental assessment processes. During the year, six projects have been or are being assessed under bilateral agreements.

The Australian Government has also streamlined assessment of projects involving state or territory processes through case-by-case accredited assessments. A total

463

35 actions have been assessed this way. These assessments meet at least those standards that will be required in the bilateral agreement with the state or territory in which the action is to take place. Accreditation ensures that proponents and the public need only deal with a single assessment process but does not reduce the scrutiny that the Australian Government applies to projects which it approves.

The Australian Government is continuing to promote better management for Australia's World Heritage places in partnership with the states and territories. It supports activities that relate directly to discharging Australia's World Heritage responsibilities and priorities that reflect the national interest including promotion, community engagement, and the development of strategic partnerships. The Australian Government continues to work with the states and territories to create opportunities that increase the involvement of Indigenous people in the management of World Heritage properties.

Australian Government and state and territory officials continue to work at strengthening collaboration in relation to World Heritage properties. The Australian World Heritage Managers' Workshop was held in Cairns in May 2004 and discussed a wide range of issues. Australian Government representatives also attended a number of World Heritage property meetings, including the second meeting of the Purnululu Park Council on 7-8 May 2004, where they provided briefings on priority project funding, the new national heritage legislation and joint sustainable tourism initiatives.

1.4 Providing efficient, timely and effective assessment and

approval process

Referral activity report

During the 2003-04 financial year, 292 actions were referred to the Australian Government for decision on whether approval was required under the EPBC Act. Approximately nine per cent of these referrals were the result of compliance action taken by the Department. A total of 54 actions were determined to be controlled

actions and a further 38 actions were non-controlled action if taken in a particular manner.

Profile of actions referred under the EPBC Act

The largest number of referrals came from Queensland, which continues to have the highest number of controlled action decisions. These figures reflect the pattern of development along the Queensland coast, potentially impacting on the Great Barrier Reef, the Wet Tropics World Heritage Areas and a number of Ramsar wetlands.

464 Department of the Environment and Heritage Annual Report 2003-04

Operation of the

Environment Protection and Biodiversity Conservation Act 1999 Other reports

Activity categories for which a relatively large number of referrals were received include new urban and commercial development; tourism, recreation and conservation management; land transport; mining; energy generation and supply; and water management and use. There was an increase in the number of tourism projects referred during 2003-04 compared to previous years.

Urban and commercial developments referred during 2003-04 included the Fairway Waters Retirement Village in Pakenham, Victoria; the East O'Malley residential estate in Canberra; the Wyndham Cove marina and residential development at Werribee, Victoria; the Coconut Point residential development on Queensland's Capricorn coast; and a canal housing development at Meningie in South Australia. Examples of tourism, recreation and conservation management-related referrals

include the Port Hinchinbrook Stage II development near Cardwell, north Queensland; the construction of an ocean access boat ramp at Bastion Point, near Mallacoota, Victoria; and the rehabilitation of the Hexham Swamp at Newcastle, New South Wales.

There were 40 late decisions on referrals during 2003-04, or 14 per cent of the total number of referrals. This compares with 14 late decisions in 2002-03 (four per cent of the total referral decisions for that year) The average number of days late was 1.9 business days, compared to an average of 2.7 days late since commencement of the EPBC Act.

Where the statutory timeframe was not met, this was due to the increasing number of detailed and complex projects being referred. In addition, there was the need to seek legal advice on issues related to certain decisions and also to deal with some complexities arising from amendments made to the EPBC Act on 23 September

2003 in relation to referrals that form a component of a larger action and penalty provisions applicable to specified manner decisions.

The 20-day decision period includes a ten-day opportunity for public comment. This is facilitated by the publication of referrals for comment on the Department's web site. Public comments were received on 54 referrals during 2003-04.

Decision trends

The EPBC Act provides for the Minister to decide that a referred proposal is not a controlled action provided it will be taken in a particular or 'specified' manner. This provision may be used when there is clear evidence that a particular mitigation or avoidance measure will be employed to avoid significant impacts.

In September 2003, the EPBC Act was strengthened with the addition of section 77A which provides the ability to enforce the Minister's decision that an action does not

465

require approval because that action would be taken in a 'particular manner'. Under

section 77A, new penalties apply to breaches of particular manner decisions.

A total of 38 referrals during 2003-04 were not controlled actions due to the fact that they were to be carried out in a particular manner. The number of particular manner decisions during 2003-04 continues to reflect the overall improvement in the quality of referrals and the sophistication of proponents in addressing relevant environmental concerns prior to submitting a referral. Projects that receive a particular manner decision are often specifically designed to minimise or eliminate adverse impacts on matters of national environmental significance.

The Department actively encourages proponents through its education activities to design projects and activities in ways that avoid impacts on matters of national environmental significance. The use of the particular manner decision allows the Minister to lock in these design approaches. The Department believes that the use of the particular manner decision is an effective way of promoting and supporting a shift to better environmental practices by key industries. This is demonstrated by the offshore oil and gas industry's commitment to the use of seismic survey guidelines to minimise impacts on cetacean species.

Case study

Using particular manner decision to deliver better environmental outcomes— the Rehabilitation of Hexham Swamp, New South Wales

The Hunter Catchment Management Trust proposed to rehabilitate Hexham Swamp by reinstating the natural freshwater/saltwater interface to the 2000 hectare wetland. The previous estuarine values of the wetlands and values for migratory birds had been lost through the operation of tidal gates that prevented the inflow of sea water. The original hydrology was to be reinstated by opening the tidal gates, thus allowing the natural tidal flows. Hexham Swamp is directly linked to the Hunter Estuary Ramsar wetland and had become potential habitat for the Green and Golden Bell Frog that is listed as vulnerable. The Department was concerned that inundation by saline tidal waters into the freshwater wetlands might inadvertently result in the loss of suitable breeding habitat for the Bell Frog and that retention of some suitable habitat might be required.

The size of Bell Frog population was unknown and the extent of potential impacts unclear so the Department first sought additional information from the Trust. It was determined that the proposal was not a controlled action provided it was taken in a particular manner involving mitigation measures that included:

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â¢ monitoring the effect of inundation on salinity within the swamp;

â¢ installing flood gates to prevent intrusion of saline water during king or other extreme tides that would adversely effect potential key habitat (including breeding habitat) of the Bell Frog; and

â¢ monitoring of frog populations during the three-year inundation project to determine if Bell Frog populations are maintained.

The Trust welcomed the particular manner decision and have installed monitoring equipment to measure water levels and salinity. No inflows of saline water into key freshwater areas have occurred to date.

The Hexham Swamp rehabilitation project provides a good example of a particular manner decision that has been satisfactorily implemented by the applicant. It also demonstrates that projects aimed at enhancing the environmental values of an area may nevertheless still require referral because of potential inadvertent adverse impacts.

Suspension of timeframes

The decision timeframe for decision-making on referrals was suspended on 42 occasions. This exemplifies a trend of increasing complexity of referrals and the need to seek further information for the decision-maker.

Statement of reasons

Sub-section 77(4) of the EPBC Act allows a person taking an action that the Minister has decided is a controlled action to request reasons for the decision. During 2003-04, the Department handled nine such requests.

Reconsideration of decisions

The number of requests for reconsideration of referral decisions during 2003-04 was similar to that for the previous year, with 18 requests for reconsideration and 70 per cent of decisions being remade. Reconsideration decisions are detailed in Table 2 of Appendix 1.

While the number of reconsiderations is small when compared to the total number of referral decisions, by consulting with key interests the Department ensured that any reconsideration decisions maintain the transparency and public accountability inherent in the overall framework of the EPBC Act. Reconsideration can be justified, and can contribute to better environmental outcomes, where there is substantial new information on the impacts on the matters protected by the Act.

Assessment of controlled actions

The assessment of potential environmental impacts from proposed actions utilises the best available science with comment and analysis sought from the relevant experts from within the Department, other Australian or state and territory government agencies, and external scientific institutions and organisations.

The EPBC Act provides a range of assessment approaches to ensure that an environmental assessment reflects the nature of the proposed action, the adequacy of information already available, the degree of public interest and the nature and scale of the likely impacts. Decisions on the level of assessment for controlled actions are summarised in Table 6 in Appendix 1.

During 2003-04, the Department completed 27 assessments following finalisation of relevant documentation by the proponent. A further 72 assessments were in preparation as at 30 June 2004. Thirty-three preliminary documentation assessments were completed or are under way.

Decisions on assessment approach were made within the statutory timeframes on 83 per cent of occasions. Factors contributing to late decisions included the requirement for additional assurances from states and territories that accredited assessment processes would meet Australian Government requirements and the need for clarification and consultation on information in preliminary documentation.

The EPBC Act requires the Minister to prepare written guidelines for the content of public environment reports and environmental impact statements within a 20-day statutory timeframe. During 2003-04, guidelines were prepared for three public environment reports within the statutory timeframes. Guidelines for the two environment impact statements required under the Act were both prepared outside the statutory timeframe. They were both joint assessments with the state and the delay was caused by the requirement to publish draft guidelines to ensure that the requirements of both jurisdictions were satisfied.

Case study

Environmental impact assessment of the Geographe and Thylacine gas field development

The Department assessed this proposed gas field development based on an environmental impact statement prepared by the proponent, Woodside Energy Limited. The proposed action consisted of the drilling of hydrocarbon wells at the Geographe and Thylacine gas discoveries in the Otway Basin. The action

included installation and operation of offshore production facilities, a gas

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pipeline to onshore Victoria and an onshore gas treatment plant in the vicinity

of Port Campbell.

Fourteen public submissions were received on the draft environmental impact statement (EIS) which largely related to the operation of the gas plant. Other issues of concern related to the onshore pipeline shore crossing and offshore drilling and pipeline.

Public comments and those of relevant government agencies were considered in preparation of the assessment report. The key issues related to impacts on the Commonwealth marine environment including seabed flora and fauna and historic shipwrecks, cetacean species such as the Southern Right

Whale and Blue Whale, and listed threatened species such as the Southern Brown Bandicoot, Long Nosed Potoroo, and the Yarra Pygmy Perch. Given the importance of these issues, the Department carried out its own analysis, taking further advice from other agencies including the Australian Government Department of Industry, Tourism and Resources, the Victorian

Department of Sustainability and Environment, and Parks Victoria. The analysis demonstrated that the methods proposed by Woodside were acceptable and that, provided a range of conditions were met, it is unlikely the action would have an unacceptable impact on matters of national environment significance. Accordingly the action was approved.

This case demonstrates the importance of the Department's detailed and independent analysis of assessment documentation. It also highlights the capacity for the Department to obtain required expert advice from other Australian Government and state Government agencies.

Approvals

Twenty-six controlled actions were approved in 2003-04, and a further two were awaiting decision as of 30 June 2004. Actions approved include the Koolyanobbing Iron Ore Expansion in Western Australia (see the case study in section 1. 1), the Crocodile 03 military exercise in Queensland, the Thylacine and Geographe gas field developments in Bass Strait, the Meander Dam in Tasmania, the installation and operation of an irrigation system in western Victoria, the Henley Golf course in

Victoria, and the Warkworth Coal Mine extension in the Hunter Valley, New South Wales.

Approval has been refused for one action, the construction of a residential building and associated infrastructure at Kingston, Norfolk Island. The action was not approved because it would threaten the outstanding cultural heritage qualities and

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environmental characteristics of the adjacent Kingston and Arthur's Vale Historic

Area, which is located on Commonwealth land.

Five approvals were made outside the statutory timeframe. These delays were due to the complexities of the issues under consideration and included the resolution of legal issues. Other factors contributing to delays included complex condition setting, the need for a number of management plans for different species in various

locations, and detailed consideration of state or territory conditions which apply to Commonwealth land. The need for added consultation with the landholders, proponents, and state or territory governments, and discussions with other Australian Government agencies also provided challenges to meeting the statutory timeframes for approval decisions.

Case study

Proposal to construct a residential building and associated infrastructure, Kingston, Norfolk Island

The construction of a residential building, garage, underground reservoir and garden on Middlegate Road, Kingston, Norfolk Island was refused by the Minister as the action would have a significant detrimental impact on the outstanding cultural heritage qualities and environmental characteristics of Commonwealth land within the Kingston and Arthur's Vale Historic Area (KAVHA). KAVHA is a monument to the convict origins of European settlement

in Australia, comprising a large group of buildings from the convict era, substantial ruins and standing structures, archaeological sub-surface remains, and landform and cultural landscape elements, which represent an outstanding example of the development of global convict transportation.

Adverse environmental impacts of this proposal could not be adequately addressed through proposed mitigation methods with the proponents indicating that there were no alternatives to the action. In making his decision, the Minister considered economic and social implications as well as matters of national environmental significance. KAVHA constitutes part of a unique inheritance that should be maintained for future generations.

Post referral and approval monitoring and auditing

The Department continues to develop its strategies and processes for effectively monitoring actions referred under the Act. As a growing number of proposals move through the referral, assessment, and approval phase of the statutory process,

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conditions applied for post-approval verification, monitoring and auditing assume an increasing burden and will require allocation of additional resources. Conditions generally include for example, post-approval of construction management plans,

environment management plans for operations, monitoring and third party audit reports. A risk assessment is currently completed for each proposal at the time of approval so that appropriate follow-up can be programmed. Approvals are required to stipulate a length of approval; these are generally over 40 years. The cumulative burden of approved projects requiring post approval activity will test the Department's capacity as a regulator. A series of trial audits were carried out

in 2003 for actions determined to be non-controlled actions provided they were undertaken in a particular manner. These trial audits undertaken in cooperation with the companies were completed in 2003-04 and allowed the evaluation of compliance with particular manner requirements as well as the effectiveness and efficiency of the Department's decision-making processes.

The audits found that where the particular manner was based on the Cetacean Interaction Guidelines the requirements were generally met by all proponents, however compliance with other elements of the particular manner decision were

more variable.

The audits indicated that departmental staff provide a high level of assistance through the EPBC Act process; although, some concerns were raised over the length of assessment timeframes given the relatively fast release of Australian petroleum acreage. The companies that were audited expressed concerns regarding the practical application of the Department's Cetacean Interaction Guidelines that formed part of the particular manner decision. On the basis of the trial audits, a

review of the Cetacean Interaction Guidelines was commissioned and includes consultation with industry representatives, environmental organisations, cetacean researchers, and government agencies. The audits have identified opportunities for improvement for both the Department and the companies involved.

Australian National Audit Office performance audit

In mid-2002 the Australian National Audit Office commenced an audit of the implementation of the EPBC Act. The objective of the audit was to examine and report on the quality and timeliness of environmental assessments and approvals under the EPBC Act, as well as on departmental activities that ensure compliance with the Act. The Australian National Audit Office made a number of positive findings as a result of the audit. Six recommendations were made, all of which were accepted by the Department without qualification.

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In April

2004, a report on progress against the Australian National Audit Office audit recommendations found that substantial progress was made by the Department across all recommendations contained in the audit report, with many elements of the recommendations being fully implemented.

Review of the Administrative Guidelines on Significance

At the time the Administrative Guidelines on Significance for the EPBC Act were released in July 2000, the former Minister, Senator the Hon Robert Hill, indicated that they would be reviewed following experience gamed in the operation of the Act in order to provide the best possible guidance to stakeholders. In August 2003, this review commenced with an invitation for public comments complemented by targeted interviews of stakeholders by an independent consultant. The guidelines are being revised taking into account the outcomes of the consultation and to incorporate guidance about the new heritage amendments to the EPBC Act.

Revised guidelines and additional guidelines will be published as part of a new framework of EPBC Act policy statements. The framework will include: principal significance guidelines, which consist of revised guidelines for matters of national environmental significance, and guidelines for Australian Government actions

and actions impacting upon Commonwealth land; and supplementary guidelines which will include industry guidelines, guidelines for nationally protected places and properties and guidelines for nationally threatened species and ecological communities. The supplementary guidelines will include revised guidelines for interactions between offshore seismic operations and larger cetaceans. A new category of guidelines, practice guides, will provide information about best practice environmental protection and conservation, and specific guidance about elements of the EPBC Act.

Case study

Tiger Quoll - supplementary Administrative Guidelines on Significance The Tiger Quoll is a reddish brown to dark chocolate brown coloured mammal, with white spots on its body and tail. The Tiger Quo!l is a forest dependent species, and has been recorded in rainforest, wet and dry sclerophyll forest and woodland habitats.

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The southern subspecies of the Tiger Quoll (Dasyurus maculatus maculatus) has a Tasmanian population and a southeastern mainland population. These two populations were previously listed as one species in the vulnerable category under the EPBC Act. The Minister recently decided to change the threatened status of the southeastern mainland population of the Tiger Quoll from vulnerable to endangered. This change recognises an increased decline in the species.

There are a number of threats to the Tiger Quoll, including land clearing, loss of habitat such as hollow logs and earth burrows, competition from foxes and feral cats, road traffic, poisoning and trapping. One possible threat to the Tiger Quoll is the impact of 1080 poison baiting control programmes for wild dogs

and dingoes.

The Department has prepared supplementary Administrative Guidelines on Significance that provide information on the Tiger Quoll (south-eastern mainland population) and the use of the poison 1080 in pest animal control programmes. The purpose of the guidelines is to assist stakeholders decide

whether their proposed 1080 baiting operations in known or potential Tiger Quoll habitat need to be referred to the Australian Government for approval under the EPBC Act.

The stakeholder guidelines and the Threatened Species Scientific Committee's advice to the Minister on the listing of the Tiger Quoll (south-eastern mainland population) are available under: www.deh.gov.au/biodiversity/threatened/ species/index.html.

Sustainable fisheries

The Australian Government has responded to ongoing concerns about the environmental impacts of fishing and the risk of over-exploitation of marine resources by incorporating ecological sustainability requirements into Australian Government environment and fisheries legislation.

Under the EPBC Act, the Department assesses the environmental performance of fisheries management arrangements to ensure that fisheries are managed in an ecologically sustainable way and to identify areas of improvement. Ecological sustainability is being promoted with a shift from a target-species approach to focus

on ecosystem-based management.

Under the Act, all fisheries with an export component, including state-managed fisheries, must be assessed before 1 December 2004. A total of 118 fisheries

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have been identified for assessment, and during 2003-04 thorough and high

quality assessments were completed for 19 fisheries, This brings the total number completed to 38 (see Appendix 1, Table 11 for details). A further 64 other fisheries were under active assessment during 2003-04.

Fisheries are assessed for their impacts on target species, by-catch, protected species and the whole ecosystem against the Australian Government Guidelines for the ecologically sustainable management offisheries. The assessments are labour intensive and lengthy as the focus is on introducing reforms to fisheries management rather than being simple audits. To complete the task within a reasonable timeframe, and at a standard that will see the best possible outcome for the long-term sustainability of these fisheries, will require an expansion in capacity so that the rate of assessment can be escalated above what has been achievable to date with the current resources.

Other outcomes include:

â¢ publication of the Government's approach to sustainable fisheries in various journals; â¢ undertaking training initiatives at the Australian Maritime College; and â¢ presentations at national and international workshops.

The outcomes of the fishery assessment process have increased industry certainty on the ongoing sustainabiity of fishing operations and have highlighted the value to industry of management arrangements that are capable of adjusting quickly to environmental concerns.

As a result, fishery management agencies are demonstrating a commitment to ecologically sustainable fisheries management practices, such as spatial management, independent research and data collection, cross-jurisdictional management approaches, harvest strategies for by-product species, mitigation and monitoring of protected species interactions, the development of biological reference points for target species, and the development of compliance systems and measures to reduce illegal take.

1.5 Transparency and public awareness

Increasing stakeholder and public awareness

Referral, assessment and approval

The EPBC Act web site (www.deh.gov.au/epbc) continues to play a vital stakeholder and public awareness role, thus facilitating community involvement. The principal decisions in relation to referral, assessment and approval process

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are posted on the site along with invitations to comment. During 2003-04, public comments were received on 54 referrals.

During 2003, the EPBC Act was amended to require weekly publication on the Internet of information on all permits issued or granted under the Act and a list of all matters required by the Act to be made available to the public. These notifications can be viewed at www.deh.gov.au/epbc/publicnotices/weekly . Public notifications relating to the new heritage provisions can be found at www.deh.gov.au/cgi-bin/epbc/heritageap.pl

The EPBC Act Protected Matters Search Tool, available on the EPBC Act web site at www.deh.gov.au/erin/ert/epbc, was upgraded to include a local government area search and to ensure that all protected matters are included in the search, including Commonwealth lands, Commonwealth Heritage places and places on the Register of the National Estate.

Heritage

Since the introduction of the new heritage protection legislation, briefings have been provided to Australian Government agencies, state and territory officials, Indigenous stakeholders, industry and community groups. Letters and information on the new heritage protection legislation have been sent to some 9000 stakeholders. Officials from the Department, in cooperation with Australian

members of the International Council on Monuments and Sites, have participated in briefings and workshops throughout Australia (see the case study on the Australian International Council on Monuments and Sites in Section 1.1). In addition, the previously established EPBC Unit within the World Wildlife Fund, which provides

information services to the community on the EPBC Act, expanded to cover the new heritage system.

A suite of information products was produced to increase public awareness of the new heritage system. These include fact sheets, guidelines and forms for nomination, a comprehensive web site and displays. To ensure transparency in the

nomination, assessment and Ministerial listing decision processes, a comprehensive database was developed to allow interested parties to access information on the new heritage system quickly and efficiently.

A National Heritage Protocol, agreed by the Environment Protection and Heritage Council, will ensure all states and territories are actively informed about newly received National Heritage List nominations. The protocol is based on principles . of cooperation and minimising unnecessary duplication and overlap between

governments. Where the nominations are in the assessment and listing process, the EPBC Act provides for consultation with owners, occupiers, interested parties and Indigenous persons who have rights or interests in the place.

Listed threatened species and ecological communities

Information sheets for listed ecological communities continue to be updated and improved. The inclusion of A3 maps within the information sheets now makes it clear where the listed ecological community may occur, with larger-scale inserts for those regions requiring greater attention. Recent information sheets published include the Swamps of the Fleurieu Peninsula in South Australia and the Mabi Forest in Queensland.

Publications developed during the year included information sheets for a number of newly listed threatened species, including the Australian Lungfish, Murray Cod and Australian Painted Snipe. An information sheet on harmful marine debris as a key threatening process also was published.

The Department has revised the Administrative Guidelines on Sign ificance - Supplements for the Grey-headed Flying-fox and the Spectacled Flying-fox, which

aims to assist landholders decide whether their actions need to be referred to the Australian Government for approval under the EPBC Act. The Department has worked cooperatively with state governments to revise these guidelines.

The National Turtle Recovery Group (NTRG) proposed that the Department prepare a newsletter on current turtle projects and conservation initiatives for distribution to stakeholders, interested communities and organisations, and the first edition was issued in June 2003-04. The NTRG also proposed that an education campaign targeted at Indigenous communities on the benefits of sustainable management of marine turtles and dugong be undertaken as a priority.

Following the listing of 46 Norfolk Island threatened flora species, an information booklet was developed to increase stakeholder awareness and understanding of how the EPBC Act operates on Norfolk Island. Departmental officers also visited Norfolk Island to talk to a range of stakeholders about the new threatened species listings and to seek feedback on the draft information booklet (see the case study below).

In addition to the presentations on Norfolk Island, during the year the Department provided presentations to a range of stakeholders including:

â¢ Seanet, which provides an environmental extension service to the Australian seafood industry; â¢ the Marine and Coastal Community Network, which is a national non-government organisation that facilitates community involvement in marine

conservation initiatives; â¢ stakeholders with responsibility or an interest in the ecologically sustainable management of Murray Cod; â¢ presentations to customs officers, importers of live animals (such as zoos)

and to participants at a pet expo on wildlife trade regulations (approximately 40 presentations this year); and

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â¢ training sessions conducted throughout Australia for approximately 600 staff of

the Australian Customs Service and state wildlife agency officers, to enable them to enforce the wildlife trade provisions of the EPBC Act.

Case study

Listing of 46 flora species on Norfolk Island In November 2003, 46 Norfolk Island plants were listed as threatened under the EPBC Act. Thirty-three of these species are only found on Norfolk Island and 11 species have fewer than 50 individuals remaining.

As part of the Australian Government's commitment to keeping interested stakeholders informed of decisions which affect them, representatives from the Department visited Norfolk Island in November 2003 to talk to local landholders, the Norfolk Island Government and interested groups about

how the new listings could affect them and how they may get involved in the conservation of these species.

An information booklet was developed which was aimed at increasing stakeholder awareness and understanding of how the EPBC Act operates on Norfolk Island. It gives a plain English explanation of the Act, what it means for residents and how they may be affected in the future. It also contains a list of threatened species with images, and provides contact details on where to go for

more information.

Copies of the draft booklet were made available for consultation on the Department's web site and on Norfolk Island prior to the departmental visit. The Department received a number of comments from the Norfolk Island Government and interested groups which were incorporated into the booklet to make it a more useful resource for the residents of Norfolk Island. The booklet has been distributed on Norfolk Island and may be viewed on the

Department's web site at www.deh.gov.au/biodiversity/publications/norfolk-island/index.html.

The Australian Government will continue to work with the island community to help conserve the territory's unique biodiversity. The Department is planning to negotiate a number of conservation agreements with Norfolk Island landholders, which will assist them to protect threatened species. Recovery plans for the 46 threatened plant species on Norfolk Island will be developed as multi-species plans where possible. The Department is planning to engage one or more consultants to prepare these recovery plans and consultation with people on

Norfolk Island will be an integral part of this process.

Enhancing community participation

The Department continues to publish new nominations of threatened species, threatened ecological communities and key threatening processes on the Department's web site and provides a formal two-month period for public comment on all nominations. This year, the Department informally increased the time period for public comment to facilitate public participation in the listing process. Any additional submissions received after the formal two month public comment periods are now taken into account if practicable within the decision-making timeframe.

Amendments to the lists of threatened species, threatened ecological communities and key threatening processes, including the Threatened Species Scientific Committee's advice to the Minister, continue to be published on the Department's web Site.

National Farmers'Federation EPBCAct Information Of

Advice and assistance to farmers and rural stakeholders in relation to the EPBC Act continued to be provided through the National Farmers' Federation EPBC Act Information Officer. The Information Officer provides:

â¢ clear, free explanations and advice about relevant aspects of the Act;

â¢ assistance with referrals, assessments and approvals and other features of the Act;

â¢ information products such as guides, fact sheets, and various web sites to make it easier for farmers and rural stakeholders to work with the legislation;

â¢ information and training on the EPBC Act to the National Farmers' Federation and associated organisations and rural stakeholders;

â¢ assistance with consultative processes such as comments on nominations for threatened species, ecological communities, key threatening processes and recovery plans; and

â¢ provision of feedback to the National Farmers' Federation and the Department on the operation of the Act.

Throughout the year the Information Officer has continued the programme for educating farmers and rural stakeholders about the EPBC Act. As a result, the national coverage of education on the EPBC Act for this sector has substantially increased. Numerous presentations were given to meetings organised by state and territory farming organisations as well as those state and territory government agencies with a rural focus in the Northern Territory, Queensland, Western Australia and Victoria. The presentations were well received and the increased awareness of the EPBC Act has resulted in greater legal certainty for individual farmers who

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have referred their farming activities under the EPBC Act. In addition, the increased

awareness has also improved the dialogue between farmers, state government agencies, local government, conservation groups and parliamentarians in most jurisdictions.

Due to the increased awareness of the EPBC Act amongst the rural sector, farmers and rural stakeholders have taken the opportunity to seek further advice from the Information Officer in relation to their farming activities and how they may relate to the EPBC Act. As a result, information and assistance has been provided to a number of farmers needing to refer new activities that may impact on matters of national environmental significance.

The position provided assistance to the Department by encouraging state and territory farming organisations to participate in consultation processes under the EPBC Act. In particular, the nomination of numerous threatened species and ecological communities, the development of recovery plans for listed threatened species and ecological communities and nominations for natural Indigenous and

historic places to be included on the National Heritage List.

Case study

Assistance to farmers in the Bluegrass region of central Queensland. The National Farmers' Federation and the Department are working together to develop information that will be used to improve decision-making processes under the EPBC Act as well as improve the management of an endangered vegetation community through possible future EPBC Act conservation agreements for farmers in the Bluegrass region of central Queensland.

The Bluegrass grasslands of the Brigalow Bioregion was listed as an Endangered Ecological Community under the EPBC Act after it was found that over 90 per cent of the original extent of this community had been destroyed or severely degraded.

The active management by graziers experienced in the management of native pastures represents the best chance for the survival of this vegetation community. As a result, the Australian Government has been working with farmers in central Queensland to support their stewardship of these unique areas.

In early 2004, the National Farmers' Federation EPBC Act Information Officer and officers from the Department held discussions with Queensland Government officers and cattle farmers in the Emerald and Clermont area of

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Central Queensland on farming activities that may impact on the nationally

listed Bluegrass ecological community. The aim of these discussions was to facilitate referral under the EPBC Act of proposed new cropping actions which are likely to have a significant impact on the Bluegrass ecological community thus ensuring the effective consideration of potential impacts on these plant communities. The discussion provided an opportunity to provide further training on the EPBC Act to state government staff, to discuss EPBC Act related

issues, to establish contacts and to inspect potential areas for the development of EPBC Act conservation agreements.

The Information Officer helped facilitate a referral to cultivate 800 hectares in and around a Bluegrass ecological community on one property. The Department has engaged an expert to map the Bluegrass ecological communitie