annual report 2012-13 - department of state...

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ANNUAL REPORT2012-13

P 2 Department for manufacturing, innovation, traDe, resources anD energy AnnuAl RepoRt 2012-13

A globally competitive, prosperous, and sustainable South Australia.

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DEPARTmENT fOR mANUfAcTURiNg, iNNOvATiON, TRADE, RESOURcES AND ENERgy

AnnuAl RePoRt 2012-13


DePARtment foR mAnufActuRing, innovAtion, tRADe, ResouRces AnD eneRgy

ABN 83 524 915 929

The conservatory 131-139 grenfell Street ADELAiDE SA 5000

gPO Box 1264 ADELAiDE SA 5001

DX 452

Telephone: +61 8 8303 2400 facsimile: +61 8 8303 2410 Email: [email protected] Website: www.dmitre.sa.gov.au

iSSN 2200-9493 (print) 2200-9507 (electronic)

iSBN 978-0-9872018-9-8

1 July 2012 - 30 June 2013

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Dear ministers

i have pleasure in submitting to you the Department for manufacturing, innovation, Trade, Resources and Energy’s Annual Report and financial statements for the year ended 30 June 2013. The report has been prepared in accordance with the requirements of the Public Sector Act 2009 and the Public Finance and Audit Act 1987.

yours sincerely

geoff Knight chief Executive Department for manufacturing, innovation, Trade, Resources and Energy 30 September 2013

the honouRAble JAy WeAtheRill mP

Premier minister for State Development minister for the Public Sector

15th floor State Administration centre 200 victoria Square ADELAiDE SA 5000

the honouRAble tom Kenyon mP

minister for manufacturing, innovation and Trade minister for Small Business

Level 6 45 Pirie Street ADELAiDE SA 5000

the honouRAble tom KoutsAntonis mP

minister for mineral Resources and Energy

Level 8 178 North Terrace ADELAiDE SA 5000

the honouRAble iAn hunteR mlc

minister for Water and the River murray

9th floor chesser House 91-97 grenfell Street ADELAiDE SA 5000


01 chief eXecutive’s foReWoRD P 1

02 About the DePARtment P 3

03 stRAtegic conteXt P 11

04 DeliveRing Results – highlights of the yeAR P 17

05 Achievements by stRAtegic obJective P 19

Strategic Objective 1: Leverage the value from our major projects for all South Australians P 19 Strategic Objective 2: Attract and facilitate targeted business and infrastructure investment P 20 Strategic Objective 3: Enable accessible and sustainable energy resources P 21 Strategic Objective 4: Drive the transition to high-value innovative manufacturing P 23 Strategic Objective 5: Deliver and advocate trusted regulation and targeted programs P 25 Strategic Enablers P 27 change@SouthAustralia P 28

06 looKing AheAD P 29

07 AbbReviAtions P 31

08 APPenDices P 33

8.1 Regional impact Assessment P 33 8.2 managing Risk and fraud P 33 8.3 Legislation Administered by DmiTRE P 33 8.4 Website Listing P 34 8.5 Reconciliation Statement P 35 8.6 management of Human Resources P 35 8.7 Reporting Against the carers’ Recognition Act 2005 P 42 8.8 Reporting Against the Whistleblower Protection Act 1993 P 42 8.9 Asbestos management P 42 8.10 greening of government Operations P 43 8.11 Urban Design charter P 44 8.12 freedom of information P 44 8.13 consultants P 45 8.14 Overseas Travel P 50 8.15 Accounts Payment Performance P 53 8.16 Boards and committees P 53

09 finAnciAl stAtements – DEPARTmENT fOR mANUfAcTURiNg, iNNOvATiON, TRADE, RESOURcES AND ENERgy P 55

cONTENTS

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list of figuRes

figure 1: DmiTRE high-level functional organisational chart as at 30 June 2013 P 6

figure 2: gSP and gDP growth (percentage against previous year) P 13

figure 3: South Australia’s international trade in goods and services P 13

figure 4: minerals and petroleum exploration expenditure P 14

figure 5: minerals and petroleum production P 14

figure 6: Energy efficiency of government buildings P 15

figure 7: carbon emissions intensity of South Australia’s electricity generation P 15

LiST Of figURES / LiST Of TABLES

list of tAbles

Table 1: Work health and safety prosecutions, notices and corrective action taken P 36

Table 2: gross workers’ compensation expenditure P 36

Table 3: meeting safety performance targets P 37

Table 4: Number of Aboriginal and/or Torrens Strait islander employees as at 30 June 2013 P 38

Table 5: Aboriginal and/or Torrens Strait islander employees by salary bracket at 30 June 2013 P 38

Table 6: cultural and linguistic diversity as at 30 June 2013 P 38

Table 7: Number of employees with ongoing disabilities requiring workplace adaptation P 39

Table 8: Total number of employees (staff paid as at 30 June 2013) P 39

Table 9: Employee numbers by gender P 39

Table 10: Status of employees in current positions P 40

Table 11: Employees (persons) by salary bracket and gender P 40

Table 12: Number of employees by age bracket by gender as at 30 June 2013 P 40

Table 13: Number of executives by gender, classification and status P 41

Table 14: voluntary flexible working arrangements by gender P 41

Table 15: Average days leave per full-time equivalent employee P 41

Table 16: Employees separated and recruited in 2012-13 P 41

Table 17: Documented review of individual performance development plans P 41

Table 18: Leadership and management training expenditure P 42

Table 19: Accredited training packages by classification P 42

Table 20: Annual Asbestos Risk Reduction Report 2012-13 P 42

Table 21: Performance against annual energy use targets P 43

Table 22: Number and overall expenditure of consultancies engaged P 45

Table 23: Overseas travel P 50

Table 24: Accounts payment performance (year to 30 June 2013) P 53


cHiEf EXEcUTivE’S fOREWORD01

The Department for manufacturing, innovation, Trade, Resources and Energy (DmiTRE) is the lead agency in two of the State government’s seven strategic priorities: Growing advanced manufacturing and Realising the benefits of the mining boom for all.

The development of the state’s enviable unconventional gas resources has become a major factor in achieving our aims. in 2012-13, international attention focused on these resources within a wider expansion of petroleum on and off-shore exploration and development. Australian Bureau of Statistics figures show South Australia’s combined annual mineral and petroleum exploration figure for 2012-13 was $616.8 million, up from $502.7 million the previous year. The $386.4 million of petroleum investment within this total is a record and more than double that of the previous year. The sector’s economic potential was promoted at events including the Australian Petroleum Production and Exploration Association (APPEA) conference in Brisbane in may 2013.

The surge in activity has been supported by the Roadmap for Unconventional Gas, which DmiTRE released in December 2012. consultation with more than 270 industry and research bodies was crucial to the development of a Roadmap now recognised as the most robust and collaborative gas policy framework in the country.

DmiTRE also continues to drive initiatives such as PACE 2020, which this year has delivered valuable geological and mineral resource knowledge, maps and leveraged partnerships across the resource value chain.

Our support for resources exploration and development has also included our dedicated case management and approvals for projects including Arrium’s iron monarch iron ore mine and Whyalla port expansion, and Stage 1 of centrex metals’ Port Spencer development.

The Olympic Dam Task force facilitated the extension of BHP Billiton’s rights to an amended indenture agreement to 2016, and commonwealth and State government support for a proposed $350 million transformation of Nyrstar’s Port Pirie Smelter.

Departmental collaboration with the commonwealth also contributed to sector development in the Woomera Prohibited Area (WPA), where the moratorium on granting new access deeds was lifted in October 2012. Already, 189 exploration licences are held by 57 companies.

South Australia is targeting india and china as critical partners in its industrial development. DmiTRE worked with partners to develop strategies to expand these relationships: the South Australia-India Engagement Strategy, released in October 2012, and the South Australia-China Engagement Strategy, which followed in December. The documents prompted high-level visits to india and china and investment attraction activities through invest in South Australia.

The state’s ongoing capacity to build these alliances will depend largely on its manufacturing capabilities. consultation with industry and the input of Professor göran Roos informed the development of the 10-year manufacturing strategy, Manufacturing Works, which DmiTRE released in October 2012 to transform and sustain a sector essential to our economic growth. Manufacturing Works programs introduced since its launch include the innovation voucher Program, business innovation

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workshops, launching the Small Business innovation Research pilot, and working with South-East forestry producers to identify new cellulose fibre markets.

Tonsley is a focal point for manufacturing’s transformation and its launch to local, national and international investors on 6 may 2013 was a major milestone in its development. flinders University has since announced it will locate a New ventures institute at Tonsley, in addition to its new School of computer Science, Engineering and mathematics. Other major anchor tenants include TAfE SA and Siemens.

DmiTRE’s efforts in achieving results in the areas of advanced manufacturing and supply-chain integration for the state’s mining sector, support realisation of the State government’s ambitions for economic growth, as outlined in the Premier’s Economic Statement. much of the department’s work straddles both priorities – for example, establishing the mining industry Participation Office to build resources supply-chain opportunities, and securing the mining and Petroleum Services centre of Excellence.

Similarly, DmiTRE’s support for manufacturing overlaps with its role as the provider of tools to help small businesses establish and grow, through the Small Business Strategy and with our colleagues in the Office of the Small Business commissioner.

DmiTRE’s efforts to support the safe and reliable supply of electricity in South Australia included the deregulation of energy retail prices in february 2013, which has led to increased competition for customers and innovative product offerings. coupled with National Energy customer framework (NEcf) reforms, this has helped consumers’ capacity to manage utility costs.

closely linked to our economic objectives was DmiTRE’s role in supporting the procurement, selection and rollout of South Australia’s new brand. The brand’s flexibility and appeal has led to its rapid adoption across government and by significant business partners.

in recent months, DmiTRE has also been the home for much of the change@SouthAustralia activity undertaken across government. DmiTRE Deputy chief Executive Erma Ranieri is chief Executive of change@SouthAustralia, which through a series of 90-day projects is unlocking the potential of the public-sector workforce. i would like to acknowledge the work of Erma and her team in generating and overseeing this work, and the cross-government and public-sector collaboration that has contributed to clear and positive outcomes for South Australians across the state.

Realising staff potential and fostering a high-performing workplace and culture is also the goal of the review of our performance-management process, which culminated in a new DmiTRE Performance framework to be rolled out during 2013.

DmiTRE continues to work for and with partners in business, in international markets and across government to achieve our objectives and support the government’s vision for a prosperous South Australia. i look forward to continued success in meeting these objectives.

geoff Knight chief Executive

01 cHiEf EXEcUTivE’S fOREWORD


The Department for manufacturing, innovation, Trade, Resources and Energy (DmiTRE) was formed as a result of the machinery of government changes in October 2011. it brings together the government bodies responsible for the state’s key economic development sectors - mineral resources and energy resources, manufacturing, trade and inward investment.

DmiTRE is in a unique position to drive economic development and ‘deliver results’ for all South Australians.

DmiTRE leads two of the South Australian government’s seven strategic priorities: Realising the benefits of the mining boom for all and Growing advanced manufacturing. DmiTRE also significantly contributes to the achievement of other priorities: Premium food and wine from our clean environment, An affordable place to live and Creating a vibrant city. The agency leads efforts to achieve 11 targets of South Australia’s Strategic Plan (SASP), and facilitates the sustainability of small and medium enterprises across the state.

To capitalise on the state’s economic potential and focus on our strengths we developed a roadmap for the future – DMITRE Strategic Directions 2012-15. The implementation of these strategic directions has assisted us to foster a culture of innovation across all functions of the department, from policy to service delivery.

DmitRe vision

A globally competitive, prosperous, and sustainable South Australia.

DmitRe mission

We create value for South Australia by:

• connecting industry, community, investors and opportunities

• enabling greater innovation and industry capability

• delivering an effective regulatory environment.

DmitRe stRAtegic obJectives

• Leverage the value from our major projects for all South Australians

• Attract and facilitate targeted business and infrastructure investment

• Enable accessible and sustainable energy and resources

• Drive the transition to high-value innovative manufacturing

• Deliver and advocate trusted regulation and targeted programs.

DmitRe stRAtegic enAbleRs

• A high-performing workforce and culture

• Effective and trusted stakeholder engagement

• High-value data and research

• Targeted marketing and communication

• Streamlined processes, systems and practices.

DmitRe vAlues

in a rapidly changing environment, our values are critical to shaping the culture of our agency and the outcomes we deliver. The core DmiTRE values provide a foundation for the way we do business, make decisions and interact with others.

To be successful, we aim for a values-based culture where:

• we are collaborative

• we respect others

ABOUT THE DEPARTmENT02

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• we act ethically

• we seek excellence

• we value individuals and their wellbeing.

further, we recognise that to drive economic development in South Australia we must exhibit courageous, innovative and visionary leadership.

Building on our core values, we will be:

• results driven

• progressive

• adaptive

• empowered

• commercially savvy.

stRAtegic Alignment

the south AustRAliAn goveRnment’s seven stRAtegic PRioRities

in 2012 the State government identified seven strategic priorities for South Australia’s future. These priorities are areas where the government considered it could most influence the lives of everyday working people and the future prosperity of our state.

The priorities are:

• creating a vibrant city

• An affordable place to live

• Every chance for every child

• growing advanced manufacturing

• Safe communities, healthy neighbourhoods

• Realising the benefits of the mining boom for all

• Premium food and wine from our clean environment.

These priorities recognise that South Australia is most productive when government works in partnership with business and community.

south AustRAliA’s stRAtegic PlAn

South Australia’s Strategic Plan (SASP) guides individuals, community organisations, governments and businesses to secure the wellbeing of all South Australians over the medium to long term. SASP contains our community’s visions and goals; its 100 measurable targets reflect our priorities.

DmiTRE is the lead agency for 11 SASP targets:

t37 total exports increase the value of South Australia’s export income to $25 billion by 2020 (baseline: 2002-03)

t38 business investment Exceed Australia’s ratio of business investment as a percentage of the economy by 2014 and maintain thereafter (baseline: 2002-03)

t41 minerals exploration Exploration expenditure in South Australia to be maintained in excess of $200 million per annum until 2015 (baseline: 2003)

t42 minerals production and processing increase the value of minerals production and processing to $10 billion by 2020 (baseline: 2002-03)

t60 energy efficiency – dwellings improve the energy efficiency of dwellings by 15 per cent by 2020 (baseline: 2003-04). milestone of 10 per cent by 2014

t61 energy efficiency – government buildings improve the energy efficiency of government buildings by 30 per cent by 2020 (baseline: 2000-01). milestone of 25 per cent by 2014

02 ABOUT THE DEPARTmENT



t64 Renewable energy Support the development of renewable energy so that it comprises 33 per cent of the state’s electricity production by 2020 (baseline: 2004-05). milestone of 20 per cent by 2014

t65 green power Purchase renewable energy for 50 per cent of the government’s own electricity needs by 2014 (baseline: 2010)

t66 emissions intensity Limit the carbon intensity of total South Australian electricity generation to 0.5 tonnes of carbon dioxide per mega Watt/Hour (cO2/mWh) by 2020 (baseline: 2011)

t94 venture capital Achieve a cumulative total of 100 private equity investments into South Australian companies between 2011 and 2020 (baseline: 2010-11)

t98 business research expenditure increase business expenditure on research and development to 1.5 per cent of gSP by 2014, and increase to 2.0 per cent by 2020 (baseline: 2000-01).

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figure 1: DmitRe high-level functional organisational chart as at 30 June 2013

Department for Manufacturing, Innovation, Trade, Resources and Energy

Advanced Manufacturing

Council

Minister for Manufacturing, Innovation and

TradeMinister for

Small Business

Chief Executive DMITRE

Resources and Energy Group

- Olympic Dam Task Force- Strategic Services

Manufacturing and Small Business

Industry Participation

Tonsley, Innovation &

Strategic Projects

International and Trade

Account Management

Case Management

Resource and Energy Sector Infrastructure

Council

Energy Resources

Division

Energy Markets and Programs

Division

Strategy People &

Culture Group

Invest in SAInvestment, Trade and

Strategic ProjectsDivision

Manufacturing and Innovation

Group

Premier of South Australia

Minister for State Development

Minister for the Public Sector

Change @ South Australia

Invest in South Australia Advisory Board

Immigration SA

O�ce of the Chief Executive

Policy & Economics

Strategy & Performance

Corporate Services

Strategic Marketing &

Communications

Mineral Resources

Division

Minister for Mineral Resources

and Energy

Minister for Water and the River Murray

DmitRe functionAl stRuctuRe

The October 2011 machinery of government changes resulted in a realignment of ministerial responsibilities and government departments, including the formation of DmiTRE. in 2012-13 the department consisted of five main functional areas and also supported the whole-of-government change@SouthAustralia initiative. These areas are discussed in greater detail below.



mAnufActuRing AnD innovAtion gRouP

The manufacturing and innovation group works with stakeholders such as manufacturers, industry associations, unions, research entities and other state and commonwealth government agencies to support and facilitate the growth of high-value, advanced manufacturing in South Australia. in 2012-13, the group’s key focus areas included:

• development and release of the Manufacturing Works strategy to assist the transition of South Australian manufacturing to high-value activities

• development and implementation of initiatives to increase the innovative capacity of manufacturing firms

• work with key stakeholders to design effective industry development models to leverage South Australia’s comparative and competitive advantages in resources, food and wine, forestry, automotive, medical technologies and defence

• work to support the future of the automotive sector in South Australia

• facilitation of awareness and adoption of emerging enabling technologies and capabilities, including nanotechnology, photonics and 3D printing

• stimulation of demand for innovation, through the realignment of government procurement and infrastructure development

• support for niche sectors of the Knowledge intensive Services sector, such as modelling and simulation, through sponsorship of a knowledge bank of industry intelligence and global opportunities

• support for the small business sector through developing the capacity of industry partners and stakeholders to deliver services, and sponsorship of development and access to relevant, high-quality, on-line business tools and information systems

• leadership of the development of Tonsley, in partnership with Renewal SA, to deliver physical infrastructure, economic development and investment attraction strategies for the site.

The industry capability Network of South Australia (icNSA) promoted South Australian, Australian and New Zealand industry through import replacement and opportunities for participation in major projects. icNSA performed a technical role by providing purchasers with a free sourcing service to identify Australian suppliers capable of supplying those items that would otherwise be imported.

The mining industry Participation Office developed strategies to increase local industry participation in mining supply chains and reviewed opportunities for icT in mining.

investment, tRADe AnD stRAtegic PRoJects Division

The investment, Trade and Strategic Projects Division (iTSP) supports sustainable economic growth by building South Australia’s competitive advantage and supporting new investment in the state. its four key work areas are:

• investment case management services for proponents of major projects, to enhance efficient delivery of these significant projects. The annual South Australian major Development Directory is also produced and supported by the division.

• account management to ensure key businesses within South Australia are actively engaged in a coordinated way to build a strong working relationship with government

• international and trade efforts to manage all offshore arrangements maintained by DmiTRE and focus on trade facilitation and opportunities to develop export markets for South Australian businesses. During the year, the government’s china and india engagement strategies were produced and are now being implemented by this division. in partnership with Austrade, the division operates TradeStart, a trade support and facilitation function for eligible exporters. The gateway grants Program is also administered for small businesses seeking to export.

• support for the Resources and Energy Sector infrastructure council (RESic), which provides an advisory and coordination role to the South Australian government and the private sector on resource development and energy infrastructure matters.

iTSP’s geographical reach spans both regional South Australia and international markets. The division works closely with the private sector and all tiers of government.

ResouRces AnD eneRgy gRouP

The Resources and Energy group is responsible for achieving the South Australian government's priority area Realising the benefits of the mining boom for all and associated South Australia’s Strategic Plan targets.

The group supports the vision that the mineral and energy resources sectors will deliver outcomes that continue to build South Australia’s international profile and strengthen the state’s economic prosperity, through sustainable development, best-practice regulation and delivery of energy markets and programs.

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Achievement of these outcomes is underpinned by the successful PACE 2020 programs – PACE Exploration, PACE mining, PACE global and PACE Energy – and the Roadmap for Unconventional Gas in South Australia, which aim to continue to build South Australia’s international profile and strengthen investor confidence in the state’s resources sector.

The Resources and Energy group comprises the mineral Resources Division, the Energy Resources Division, the Energy markets and Programs Division, including the Office of the Technical Regulator, and the Olympic Dam Task force.

mineral Resources Division

The mineral Resources Division is the lead division for investment, case management and regulation for the full minerals value chain, from the collection and promotion of precompetitive data to exploration, mining activity and closure. This enables the division to capitalise on knowledge and capabilities to realise the potential of the state’s mineral resources.

mineral Resources aims to:

• maximise the community’s net benefit from the state’s ownership of the rights to mineral resources

• manage the state’s mineral resources by regulating operations

• provide comprehensive, high-quality geoscientific data and advice

• develop sustainable practices for exploration and development

• facilitate projects through streamlined approval processes

• develop an effective and efficient policy and legislative framework

• collect royalties with reliable compliance frameworks.

The division delivers an integrated ‘one-stop shop’ framework for industry from initial exploration to operating mines and eventual rehabilitation, by providing leadership, policy, case management, advice and regulation. Key focus areas for the division in 2012-13 included:

• strengthening investment attraction to South Australia by implementing a targeted minerals exploration and investment attraction strategy

• facilitating the successful case management of mining development proposals

• leading the development of a multiple land-use framework and policy to improve land access decision-making

• building a social licence to operate, through ongoing delivery of a best practice regulatory framework.

energy Resources Division

The Energy Resources Division aims to maximise the community’s net benefits from the state’s ownership of the rights to petroleum and geothermal resources. it is responsible for driving petroleum (oil and gas); greenhouse gas storage; and geothermal energy exploration, development and production.

The division delivers an integrated ‘one-stop shop’ framework for industry and ensures the sustainable development of South Australia’s energy resources through:

• attracting private-sector exploration investment that will lead to new commercial petroleum and geothermal resource discoveries and developments

• regulating petroleum and geothermal exploration and development activities in a manner acceptable to both the community and industry

• providing policy advice to stakeholders on all aspects of petroleum and geothermal resources in South Australia.

Key functions in 2012-13 included:

• attracting exploration investment to facilitate development and maximise potential economic return to the state

• ensuring exploration and development activities were environmentally sustainable and socially acceptable

• addressing community concerns in the operations and regulation of the industry

• increasing the amount of accessible land for extraction activities through the process of building trust and fostering understanding

• implementation of recommendations from the Roadmap for Unconventional Gas.

The royalties’ functions from the mineral Resources and Energy Resources divisions were merged during 2012-13 to form the Resource Royalty Branch. The branch provides a single contact point for industry and focuses on regulation, policy development, advice, research, reporting and engagement.




energy markets and Programs Division

The Energy markets and Programs Division provides leadership, policy, advice and regulation within South Australia. its advice on energy frameworks and programs supports the delivery of a competitive, sustainable, safe, reliable and efficient supply and use of energy, for the benefit of the South Australian community.

Key functions in 2012-13 included:

• providing energy policy, advice and programs to achieve South Australian energy objectives and to contribute to the delivery of the South Australian government’s seven strategic priorities, in particular the priority An affordable place to live, and SASP targets

• liaising with other state and commonwealth groups on energy issues and policies

• providing policy advice, consultation and coordination of energy market reforms

• managing energy programs for the delivery of electricity services to remote areas

• providing energy advisory services to South Australian households and organisations

• leading the safety and technical regulation of the energy and water industries and end-use sectors through compliance, enforcement and promotion of electrical, gas and plumbing technical and safety requirements

• monitoring and managing emergency events.

olympic Dam task force

The Olympic Dam Task force provides specialised facilitation of resource projects that are significant in terms of size and complexity. The Task force guided proposed projects through government’s policy, planning, technical, legal, financial and environmental requirements, to enable approval and implementation. in 2012-13 these projects included BHP Billiton’s Olympic Dam expansion proposal and Nyrstar’s Port Pirie Smelter transformation proposal.

stRAtegy, PeoPle AnD cultuRe gRouP

The Strategy, People and culture group is responsible for the provision of administrative, governance and statutory reporting services to DmiTRE. The group comprises five divisions: the Office of the chief Executive, Policy and Economics, corporate Services, Strategic marketing and communications, and Strategy and Performance. Key functions include:

• providing administrative support and advice to the chief Executive and Senior Executive group, coordinating cross-agency projects, managing correspondence from the ministers’ offices related to their portfolio responsibilities, and contributing to the achievement of DmiTRE’s strategic objectives

• providing policy research, economic analysis and community-engagement services

• financial, human resources, information and infrastructure, and procurement and contract management for the whole agency

• coordinating and executing the state’s international migration programs

• maintaining and building DmiTRE’s reputation through a consistent, high-quality and innovative communications approach. Working with ministers and across the agency to support and coordinate departmental marketing initiatives, media management, publications, events and online activities

• roll-out of the change Strategy, including the development of DmiTRE’s values and strategic directions, the performance management process and departmental organisational capability development through agency-wide engagement and consultation

• coordinating DmiTRE’s input into SASP, High Performance framework and change@South Australia, and leading the department’s risk management and freedom of information functions.

invest in south AustRAliA

invest in South Australia is a cross-government commercial investment attraction unit that was formed in early 2012 in response to recommendations of the Economic Development Board. it aims to attract investment and economic development to the state through promoting South Australia and its investment opportunities to international and domestic capital markets, to maximise the economic benefits flowing from major infrastructure projects, and to influence how government approaches investors.

The unit is comprised of a small team of experts with international commerce, banking and finance experience. Key functions include:

• attracting capital, building relationships and generating jobs

• connecting investors with local contacts to facilitate investment in major projects

• building South Australia’s reputation as a sharp, innovative and resilient knowledge-based economy.

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invest in South Australia is overseen by a purpose-specific advisory board that includes internationally experienced business leaders and key government departmental executives.

chAnge@southAustRAliA

change@SouthAustralia was launched in June 2013 as the next expansive phase of the Public Sector Renewal Program. The program is a values-based cultural change program designed to create a dynamic and productive public sector with an emphasis on citizen-centric service delivery.

The program provides agencies and chief executives with services for a consistent approach to cultural change. This will underpin greater productivity, innovation and collaboration, to achieve the State government’s seven strategic priorities in a budget-constrained environment.

The Premier of South Australia has direct oversight of the program, chairing a steering committee with expertise from the public, private and academic sectors, that oversees its strategic direction. A task force of senior public servants with qualifications in change management has also been established to drive change@SouthAustralia within and across their agencies.



During 2012-13, the South Australian economy faced both challenges and opportunities related to continuing global economic uncertainty and growing Asian markets. While the Olympic Dam expansion postponement and issues facing the automotive sector were important challenges, DmiTRE worked together with South Australian businesses, industry and across government to assist industry to become more flexible, innovative and responsive to new and emerging trade and investment opportunities.

The diversity and quality of the state’s mineral and energy resources, along with its proximity to Asia and developing links with Asian countries, are creating significant opportunities and will continue to do so into the future. DmiTRE has key roles to play in maximising the economic development and social benefits arising from these opportunities, and in supporting business and industry as they pursue carefully selected avenues for diversification, competitiveness and growth.

Aiming to capitalise on links with india and china, the government launched both the india and china engagement strategies in late 2012. These strategies highlight how government and industry can partner to deliver mutually beneficial outcomes.

Recent demand for our mineral resources, coupled with high commodity prices, have seen our terms of trade strengthen and driven significant investment in resources projects. DmiTRE’s case management approach has assisted these projects through the approvals process, building confidence within industry and the broader community. The delivery of these projects by industry, on time and within budget, signals to the international investment community that South Australia can develop cost-effective projects, and that the state has a skilled workforce that is not constrained by labour shortages to the same extent as other jurisdictions.

These projects have contributed to a significant expansion of exploration and a four-fold increase in the number of mines operating in the state in the last decade. mineral and petroleum exploration expenditure totalled $616.8 million in the 2012-13 financial year, helping to bring forward a healthy inventory of resource projects.

South Australia also has significant opportunities associated with the unconventional gas sector. The United States government’s Energy information Administration estimates a potential 85 trillion cubic feet of recoverable shale gas from cooper Basin shales.

in order to help South Australian businesses take advantage of these opportunities, DmiTRE has established a mining industry Participation Office (miPO). miPO aims to help South Australian manufacturing and service companies meet the supply demands of the state’s expanding mining industry, by partnering with industry stakeholders to develop programs that increase local firms’ participation in local, national and international supply chains.

While providing opportunities within the resources sector, the strengthening terms of trade has placed pressure on our traditional exporters, particularly in our largest industry, manufacturing. Our industry must adapt to such an environment by transitioning to high value added and innovative manufacturing.

To this end, the government launched the Manufacturing Works strategy in October 2012. Manufacturing Works is based on four key strategy pillars:

• to enhance the capacity of manufacturers to innovate

• to upgrade the leadership, knowledge and skills of the South Australian workforce

• to capture future markets and opportunities

• to address infrastructure and policy gaps.

The strategy includes innovative approaches such as innovation vouchers and Small Business innovation Research grants, and has a focus on supporting centres of excellence and clusters (for example, mining services). The overall aim of the strategy is to transform South Australia’s manufacturing industry into one that provides a sustainable contribution to our economy in the long term, contributing to community wellbeing and quality of life.

STRATEgic cONTEXT03

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Linked to the Manufacturing Works strategy is the Tonsley redevelopment. Tonsley was officially launched by the Premier on 6 may 2013, and is targeting the mining and resources, health and medical devices, green construction and cleantech sectors, which have close links to high-value manufacturing. Tonsley will be a hub for high-value manufacturing and innovation that integrates industry, education, training, research, residential living and community amenities.

in addition to activities directly linked to mining or manufacturing industry development, the government has also introduced measures to support small businesses, including a Small Business commissioner to investigate and assist in settling small business-related disputes, an industry Participation Advocate to help businesses win a greater share of government procurement contracts, and policies to ensure prompt payment of supplier invoices.

in order to continue to compete, it will be necessary for South Australia’s workers and businesses to increase their productivity by incorporating new business models, processes and technology that push their products and services up the value chain. Technological progress and industry innovation lead to sustained economic growth and productivity. The transformation of knowledge, combined with business creativity, will lead to new products and market opportunities.

south AustRAliA’s economic PeRfoRmAnce

• gross State Product (gSP) grew by 2.1 per cent in 2011-12.

• Labour force participation rate at trend was 62.9 per cent in June 2013.

• Trend total employment was at 817 500 in June 2013.

• Unemployment rate at trend was 6.3 per cent in June 2013.

• South Australia’s manufacturing sector employed 9.4 per cent of the state’s workforce in may 2013, and contributed 10.0 per cent of SA’s industry gross value Added in 2011-12.

• South Australia’s mining sector employed 1.2 per cent of the state’s workforce in may 2013, and contributed 5.2 per cent of SA’s industry gross value Added in 2011-12.

• Private new capital expenditure was $5.5 billion in the year to June 2013, 1.5 per cent ($83 million) less than in the previous 12 months.

• manufacturing and mining comprised 40 per cent ($2.17 billion) of all South Australian private new capital expenditure in the year to June 2013; this was an increase of 10.0 per cent ($194 million) over the previous 12 months.

• The value of South Australia’s overseas goods exports fell 5.9 per cent in the 12 months to June 2013.

• South Australia's exports totalled $10.7 billion in the year to June 2013, down from $11.4 billion in the same period in 2012. major export commodities included metal ores and scrap, wheat, copper, wine and meat goods.

• Resources exploration (mineral and petroleum) expenditure totalled $616.8 million in the 2012-13 financial year. This was an increase of $114.1 million or 23 per cent over the financial year.

03 STRATEgic cONTEXT



figure 3: south Australia’s international trade in goods and services ABS Cat No 5368.0

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mineRAls AnD PetRoleum eXPloRAtion AnD PRoDuctionLinked to SASP T41 and T42

figure 4: minerals and petroleum exploration expenditure ABS Cat No 8412.0 (aggregated from quarterly data)

figure 5: minerals and petroleum production Source: DMITRE

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eneRgy efficiency AnD emissions intensityLinked to SASP T61 and T66

figure 6: energy efficiency of government buildings Source: DMITRE

figure 7: carbon emissions intensity of south Australia’s electricity generation Source: South Australian Supply and Demand Outlook, Australian Energy Market Operator, National Greenhouse Gas Inventory data, the Department of Climate Change and Energy Efficiency

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• Released a comprehensive high-value manufacturing strategy for South Australia, Manufacturing Works, to transition the state’s manufacturing industry to high value-added activities, competing on value for money in global markets.

• Published the Roadmap for Unconventional Gas in South Australia.

• Delivered PACE 2020 year three outcomes with the full implementation of PACE Exploration, PACE mining, PACE Energy and PACE global programs, including initiating round seven of PACE Discovery Drilling with industry and the launch of online tracking for Exploration Licence Applications through the South Australian Resources information geoserver (SARig 2020).

• Established the mining industry Participation Office (miPO) to help South Australian manufacturing companies meet the supply demands of the state’s expanding mining and energy industry and increase local participation in local, national and international supply chains.

• Progressed the Tonsley redevelopment with the aim of aligning research with industry and market needs to help manufacturers improve competitiveness and develop new high-value products and services:

- completed the detailed design and commenced construction of stage one

- commenced the TAfE SA Sustainable industries Education centre (SiEc) development

- secured flinders University onsite as the anchor investor in the Tonsley precinct.

• Released the South Australia-China Engagement Strategy to forge stronger economic ties and maximise the benefits for industry, business and the community. The strategy outlines four streams of work to leverage the opportunities offered by china’s economic development.

• Released the South Australia-India Engagement Strategy to strengthen the state’s ties with india and build a long-term partnership. The current work program has a short and long-term focus, targeting opportunities for industry to benefit from a stronger and diverse relationship with india.

• South Australia’s mineral exploration expenditure for the 2012 calendar year reached $311.6 million, substantially exceeding the SASP target of $200 million per annum.

• SARig 2020, South Australia’s unique online tool for unlocking the wealth of state-wide geological and geo-spatial data, was awarded the Australian government Excellence in e-government Award for 2013 in the ‘geospatial’ category and recognised by the fraser institute as best in the world for geoscience databases.

• South Australia maintained its lead rating in the 2013 minerals council of Australia (mcA) Scorecard for mining project approvals processes, securing the highest scores of any Australian jurisdiction on 13 of the 19 issues assessed.

• Delivered a support package between the South Australian government, Nyrstar and the commonwealth government for a proposed $350 million transformation by Nyrstar of its Port Pirie smelter (subject to feasibility studies), to secure the long-term commercial viability and sustainable future of the facility and the local community, and to improve environmental and health outcomes.

• implemented a new South Australian industry Participation Policy to ensure local businesses are given full, fair and reasonable opportunity to tender and participate in significant public and private sector projects.

DELivERiNg RESULTS – HigHLigHTS Of THE yEAR

04

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• Sustained national leadership in geothermal energy investment by facilitating geodynamics’ and Petratherm’s Renewable Energy Demonstration Program projects.

• facilitated an extension to BHP Billiton’s rights to an amended indenture until 2016, to enable the company to complete investigations into the development of a new mine plan that is less capital intensive than its original proposal, following BHP Billiton’s deferral of an investment decision.

• Advised government on the deregulation of energy retail prices and provided an immediate reduction to energy prices through a commitment from AgL to provide current residential standing contract customers a 9.1 per cent discount on current rates for a two-year period from 1 January 2013, and a commitment from Origin Energy to cut the gas standing contract price by 1 per cent from the start of price deregulation.

• Provided safe and reliable electricity to about 3600 consumers across 15 remote communities within Aboriginal lands and 13 off-grid remote area towns outside Aboriginal lands.

• implemented the Small Business Strategy for South Australia and created a sustainable delivery mechanism to provide services to the small business sector, in particular providing digital content through multiple mediums including mobile devices.

• commenced the innovation voucher program to encourage greater collaboration between small-to-medium enterprises and research and development organisations, to begin the process of solving industry problems and encourage greater innovation within the manufacturing sector.

• commenced the National Energy customer framework, which provides enhanced protections for consumers and encourages competition, as retailers can operate across state boundaries with standardised terms and conditions.

• completed a commonwealth government-funded energy efficiency program for commercial businesses in coober Pedy.

• implemented the South East forestry Partnership program to support capital investment in the forestry sector in South Australia’s south-east.

• Provided assistance to small-to-medium enterprises to commercialise new cleantech products and services, including support for proof of concept and commercial viability testing through the cleantech Partnering program.

• implemented initiatives to target additional skilled and high net-worth migrants for state nomination under the general Skilled and Business innovation and investment migration programs.

• Launched change@SouthAustralia to drive a values-based cultural change management strategy across the public sector, which included outlining the direction of reform in the South Australian public sector.

• Delivered the final tranche of solar hot-water rebate approvals to low-income households.

• commissioned a study of the cellulose fibre sector in South East South Australia by global expert vTT.

04 DELivERiNg RESULTS – HigHLigHTS Of THE yEAR


stRAtegic obJective 1: LEvERAgE THE vALUE fROm OUR mAJOR PROJEcTS fOR ALL SOUTH AUSTRALiANS

SOUTH AUSTRALIAN MAJOR DEVELOPMENTS DIRECTORY 2012-13

The directory promotes the state’s economic environment and investment opportunities through an integrated communications awareness program.

During 2012-13 DmiTRE hosted targeted business awareness meetings in melbourne, Sydney and Perth to promote South Australia’s economic climate, investment opportunities and the directory.

inDustRy PARticiPAtion

The industry capability Network of South Australia (icNSA) facilitated more than $172 million worth of contracts for local suppliers across the manufacturing, resources, defence and infrastructure sectors. Through icNSA’s involvement in the national icN network, South Australian industry was awarded an additional $62 million worth of contracts from other states, bringing the value of contracts awarded to South Australian industry through the icNSA to $234 million.

icNSA developed a prequalification service for major projects which will assist icNSA in determining capability gaps within companies and the state.

in July 2012, the revised industry Participation Policy came into effect. The policy aims to ensure that South Australian businesses are given full, fair and reasonable opportunity to tender and participate in significant public and private sector projects and public procurements.

tonsley oPen foR business

Tonsley will be a hub for high-value manufacturing and innovation that integrates industry, education, training and research with residential living and community facilities. Tonsley’s Economic Development Plan provides the framework for the site’s future economic development and identifies its target industry sectors of mining and resources, health and medical devices, green construction and cleantech.

in may 2013, Tonsley was officially launched by the Premier, promoting the site to the commercial market as open for business. The site’s unique brand and vision can be explored at the Tonsley website (www.tonsley.com).

in August 2012, flinders University announced a major $120 million investment in a new School of computer Science, Engineering and mathematics and associated research programs and facilities to open in January 2015. construction commenced in July 2013. flinders University will be a key education and research investor at Tonsley; two additional stages are anticipated.

TAfE SA’s $119 million Sustainable industries Education centre (SiEc) and associated retail offerings are also set to open in January 2014.

otheR Achievements in 2012-13

• Encouraged case-managed projects to target a greater share of value-chain and supply-chain opportunities for local companies.

• Assisted potential investors by providing information of commercial relevance and case management services for a range of significant projects.

• Supported the investigation of initiatives in Port Pirie with the potential to result in improved infrastructure and economic opportunities.

AcHiEvEmENTS By STRATEgic OBJEcTivE

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05 AcHiEvEmENTS By STRATEgic OBJEcTivE

• Developed an account management framework for 2013-14 to engage and build strong relationships with businesses. This will complement case management, streamline business operations and gather business intelligence to support DmiTRE corporate objectives. it will also boost opportunities for economic success with a focus on existing South Australian businesses.

stRAtegic obJective 2: ATTRAcT AND fAciLiTATE TARgETED BUSiNESS AND iNfRASTRUcTURE iNvESTmENT

chinA AnD inDiA engAgement stRAtegies

DmiTRE released two major engagement initiatives: the South Australia-China Engagement Strategy and South Australia-India Engagement Strategy.

The South Australia-China Engagement Strategy was developed to forge stronger economic ties with china and maximise industry, business and community benefits. The china engagement strategy is built around four work areas:

• to consolidate and promote South Australia’s capability to partner with china

• to coordinate and leverage government activity to build a trade and investment framework for business

• to build and support china-ready South Australian businesses

• to refocus government resources to support the strategy.

Preliminary discussions were held with the provincial government of Shandong to progress the engagement strategy.

The South Australia-India Engagement Strategy is intended to strengthen the state’s ties with india and build a long-term partnership to optimise the benefits for industry and the community. DmiTRE has staged industry workshops to share information on the major indicators of india’s economic performance and the reforms driving india’s growth.

As part of these strategies, the china council and india council were created. These councils are responsible for implementing the strategies and have hosted trade visits to china and india. The councils are supported through the investment, Trade and Strategic Projects Division. Each met several times in 2012-13.

geneRAl motoRs (gm) holDen

The commonwealth, South Australian and victorian governments announced a $275 million co-investment program for gm Holden to build two new vehicles at Elizabeth in the second half of this decade. The department continued to work closely with gm Holden to identify opportunities to position the South Australian automotive sector within the gm global supply chain and assist the diversification of suppliers into other sectors.

The department also collaborated with the commonwealth and victorian governments in the design and delivery of a $30 million Automotive New markets Program, with several South Australian automotive suppliers receiving funding for projects.

mAJoR mining AnD infRAstRuctuRe PRoJects

DmiTRE contributed to the continued growth of South Australia’s mining industry through dedicated case management of approvals for:

• a retention lease for the carrapateena copper-gold project

• new mining operations at Arrium’s iron monarch iron ore mine

• the commencement of mining at Arrium’s Peculiar Knob iron ore mine as part of its new Southern iron Operations, with the first shipment in December 2012

• the major project approval for stage 1 of the centrex metals Port Spencer bulk minerals export port development

• the $200 million expansion of Arrium’s port facilities at Whyalla, increasing capacity from six million tonnes per annum to 13 million tonnes per annum

• the grant of a mining Lease for Quasar/Alliance’s four mile uranium project – bringing operations at this world-class resource one step closer

• the successful re-opening of operations at the mindarie Heavy mineral Sands operation in the state’s east through the concerted and collaborative efforts of murray Zircon in partnership with DmiTRE in rebuilding community confidence and ensuring social licence to operate for new owners murray Zircon.



stRAtegic obJective 3: ENABLE AccESSiBLE AND SUSTAiNABLE ENERgy AND RESOURcES

PACE 2020: PlAn foR AcceleRAting eXPloRAtion

DmiTRE delivered PACE 2020 year Three outcomes with the full implementation of PACE Exploration, PACE mining, PACE Energy and PACE global programs. Key accomplishments included:

• completion of PACE Discovery Drilling with industry (Round 7)

• launch of online tracking for exploration licence applications through the South Australian Resources information geoserver (SARig 2020)

• release of geoscientific information and online products including frome Embayment AEm data release 2012, completion of the marree geophysical Survey, and the release of a revised 2nd Edition of the Palaeodrainage and cenozoic coastal Barriers of South Australia state map and the 6th Edition of the South Australian Uranium Occurrence map

• completion and release of a state-wide South Australia Regolith map, providing an account of the cover and associated landforms across South Australia that will provide regional geological and exploration context

• completion of workshops to Eyre Peninsula landowners and communities to inform them about land-access requirements from early mineral exploration stages to mine development.

invest in south AustRAliA

in its first full year of operation, the invest in South Australia team assessed South Australia’s investment opportunities and implemented investor identification, engagement and promotion strategies. While South Australia has had a traditional investor base from North America and Western Europe, Asia now presents the state’s largest new trading and investment partners. The government’s china and india engagement strategies are supported through targeted investor strategies in these countries.

invest in South Australia has developed and published a range of materials detailing investment opportunities across the minerals, energy, resources infrastructure, clean technology and agribusiness sectors to help potential investors identify investment-ready projects, and will continue to expand this information and engagement over the coming year.

ResouRces AnD eneRgy sectoR infRAstRuctuRe council (Resic)

The South Australian government released its response to RESic’s recommendations (Directions Statement) developed through the 2011 Resources and Energy infrastructure Demand Study.

in partnership with the Whyalla community consultation committee, RESic initiated the Port Bonython visualisation Project, which was jointly funded by DmiTRE, Regional Development Australia (Eyre and Western) and private-sector proponents. The interactive tool will highlight the region’s development potential to investors and improve community consultation.

RESic also promoted infrastructure development opportunities at local and national conferences.


• Established the minerals Targeted investment Strategy and delivered national and international programs.

• The joint South Australia-Northern Territory minerals investment attraction strategy was formalised through a memorandum of Understanding and the delivery of the 2013 South Australia-Northern Territory china minerals investment Summit, which attracted 200 delegates from around the world.

• funded 15 projects under the South East South Australia innovation and investment fund to generate $16.5 million in capital expenditure and create more than 120 jobs in the Limestone coast region.

• Supported the Auto co-operative Research centre (AutocRc) to deliver two projects that focus on increased product and process innovation and enhance the viability and sustainability of the automotive industry in South Australia.

• Progressed investment and trade priorities emerging from the china and india engagement strategies and the review of South Australia’s overseas representative footprint.

• continued to work closely with Austrade to provide support for South Australian companies seeking to establish overseas markets.

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RoADmAP foR unconventionAl gAs

DmiTRE published the Roadmap for Unconventional Gas Projects in South Australia in December 2012 and convened a roundtable workshop in early 2013 to commence implementation of the highest priority recommendations:

• a hub for training to meet Australia/South East Asia skill requirements for deep unconventional gas operations

• efficient and fit-for-purpose supply hubs, roads and airstrips in the cooper-Eromanga basins

• efficient and fit-for-purpose water use in the cooper-Eromanga basins

• an industry-government partnership for safe and sustainable transport with reduced red tape along the South Australia-Queensland wharf-to-well corridors to the cooper-Eromanga basins

• innovative activity towards cost-effective and trustworthy greenhouse gas detection.

five working groups were formed comprising peak representative bodies, companies, universities, individuals and key government agencies.

investment in mineRAl eXPloRAtion

mineral exploration expenditure in South Australia for the 2012 calendar year reached $311.6 million, substantially exceeding the SASP target of $200 million a year.

A total of 300 exploration licence applications were received during 2012, compared to 290 applications in 2011. As a result, 284 exploration licences were granted throughout 2012. At 31 December 2012 there were 967 active exploration licences listed in the mining Register. The drilling metres approved in 2012 totalled 1 429 553 metres, higher than the 2011 figure of 1 408 855 metres.

The mineral Exploration Release Areas (ERA) online process was implemented in SARig 2020, in July 2012. A total of 113 areas covering approximately 40 000 sq km have been released to industry through this process.

sARig 2020 RecogniseD With AustRAliAn goveRnment eXcellence AWARD

The South Australian Resources information geoserver (SARig) is an online web application developed by DmiTRE Resources and Energy group that enables users to search, view and download information relating to minerals, petroleum and geothermal exploration in South Australia.

it was awarded the Australian government Excellence in e government Award for 2013 in the ‘geospatial’ category and also recognised as best in the world for geoscience Databases by the fraser institute.

unlocKing mineRAl PotentiAl in the WoomeRA PRohibiteD AReA

Delivery on strategic initiatives to facilitate access for explorers to the highly prospective Woomera Prohibited Area (WPA) included:

• commencing the major targeted geophysical gravity survey within the WPA to stimulate the next generation of world-class mine discoveries

• DmiTRE working in collaboration with the Department of Defence to release a standard deed of access for mineral exploration and publication of the forward calendar of exclusion periods for the amber zones of the WPA, to enable explorers to schedule their on-ground activities

• release of the National multiple Land Use framework, which was developed through the cOAg Standing council of Energy Resources.

olymPic DAm AnD stuARt shelf inDentuRe

DmiTRE worked with BHP Billiton and other agencies to deliver an extension to the company’s rights to an amended indenture until 2016 that would enable it to complete investigations into the development of a new mine plan at Olympic Dam that is less capital intensive than its original proposal. This followed BHP Billiton’s deferral of an investment decision relating to the proposed expansion.

ReseARch PARtneRshiPs

in collaboration with the Deep Exploration Technologies cooperative Research centre (DET cRc) DmiTRE successfully mapped the alteration halo around Olympic Domain iOcg Prospect. This increases the geochemical expression footprint 100 fold and is a major breakthrough in enhancing exploration approaches within the deep-cover exploration frontier.

DmiTRE established the first three-way partnership with the china National Nuclear corporation and the Saskatchewan mining Agency for co-operation on Uranium geoscience.




• South Australia maintained its lead rating in the 2013 minerals council of Australia (mcA) Scorecard for mining project approvals processes, securing the highest scores of any Australian jurisdiction on 13 of the 19 issues assessed.

• in may 2013, the Australian Petroleum Production & Exploration Association awarded its prestigious Lewis g. Weeks gold medal to Barry goldstein, Executive Director Energy Resources Division, for his major contribution to the petroleum sector in Australia.

• South Australia sustained its national leadership in geothermal energy investment by facilitating the geodynamics’ and Petratherm’s Renewable Energy Demonstration Program projects.

• Led the development of leading-practice national regulatory frameworks to leverage petroleum, geothermal and gas storage projects in South Australia.

• The glenside Drill core Storage facility continued to provide world-class facilities and information delivery to South Australian minerals and energy explorers, with 1120 visitors inspecting 294 000 metres of core.

• Endorsed the Resources and Energy Sector infrastructure council (RESic) recommendations and progressed the development of the infrastructure channel.

• Significant involvement in the delivery of consultation reports for three regional mining and infrastructure plans underpinned by the 2011 RESic infrastructure Demand Study.

stRAtegic obJective 4: DRivE THE TRANSiTiON TO HigH-vALUE iNNOvATivE mANUfAcTURiNg

MANUFACTURING WORKS – A mAnufActuRing stRAtegy foR south AustRAliA

Manufacturing Works, the South Australian government’s 10-year manufacturing strategy to drive the transition of South Australian manufacturing to high value-added activities, was released in October 2012.

The following year One outcomes were delivered:

• funding under the innovation voucher Program for nine companies to research industry problems

• workshops to increase business innovative capacity and launched introductory seminars on manufacturing services

• in partnership with SA Water, launched the first challenge under the Small Business innovation Research pilot to demonstrate how government procurement can drive innovation by creating demand for new solutions

• provided financial support to 14 projects progressing from new clean technology products and services to manufacturing prototyping and trials under the cleantech Partnering Program

• in collaboration with the Department for further Education, Employment, Science and Technology (DfEEST), DmiTRE designed an accredited supply-chain engagement training program to help businesses access global supply chains, beginning with defence and mining-related manufacturing

• designed a Supplier Transformation Program with the Automotive Supplier Advocate and Automotive Supplier Excellence Australia to assist existing suppliers looking to expand into non-automotive sectors.

ADvAnceD mAnufActuRing council

The Advanced manufacturing council (Amc) was established to drive the development and implementation of policies, strategies and programs to support the growth and international competitiveness of South Australia’s manufacturing sector.

The Amc provided high-level, strategic advice to the growing Advanced manufacturing cabinet Taskforce. Key achievements of the Amc included:

• the establishment of an industry reference group to promote engagement and consultation with local industry and research organisations

• ongoing engagement in national policy development and implementation through participation in the manufacturing Leaders group

• strategic direction and oversight, including providing expert advice and reference material, for the implementation of Manufacturing Works initiatives

• input into the manufacturing Scorecard being developed by DmiTRE’s Policy and Economics Unit

• oversight of the cellulose fibre chain initiative being undertaken in the Limestone coast.

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mining inDustRy PARticiPAtion office

in October 2012, the mining industry Participation Office (miPO) was established. it aims to help South Australian manufacturing companies meet the demands of the state’s expanding mining industry and increase South Australian participation in local, national and international supply chains.

An advisory council was formed in march 2013 comprising senior industry executives from mining and energy companies, suppliers and the State government, to prioritise activities and ensure alignment with industry needs.

in 2012-13, miPO implemented actions aligned with the council’s priorities, including:

• collaboration with Santos, Beach Energy and Senex to establish on-shore oil and gas training facilities for production, safety and operations-focused training. The intention is for the facilities to form part of the centre of Excellence for mining and Petroleum

• progressed a supply/demand gap analysis and expansion of opportunities within the unconventional gas supply chain

• developed a miPO web portal to improve the quality and availability of industry information to help local suppliers position their businesses for future growth

• progressed an icT Roadmap for South Australia, expected to be completed by the end of July 2013. An industry roundtable is scheduled for October 2013

• submitted an application for a minerals and energy resources precinct as part of the federal government’s industry innovation Precinct initiative.

south eAst foRestRy inDustRy

in November 2012, a $27 million South East forestry Partnerships Program was launched to support the forestry industry by encouraging further investment in new and existing businesses.

in march 2013, stage one of a value-chain study prepared by the vTT Technical Research centre in finland was released. The study outlines the feasibility of creating new opportunities from cellulose fibre and aims to develop a roadmap, including achievable market opportunities, for higher value-added activity in the forestry sector.

ResouRce efficient mAnufActuRing

DmiTRE helped companies develop innovative solutions that promote resource efficiency and reuse, including alternative energy supply options, reuse of foundry waste streams and resource collaboration in the Upper Spencer gulf under the Eco innovation Program.

DmiTRE awarded funding for 11 companies to identify and implement energy improvement initiatives under the Business Sustainability Alliance Energy Efficiency Program. This has resulted in potential annual energy savings of 29 per cent and greenhouse gas emission reductions of 824 tonnes of carbon dioxide.


• DmiTRE supported the innovyz Start Program for two mentor-based accelerator programs in Adelaide to assist innovative companies raise capital and navigate national and international growth, as part of a global accelerator network.

• Developed the major Projects Ready Program to help businesses engage in supply chains, major projects, tenders and joint ventures and increase the number of businesses that are able to enter major project supply chains.

• Delivered a support package between the South Australian government, Nyrstar and the commonwealth government for a proposed $350 million transformation by Nyrstar of its Port Pirie smelter (subject to the completion of feasibility studies). The aim is to secure the long-term commercial viability and sustainable future of the facility and the local community, and improve environmental and health outcomes.

• commenced the facilitation of Nyrstar’s major development assessment process and the development of a Targeted Lead Abatement Program for Port Pirie, to minimise the exposure of young children to residual lead.

• Assisted the development of a globally competitive cluster focused on advanced manufacturing in the aerospace sector in collaboration with the Defence Teaming centre.

• in collaboration with food SA and the Department of Primary industries and Regions of South Australia (PiRSA), commenced an initiative to establish specialised food clusters to improve aspects of the industry, such as innovation with food technology, apply effective manufacturing production technologies, enhance the sector’s branding and capture value through consumer intelligence and market trends.

• Provided assistance to small-to-medium enterprises to commercialise new cleantech products and services, including support for proof-of-concept and commercial-viability testing through the cleantech Partnering program.



stRAtegic obJective 5: DELivER AND ADvOcATE TRUSTED REgULATiON AND TARgETED PROgRAmS

PetRoleum, gAs stoRAge AnD geotheRmAl eneRgy inDustRy comPliAnce

Two new statements of environmental objectives (SEOs) that cover geophysical operations in the cooper Basin (for Santos) and fracture stimulation of deep shale gas and tight gas targets in the Nappamerri Trough (for Beach Energy) were approved. A further four SEOs covering geophysical operations and exploration drilling activities are under review.

in 2012, 260 activity notifications covering various geophysical, drilling and production operations were submitted and reviewed by DmiTRE and, where required, approved by the minister for mineral Resources and Energy. Of these, 135 activity notifications related to high-surveillance operator activities. DmiTRE also received 130 annual compliance reports for review.

The 2012 compliance report required under the Petroleum and Geothermal Energy Act 2000 was released in April 2013. it details compliance of the regulated industries. The Petroleum and Geothermal Energy Regulations 2013 were amended to facilitate speculative onshore data acquisition.

Remote AReAs electRicity suPPlies scheme

The Remote Areas Electricity Supplies (RAES) scheme continued to provide safe and reliable electricity to approximately 3600 customers across 15 remote communities within Aboriginal lands and 13 off-grid remote area towns outside Aboriginal lands through:

• ongoing provision of significant subsidy payments to three independent operators at Andamooka, coober Pedy and yunta

• replacing ceramic insulators on the central Power House (cPH) grid with insulators that are resilient to lightning strikes

• replacing a generator at Pipalyatjara and installing an additional generator at the cPH

• upgrades to communication and control equipment to improve safety and reliability.

eneRgy ADvisoRy seRvice

DmiTRE delivered services to support households in managing energy costs and reducing energy use through the Energy Advisory Service, Energy Partners Program and Energy franchise on sa.gov.au. in 2012-13, advisory services included:

• providing information to 160 000 visitors online, and responding to more than 2000 enquiries (phone calls and emails) from the public

• maintaining the Home Energy Toolkit program, with more than 1500 households borrowing toolkits from public libraries

• providing information to, and working with, 68 South Australian community organisations and government agencies. Also formed partnerships with 13 new organisations. This included a joint project with Adelaide city council to develop energy information translated into five key languages, and to develop visually rich communication materials for clients with low literacy or low proficiency in written English

• assisting Uniting communities to successfully bid for funding under the commonwealth government’s Low income Energy Efficiency Program.

business online seRvices

in collaboration with the commonwealth government and other state and territory governments, the Business Online Services Project delivered a nationally coordinated system to help businesses manage their regulatory responsibilities.

The state-based Business Licence information Service (BLiS) was transitioned to the Australian Business Licence information Service (ABLiS) in August 2012.

smAll business stRAtegy

As part of the Small Business Strategy, DmiTRE developed and produced interactive online information and tools for small business to assist them to establish and grow.

Other achievements include:

• the development of family business-specific information and tools and regional workshops, including wealth diversification and succession-planning workshops, in collaboration with family Business Australia, South Australia

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• delivering the Business coaching and mentoring Program, an advanced business skills development program targeted at owners and managers of established South Australian small businesses, through Business SA

• the Small Business contact Service provided a first point of contact for small business start-ups and owners to receive advice regarding business information, tools and services

• delivery of the Regional Business Sustainability Program, an applied learning program designed to increase small business sustainability in regional areas, including the Limestone coast, Whyalla and Eyre Peninsula.

nAtionAl eneRgy customeR fRAmeWoRK

DmiTRE supported the implementation of the National Energy customer framework, providing enhanced protections for consumers and encouraging competition through retailers operating across state boundaries with standardised terms and conditions.

office of the technicAl RegulAtoR

The technical regulation of plumbing was successfully transitioned from SA Water to the Office of the Technical Regulator (OTR) in January 2013. The OTR now regulates gas, electrical and plumbing work and represents South Australia on associated codes and standards.

oveRseAs migRAtion

DmiTRE implemented initiatives to target additional skilled and high net-worth migrants for state nomination under the general skilled and business innovation and investment migration programs.

The department also complemented the delivery of the Australian government’s Department of immigration and citizenship (DiAc) initiatives through:

• development of an e-lodgement solution for state skilled and business nomination and South Australian employer advice applications

• updating the main communication portal for migrants and South Australian employers looking to consider skilled migration.


• Advised government on the deregulation of energy retail prices and provided an immediate reduction to energy prices through a commitment from AgL to provide current residential standing contract customers a 9.1 per cent discount on current rates for a two year period from 1 January 2013, and a commitment from Origin Energy to cut the gas standing contract price by 1 per cent from the start of price deregulation.

• commenced strengthened national minimum Energy Performance Standards for televisions in April 2013.

• Published the 2011-12 Annual Energy Efficiency Report, which details the progress towards the South Australia’s Strategic Plan target for improving the energy efficiency of government buildings.

• completed a commonwealth government-funded energy efficiency program for commercial businesses in coober Pedy.

• Delivered the final tranche of solar hot-water rebates to low income households.

• maintained a low level of energy safety-related incidents and accidents.

• Progressed the review of the Electricity Act 1996 and Gas Act 1997 and released the Electricity (General) Regulations 2012.

• Progressed reviews of the Residential Energy Efficiency Scheme, SA Water’s heater installation requirements and the government’s Energy Efficiency Action Plan.

• Provided safety and technical regulation education through road shows, the publication of Regulation Roundup and presentations to the electricity and gas supply industry.

• Established a Riverland Small Business cluster in collaboration with the murraylands and Riverland Regional Development Associations to increase regional business competitiveness.

• Delivered small-business development workshops in collaboration with the motor Trade Association.


stRAtegic enAbleRs

five enablers are crucial to the development of the department and the successful delivery of its objectives. These are:

• a high-performing workforce and culture

• effective and trusted stakeholder engagement

• high-value data and research

• targeted marketing and communication

• streamlined processes, systems and practices.

chAnge stRAtegy

DmiTRE’s change strategy has supported the department’s formation and provided it with a clear strategic intent, building a culture that supports a values-based leadership approach and behaviours indicative of a positive workplace.

The strategy has ensured that DmiTRE is well placed to be a high-performing workplace that delivers results for South Australia – one in which staff members feel valued and supported, and through their participation have ownership of changes underway.

Every effort has been made to ensure that staff members have been involved in the change strategy and have been informed of change projects, activities and key milestones.

The five change project teams have produced the following organisational initiatives:

• implemented machinery of government changes (Project Team 1: machinery of government)

• developed DmiTRE Strategic Directions 2012-15 (Project Team 2: Strategic Directions)

• developed DmiTRE values framework (Project Team 3: Leadership, culture and values)

• developed DmiTRE Performance framework (Project Team 4: capability and Performance management)

• developed DmiTRE Project management framework (Project Team 5: maximising Organisational capability).

in 2013-14 the change strategy will focus on implementing organisational change and improvement initiatives across the agency, to build our culture and develop our organisational capability as a high-performing organisation.

DmitRe stAKeholDeR engAgement

A comprehensive stakeholder engagement framework has been developed by experienced staff from all divisions within DmiTRE. The process was inclusive and enabled feedback and comment on the final draft from all staff. case studies have been identified and reflect the engagement approach embraced by DmiTRE and the South Australian government with the ‘Better Together’ principles.

DmiTRE has incorporated the international Association of Public Participation framework, iAP2, which identifies various levels of stakeholder engagement. A core group of people within DmiTRE have recently undertaken the iAP2 training to build internal capability.

mAnufActuRing scoRecARD

A draft manufacturing Scorecard has been developed with the Advanced manufacturing council to measure and monitor industry progress in achieving Manufacturing Works objectives. The Scorecard measures activities across the value-chain, including output, employment and training, and research and development.

stAte bRAnDing

During 2012, Premier Jay Weatherill announced that a new South Australian brand would be developed on behalf of all South Australians. The Economic Development Board was responsible for leading the project and a group of communications, marketing and policy professionals from government and the private sector was brought together to develop the brand.

DmiTRE’s Strategic marketing and communications Division was a key contributor to the Project implementation Team, which was responsible for overall brand architecture and development and achieved the following key deliverables:

• engaging stakeholders and the community to garner support for the project

• undertaking stakeholder engagement ahead of the brand’s launch in November 2012


P 28

• building optimism for South Australians around the new brand by demonstrating its value in promoting the state’s core strengths and offerings

• ensuring the success and reputation of the project and the Premier, State government, stakeholders, and steering and project group member organisations in their involvement in the brand development and release.

oRgAnisAtionAl RevieWs

An organisational review of the manufacturing and innovation group was undertaken during 2012-13. This review identified the best structural alignment for the manufacturing, innovation, services and small-business functions to deliver the government priority Growing advanced manufacturing through the Manufacturing Works strategy. it also examined the skills and capabilities required to deliver the expected outcomes and build key stakeholder relationships. following the review, the manufacturing and innovation group was restructured to reflect the key recommendations.

An organisational review of the Strategy, People and culture group commenced in march 2013 to identify the best structural alignment of the group’s services and ensure they support the top-level agency priorities and maximise benefits across the agency. The review also considered the skills and capabilities DmiTRE requires to deliver its Strategic Directions 2012-2015 objectives. The recommendations were presented in may 2013 and an implementation working group began developing transition plans for execution from 2013-14.

chAnge@southAustRAliA

change@SouthAustralia was launched in June 2013 as the next expansive phase of the Public Sector Renewal Program. The values-based cultural change program is designed to create a dynamic and productive public sector with an emphasis on citizen-centric service delivery.

90-DAy chAnge PRoJectschange@SouthAustralia delivered the first round of 90-day change projects across several government agencies to demonstrate the values in action, with a specific focus on citizen benefits and engagement, service improvement, productivity and performance improvements. Projects undertaken included:

• the trial of an innovative ‘criteria-led discharge’ process at flinders medical centre

• defining the strategic vision of TAfE SA’s finance function, the organisational structure of the finance office and review of the office’s resources

• development of a business case for the trial of ante-natal care in cowandilla and Ocean view children’s centres

• establishment of the mining industry Participation Office to help South Australian manufacturing companies participate in the mining sector’s international supply chain

• a trial at Holden Hill magistrates court to fast-track the court process for selected offences.

Eight projects relating to human services, e-government and red-tape reduction have commenced as part of the second round of 90-day change projects.

otheR Achievements in 2012-13• Developed draft values and behaviours for the public sector followed by broad consultation with public sector employees.

• commenced trialling the High Performing Workplaces index in selected agencies.

• Began designing the South Australian change management Toolkit for use across the public sector in early 2013-14.

• Launched the website www.change.sa.gov.au in June 2013.



• Establish the mining and Petroleum Services centre of Excellence to foster and coordinate innovation and applied research initiatives.

• Establish comprehensive geoscientific data through sophisticated airborne surveying, drill core sampling and geochemistry analysis in the gawler craton region.

• Establish the Eyre Peninsula land-use program to help landholders engage with opportunities and partnerships emerging through investment in local exploration and mining.

• Deliver the PACE Exploration, PACE mining, PACE Energy and PACE global year four programs, to maintain private exploration expenditure above the SASP target of $200 million a year.

• Deliver the Woomera Prohibited Area and marree geoscience survey data to the exploration industry, aiming to reduce exploration risk and stimulate the next generation of world-class mine discoveries.

• Release new exploration drilling data resulting from the successful completion of the PACE Discovery Drilling 2012 collaborative drilling program.

• monitor progress and provide advice for projects outlined in the RESic Directions Statement and publish data on the state’s infrastructure on the online infrastructure channel.

• facilitate BHP Billiton’s commitment to spending about $650 million over the next four years for project re-scoping, including new technology studies and on-site works, and on related initiatives including the expansion of Aboriginal opportunities, investment in mining-services industry development and environmental initiatives.

• facilitate the implementation of the state’s support package to Nyrstar, in collaboration with the commonwealth government, including finalising regulatory requirements and development of the Targeted Lead Abatement Program, to enable Nyrstar to favourably consider the smelter transformation proposal.

• implement priority recommendations of the Roadmap for Unconventional Gas through establishing focused working groups.

• Develop leading-practice national regulatory frameworks for unconventional gas to leverage South Australian projects.

• Release a revised Energy Efficiency Action Plan for government buildings.

• complete the Residential Energy Efficiency Scheme review.

• Work with SA Power Networks on its demand management trials.

• Deliver services to help households manage energy costs and lower energy consumption.

• Support competitive energy prices through the delivery of the electricity Putting Consumers First national reform package.

• continue to implement Manufacturing Works, including Phase 2 of the South Australia Small Business innovation Research Pilot challenge with SA Water.

LOOKiNg AHEAD06

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06 LOOKiNg AHEAD

• Progress the Tonsley redevelopment, including completing the detailed design for Stage 2 and construction of the TAfE SA Sustainable industries Education centre.

• Work with gm Holden to identify opportunities to position the South Australian automotive sector within global supply chains and assist the diversification of suppliers into other sectors.

• complete the strategic roadmap for feasible and sustainable market opportunities for higher value-added forestry activities in the Limestone coast region, as part of the cellulose fibre chain initiative.

• finalise an industry-led information and communications Technology (icT) in mining Roadmap for a national icT hub to service resources and energy projects.

• Help manufacturers explore multiple pathways to innovation.

• Support South Australian manufacturing companies in meeting the supply demands of the state’s mining and energy projects through the mining industry Participation Office.

• Lead the development and release of a Small Business Statement for South Australia.

• Establish a small-business engagement program to support business capability development through industry associations and networks.

• Establish a red-tape reduction task force to identify opportunities to reduce government red tape for businesses.

• Provide case-management services to major investors.

• Progress engagement with china and india to leverage investment and trade priorities that emerge from the china and india engagement strategies.

• Build awareness of the state’s business environment and investment opportunities through the release of the South Australian Major Developments Directory 2013/14.

• continue interstate investment business awareness campaigns promoting South Australia’s economic climate.

• formalise and expand the account-management initiative to improve engagement and services to targeted businesses.

• Through RESic, provide strategic advice to government and industry on Regional mining infrastructure Plans’ objectives and deliver strategic initiatives as required by industry and government, and work with government and industry partners to support the development of infrastructure identified as integral to mining growth.

• change@SouthAustralia will deliver the second round of 90-day change projects, a values and Behaviours framework and implement the South Australian change management Toolkit.


ABLiS Australian Business Licence and information Service

ABS Australian Bureau of Statistics

Amc Advanced manufacturing council

AutocRc Automotive Australia 2020 cooperative Research centre

BLiS Business Licence and information Service

cO2/mWh carbon dioxide produced for every megawatt per hour of energy

cPH central Power House

DiAc Department of immigration and citizenship

DmiTRE Department for manufacturing, innovation, Trade, Resources and Energy

DPc Department of the Premier and cabinet

EDB Economic Development Board

fOi freedom of information

fTE(s) full-time equivalent(s)

gDP gross Domestic Product

gSP gross State Product

HPf High Performance framework

iAP2 international Association of Public Participation engagement framework

icNSA industry capability Network South Australia

icT information and communications Technology

mEPS minimum Energy Performance Standards

miPO mining industry Participation Office

moU memorandum of Understanding

PAcE Plan for Accelerating Exploration

PiRSA Primary industries and Regions SA

ABBREviATiONS07

P 32

RAES Remote Areas Electricity Supplies

RESic Resources Energy Sector infrastructure council

SAES South Australian Executive Service

SARig South Australian Resources information geoserver

SASP South Australia’s Strategic Plan

SEO Statement of Environmental Objectives

SiEc Sustainable industries Education centre

SmE(s) Small to medium Enterprise(s)

TAfE SA Technical and further Education, South Australia

07 ABBREviATiONS


APPENDicES08

8.1 RegionAl imPAct Assessment

The Regional impact Assessment Statement Policy is part of the South Australian government’s commitment to ensuring effective consultation and communication with rural and regional South Australian communities.

introduced on 1 July 2003, the policy requires all government departments, agencies and statutory authorities to prepare and publish Regional impact Assessment Statements (RiAS) before introducing significant changes to government services in rural and regional areas. RiAS policy is administered by PiRSA.

DmiTRE did not submit any RiAS during the 2012-13 financial year.

8.2 mAnAging RisK AnD fRAuD

following the formation of DmiTRE, a Risk management Policy and framework was developed and adopted in march 2012. An update of the divisional risk registers against the revised policy was completed in October 2012. Several divisions presented their high-level risk and associated controls to the Audit and Risk management committee during 2012-13.

in 2012-13 no incidences of fraud were identified.

8.3 legislAtion ADministeReD by DmitRe

following is a list of legislation that fell within ministers’ areas of responsibility during the year to 30 June 2013.

ministeR foR mAnufActuRing, innovAtion AnD tRADe ministeR foR smAll business

Industries Development Act 1941

Retail and Commercial Leases Act 1995

Small Business Commissioner Act 2011

ministeR foR mineRAl ResouRces AnD eneRgy

Australian Energy Market Commission Establishment Act 2004

Broken Hill Proprietary Company’s Indenture Act 1937

Cooper Basin (Ratification) Act 1975

Electricity Act 1996

Energy Products (Safety and Efficiency) Act 2000

Gas Act 1997

Mines and Works Inspection Act 1920

Mining Act 1971

National Electricity (South Australia) Act 1996

National Energy Retail Law (South Australia) Act 2011

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08 APPENDicES

8.4 Website listing

Website name Website Address (www.) Description

DmiTRE corporate website

www.dmitre.sa.gov.au information about DmiTRE’s priorities, support for industry and a comprehensive overview of the agency’s business units. includes access to the South Australian Resources information geoserver.

Business Licensing franchise

www.sa.gov.au/businessinfo ‘Ask Just Once’ online service collating business-related government services in a one-stop site.

Energy franchise www.sa.gov.au/energy Provides information on energy efficiency and affordability, and electricity and gas safety.

immigrationSA www.migration.sa.gov.au Promotes the state as an appealing destination to live and work and provides information about the state’s participation in the Department of immigration and citizenship’s immigration programs.

South Australia commercial Office Shanghai

www.sagov.org corporate website maintained by the South Australian government representative office in Shanghai.

industry capability Network SA

www.icnsa.org.au Promotes South Australian, Australian and New Zealand industry through import replacement and opportunities for participation in major projects.

SA Business Licence information Service

www.bli.net.au/sa Provides details of the licences that may be required to operate a business in South Australia, including Australian government and local government requirements.

Tonsley www.tonsley.com Promotes the Tonsley redevelopment, offering information on business opportunities, research, education and residential facilities at the site.

8.3 legislAtion ADministeReD by DmitRe cONTiNUED

National Gas (South Australia) Act 2008

Natural Gas Authority Act 1967

Offshore Minerals Act 2000

Opal Mining Act 1995

Petroleum (Submerged Lands) Act 1982

Petroleum and Geothermal Energy Act 2000

Roxby Downs (Indenture Ratification) Act 1982

Stony Point (Liquids Project) Ratification Act 1982

The Electricity Trust of South Australia (Torrens Island Power Station) Act 1962

Whyalla Steel Works Act 1958

ministeR foR WAteR AnD the RiveR muRRAy

Water Industry Act 2012


08 APPENDicES

8.5 ReconciliAtion stAtement

DmiTRE is a relatively new government agency, resulting from machinery of government changes. We have used this opportunity to develop a Reconciliation Action Plan that reflects our focus and unique position to deliver results. Over the past 12 months we have identified staff with expertise and skills in working with Aboriginal people externally; we have identified and engaged with Aboriginal staff and identified areas where we can make a difference, utilising our existing networks and relationships to achieve outcomes for the South Australian Aboriginal community. Our Reconciliation Action Plan has been developed and is now being provided to various stakeholder groups for feedback, prior to its launch and implementation.

DmitRe’s ReconciliAtion stAtement

DMITRE acknowledges the connections of Aboriginal people to Land and Sea Country, which has evolved over tens of thousands of years. We respect the cultural connections to country, heritage and cultural values that are enduring to Aboriginal wellbeing. We recognise the resilience of Aboriginal people and support communities’ aspirations for a positive future.

Our vision focuses on a globally competitive, prosperous, and sustainable South Australia. Our Reconciliation Action Plan outlines the way in which DMITRE intends to make positive contributions to achieve reconciliation in a practical manner.

We have developed our Reconciliation Action Plan by linking measurable targets to the state strategic priorities and our own DMITRE strategic directions, ensuring all DMITRE staff contribute to reconciliation in South Australia.

We recognise that to drive economic participation we must exhibit courageous, innovative and visionary leadership. We will work with other state and Commonwealth agencies to create opportunities for Aboriginal people for the future through various mechanisms, and utilise our extensive relationships and networks with industry to support and leverage opportunities.

We are committed to increasing Aboriginal participation in the economic opportunities that exist in South Australia and support the National Indigenous Reform Agreement. We will:

• engage appropriately and respectfully in developing a strategic approach to realising opportunity and identifying where we can assist and support economic development opportunities

• build our capability to engage, support and employ Aboriginal people within the vision of our agency

• encourage industries within South Australia to engage, support and employ Aboriginal people in the pursuit of strengthening our economy

• work collaboratively with state and Commonwealth agencies to identify opportunities and participate in supporting across-government initiatives to Aboriginal people

• provide the leadership, training and moral climate to eliminate racism in the workplace, and increase knowledge and understanding of our Reconciliation Action Plan

• commit to reconciliation, economic participation and sustainable opportunities.

8.6 mAnAgement of humAn ResouRces

8.6.1 cARing foR ouR WoRKfoRceDmiTRE maintains a safe and injury-free workplace for its staff through continuous review and improvement of work health and safety (WHS) and injury management systems. These systems align with South Australia’s Strategic Plan, the Premier’s Zero Harm vision and the business risk environment.

in 2012-13, a high-level commitment has continued to ensure a safe and healthy workplace. DmiTRE has a level 2 Workcover rating, which reflects the department’s commitment to and demonstration of a conforming system with continuous improvement across all aspects of the system.

governing arrangements are in place. These include three WHS site committees, led by a governing WHS and injury management committee, to oversee the strategic implementation and review of the WHS and injury management system. Key achievements have included development and alignment of new site hazard registers, undertaking WHS prevention and new legislation training for staff, and conducting injury management training for line managers.

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08 APPENDicES

table 1: Work health and safety prosecutions, notices and corrective action taken

Number of notifiable occurrences pursuant to WHS Act Part 3 0

Number of notices served pursuant to WHS Act Section 90, Section 191 & Section 195 (Provisional improvement, improvement and prohibition notices)

0

table 2: gross workers’ compensation expenditure

expenditure 2012-13 ($000)

2011-12 ($000)

variation ($000)

% change

income maintenance 85 39 +46 +218

Lump sum settlements Redemptions – Sect 42 0 5 -5 -100

Lump sum settlements Permanent disability – Sect 43 0 0 0 0

medical/hospital costs 50 18 +32 +277

Other 0 2 -2 -100

total claims expenditure 135 64 +71 +211

Explanatory Note: Table 2:

• The increase in claims expenditure for 2012-13 is a reflection of the injury severity and return to work rate for a very low number of claims.


08 APPENDicES

Explanatory Note: Table 3:

There was a low number of new DmiTRE claims for 2012-13 (target met) and no new psychological claims. given the low numbers, if the expected performance is not met in limited instances it can result in the public sector target not being met. The increased trend for income maintenance payments for 2012-13 injuries (at 12 months development) reflects injury severity and return to work rate.

* New workplace injury claims frequency rate is a measure of the number of injuries per million hours worked.

** Lost time injury frequency rate is a measure of the number of lost-time injuries per million hours worked. This frequency rate is calculated for benchmarking and is used by the Workcover corporation.

table 3: meeting safety Performance targets

base 2009-10

Performance: 12 months to end of June 2013*

final target

numbers or %

Actual notional quarterly target**

variation numbers or %

1. Workplace fatalities 0 0 0 0 [target met]

0

2. New workplace injury claims 5 4 4 0 [target met]

4

3. New workplace injury claims frequency rate*

6 5.64 5.11 0.53 [target not met]

4.51

4. Lost time injury frequency rate** 3.6 2.82 3.07 -0.25 [target exceeded]

2.71

5. New psychological injury frequency rate 2.4 0 2.06 -2.06 [target exceeded]

1.81

6. Rehabilitation and return to work:

6a Early assessment within 2 days 100% 75% 80% -5% [target not met]

80%

6b Early intervention within 5 days* 100% 100% 90% 10% [target exceeded]

90%

6c Days lost<=10days 50% 0% 60% -60% [target not met]

60%

7. claim determination:

7a claims determined for provisional in 7 calendar days

33.3% 50% 100% -50% [target not met]

100%

7b claims determined in 10 business days 60% 0% 75% -75% [target not met]

75%

7c claims still to be determined after 3 months

20% 16.7% 3% 13.67% [target not met]

3%

8. income maintenance payments for recent injuries:

8a 2011-12 injuries (at 24 months development)

$4 335 $17 179 -$12 844 [target exceeded]

8b 2012-13 injuries (at 12 months development)

$45 422 $2 249 $43 174 [target not met]

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08 APPENDicES

8.6.2 WoRKfoRce DiveRsityThe department’s diverse workforce profile and outlook, and the need to maintain close relationships with overseas trade offices and chambers of commerce, reinforce cultural diversity as an essential resource. This resource supports a dynamic, progressive and effective organisation and contributes to a strong economic community.

DmiTRE is continuing its focus on ensuring a diverse workforce with a number of strategies.

DmiTRE continued to support the SASP plan target 52 of ‘Have women comprising half of the public sector employees in the executive levels (including chief Executives) by 2014’ through the implementation of the Women in Leadership Strategy, which aims to:

• raise awareness and facilitate discussions of required cultural norms impacting on the achievement of the target

• complete workforce planning for executive-level roles

• provide support to teams to review work practices and develop guidelines and strategies for more collaborative practices and job structuring

• provide learning and development opportunities – such as access to the catalyst Women in Leadership program targeted at ASO4 and above for emerging and current leaders, to enable them to successfully move into senior positions.

flexible work practices support working parents with caring responsibilities beyond the traditional working hours of nine to five, monday to friday. Provisions such as working from home, purchased leave, compressed hours, access to family leave, part time and generous flexi-time provisions enable staff and managers to structure the work week to ensure that work-life-caring balance is achieved while agency service requirements are met.

DmiTRE is working to increase the number of Aboriginal people employed in DmiTRE, by participating in the Aboriginal traineeship program, in line with the SASP target to ‘increase the participation of Aboriginal people in the South Australian public sector, spread across all classifications and agencies, to 2% by 2014 and maintain or better those levels through to 2020.’

table 4: number of Aboriginal and/or torres strait islander employees as at 30 June 2013

male female total % of DmitRe strategic target %*

Aboriginal/Torres Strait islander 3 1 4 0.8 2.0

* Target from South Australia’s Strategic Plan.

* Benchmarks from ABS Publication Basic community Profile (SA) cat No. 2001.0.

table 5: Aboriginal and/or torres strait islander employees by salary bracket at 30 June 2013

salary bracket Aboriginal employees total employees % Aboriginal employees

$0 – $53 199 0 31 0

$53 200 – $67 699 2 103 1.94

$67 700 – $86 599 1 152 0.66

$86 600 – $109 299 1 158 0.63

$109 300+ 0 44 0

total 4 488 0.8

table 6: cultural and linguistic diversity as at 30 June 2013

male female total % of DmitRe % of sA community*

Number of employees born overseas 47 46 93 19.06 22.1

Number of employees who speak language(s) other than English at home

22 24 46 9.43 14.4


08 APPENDicES

8.6.3 PRomoting inDePenDenceDmiTRE has maintained its focus on promoting independence with the Disability Action Plan 2009-2014 being in effect during the reporting period. Progress has been achieved against the six Disability Action Plan outcomes:

• access to DmiTRE services and facilities

• information and communication about DmiTRE services and programs

• advice or service with awareness and understanding of issues and needs

• consultation opportunities concerning service delivery, complaints and grievance mechanism

• meet requirements of the Disability Discrimination Act 1992 and the Equal Employment Opportunity Act 1984

• meet SASP T50 People with Disabilities to ‘increase by 10 per cent the number of people with a disability employed in South Australia by 2020’.

The following initiatives specifically targeted towards the achievement of the six outcomes have been introduced:

• facilities have been designed to ensure access barriers are reduced

• all new staff are provided with a handout of correct ergonomic setup and may be offered an ergonomic assessment where all specialist equipment required is provided

• information is available in alternative formats where the client groups are considered to include people with disabilities or upon request

• disability awareness is incorporated into induction programs

• ethical conduct policy specifically caters for the non-discrimination of people with a disability and extensive complaints and grievance mechanisms are in place

• the Disability Action Plan was reviewed by an independent specialist to ensure compliance

• inclusive recruitment strategies, specifically ‘Employment of people with a disability – managers fact sheet’ and a co-operative agreement to refer recruitments to Disability WORKS Australia where possible.

male female total % of DmitRe

3 2 5 1

table 7: number of employees with ongoing disabilities requiring workplace adaptation

8.6.4 WoRKfoRce PRofiles

table 8: total number of employees (staff paid as at 30 June 2013)

table 9: employee numbers by gender

gender % Persons % ftes

male 55.7 57.3

female 44.3 42.7

Persons 488

fTEs 468.3

P 40

08 APPENDicES

table 10: status of employees in current positions

ftes ongoing short-term contract

long-term contract

other (casual)

total

male 205.0 15.9 45.8 1.5 268.2

female 158.6 23.6 17.9 0 200.1

total 363.6 39.5 63.7 1.5 468.3

Persons ongoing short-term contract

long-term contract

other (casual)

total

male 207 17 46 2 272

female 172 25 19 0 216

total 379 42 65 2 488

table 11: employees (persons) by salary bracket and gender

salary bracket male female total

$0 - $53 199 10 21 31

$53 200 - $67 699 39 64 103

$67 700 - $86 599 82 70 152

$86 600 - $109 299 109 49 158

$109 300+ 32 12 44

total 272 216 488

table 12: number of employees by age bracket by gender as at 30 June 2013

Age bracket male female total % of total % of south Australian workforce benchmark*

15–19 0 0 0 0 6.7

20–24 6 6 12 2.5 10.5

25–29 13 25 38 7.8 10.2

30–34 34 32 66 13.5 9.9

35–39 27 34 61 12.5 11.2

40–44 33 30 63 12.9 11.9

45–49 31 28 59 12.1 12.3

50–54 27 24 51 10.4 11.3

55–59 50 24 74 15.2 8.6

60–64 40 10 50 10.2 5.0

65+ 11 3 14 2.9 2.4

total 272 216 488 100 100

* Benchmark figure for 2007, ABS catalogue Number 6291


08 APPENDicES

classification ongoing contract tenured

contract untenured

total

male female male female male female male % female % total

SAES1 0 0 0 0 21 9 21 54 9 23.1 30

SAES2 0 0 0 0 6 1 6 15.4 1 2.5 7

EX–E 0 0 0 0 1 0 1 2.5 0 0 1

EX–f 0 0 0 0 1 0 1 2.5 0 0 1

total 0 0 0 0 29 10 29 74.4 10 25.6 39

table 13: number of executives by gender, classification and status

male female total

Purchased leave 4 5 9

flexi-time 198 176 374

compressed weeks 7 7 14

Part-time 13 43 56

Job share 0 9 9

Working from home 9 8 17

total 231 248 479

table 14: voluntary flexible working arrangements by gender

table 15: Average days leave per full time equivalent employee

table 16: employees separated and recruited in 2012-13

table 17: Documented review of individual performance development plans

2009-10 2010-11 2011-12 2012-13

Sick leave (paid and unpaid) 7.9 7.1 6.1 6.7

family carer’s leave 1.0 1.4 1.0 1.1

miscellaneous special leave 0.5 1.1 0.4 0.7

number of persons during the 2012-13 financial year no.

Number of persons separated from the agency 40

Number of persons recruited 109

Number of persons on leave without pay (at 30 June 2013) 19

Ps Act employees 2012-13

% performance reviewed within last 12 months 1.6

% with performance review older than 12 months 23.6

% with no documented performance review 74.8

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08 APPENDicES

table 19: Accredited training packages by classification

table 18: leadership and management training expenditure

classification Aso8 oPs5 oPs6 Po4 sAes tgo3 tgo5

Number of accredited training packages 1 1 1 3 1 2 2

training and Development total cost ($) % total salary expenditure

Training and development expenditure (including HEcS) 950 792 1.85

Leadership and management development expenditure 30 943 0.06

8.7 RePoRting AgAinst the cAReRs Recognition Act 2005

DmiTRE acknowledges and supports the important role carers play in the community.

To highlight this commitment, DmiTRE’s special leave procedure provides provisions for carers that include:

• staff being able to apply for special leave for individual needs or responsibilities (paid or unpaid), as well as 10 days’ family carer’s sick leave a year for general carer purposes

• staff who can demonstrate carer eligibility, as defined in the Carers Recognition Act 2005, being able to apply for up to 10 additional days a year from their own sick leave credits as carers’ charter leave.

8.8 RePoRting AgAinst the WhistlebloWeR PRotection Act 1993

The DmiTRE Ethical conduct policy, supported by a suite of preventative and corrective procedures, continues to provide guidance in relation to the Whistleblower Protection Act 1993 as follows:

• responsibilities of designated and trained Whistleblower Protection Officers

• responsibilities of managers and employees in the process

• safeguards, including confidentiality, to employees making allegations

• procedures relating to untrue allegations

• communication and notification protocols.

No whistleblower reports were made in 2012-13.

8.9 Asbestos mAnAgement

table 20: Annual Asbestos Risk Reduction Report 2012-13

category number of sites category Description interpretation one or more items at these sitesAt start

of yearAt end of year

1 0 0 Remove Should be removed promptly

2 1 1 Remove as soon as practicable Should be scheduled for removal at a practicable time

3 1 1 Use care during maintenance may need removal during maintenance works

4 0 0 monitor condition Has asbestos present. inspect according to legislation and policy

5 0 0 No asbestos identified/identified asbestos has been removed

All asbestos identified as per WH&S Regulations 2012 (chapter 8 - Asbestos) has been removed

6 12 12 further information required These sites not yet categorised or some asbestos items do not have recommended actions


08 APPENDicES

8.10 gReening of goveRnment oPeRAtions

DmiTRE has continued its commitment to the greening of government operations with the following programs continuing in the department:

• office recycling regime

• computers and photocopiers programmed for auto shutdown mode to save power

• printer settings defaulted to ‘draft’ quality settings and double-sided printing to save paper and toner within the conservatory

• promotion of bike-friendly facilities

• teleconferencing and video-conferencing encouraged as an alternative to travel

• maximising the purchase of recycled paper, environmentally responsible office products and services and high energy-rated electrical goods.

table 21: Performance against annual energy use targets

energy use (gJ)1, 4

ghg emissions (tonnes)2, 4

business measure 17

(mJ/m2/annum)

business measure 27

(mJ/fte/annum)

Base year 2000-013 18 871 3 651 2 192 55 342

2012-13 portfolio target5 14 679 2 840 1 705 43 049

2012-13 portfolio total 12 387 2 185 1 243 18 065

2014 portfolio target6 14 153 2 738 1 644 41 507

Notes:

1. Energy use data will be expressed in gigajoules (gJ) and is the sum of all fuel types used in each agency (for example, electricity, natural gas, petrol, etc.) for the period.

2. DmiTRE is pursuing a ‘triple bottom line’ reporting approach by including greenhouse gas Emissions (in cO2) as a means of quantifying a significant aspect of environmental performance. greenhouse gas coefficients differ for fuel types.

3. it is acknowledged that portfolio structures change over time. Therefore the DmiTRE baseline represents the structure of the portfolio in that given reporting period.

4. To obtain mega joules (mJ) figure multiply gJ by 1000.

8.9 Asbestos mAnAgement cONTiNUED

Definitions:

Category: The site performance score, determined by the worst item performance score at each site.

Number of Sites in category: A count of how many sites have the corresponding site performance score, with separate counts done at the start and the end of each year.

Category Description: indicates the recommended action corresponding to the worst item performance score (recorded in the asbestos register by a competent person, as per WH&S Regulations 2012 (chapter 8 - Asbestos).

Interpretation: A brief real-world example of what each category implies for a site.

ADDitionAl infoRmAtion

• Note that the reporting consists of assets transferred to DmiTRE from PiRSA on 1 January 2012 due to the machinery of government changes. PiRSA reported on these assets for 2011/12.

• Nil change since 2011/12.

P 44

08 APPENDicES

Notes continued:

5. The portfolio target for the current year is based on an agreed methodology and can be obtained through the portfolio Reference group member.

6. The portfolio target in 2014 should equal a 25 per cent energy efficiency improvement from the base year 2000-01.

7. Business measures are also known as normalisation factors. A key performance indicator for energy efficiency is energy intensity that is the energy consumed per unit of a given business measure. DmiTRE uses the number of employees (fTEs) and the square metres (m2) of floor area of buildings leased as business measures. The energy intensity therefore becomes the energy used per unit defined by the business measure such as mJ/ m2 and mJ/fTE.

8.11 uRbAn Design chARteR

The Urban Design charter promotes the benefits of good urban design, embeds the principles of good urban design into government processes and records the South Australian government’s commitment to good urban design. DmiTRE supports measures that ensure the state’s urban environment is internationally competitive, to attract and retain population and business investment.

in 2012-13 the department’s contribution to good urban design included its work in developing a mixed-use precinct for sustainable industries, research and education at Tonsley. The redeveloped site will demonstrate leading eco-industrial design principles, assisting industry (including through case management and other programs) to support employment growth in line with The 30-Year Plan for Greater Adelaide.

8.12 fReeDom of infoRmAtion

in accordance with Section 9(2) of the Freedom of Information Act 1991 (fOi Act), the following information is provided:

stRuctuRe AnD functions of the DePARtment

information concerning the structure and functions of DmiTRE is contained elsewhere in this report and is deemed to be consistent with the reporting requirements of Section 9(2) (a) of the fOi Act.

effect of the DePARtment’s functions on membeRs of the Public

The department has a major effect on the general public by creating jobs and wealth through advice and assistance.

hoW the Public mAy PARticiPAte in the DePARtment’s Policy DeveloPment

The public may participate in the department’s policy development through community consultations and membership of government boards, committees and working groups.

DescRiPtion of the KinDs of Documents helD by the DePARtment

Documents held by the department fall into the categories described below. While most documents are available in hard copy, some are only available electronically. The listing of these categories does not necessarily mean all documents are accessible in full or in part under the fOi Act.

files contain correspondence, memoranda and minutes on all aspects of the department’s operations, including:

• investment facilitation and trade development

• mineral and energy resources

• manufacturing, small business and services

• Energy regulation

• financial management

• Human resource management

• Administration


08 APPENDicES

8.13 consultAnts

consultancies below $10 000

no. consulting firm Purpose of consultancy $’000

17 sandra Jarvis AmyAc illua coober Pedy previous stones field survey

Artemis consulting Develop a sustainability framework and action plan for the Tonsley redevelopment project

in fusion consulting facilitation of a Targeted Lead Abatement Program workshop for the Port Pirie Smelter Transformation project

Rider levett bucknall sA Pty ltd

Prepare high level cost estimate for proposed building upgrade works at Tonsley

Australian services Roundtable

1. Advice on content of globalising Knowledge intensive Services forum and develop a presentation on "Securing Australia's place in the global Services Economy"

2. Prepare and present paper at the Knowledge intensive Services Strategy for growth 2012-14 forum

intelligent energy systems Provision of marginal generator data for state measures of emissions factors analysis

K Ashcroft consulting Planning and consultation for workshops relating to the People and culture Plan

Anu enterprises modelling and simulation - market research and industry consultation

calyptra Pty ltd Arboriculture work undertaken at Hewitt extraction site

sheoak consulting Undertake a risk management planning assessment for the Remote Areas Energy Supply program

bardavcol Pty ltd Professional services relating to earth works advice for the Brukunga mine

south Australian centre for economic studies

Provide assessment of potential economic impact of new major projects associated with the major Developments Directory

table 22: number and overall expenditure of consultancies engaged

contAct

Requests under the fOi Act for access to documents in the possession of the department should be directed in writing to:

The fOi Officer Department for manufacturing, innovation, Trade, Resources and Energy gPO Box 1264 ADELAiDE SA 5001

Telephone: +61 8 8303 2400

fees and charges may be applied in accordance with the Freedom of Information Act 1991.

numbeR of Requests mADe in 2012-13

The department received 104 applications in 2012-13, of these, 14 were granted in full, 2 granted in part, 17 refused (which include cases in which there may be no documents), 4 transferred to other agencies, 5 withdrawn and 78 continuing to be processed.

Of the 28 carried over from previous years, 4 were granted in full, 6 granted in part, 3 refused, 2 were withdrawn and 13 continue to be processed.

P 46

08 APPENDicES

consultancies below $10 000 continued


sustainable Know how Preparation of a business case for an 'innovation to commercialisation centre' at Tonsley and delivery of a schools in business workshop

mb huleatt Research and data compilation for the 2012-13 South Australian mineral Exploration Review

lamont connections Design of a guideline for Dryland farming Practices for South Australia

bRs - business Risk solutions Provision of collaborative partnership training, including facilitation and advice on Partnering Options

slR consulting Australia Pty ltd

On-site reviews & reporting on/or consulting for Tailing Storage facility Operations at Olympic Dam, Hillgrove copper, Terramin & murray Zircon mines

vAlue of consultAncies (beloW $10 000) 67

consultancies above $10 000 and below $50 000


35 KRg consultants facilitation of two sessions and advice on preparation of background materials relating to a renewed economic vision and strategy for a low carbon economy

cb Richard ellis Pty ltd Review and refinement of current draft master plan for Tonsley, in terms of its development feasibility and delivery strategy

michael R moore Review, assess and provide advice on lead health and environmental matters in relation to the Port Pirie Smelter transformation project

PKf organisational Development Pty ltd

Review of technical and administrative roles within geology and Exploration branch

metago environmental engineers

Onsite reviews and reporting of Tailing Storage facility operations at Olympic Dam, Hillgrove copper and Terramin mines

bDo Kendalls 1. consultation for the development of a desktop virtualisation and flexible workplace program report

2. Provision of taxation advice

Defence teaming centre Undertaking an Advanced manufacturing Aerospace Alliance feasibility study

ethos Australia Provision of consultancy services for Knowledge intensive Services Strategy for growth 2012-14 implementation Phase 2

PKf business Advisors Pty ltd Review of minerals and Energy Resources Accounts Receivable Systems

timothy horton Provision of advice relating to the promotion of an innovation Agenda

Adelaide Research & innovation investment trust

Developing industrial rejuvenation strategies for the automotive industry

exportia Australia consultancy Services for inbound Trade mission - Wine Buyers/importers

cRu international Analysis of key consumables in mining industry and recommendations for appropriate synergistic downstream opportunities to optimise investment attraction for South Australia


08 APPENDICES

Consultancies above $10 000 and below $50 000 continued

No. Consulting firm Purpose of consultancy $’000

Australian Clean Technologies Development of an Industrial Ecology Portal including workshop and finalisation of the design concept for web portal

Woods Bagot Concept design development to support targeted investment attraction for a proposed pod facility in the Tonsley main assembly building

Chamonix IT Review of the Compliance Management System including implementation of new functionality and the development of a suite of reports

Intec Group Review of the Petroleum Exploration and Production System application, with an emphasis on efficient and effective support and maintenance of the platform

Ernst & Young Provision of FBT Advice

Peter Jensen Pty Ltd Professional services in relation to Minerals and Energy Resources communication and engagement strategy

ACE Services Pty Ltd Consultative Services of Chair of South East Forestry Partnerships Program

Asia Australis Strategic Provision of Indonesian Scoping Study Brief into current trade with Indonesia and further opportunities

Eckermann & Associates Development of a Digital Economy Strategy for Tonsley that informs the whole site provision of ICT infrastructure

Solstice Development Services

Conduct an evaluation on the technical and financial feasibility of solar photo-voltaic embedded generation for five participating companies

Australian Information Industry Association

Develop a sustainability framework and actions plan for the Tonsley redevelopment project

Manufacturing Focus Provide a detailed research project & affinity diagram on agreed elements for additive manufacturing

Earth Systems Brukunga acid neutralisation plant carbide lime supply investigation

PPS Global Mapping the automotive supply chain customer base and determination of cross dependencies to other sectors

Giant 4 Solutions 1. Development of operational policy change management framework and associated tools and templates

2. General skilled and business migration criteria review update

Minex Consulting 1. Review of data provided by BHP Billiton in relation to Olympic Dam mine expansion

2. Study on assessing the economic mineral potential of the APY Land & Musgrave province

3. Presentation to Resource Industry Development Board on recent trends and challenges in mining and exploration and how these will play out for Australia

4. Study on uranium exploration; compilation of database of worldwide deposits and discoveries including Australia

Monica Redden Consultancy Review of Resources Information Branch in order to reassess and re-align branch hierarchy and tasks

O'Kane Consultants Closure planning background review and compilation of draft failure modes, effects and pathways for guidance for the Terramin Mine Site

P 48

08 APPENDicES

consultancies above $10 000 and below $50 000 continued


Professor Alfred huang Provide advice and assistance in regard to matters of trade, investment, migration and cultural exchange associated with china

ghD Pty ltd Preparation of the Resource Area management Plan

Kennedy company Assist with the development of a manufacturing Strategy for South Australia, as a framework for government to allocate its resources and to help build a portfolio of sustainable competitive advantages

2Xe Pty ltd 1. Assess the beneficial re-use of waste streams from South Australian foundries

2. Barossa valley Alternative Energy Study

vAlue of consultAncies (Above $10 000 and beloW $50 000) 800

consultancies above $50 000


18 norman Waterhouse South Australian government Strategic Advisor to china. Assist DmiTRE in the refinement and implementation of initiatives contained within the china strategy

Arup Pty ltd 1. Develop a brand strategy that is consistent with State government vision for Tonsley

2. Develop a Knowledge management Strategy and approach for the Tonsley redevelopment project

uRs Australia contaminated land investigation for phase three of the Brukunga project

Deloitte identification of industry Opportunities and capability mapping for the icT Roadmap for minerals and Energy Resources

fenix Performance solutions independent expert advice on prudential management matters in relation to the Port Pirie Smelter Transformation project

martins integrated Brand identity development and marketing advertising services for the Tonsley redevelopment project

PriceWaterhousecoopers 1. Perform an organisational review of manufacturing and innovation functions

2. facilitation of the mining industry Participation Office Advisory committee session to ensure a synergy exists between the mining industry and State government representative participants in respect to the future direction and focus of the committee in meeting the needs of the mining and unconventional gas resource sectors

cyprian D'souza Development and facilitation of change management workshops as part of Public Sector Renewal Program

curtin university Perform a regional synergies scoping project for the Upper Spencer gulf for waste and by-product exchanges

ferrier hodgson Professional services rendered in relation to advisory services for the Olympic Dam expansion project and the Port Pirie Smelter Transformation project


08 APPENDicES

consultancies above $50 000 continued


thinc Projects Australia Pty ltd

Project management methodology and project management services for the Tonsley redevelopment project

csiRo Develop an icT Road map for minerals and Energy Resources and in particular undertake a demand-side evaluation of the mining and energy sector drivers and demands from the perspective of the icT industry suppliers and partners

Allen consulting group Economic Development Plan and investment Attraction Strategy for the Tonsley redevelopment project

bRm hayes qc South Australian government Strategic Advisor to india. Assist DmiTRE in the final development, refinement and implementation of the india Trade, investment and migration Strategy

golder Associates groundwater and solute transport modelling for Brukunga mine and remediation program

intellectual capital services 1. Provision of mentoring and executive support on manufacturing matters to the senior executive group

2. Oversee the development of a comprehensive manufacturing strategy and establishment of the Advanced manufacturing council

sinclair Knight merz 1. Establish the load profile on the Dorrien connection point and examine alternative energy supply arrangements for the Barossa valley

2. Perform an alternative energy study at the Salisbury South industry Precinct

3. geotechnical, hydrogeological and geomorphological investigations, design services and associated works for the Brukunga mine remediation project

KPmg 1. Organisational review of the Strategy, People and culture group, including implementation of the report findings

2. Services to assist South Australian government to deliver phases one to three of the Public Sector Renewal Program

3. Review and implementation of the South Australia-india economic directions paper

vAlue of consultAncies (Above $50 000) 3 710

totAl vAlue of All consultAncies 4 577

P 50

08 APPENDicES

number of employees

Destination/s Reasons for travel total cost to agency

2 Shanghai, Jinan and Beijing (china)

Support the Premier to further strengthen ties with People’s Republic of china governments and current investors as well as build links with potential investors.

28 223

1 Kirovograd (Ukraine) Attend the joint international Atomic Energy Agency and European Organisation for Economic cooperation & Development – Nuclear Energy Agency Uranium group meeting.

8 893

1 Los Angeles, Nevada, Washington and Houston (USA); and Toronto (canada)

Accompany minister Koutsantonis on Economic Development mission. Promote South Australia as an investment destination, discuss further collaboration with Austrade and key investors and gain further insight of a utility scale renewable energy project (solar thermal plant).

25 686

2 Bengaluru, Bangalore (india) Attend the mining and Exploration convention and Trade Show, a key event of the federation of indian mineral industries, sponsored by the government of india, ministry of mines.

14 185

1 frankfurt (germany) and vancouver (canada)

visit industry sites to evaluate best available technology for lead smelting and its potential application to Nyrstar, Port Pirie.

22 759

1 calgary (canada) Attend the 2012 international Pipeline conference. 11 574

3 changchun, guangdong, Tianjin and Beijing (china)

To participate in the china mining convention 2012. 80 428

2 Pisa (italy) Through participation in Executive committee and Research Annex meetings of the international Energy Agency meetings under the auspices of the iEA’s geothermal implementing Agreement (giA) in Pisa, italy.

- Attract investment into South Australian geothermal energy projects; and

- Sustain competence to regulate geothermal energy projects in South Australia based on latest lessons learnt and technologies developed within the international geothermal sector.

12 553

1 Pisa (italy) and New york and Reno (USA)

Travelling from the (above described) iEA giA meetings, present opportunities for investment in petroleum in South Australia to goldman Sachs and JP morgan in New york.

Participate in the geothermal Resource council conference and Exhibition in Reno, Nevada to attract investment into geothermal projects in South Australia; and sustain competence to regulate geothermal projects based on latest lessons learnt and technologies developed within the international geothermal sector.

23 172

8.14 oveRseAs tRAvel

Details of overseas travel undertaken by DmiTRE staff during 2012-13 are listed below. costs include salaries of related employees, airfares, other transport and accommodation.

table 23: overseas travel


08 APPENDicES

number of employees


1 New Orleans (USA) Supporting Australian water industry in accessing opportunities in the USA. Provide industry capability Network water sector input at the Water Environment federation Technical Exhibition and conference.

10 888

1 New Delhi, Amritsar and mumbai (india)

Attend the Premier’s india mission. 19 819

1 London (UK); frankfurt and Stuttgart (germany); Espoo (finland) and Ontario (canada)

Attend meetings with world leading technical agencies regarding projects and opportunities under the manufacturing Strategy. meet with those involved in designing and delivering the strategy adopted by Ontario to increase local industry participation in mining projects, including the role and operation of industry clusters.

Review the Siemens crystal facility (London) and Hoechst Eco-industrial Park (frankfurt) to identify lessons applicable to the future development of Tonsley.

19 751

1 Tokyo (Japan) Attend the Japan-Australia investment Seminar and meet with the Japan Oil, gas and metals National corporation and Australian Embassy personnel.

8 552

1 manila (Philippines) invited by the international Energy Agency to present and participate at a wind energy development workshop.

2 818

3 Santiago (chile) and Rio de Janeiro (Brazil)

Attend meetings with minister Solminhac, ministry of mining; vale Exploration and the Brazilian Agency for mineral Technological Development. Supply chain meetings with consejo minero (chilean mining council) and with Sonami (chile’s National mining Society). visit various mine sites.

67 065

1 Orlando, florida (USA) Attend the interservice/industry Training, Simulation and Education conference and related industry visits.

8 834

3 Beijing, Jinan, Wuhan and Shanghai (china)

meet with the Shandong government and agree on the structure and objectives for the Shandong-South Australia Economic forum to be held in Adelaide late 2013. Plan for the Premier’s scheduled Shandong visit in April 2013.

follow-up meetings held in Beijing with key chinese entities visited by the Premier early 2012.

42 281

1 mumbai, Ahmedhabad and New Delhi (india)

Attend the Premier’s india mission. following up from the Premier’s previous visit to india in November 2012, to continue relationships with potential investors and promote investment opportunities.

17 833

1 Houston and Denver (USA) Promote 2012 cooper and Otway basins acreage release through ‘Team Australia’ booth at NAPE2013 (North American Petroleum Expo), Houston.

meet with Houston-based explorers to attract investment.

meet with US geological Survey in Denver a part of a collaborative federal/ SA/ QLD government assessment of the unconventional gas resources of the cooper Basin.

11 796

table 22: overseas travel continued

P 52

08 APPENDicES

number of employees


1 Houston and Denver (USA) and London (UK)

Travelling from the (above described) NAPE2013 and meetings in USA.

Attract investment through participation in the Prospect and Property Expo (APPEX2013) in London.

meet with BP’s Bight Basin team to better understand exploration targets offshore South Australia.

conduct a business seminar at Australia House to attract investment into South Australia.

meet with UK Department of Environment and Energy to discuss unconventional gas regulation and investment frameworks.

19 041

2 vancouver (canada) Attend the 2013 vancouver mineral Exploration Round Up conference.

15 929

3 Stanford, california (USA) Participate in the Stanford geothermal Workshop.

Attract investment in geothermal energy projects in South Australia.

Sustain capabilities to regulate geothermal projects based on latest lessons learnt and technologies developed within the international geothermal sector.

19 504

1 Santiago (chile) and Lima (Peru)

To participate on a two week field-based course in the Andes covering the major ore deposits of South America in preparation for exchange with the chilean government focusing on Porphyry copper systems and exploration.

9 855

4 Toronto (canada) Promote PACE 2020: Plan for Accelerating Exploration at the Prospect and Developers Association of canada 2013 and associated events. Attend the Australia minerals Annual marketing meeting.

70 543

2 Hong Kong, Beijing and Shanghai (china)

Attend the Hong Kong mines and money event. facilitate business relationships with potential chinese investors, ahead of the Premiers visit in April 2013.

39 016

8 Beijing, Jinan and Qingdao (china)

facilitate the official visit and program for the delegation of 62 government Officials, South Australian companies and industry Associations supporting the Premier of South Australia and the minister for mineral Resources and Energy in their visit to china. The program focussed on furthering the State’s economic relations with china, in particular, Shandong, for investment and trade outcomes and building awareness of the State’s china Strategy.

94 503

1 Doha (Qatar); Abu Dhabi and Dubai (UAE)

Accompany minister Kenyon, ministerial Staff and member of the Opposition to promote South Australia as an investment destination, encourage entities to utilise South Australian skills and expertise in projects, gain further understanding of a world leading sustainable precinct and discuss and promote bilateral trade and support Business SA trade mission.

33 380



table 24: Accounts Payment Performance (year to 30 June 2013)

no of accounts paid

% of accounts paid

value in $A of accounts paid

% of accounts paid (value)

Paid by due date 13 941 94.75 267 456 399.76 91.74

Paid within 30 days of due date 571 3.96 9 433 501.38 5.02

Paid more than 30 days from due date 182 1.30 4 670 298.33 2.62

8.15 Accounts PAyment PeRfoRmAnce

8.16 boARDs AnD committees

DmiTRE supports the following boards and committees:

Advanced manufacturing council

Business Development council

mining industry Participation Office Advisory council

South Australia-china Advisory committee

South Australia-india Advisory committee

Board of Examiners for mine managers

Brukunga minesite Remediation Board

Electrical Technical Advisory committee

The Energy consumers council

- The Energy consumers council Special Needs Sub-committee

- The Energy consumers council Demand Side management Sub-committee

Extractive Areas Rehabilitation fund Project Assessment Panel

gas Technical Advisory committee

number of employees


1 cuernavaca (mexico) Represent Australia in the international Energy Agency geothermal implementing Agreement Executive committee and Annex meetings.

9 256

1 Pittsburgh (USA) market upstream petroleum exploration opportunities in South Australia at the American Association of Petroleum geologists petroleum geoscience and technology conference.

Present a paper “Organic Rich Shale in Permian fjords – A Potential Resource Play in the Arckaringa Basin, South Australia” to specifically promote the prospectivity of the Arckaringa Basin.

8 464


08 APPENDicES

P 54

8.16 boARDs AnD committees cONTiNUED

Olympic Dam Social management Partnership

Resources and Energy Sector infrastructure council

Resources industry Development Board

Roxby Downs Advisory Reference group

invest in South Australia Advisory Board

consumer Advisory committee

Electricity Act 1996 Assessors Panel

Gas Act 1997 Assessors Panel

Powerline Environment committee

industries Development committee (Parliamentary committee)

08 APPENDicES


inDePenDent AuDit RePoRt

stAtement of comPRehensive income foR the yeAR enDeD 30 June 2013

stAtement of finAnciAl Position As At 30 June 2013

stAtement of chAnges in equity foR the yeAR enDeD 30 June 2013

stAtement of cAsh floWs foR the yeAR enDeD 30 June 2013

DisAggRegAteD DisclosuRes – eXPenses AnD income foR the yeAR enDeD 30 June 2013

DisAggRegAteD DisclosuRes - Assets AnD liAbilities

stAtement of ADministeReD comPRehensive income foR the PeRioD enDeD 30 June 2013

stAtement of ADministeReD finAnciAl Position As At 30 June 2013

stAtement of ADministeReD chAnges in equity foR the PeRioD enDeD 30 June 2013

stAtement of ADministeReD cAsh floWs foR the PeRioD enDeD 30 June 2013 scheDule of eXPenses AnD income AttRibutAble to ADministeReD Activities foR the PeRioD enDeD 30 June 2013

notes to AnD foRming PARt of the finAnciAl stAtements

fiNANciAL STATEmENTS09

P 56

09 fiNANciAL STATEmENTS

P 58


P 60



Note No.

2013 $’000

2012 $’000

expenses

Employee benefit expenses 5 52 263 33 487 Supplies and services 6 51 173 30 488 Depreciation and amortisation expenses 7 2 290 1 614 grants and subsidies 8 21 795 22 983 Other expenses 9 8 144 Net loss from disposal of non-current assets 17 3 -

total expenses 127 532 88 716

income

Revenues from fees and charges 12 17 421 6 141 Technical regulation 13 6 277 3 097 Sale of electricity 14 3 278 2 535 commonwealth revenues 15 1 116 1 057 interest revenues 16 15 7 Other revenues 18 6 995 1 926

total income 35 102 14 763

net cost of providing services (92 430) (73 953)

Revenues from / payments to sA government

Revenues from SA government 19 91 985 72 607 Payments to SA government 19 - (5 054)

net result (445) (6 400)

total comprehensive result (445) (6 400)

the net result and comprehensive result are attributable to the sA government as owner.

The above statement should be read in conjunction with the accompanying notes.


stAtement of comPRehensive income

foR the yeAR enDeD 30 June 2013

P 62

stAtement of finAnciAl Position

As At 30 June 2013

Note No.

2013 $’000

2012 $’000

current assets

cash 20 21 379 25 239 Receivables 21 6 456 11 596 financial assistance debtors 22 510 24

total current assets 28 345 36 859

non-current assets

financial assistance debtors 22 453 954 Property, plant and equipment 23 30 661 32 090

total non-current assets 31 114 33 044

total assets 59 459 69 903

current liabilities

Payables 24 11 702 24 928 Employee benefits 25 6 822 5 320 Provisions 26 139 97 Other liabilities 27 8 294 6 725

total current liabilities 26 957 37 070

non-current liabilities

Payables 24 822 807 Employee benefits 25 8 903 8 705 Provisions 26 475 339 Other liabilities 27 1 297 1 537

total non-current liabilities 11 497 11 388

total liabilities 38 454 48 458

net assets 21 005 21 445

equity

Retained earnings 17 125 17 570 Asset revaluation surplus 3 880 3 875

total equity 21 005 21 445

the total equity is attributable to the sA government as owner.

Unrecognised contractual commitments 28contingent assets and liabilities 29




Note No.

Asset Revaluation

surplus $’000

Retained earnings

$’000

total$’000

balance at 30 June 2011 44 9 690 9 734

net result for 2011-12 - (6 400) (6 400)

total comprehensive result for 2011-12 - (6 400) (6 400)

Net assets transferred as a result of an administrative restructure

3 831 13 910 17 741

balance at 30 June 2012 3 875 17 200 21 075

Prior period adjustment 2 (l) - 370 370

Restated balance at 30 June 2012 3 875 17 570 21 445

net result for 2012-13 - (445) (445)

total comprehensive result for 2012-13 - (445) (445)

Revaluation of plant and equipment 23 5 - 5

balance at 30 June 2013 3 880 17 125 21 005


All changes in equity are attributable to the sA government as owner.



stAtement of chAnges in equity

P 64

Note No.

2013inflows (outflows)

$’000

2012 inflows (Outflows)

$’000

cash flows from operating activities cash outflows

Employee benefit payments (62 588) (18 553)Payments for supplies and services (66 838) (18 383)gST paid to the ATO (602) (141)Payments for security deposits (1 151) - Payments for grants and subsidies (24 424) (22 244)Payments of financial assistance - (79)Payments for paid parental leave scheme (44) (21)

cash used in operations (155 647) (59 421)

cash inflows

fees and charges 24 114 - Receipts from technical regulation 7 993 1 554 Receipts from sale of electricity 5 154 - commonwealth revenues 1 068 1 351 interest received 13 7 gST recovered from the ATO 6 519 2 895 Receipts for security deposits 7 169 - Receipts from paid parental leave scheme 44 21 Receipts from restructure activities 2 130 - Proceeds from the repayment of financial assistance 22 - Other receipts 6 495 286

cash generated from operations 60 721 6 114

cash flows from sA government

Receipts from SA government 91 985 72 607 Payments to SA government - (5 054)

cash generated from sA government 91 985 67 553

net cash (used in) / provided by operating activities 32 (2 941) 14 246

cash flows from investing activities cash outflows

Purchase of property, plant and equipment (1 044) (439)

cash used in investing activities (1 044) (439)

cash inflows

Proceeds from sale of property, plant and equipment 125 -

cash generated from investing activities 125 -

net cash used in investing activities (919) (439)

net (decrease) / increase in cash (3 860) 13 807

cash as at 1 July 25 239 11 432

cash as 30 June 20, 32 21 379 25 239


The above statement should be read in conjunction with the accompanying notes. Due to machinery of government changes, some cash flows did not occur until 2012-13, hence comparatives for these items show as nil.


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5 4

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6 5

52

1 0

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lies

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1 1

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6 83

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7

236

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53

1 0

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1 4

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11

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93

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6 2

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3 2

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6 2

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3 2

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15

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35

102

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91

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91

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Prop

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37

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86

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102

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27

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1 9

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As A

t 30

June

201

3


DisA

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sset

s An

D li

Abil

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P 68

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5 0

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454

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458

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1 9

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14

130

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445

As A

t 30

June

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3

Ass

ets

and

liabi

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s ha

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nly

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here

this

can

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done

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bly.

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re th

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DisA

ggRe

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s An

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Abil

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s cO

NTiN

UED


stAtement of ADministeReD finAnciAl Position

2013 $’000

01.01.12 to 30.06.12

$’000

expenses

Employee benefit expenses 281 177 Supplies and services - 764 grants and subsidies 973 155 Payment of royalties to the consolidated Account 188 737 92 899 Other 4 215 1 120

total expenses 194 206 95 115

income

Revenues from SA government 1 169 1 029 commonwealth revenues - 413 Royalties 188 737 92 899 Other 3 474 1 646

total income 193 380 95 987

net result (826) 872

total comprehensive result (826) 872

As At 30 June 2013

2013 $’000

2012 $’000

current assets

cash 43 1 098 Receivables 23 218 23 302

total current assets 23 261 24 400

total assets 23 261 24 400

current liabilities

Payables 22 972 23 285

total current liabilities 22 972 23 285

total liabilities 22 972 23 285

net assets 289 1 115

equity

Retained earnings 289 1 115

total equity 289 1 115


stAtement of ADministeReD comPRehensive income

foR the PeRioD enDeD 30 June 2013

P 70



stAtement of ADministeReD chAnges in equity

total $’000

changes in equity

Balance at 1 January 2012 - Total recognised income and expense for period 872 Net assets transferred in 243

balance at 30 June 2012 1 115

net result for 2012-13 (826)

total comprehensive result for 2012-13 (826)

balance at 30 June 2013 289

2013inflows (outflows)

$’000

01.01.12 to 30.06.12

inflows (Outflows)$’000

cash flows from operating activities cash outflows

Employee benefit payments (281) (177)Payments for supplies and services - (764)Payments for grants and subsidies (973) - Payment of royalties to consolidated Account (189 073) - Other payments (4 258) (1 120)

total cash outflows (194 585) (2 061)

cash inflows

Revenues from SA government 1 169 1 029 Other receipts 3 290 1 876 Royalties receipts 189 071 - Receipts on restructure - 254

total cash inflows 193 530 3 159

net cash (used in) / provided by operating activities (1 055) 1 098

Net (decrease) / increase in cash held (1 055) 1 098 cash as at 1 July 1 098 -

cash as at 30 June 43 1 098


stAtement of ADministeReD cAsh floWs


smal

l bu

sine

ss

com

mis

sion

er

min

iste

r's

sala

ryen

ergy

Po

licy

and

Regu

latio

n

Roya

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e Ad

min

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title

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2013

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2013

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expe

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ses

- -

281

1

77

- -

- -

- -

- -

281

1

77

Supp

lies

and

serv

ices

- 7

64

- -

- -

- -

- -

- -

- 7

64

gran

ts a

nd s

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dies

973

-

- -

- 1

55

- -

- -

- -

973

1

55

Paym

ent o

f roy

altie

s to

the

cons

olid

ated

Acc

ount

- -

- -

- -

188

737

9

2 89

9 -

- -

- 1

88 7

37

92

899

Othe

r -

- -

- -

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- 8

-

4 2

07

1 1

20

4 2

15

1 1

20

tota

l exp

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s 9

73

764

2

81

177

-

155

1

88 7

37

92

899

8

- 4

207

1

120

1

94 2

06

95

115

inco

me

Reve

nues

from

SA

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rnm

ent

973

7

64

196

2

09

- -

- -

- -

- 5

6 1

169

1

029

co

mm

onw

ealth

reve

nues

- -

- -

- 4

13

- -

- -

- -

- 4

13

Roya

lties

- -

- -

- -

188

737

9

2 89

9 -

- -

- 1

88 7

37

92

899

Othe

r -

- -

- -

- -

- 8

1

6 3

466

1

630

3

474

1

646

tota

l inc

ome

973

7

64

196

2

09

- 4

13

188

737

9

2 89

9 8

1

6 3

466

1

686

1

93 3

80

95

987

net R

esul

t -

- (8

5) 3

2 -

258

-

- -

16

(741

) 5

66

(826

) 8

72

foR

the

PeRi

oD e

nDeD

30

June

201

3

sche

Dule

of

eXPe

nses

AnD

inco

me

AttR

ibut

Able

to

ADm

inis

teRe

D Ac

tivi

ties


P 72


smAll business commissioneR

Appropriation funding for the Office of the Small Business commissioner is paid by the Department of Treasury and finance to DmiTRE. The funding is then provided to the Office of the Small Business commissioner which is a separate reporting entity. The amounts transferred to the Office of the Small Business commissioner represent appropriation funding only and not the entire budget for operations.

eneRgy, Policy AnD RegulAtion

The Department provides policy advice on energy issues, energy program delivery, and regulatory services for the competitive, sustainable, safe and reliable supply and use of energy, for the benefit of the South Australian community. This function comprises the Renewable Remote Power generation Program and Natural gas Authority of SA (NgASA). This program ended in 2011-12.

RoyAlties

The Department receives royalties levied on minerals and petroleum production on behalf of the State government. Royalty receipts are collected pursuant to the Roxby Downs (Indenture Ratification) Act 1982, Whyalla Steel Works Act 1958, Mining Act 1971 and the Petroleum & Geothermal Energy Act 2000. Royalty receipts are returned to the consolidated Account in the month following collection.

nAtive title AgReement

The Department collects revenue via a levy equivalent to 1% of the total royalty payable for relevant royalty payers. This is offset by payments made to two Aboriginal councils in the APy Lands.

scheDule of eXPenses AnD income AttRibutAble to ADministeReD Activities cONTiNUED



Objectives of the Department for manufacturing, innovation, Trade, Resources and Energy Note 1 Summary of significant accounting policies Note 2 New and revised accounting standards and policies Note 3 Activities of the Department Note 4

eXPense notes

Employee benefit expenses Note 5 Remuneration of employees and TvSP disclosure Note 5 Supplies and services Note 6 consultancy disclosure Note 6 Depreciation and amortisation expenses Note 7 grants and subsidies Note 8 Other expenses Note 9 Auditor's remuneration Note 10 Overseas Representative Offices Note 11 Payments to SA government Note 19

income notes

Revenues from fees and charges Note 12 Technical regulation Note 13 Sale of electricity Note 14 commonwealth revenues Note 15 interest revenues Note 16 Net loss from the disposal of non-current assets Note 17 Other revenues Note 18 Revenues from SA government Note 19

Asset notes

cash Note 20 Receivables Note 21 financial assistance debtors Note 22 Property, plant and equipment Note 23

liAbility notes

Payables Note 24 Employee benefits Note 25 Provisions Note 26 Other liabilities Note 27

otheR notes

Unrecognised contractual commitments Note 28 contingent assets and liabilities Note 29 Transferred functions Note 30 Remuneration of board and committee members Note 31 cash flow reconciliation Note 32 Trust funds Note 33 Events after the reporting period Note 34 financial instruments / financial risk management Note 35


note inDeX

P 74

obJectives of the DePARtment foR mAnufActuRing, innovAtion, tRADe, ResouRces AnD eneRgy

summARy of significAnt Accounting Policies

note 1

note 2

The Department for manufacturing, innovation, Trade, Resources and Energy (DmiTRE) has a vision of a globally competitive, prosperous and sustainable South Australia. To create and capture value for South Australia DmiTRE is focused on delivering results through:

- working with a wide range of stakeholders such as manufacturers, industry associations, unions, research entities and other government agencies to support and facilitate the growth of high value, advanced manufacturing in South Australia;

- supporting the mineral and energy resources sectors to deliver outcomes that continue to build South Australia’s international profile and strengthen the State’s economic prosperity through sustainable development and best practice regulation;

- providing advice on energy frameworks and programs that seek to deliver a competitive, sustainable, safe, reliable and efficient supply and use of energy, for the benefit of the South Australian community;

- attracting investment and economic development to the state through promoting South Australia and its investment opportunities to international and domestic capital markets, and to influence the way government approaches investors;

- providing specialised facilitation of resource projects that are significant in terms of size and complexity, guiding proposed projects through government’s policy, planning, technical, legal, financial and environmental requirements to enable approval and implementation; and

- supporting a values-based cultural change program, designed to create a dynamic and productive public sector with an emphasis on citizen-centric service delivery to achieve greater productivity, innovation and collaboration.

its strategic objectives are to:

- leverage the value from our major projects for all South Australians;

- attract and facilitate targeted business and infrastructure investment;

- enable accessible and sustainable energy and resources;

- drive the transition to high-value innovative manufacturing; and

- deliver and advocate trusted regulation and targeted programs.

A) stAtement of comPliAnce

The Department has prepared these statements in compliance with section 23 of the Public Finance and Audit Act 1987.

The financial statements are general purpose financial statements. The accounts have been prepared in accordance with relevant Australian Accounting Standards and comply with Treasurer's instructions and Accounting Policy Statements promulgated under the provisions of the Public Finance and Audit Act 1987.

The Department has applied Australian Accounting Standards that are applicable to not-for-profit entities, as the Department is a not-for-profit entity.

Australian Accounting Standards and interpretations that have been recently issued or amended but are not yet effective have not been adopted by the Department for the reporting period ending 30 June 2013. Refer to Note 3.

b) bAsis of PRePARAtion

The preparation of the financial statements requires:

- the use of certain accounting estimates and requires management to exercise its judgement in the process of applying the Department's accounting policies. The areas involving a higher degree of judgement or where assumptions and estimates are significant to the financial statements are outlined in the applicable notes;

- accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events are reported; and


notes to AnD foRming PARt of the finAnciAl stAtements


summARy of significAnt Accounting Policies cONTiNUED

note 2

- compliance with Accounting Policy Statements issued pursuant to section 41 of the Public Finance and Audit Act 1987. in the interest of public accountability and transparency the accounting policy statements require the following note disclosures, which have been included in this financial report:

a. revenues, expenses, financial assets and liabilities where the counterparty / transaction is with an entity within the SA government as at reporting date, classified according to their nature. The threshold of $100 000 for separate identification of these items has not been applied;

b. expenses incurred as a result of engaging consultants (as reported in the Statement of comprehensive income);

c. employee targeted voluntary separation package information;

d. employees whose normal remuneration is equal or greater than the base executive remuneration level (within $10 000 bandwidths) and the aggregate of the remuneration paid or payable or otherwise made available, directly or indirectly by the entity to those employees; and

e. board / committee member and remuneration information, where a board / committee member is entitled to receive income from membership other than a direct out-of-pocket reimbursement.

The Department's Statement of comprehensive income, Statement of financial Position and Statement of changes in Equity have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets that were valued in accordance with the valuation policy applicable.

The Statement of cash flows has been prepared on a cash basis.

The financial statements have been prepared based on a twelve month period and presented in Australian currency.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2013 and the comparative information presented.

c) RePoRting entity

The Department is a government Department of the State of South Australia, established pursuant to the Public Sector Act 2009. The Department is an administrative unit acting on behalf of the crown.

The financial statements and accompanying notes include all the controlled activities of the Department. As administered items are insignificant (on a net basis) in relation to the Department’s overall financial performance and position, they are disclosed as a schedule of administered items at the end of the controlled general Purpose financial Statements. Except as otherwise disclosed, administered items are accounted for on the same basis and using the same accounting policies as for departmental items.

D) tRAnsfeRReD functions

The administrative and operational resources associated with technical regulation of plumbing were transferred from the South Australian Water corporation (SA Water) to the Office of the Technical Regulator, within the Department for manufacturing, innovation, Trade, Resources and Energy (DmiTRE). Refer to Note 30.

The Water Industry Act 2012 (the Act) was passed on 5 April 2012 and received Royal Assent on 19 April 2012. The Act was brought into limited operation on 1 July 2012, including those provisions relating to the appointment of the Technical Regulator, and commenced in full on 1 January 2013.

e) comPARAtive infoRmAtion

Due to machinery of government changes that occurred in 2011-12, there were a number of new functions that transferred into the newly formed DmiTRE, effective 1 January 2012. consequently, the 2011-12 figures represent only half year results of the transferred functions.

The presentation and classification of items in the financial statements are consistent with prior periods except where specific accounting standards and / or accounting policy statements has required a change.

Where presentation or classification of items in the financial statements have been amended, comparative figures have been adjusted to conform to changes in presentation or classification in these financial statements unless impracticable.

The restated comparative amounts do not replace the original financial statements for the preceding period.

f) RounDing

All amounts in the financial statements and accompanying notes have been rounded to the nearest thousand dollars ($’000).


P 76


note 2

g) tAXAtion

The Department is not subject to income tax. The Department is liable for payroll tax, fringe benefits tax (fBT), goods and services tax (gST), emergency services levy, land tax equivalents and local government rate equivalents.

income, expenses and assets are recognised net of the amount of gST except:

- when the gST incurred on a purchase of goods or services is not recoverable from the Australian Taxation Office, in which case the gST is recognised as part of the cost of acquisition of the asset or as part of the expense item applicable; and

- receivables and payables, which are stated with the amount of gST included.

The net amount of gST recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables in the Statement of financial Position.

cash flows are included in the Statement of cash flows on a gross basis and the gST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the Australian Taxation Office is classified as part of operating cash flows.

Unrecognised contractual commitments and contingencies are disclosed net of the amount of gST recoverable from, or payable to the Australian Taxation Office. if gST is not payable to, or recoverable from the Australian Taxation Office, the commitments and contingencies are disclosed on a gross basis.

h) events AfteR the RePoRting PeRioD

Adjustments are made to amounts recognised in the financial statements, where an event occurs after 30 June and before the date the financial statements are authorised for issue, where those events provide information about conditions that existed at 30 June.

Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years. Refer to Note 34.

i) income

income is recognised to the extent that it is probable that the flow of economic benefits to the Department will occur and can be reliably measured.

income has been aggregated according to its nature and has not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

The following are specific recognition criteria:

Revenues from SA Government

Appropriations from program funding are recognised as revenues when the Department obtains control over the funding. control over appropriations is normally obtained upon receipt.

Fees and Charges

fees and charges are recognised as revenues upon invoice and mainly relate to mining and petroleum application fees, rentals and licences.

Commonwealth Revenues

commonwealth grants are recognised as revenues when the Department obtains control over the funding. control over grants is normally obtained upon receipt.

Recoveries

The Department recognises other revenues from the partial and full recovery of costs associated with the delivery of programs.

Land Sales

On 10 may 2004, cabinet approved the transfer of land at Edinburgh Parks (Stages 0, 1 and 3) to the Urban Renewal Authority, effective from 1 July 2004. in accordance with the contractual agreement, the Department is entitled to receive 25 percent of the net profit arising from the sale of Stage 0 and the net proceeds of Stages 1 and 3 sales. All income is recognised upon sale of land.




note 2

Administered - royalty receipts

Royalty revenue relates to minerals and petroleum production and is collected pursuant to the Roxby Downs (Indenture Ratification) Act 1982, Whyalla Steel Works Act 1958, Mining Act 1971 and the Petroleum & Geothermal Energy Act 2000. Royalty revenue is recognised as income when received.

Net gain on non-current assets

income from the disposal of non-current assets is recognised when the control of the asset has passed to the buyer and has been determined by comparing proceeds with the carrying amount. When revalued assets are sold, the revaluation surplus is transferred to retained earnings.

Any gain / (loss) on disposal of non-current assets is recognised at the date control of the asset is passed to the buyer and is determined after deduction from proceeds of the asset at that time.

J) eXPenses

Expenses are recognised to the extent that it is probable that the flow of economic benefits from the Department will occur and can be reliably measured.

Expenses have been aggregated according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

The following are specific recognition criteria:

Employee benefit expenses

Employee benefit expenses include all costs related to employment including wages and salaries, non-monetary benefits and leave entitlements. These are recognised when incurred.

Superannuation

The amount charged to the Statement of comprehensive income represents the contributions made by the Department to the superannuation plan in respect of current services of current departmental staff. The Department of Treasury and finance centrally recognises the superannuation liability in the whole of government financial statements.

Depreciation and amortisation

All non-current assets, having a limited useful life, are systematically depreciated / amortised over their useful lives in a manner that reflects the consumption of their service potential. Amortisation is used in relation to intangible assets such as software, while depreciation is applied to tangible assets such as property, plant and equipment.

Works of art controlled by the Department have very long and indeterminate useful lives. Their service potential has not, in any material sense been consumed during the reporting period. consequently, no depreciation has been recognised.

Land and improvements are not depreciated.

Assets' residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate, on an annual basis.

changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for prospectively by changing the time period or method, as appropriate, which is a change in accounting estimate.

The value of leasehold improvements is amortised over the estimated useful life of each improvement, or the unexpired period of the relevant lease, whichever is shorter.

Depreciation / amortisation is calculated on a straight line basis over the estimated useful life of the following classes of assets as follows:

class of Asset useful life (years)

Leasehold improvements Life of lease

Plant and Equipment 2-60

intangibles/Software 3-10


P 78


note 2

Grants and subsidies

financial assistance is provided from State and commonwealth funds. Proposals and applications for funding under various support programs and schemes are subject to specific guidelines and procedures issued by the Department and the commonwealth. There are several approval delegations dependent upon the level and nature of assistance provided.

in some cases, the provision of assistance does not involve the direct outlay of funds by the Department. Assistance packages may involve elements of assistance provided through other government agencies, with the Department assuming the overall responsibility for the assistance arrangements. generally, this is through the provision of purpose-built buildings and exemptions or remissions from certain elements of state taxation.

for contributions payable, the contribution will be recognised as a liability and expense when the entity has a present obligation to pay the contribution and the expense criteria are met.

Payments to SA Government

Payments to the SA government relate to the return of surplus cash pursuant to the cash alignment policy.

K) cuRRent AnD non-cuRRent clAssificAtion

Assets and liabilities are characterised as either current or non-current in nature. Assets and liabilities that are sold, consumed or realised as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting date have been classified as current assets or current liabilities. All other assets and liabilities are classified as non-current.

Where asset and liability line items combine amounts expected to be realised within twelve months and more than twelve months, the Department has separately disclosed the amounts expected to be recovered or settled after more than twelve months.

l) Assets

Assets have been classified according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

Where an asset line item combine amounts expected to be settled within twelve months and more than twelve months, the Department has separately disclosed the amounts expected to be recovered after more than twelve months.

Cash

cash and cash equivalents in the Statement of financial Position includes cash at bank and on hand.

for the purposes of the Statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

cash is measured at its nominal value for Australian accounts while overseas accounts are measured using the exchange rate as per OANDA.com or the nominated overseas offices financial institution as at 30 June.

Receivables

Receivables include amounts receivable from goods and services, gST input tax credits recoverable and other accruals.

Receivables arise from the partial or full recovery of costs associated with the Department's delivery of programs. Receivables are generally settled within 30 days after the issue of an invoice or the goods/services have been provided under a contractual arrangement.

collectability of receivables is reviewed on an ongoing basis. An allowance for doubtful debts is raised when there is objective evidence that the Department will not be able to collect the debt. Bad debts are written off when identified.

Financial Assistance Debtors

Amounts outstanding with respect to financial assistance advances by way of loans are brought to account at their face value. A provision is made where recoverability of amounts is considered doubtful. conditions relating to some forms of assistance provide that in certain circumstances, loans can be reduced, forgiven or converted to grants.




note 2

Non-Current Assets

Acquisition and Recognition

Non-current assets are initially recorded at cost or at the value of any liabilities assumed, plus any incidental cost involved with the acquisition. Non-current assets are subsequently measured at fair value less accumulated depreciation.

Where assets are acquired at no value, or minimal value, they are recorded at their fair value in the Statement of financial Position. However, if the assets are acquired at no or nominal value as part of a restructure of administrative arrangements then the assets are recognised at book value i.e. the amount recorded by the transferor public authority immediately prior to the restructure.

All non-current tangible assets with a value equal to or in excess of $10 000 are capitalised, with the exception of works of art. All works of art are capitalised irrespective of their value.

The office fitout (including workstations) is reported under leasehold improvements and is depreciated over the life of the lease (ten years). .

Revaluation of non-current Assets

All non-current tangible assets are recorded at written down cost (a proxy for fair value) until the next revaluation cycle (five years). During 2012-13, the Department amended its asset policy in line with the Accounting Policy framework to reflect independent valuation appraisals to be performed at least every five years. Works of art and non-current assets or a group of assets when its fair value at the time of acquisition is greater than $1 million and estimated useful life is greater than three years are revalued in accordance with the revaluation cycle. if at any time management considers that the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place.

Any revaluation increment is credited to the asset revaluation surplus, except to the extent that it reverses a revaluation decrease of the same asset class previously recognised as an expense, in which case the increase is recognised as income. Any revaluation decrease is recognised as an expense, except to the extent that it offsets a previous revaluation increase for the same asset class, in which case the decrease is debited directly to the asset revaluation surplus to the extent of the credit balance existing in revaluations reserve for that asset class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the assets and the net amounts are restated to the revalued amounts of the asset.

Upon disposal or derecognition, any revaluation surplus relating to that asset is transferred to retained earnings

impairment

All non-current tangible and intangible assets are tested for indication of impairment at each reporting date. Where there is an indication of impairment, the recoverable amount is estimated. An amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

for revalued assets, an impairment loss is offset against the respective asset revaluation surplus.

Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance. intangible assets are measured at cost. following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either finite or indefinite. The Department only has intangible assets with finite lives. The amortisation period and the amortisation method for intangible assets is reviewed on an annual basis.

The acquisition of or internal development of software is capitalised only when the expenditure meets the definition criteria (identifiability, control and the existence of future economic benefits) and recognition criteria (probability of future economic benefits and cost can be reliably measured) and when the amount of expenditure is greater than or equal to $10 000.

All research and development costs that do not meet the capitalisation criteria outlined in AASB 138 are expensed.

Subsequent expenditure on intangible assets has not been capitalised. This is because the Department has been unable to attribute this expenditure to the intangible asset rather than to the Department as a whole.


P 80


note 2

Prior Period Adjustments

A prior period adjustment was made in relation to the recognition of Leasehold improvements ($329 000) and Land and improvements ($68 000) from the Department of Primary industries and Regions SA to the Department in 2012-13, associated with 2011-12 machinery of government changes. in addition, inventory of $27 000 was expensed.

m) liAbilities

Liabilities have been classified according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

Where a liability line item combines amounts expected to be settled within twelve months and more than twelve months, the Department has separately disclosed the amounts expected to be settled after more than twelve months.

Payables

Payables include creditors, accrued expenses, gST payable, employment on-costs and the paid parental leave scheme payable.

creditors represent the amounts owing for goods and services received prior to the end of the reporting period that are unpaid at the end of the reporting period. creditors include all unpaid invoices received relating to the normal operations of the Department.

Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received.

The paid parental leave scheme payable represents amounts which the Department has received from the commonwealth government to forward onto eligible employees via the Department's standard payroll processes. That is, the Department is acting as a conduit through which the payment to eligible employees is made on behalf of the family Assistance Office.

All payables are measured at their nominal amount, are unsecured and are normally settled within 30 days from the date of the invoice or date the invoice is first received.

Employee benefits on-costs include payroll tax, workers compensation and superannuation contributions in respect to outstanding liabilities for salaries and wages, long service leave, annual leave and skills and experience retention leave.

The Department makes contributions to several State government and externally managed superannuation schemes. These contributions are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective superannuation schemes. The only liability outstanding at balance date relates to any contributions due but not yet paid to the South Australian Superannuation Board.

Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement. The Department has assessed whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

The Department has entered into operating leases in relation to office accommodation and motor vehicles for its administrative and operating activities.

Operating lease payments are recognised as an expense in the Statement of comprehensive income on a straight-line basis over the lease term. The straight-line basis is representative of the pattern of benefits derived from the leased assets.

Financial guarantees

At the time a financial guarantee contract is issued, it is recognised as a contingent liability as it is not expected that the guarantee will be called upon. in determining the value of the indemnities provided by the Department, consideration has been given to the following:

- for those properties indemnified by the minister for manufacturing, innovation and Trade and subject to lease where the historical cost or borrowing from South Australian financing Authority (SAfA) remains, the value has been calculated using historical cost less the valuation of the property as at 30 June 2013.

- for those properties that are subject to a Deferred Purchase Agreement where the client is paying principal and interest repayments, the value has been calculated using the value of the loan outstanding as at 30 June 2013 less the most recent property or rating valuation.




note 2

The Department has reviewed its financial guarantees and determined that there is no material liability to be recognised for financial guarantee contracts as at 30 June 2013 (there was no material liability recognised for financial guarantee contracts in 2012).

Whilst no liability has been recognised for financial guarantee contracts, further note disclosures relating to financial guarantees are contained at Note 29 contingent Assets and Liabilities.

Employee Benefits

These benefits accrue for employees as a result of services provided up to the reporting date that remain unpaid. Long-term employee benefits are measured at present value and short-term employee benefits are measured at their nominal amounts.

Wages, salaries, annual leave, skills and experience retention leave and sick leave

The liability for salaries and wages is measured as the amount unpaid at the reporting date at remuneration rates current at reporting date.

The annual leave liability and the skills and experience retention leave liability is expected to be payable within twelve months and is measured at the undiscounted amount expected to be paid. in the unusual event where salary and wages, annual leave and skills and experience retention leave liability are payable later than twelve months, the liability will be measured at present value.

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 is estimated to be less than the annual entitlement of sick leave.

long service leave

The liability for long service leave is measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

The estimated liability for long service leave is based on actuarial assumptions over expected future salary and wage levels, experience of employee departures and periods of service. These assumptions are based on employee data over SA government entities. Expected future payments are discounted using market yields at the end of the reporting period on government bonds with durations that match, as closely as possible, the estimated future cash outflows.

The unconditional portion of the long service leave provision is classified as current as the Department does not have an unconditional right to defer settlement of the liability for at least twelve months after reporting date. The unconditional portion of long service leave relates to an unconditional legal entitlement to payment arising after ten years of service.

Provisions

Provisions are recognised when the Department has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Department expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of comprehensive income net of any reimbursement.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. if the effect of the time value of money is material, provisions are discounted for the time value of money and the risks specific to the liability.

The workers compensation provision is an actuarial estimate of the outstanding liability as at 30 June 2013 provided by a consulting actuary engaged through the Public Sector Workforce Relations Division of the Department of the Premier and cabinet. The provision is for the estimated cost of ongoing payments to employees as required under current legislation.

The Department is responsible for the payment of workers compensation claims.

n) unRecogniseD contRActuAl commitments AnD contingent Assets AnD liAbilities

commitments include operating, capital and outsourcing arrangements arising from contractual or statutory sources and are disclosed at their nominal value.


P 82


note 2

neW AnD ReviseD Accounting stAnDARDs AnD Policiesnote 3

The Department did not voluntarily change any of its accounting policies during 2012-13.

Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet effective, have not been adopted by the Department for the period ending 30 June 2013.

Activities of the DePARtment note 4

The Department has identified eight broad activities that reflect the nature of the services delivered to the South Australian community. The activities undertaken under 'Thriving Regions' and 'A Strategic Approach to Economic Development' were transferred out as part of the machinery of government changes, effective 1 January 2012. The activities and their objectives of the Department are:

Activity 1:

Public sector Renewal - this activity will lead a values-based cultural change program in partnership with agencies and employees across the public sector. All participants collaborate to identify and embed values that are critical to better service delivery in the twenty-first century.

Activity 2:

mineral Resources and energy - this activity supports the vision of the mineral resources and energy development program to continue South Australia's reputation as a leading mineral investment destination. it includes managing the state's mineral and energy resources, delivering the Plan for Accelerating Exploration (PACE 2020) programs, facilitating the South Australian and commonwealth governments' interaction with BHP Billiton for the approval of the Olympic Dam expansion, providing policy advice and coordination of energy market reforms and enforcement of energy related technical and safety regulation.

Activity 3:

manufacturing and innovation - this activity will further develop advanced manufacturing capability in South Australia and maximise supply chain opportunities for South Australian businesses. it includes the development of the Tonsley Park sustainable technologies precinct, implementation of manufacturing Works, a ten-year strategy for transitioning South Australia's manufacturers to higher value-added manufacturing, and mapping of mining supply chains to identify opportunities for South Australian companies.

Activity 4:

globally integrating the sA economy - this activity supports sustainable economic growth by building on South Australia’s competitive advantages. it includes facilitating investment and case management in major projects across the state, and trade and migration activities. The invest in South Australia initiative, connecting investors to a network of local contacts to facilitate investment in the state's major projects, is one important component.

Activity 5:

opportunities for small business - this activity supports small businesses in their growth and expansion, complementing the role of the Small Business commissioner.


contingent assets and contingent liabilities are not recognised in the Statement of financial Position, but are disclosed by way of a note and, if quantifiable, are measured at nominal value.

Unrecognised contractual commitments and contingencies are disclosed net of the amount of gST recoverable from, or payable to the Australian Taxation Office. if gST is not payable to, or recoverable from the Australian Taxation Office, the commitments and contingencies are disclosed on a gross basis.


emPloyee benefits eXPensesnote 5

Note No.

2013 $’000

2012 $’000

Salaries and wages 39 283 26 392 TvSPs (refer below) 365 346 Long service leave 1 200 772 Annual leave 3 675 1 845 Skills and experience retention leave 221 - Employment on-costs - superannuation 4 466 2 596 Employment on-costs - other 2 433 1 473 Workers compensation 304 (81)Board fees 31 316 144

total employee benefits expenses 52 263 33 487

targeted voluntary separation packages (tvsPs) and early terminations

2013 $’000

2012 $’000

Amount paid during the reporting period to these employees:

TvSPs 365 346 Early terminations - 400 Annual leave and long service leave paid to those employees 130 291 Employment on-costs (payroll tax and Shared Services SA processing fees) 54 22 Redeployment training support * 1 4

550 1 063

Recovery from the Department of Treasury and finance (1 007) (606)

net cost to Department (457) 457

The number of employees who received a TvSP or early termination payment during 2012-13 was 2 (5).

The recovery from the Department of Treasury and finance ($1 007 000) is reflected in the financial statements as Revenues from SA government, this includes contingency appropriation of $749 000. The balance of $258 000 is attributable to reimbursement of leave payments and payroll tax from the Department of Treasury and finance.

* The recovery from the Department of Treasury and finance includes $1 000 ($4 000) for redeployment training support, included in staff related expenses in Supplies and services (refer note 6).


Activities of the DePARtment cONTiNUED note 4

Activity 6:

Plumbing technical and safety Regulation - this activity supports the enforcement, compliance and protection of technical and safety regulation of plumbing and equipment.

Activity 7:

thriving Regions - this activity worked with South Australia’s regional communities to maximise economic opportunity in these regions to maximise their contribution to the State’s economy. it helped to build social capital, promote economic development initiatives and priorities and contribute to the funding of regional economic infrastructure. This activity has been transferred to the Department of Primary industries and Regions SA.

Activity 8:

A strategic Approach to economic Development - this activity provided a strong strategic policy framework for economic development by focusing on South Australia being a place where people will choose to live, work and do business. This activity has been transferred to the Department for the Premier and cabinet.

P 84

2013 number

total employees

2012 Number

Total Employees

$134 000 - $137 999* n/a 1 $138 000 - $147 999 8 1 $148 000 - $157 999 8 - $158 000 - $167 999 3 3 $168 000 - $177 999 7 2 $178 000 - $187 999 4 - $188 000 - $197 999 2 1 $198 000 - $207 999 5 1 $208 000 - $217 999 1 - $218 000 - $227 999 2 - $228 000 - $237 999 1 - $238 000 - $247 999 1 - $248 000 - $257 999 1 1 $278 000 - $287 999 1 - $298 000 - $307 999 2 - $308 000 - $317 999 1 2 $318 000 - $327 999 1 - $328 000 - $337 999 1 - $378 000 - $387 999 1 - $428 000 - $437 999 1 - $448 000 - $457 999 - 1 $578 000 - $587 999 - 1

total number of employees 51 14

* This band has been included for the purposes of reporting comparative figures based on the executive base level remuneration rate for 2011-12.

The table includes all employees who received remuneration equal to or greater than the base executive remuneration level during the year. Remuneration of employees reflects all costs of employment including salaries and wages, TvSPs / early terminations, superannuation contributions, fringe benefits tax and any other salary sacrifice benefits. The total remuneration received by these employees for the year was $10.255 million ($3.548 million). The total paid to employees receiving TvSP's or early terminations including salaries, leave entitlements and TvSP package and/or contract amount was nil in 2012-13 ($1.349 million).

RemuneRAtion of emPloyees

The number of employees whose remuneration received or receivable falls within the following bands:




suPPlies AnD seRvicesnote 6

Note No.

2013 $’000

2012 $’000

supplies and services provided by entities within the sA government

Accommodation and service costs 5 477 3 930 Accounting and audit fees 10 143 121 communications and information technology 1 638 746 contractors 7 480 consultancies (refer below) 149 - Energy supply fuel and lubricants 56 8 marketing 9 28 Overseas trade representation (1) - 2 RAES (remote areas energy scheme) 1 950 - Shared service fees - other (2) 2 127 227 Staff related expenses 105 87 Travel and related expenses 959 688 Office administration expenses 2 351 789

total supplies and services - sA government entities 14 971 7 106

supplies and services provided by entities external to the sA government

Accommodation and service costs 655 575 Accounting and audit fees 288 257 Business training and development support 2 21 communications and information technology 3 327 1 980 contractors 8 281 6 952 consultancies (refer below) 4 428 2 520 Energy supply fuel and lubricants 7 483 3 881 Lease incentive amortisation 27 (240) (240)marketing 2 281 1 946 Overseas trade representation (1) 140 190 RAES (remote areas energy scheme) 1 307 280 Staff related expenses 1 577 1 178 Travel and related expenses 2 542 1 286 Office administration expenses 4 131 2 556

total supplies and services - non-sA government entities 36 202 23 382

total supplies and services 51 173 30 488

The total supplies and services amount disclosed includes gST amounts not recoverable from the ATO due to the Department not holding a tax invoice or payments related to third party arrangements. (1) Represents payments made to trade organisations relating to activities promoting South Australia. (2) Represents payments to the Department of Planning, Transport and infrastructure, Department of Primary industries and

Regions SA and the Department for the Premier and cabinet for the provision of corporate support services.

the number and dollar amount of consultancies paid/payable (included in supplies and services expense) that fell within the following bands:

number 2013 $’000

Number 2012 $’000

Below $10 000 17 67 12 72 $10 000 to $50 000 35 800 25 529 Above $50 000 18 3 710 19 1 919

total paid/payable to the consultants engaged 70 4 577 56 2 520

P 86


DePReciAtion AnD AmoRtisAtion eXPenses

gRAnts AnD subsiDies

note 7

note 8

2013 $’000

2012 $’000

grants and subsidies paid/payable to entities within the sA government

class of assistance: industry development 597 290 Energy 20 506 minerals and petroleum 587 1 158 Renewables 50 - Regional development - 6 Other 28 33

total grants and subsidies - sA government entities 1 282 1 993

grants and subsidies paid/payable to entities external to the sA government

class of assistance: industry development 8 147 11 595 Energy 6 703 3 683 minerals and petroleum 4 386 1 071 Renewables 999 995 Regional development - 3 190 Other 278 456

total grants and subsidies - non-sA government entities 20 513 20 990

total grants and subsidies 21 795 22 983

2013 $’000

2012 $’000

Depreciation

Plant and equipment 913 504 Leasehold improvements 885 694

total depreciation 1 798 1 198

Amortisation

intangible / Software 492 416

total amortisation 492 416

total depreciation and amortisation 2 290 1 614



AuDitoR’s RemuneRAtionnote 10

2013 $’000

2012 $’000

Audit fees paid/payable to the Auditor-general's Department 143 121

total audit fees 143 121

No other services were provided by the Auditor-general's Department.

oveRseAs RePResentAtive officesnote 11

china$’000

singapore $’000

Dubai$’000

india$’000

2013 total

$’000

2012 Total

$’000

Operating expenses 535 166 124 424 1 249 1 669 Operating revenues 148 43 15 17 223 26 funds advanced to overseas offices towards operating expenses 503 231 164 355 1 253 1 090

The following table provides a summary of the financial transactions for the reporting period for overseas offices, where the Department funds their operations. The transactions relating to operating expenses and operating revenues have been included in the financial statements.

The costs relating to overseas representation provided through Austrade are not included in the table below. These costs are shown in note 6 (refer Overseas trade representation).

otheR eXPensesnote 9

2013 $’000

2012 $’000

other expenses paid/payable to entities external to the sA government

Bad and doubtful debts 8 -

Asset write-down - 144

total other expenses - non-sA government entities 8 144

total other expenses 8 144

2013 $’000

2012 $’000

user fees and charges received/receivable from entities external to sA government:

mining and petroleum application fees, rentals and licences 17 421 6 141

total revenues from fees and charges - non-sA government entities 17 421 6 141

total revenues from fees and charges 17 421 6 141

Revenues fRom fees AnD chARgesnote 12

P 88


2013 $’000

2012 $’000

technical regulation received/receivable from entities within sA government

Technical regulation - gas and electricity technical regulation and electricity emergency management 6 277 3 097

total technical regulation - sA government entities 6 277 3 097

total technical regulation 6 277 3 097

2013 $’000

2012 $’000

Revenue received/receivable from entities within sA government

Sale of electricity - remote areas 1 744 1 113

total sale of electricity - sA government 1 744 1 113

Revenue received/receivable from entities external to sA government

Sale of electricity - remote areas 1 534 1 422

total sale of electricity - external to sA government 1 534 1 422

total sale of electricity 3 278 2 535

technicAl RegulAtion

sAle of electRicity

note 13

note 14

Licence fees on industry bodies levied by the Essential Services commission of SA (EScOSA) and received via the Department of Treasury and finance.

2013 $’000

2012 $’000

grants

municipal and Essential Services - murputja and Watarru Power Station fuel contribution* - 173 Renewable Remote Power generation Program ** - 57

total commonwealth revenues - sA government entities - 230

grants

Tradestart 338 308 Supplier Access to major Projects Program - Australian Water Access to USA - california 105 350 Supplier Access to major Projects Program - Olympic Dam Expansion 6 1 Supplier Access to major Projects Program - Domain Specialist - Water 263 132 Regional Development Australia Adelaide metropolitan Advisory Board - 36 cellulosic value chain Technology Roadmap 227 - municipal and Essential Services - murputja and Watarru Power Station fuel contribution* 177 -

total commonwealth revenues - non-sA government entities 1 116 827

total commonwealth revenues 1 116 1 057

commonWeAlth Revenuesnote 15


inteRest Revenuesnote 16

2013 $’000

2012 $’000

interest revenues 15 7

total interest revenues 15 7


commonWeAlth Revenues cONTiNUEDnote 15

* funding for this program during 2011-12 was received via the Department of the Premier and cabinet. Under the new agreement, funding is received from the Department of families, Housing, community Services and indigenous Affairs.

** funding for this program was received via the Department of Treasury and finance.

contributions which have conditions of expenditure still to be met as at reporting date were $367 000 ($1 060 000). These contributions relate to the Supplier Access to major Projects Programs:- Domain Specialist - Water and Australian Water Access to USA - california.

The terms of the municipal and Essential Services - murputja and Watarru Power Station fuel contribution state that the Department is to purchase fuel for power stations at murputja and Watarru on the APy Lands and offset this cost with the diesel fuel rebate and charges to consumers for power.

Renewable Remote Power generation Program is an Australian government funded initiative that provided financial support to increase the use of renewable generation in remote parts of Australia that rely on diesel and other fossil fuels for electricity supply. The final program extension agreement changed the focus to more on energy efficiency rather than renewable energy installation rebates. The program ended 30 June 2013.

included in revenue is commonwealth funding for Tradestart. The terms of this grant are that the Department must promote exporting, international business and the commonwealth government's trade agenda for a period of approximately three and a half years ending 30 June 2014. As the grant is a non-recourse grant it has been recognised upon receipt.

conditions attached to the contributions relating to the Supplier Access to major Projects Programs:- Australian Water Access to USA - california and Olympic Dam Expansion; state that funds are to be used to facilitate South Australian industry participation where it has full, fair and reasonable opportunity to tender for the supply of goods and services associated with this project. The Olympic Dam Expansion program is no longer proceeding.

conditions attached to the cellulosic value chain Roadmap initiative stem from the SA government's wish to develop the potential of the forestry resources from South Australian forests, in particular the Limestone coast region. in order to achieve this, a detailed mapping of the possible commercial ready or near commercial ready technologies and associated high value add industries to be attracted to the area must be carried out.

2013 $’000

2012 $’000

Plant and equipment:

Proceeds from disposal 125 - Less net book value of assets disposed (128) -

total net loss from disposal of non-current assets (3) -

net loss fRom the DisPosAl of non-cuRRent Assetsnote 17

P 90


otheR Revenuesnote 18

2013 $’000

2012 $’000

Revenue received/receivable from entities within sA government

management of Extractive Areas Rehabilitation fund 284 176 Recoveries - financial assistance grants 410 41 Recoveries - intra-government transfers - grants 1 518 215 Recoveries - other 1 423 142

total other revenues - sA government entities 3 635 574

Revenue received/receivable from entities external to sA government:

Sponsorship revenues 51 40 fuel tax credits 1 610 900 Recoveries - financial assistance grants 13 66 Recoveries - business training and development support 4 22 Recoveries - other 1 682 324

total other revenues - non-sA government entities 3 360 1 352

total other revenues 6 995 1 926

Revenues fRom / PAyments to sA goveRnmentnote 19

2013 $’000

2012 $’000

Revenues from sA government

Appropriations from consolidated Account pursuant to the Appropriation Act 86 228 71 735

Appropriations under other Acts (pursuant to Treasurer's contingency section 15 Public Finance and Audit Act 1987)

5 757 872

total revenues from sA government 91 985 72 607

Payments to sA government

Return of surplus cash pursuant to cash alignment policy - 5 054

total payments to sA government - 5 054

Total revenues from government consists of $85 247 000 ($71 345 000) for operational funding and $981 000 ($390 000) for capital projects. for details on the expenditure associated with the operational funding and capital funding received refer to Note 5 to 10 and 30.

The original amount appropriated to the Department under the annual Appropriation Act was not varied however an additional advance of $5 757 000 ($872 000) was received pursuant to Treasurer's contingency. contingency appropriation in 2012-13 included $3 812 000 for Remote Areas Energy Supplies fuel cost Adjustment, $749 000 for TvSP reimbursement and $832 000 enterprise bargaining supplementation.


cAshnote 20

2013 $’000

2012 $’000

Deposits with Treasurer – Operating Account 16 125 20 609 Deposit with the Treasurer – Accrual Appropriation 5 039 4 456 Deposits at call - overseas offices 214 173 Other 1 1

total cash 21 379 25 239

DePosits With tReAsuReR – oPeRAting Account

includes cash securities held for mining remediation of $6.018 million. Last year the cash securities were held in the Department of Primary industries and Regions SA (PiRSA's) bank account. The Department recognised a receivable "accrued revenue" for the amount of the security deposits. The Department only has claims to these funds if the licensee fails to perform its legislative requirements (refer note 27).

DePosit With the tReAsuReR – AccRuAl APPRoPRiAtion

This balance relates to funds held in the Accrual Appropriation Excess funds Account. The balance of these funds is not available for general use, i.e. funds can only be used in accordance with the Treasurer's / Under Treasurer's approval.

inteRest RAte RisK

cash on hand is non-interest bearing. Deposits at call and with the Treasurer earn a floating interest rate, based on daily bank deposit rates. The carrying amount of cash represents fair value.


ReceivAblesnote 21

2013 $’000

2012 $’000

current

Receivables 2 838 1 944 Less allowance for doubtful debts (56) (161)gST input tax recoverable 738 938 Prepayments 114 220 Accrued revenue 2 822 8 655

total current receivables 6 456 11 596

total receivables 6 456 11 596

P 92


2013 $’000

2012 $’000

government / non-government receivables

Receivables from sA government entities

Receivables 1 604 28 Prepayments - 10 Accrued revenue 1 356 7 433

total receivables from sA government entities 2 960 7 471

Receivables from non-sA government entities

Receivables 1 178 1 755 gST input tax recoverable 738 938 Prepayments 114 210 Accrued revenue 1 466 1 222

total receivables from non-sA government entities 3 496 4 125

total receivables 6 456 11 596

movement in the AlloWAnce foR Doubtful Debts

The allowance for doubtful debts (allowance for impairment losses) is recognised when there is objective evidence (i.e. calculated on past experience and current and expected changes in client credit rating) that a receivable is impaired.

An allowance for impairment loss has been recognised in 'other expenses' in the Statement of comprehensive income for specific debtors and debtors assessed on a collective basis for which such evidence exists.

2013 $’000

2012 $’000

movements in the allowance for doubtful debts (impairment loss):

carrying amount at the beginning of the period

(161) (3)

Decrease / (increase) in the allowance 105 (161)Amounts written off - 3

carrying amount at the end of the period (56) (161)

ReceivAbles cONTiNUEDnote 21

inteRest RAte AnD cReDit RisK

Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations. The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk.

a. maturity analysis of receivables - refer to table 35.3 in Note 35.

b. categorisation of financial instruments and risk exposure information - refer to Note 35.


financial assistance is provided to Non-SA government entities only.

finAnciAl AssistAnce DebtoRsnote 22

2013 $’000

2012 $’000

current

financial assistance debtors 534 134 Less allowance for doubtful debts (24) (110)

total current financial assistance debtors 510 24

non-current

financial assistance debtors 453 954

total non-current financial assistance debtors 453 954

total financial assistance debtors 963 978

2013 $’000

2012 $’000

movements in the allowance for doubtful debts (impairment loss):

carrying amount at the beginning of the period

(110) (110)

Amounts written off 86 -

carrying amount at the end of the period (24) (110)



Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations. The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk.

a. maturity analysis of receivables - refer to table 35.3 in Note 35.


P 94


2013 $’000

2012 $’000

Plant and equipment

Plant and equipment at cost (deemed fair value) 22 868 22 803 Accumulated depreciation (12 524) (12 066)

total plant and equipment 10 344 10 737

leasehold improvements

Building improvements at fair value 18 981 18 936 Accumulated depreciation (8 831) (8 031)

total leasehold improvements 10 150 10 905

intangibles / software

computer software 3 493 3 034 Accumulated amortisation (2 557) (2 065)

total intangible assets 936 969

land and improvements

Land and improvements at fair value 9 023 9 023

total land and improvements 9 023 9 023

Works of art

Works of art at fair value 105 100

total works of art 105 100

capital works in progress

Works in progress at cost 103 356

total capital works in progress 103 356

total property, plant and equipment 30 661 32 090

PRoPeRty, PlAnt AnD equiPmentnote 23

vAluAtion of WoRKs of ARt

The valuation of works of art was performed by Theodore Bruce, an independent valuer, as at 9 may 2013. The valuer arrived at fair value based on recent market transaction for similar items.


PRoPeRty, PlAnt AnD equiPment cONTiNUED

ReconciliAtion of non-cuRRent AssetsThe following table shows the movement of non-current assets during 2012-13

note 23

Plant & Equip$’000

Leasehold improvements

$’000

intangibles/Software

$’000

Land and improvements

$’000

Works of Art

$’000

Work in Progress

$’000

total$’000

carrying amount at the beginning of the financial year 10 737 10 905 969 9 023 100 356 32 090

Additions 575 - 24 - - 385 984 capitalisation 43 160 435 - - (638) - Disposals/transfers (98) (30) - - - - (128)Revaluation increment - - - - 5 - 5 Depreciation and amortisation (913) (885) (492) - - - (2 290)

carrying amount at the end of the financial year 10 344 10 150 936 9 023 105 103 30 661


2013 $’000

2012 $’000

current

creditors and accrued expenses 10 577 24 122 Employee on-costs 1 125 806

total current payables 11 702 24 928

non-current

Employee on-costs 822 807

total non-current payables 822 807

total payables 12 524 25 735

PAyAblesnote 24

2013 $’000

2012 $’000

government / non-government payables

Payables to sA government entities

creditors and accrued expenses 4 999 18 640 Employee on-costs 838 738

total payables to other sA government entities 5 837 19 378

Payables to non-sA government entities

creditors and accrued expenses 5 578 5 482 Employee on-costs 1 109 875

total payables to non-sA government entities 6 687 6 357

total payables 12 524 25 735

P 96


PAyAbles cONTiNUEDnote 24

As a result of an actuarial assessment performed by the Department of Treasury and finance, the percentage of the proportion of long service leave taken as leave has remained at the 2012 rate of 40% and the average factor for the calculation of employer superannuation cost on-cost has changed from the 2012 rate of 10.3% to 10.2%. These rates are used in the employment on-cost calculation. The net financial effect of the changes in the current financial year is a decrease of $0.122m in the employment on-cost and employee benefit expense due to machinery of government changes during 2011-12. The impact on 2014 and 2015 can not be reliably estimated.


creditors and accruals are raised for all amounts due but unpaid. Sundry creditors are normally settled within 30 days. Employment on-costs are settled when the respective employee benefit that they relate to is discharged. All payables are non-interest bearing. The carrying amount of payables represents fair value due to the amounts being payable on demand.

a. maturity analysis of payables - refer to table 35.3 in Note 35.


2013 $’000

2012 $’000

current

Accrued salaries and wages 286 - Annual leave 3 811 3 211 Long service leave 2 504 2 109 Skills and experience retention leave 221 -

total current employee benefits 6 822 5 320

non-current

Long service leave 8 903 8 705

total non-current employee benefits 8 903 8 705

total employee benefits 15 725 14 025

emPloyee benefits note 25

AASB 119 contains the calculation methodology for the long service leave liability. This year an actuarial assessment performed by the Department of Treasury and finance was used to calculate the liability rather than using a short hand measurement technique for the calculation of the liability.

AASB 119 requires the use of the yield on long-term commonwealth government bonds as the discount rate in the measurement of long service leave liability. The yield on long-term commonwealth government bonds has increased from 2012 (3.0%) to 2013 (3.75%). The increase in the bond yield, which is used as the rate to discount future long service leave cash flows, results in a decrease in the reported long service leave liability.

The net financial effect of the changes in methodology and actuarial assumptions in the current financial year is a decrease of $1.120m in the long service leave liability and employee benefit expense compared to the shorthand measurement technique. The impact on future periods is impractical to estimate as the long service leave liability is calculated using a number of assumptions - a key assumption is the long term discount rate.

The actuarial assessment performed by the Department of Treasury and finance determined that the salary inflation remained at 4%. As a result, there is no net financial effect in the annual leave liability and employee benefit expenses.


PRovisionsnote 26

2013 $’000

2012 $’000

current

Provision for workers compensation 139 97

total current provisions 139 97

non-current

Provision for workers compensation 475 339

total non-current provisions 475 339

total provisions 614 436

carrying amount at the beginning of the period 436 199

Additional provisions recognised 303 288 Payments (125) (51)

carrying amount at 30 June 614 436

A liability has been reported to reflect unsettled workers compensation claims. The workers compensation provision is based on an actuarial assessment performed by the Public Sector Workforce Relations Division of the Department of the Premier and cabinet.


otheR liAbilitiesnote 27

Lease incentive received from building owner applied as a contribution towards fitout costs (as per agreement) and amortised over the period of the lease (10 years), commencing December 2009.

Security deposits are received to ensure mine operators rehabilitate sites and comply with all statutory requirements on cessation of licences. cash deposits are classified as security deposits. The value of securities held in the form of bank guarantees are reflected as a contingent asset (note 29) as the Department only has a claim on these funds if the licensee fails to meet its legislative requirements.

Unearned revenue includes payments of rent received for the grant or renewal of exploration licences and mining leases which are held as unearned revenue until the minister officially approves the grant or renewal of the tenement or lease. Once the grants or renewals have been instrumented, amounts are then recognised as revenue, or transferred to the landowners refund account for those freehold Landowners who are entitled to a refund of rent.

2013 $’000

2012 $’000

current

Lease incentive 240 240 Security deposits 6 018 4 521 Unearned revenue 2 036 1 964

total current other liabilities 8 294 6 725

non-current

Lease incentive 2 156 2 156 Accumulated amortisation - lease incentive (859) (619)

total non-current other liabilities 1 297 1 537

total other liabilities 9 591 8 262

P 98


2013 $’000

2012 $’000

capital commitments

capital expenditure contracted for at the reporting date but not recognised as liabilities in the financial statements are payable as follows:

Within one year 1 658 31

total capital commitments 1 658 31

2013 $’000

2012 $’000

Remuneration commitments

commitments for the payment of salaries and other remuneration under fixed-term employment contracts in existence at the reporting date but not recognised as liabilities are payable as follows:

Within one year 11 523 10 101 Later than one year but not longer than five years 17 308 16 368

total remuneration commitments 28 831 26 469

unRecogniseD contRActuAl commitmentsnote 28

capital commitments at 30 June 2013 relate to Brukunga mine.

Amounts disclosed include commitments arising from executive and other service contracts. The Department does not offer fixed-term remuneration contracts greater than five years.

2013 $’000

2012 $’000

other commitments

commitments for the payment of other contracts and grant agreements in existence at the reporting date but not recognised as liabilities are payable as follows:

Within one year 13 569 12 578 Later than one year but not longer than five years 6 416 7 106

total other commitments 19 985 19 684

Amounts disclosed include commitments arising from agreements with contractors, consultants and grant recipients.



unRecogniseD contRActuAl commitments cONTiNUEDnote 28

2013 $’000

2012 $’000

operating lease commitments

commitments in relation to operating leases contracted for at the reporting date but not recognised as liabilities are payable as follows:

Within one year 5 599 5 829 Later than one year but not longer than five years 16 404 18 372 Later than five years 3 677 6 603

total operating lease commitments 25 680 30 804

Representing: cancellable operating leases 811 1 230 Non-cancellable operating leases 24 869 29 574

25 680 30 804

The Department's operating leases relate to office accommodation and motor vehicles. Office accommodation is leased from the Department of Planning, Transport and infrastructure - Building management Accommodation and Property Services. The leases are non-cancellable with terms ranging up to ten years with some leases having the right of renewal. motor vehicles are leased from SAfA through their agent LeasePlan Australia with lease periods of up to three years. These are cancellable without notice.

contingent Assets AnD liAbilities note 29

contingent Assets

Where specific conditions relating to a financial assistance grant are not met, the Department may request the amount granted be repaid by the grantee. There are no known contingent assets arising from these present obligations as at 30 June 2013.

The Department receives securities in accordance with Acts administered by the Department for mining and petroleum. These are obtained to ensure that a mine operator rehabilitates a site and complies with all statutory requirements on cessation of a licence. The amount held as bank guarantees at 30 June 2013 is approximately $113 million ($112 million). The Department only has a claim on these funds if the licensee fails to perform its legislative requirements.

contingent liAbilities

Guarantees and Indemnities

The Department has provided indemnities relating to various industry packages. As at 30 June 2013 the indemnities that can be reliably measured total $4 837 000 ($3 212 000).

There is currently an agreement in place, which if the conditions were to be met would result in a call on the indemnity. To date, these conditions have not been met.

The nature of activities that the Department is involved in can create potential exposure to mining matters, which the Department may be required to remedy in the future. The Department has some potential outstanding litigation specifically resulting from interpretation of past mining practices and petroleum exploration.

certain matters associated with contaminants such as contaminated land and hazardous materials have been identified and are managed in accordance with recognised standards. This includes the environmental liabilities of past mining practices where there is no longer an active licence. for new activities, it is a lease condition that rehabilitation be undertaken by the leaseholder before a lease is surrendered. The Department's responsibility is to ensure that a lease is not surrendered before appropriate rehabilitation has occurred, thus minimising the likelihood of future environmental risks to government. Work is progressing to determine any liabilities that may be associated with this role. At this time, the financial impact cannot be reliably estimated.

P 100


tRAnsfeRReD functionsnote 30

tRAnsfeRReD in

Transfer of administrative and operational resources associated with technical regulation of plumbing from the South Australian Water corporation (SA Water) to the Office of the Technical Regulator, hosted by the Department for manufacturing, innovation, Trade, Resources and Energy (DmiTRE).

The following functions were transferred into the Department:

The Water Industry Act 2012 (the Act) was passed on 5 April 2012 and received Royal Assent on 19 April 2012. The Act was brought into limited operation on 1 July 2012, including those provisions relating to the appointment of the Technical Regulator, and commenced in full on 1 January 2013.

The effective date of the transfer was 1 January 2013. This included the transfer of 11 employees and expenditure budget funding of $1 182 000 for controlled activities.

On transfer of these functions, the Department recognised the following assets and liabilities as at 1 January 2013:

SA Water 01.07.12 to 31.12.12

$’000

DmiTRE 01.01.13 to 30.06.13

$’000

total$’000

Expenses

Employee benefit expenses 438 730 1 168 Supplies and services - 545 545

total expenses 438 1 275 1 713

income

Other revenues 61 - 61 intra government transfers - 992 992 Appropriation - 815 815

total income 61 1 807 1 868

net result (377) 532 155

Transferred from SA Water $’000

total$’000

current assets

Receivables 282 282

total current assets 282 282

total assets 282 282

current Liabilities

Payables 12 12 Employee benefits 93 93

total current liabilities 105 105

Non-current Liabilities

Payables 15 15 Employee benefits 162 162

total non-current liabilities 177 177

total liabilities 282 282

total net assets transferred - -

Net assets assumed by the Department as a result of the administrative restructure are the carrying amount of those assets in the transferor’s Statement of financial Position immediately prior to transfer.



RemuneRAtion of boARD AnD committee membeRsnote 31

* in accordance with the Department of the Premier and cabinet circular No. 016, government employees did not receive any remuneration for board / committee duties during the financial year. in addition, members of Parliament who are members of boards or committees did not receive any remuneration.

^ indicates a member entitled to remuneration but has elected not to receive payment.

members of boards and committees reporting to the minister for manufacturing, innovation and Trade during the 2013 financial year were:

Advanced manufacturing council

N Apple Resigned 31.3.13 D mcgurk S myatt g Roos chair Appointed 1.7.12 J Law Appointed 22.4.13 g Knight* ex-officio T monro Appointed 22.4.13

business Development council

P Sims chair A christopoulos Deputy chair Appointed 22.4.13 A fisher Appointed 2.1.13 S gallery Appointed 2.1.13 K Saffin^ Appointed 2.1.13 J chapman Appointed 2.1.13 K Baker Jamieson Appointed 2.1.13 c Johnston J Hawkes Appointed 2.1.13 v mcclurg Appointed 2.1.13 D Basheer Appointed 2.1.13 A Kittel^ Appointed 2.1.13 B Roberts L Torzyn Resigned 17.5.13 S chase B mahoney^ Appointed 22.4.13

mining industry Participation office Advisory council

R Nelson Appointed 12.3.13 c Stallan Appointed 12.3.13 P goiak* Appointed 12.3.13 J Howarth Appointed 12.3.13, Resigned 20.6.13 B Kilgariff Appointed 12.3.13 A Kachallek chair Appointed 12.3.13 J Kuchel* Appointed 12.3.13 m mcgowan Appointed 12.3.13 D Dally Appointed 12.3.13 S Ellis Appointed 12.3.13, Resigned 22.3.13 g Knight* Appointed 12.3.13 D cruickshanks-Boyd Appointed 12.3.13 P Heithersay* Appointed 12.3.13 B goldstein* Appointed 12.3.13 E Tyne* Appointed 12.3.13 g Hunt Appointed 1.6.13

For the Mining Industry Participation Office Advisory Council, no members received remuneration.

P 102


south Australia - china Advisory committee

S Kennihan chair K Anderson A Huang J yuile i Zhang c Tragakis K Osborn D frater* ex-officio g Knight* ex-officio

For the South Australia-China Advisory Committee, no members received remuneration.

south Australia - india Advisory committee

B Hayes chair A vicary D von Wald P Sandercock A Downs R vasan R Spencer D frater* ex-officio g Knight* ex-officio

For the South Australia-India Advisory Committee, no members received remuneration.

members of boards and committees reporting to the minister for mineral Resources and Energy during the 2013 financial year were:

board of examiners for mine managers

g marshall* chair J coker P Reynolds m van Leuven A Ward

brukunga minesite Remediation board

H macDonald chair R macDonald A Stuart E Tyne*

electrical technical Advisory committee

R Anderson* g cox* R Donnelly R faunt* chair J gater D inge* B Jackson L moore P morris* S O'Loughlin T Tran

For the Electrical Technical Advisory Committee, no members received remuneration.

RemuneRAtion of boARD AnD committee membeRs cONTiNUEDnote 31


09 Financial statements

RemuneRation of BoaRd and Committee memBeRs continuednote 31

energy Consumers Council

o covick Retired 7.2.13 m Baldock chair c eardley deputy chair appointed 7.2.13 J Fisher c Hagi Resigned 18.9.12 H i’anson n long a moore H nichols J Pike R Williams a clarke Proxy member Resigned 3.4.13 l stoll Proxy member

The Energy Consumers Council has a number of proxy members representing various organisations. Only paid proxy members have been included above.

energy Consumers Council special needs sub-Committee


energy Consumers Council demand side management sub-Committee


Any member on the Energy Consumers Council are invited to attend the sub-committee meetings if they are interested in the topic to be discussed at the meeting.

P 104



extractive Areas Rehabilitation fund Project Assessment Panel

c miller chair S falland H O'Neil E Tyne* P Whiffen E young* J Barker* Deputy member m Harvey Deputy member S Linou Deputy member g marshall* Deputy member T mcDonald Deputy member

gas technical Advisory committee

D Buchanan A clarke R faunt* chair D inge* R mignone W Patience* D Santinon N Smith m Sneddon Resigned 6.8.12 A Szacinski* T Tucker* m clough Appointed 28.8.12

For the Gas Technical Advisory Committee, no members received remuneration.

olympic Dam social management Partnership

W cossey chair

Resources and energy sector infrastructure council

H Umlauff Resigned 17.5.13 B carter D Dalla valle Resigned 14.12.12 m gray Resigned 5.6.13 g guglielmo chair R Hook* J Kuchel* L Owens J Roberts J White P Heithersay* L Worrall* D cuzzubbo Appointed 24.7.12 T White Appointed 24.7.12 D cruickshanks-Boyd Appointed 24.7.12

For the Resources & Energy Sector Infrastructure Council, no members received remuneration.




Resources industry Development board

K yates chair P carr D carter B goldstein* ex officio R goldsworthy i gould g guglielmo^ P Heithersay* P Holloway g mcKenzie A mccleary J Roberts E Tyne* ex officio T Wanganeen J White R yeeles^

Roxby Downs Advisory Reference group

W cossey chair m gall* P Heithersay* P Holloway^ Appointed 1.10.12 N Jones^ m Kelledy^ Deputy member E Tyne* Deputy member

For the Roxby Downs Advisory Reference Group, only the Chair received remuneration.

The following advisory board reports to the minister for State Development:

invest in south Australia Advisory board

K Osborn chair D Thomas c Namblard B carter D Klingberg g Knight* ex officio J Hallion* ex officio L Worrall* ex officio R garrand* ex officio i Nightingale* ex officio Resigned 4.2.13 S Ashby* ex officio Appointed 4.2.13 g Roos Appointed 27.11.12

The following committees and panels are responsible to the minister for mineral Resources and Energy, but report to other government departments:

consumer Advisory committee

S canale^ A clarke Resigned 22.5.13 m Henley

P 106

09 Financial statements

RemuneRation of BoaRd and Committee memBeRs continuednote 31

Consumer advisory Committee continued

d Hossen H i'anson t Kelly P Walsh chair J Whittaker i Yates^

Members of the Consumer Advisory Committee are remunerated by the Essential Services Commission of South Australia.

electricity act 1996 assessors Panel

t Blackburn c cooper B Rajkowska d Round H sandstrom e Woodley

Gas act 1997 assessors Panel

o clark c cooper B Rajkowska W Ryan

Powerline environment Committee

i Brooks R crowley chair K Hamilton d Harvey m lee a lothian deputy chair Resigned 19.6.13 m magin m Bekavac* Resigned 17.5.13

Members of the Powerline Environment Committee were entitled to remuneration, which was paid by the Essential Services Commission of South Australia.

the following committee is a Parliamentary committee:

industries development Committee

l Breuer Presiding member P caica i evans s Griffiths B Rowse* s marshall* Resigned 29.11.12 m Wright Resigned 7.2.13 m G thompson Resigned 7.2.13




RemuneRAtion of boARD membeRs

The number of members whose remuneration received or receivable falls within the following bands is:

2013 number

2012 Number

$1 - $9 999 38 51 $10 000 - $19 999 2 2 $20 000 - $29 999 3 - $40 000 - $49 999 - 1 $70 000 - $79 999 2 -

total number of members 45 54

Remuneration of members reflects all costs of performing board / committee member duties including sitting fees, superannuation contributions, fringe benefits tax and any other salary sacrifice arrangements. The total remuneration received or receivable by members was $306 138 ($153 054).

Unless otherwise disclosed, transactions between members are on conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with the related party at arm's length in the same circumstances.

for the purpose of this table, the travel allowance paid to members has not been included as remuneration as it is considered to be a reimbursement of direct out-of-pocket expenses incurred by the relevant members.

2013 $’000

2012 $’000

Reconciliation of cash and cash equivalents at the end of the reporting period:

Reconciliation of cash – cash at 30 June 2013 as per Statement of financial Position: Deposits with Treasurer – Operating Account 16 125 20 609 Deposit with the Treasurer – Accrual Appropriation 5 039 4 456 Deposits at call – overseas offices 214 173 Other 1 1

balance as per the statement of cash flows 21 379 25 239

cAsh floW ReconciliAtionnote 32

for the purposes of the Statement of cash flows, cash on hand and on deposit includes cash deposits which are used in the cash management function on a day-to-day basis.

P 108


2013 $’000

2012 $’000

Reconciliation of net cash (used in) provided by operating activities to net result:

Net cash provided by operating activities (2 941) 14 246 Net cash paid to restructure 6 841 -

Add / (less) non cash items:

Depreciation and amortisation expense of non-current assets (2 290) (1 614)Amortisation of lease incentive 240 240 Asset write-downs and transfers - (144)Doubtful debts expense (7) - Loss from disposal of non-current assets (3) -

movements in assets / liabilities:

(Decrease) increase in receivables 1 679 1 931 (Decrease) increase in other assets (106) 48 Decrease (increase) in payables (1 980) (18 748)(increase) decrease in provisions (178) 132 increase in employee benefits (1 700) (2 491)

net Result (445) (6 400)

cAsh floW ReconciliAtion cONTiNUEDnote 32

2013 $’000

1.1.12 to 30.6.12*

$’000

Operations: Revenue 2 839 1 755 Expenditure 2 652 623

net operating surplus 187 1 132

2013 $’000

2012 $’000

Net assets: cash at bank 17 364 17 156 Receivables 7 28

net assets 17 371 17 184

tRust funDsnote 33

eXtRActive AReAs RehAbilitAtion funD

The Extractive Areas Rehabilitation fund is credited with amounts by way of royalty on extractive minerals and is used for the rehabilitation of land disturbed by mining operations. The funds collected are used to limit damage to any aspect of the environment by such mining operations in addition to the promotion of research into methods of mining engineering and practice by which environmental damage might be reduced.

Aggregate details of the transactions and balances relating to this trust fund to year ended 30 June are as follows:



events AfteR the RePoRting PeRioDnote 34

As at the date of this report there are no known or material events that have occurred after balance date.

2013 $’000

1.1.12 to 30.6.12*

$’000

funds: Balance of funds at beginning of period 17 184 16 052 Net receipts 187 1 132

fund balance at 30 June 17 371 17 184

commitments in place at 30 June 1 563 3 194

tRust funDs cONTiNUEDnote 33

* comparatives for the operating surplus are for six months only as the Extractive Areas Rehabilitation fund was transferred from the Department of Primary industries and Regions SA from 1st January 2012 as part of The Public Sector (Reorganisation of Public Sector Operations) Notice 2011 (dated 15 December 2011).

finAnciAl instRuments / finAnciAl RisK mAnAgementnote 35

Details of the significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised with respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 2 Summary of Significant Accounting Policies.

table 35.1: categorisation of financial instruments

category of financial asset and financial liability

statement of financial Position line item

Note No.

carrying amount

2013 $’000

fair value2013

$’000

carrying amount

2012$’000

fair value2012

$’000

financial assets

cash cash 20, 32 21 379 21 379 25 239 25 239Loans and receivables Receivables (1) (2) 6 567 6 567 11 416 11 416

total financial assets at cost 27 946 27 946 36 655 36 655

financial liabilities

financial liabilities at cost Payables (1) 10 503 10 503 23 632 23 632

total financial liabilities at cost 10 503 10 503 23 632 23 632

(1) Receivable and payable amounts disclosed here exclude amounts relating to statutory receivables and payables. in government, certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where rights or obligations have their source in legislation such as levy receivables/payables, tax equivalents, commonwealth tax etc they would be excluded from the disclosure. The standard defines contract as enforceable by law. All amounts recorded are carried at cost (not materially different from amortised cost).

(2) Receivables amount disclosed here excludes prepayments. Prepayments are not financial assets as defined in AASB 132 as the future economic benefit of these assets is the receipt of goods and services rather than the right to receive cash or another financial asset.

P 110


finAnciAl instRuments / finAnciAl RisK mAnAgement cONTiNUEDnote 35

Receivable amounts disclosed here exclude amounts relating to statutory receivables. The accounting standard requires disclosure of financial assets (receivables) resulting from contracts enforceable by law. in government, certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where rights or obligations have their source in legislation such as levy receivables, tax equivalents, commonwealth tax etc. they would be excluded from the disclosure. They are carried at cost.

fAiR vAlue

The Department for manufacturing, innovation, Trade, Resources and Energy does not recognise any financial assets or financial liabilities at fair value (refer to Note 2 Summary of Significant Accounting Policies and Notes 20, 21, 22, 24, 27 and 32).

cReDit RisK

credit risk arises when there is the possibility of the Department’s debtors defaulting on their contractual obligations resulting in financial loss to the Department. The Department measures credit risk on a fair value basis and monitors risk on a regular basis.

The Department has minimal concentration of credit risk. The Department has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history. The Department does not engage in high risk hedging for its financial assets.

Allowances for impairment of financial assets are calculated on past experience and current and expected changes in client credit rating. currently the Department does not hold any collateral as security for any of its financial assets. Other than receivables, there is no evidence to indicate that financial assets are impaired. Refer note 21 for information on the allowance for impairment in relation to receivables.

The following table discloses the ageing of not impaired financial assets, past due.

table 35.2: Ageing analysis of financial assets

Past due by

overdue for < 30 days $’000

overdue for 30 - 60 days $’000

overdue for > 60 days $’000

total$’000

2013 not impaired Receivables 1 680 247 171 2 098

2012 not impaired Receivables 1 049 657 96 1 802



table 35.3: maturity analysis of financial assets and liabilities

contractual maturities

carrying amount($’000)

< 1 year($’000)

1-5 years($’000)

> 5 years($’000)

2013 financial assets

cash 21 379 21 379 - -Receivables 6 567 6 114 453 -

total financial assets 27 946 27 493 453 -


Payables 10 503 10 503 - -

total financial liabilities 10 503 10 503 - -

2012 financial assets

cash 25 239 25 239 - -Receivables 11 416 10 462 954 -

total financial assets 36 655 35 701 954 -


Payables 23 632 23 632 - -

total financial liabilities 23 632 23 632 - -

liquiDity RisK

Liquidity risk arises where the Department is unable to meet its financial obligations as they fall due. The Department is funded principally from appropriation by the SA government. The Department works with the Department of Treasury and finance to determine the cash flows associated with its government approved program of work and to ensure funding is provided through SA government budgetary processes to meet the expected cash flows. The Department settles undisputed accounts within 30 days from the date of the invoice or date the invoice is first received. in the event of a dispute, payment is made 30 days from resolution.

The Department's exposure to liquidity risk is insignificant based on past experience and current assessment of risk.

The carrying amount of financial liabilities recorded in Table 35.1 represent the Department's maximum exposure to financial liabilities.

mARKet RisK

market risk through interest rate or price fluctuations is immaterial.

sensitivity DisclosuRe AnAlysis

A sensitivity analysis has not been undertaken for the interest rate risk of the Department as it has been determined that the possible impact on profit and loss or total equity from fluctuations in interest rates is immaterial.

finAnciAl instRuments / finAnciAl RisK mAnAgement cONTiNUEDnote 35

The following table discloses the maturity analysis of financial assets and financial liabilities.

P 114




Published October 2013.

No responsibility for any loss or damage caused by reliance on any of the information or advice provided by or on behalf of the State of South Australia, or for any loss or damage arising from acts or omissions made, is accepted by the State of South Australia, their officers, servants or agents. Produced by the South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy © October 2013. Content correct at time of printing.

DePARtment foR mAnufActuRing, innovAtion, tRADe, ResouRces AnD eneRgy

Level 9, The conservatory131-139 grenfell StreetAdelaide, South Australia 5000

gPO Box 1264Adelaide, South Australia 5001DX 452

T. +61 8 8303 2400f. +61 8 8303 2410E. [email protected]

Divisions AnD locAtions:

office of the chief executiveInvestment, Trade and Strategic ProjectsManufacturing and InnovationStrategy, People and Culture

Level 9, The conservatory131-139 grenfell StreetAdelaide, South Australia 5000

T. +61 8 8303 2400f. + 61 8 8303 2410E. [email protected]

Minerals and Energy Resources customer Services centreLevel 7, 101 grenfell StreetAdelaide, South Australia 5000


Energy Markets and ProgramsOffice of the Technical Regulator

Level 8, ANZ Building (city central Tower 1)11 Waymouth StreetAdelaide, South Australia 5000


Olympic Dam Task Force Level 9, 178 North TerraceAdelaide, South Australia 5000

T. +61 8 8303 2204f. +61 8 8303 2964