annual report 2014-15 · authorities annual reporting orders 2011 (annual reporting orders)...

ANNUAL REPORT

2014-15

Cover Image courtesy of Luke Taylor, SurfLife Australia Photography facebook.com/SurflifeAustraliaPhotography

i

VISIONSafe and clean seas, saving lives.

MISSIONEnsuring safe vessel operations, combatting marine pollution, and rescuing people in distress.

ASPIRATIONSThe Australian Maritime Safety Authority (AMSA) plays a custodial role in keeping Australia’s seas safe and clean, and providing search and rescue services.

To perform these roles, we have to think and operate in a forward-looking way, anticipating, assessing and making decisions today to meet tomorrow’s challenges.

We will:

• take the lead in maritime safety regulation, maritime environmental emergencies, and maritime and aviation search and rescue

• lead the implementation of measures promoting and giving effect to safety and environment policies, both nationally and internationally

• have strong and confident strategic partnerships with stakeholders

• be sought after as a preferred choice for career development and advancement

• support our operations and community through information systems that are linked, reliable and up to date.

PLAN ON A PAGEOur Plan on a Page (page V) captures our vision, mission and aspirations, and also describes our strategic challenges, goals and responses. Everything we do, as described in this annual report, is in response to these strategic challenges and in pursuit of these goals. Demonstration of the alignment between our activities and our strategic challenges is provided on each chapter’s cover page.

ii

STRATEGIC CHALLENGE 4INFLUENCING INTERNATIONAL ARRANGEMENTS

STRATEGIC CHALLENGE 5ENGAGING WITH THE COMMUNITY

STRATEGIC CHALLENGE 6ENSURING A VIBRANT AND PROGRESSIVE ORGANISATION

• Ensure safe shipping in Australian waters• Minimise emissions and discharges from ships in the marine environment• Respond efficiently and effectively to maritime casualties and marine pollution incidents• Save lives by coordinating search and rescue

• Minimise the regulatory burden with a single set of rules for domestic vessels and seafarers• Implement a modernised regulatory scheme for international trading and foreign vessels• Build and promote a quality international shipping register

• Have an active and competent maritime workforce• Reduce unnecessary barriers enabling increased pathways for participation within the maritime

industry• Ensure compliance with international standards for training certification and watchkeeping• Ensure decent working and living conditions for seafarers on board ships

• Have an Informed and engaged community on maritime issues, search and rescue issues, and AMSA’s role

• Be respected and trusted

• Make sure international standards reflect Australian expectations and international standards are reflected nationally

• Improve and promote maritime safety and environmental protection in our region• Have a strong regional voice in international fora• Make sure regional approaches align with International Maritime Organization priorities.

• Have a professional, flexible and engaged workforce that is change ready• Use technology to improve the services we deliver to do business anytime, anywhere• Maintain a level of funding that will sustain our service delivery into the future• Have effective and efficient processes and systems• Maintain a flexible pool of external and internal capability and resources

STRATEGIC CHALLENGE 3ENSURING A COMPETENT AND FAIRLY TREATED MARITIME WORKFORCE

STRATEGIC CHALLENGE 2KEEPING PACE WITH CHANGE

STRATEGIC CHALLENGE 1ADDRESSING GROWTH AND COMPLEXITY IN OUR OPERATING ENVIRONMENT

SC1

SC2

SC3

SC4

SC5

SC6

PLAN ON A PAGE

v

Our governance

Our people

Vessel and seafarer safety

Search and rescue

Marine environment

Navigation safety

Working with industry

Our activities

SC1

SC1

SC1

SC1

SC1

SC2

SC2

SC3

SC3

SC4

SC4

SC4

SC4

SC4

SC5

SC5

SC5

SC5

SC5

SC6

SC6

PLAN ON A PAGE

vi

24 September 2015

The Hon Warren Truss MPDeputy Prime MinisterMinister for Infrastructure and Regional DevelopmentParliament HouseCANBERRA ACT 2600

Dear Deputy Prime Minister

On behalf of the Australian Maritime Safety Authority (AMSA), I present to you the Annual Report for the reporting year 1 July 2014 to 30 June 2015.

The report provides a detailed description of AMSA’s operations during the year as well as financial statements and the Auditor-General’s report on those financial statements. This report has been prepared in accordance with the requirements set out in the Public Governance, Performance and Accountability Act 2013, the Commonwealth Authorities (Annual Reporting) Orders 2011, and in accordance with the Australian Maritime Safety Authority Act 1990.

The report is made in accordance with a resolution on 24 September 2015 of the Directors who are responsible, under section 46(1) of the Public Governance, Performance and Accountability Act 2013 for its preparation and content.

Yours sincerely

Stuart Richey AM

82 Northbourne Avenue, Braddon ACT 2612GPO Box 2181, Canberra ACT 2601p +61 (0)2 6279 5994m +61 408142337e [email protected]

TRANSMITTAL LETTER

vii

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) requires that corporate Commonwealth entities prepare an annual report in accordance with the relevant Rule (being the Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Rule 2015). Despite the transition to the PGPA Act from 1 July 2014, the Rule confirms that the Commonwealth Authorities Annual Reporting Orders 2011 (Annual Reporting Orders) continue to apply for the purposes of the Annual Report 2014-15. Accordingly, the AMSA Annual Report 2014-15 is presented in accordance with the Annual Reporting Orders and the Australian Maritime Safety Authority Act 1990.

The report is to be presented to the responsible minister by 15 October and requires the minister to table the report in both Houses of the Parliament as soon as practicable after receiving it. It is the government’s preferred policy that the reports be tabled by 31 October.

AMSA reports to the Australian Parliament and Government through the Deputy Prime Minister and Minister for Infrastructure and Regional Development, the Hon. Warren Truss MP.

Under the PGPA and AMSA Acts, the directors of AMSA (the members of the Board) are responsible for this annual report.

This report provides a review of activities undertaken in 2014-15, using the reporting arrangements set out in the Portfolio Budget Statements 2014-15 and the AMSA Corporate Plan 2013-18.

REPORTING REQUIREMENTS AND RESPONSIBLE MINISTER

REPORTING REQUIREMENTS AND RESPONSIBLE MINISTER

viii

VISION, MISSION & ASPIRATIONS iiPLAN ON A PAGE vTRANSMITTAL LETTER viiREPORTING REQUIREMENTS AND RESPONSIBLE MINISTER viiiCHAIRMAN’S REVIEW 2ORGANISATIONAL PROFILE 6

Enabling legislation 7Board & committees 7AMSA Board 7Board Audit Committee 8Remuneration Committee 8Organisational changes 9Structure 9

FINANCIAL SUMMARY 12

OUR GOVERNANCE 18AMSA Service Charter 20Government and parliament 20Planning and reporting arrangements 21Risk management 21Fraud control 21Public Information Disclosure Act 2013 22Business continuity 22Performance measurement 22Certified management system 22Financial management 23System upgrades 23Procurement 23Cost recovery 23Insurance and indemnities 23

OUR PEOPLE 26Our workforce 27Workforce Strategy 27Workplace relations 27Workplace diversity 27Workforce profile 28Learning and development 29Work health, safety and environment 30Workers’ compensation premium 31Environmental performance 32

VESSEL AND SEAFARER SAFETY 34International shipping 35Industry trends 35Ship inspections 35Creating a safety culture 36Qualifications 38Domestic commercial vessel safety 39National System streamlining 39Standards reform 39Governance arrangements 39Statement of Regulatory Approach 40Surveyor accreditation 41Industry liaison 41Training and education 41Safety management systems 41Qualifications 41Compliance and enforcement 43

TABLE OF CONTENTS

ix

SEARCH AND RESCUE 46National search and rescue service 47Notable 2014-15 incidents 47National Search and Rescue Council 49Distress beacons 49Search and rescue capabilities 49Technology developments 50Torres Strait Marine Safety Program 51Antarctic 51

MARINE ENVIRONMENT 54National Plan for Maritime Environmental Emergencies 55Training 55Response capability 56Emergency towage 58Protection of the Sea Levy reduced 58Coral Sea Particularly Sensitive Sea Area 59

NAVIGATION SAFETY 62Shipping management 63Shipping management plans 63Under keel clearance management 64Great Barrier Reef and Torres Strait Vessel Traffic Service 65Aids to navigation management 65Aids to navigation network 65Celebrating 100 years of Commonwealth management of aids to navigation 67

WORKING WITH INDUSTRY 70Domestic consultation and events 71Maritime 2014: Ship to Shore 72Engagement and communication tools 73Advertising and market research 73Our Registered Training Organisation 73Working internationally 74International Maritime Organization 74International Civil Aviation Organization 76International Association of Marine Aids to Navigation and Lighthouse Authorities 77Regional engagement 77

APPENDICES 80Appendix 1 Financial statements 81Appendix 2 Non-financial performance 133Appendix 3 Board members 143Appendix 4 Strategic risk profile 150Appendix 5 Marine Orders issued in 2014-15 154Appendix 6 AMSA’s functions and powers 156Appendix 7 Current publications 157

REFERENCES 166Acronyms and abbreviations 167Compliance index 169Index 173Annual report contact 178

TABLE OF CONTENTS

x

1CHAIRMAN’S

REVIEW

1

2

At AMSA, we are committed to maintaining our standing as a world-leading agency for maritime safety, environment protection, and search and rescue. This report contains detailed information on our achievements, challenges, and activities throughout the past financial year, a few of which I would like to highlight.

It has now been two years since AMSA took on the role of National Regulator for all commercial vessels—the biggest reform in our history. Under the National System for Domestic Commercial Safety (National System) AMSA has been working with state and territory marine agencies to implement ways to deliver a highly efficient and effective regulatory framework for operators. Our challenge now is to set a path for a National System that is consistent, streamlined and sustainable. AMSA is working with our delegates and industry to implement initiatives to simplify compliance.

As the National System continues to evolve, so does our role. Transport ministers and their officials have agreed that AMSA will assume full service delivery and cost recovery functions from July 2019, following a transition period commencing in July 2017. We are working to establish implementation arrangements and further detail around this decision.

Under the Navigation Act 2012, which commenced at the same time as the National System, AMSA can issue directions to vessels that may pose an increased risk to seafarers, vessels or the environment. For the first time since the introduction of the Act, these powers were exercised in 2014-15, banning 4 vessels from Australian ports for periods ranging from 3 to 12 months.

AMSA has continued working to create an industry safety culture through engagement at the International Labour Organization, Maritime Labour Convention training and inspections, the release of new ship safety videos, and an ongoing research study with the University of Queensland and the University of Western Australia.

Two major contracts were signed in 2014-15 to improve AMSA’s search and rescue capability. A new contract was signed with Cobham SAR Services Pty Ltd to provide the next generation aircraft dedicated to search and rescue from 2016. Under this contract, Cobham will provide a comprehensive service which includes owning, modifying, maintaining and operating three specifically-modified Bombardier Challenger jets. AMSA also conducted a joint approach with Maritime New Zealand to procure the Medium-altitude Earth Orbit Search and Rescue (MEOSAR) capability for the region. Once fully operational, the MEOSAR system will reduce beacon detection times, allowing us to respond more efficiently to distress situations.

As we look to the future, we are working to strengthen our capabilities to respond to shipping growth. Following the release of the North-East Shipping Management Plan in October 2014, AMSA is working on a National Shipping Management Plan due for release in 2015-16.

In July 2014 AMSA farewelled our emergency towage vessel Pacific Responder, with the Coral Knight taking over this role. The Coral Knight is not only responsible for providing an initial response to a casualty, but is also the primary platform for aids to navigation maintenance in its area of operation.

In 2015 we are marking the centenary of the Australian Government’s management of lighthouses and other aids to navigation in Australian waters. I was fortunate to attend the Commonwealth Lighthouse Service centenary celebrations in Brisbane and launch the commemorative stamps and coins developed to coincide with the centenary.

CHAIRMAN’S REVIEW

3

AMSA maintains a strong international presence through representation at various bodies, technical cooperation programs and in memoranda of understanding. AMSA has been a member of the International Maritime Organization’s Council for more than 40 years, and in 2014-15 we continued to play a vital role in this organisation, progressing initiatives in shipping management, safe carriage of cargo, environment protection and safety of life at sea. AMSA’s work is not limited to the maritime industry, with our representation at the International Civil Aviation Organization enabling us to play a key role in the improvement of aeronautical search and rescue services.

As Chairman of AMSA, I am proud of our achievements to date and, together with the Board and Executive, am committed to ensuring we are well placed to respond to future challenges.

I acknowledge the contributions of my fellow Board members, particularly former Chairman Leo Zussino who retired from the Board in November. In his six years at the helm, Leo made a valuable contribution to the organisation. Captain Fred Ross also retired in November after three years of valuable service to the Board.

I wish to recognise the exemplary leadership provided by AMSA’s new Chief Executive Officer Mick Kinley. Having started his career in the shipping industry, and joining AMSA as a marine surveyor in 1994, Mick brings a wealth of experience to the role.

To Deputy Prime Minister Warren Truss, his staff, and the Department of Infrastructure and Regional Development, I pass on our thanks for their continued support.

Finally, on behalf of the Board, I wish to thank the staff of AMSA. For a relatively small agency, we have a wide scope of operations. It is testament to the expertise and dedication of our staff that we are able to not only fulfil our duties, but play a vital role in the international maritime community.

Stuart Richey AM 24 September 2015

CHAIRMAN’S REVIEW

4

ORGANISATIONALPROFILE

2

6

AMSA BoardOur Board discharges its duties under the AMSA and PGPA Acts and has three main roles:

• providing significant strategic oversight of AMSA, on behalf of the responsible minister, by determining the overall manner in which various functions should be performed. In doing so, the Board expresses its understanding of the expectations of the minister within the context of:

• strategy setting and approval

• risk management

• operating framework

• communication and relationship management across the organisation

• reviewing and evaluating the performance of the Chief Executive Officer and senior management

• taking responsibility for AMSA’s resources with the financial oversight of AMSA’s budget and financial outlook, financial statements, compliance reports, and balance sheets; and approving major expenditure

• executing good governance by ensuring compliance with the PGPA Act, the AMSA Act, and operational legislation with corporate governance implications, while promoting careful, diligent, transparent and ethical conduct throughout the organisation.

The Board is appointed by the Minister for Infrastructure and Regional Development. Current Board members have experience in industry, financial and government institutions. All members work on a part-time basis, with the exception of the Chief Executive Officer.

Board members participate in presentations, workshops and discussions to deepen their knowledge in directors’ roles and board practices. In 2014-15 the Board members:

• received a presentation on the Public Governance, Performance and Accountability Act 2013 for Directors by Senior General Counsel, Australian Government Solicitors

• participated in Maritime 14: Ship to Shore, the inaugural national shipping and domestic commercial vessel conference

BOARD AND COMMITTEES

AMSA is the national agency responsible for maritime safety, protection of the marine environment, and maritime and aviation search and rescue. We are a statutory authority established under the Australian Maritime Safety Authority Act 1990 (AMSA Act) and as a Corporate Commonwealth Entity we are also subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Our principal functions are:

• promoting maritime safety and protection of the marine environment

• preventing and combating ship-sourced pollution in the marine environment

• providing infrastructure to support safety of navigation in Australian waters

• providing a national search and rescue service to the maritime and aviation sectors.

ENABLING LEGISLATION

7

• participated in a reception for the AMSA Advisory Committee in Canberra, AMSA’s key stakeholder group

• participated in a stakeholder reception in Port Lincoln, South Australia concentrating on discussions around maritime safety issues, and full service delivery for the National System for Domestic Commercial Vessel Safety (National System)

• toured domestic commercial vessel operations in Port Lincoln and received briefings from the Australian Maritime Fisheries Academy

• participated in a stakeholder reception in Cairns, Queensland concentrating on National System discussions

• undertook (via the Board Audit Committee) the Australian National Audit Office (ANAO) Better Practice Guide performance assessment for audit committees.

Appendix 3 lists Board members, their qualifications and experience, and attendance at Board meetings.

Board Audit CommitteeThe Board Audit Committee assists the Board in fulfilling its audit, accounting and reporting obligations in accordance with requirements of enabling legislation. The committee is independent from management and the present committee comprises of three people: two Board members and one independent member. All members have the appropriate qualifications, knowledge, skills and experience to assist the committee to perform its functions. The Chair of the committee and the members are appointed by the Board. Other Board members may attend committee meetings as observers.

The Board Audit Committee conducted 5 meetings in 2014-15 and reported directly to the Board after each meeting. During the year, the committee continued to focus on maintaining a sound financial system, performance reporting, systems of risk oversight and management, improving processes and procedures for internal and external audit reporting, and ensuring that we comply with the requirements of the PGPA Act and other relevant Acts.

Membership of the Board Audit Committee and attendance at meetings are listed at Appendix 3.

Remuneration CommitteeThe Remuneration Committee assists the Board in considering senior executive remuneration matters and issues arising from the Remuneration Tribunal. The committee reports its findings, decisions and recommendations to the Board. The Remuneration Committee conducted one meeting and had one out of session paper during 2014-2015.

Membership of the Remuneration Committee and meeting attendance are listed in Appendix 3.

ORGANISATIONAL PROFILE

8

NorthernTerritory

Queensland

New South Wales

Victoria

SouthAustralia

WesternAustralia

CAIRNS

TOWNSVILLEAIRLIE BEACHMACKAY

GLADSTONE

BRISBANE

NEWCASTLESYDNEY

PORT KEMBLA

CANBERRA

DEVONPORTLAUNCESTON

MELBOURNE

ADELAIDE

FREMANTLE

GERALDTON

KARRATHA

PORT HEDLAND

DARWIN

THURSDAY ISLAND

There were many changes to our Executive and Board in 2014-15.

• Mick Kinley was appointed Chief Executive Officer in August 2014.

• Michael Taylor AO FTSE was appointed to the Board in September 2014.

• Leo Zussino, Board Chairman, and Captain Fred Ross, Board member, departed in November 2014.

• Stuart Richey AM commenced as our new Board Chairman in November 2014.

• Gary Prosser was appointed Deputy Chief Executive Officer in January 2015.

• Professor Sarah Derrington was reappointed to the Board in June 2015.

• Gary Webb and Peter Toohey were appointed to the Board in June 2015.

Our organisational structure is shown on the following page.

A map showing our national presence is below:

ORGANISATIONAL CHANGES

STRUCTURE

9

CHIEF EXECUTIVE OFFICERMick Kinley

DEPUTY CHIEF EXECUTIVE OFFICERGary Prosser

ORGANISATIONAL PROFILE

CORPORATE SECRETARYRobyn Rowntree

BOARD

Chairperson Stuart Richey AM

Deputy Chairperson Jennifer Clark

Board Members Dr Russell Reichelt Prof. Sarah Derrington Mike Taylor AO FTSE Gary Webb Peter Toohey

Departmental Member Andrew Wilson

Chief Executive Officer (Ex Officio) Mick Kinley

SHIP SAFETYGeneral Manager: Allan Schwartz– Ship inspection– Ship operations and qualifications– Shipping Registration Office– Compliance and enforcement

NAVIGATION SAFETY AND INTERNATIONAL RELATIONSGeneral Manager: Brad Groves– Aids to navigation– International relations– Nautical & regulation– Vessel traffic and pilotage services

MARINE ENVIRONMENTGeneral Manager: Toby Stone– Management of the National Plan– National maritime emergency response arrangements– Environmental protection standards and liability arrangements

DOMESTIC VESSELSGeneral Manager: John Fladun– National System Implementation– National Standards– Coordination of training and safety education– Industry support– Liaison and reporting

OFFICE OF LEGAL COUNSEL (OLC) & OFFICE OF LEGISLATIVE DRAFTING (OLD)– Legal advice, support and representation (OLC)– Drafting of Marine Orders (OLD)

SEARCH AND RESCUEGeneral Manager: John Young– Joint Rescue Coordination Centre Australia– Search and Rescue Operations– Search and Rescue Resources and Training– SAR System Engagement & Policy

CORPORATE SERVICESGeneral Manager: Cherie Enders (A/g)– Finance and business services– People and development– Information technology services– Planning, portfolio and performance

CORPORATE RELATIONSGeneral Manager: Mal Larsen– Communication– Stakeholder engagement– Media– Ministerial and parliamentary liaison– AMSA Connect

10

1FINANCIALSUMMARY

3

12

AMSA Canberra Office

13

Financial overviewOur financial result for 2014-15 was influenced by the following significant activities.

The Protection of the Sea Levy (PSL) was reduced by 3 cents per net registered tonne to 11.25 cents on 1 July 2014 as the Pacific Adventurer oil spill incident was settled and a $10 million pollution response reserve was established in the prior financial year. This generated a reduction in levies to the shipping industry in the order of $9 million for the year.

Our revenue performance was weighed down by the downturn in the Australian commodities sector driven by a drop in demand growth which resulted in reduced shipping activity for the year. The reduced shipping activity translated into levy revenue being below expectations for the year.

To meet the decline in operating revenue, savings strategies where successfully implemented to absorb the reduction in revenue without impacting on the delivery of regulatory services.

Looking forward to 2015-16 and beyond, we will face continued pressures on operating revenue as well as incurring additional implementation costs for the National System for Domestic Commercial Vessel Safety (National System) as we assume responsibility for service delivery under the National System from 1 July 2019. These pressures will not be able to be absorbed solely by continued cost reduction strategies. We will meet these challenges by drawing down on our retained surpluses and by operating in a deficit budget. Notwithstanding this, we will remain financially viable as our projected cash balances are sufficient to meet our future commitments as they fall due.

Financial outcomeWe achieved an operating surplus of $0.4 million in 2014-15, compared with a $2.5 million surplus in 2013-14. The decrease in surplus of $2.1 million relates to decreased revenue of $6.0 million offset by decreased expenditure of $3.9 million.

Our revenue decrease was mainly due to the reduction of the PSL by 3 cents per net registered tonne and reduced revenue growth projections driven by a downturn in shipping activity. The main drivers resulting in decreased expenditure this year were a significant one-off expense which occurred in 2013-14 for business restructuring, and provisions for removal of asbestos at various aids to navigation sites. Furthermore, in this financial year we experienced reduced search and rescue activity and successfully achieved other planned savings initiatives.

FINANCIAL SUMMARY

10.2 10.6

2.1 2.52013-14 0.4

2014-15

2012-132011-122010-11

Figure 1 Operating result over financial years 2010-11 to 2014-15 ($millions)

FINANCIAL SUMMARY

1414

RevenueTotal revenue decreased by $6 million in 2014-15 primarily due to the reduction of the PSL and reduced revenue growth projections driven by a downturn in shipping activity. This has been partially offset by increased revenue from various government funding projects.

In 2014-15, 55 per cent of our revenue was derived from levies and 35 per cent from government funding. The remainder came from rendering of services and other sources.

55% LEVIES

2% OTHER

35%FUNDING FROMGOVERNMENT

8%RENDERINGOF SERVICES

Figure 2 Revenue for 2014-15

Revenue has decreased by three per cent overall from last financial year. The main revenue source contributing to this decrease were levies and rendering of services.

2010-11

0 50 100 150 200

2011-12

2012-13

2013-14

2014-15

LEVIES

FUNDING FROM GOVERNMENT

RENDERING OF SERVICES

OTHER

$MILLIONS

Figure 3 Change in revenue from 2010-11 to 2014-15

15

Expenses Total expenditure in 2014-15 decreased by $3.9 million compared to 2013-14. This was primarily due to the one-off expenditure which occurred in 2013-14 for business restructuring and provisions for removal of asbestos at various aids to navigation sites. This year, reduced search and rescue activity and various savings initiatives also contributed to the reduction in expenditure. This reduction was offset by increased staff costs driven by enterprise agreement wage increases and costs associated with decommissioning of certain aids to navigation assets that were damaged in unforseen events.

In 2014-15, 63 per cent of expenditure went to suppliers, 29 per cent on employee benefits, 7 per cent on depreciation, and 1 per cent on other expenses.

29%EMPLOYEEEXPENSES

7%DEPRECIATION

1% OTHER

63% SUPPLIEREXPENSES

Figure 4 Expenditure for 2014-15

Areas of expenditure, in percentage terms, remain broadly in line with that of last financial year.

2010-11

0 50 100 150 200

$MILLIONS

2011-12

2012-13

2013-14

2014-15

SUPPLIERS

EMPLOYEES

DEPRECIATION

OTHER

Figure 5 Change in expenditure from 2010-11 to 2014-15 Further details of AMSA’s financial position can be found in Appendix 1 - Financial statements.

FINANCIAL SUMMARY

16

1OUR

GOVERNANCE

4SC6

18

Ensuring compliance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the supporting rules and guidance; and preparation for the introduction of the Regulator Performance Framework (effective 1 July 2015), were major areas of focus for us this year.

Our responses included:

Action Reason Response

PGPA transition plan Implement a formal, structured approach to managing transition to provide higher levels of assurance that requirements are met

• PGPA transition governance and coordination arrangements established

• Corporate Plan updated

• Performance measures updated

• Staff education and awareness sessions

• Accountable Authority Instruction review underway

Regulator Performance Framework implementation

Encourage regulators to undertake their functions with minimum impact necessary

• Identification of candidate measures

• Streamlining and aligning measures with other performance reporting arrangements (i.e. annual report)

• Engagement with the AMSA Advisory Committee as the external review body

The consequential amendments to the PGPA Act, and the incremental introduction of the rules and guidance that give effect to the PGPA Act, means that we need to remain vigilant for any changes and subsequent impacts. Our PGPA Act transition governance and coordination arrangements, in collaboration with our Office of Legal Counsel, are our principal controls to manage this risk.

To ensure that AMSA is operating in line with best practice, the Board Audit Committee reviewed its operations against the ANAO’s Better Practice Guide for Public Sector Audit Committees published in March 2015, and the Institute of Internal Auditors was commissioned to undertake a review of internal audit in AMSA.

We also appointed a new internal audit service provider for a period of 3 years, commencing on 1 July 2015.

OUR GOVERNANCE

19

OUR GOVERNANCE

Our service charter sets out our service standards and complaints procedures. During the year eight complaints were reported to our Quality Assurance Subcommittee. The subcommittee noted that the majority of complaints related to seafarer qualification processes.

Throughout 2014-15 we worked closely with the Department of Infrastructure and Regional Development to provide briefings and responses to ministerial correspondence for the Deputy Prime Minister and Minister for Infrastructure and Regional Development.

Senior executives appeared at the Senate and Rural and Regional Affairs and Transport Legislation Committee for Supplementary, Additional and Budget estimates hearings and Parliamentary inquiries. We provided written submissions and senior officers attended public hearings of the Senate Environment and Communications References Committee inquiry into the adequacy of arrangements to prevent the establishment of invasive species likely to harm Australia’s natural environment; the Foreign Affairs, Defence and Trade References Committee inquiry into Australia’s future activities and responsibilities in the Southern Ocean and Antarctic Waters in September 2014; the Joint Standing Committee on Treaties public hearing examining Amendments to the Annex of the Protocol of 1997 relating to the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1987 relating thereto in March 2015; and the Joint Standing Committee on Treaties public hearing examining Resolution A.1070(28) of the International Maritime Organization (IMO) Instrument Implementation Code and amendments to various IMO treaties in May 2015.

Judicial decisions / decisions of administrative bodiesIn 2014-15 we were party to matters before the Administrative Appeals Tribunal, the Federal Court of Australia and assisted Coronial Inquiries held in New South Wales and Queensland. None of these matters resulted in findings that have had, or may have, a significant effect on our operations.

Reports (Auditor-General, Parliament or Ombudsman)We were not the subject of any reports made by the Auditor-General, a Parliamentary Committee, the Commonwealth Ombudsman, or the Office of the Australian Information Commissioner in 2014-15.

Ministerial directions, policies and noticesUnder sections eight and nine of the AMSA Act, the minister may give us written directions with respect to the performance of our functions. No ministerial directions within the meaning of these sections were issued by the Minister for Infrastructure and Regional Development during the year.

AMSA SERVICE CHARTER

GOVERNMENT AND PARLIAMENT

JUDICIAL DECISIONS AND REVIEWS BY OUTSIDE BODIES

20

We have adopted an integrated planning and reporting approach. This approach combines business planning with financial planning and budgeting, risk management, and performance monitoring and reporting.

A central consideration in planning is alignment. All activities undertaken by AMSA contribute directly to our strategic goals as outlined in our Strategic Vision 2013-33, Corporate Plan, and Plan on a Page. Disciplined and structured planning has provided several benefits:

• better visibility of core business and change activities

• managers can ensure there is clear line of sight between their business activities and AMSA’s strategic goals

• staff understand the contribution they make to our strategic direction, and understand what is expected of them—reflected in engagement results and individual performance agreements

• demand for resources can be matched against capacity and capability

• supports evidence-based decision making when new business requirements emerge, or priorities change

• supports performance monitoring and reporting.

We have a mature risk management culture which permeates all levels of our organisation. Our core business is primarily one of risk management—requiring constant monitoring of all activities undertaken both within and outside Australia’s immediate maritime environment.

The increasing volume of vessel traffic and offshore activities has the potential to increase the likelihood of incidents and consequential environmental damage and/or regulatory challenges. We must ensure that we have adequate measures in place to manage and mitigate existing and arising risks, but at the same time be mindful of our regulatory function, be cost effective and develop practice solutions controls.

Our risk management policy, framework and guidelines are aligned with better practice methodologies and consistent with the international standard on risk management (AS/NZS ISO 31000:2009) and the Commonwealth Risk Management Policy 2014. Further, we have revalidated our risk management practices to ensure they support our obligations under the PGPA Act.

During the year we conducted two formal risk management reviews of our organisation as a whole, as well as two reviews of each division. Our risk management program helps us to proactively manage our risks, reduce our exposure to financial and reputational harm, and optimise our use of resources. Strategic risks are actively monitored and shared with key stakeholders, including our Board.

Our strategic risk profile is detailed in Appendix 4.

Our Fraud and Corruption Control Plan, which includes a fraud risk assessment, was approved by the Board in June 2014.

We participated in the annual fraud survey conducted by the Attorney-General’s Department, which reports fraud data to the Australian Institute of Criminology. There were no cases of fraud in AMSA reported during the year. There was one instance of irregularity that was resolved, after investigation, as not being fraudulent.

All of our new employees were provided with fraud awareness training during their induction, and the online fraud awareness refresher training module was updated. Overall, we are satisfied that we have adequate fraud control measures in place to comply with the Commonwealth Fraud Control Guidelines (2011).

PLANNING AND REPORTING ARRANGEMENTS

RISK MANAGEMENT

FRAUD CONTROL

21

OUR GOVERNANCE

Our Command Plan and divisional business continuity plans were updated this year. Transition to an external information technology service provider initiated a review of our critical function plans, and in particular, the maximum tolerable outage periods for our key information technology infrastructure assets. The Business Continuity and Security Subcommittee met three times, including an extraordinary meeting in October 2014 to review our preparedness for a pandemic.

Our Corporate Plan contains key performance measures for each of our strategic challenges. Achievement against these performance measures is outlined in this report.

In early 2014, in anticipation of the PGPA Act, we undertook an extensive review of our performance measures. The focus this year was on updating and aligning our Corporate Plan and Portfolio Budget Statements to reflect this work, and to ensure we meet the requirements of the Regulator Performance Framework (effective 1 July 2015).

Changes to the underlying government legislation of AMSA, including transition to the PGPA Act, has seen an increased focus on our assurance and control framework.

The Management System and audit program are an important component of our assurance processes. Major activities during the year included a review of the recommendations from our 2014 management system health check (and commencement of the subsequent action plan); delivering the management system audit program (14 audits); conducting surveillance audits with our recertification partner; and planning to better synchronise management system audit activity with other audit activity in AMSA.

We are committed to continuous improvement. A key part of demonstrating our commitment is comparing what we do against international best practice—as captured in the three quality standards we are certified against:

• AS/NZ AS/NZS ISO 9001: 2008 Quality Management Systems

• AS/NZS 4801: 2001 Occupational Safety and Health

• AS/NZS ISO 14001: 2004 Environmental Management Systems.

Under these standards we are required to reaffirm our commitment annually by publishing a Business Policy signed by the Chief Executive Officer. This policy is included in our Corporate Plan.

Under Section 76 of the Public Information Disclosure Act 2013 (PID Act), agencies are required to report on the operation of public information disclosure in their organisation. There have been no reportable PID Act disclosures during the year.

We have published a Chief Executive Officer PID Directive (policy) and Procedures; appointed Authorised Officers; developed a mandatory online training module for all staff; and have delivered staff awareness sessions.

BUSINESS CONTINUITY

PERFORMANCE MEASUREMENT

CERTIFIED MANAGEMENT SYSTEM

PUBLIC INFORMATION DISCLOSURE ACT 2013

22

System upgradesDuring the year we upgraded our finance and human resource/payroll Financial Management Information System.

We continued to roll-out enhancements to our levy management system through the release of software patches to improve usability and performance, together with new service offerings which delivered increased functionality. These system changes included: automation of ship movement data; automated and improved alert systems; phase one development of smartphone/tablet access app; and system stability and integrity improvements.

ProcurementWe are compliant with the Commonwealth Procurement Rules (in achieving ‘value for money’ procurement) when purchasing goods and services. Throughout the year we have facilitated tendering and letting of the following long-term strategic service contracts:

• Dedicated Airborne Search and Rescue Service (page 49)• Medium-altitude Earth Orbit Search and Rescue (MEOSAR) capability (page 50)• Fixed Wing Aerial Dispersant Capability (page 56)• outsourcing components of the information and communications technology function• establishment of the maritime reform panel for the National System for Domestic Commercial

Vessel Safety• telecommunications contract.

Cost recoveryWe are required to follow Australian Government Cost Recovery Policy when setting charges to the shipping industry, primarily through levies and fee-for-service charges. Further details regarding our cost recovery activities are available in our Cost Recovery Implementation Statement on our website (amsa.gov.au).

During the year we participated in the portfolio charging review for the Department of Infrastructure and Regional Development and outcomes were brought forward in the 2015-16 budget context. We redeveloped our Cost Recovery Implementation Statement to meet the new requirements under the revised Australian Government Cost Recovery Guidelines. This statement will be published in early 2015-16.

The Protection of the Sea Levy was reduced as of 1 July 2014 (page 58).

Insurance and indemnities We provide insurance cover to Board Members and other officers in line with the PGPA Act. We are required by the Australian Government to use Comcover for our insurance needs. Comcover’s relevant insurance policy covers legal liability (including legal costs) for our Board members and employees. The premium paid for this insurance for 2014-15 was $37,327 (GST exclusive). We indemnify our staff from liability when acting in good faith (without recklessness or gross negligence) in the course of their employment with AMSA.

FINANCIAL MANAGEMENT

23

1OUR PEOPLE

5SC6

26

Throughout 2014-15 we continued to support the development of our organisational capability through introducing more contemporary, integrated and effective people management practices that are designed to support us in achieving our operational and strategic goals.

Workforce StrategyThe Workforce Strategy outlines our approach to managing and developing our workforce to address current and future challenges faced by our organisation. The strategy is a key supporting document to the AMSA Corporate Plan 2014-18. As of 30 June 2015 it is under review in light of our developing mandate - especially in relation to the National System for Domestic Commercial Vessel Safety.

This year we progressed initiatives designed to equip our people to continue to be adaptable and responsive in an environment where we are expected to do more with the resources we have available. In particular, we focussed on building management capability in relation to employee performance management, supporting workplace diversity, and further developing our management information systems and reporting on people-related matters.

We have continued to strengthen our reputation as an ‘employer of choice’ through more focussed recruitment activity (i.e. we reviewed and adjusted our internal processes to make sure we are attracting the most suitable applicants); our responses to the learnings from our 2014 Employee Survey; and the delivery of the AMSA Diversity Plan. The results of our third employee survey indicated sustained levels of engagement at the highest level. We have consistently achieved a very high level of employee engagement since 2008 when compared with both government and industry sectors. Our priority from a people perspective is to maintain this level of engagement throughout our operational and strategically-focussed endeavours.

Workplace relationsThe AMSA Enterprise Agreement 2012-2015 expires on 5 September 2015. In 2014-15 preparations commenced for the negotiation of a new agreement that will comply with the new Australian Government Bargaining Policy (introduced in March 2014). Formal negotiations for a replacement agreement commenced in June 2015 and are expected to continue for several months.

At 30 June 2015:

• 88 per cent of employees were employed under the Enterprise Agreement, in comparison to 87 per cent of employees being engaged under the Enterprise Agreement in the previous year

• less than 1 per cent of employees are engaged under Australian Workplace Agreements

• 11 per cent of employees are engaged through common law contracts.

Workplace diversityWe acknowledge the value of supporting a diverse workforce that is representative of the community we serve. In order to continue to build on the value of a diverse workforce, we released the AMSA Diversity Plan 2014-2017 which sets out initiatives to support the identification and removal of barriers which may prevent full and equitable participation in the workplace. In consultation with employee representative groups, we have developed an implementation plan to deliver these initiatives over the next three years.

As at 30 June 2015, we had three Indigenous employees (0.78 per cent of our workforce). One of the initiatives of the AMSA Diversity Plan 2014-2017 aims to identify opportunities for targeted employment programs of Indigenous-specific positions, such as Indigenous graduates/traineeships.

OUR WORKFORCE

27

OUR PEOPLE

Disability ReportIn 2014-15, AMSA continued to support the implementation of the Disability Discrimination Act 1992 and the Commonwealth Disability Strategy by ensuring its policies and procedures meet the needs of people with disabilities. AMSA encouraged all staff to consider the impact of their professional actions on people with disabilities, and to foster an environment that provides equity for people with a disability.

Workforce profileAs at 30 June 2015, we employed a total of 384 employees, with 295 employees based in our Canberra offices and 89 in regional offices. By comparison, at 30 June 2014, we employed 375 people. The increase in staff numbers this year was distributed across all divisions of the organisation. The annual employee turnover for 2014-15 was 10 per cent.

Table 1: Number of staff by classification at 30 June 2015

* Renewable performance-based contracts **RCC – Rescue Coordination Centre ***SARO – Search and Rescue Officer

Non-ongoing Ongoing Total all employees

Full-time Part-time Casual Full-time Part-time

F M F M F M F M F M Chief Executive* 1 1Executive Manager* 8 8Senior Manager* 5 26 1 2 34RCC Chief** 4 4Senior SARO*** 15 1 16SARO 2 17 19Port Marine Surveyor 5 40 1 46AMSA 8 1 2 4 26 33AMSA 7 9 6 2 1 5 28 3 54AMSA 6 4 7 1 20 30 2 64AMSA 5 9 4 1 1 20 13 2 50AMSA 4 1 25 1 1 28AMSA 3 3 2 1 6 1 1 14AMSA 2 1 1 7 1 2 1 13AMSA 1

Total 30 61 6 4 4 89 176 12 2 384

28

At 30 June 2015, our gender workforce demographic consisted of 137 females (36 per cent of our workforce) and 247 males (64 per cent of our workforce). At that time, 56 per cent of our workforce was 46 years or older and 22 per cent was over the age of 56. This reflects that many employees join AMSA as a second career and bring substantial experience and knowledge to contribute towards our endeavours.

Figure 6: Employee age profile at 30 June 2015

Learning and developmentDuring 2014-15, we continued to build upon our capability delivering high quality e-learning courses. With the introduction of new legislation, a number of e-learning courses were rolled out to employees to assist them in understanding the new requirements that impact their work. Specifically, the Governance Awareness course was made available to all our employees as a refresher on important compliance and organisation requirements.

Our efforts in e-learning have been recognised through the national LearnX Learning and Development Awards.

YEARS

AND UNDER

25

Figure X – Employee age pro�le, 30 June 2014

030

60

90

120150

YEARS

AND ABOVE

56YEARS

26-3

5YEARS

36-4

5YEARS

46-5

5

29

OUR PEOPLE

Work health, safety and environment management is an important component of our compliance and workplace health, and is central to our commitment to quality management. These principles are maintained through the national and international accreditations we hold and represent a commitment to a healthy, safe and environmentally-responsible approach in all of our actions, policies and procedures. We are committed to the Work Health and Safety Act 2011 and Environment Protection and Biodiversity Conservation Act 1999 (Section 516A).

Day-to-day health and safety issues are addressed by managers with assistance and advice (if required), from AMSA’s Health Safety and Environmental Committee, which comprises 12 Health and Safety Representatives, 4 management representatives and 2 technical advisers. Health and Safety Representatives are elected by our employees and represent designated work groups throughout the organisation. The committee met four times in 2014-15.

We have a strong commitment to preventing work health and safety incidents within the organisation. During 2014-15, 33 incidents were reported - 6 of which did not require any medical or first aid treatment. A total of 18 incidents related to contractors engaged by AMSA. One incident was reported to Comcare.

Figure 7: Health and safety incidents by category for 2014-15

Health and safety incidents that result in an injury are categorised according to the cause of the injury. The most common cause of injury during the year was ‘slip, trip and falls’ (29 per cent).

Figure 8: Health and safety incident statistics for 2014-15

WORK HEALTH, SAFETYAND ENVIRONMENT

CUT BYSHARP OBJECT

CHEMICAL ANDOTHER SUBSTANCES

CRUSH/JAMMING

MENTALSTRESS

SLIP, TRIPAND FALLS

BODYSTRESSING

MOTOR VEHICLEACCIDENT

MULTIPLEMECHANISMS

OTHER

HIT BYMOVING OBJECT

BODY PARTHITS OBJECT

4%4%

21%

29%

14%

7%

7%4%

3%3%

4%

38%

6%31%

25%NEAR MISS

FIRST AIDINJURY

LOST TIMEINJURY

MEDICALLYTREATED INJURY

30

2014-15 2013-14 2012-13 2011-12

Total incidents 33 18 24 26

Total days lost to injury (days) 180 21 0 1

Number of lost time incidents 1 2 9 1

Number of workers’ compensation claims 1 3 1 3

Number of notifiable Comcare incidents 1 0 0 5 Table 2 – Time lost to injury

Workers’ compensation premium Our workers’ compensation premium decreased from $262,069 in 2013-14 to $236,470 in 2014-15. Our premium rate of 0.5 per cent continues to remain well below the overall scheme premium rate of 1.93 per cent.

Figure 9: Our workers’ compensation premiums compared to the Commonwealth average

2011-12

COMMONWEALTHAVERAGE

AMSA

2012-13 2013-14 2014-150.0%

0.5%

1.0%

1.5%

2.0%

31

ENVIRONMENTAL PERFORMANCEWe actively promote the requirements of an internationally-recognised Environmental Management System (ISO 14001). Part of this process involves our Executive reviewing our activities annually to identify any potential risks those activities may pose to the environment.

In 2014-15 we completed an energy audit of all of our offices. The purpose of this audit was to identify sources of energy use and opportunities for energy savings. We also continued to collect data from a range of sources to help monitor the impact our activities may be having on the environment. This included our consumption of water, waste and electricity. The electricity usage in our Canberra office decreased by 2 per cent from 2013-14 to 2014-15.

2014-15

32

VESSEL ANDSEAFARER

SAFETY

6SC1 SC2 SC3 SC4 SC5

34

Industry trendsIn 2014-15 overall growth in activity by the foreign fleet moderated somewhat from previous years, with 27,167 port visits (by 5643 individual ships), an increase of 2 per cent over the 26,638 in the previous year. The carrying capacity of this fleet, in deadweight tonnage terms, grew by 6.6 per cent as ships were, on average, 4.6 per cent larger per port visit. Their average age was 8.5 years, compared to 8.2 years in 2013-14.

We have commissioned an analysis of the expected growth rates in shipping out to 2025 from 30 ports around the coastline. This analysis will focus on the routes expected to be taken by shipping, to identify potential increases in traffic density at certain points within the Australian Exclusive Economic Zone. It is also expected to identify how these likely changes in shipping traffic to and from Australia may impact on the main north-south routes in the waters of Indonesia and Papua New Guinea.

Ship inspectionsPort State control (PSC) is the inspection of foreign ships in national ports. These inspections verify that the condition of the ship and its equipment comply with the requirements of international regulations and that the ship is manned and operated in compliance with these rules.

In 2014-15 we undertook 10,228 inspections of some 20 different types to ensure the safety of ships and their cargoes. This included 4106 PSC inspections of foreign ships, plus 3754 follow-up inspections of ships to ensure that corrective action had been taken in respect of deficiencies identified at previous inspections within Australia or by other maritime safety administrations within the Asia-Pacific region.

In the year, we undertook 84 flag State control (FSC) inspections of 68 Australian-flagged ships, finding 289 deficiencies. The average age of these ships was 14.4 years.

Redevelopment throughout 2014-15 of our main database application systems for recording ship and cargo inspections, marine incidents and seafarers’ qualifications (see page 38 - Qualification system improvements) will be completed in 2015-16. Modernisation of these systems will allow more effective analysis of safety issues and outcomes, better identification of causal factors with incidents, and more efficient processing of qualifications.

INTERNATIONAL SHIPPING

35

VESSEL AND SEAFARER SAFETY

Directions and prosecutionsUnder the Navigation Act 2012, we can issue directions to vessels that may pose an increased risk to seafarers, vessels or the environment. For the first time since the introduction of the Act, we exercised these powers in 2014-15. The below vessels were banned (for defined periods) from Australia ports due to ongoing issues.

Date Vessel Flag State Reason for ban Length of ban

25 August 2014

Vega Auriga Liberia Repeated breaches relating to seafarer welfare and ship maintenance—ship was detained 3 times since July 2013

3 months

24 November 2014

Territory Trader*

Indonesia Repeated detentions (3 since July 2013) and a history of machinery and equipment malfunctions, and breakdowns

3 months

9 January 2015

Meratus Sangatta*

Indonesia Ship was detained 3 times since November 2012 and twice since November 2014

3 months

31 January 2015

Red Rover* Indonesia Ship was detained 3 times since September 2014

12 months

*All three vessels (operated by PT Meratus Line) repeatedly demonstrated that they were not operating, or being managed, to meet applicable standards despite repeated advice to take action.

Under the Protection of the Sea (Prevention of Pollution from Ships) Act 1983 ships can be prosecuted for polluting Australian waters. In 2014-15, two such prosecutions were completed.

Date Vessel Flag State Incident Fine

July 2014 Morning Midas United Kingdom

Pollution incident in Port Phillips Heads, August 2013

Owner - $5000 (plus costs)

November 2014 Xin Tai Hai Panama Illegal disposal of garbage near Gladstone, June 2014

Owner - $20,000

Master - $6000

Creating a safety cultureIn August 2014 we created a new section which concentrates on the areas of seafarer welfare, human factors, data recording and analysis, safety management, and occupational health and safety. In February 2015 we launched a biannual safety bulletin, which identifies trends in maritime incidents in Australian waters with the aim of raising safety awareness. Each issue focusses on a topic relevant to maritime safety and explores safety trends, human factors, incident data, and accident investigations. The first issue focussed on working at heights and is available on our website (amsa.gov.au).

36

Seafarer welfareIn August 2013 the Maritime Labour Convention, 2006 (MLC, 2006) came into force, both internationally and in Australia. Since that time, we have worked to strengthen our ship inspection regime. All of our marine surveyors have now completed AMSA-specific MLC, 2006 training, while management and surveyor workshops have identified ways to provide greater inspection consistency.

Since July 1 2014, MLC, 2006 compliance has been confirmed as part of all port State control inspections. On 109 occasions, inspections were triggered by a complaint that was received from a seafarer or other person with a concern for seafarer welfare.

The following table provides statistics with respect to our MLC, 2006 activities over the year.

Vessel type Total deficiencies

MLC, 2006 deficiencies

Total detainable

deficiencies

MLC, 2006 detainable

deficiencies

Total detentions 2014-2015

MLC, 2006 detentions

Bulk carrier 6853 1045 231 14 165 10

Chemical tanker 241 68 3 0 3 0

Container ship 976 204 45 4 29 4

Gas carrier 70 12 1 0 1 0General cargo / multi purpose ship 766 114 39 1 27 1

Livestock carrier 235 40 8 0 5 0

Oil tanker 451 167 21 8 13 5

Vehicle carrier 318 48 5 0 5 0

Other ship types 1172 127 59 2 32 1

Totals 11,082 1825 412 29 280 21

Table 2: MLC, 2006 results for 2014-15

Occupational health and safetyIn October 2014 one of our officers attended an International Labour Organization (ILO) meeting on maritime occupational safety and health. The meeting, held in Geneva, sought to develop a guideline document for flag States on the implementation of the occupational health and safety requirements of the MLC, 2006.

Australia’s national maritime occupational safety and health legislation, the Occupational Health and Safety (Maritime Industry) Act 1993, already meets the majority of the requirements of the new ILO guidelines. A review of the Act’s underlying codes of practice is being carried out and will ensure that Australia is well placed to meet its international maritime occupational health and safety obligations.

New ship safety videosIn October 2014 we launched a new series of information videos on ship safety.

The videos are available on our website (amsa.gov.au):

• a 25-minute port State control (PSC) training video for use by ships’ crews and operators and a 5-minute advisory video on PSC

• a 5-minute advisory video on the Maritime Labour Convention, 2006

• a 5-minute advisory video on shipping registration and the application of the Shipping Registration Act 1981.

37


Research projectsWe are currently funding a 3-year (2013-16) research study assessing the determinants of safety culture in the maritime industry. This study is being undertaken in partnership with the University of Queensland and the University of Western Australia. It is expected that this work will assist in the formulation of effective and evidence-based recommendations for the improvement of training programs, work design, procedures, policies and regulations, and the assessment of safety behaviour.

QualificationsSeafarer certificatesIn 2014-15 we issued 5568 certificates of various types to seafarers, including 1666 certificates of competency.

In August 2014 we announced the extension of our suite of plastic credit card sized seafarer certificates, designed to be more durable and secure than traditional paper certificates. Following a successful trial for the Certificate of Safety Training in 2012, plastic cards are now issued for certificates of competency and proficiency, and Global Maritime Distress and Safety System certificates.

Computer-based examsSeafarers who want to obtain an AMSA Certificate of Competency are required to undertake an AMSA final assessment. In order to improve the first attempt pass rate we are working with a New Zealand-based company to develop computer-based multi-choice examinations, which a candidate must pass before being allowed to undertake the final assessment. Candidates will undertake the assessment in a secure location. They will receive a knowledge deficiency report to assist them prepare for their orals. These reports will also be made available to AMSA examiners.

Qualification system improvementsOver the period we have been working with an external consultant to develop a new online evidence-based certification solution—the Certification and Pilotage System (CPS2). The system is configurable, which allows us to control the certification and licence structures; create internally and externally available certification options; and control the level of experience, training and examination seafarers must demonstrate to secure an AMSA qualification.

With the introduction of CPS2, numerous improvements will be made to the qualification system, including:

• a self-service portal—allowing seafarers to initiate their own applications

• improved data management

• improved interface for seafarer medical requirements

• a new online assessment process.

Commercial yacht qualificationsIn September 2014 we commenced a project with the commercial yachting industry, the Australian Maritime College and the Transport and Logistics Industry Skills Council to develop an International Convention on Standards of Training, Certification and Watchkeeping (STCW) commercial yacht qualifications structure similar to the United Kingdom’s.

A proposed training course has been developed and is based on the existing Diploma in Maritime Operations (Deck Watchkeeper Certificate of Competency), which allows for career progression. We have drafted a Marine Order to introduce the new yacht qualification structure. Subject to further stakeholder consultation, it is envisaged that the project will be completed in the first quarter of 2016.

38

National System streamliningWe entered 2014-15 with the experience gained from our first full year as the National Regulator, and with a clear idea of what we could do to further improve the National System for Domestic Commercial Vessel Safety (National System).

In early 2014, we worked with State and Northern Territory maritime safety authorities to develop 13 concepts aimed at streamlining (or simplifying compliance with) the National System. These included proposed changes to vessel survey requirements, construction standards and operational areas. From May to July 2014 we ran an industry consultation program on the 13 concepts. In that time, our staff held 27 meetings around the country to gather comment on the proposals.

The sessions were attended by about 800 industry representatives, with a further 79 written submissions received. The streamlining review was overwhelmingly supported by industry, whose members saw it as a rare opportunity to resolve concerns with how the National System had been implemented, and to remove unnecessary red tape in marine safety regulation generally. Strongest support was expressed for proposals related to operational areas, survey frequency and crew competency standards, while other proposals, such as changes to composition of the non-survey category, received a more mixed response. All 13 proposals were modified to some extent based on industry comment.

We spent the second half of the financial year working with States, the Northern Territory and industry to implement some of the more immediately achievable streamlining proposals, including the ability to operate vessels less than 12 metres recreationally; and to operate vessels pending certification, without having to make further application. We are progressively looking to implement some of the more complex reform proposals, in consultation with industry, before the end of 2015.

Standards reformWe continued to work with industry and maritime agencies to progressively review existing commercial vessel standards throughout the financial year. Reform work centred on simplification of the National Standards for Commercial Vessels, which set out the standards governing commercial vessel design, operation, crewing and safety requirements.

This included reviewing the standards for consistency between each of them, and consistency with the Marine Safety (Domestic Commercial Vessels) National Law Act 2012, (the National Law) and with Australian standards and international conventions. They were also reviewed for opportunities to implement streamlining proposals. This involved working with technical reference committees and with industry to gain comment on the proposals.

Governance arrangementsIn 2014-15 we continued to review the activities of our Domestic Vessel division to ensure we were best placed to provide leadership to delegates on the delivery of National System services while continuing our ongoing reform program. As a result, the position of National Operations Manager was created to ensure coordination of all divisional operational activities.

With the initial 3-year transition period for the National System to end in June 2016, these reviews also confirmed the need for the division to plan and implement arrangements in the lead-up to, and beyond, this date. This work is ongoing. An organisational review of the division was also held to prepare for the future challenges of managing the National System as it evolves. In the period, we also dedicated significant resources to improving our domestic commercial vessel engagement strategies and practices.

DOMESTIC COMMERCIAL VESSEL SAFETY

39


Statement of Regulatory Approach The streamlining review of the National System highlighted the need for us to state clearly our approach to safety regulation.

As a result, we prepared a National System Statement of Regulatory Approach. This is a public statement of the need for a coherent approach to marine safety regulation, one in which the amount of regulatory oversight reflects the level of risk posed by a particular operation. The statement sets out nine points that we will take into account when addressing the need for balanced regulation:

1. Safety is primary.2. Regulation—and its application—is flexible enough to address the risks of a highly varied industry

in order to support safety, innovation and business and environmental sustainability.3. The National Regulator develops and maintains a collaborative relationship with industry.4. The regulatory scheme is performance-based, not prescriptive.5. The operator has the primary responsibility for ensuring the vessel is safe and operates safely.6. The National Regulator will take a ‘trust and verify’ approach to maintaining safety wherever

possible.7. The National Regulator will make use of third-party expertise to bolster its regulatory safety

activities.8. The National Regulator will strive to make it simple for people to maintain safety.9. The National Regulator will work together with other safety agencies to reduce the potential for

duplication of safety rules and the application of those rules.The statement recognises that regulation cannot eliminate every risk, and that the National Regulator must pursue practical solutions, balancing risk with the need for rules that support a strong, productive and diverse economy, with greater innovation, investment and more jobs.

The full Statement of Regulatory Approach is available on our website (amsa.gov.au).

40

Surveyor accreditationWe accredit marine surveyors to make sure they have the appropriate education, capability and capacity to survey domestic commercial vessels under the National Law. A new National Surveyor Accreditation Scheme came into effect on 2 January 2015, for the first time giving the maritime sector a consistent standard against which to assess the nation’s commercial marine surveyors. The new scheme was the result of significant work with both maritime agencies and industry—through initial sessions seeking comment on the proposed changes, followed by workshop and industry education sessions.

Industry liaisonThrough our regionally-based liaison officers, we worked with State and Northern Territory maritime safety agencies to improve the advice, guidance material and processes they are using to act as our delegates. Liaison staff continued to work directly with industry to resolve issues that arose from some of the unforeseen complexities that came with the new National System. As the year progressed, and general understanding of the National System increased, we shifted the focus of our liaison activity to working with industry and delegates more formally to identify opportunities for ground-up reform. These in turn fed into the development of our streamlining review.

Training and educationIn addition to liaison activities, our staff carried out nationwide formal technical training during the financial year. Significant training activities included our ongoing work with State and Northern Territory administrative and compliance and enforcement officers. For the start of the National System, we delivered initial training to 410 appointed Marine Safety Inspectors and 220 police officers. In 2014-15, refresher training was delivered to around 400 Marine Safety Inspectors including a large number of police in New South Wales.

Safety management systemsTo help implement the National Standard for Commercial Vessels (NSCV) Part E, AMSA carried out a series of workshops to provide industry with information about the changes, and to educate specific industry sectors on the need to have safety management systems (SMS) in place. On 7 May 2015 we launched a National SMS Training Resource Kit. The kit, jointly developed with the Australian Maritime College, includes: facilitator notes, a PowerPoint presentation, a participant workbook, and all ancillary resources required for a workshop. It is being rolled out through industry peak bodies and associations, registered training organisations, as well as dedicated AMSA and delegate SMS trainers.

During the period we also worked with Southern Rocklobster Limited and the South Australian Rock Lobster Advisory Council to update their existing Clean Green Program. This recognised the Clean Green Program as an equivalent system to meet the requirements of NSCV Part E.

QualificationsTo ensure ongoing standards of training for domestic commercial vessel crews, we worked to revise Marine Order 506, which governs the approval of training organisations. The revisions simplified approval and audit processes and removed duplication with the Vocational Education and Training regulatory requirements, focussing on the technical standards of maritime training delivery and assessment. To support nationally consistent implementation of Marine Order 506, face-to-face technical workshops were run for state and territory approved training organisations, marine safety agency assessors and auditors over the first half of 2015.

41


42

Compliance and enforcementCompliance notices can be issued for a number reasons relating to safety, contraventions of the National Law, and where the issue of the notice is in the public interest. The following information represents the type and number of compliance and enforcement notices (Direction, Prohibition and Improvement notices) issued by Marine Safety Inspectors over the reporting period. No vessels were detained during the reporting period.

Figure 10: Compliance and enforcement notices issued in 2014-15

Infringement notices enable a person who is alleged to have committed an offence against the National Law to pay a penalty to the National Regulator as an alternative to prosecution. The following chart represents infringement notices issued over the reporting period and highlights the breakdown of the alleged offence types by month.

Figure 11: Infringement notices issued in 2014-15

• Breach of a notice: a person has breached a requirement/direction of one of the compliance and enforcement notices

• Certificate of Survey: a person causes or permits a DCV to be operated without a certificate in force for the vessel, or the DCV is operated in breach of a condition on its certificate

• Certificate of Operation: a person causes or permits a DCV to be operated without a certificate in force for the vessel, or the DCV is operated in breach of a condition on its certificate

• Certificate of Competency: a person operates or causes or permits another person to operate a DCV without holding the required certificate

• General Safety Duty: a person breaches this duty

200

150

250

300

PROHIBITION NOTICE

DIRECTION NOTICE

IMPROVEMENT NOTICE

JUL-

14

AUG-14

SEP-14

OCT-14

NOV-14

DEC-14

JAN-15

FEB-15

MAR-15

APR-15

58119699915314489115101 93

3131

29

2130

4884

384132 20

101012

8

2816

3121

24

100

50

0

6

8

10

CoS (SURVEY)

BREACH OF NOTICE

CoO (OPERATION)

CoC (QUALIFICATIONS)

GENERAL SAFETY DUTY

JUL-

14

AUG-14

SEP-14

OCT-14

NOV-14

DEC-14

JAN-15

FEB-15

MAR-15

APR-15

4

2

0

MAY-15

JUN-15

43


Marine Orders are a form of delegated legislation under Australia’s Commonwealth laws. More information on the legislation that underpins Marine Orders is available on our website.

Following the commencement of the Navigation Act 2012, a substantial program is underway to improve the clarity and practicability of Marine Orders. As each Order is issued, a corresponding schedule in Marine Order 4 (Transitional modification) 2013 is replaced. A total of 40 Marine Orders in the 1-100 series are required to be reissued in the program. We are aiming to complete this program by the end of 2016.

There are 7 Marine Orders (numbered 501-507) made under the Marine Safety (Domestic Commercial Vessel) National Law.

A full list of Marine Orders issued during 2014-15 can be found at Appendix 5.

MARINE ORDERS

44

1SEARCH AND

RESCUE

7SC1 SC4 SC5

46

Under the Australian Maritime Safety Act 1990, we have a statutory duty to provide for a national search and rescue (SAR) service. In 2014-15 we coordinated a total of 447 searches, which resulted in the rescue of 262 people across 7664 incidents, representing 98.1 per cent of lives saved.

Notable 2014-15 incidentsThe majority of SAR incidents involve multiple organisations working together to develop an effective response plan to rescue people in distress. The following two incidents are examples of the types of incidents that we routinely coordinate in conjunction with the police and other agencies, ensuring that a consistent SAR service is delivered to those in need of assistance anywhere in Australia.

A detailed look at a sample of our 2014-15 search and rescue incidents can be found on our website (amsa.gov.au).

Cooktown helicopter search and rescueWe were advised by a helicopter company that one of their helicopters crashed around 1pm on Tuesday 7 October 2014 at Mt Cook near Cooktown, Queensland. Six people were involved in the incident on board the Bell 206 helicopter and had sustained various degrees of injuries. The crew managed to notify the company using a mobile phone.

We tasked a Hevilift B212 helicopter that was about to land at Cooktown and diverted it to confirm the crash position. Our Cairns-based dedicated search and rescue Dornier aircraft and Rescue 521 helicopter from Townsville were also tasked to assist.

A ground response team comprising of Queensland Police, the Queensland Ambulance Service, Rural Fire Brigade and National Park personnel made their way overland through dense vegetation and steep terrain to locate the helicopter and reach the six people in distress. Five people were led out and the one severely injured person was winched by the rescue helicopter and taken to Townsville Hospital.

NATIONAL SEARCH AND RESCUE SERVICE

The helicopter crash site

47

SEARCH AND RESCUE

Yacht Enya II rescueWe received a 406 MHz distress beacon detection and a SPOT tracking device alert from the yacht Enya II approximately 110 kilometres north of Lord Howe Island around 10am on 3 September 2014. The solo sailor was travelling between Queensland and New Zealand when his 10-metre yacht hit heavy seas and his yacht suffered rigging damage.

A broadcast to shipping was issued and a Customs and Border Protection Dash 8 surveillance aircraft diverted. Upon arriving on scene the Customs aircraft sighted the Enya II disabled in heavy seas but could not establish communications with the skipper who was visible on deck. We also tasked our Essendon-based dedicated search and rescue Dornier aircraft, a civil aircraft and a Royal Australian Air Force (RAAF) C-130J Hercules to assist. The Dornier aircraft was able to drop water and communications equipment to the yachtsman.

The Danish-flagged container ship Lars Maersk was in the area and responded to the broadcast offering to provide assistance to the stricken yacht. The weather on scene was extreme with 6-9 metre waves and 70 kilometre per hour winds. As the Lars Maersk was attempting to manoeuver alongside, the yachtsman decided that he would attempt to swim the remaining distance to the ship and jumped into the ocean just before night fall. Due to the conditions, he was unable to close the distance and instead found himself adrift in the ocean. The crew of the RAAF aircraft used night vision goggles to assist Lars Maersk in locating the yachtsman in the extreme weather conditions. The yachtsman, who was wearing an immersion suit, was recovered from the water by the Lars Maersk four hours later.

A debrief with the skipper of the Enya II revealed that the sailing vessel had sustained damage to the main sail and boom resulting in the vessel becoming non-manoeuvrable in extremely dangerous sea conditions. In addition, the yachtsman was unable to stem the flow of diesel fuel that was leaking heavily inside the yacht, making the deck extremely slippery and unstable. The yachtsman cited the bravery of the Lars Maersk in their efforts to rescue him and also reflected on the need for those that venture to sea to have proper communications and emergency equipment to best ensure their survival if a mishap occurs.

The Yacht Enya II adrift 110km north of Lord Howe Island

48

National Search and Rescue CouncilWe maintained a strong national leadership position as the Chair and Secretariat of the National Search and Rescue (NATSAR) Council. In October 2014 New South Wales Police Force hosted the 38th annual NATSAR Council meeting in Sydney. During the meeting, the members reviewed the strategic direction for the next five years and focused on initiatives that further enhance national search and rescue capability. The 2014 Australian Search and Rescue Award was presented to the crew of the Tasmanian Police vessel Van Diemen. The crew was responsible for saving the lives of 3 fishermen off Tasmania’s south-west coast in extreme weather conditions in January 2014. A commendation award was also presented to the crew of a Navy Seahawk helicopter from Nowra’s 816 Squadron for their role in rescuing a French couple after their yacht sank off the New South Wales coast in September 2013.

The combined search and rescue system of Australia recorded nearly 20,000 incidents and thousands of lives saved across Australia in 2014-15, highlighting the extent to which the cooperative nature of the search and rescue system continues to make a difference to the safety of our community.

Distress beaconsDistress beacons play a critical role in search and rescue. Over 70 per cent of all search and rescue incidents we responded to in 2014-15 involved a distress beacon. Australia continues to manage the second largest 406 MHz distress beacon database in the world with more than 382,000 beacons registered at 30 June 2015. Of these registered beacons, 65 per cent are equipped with Global Positioning Satellite (GPS), which provides precise location information, minimising the search time required. This can be attributed to our ongoing public awareness campaign that specifically targeted the ‘GPS is best’ message in 2013-14.

In March 2015 we launched our new beacon website to make beacon information more accessible for our stakeholders. We also continued to progress work on the enhancement of the online beacon registration system, which aims to support mobile devices, streamline business processes, and improve overall user experience during online beacon registration. This enhanced beacon registration website will be launched in September 2015.

Search and rescue capabilitiesDedicated airborne search and rescue serviceWe currently have a contract with AeroRescue Pty Ltd providing dedicated search and rescue aircraft based in Cairns, Brisbane, Melbourne and Perth, which is due to expire in the upcoming years. The contract for the dedicated aircraft in Darwin ended on 31 January 2015, with the remaining bases closing from August 2016 to February 2017. AeroRescue has been providing a round-the-clock dedicated search and rescue service to us for the last 10 years.

During 2014-15, the specially equipped Dornier 328 aircraft and highly trained crews provided to AMSA by AeroRescue flew for a total of 2337 hours and participated in a wide range of tasks including searches for people in distress, homing to emergency beacons and deployment of stores. We are working with AeroRescue to continue providing a reliable and effective service until the transition to the new contracted provider is completed.

A new contract was signed in October 2014 with Cobham SAR Services Pty Ltd (Cobham) which will provide the next generation aircraft dedicated to search and rescue from 2016, for a period of 12 years. Under this contract, Cobham will provide a comprehensive service to us which includes owning, modifying, maintaining and operating the aircraft.

49

SEARCH AND RESCUE

The three specifically modified Bombardier Challenger 604 jets will operate out of Perth, Cairns and Melbourne, with an operational reserve aircraft located in Melbourne. The Challenger jets offer a longer search range and endurance, as well as improved deployment speed. Modifications to the aircraft include installation of advanced search and communication equipment, and emergency supply drop capability to people in distress.

In addition to the dedicated aircraft, we maintain a list of qualified aviation operators for the provision of opportunity-based search and rescue services. The list contains around 50 units (helicopters, aircraft and trained personnel) strategically located around Australia.

Medium-altitude Earth Orbit Search and Rescue systemIn 2014-15 we continued to move forward with the upgrade of the International Cospas-Sarsat satellite system. This upgrade is a current priority of the International Cospas-Sarsat Programme which involves placing Medium-altitude Earth Orbit Search and Rescue (MEOSAR) receivers on new navigational satellites. The MEOSAR system will dramatically improve both the speed and location accuracy of distress beacon detections globally.

We conducted a joint approach with Maritime New Zealand to procure the MEOSAR capability for the region. McMurdo Group’s Techno-Science Inc was awarded the contracts in September 2014 to install and maintain two 6-antenna MEOSAR satellite tracking ground stations in Western Australia and the North Island of New Zealand, and a Mission Control Centre capable of processing MEOSAR data in Canberra.

The installation is expected to take 15 months and the system will be ready for operation in Australia and New Zealand by the start of 2017. It will work cooperatively to achieve overlapping coverage for Australia and New Zealand’s Search and Rescue Regions.

Once fully operational, the MEOSAR system will reduce beacon detection times from hours under the current system, to within 10 minutes, 95 per cent of the time. The existing Low-altitude Earth Orbit Search and Rescue (LEOSAR) satellite system will be phased out in coming years under international arrangements.

Technology developmentsTo ensure we continue to provide an effective and efficient search and rescue service for the Australian community, we regularly review and upgrade our technology. We are currently undertaking and/or planning trials of:

• Maritime Visual Anomaly Detection, which uses ultra-high resolution cameras to automatically detect anomalies on the sea surface. It extends coverage of a visual airborne search and can automatically detect target types (from people in the water to large vessels). The Maritime Anomaly Detection capability is part of our Challenger specification, which will be in service by 2016

• Guided Stores Delivery System, which allows supplies to be dropped from the aircraft and then ‘flown’ to the target point by an operator on board with a remote control. This capability is currently being trialled for consideration as a future initiative.

50

In 2014-15 we continued to work with our partner agencies of the Torres Strait Marine Safety Program in delivering a number of safety and training initiatives in the Torres Strait and Cape York Peninsula, including:

• Marine Operations integrated rating course (Australian Maritime College, Tasmania) — 2 Torres Strait Islander students completed this 11-week course, at the end of which they were placed with an Australian shipping company to complete an 18-month ‘at sea’ training phase before formally entering the offshore maritime workforce.

• Under the delivery of the Torres Strait Maritime Pathways Project, 69 students successfully completed certificate level qualification, including Certificate II in Coxswain, Marine Engine Driver Grade III and Certificate III in Fishing Operations, as well as a range of pre-requisite courses.

• School Based Education Program — this continuous program provides high quality fitted lifejackets and educates school aged children about marine safety across 20 remote campuses in the Cape communities.

We continued to have extensive involvement in the Antarctic in 2014-15 through our engagement in the annual Antarctic Treaty Consultative Meeting; collaborative work with the Council of Managers of National Antarctic Programs; and strong contribution to the work on the Polar Code (page 74). We also continued to have significant operational level engagement in the region through our partnership with the Australian Antarctic Division (AAD).

This included participating in search and rescue exercises and incident debriefs and the provision of search and rescue training and equipment to AAD aircraft, which operate seasonally from Antarctic bases. The training was in visual search techniques, deployment of equipment and use of distress beacon homing equipment.

TORRES STRAIT MARINE SAFETY PROGRAM

ANTARCTIC

51

SEARCH AND RESCUE

52

1MARINE

ENVIRONMENT

8SC1 SC4 SC5

54

The National Plan for Maritime Environmental Emergencies (National Plan) sets out the cooperative arrangements between governments and industry to respond to shipping casualties and maritime pollution incidents. We manage the plan, working with Commonwealth, State, and Northern Territory governments, as well as industry and emergency services.

TrainingUnder the National Plan, we deliver competency-based training courses, as well as online training and workshops. In 2014-15 we conducted 29 training courses (involving 521 participants) covering the following roles: Incident Management Team, Incident Controller, Planning Officer, Operations Officer, Shoreline Response, Basic Equipment Operator and Advanced Equipment Operator. We also delivered specialist workshops and exercises for National Response Team members, Environmental Science Coordinators, and Maritime Casualty Officers.

As part of the review and continuous improvement of the training regime, some of the specialist technical courses were redesigned, with pilot versions of the new courses trialled during the year. The development of the Advanced Equipment Operator course was completed and this course was conducted in May 2015—for the first time as a competency-based course. The AMSA Registered Training Organisation is the only provider able to issue a Statement of Attainment for this course.

Exercise WestwindThe National Plan is exercised on an annual basis. It involves multi-level government organisations and agencies from across Australia, as well as industry representation. This exercise is of national importance as it ensures strategic and operational preparedness for marine pollution incidents. Exercise Westwind, conducted in 2015, focussed on a spill event scenario from the offshore petroleum industry (details provided in the below table).

The strategic component of the exercise provided the first opportunity to test the Offshore Petroleum Incident Coordination Framework, and stand up the Offshore Petroleum Incident Coordination Committee which is chaired by the Department of Industry and Science.

Component Date Location Summary

Strategic 27-28 May Perth and Canberra This component exercised high level communication and coordination between the Australian Government, the Western Australian Government, and the offshore petroleum industry, and included the activation of the Offshore Petroleum Incident Coordination Committee.

Operational 8-12 June Perth and Exmouth An Incident Management Team was mobilised with oil industry, AMSA and National Response Team personnel in Perth, and a forward field base established in Exmouth to undertake field and aerial deployment operations.

Similar to Exercise Northerly (held in 2014), Exercise Westwind formed part of a week of development programs, with a State Marine Pollution Controllers workshop being held in conjunction with the strategic component.

NATIONAL PLAN FOR MARITIME ENVIRONMENTAL EMERGENCIES

55

MARINE ENVIRONMENT

Response capabilityWe maintain nine strategic equipment stockpiles of marine pollution response equipment around the Australian coastline. Stocks of dispersant are stored at these stockpiles as well as at other key locations. In 2014-15 we received and distributed new booms to the stockpiles and signed extensions on standing offer arrangements for the supply of oil spill response equipment.

A new contract commenced for the supply of the Fixed Wing Aerial Dispersant Capability under the National Plan. As with the previous capability, the aircraft are maintained in strategic locations around the coastline to respond to oil spills on a 24/7 basis. However, the new capability provides a greater capacity to respond to an incident, as the aircraft are faster and have a larger payload. Some of the requirements of the capability include:

• 6 primary aircraft located around Australia

• available to fly within a specified time period from activation

• suitably equipped to undertake aerial dispersant application activities in the marine environment

• able to operate offshore up to 200 nautical miles from the coast

• provision of adequately trained personnel to support contract requirements.

In addition to the contracted aircraft, there are an additional 12 aircraft available to the contractor. In the event of a significant incident, and subject to their availability, these aircraft could be called upon to assist in a response.

We signed a memorandum of understanding with Fire and Rescue New South Wales in 2014-15 to deliver an onboard, at-sea Hazardous and Noxious Substance (HNS) Reconnaissance Team capability. The team provides us with a 24/7 capability to undertake on-scene evaluations of HNS incidents on ships at sea. Fire and Rescue NSW hazardous material (HAZMAT) technicians and an AMSA maritime casualty officer will form the reconnaissance team that responds to an incident. This team will report back to decision makers on shore so the most effective response can be launched without having to bring potentially dangerous substances into port. We entered into a partnership with the Australian Maritime College to provide maritime familiarisation training to the HAZMAT technicians, with the first courses held in April and June 2015.

This capability forms part of Australia’s obligation to prepare for, and respond to, a pollution incident by hazardous and noxious substances, as a party to The Protocol on Preparedness, Response and Co-operation to Pollution Incidents by Hazardous and Noxious Substances. We are developing a national HNS response capability based on a tiered system, consisting of:

• level 1: small on board incident requiring remote advice with no onsite attendance

• level 2: medium or significant incident requiring full on site attendance

• level 3: major spill/incident requiring state, interstate and national resources.

As of 2014-15 we have the capacity to access satellite-based radar surveillance systems to assist oil spill response operations. Able to operate 24 hours a day, and through inclement weather, satellite radar provides an effective, reliable and timely way to monitor large areas. We receive reports of possible oil on the water within 60-90 minutes of the satellite image being acquired. These reports are quickly assessed and then sent to the relevant authority for follow-up action. During 2015 our satellite surveillance program targeted 9 areas of heavy shipping where there is the potential for oil spills. Of the 150 satellite passes, 19 returned positive alerts, and 10 reports indicated a high level of confidence of oil on the water. None were attributed to an identifiable spiller, all were small and far offshore, and in all cases natural degradation provided the most appropriate clean-up response.

56

On 11 January, the Antigua Barbuda-flagged general cargo ship MV Thor Commander reported it had damaged its main engine. It was drifting north-east of Perkins Reef and north of Elusive Reef, about 379 kilometres north-east of Gladstone when it was disabled. We activated an emergency towage vessel from Gladstone, the SMIT Leopard. Due to the vessel’s 25-hour transit time, we sent out a broadcast to vessels in the area. The Chinese-flagged cargo carrier MV Xinfa Hai responded with an offer of assistance.

After a Powers of Intervention direction to the ships, issued by the Maritime Emergency Response Commander (MERCOM), a towline was established between the ships on 12 January with assistance provided by the Queensland Police vessel Lyle M Hoey. The Thor Commander was successfully diverted away from the reef and towed in an easterly direction prior to the SMIT Leopard’s arrival on 13 January. The SMIT Leopard subsequently towed the vessel to Gladstone.

MV THOR COMMANDER

The Master and crew of the MV Xinfa Hai were presented with an AMSA plaque and certificate of recognition for their outstanding seamanship

57

MARINE ENVIRONMENT

The Australian Government reduced the rate of the Protection of the Sea Levy effective from 1 July 2014. The levy rate reduced from 14.25 cents to 11.25 cents per net registered tonne per quarter. The levy applies to ships of more than 24 metres in length entering an Australian port carrying more than 10 tonnes of oil in bulk as fuel or cargo. It funds AMSA’s environmental protection activities─preventing and combating ship-sourced pollution in the marine environment.

The levy rate was previously increased in June 2010 to meet part of the cost of cleaning up the oil spill from the Pacific Adventurer incident, which occurred off the south-east coast of Queensland in March 2009. The funds generated by the higher levy were also used to establish a $10 million pollution response reserve. The rates for our other two levies, the Marine Navigation Levy and the Marine Navigation (Regulatory Functions) Levy, remain unaltered.

Also as a result of the Pacific Adventurer incident, we took a proposal to the International Maritime Organization to increase the liability limits under the 1996 Protocol to the Convention on Limitation of Liability for Maritime Claims. This international agreement allows a shipowner or salvor to limit the total amount they can be required to pay for damage. We successfully obtained the agreement of parties to increase the liability limits by approximately 50 per cent. In May 2015 a bill to amend the Limitation of Liability for Maritime Claims Act 1989 (to reflect these increased liability limits) was passed by both Houses of Parliament. The increased liability limits took effect on 8 June 2015.

PROTECTION OF THE SEALEVY REDUCED

Emergency towage We farewelled our emergency towage vessel (ETV) Pacific Responder at midnight on 7 July 2014. After 8 years of service, the Pacific Responder handed over ETV responsibility to the Coral Knight as part of the new 10-year emergency towage capability contract.

The Coral Knight is a new-build anchor handling tug and supply vessel with a bollard pull of 82 tonnes and a maximum speed of 14 knots. The vessel is capable of providing an initial response to a casualty with its focus on towing a casualty out of immediate danger; towing or escorting a casualty to a place of refuge; fire-fighting; stabilising a casualty to prevent further damage; and protecting the marine environment from pollution. The vessel is also the primary platform for the aids to navigation maintenance program in its area of operations. It is a substantial component of the larger, nationwide Emergency Towage Capability program that we manage as part of the National Plan.

The build of a customised second new emergency towage vessel has begun with the first steel cut in January 2015. The second vessel will provide an enhanced towage capability. It is due to enter service on 1 July 2016, replacing the Coral Knight.

58

The Coral Sea is considered one of the most distinctive and undisturbed natural systems in the world. It includes the Great Barrier Reef Marine Park which was made the world’s first Particularly Sensitive Sea Area (PSSA) by the International Maritime Organization (IMO) in 1990.

In 2014-15 we submitted a proposal to the IMO to extend the existing Great Barrier Reef and Torres Strait PSSA into the Coral Sea. The proposal was approved by the IMO Marine Environment Protection Committee in May and came into effect in June. The new area covers approximately 564,000 square kilometres of the Coral Sea.

Three Associated Protective Measures (a new recommendatory Area to be Avoided and two two-way routes) accompanied the proposal (see page 75 and below chart).

CORAL SEA PARTICULARLY SENSITIVE SEA AREA

CAIRNS

CORAL SEA

AREATO BE

AVOIDED

SOLOMON SEA

PAPUA NEW GUINEA

TORRESSTRAITPSSA

HOLMES REEFTWO-WAY ROUTE

QUEENSLAND

OUTER ROUTE

TOWNSVILLE

MACKAY

ROCKHAMPTON

BRISBANE

PORT MORESBY

DIAMOND PASSAGETWO-WAY ROUTE

CORAL SEA PSSA

GREATBARRIER

REEFPSSA

59

1NAVIGATION

SAFETY

9SC1 SC4 SC5

62

Shipping management plansOn 7 October 2014 the Australian Government released a plan for managing shipping traffic in the Great Barrier Reef, Torres Strait and Coral Sea. The North-East Shipping Management Plan was jointly developed by Queensland and Australian Government agencies over a period of 2 years and takes into account projected growth in shipping to the year 2032.

It outlines measures currently in place to manage the safety of shipping in the region and proposes options and actions to further minimise the environmental impacts of shipping. We led the development of the North-East Shipping Management Plan, which is available to view and download on our website (amsa.gov.au).

In 2014-15 we continued to progress our National Shipping Management Plan. This plan describes how we are strengthening our current capabilities to understand and respond to the challenge of dealing with changing shipping activity around Australia.

It defines: our mandate; the maritime environment in which we work; anticipated changes to shipping activity (and how we keep track of those changes); and our preferred technologies, measures and approaches for ensuring the safety of shipping and protection of the marine environment, so that we can meet current and future challenges. The plan is due for release in 2015-16.

We deliver a range of services which provide vessels with the ability to navigate safely around Australia’s coastline and to and from its ports, including:

• a network currently comprising 490 visual and electronic aids to navigation• ship routeing systems• ship reporting systems• vessel traffic services.

SHIPPING MANAGEMENT

OVERVIEW

63

NAVIGATION SAFETY

Under keel clearance management The Torres Strait is naturally challenging for shipping, given the limited depth of water, narrow channels, fringing coral reefs and at times strong currents and tidal streams. Our mandated under keel clearance management (UKCM) system has been used operationally by marine pilots since 1 July 2014. The UKCM system allows pilots to plan, and then conduct, vessel transits through the complicated waterway in a safe manner that considers a vessel’s declared deepest draught, stability parameters, available water depth, position, tides and tidal streams.

In 2014-15 we used the technology available through Automatic Identification System (AIS) and established a virtual AIS aid to navigation in the location of OG Rock. OG Rock is a shoal located in a narrow section of the Torres Strait shipping channel, which poses a risk to deep draught vessels. The creation of this virtual AIS aid to navigation comes at minimal cost and has been established to offer assistance in the decision making required by a deep draught vessel’s pilot and master during a UKCM transit. Feedback received from pilots on this additional safety initiative has been positive and we will monitor the effectiveness over time through consultation.

Since its inception, the UKCM system has been subject to a continual improvement process in order to provide pilots with a robust system that offers the most user-friendly platform possible. In December 2013, work began on a specific improvement to the UKCM system to develop and implement a ‘chart overlay’ function. In addition, the work incorporated specific aspects related to direct feedback received from pilots and pilot providers. The upgraded system was released on 5 November 2014 and incorporated a number of improvements in functionality, including:

• a chart overlay function that provides an additional spatial dimension for pilots when performing transit plan calculations and transits

• updates to the latest Australian Hydrographic Service bathymetry data

• day/dusk/night mode of operation (illumination configuration)

• increased flexibility for pilots to create and modify transit plans whilst underway

• an improved hardware platform to cater for the increasing data requirements of the system.

Great Barrier Reef and Torres Strait Vessel Traffic ServiceIn 2014-15 we continued to work closely with Maritime Safety Queensland (MSQ) on the implementation of vessel traffic services for the Great Barrier Reef and Torres Strait (REEFVTS).

There were several key system changes during the period, including:

• streamlining of cruise ship reporting. Through time-based reporting, short transits through the REEVTS area can be classified as part of a single voyage, thereby reducing reporting requirements

• issuing of notices during a port State control inspection (and letters to owners) to a ship identified as non-compliant with its pre-entry/entry reports. This is for educational purposes (with no fine attached), but has resulted in positive feedback from shipowners who were not previously aware of non-compliance incidents.

During the year, together with MSQ, we revised the governance and operational arrangements for REEFVTS. A new memorandum of understanding commenced on 1 July 2015. Under this new arrangement, we are the Competent Authority, and MSQ is the day-to-day operator of the service.

64

Aids to navigation networkWe manage an extensive network of aids to navigation around the coastline, currently comprising 490 aids at approximately 380 sites. The availability of these aids to navigation in 2014-15 is detailed in Appendix 2.

The Aids to Navigation Strategy and Operations Working Group meets biannually to consider issues regarding the provision and management of aids to navigation across jurisdictions. Key outcomes in 2014-15 included: the finalisation of a new national guideline on the provision of aids to navigation information to the Australian Hydrographic Service for charting purposes; and consultation with states and ports on new AMSA policy and procedures covering installation and use of AIS aid to navigation equipment within Australian waters.

Major aids to navigation modificationsIn January 2015 we completed the modification of the Swain Reefs aids to navigation structure to the north-east of Gladstone on the Outer Shipping Route of the Great Barrier Reef. The modifications were necessary to enable AIS vessel tracking and very high frequency (VHF) communication infrastructure and to increase the range of the light. This project was one of a number of navigation safety initiatives that have been implemented following the extension of REEFVTS to the area south of Mackay after the grounding of the bulk carrier Shen Neng 1 in 2010.

A particular challenge for the project was the site’s considerable distance offshore. It was therefore necessary to trial and implement a cost effective satellite communications solution to enable the transfer of the vessel tracking data to our vessel tracking systems and facilitate the essential voice communication between ships and the REEFVTS Centre in Townsville. Excellent range is being obtained from the AIS station, tracking vessels in excess of 70 nautical miles from the site. Shortly after the modifications were completed, the site proved highly valuable in assisting with voice communication during the MV Thor Commander incident (page 57).

New aids to navigation maintenance contractOur new 10-year contract for aids to navigation maintenance commenced on 1 July 2014, following the completion of a competitive tender process and a contract transition phase. Bedding down various changes between the previous and new contracts was a key focus in 2014-15.

The contract includes the implementation of several technology enhancements within the first four years of the contract which will have significant financial and operational benefits, including replacement of:

• our remaining steel buoys with polyethylene-hulled buoys• incandescent lights with LED lights• all AIS base stations including upgrading the functionality of equipment• aids to navigation remote monitoring equipment and the related management system.

During 2014-15 good progress has been made against the implementation schedule for these technical innovation projects with 22 buoys being exchanged, 29 LED lights being installed, and 11 AIS base stations being replaced. We also developed high-level user requirements as an input to the maintenance contractor’s process to select a suitable new aid to navigation remote monitoring system which is due to be implemented in 2016.

Other key contract deliverables which have been progressed in 2014-15 include the development of asset management strategies for each of our aids to navigation sites and the contractor enhancing workplace health and safety controls (for example, in the management of hazardous materials at aids to navigation sites).

AIDS TO NAVIGATION MANAGEMENT

65

NAVIGATION SAFETY

Maintenance work underway on an aid to navigation in the Port Walcott region

66

In 2015 we are marking the centenary of the Australian Government’s management of lighthouses and other aids to navigation in Australian waters.

In 1788 convicts built Australia’s first marine light on South Head at the entrance to Sydney Harbour. This was simply an iron basket on a tripod which was replaced in 1818 by Australia’s first lighthouse—Macquarie Light. Prior to Federation, the various colonies of Australia built, maintained and manned their own lighthouses. As the colonies were very independent in terms of government and geographical distance, the style of their lighthouses greatly differed. Designs were based on local conditions and used local building materials wherever possible.

In June 1911 the Lighthouses Act came into effect after an extensive report into the condition of existing state lighthouses and the need for upgrades and additional aids to navigation (that were proposed to come under Commonwealth responsibility). On 1 July 1915 the Commonwealth officially accepted responsibility for around 163 lights beacons and buoys required by commercial shipping.

The division of responsibility was confirmed in a 1934 agreement between the Commonwealth and the states where the Commonwealth was responsible for ocean highway aids and the states remained responsible for aids required for port entry, within ports, rivers and inland waterways. From the Commonwealth Lighthouse Service’s inception in 1915, through various Commonwealth agencies (including AMSA since 1991), the Australian Government has been responsible for the provision of an extensive network of aids to navigation around the coastline.

To mark the anniversary we:

• released a calendar featuring various heritage lighthouses

• hosted various open days at our lighthouses around the country

• launched an interactive map detailing our 55 heritage lighthouses

• produced cardboard kit models of lighthouses at Tasman Island, Bustard Head and Sugarloaf Point

• launched commemorative stamp and coin sets which were developed in partnership with the Royal Australian Mint and Australia Post

• attended the official Commonwealth Lighthouse Service Centenary celebration.

CELEBRATING 100 YEARS OF COMMONWEALTH MANAGEMENT OF AIDS TO NAVIGATION

67

1WORKING WITH

INDUSTRY

10SC1 SC2 SC3 SC4 SC5

70

In 2014-15 we conducted numerous consultations with stakeholders on a range of issues, standards, Marine Orders, and policy developments.

From September to October 2014 we conducted our biannual stakeholder satisfaction survey to collect feedback and measure stakeholders’ assessment of our performance. This survey included National System for Domestic Commercial Vessel Safety (National System) stakeholders for the first time.

A total of 397 individual stakeholders participated in telephone interviews and an online survey. Overall, stakeholders assessed their level and quality of engagement with AMSA; our performance; our clarity of purpose and integrity; and performance and accessibility of staff very positively. Results indicated support for stakeholders, service delivery, and regulation of the National System as areas for improvement. The survey results provided a positive overall picture of the perceptions held of our performance across a broad range of functions, reflecting a period of consolidation from the results achieved in 2012. This provides a sound platform for us to continue to implement and integrate our regulatory responsibilities across our expanded stakeholder base.

Our principal consultative body with the maritime sector is the AMSA Advisory Committee, made up of industry leaders from the shipping, offshore and fishing industries, the Australian Marine Conservation Society, the largest maritime trade union, the Royal Australian Navy, and other relevant Australian Government agencies. The committee met twice during 2014-15. We also established the inaugural Fishing Industry Advisory Committee to lead our consultation with this important sector.

Our participation in other consultative bodies is detailed below.

DOMESTIC CONSULTATION AND EVENTS

AMSA-run consultative bodies:

• AMSA Advisory Committee• Australian Search and Rescue Consultative

Forum• Bulk Cargoes Advisory Group• Navigational Services Advisory Committee• AMSA Livestock Advisory Committee• Australian Seafarers’ Welfare Council• Human Elements, Training and

Watchkeeping Stakeholders Workshop• Marine Pollution Preparedness and

Response Technical Group• Marine Pollution Prevention Technical

Group• Marine Pollution Recovery Technical Group• Australian Government National Plan

Committee• Domestic Vessel Industry Advisory

Committee• Fishing Industry Advisory Committee• National Standard for Commercial Vessels

(NSCV) Part F2 – Leisure craft & NSCV Part G – General Safety requirements

• Navigation Safety Advisory Group • North-East Shipping Management Group• North-East Water Space Management

Working Group• National Plan Strategic Coordination

Committee• National Plan Strategic Industry Advisory

Forum• National Search and Rescue Council

External consultative bodies:

• Aids to Navigation Strategy and Operations Working Group

• Australian Automatic Identification System Working Group

• Australian International Telecommunications Union Working Group

• Australia New Zealand Safe Boating Education Group

• Australian Recreational Boating Safety Committee

• Australian Shipbuilders’ Association Technical Committee

• state/territory search and rescue committees• Australian Strategic Air Traffic Management

Group• Bass Strait Livestock Shipping Committee• Civil Aviation Safety Authority Standards

Consultative Committee• Livestock Export Standards Advisory Group• Maritime Agencies Forum• National Plan Strategic Industry Advisory

Forum• National Seafood Industry Alliance• National Volunteer Marine Search and Rescue

Committee• Ports Australia Environmental and

Sustainability Working Group• Ports Australia Operations Working Group• REEFVTS Management Group• Standards Australia technical committees

(various)• Vessel Tracking Services Working Group

71

Our inaugural combined shipping and domestic commercial vessel conference Maritime 2014: Ship to Shore was held from 10-12 November in Melbourne.

More than 400 delegates attended the conference, where International Maritime Organization (IMO) Secretary-General Koji Sekimizu delivered the keynote address, reflecting on the past achievements and future challenges of the IMO. Deputy Prime Minister Warren Truss addressed the conference, detailing the Australian Government’s commitment to working with maritime industries to foster strong and safe growth.

Eighteen exhibitors attended the conference, giving conference delegates the latest insight into maritime technology, products, services and training. The Australian Maritime College was the platinum sponsor of Maritime 2014, with Australian Maritime Systems, Riverside Marine, Maritime Employees Training and Briar Maritime gold sponsors, and International Maritime Services, Ausmarine and the Oil Response Company of Australia Pty Ltd proudly supporting the conference.

Panel discussions provided a forum for honest and frank debate about issues for both the shipping industry and domestic commercial vessel operators.

MARITIME 2014: SHIP TO SHORE

WORKING WITH INDUSTRY

The Hon Warren Truss MP, Deputy Prime Minister and Minister for Infrastructure and Regional Development speaks at the Maritime 2014 conference.

72

In 2014-15 we produced a variety of newsletters:

• AMSA Aboard: our flagship publication. As of March 2015 this e-newsletter is published monthly

• Working Boats: our newsletter for the domestic commercial vessel industry

• On Scene: newsletter for the National Plan for Maritime Environmental Emergencies

• Maritime Safety Awareness Bulletin: a new biannual bulletin for the shipping industry.

We had more than 777,500 visits to our website this year.

Our media officers maintain a 24/7 media hotline to respond to media enquiries and, through the media, provide information to the public on incidents within our jurisdiction. We continued to expand our social media presence to support our strategic challenges and keep the community informed about major developments and significant operations. In 2014-15 we issued 71 media releases and our social media channels continued to grow. As of 30 June 2015 we had a Facebook following of more than 20,500 and a Twitter following in excess of 23,500.

Advertising and market researchSection 311A of the Commonwealth Electoral Act 1918 requires certain reporting on advertising and market research by Commonwealth agencies, including those covered by the Public Governance, Performance and Accountability Act 2013.

Supplier Purpose Cost

WIN Television Community service announcement – beacons $60,000.00

Blaze Advertising Recruitment advertising $38,383.14

ENGAGEMENT AND COMMUNICATION TOOLS

The number of students enrolled through our Registered Training Organisation (RTO) has remained steady around the previous year’s level. We had 355 student enrolments in 2014-15 (compared to 393 in 2013-14). Since being notified of the successful re-registration of our RTO for a further five years, we have successfully maintained our compliance with the requirements of the Australian Skills Quality Authority.

The new Standards for RTOs 2015 came into effect requiring existing organisations to comply from 1 April 2015. To prepare for this new phase of regulation, we reviewed and modified our relevant policies and procedures to ensure compliance with these new standards.

OUR REGISTERED TRAININGORGANISATION

73

We maintain a strong international presence by actively promoting continuous improvements to international shipping practice and developments related to maritime and aviation search and rescue. We do this through representation at various international and regional bodies, technical cooperation programs, and in memoranda of understanding.

International Maritime OrganizationThe International Maritime Organization (IMO) is the global standard-setting authority for the safety, security and environmental performance of international shipping. It also oversees the obligation for countries to provide a search and rescue service to mariners wherever they sail. Australia is a founding member of the IMO and has been represented on the IMO Council for more than 40 years.

Our key achievements at the IMO in 2014-15 are detailed below.

Initiative Summary

Maritime Safety Committee

Brad Groves, General Manager Navigation Safety and International Relations, was elected as Chairman of the IMO’s Maritime Safety Committee (MSC) for 2016. The election was conducted on 11 June during the 95th session of MSC.

Polar Code The International Code for Ships Operating in Polar Waters (Polar Code) has been adopted by the IMO to come into force on 1 January 2017. The Polar Code covers the full range of shipping-related matters relevant to navigation in polar regions and contains mandatory requirements and recommendations for ships operating in Antarctic and Arctic waters.

The work on developing the Polar Code commenced in 2010 at IMO with AMSA’s active participation representing Australian interests. Through correspondence and working groups, Australia made several significant contributions to the Code, including requirements on lifesaving and firefighting appliances, safe navigation, pollution prevention, emergency response and search and rescue.

Safe carriage of cargo We worked with industry and partner countries to progress new schedules for cargo types that have the potential to liquefy (manganese ore, coal and bauxite); as well as establish interim carriage requirements for liquid hydrogen in bulk.

Waste management We co-sponsored a submission to the IMO Marine Environment Protection Committee which detailed a Regional Reception Facilities Plan (for ships’ waste) for the Small Island Developing States in the Pacific Region. We provided technical assistance to the Secretariat of the Pacific Regional Environment Programme during the development of this plan, and conducted gap analyses of reception facilities in five ports across the region.

Particularly Sensitive Sea Area (PSSA) extension

We submitted a proposal to the IMO to extend the existing Great Barrier Reef and Torres Strait Particularly Sensitive Sea Area (PSSA) into the Coral Sea (page 59). The proposal was approved by the IMO Marine Environment Protection Committee in May 2015 and came into effect in June 2015. The new area covers approximately 564,000 square kilometres of the Coral Sea.

WORKING INTERNATIONALLY


74

Initiative Summary

New ship routeing systems

Three Associated Protective Measures for the south-west Coral Sea accompanied our PSSA proposal to the IMO—a new recommendatory Area to be Avoided and two two-way routes. These measures were adopted by the IMO Maritime Safety Committee in June and will come into effect on 1 January 2016.

On 1 December 2014 a new IMO-adopted recommendatory two-way route in the Great Barrier Reef and Torres Strait came into effect. Automatic Identification System data from early 2015 shows that its implementation has been a success, with most ships following the new route.

A new ship routeing system came into effect on 1 June 2015 at Papua New Guinea’s Jomard Entrance following a joint proposal by Papua New Guinea and Australia to the IMO.

E-navigation We coordinated national and international efforts to develop IMO guidance on Human Centred Design for navigation systems, incorporating Software Quality Assurance and Usability Testing. We also led work at the International Association of Marine Aids to Navigation and Lighthouse Authorities’ (IALA) E-Navigation Committee to draft e-navigation test-bed reporting guidance, which has since been accepted by the IMO.

Safety of life at sea Together with other IMO Member States, we have championed improving the ability of ships to conduct rescues when dedicated search and rescue resources are not available. This came into effect through an International Convention for the Safety of Life at Sea (SOLAS) Regulation adopted by IMO resolution, which takes effect in July 2015. The new regulation requires all ships to develop plans and procedures for such emergency situations, and recommends the carriage of equipment for these recovery operations and the need to conduct drill exercises for ships’ crews.

75

International Civil Aviation OrganizationAs a member of the International Civil Aviation Organization (ICAO) we work closely with the Department of Infrastructure and Regional Development and other Australian Government aviation agencies to fulfil Australia’s obligations as a signatory to the Convention on International Civil Aviation. This involves the provision of an aeronautical search and rescue (SAR) service, aeronautical SAR expertise and advice, and assistance in progressing ICAO’s major initiatives.

Australia has been a member of ICAO’s governing Council since its formation in 1947 and is involved in more than 60 ICAO committees, panels and study groups dealing with a broad cross-section of aviation matters, including being a member of the ICAO Air Navigation Commission. Our key achievements at ICAO in 2014-15 are detailed below.

Initiative Summary

Asia/Pacific SAR Task Force

We continued our leadership towards improvement measures for regional search and rescue services in the region through chairing this task force. Since its establishment in 2012, this task force has contributed significantly to raising the profile of SAR issues within the region, including the development of a regional SAR plan to assist with improving regional capability. It reports to the ICAO Asia/Pacific Air Navigation Planning and Implementation Group, an Air Traffic Management Sub-Group, in which AMSA also participates as a member of the Australian delegation.

Ad-hoc Working Group on Aircraft Tracking

We provided technical SAR expertise as a member of this working group, which during this year developed the new ICAO Global Aeronautical Distress and Safety System Concept of Operation. This proposed new system sets the framework for the development of a worldwide aircraft tracking system to improve current global tracking capability, providing more timely alerts of aircraft emergencies and greater accuracy of aircraft distress locations. This will offer additional support for search and rescue, recovery, and accident investigation activities.

ICAO/IMO Joint Working Group on Harmonization of Aeronautical and Maritime SAR

We maintained our status as one of eight Aeronautical SAR Members of this joint working group. This group assists ICAO and IMO in developing provisions regarding new SAR techniques and procedures where both aeronautical and maritime interests are involved, including the International Aeronautical and Maritime Search and Rescue Manual.

Staff secondment At the beginning of 2015, a jointly funded initiative by the Department of Infrastructure and Regional Development and AMSA saw the secondment of an AMSA SAR technical expert to ICAO Headquarters, Montreal, Canada for 2 years. This initiative was welcomed by ICAO, which now provides the global aeronautical SAR community with a fulltime expert dedicated to addressing worldwide SAR system issues based on key recommendations following the search for Malaysia Airlines flight MH370.


76

International Association of Marine Aids to Navigation and Lighthouse AuthoritiesAMSA is one of the 22 National Member Authorities elected to the International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA). Our specialists are represented at all four technical committees, as well as IALA’s Legal Advisory Panel. Our officers currently occupy the role of Vice Chair of two technical committees: Aids to Navigation Engineering and Sustainability Committee; and Vessel Traffic Services Committee. Our legal officers provided assistance to IALA throughout the year in reviewing the organisation’s secretariat functions and their proposed move to an International Intergovernmental Organisation.

Regional engagementIn addition to our other international obligations, we also work extensively with our neighbouring countries to contribute to the ongoing development of ship safety, search and rescue, and environment protection capability in the Indian Ocean, Asia-Pacific and Antarctic regions.

Indian Ocean regionIn mid-January 2015, we commenced operational delivery of the 2 and half year Search and Rescue Capability Partnership Program with the Maldives, Mauritius and Sri Lanka. This is being delivered under the Department of Foreign Affairs and Trade ‘Government Partnerships for Development’ program. We will receive a total of $2.6 million in funding to work in cooperation with our partnering countries to develop their capability to provide more effective response to maritime and aviation distress situations within their search and rescue regions and to enhance capability in the broader region.

We are a member of two regional memoranda of understanding (MOU) on port State control (PSC) - the Indian Ocean MOU and the Tokyo MOU (in the Asia-Pacific region). In 2014-15 we continued to conduct PSC and maritime English language training courses, and expert missions under both of these arrangements. We also designed, printed and distributed the Indian Ocean MOU manual.

Christine Macmillian, AMSA, meeting with representatives from the Sri Lankan Maritime Rescue Coordination Centre

77

Asia-Pacific region The 16th session of the Asia-Pacific Heads of Maritime Safety Agencies (APHoMSA) forum was held in Shenzhen, China from 21-23 April 2015, bringing together senior maritime officials from across the Asia-Pacific region to discuss issues of mutual interest. As Secretariat of APHoMSA, we continue to have a central role in facilitating the forum. The forum built on improved governance reforms made over the past few years. Support was also provided for a number of matters of significance for Australia.

Providing effective search and rescue capabilities to the vast Pacific region presents a sizeable challenge to a number of countries. In response to these challenges, the Pacific Island countries and territories, together with Australia, New Zealand, France and the United States, developed the Maritime Search and Rescue Technical Arrangement for Cooperation among Pacific Island Countries and Territories. This arrangement has so far been accepted by five countries, including Australia, in support of the effort to improve coordination and collaboration in the region.

We attended the 6th Pacific Regional Search and Rescue Workshop in Noumea, New Caledonia from 13-17 April 2015. As a Development Partner of the Pacific Regional SAR Workshop, we presented many key topics, including a case study on Malaysia Airlines flight MH370; international registration of distress beacons; radio communications for developing rescue coordination centres; and the ICAO Asia Pacific SAR Plan.

In 2012 we completed a SAR Capability Assessment project for the Papua New Guinea (PNG) National Maritime Safety Authority. This resulted in a number of recommendations relating to the provision of PNG’s maritime and aviation search and rescue services. In 2014-15 we undertook an exercise to cost the recommendations, providing PNG with an understanding of the investment required to implement the system improvements.

We provide extensive assistance under the Australian Government’s Indonesian Transport Safety Assistance Package (ITSAP). In 2014-15 our marine surveyors provided training and support to the Indonesian Director General of Sea Transportation in the areas of ship and navigation safety. We also provided search and rescue assistance including: embedding a search and rescue capability officer within Indonesia’s national search and rescue agency BASARNAS; delivering the AMSA-developed e-Broadcast system to provide BASARNAS with the ability to view and communicate with ships transiting through the search and rescue region; delivering drift modelling capability and training to provide BASARNAS with access to real time wind and ocean current data to formulate more accurate search areas (this was subsequently used in conjunction with the e-broadcast system in the search for AirAsia flight QZ8501); and completing 9 BASARNAS search and rescue officer exchange programs.

In 2014-15 we continued to provide high-level marine pollution response assistance to our regional partners in the Pacific. In August an oil spill response training program was held in Apia, Samoa under the partnership between the Secretariat of the Pacific Regional Environment Programme (SPREP), Maritime New Zealand, and AMSA. With SPREP and the IMO, we also co-hosted a regional training workshop in Samoa on International Convention for the Prevention of Pollution From Ships (MARPOL) Annex VI - Air Pollution and Greenhouse Gas Emissions from International Shipping.

International staff exchange programIn October 2014 we hosted 9 participants from China, Republic of Korea, Kiribati and Solomon Islands as part of our inaugural International Staff Exchange Program. The participants were given an overview of our operations, accompanied our marine surveyors through a range PSC activities; studied our International Safety Management processes; and visited some of Australia’s regional pollution prevention and response facilities. We intend to offer an expanded program annually as a way of strengthening relationships with counterpart agencies and helping to build improved maritime safety practices across the region.


78

1APPENDICES

11

80

APPENDIX 1 FINANCIAL STATEMENTS

81

APPENDIX 1 - FINANCIAL STATEMENTS

82

AUSTRALIAN MARITIME SAFETY AUTHORITYSTATEMENT BY THE DIRECTORS, CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Authority will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the directors.

Stuart Richey AM Michael Kinley Attilio MartinielloChairman of the Board Chief Executive Officer Chief Financial OfficerAustralian Maritime Safety Authority Australian Maritime Safety Authority Australian Maritime Safety Authority

24 September 2015 24 September 2015 24 September 2015

83

AUSTRALIAN MARITIME SAFETY AUTHORITYSTATEMENT BY THE DIRECTORS, CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Authority will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the directors.

Stuart Richey AM Michael Kinley Attilio MartinielloChairman of the Board Chief Executive Officer Chief Financial OfficerAustralian Maritime Safety Authority Australian Maritime Safety Authority Australian Maritime Safety Authority

24 September 2015 24 September 2015 24 September 2015

AUSTRALIAN MARITIME SAFETY AUTHORITYStatement of Comprehensive Incomefor the period ended 30 June 2015

2015 2014NET COST OF SERVICES Notes $’000 $’000EXPENSES Employee benefits 3A 59,625 57,637 Suppliers 3B 126,776 134,048 Depreciation and amortisation 3C 13,367 12,565 Finance costs 3D 67 58 Write-down and impairment of assets 3E 384 301 Losses from asset sales 3F 1,780 1,270 Total expenses 201,999 205,879

LESS: OWN-SOURCE INCOMEOwn-Source Revenue Sale of goods and rendering of services 4A 16,342 18,331 Fees and fines 4B 76 - Interest 4C 2,092 2,502 Rental income 4D 833 1,035 Other revenue 4E 560 459 Total own-source revenue 19,903 22,327

Gains Reversals of previous asset write-downs and impairments 4F 2 6 Foreign exchange 4G 2 -Total gains 4 6

Total own-source income 19,907 22,333

Net cost of services 182,092 183,546

Revenue from Government 4H 182,449 186,087 Surplus attributable to the Australian Government 357 2,541

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 13,029 -Total other comprehensive income 13,029 -

Total comprehensive income attributable to the Australian Government 13,386 2,541

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


84

AUSTRALIAN MARITIME SAFETY AUTHORITYStatement of Financial Position as at 30 June 2015

2015 2014Notes $’000 $’000

ASSETSFinancial Assets Cash and cash equivalents 6A 54,909 76,642 Trade and other receivables 6B 9,294 8,064 Other investments 6C 15,000 - Total financial assets 79,203 84,706

Non-Financial Assets Land and buildings 7A,C 21,940 15,856 Property, plant and equipment 7B,C 126,357 123,751 Intangibles 7D,E 10,409 7,438 Inventories 7F 5,169 4,941 Other non-financial assets 7G 6,668 4,440 Total non-financial assets 170,543 156,426

Total Assets 249,746 241,132

LIABILITIESPayables Suppliers 8A 34,769 37,829 Other payables 8B 2,871 2,857 Total payables 37,640 40,686

Interest Bearing Liabilities Finance leases 9 81 -Total interest bearing liabilities 81 -

Provisions Employee provisions 10A 17,212 16,911 Other provisions 10B 5,417 7,525 Total provisions 22,629 24,436

Total Liabilities 60,350 65,122 Net Assets 189,396 176,010

EQUITY Contributed equity 37,986 37,986 Reserves 116,014 102,763 Retained surplus 35,396 35,261 Total equity 189,396 176,010


85

AUST

RALI

AN M

ARIT

IME

SAFE

TY A

UTH

ORI

TYSt

atem

ent o

f Cha

nges

in E

quity

fo

r the

per

iod

ende

d 30

June

201

5

Ret

aine

d ea

rnin

gsA

sset

reva

luat

ion

surp

lus

Gen

eral

rese

rve

Pollu

tion

rese

rve

Con

trib

uted

equ

ity/

capi

tal

Tota

l equ

ity

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

Ope

ning

bal

ance

Bal

ance

car

ried

forw

ard

from

pre

viou

s pe

riod

35,2

61

32,8

82

91,1

01

91,1

01

1,50

0 1,

500

10,1

62

10,0

00

37,9

86

30,5

01

176,

010

165,

984

Adj

uste

d op

enin

g ba

lanc

e35

,261

32

,882

91

,101

91

,101

1,

500

1,50

0 10

,162

10

,000

37

,986

30

,501

17

6,01

0 16

5,98

4

Com

preh

ensi

ve in

com

e

Non

fina

ncia

l ass

et re

valu

atio

n in

crem

ent

- -

11,3

71

- -

- -

- -

-11

,371

-

P

rovi

sion

for r

esto

ratio

n as

sess

men

t -

-1,

658

- -

- -

- -

-1,

658

-

Sur

plus

for t

he p

erio

d35

7 2,

541

- -

- -

- -

- -

357

2,54

1 To

tal c

ompr

ehen

sive

inco

me

357

2,54

1 13

,029

-

- -

- -

- -

13,3

86

2,54

1

Tran

sact

ions

with

ow

ners

Con

trib

utio

ns b

y ow

ners

Equ

ity in

ject

ion

- -

- -

- -

- -

-7,

485

-7,

485

Tota

l tra

nsac

tions

with

ow

ners

- -

- -

- -

- -

-7,

485

-7,

485

Tran

sfer

s be

twee

n eq

uity

com

pone

nts

In

crea

se to

pol

lutio

n re

serv

e(2

22)

(162

) -

- -

222

162

- -

- -

Clo

sing

bal

ance

as

at 3

0 Ju

ne 2

015

35,3

96

35,2

61

104,

130

91,1

01

1,50

0 1,

500

10,3

84

10,1

62

37,9

86

37,9

86

189,

396

176,

010

The

abov

e st

atem

ent s

houl

d be

read

in c

onju

nctio

n w

ith th

e ac

com

pany

ing

note

s.


86

AUSTRALIAN MARITIME SAFETY AUTHORITYCash Flow Statementfor the period ended 30 June 2015

2015 2014Notes $’000 $’000

OPERATING ACTIVITIESCash received Receipts from Government 181,129 186,286 Sale of goods and rendering of services 15,829 17,151 Interest 2,256 2,408 Net GST received 13,116 12,365 Other 1,259 1,280 Total cash received 213,589 219,490

Cash used Employees 59,730 56,593 Suppliers 146,546 136,437 Total cash used 206,276 193,030 Net cash from operating activities 11 7,313 26,460

INVESTING ACTIVITIESCash used Purchase of property, plant and equipment 13,651 12,275 Investments 15,000 -Total cash used 28,651 12,275 Net cash used by investing activities (28,651) (12,275)

FINANCING ACTIVITIESCash received Contributed equity - 7,485 Total cash received - 7,485

Cash used Repayment of borrowings 379 231 Finance lease interest 16 10 Total cash used 395 241 Net cash from financing activities (395) 7,244

Net increase (decrease) in cash held (21,733) 21,429

Cash and cash equivalents at the beginning of the reporting period 76,642 55,213 Cash and cash equivalents at the end of the reporting period 6A 54,909 76,642


87

AUSTRALIAN MARITIME SAFETY AUTHORITYSCHEDULE OF COMMITMENTSas at 30 June 2015

2015 2014BY TYPE $’000 $’000Commitments receivable Sublease rental income and lease incentive (1,779) (409) Other commitments (79,463) (37,622)Total commitments receivable (81,242) (38,031)

Commitments payableCapital commitments Land and buildings 592 380 Property, plant and equipment 1 2,085 3,966 Intangibles 2 759 2,068 Total capital commitments 3,436 6,414

Other commitments Goods and services contracts 3 744,545 342,649 Operating leases 4 80,311 68,379 Total other commitments 824,856 411,028 Net commitments by type 747,050 379,411

BY MATURITYCommitments receivableOperating lease income One year or less (881) (361) From one to five years (898) (48)Total operating lease income (1,779) (409)

Other commitments receivable One year or less (9,819) (7,208) From one to five years (36,424) (16,785) Over five years (33,220) (13,629)Total other commitments receivable (79,463) (37,622)Total commitments receivable (81,242) (38,031)

Commitments payableCapital commitments One year or less 3,436 6,414 Total capital commitments 3,436 6,414

Operating lease commitments One year or less 12,982 13,829 From one to five years 40,004 33,546 Over five years 27,325 21,004 Total operating lease commitments 80,311 68,379

Goods and services contracts commitments One year or less 67,746 59,872 From one to five years 338,854 153,139 Over five years 337,945 129,638 Total goods and services contracts commitments 744,545 342,649 Total commitments payable 828,292 417,442 Net commitments by maturity 747,050 379,411

Commitments are GST inclusive where relevant.


88

AUSTRALIAN MARITIME SAFETY AUTHORITYSCHEDULE OF COMMITMENTS (Cont'd)as at 30 June 2015

Notes:1. Capital commitment for property, plant and equipment is for pollution response equipment and aids to navigation.2. Capital commitment for intangibles is for software systems redevelopment.3. Significant increases in goods and services commitments relate primarily to new contracts for pollution response

capabilities, aids to navigation, information technology outsourcing and search and rescue aerial capability.4. Operating leases included are effectively non-cancellable and are tabled as follows:

Nature of lease General description of leasing arrangement

Occupancy leases AMSA's lease payments are subject to a variety of arrangements, including fixed percentage increases; increases/decreases in accordance with movements in the Consumer Price Index; and adjustment of rentals to current market levels. Some occupancy leases include renewal clauses. Lease payments, subject to varying arrangements as outlined above, and contingent rents have not been taken into account in determining commitments.

Motor vehicles leases No contingent rentals exist. Any renewal or purchase options available are unlikely to be exercised by AMSA.

Contractual arrangements - containing a lease

A portion of AMSA's contract payments are in respect of the exclusive use of specific assets. This portion is recognised as an operating lease in accordance with Interpretation 4 - Determining Whether an Arrangement Contains a Lease. Some payments are subject to increases/decreases in accordance with movements in the Consumer Price Index, and some of the arrangements include an option to renew/extend. Contingent rental amounts have not been taken into account in determining commitments.

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

89

AUSTRALIAN MARITIME SAFETY AUTHORITYNotes to and forming part of the financial statementsfor the period ended 30 June 2015

Table of Contents - Notes

Note 1: Summary of Significant Accounting PoliciesNote 2: Events After the Reporting PeriodNote 3: ExpensesNote 4: Own-Source IncomeNote 5: Fair Value MeasurementNote 6: Financial AssetsNote 7: Non-Financial AssetsNote 8: PayablesNote 9: Interest Bearing LiabilitiesNote 10: ProvisionsNote 11: Cash Flow ReconciliationNote 12: Contingent Liabilities and AssetsNote 13: Senior Management Personnel RemunerationNote 14: Related Party DisclosuresNote 15: Remuneration of AuditorsNote 16: Financial InstrumentsNote 17: Financial Assets ReconciliationNote 18: Reporting of OutcomesNote 19: Cost Recovery SummaryNote 20: Budgetary Reports and Explanations of Major Variances


90

Notes to and forming part of the financial statements

Note 1: Summary of Significant Accounting Policies

1.1 Objective of the Australian Maritime Safety Authority

The Australian Maritime Safety Authority (AMSA) is an Australian Government controlled, not for profit, entity. The objective of AMSA is to:

• promote maritime safety and protection of the marine environment• prevent and combat ship-sourced pollution in the marine environment• provide infrastructure to support safety of navigation in Australian waters• provide a national search and rescue service to the maritime and aviation sectors• provide, on request, services to the maritime industry on a commercial basis• provide, on request, services of a maritime nature on a commercial basis to the Commonwealth and/or states and

territories.

AMSA’s vision is safe and clean seas, saving lives.

AMSA’s Outcome Statement is to minimise the risk of shipping incidents and pollution in Australian waters through ship safety and environment protection regulation and services and maximise people saved from maritime and aviation incidents through search and rescue coordination.

The continued existence of AMSA in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for AMSA’s administration and programs.

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The financial statements have been prepared in accordance with:

• Financial Reporting Rule 2015 (FRR) for reporting periods ending on or after 1 July 2014; and• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB)

that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. The accounting policies are consistent with the previous year except where otherwise disclosed.

1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, AMSA has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

• estimates relating to “certain on cost factors” applied in calculating long service leave entitlements, see 1.8 below• any liabilities in relation to pollution incident costs, see 1.15 below

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period unless noted.

91


Note 1: Summary of Significant Accounting Policies (Cont’d)

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

AASB 1055: Budgetary Reporting (issued in March 2013)

This standard applies to annual reporting periods beginning on or after 1 July 2014. It requires the reporting of budgetary information by not-for-profit entities within the General Government Sector against actual outcomes and explanations of significant variances between the budget and the actuals. Comparative information is not required.

No accounting standard has been adopted earlier than the application date as stated in the standard.

Future Australian Accounting Standard Requirements

No other new standards, revised standards, interpretations or amending standards that were issued by the Australian Accounting Standards Board prior to the signing of the statement by the Chairman, Chief Executive Officer and Chief Financial Officer, and are applicable to the future reporting period, are expected to have a future material financial impact on AMSA.

1.5 Revenue

Revenue from the sale of goods is recognised when:

• the risks and rewards of ownership have been transferred to the buyer• AMSA retains no managerial involvement or effective control over the goods• the revenue and transaction costs incurred can be reliably measured• it is probable that the economic benefits associated with the transaction will flow to AMSA.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured• the probable economic benefits associated with the transaction will flow to AMSA.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

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

Revenue from Government

Funding received or receivable from non-corporate Commonwealth entities (appropriated to the Department of Infrastructure and Regional Development as a corporate Commonwealth entity payment item for payment to AMSA) is recognised as revenue from government by AMSA unless the funding is in the nature of an equity injection or a loan.

1.6 Gains

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

In 2014-15, AMSA had no transactions with the Government as owner (2013-14: one).


92



1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and ‘termination benefits’ due within twelve months of the end of the reporting period are measured at their nominal amounts.

Leave

The liability for employee benefits includes provision for annual leave, professional leave, surveyors leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of AMSA is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will apply at the time the leave is taken, including AMSA’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination. AMSA used the shorthand method in accordance with the FRR (as per the Commonwealth Entities Financial Statements Guide) to calculate the long service leave liability.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. AMSA recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those affected employees that it will carry out the terminations.

Superannuation

The majority of AMSA staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS Accumulation Plan (PSSap). Other schemes staff belong to are the Australian Government Employees Superannuation Trust (AGEST) and self managed super funds. The CSS and PSS are defined benefit schemes for the Australian Government. All other schemes are defined contribution schemes. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

AMSA makes employer contributions to the employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of AMSA’s employees. AMSA accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June 2015 represents outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

93



1.10 Borrowing Costs

All borrowing costs are expensed as incurred.

1.11 Fair Value Measurement

AMSA deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.

1.12 Cash

Cash and cash equivalents include cash on hand and demand deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.13 Financial Assets

AMSA classifies its financial assets in the following categories:

• held-to-maturity investments• loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Financial Assets at Fair Value through Profit or Loss

Assets in this category are classified as current assets. Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.

Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised directly in reserves (equity) with the exception of impairment losses. Interest is calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognised directly in profit or loss. Where the asset is disposed of or is determined to be impaired, part (or all) of the cumulative gain or loss previously recognised in the reserve is included in surplus and deficit for the period.

Where a reliable fair value cannot be established for unlisted investments in equity instruments, these instruments are valued at cost.

Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that AMSA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.


94



Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period. Financial assets held at amortised cost - If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

1.14 Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or ‘other financial liabilities’.

Financial liabilities are recognised and derecognised upon ‘trade date’. Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other Financial Liabilities

‘Other financial liabilities’ are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). 1.15 Pollution incident costs

Under Australia’s National Plan for Maritime Environmental Emergencies, AMSA is responsible for reimbursing the direct clean up costs arising from an oil pollution incident that cannot be recovered from the polluter. AMSA makes these reimbursements on the basis of polluter (or potential polluter) pays, either from the Pollution Reserve or by adjusting the Protection of the Sea Levy accordingly to recover any reimbursements made or due to be made.

Where AMSA has such a reimbursement obligation, AMSA determines an estimate of that obligation in accordance with Australian Accounting Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets by determining a range of possible outcomes from which a sufficiently reliable estimate of the obligation can be made.

In determining an estimate of the obligation AMSA considers reliable available information, advice from independent experts, experience with similar incidents and AMSA’s reasonable expectation of the probability of occurrence.

1.16 Pollution Reserve

AMSA has established a Pollution Reserve to enable it to fund responses to pollution incidents while claims are being settled and as a contingency in the event that future pollution claims exceed the limited liability of any ship owner.

AMSA has also established an unsecured commercial line of credit of $40 million, bringing AMSA’s total pollution response financial capability to $50 million.

95



1.17 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote. 1.18 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.19 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $3,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in land, buildings, furniture and fittings and aids to navigation taken up by AMSA where there exists an obligation to make good at the end of any lease term. These costs are included in the value of AMSA’s assets with a corresponding provision for the ‘make good’ recognised. Revaluations

Fair values for each class of asset are determined as shown below:

Following initial recognition at cost, property plant and equipment are carried at latest valuation less subsequent depreciation and impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the operating result. Revaluation decrements for a class of assets are recognised directly in the operating result except to the extent that they reversed a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Australian Valuation Solutions (AVS) has provided a comprehensive review and valuation of all stated assets with representative sample inspections undertaken for each asset class as at 30 June 2015 for financial reporting purposes. This valuation was performed in accordance with all aspects of the relevant accounting, insurance and valuation framework, which includes (but is not limited to) the Financial Reporting Rule 2015 (Part 3, Section 17), AASB 13 Fair Value Measurement and AASB 116 Property, Plant and Equipment. The fair value of assets was measured by the three approaches recognised by AASB 13 including the market comparison approach, the cost approach and the income capitalisation approach. These approaches are consistent with generally accepted valuation methodologies utilised by the valuation profession.


96



Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each type of depreciable asset are based on the following useful lives:

Reportable Asset types 2015 2014

Buildings on freehold land 20 to 40 years 20 to 40 years

Property, Plant and Equipment is made up of the following:

- Furniture and Fittings (includes leasehold improvements)* 2 to 10 years 2 to 10 years

- Office and Computer Equipment 3 to 16 years 3 to 16 years

- Plant and Equipment 3 to 30 years 3 to 30 years

- Aids to Navigation 3 to 40 years 3 to 40 years

- Vessels and Amphibians 10 to 20 years 10 to 20 years

- Vehicles 5 to 8 years 5 to 8 years

* Leasehold improvements are depreciated over the life of the lease.

Impairment

All assets were assessed for impairment at 30 June 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Heritage assets

Heritage assets held by AMSA are not brought to account. While a small number of these items are on display in AMSA’s offices they are not considered to be held for public exhibition, education or research, nor are they used in the operational activities of AMSA. The economic benefit from the use of the items that would result if AMSA were deprived of these items is not material.

Certain aids to navigation assets (such as heritage lighthouses) are primarily held as operational assets rather than being held for cultural, environmental or historical significance value and are therefore accounted for in accordance with AASB 116 Property, Plant and Equipment. Other aids to navigation assets under finance leases are accounted for under AASB 117 Leases.

1.20 Capital Works Under Construction

Capital works under construction are carried at cost as ‘Work In Progress’ and capitalised when completed and ready for use.

1.21 Intangibles

AMSA’s intangibles comprise purchased or internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful life of AMSA’s software is 5 to 15 years (2013-14: 5 to 15 years). All software assets were assessed for indications of impairment as at 30 June 2015.

97



1.22 Inventories

AMSA’s inventory is largely for its own consumption or distribution at nil cost. While AMSA does not ordinarily hold inventory for sale, if sales are made they represent the distribution of inventory at a nominal value. AMSA’s inventories are valued at cost, adjusted for any loss of service potential. Inventories acquired at no cost or at nominal consideration are initially measured at current replacement cost at the date of acquisition.

1.23 Taxation / Competitive Neutrality

AMSA is exempt from all forms of taxation except Fringe Benefits Tax (FBT), Goods and Services Tax (GST) and Customs Duties. Revenues, expenses and assets are recognised net of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office, and for receivables and payables.

1.24 Insurance

AMSA has insured for risks through the Government insurable risk fund, Comcover. Workers compensation is insured through Comcare.

1.25 AMSA Levy Collection

The Marine Navigation Levy, the Marine Navigation (Regulatory Functions) Levy and the Protection of the Sea Levy are collected on behalf of the Government by the Department of Immigration and Border Protection and designated AMSA staff. Collected levies are transferred to the Department of Infrastructure and Regional Development for deposit to the Official Public Account.

AMSA collected $113,078,014 of levies (gross collection) on behalf of the Government during 2014-15 (2013-14: $116,445,942).


Note 2: Events After the Reporting Period

There were no post balance date events that need to be disclosed in the financial statements for the year ended 30 June 2015.


98


Note 3: Expenses2015 2014$’000 $’000

Note 3A: Employee Benefits Wages and salaries 42,719 41,074 Superannuation Defined contribution plans 5,379 4,028 Defined benefit plans 3,413 4,543 Leave and other entitlements 6,489 6,620 Separation and redundancies 874 732 Other employee benefits - Fringe Benefits Tax 751 640 Total employee benefits 59,625 57,637

Note 3B: SuppliersGoods and services supplied or rendered Travel and transport 6,564 7,829 Material and services 92,262 97,136 Communications 7,037 6,201 Administration 6,165 8,219 Total goods and services supplied or rendered 112,028 119,385

Goods supplied in connection with Related entities 2,523 4,592 External parties 95,702 93,553 Total goods supplied 98,225 98,145

Services rendered in connection with External parties 13,803 21,240 Total services rendered 13,803 21,240 Total goods and services supplied or rendered 112,028 119,385

Other suppliers Operating lease rentals – external parties Minimum lease payments 14,486 14,337 Workers compensation expenses 262 326 Total other suppliers 14,748 14,663 Total supplier 126,776 134,048

99

Notes to and forming part of the financial statements Note 3: Expenses (Cont'd)

2015 2014$’000 $’000

Note 3C: Depreciation and AmortisationDepreciation Buildings 492 478 Property, plant and equipment 11,383 11,067 Total depreciation 11,875 11,545

Amortisation Assets held under finance leases 115 119 Intangibles Computer software 1,377 901 Total amortisation 1,492 1,020 Total depreciation and amortisation 13,367 12,565

Note 3D: Finance Costs Finance leases 16 10 Unwinding of discount 51 48 Total finance costs 67 58

Note 3E: Write-Down and Impairment of Assets Asset write-downs and impairments from: Write-down of inventory 367 299 Impairment of receivables 17 2 Total write-down and impairment of assets 384 301

Note 3F: Losses from Asset Sales Land and buildings Proceeds from sale (400) - Carrying value of assets sold 673 20 Selling expense 14 - Property, plant and equipment Carrying value of assets disposed 1,493 1,250 Total losses from asset sales 1,780 1,270


100


Note 4: Own-Source Income2015 2014

OWN-SOURCE REVENUE $’000 $’000Note 4A: Sale of Goods and Rendering of ServicesSale of goods in connection with External parties 127 115 Total sale of goods 127 115

Rendering of services in connection with Related entities 2,262 1,678 External parties 13,953 16,538 Total rendering of services 16,215 18,216 Total sale of goods and rendering of services 16,342 18,331

Note 4B: Fees and Fines Fines 76 -Total fees and fines 76 -

Note 4C: Interest Deposits 2,092 2,502 Total interest 2,092 2,502

Note 4D: Rental Income Operating lease: Sublease -related entities 478 530 Sublease -external parties 355 505 Total rental income 833 1,035

Note 4E: Other Revenue Insurance recoveries 560 459 Total other revenue 560 459

101


Note 4: Own-Source Income (Cont’d)2015 2014

GAINS $’000 $’000Note 4F: Reversals of Previous Asset Write-Downs and Impairments Reversal of impairment for receivables recovered 2 2 Reversal of impairment losses for property, plant and equipment - 4 Total reversals of previous asset write-downs and impairments 2 6

Note 4G: Foreign Exchange Gain Non-speculative 2 -Total foreign exchange gains 2 -

Note 4H: Revenue from Government Department of Infrastructure and Regional Development Corporate Commonwealth Entity payment item 182,449 186,087 Total revenue from Government 182,449 186,087

Represented by: Levy revenue: Australian Maritime Safety Act 1990. s48 Marine Navigation Levy 32,314 31,354 Marine Navigation (Regulatory Functions) Levy 48,349 46,315 Protection of the Sea Levy 31,268 39,253 Services provided on behalf of the Government 65,284 65,080 Other 5,234 4,085

182,449 186,087


102

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

Not

e 5:

Fai

r Val

ue M

easu

rem

ent

The

follo

win

g ta

bles

pro

vide

an

anal

ysis

of a

sset

s an

d lia

bilit

ies

that

are

mea

sure

d at

fair

valu

e.Th

e di

ffere

nt le

vels

of t

he fa

ir va

lue

hier

arch

y ar

e de

fined

bel

ow.

Leve

l 1: Q

uote

d pr

ices

(una

djus

ted)

in a

ctiv

e m

arke

ts fo

r ide

ntic

al a

sset

s or

liab

ilitie

s th

at th

e en

tity

can

acce

ss a

t mea

sure

men

t dat

e.Le

vel 2

: Inp

uts

othe

r tha

n qu

oted

pric

es in

clud

ed w

ithin

Lev

el 1

that

are

obs

erva

ble

for t

he a

sset

or l

iabi

lity,

eith

er d

irect

ly o

r ind

irect

ly.Le

vel 3

: Uno

bser

vabl

e in

puts

for t

he a

sset

or l

iabi

lity.

Not

e 5A

: Fai

r Val

ue M

easu

rem

ents

, Val

uatio

n Te

chni

ques

and

Inpu

ts U

sed

Fair

valu

e m

easu

rem

ents

Fo

r Lev

els

2 an

d 3

fair

valu

e m

easu

rem

ents

2015

2014

Cat

egor

y N

otes

$'00

0$'

000

Leve

lVa

luat

ion

Tech

niqu

e(s)

Inpu

ts U

sed

Ran

ge (w

eigh

ted

aver

age)

Non

-fina

ncia

l ass

ets

La

nd7A

3,49

0 4,

360

2 M

arke

t app

roac

hA

djus

ted

mar

ket t

rans

actio

nsN

A

Land

7A28

0 -

3 M

arke

t app

roac

hA

djus

ted

mar

ket t

rans

actio

ns(2

0.0%

) -20

.0%

B

uild

ings

7A

4,79

9 5,

956

2 M

arke

t App

roac

hA

djus

ted

mar

ket t

rans

actio

ns

NA

B

uild

ings

7A

767

-3

Mar

ket A

ppro

ach

Adj

uste

d m

arke

t tra

nsac

tions

(1

0.0%

) -10

.0%

B

uild

ings

7A

8,45

7 5,

540

3 D

epre

ciat

ed re

plac

emen

t co

st (D

RC

)R

epla

cem

ent c

ost -

New

- pr

ice

per s

quar

e m

etre

, C

onsu

med

eco

nom

ic b

enefi

t / O

bsol

esce

nce

of a

sset

New

- N

A, 2

.2%

- 5.

0%

(2.5

%) p

er a

nnum

Le

aseh

old

impr

ovem

ent

7B8,

226

9,18

0 3

Dep

reci

ated

repl

acem

ent

cost

(DR

C)

Rep

lace

men

t cos

t - N

ew (p

rice

per s

quar

e m

etre

), C

onsu

med

eco

nom

ic b

enefi

t / O

bsol

esce

nce

of a

sset

New

- N

A, 1

.4%

- 33

.3%

(7

.7%

) per

ann

um

Pro

perty

, pla

nt &

equ

ipm

ent

7B3,

760

6,63

4 2

Mar

ket a

ppro

ach

Adj

uste

d m

arke

t tra

nsac

tions

N

A

P

rope

rty, p

lant

& e

quip

men

t7B

531

-3

Mar

ket a

ppro

ach

Adj

uste

d m

arke

t tra

nsac

tions

(2

0.0%

) -10

.0%

P

rope

rty, p

lant

& e

quip

men

t7B

106,

774

103,

115

3 D

epre

ciat

ed re

plac

emen

t co

st (D

RC

)R

epla

cem

ent c

ost -

New

, Con

sum

ed e

cono

mic

be

nefit

/ O

bsol

esce

nce

of a

sset

New

- N

A, 0

.5%

- 5.

0%

(2.9

%) p

er a

nnum

Tota

l non

-fina

ncia

l ass

ets

137,

084

134,

785

Tota

l fai

r val

ue m

easu

rem

ents

of a

sset

s in

th

e st

atem

ent o

f fina

ncia

l pos

ition

137,

084

134,

785

Non

-fina

ncia

l lia

bilit

ies

Pro

visi

on fo

r res

tora

tion

3,32

2 4,

970

3 D

epre

ciat

ed re

plac

emen

t co

st (D

RC

)R

epla

cem

ent c

ost -

New

, Con

sum

ed e

cono

mic

be

nefit

/ O

bsol

esce

nce

of a

sset

New

- N

A, 0

.5%

- 5.

0%

(2.9

%) p

er a

nnum

Non

-fina

ncia

l lia

bilit

ies

3,32

2 4,

970

Tota

l fai

r val

ue m

easu

rem

ents

of l

iabi

litie

s in

the

stat

emen

t of fi

nanc

ial p

ositi

on3,

322

4,97

0

Fair

valu

e m

easu

rem

ents

- H

ighe

st a

nd B

est U

se

AM

SA’

s as

sets

are

hel

d fo

r ope

ratio

nal p

urpo

ses

and

not h

eld

for t

he p

urpo

ses

of d

eriv

ing

a pr

ofit.

The

curr

ent u

se o

f all

cont

rolle

d as

sets

is c

onsi

dere

d th

eir h

ighe

st a

nd b

est u

se.

1. A

MS

A di

d no

t mea

sure

any

non

-fina

ncia

l ass

ets

at fa

ir va

lue

on a

non

-rec

urrin

g ba

sis

as a

t 30

June

201

5.2.

The

re h

ave

been

cha

nges

to th

e va

luat

ion

tech

niqu

es fo

r ass

ets

in th

e pr

oper

ty, p

lant

and

equ

ipm

ent c

lass

. In

inst

ance

s w

here

suf

ficie

nt o

bser

vabl

e in

puts

, suc

h as

mar

ket t

rans

actio

ns o

f

sim

ilar a

sset

s, w

ere

not i

dent

ified

this

fina

ncia

l yea

r, th

e va

luat

ion

tech

niqu

e w

as c

hang

ed fr

om a

Mar

ket a

ppro

ach

to a

DR

C a

ppro

ach.

103


Note 5: Fair Value Measurement (Cont'd) Note 5A: Fair Value Measurements, Valuation Techniques and Inputs Used (Cont'd)

Sensitivity of the fair value measurement to changes in unobservable inputs for category level 3

Land - Market approachThe significant unobservable inputs used in the fair value measurement of AMSA’s land asset class relate to the adopted price per square metre. A significant increase (decrease) in market transactions would result in a significantly higher (lower) fair value measurement.

Building - Market approachThe significant unobservable inputs used in the fair value measurement of AMSA’s building asset class relate to the adopted price per square metre. A significant increase (decrease) in market transactions would result in a significantly higher (lower) fair value measurement.

Building - Depreciated replacement cost (DRC)A significant increase (decrease) in this consumed economic benefit / obsolescence of the asset would result in a significantly higher (lower) fair value measurement.

Leasehold improvement - Depreciated replacement cost (DRC)A significant increase (decrease) in this consumed economic benefit / obsolescence of the asset would result in a significantly higher (lower) fair value measurement.

Property, plant and equipment - Market approachA significant increase (decrease) in market transactions may result in a significantly higher (lower) fair value measurement.

Property, plant and equipment - Depreciated replacement cost (DRC)A significant increase (decrease) in this consumed economic benefit / obsolescence of the asset would result in a significantly higher (lower) fair value measurement.

Provision for restoration - Depreciated replacement cost (DRC)A significant increase (decrease) in this consumed economic benefit / obsolescence of the asset would result in a significantly higher (lower) fair value measurement.

104


Note 5: Fair Value Measurement (Cont'd)

Note 5A: Fair Value Measurements, Valuation Techniques and Inputs Used (Cont’d)

Recurring and non-recurring Level 3 fair value measurements - valuation processesAMSA tests the procedures of the valuation model as an asset materiality review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. AMSA engaged Australian Valuation Solutions (AVS) to undertake a full revaluation and confirms that the models developed comply with AASB 13 Fair Value Measurement.

Significant Level 3 inputs utilised by AMSA are derived and evaluated as follows:

Land & buildings - Adjusted market transactionsAMSA controls assets situated in remote locations where property markets experience few transactions. Reference was made to available sales evidence together with other relevant information related to local economic, property zoning and property market conditions. AVS has used significant professional judgement in determining the fair value measurements.

Leasehold improvements, Buildings, Property, plant and equipment - Consumed economic benefit / Obsolescence of assetAssets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated replacement cost or DRC) approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit / asset obsolescence (accumulated depreciation). Consumed economic benefit / asset obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration.

Property, plant and equipment - Adjusted market transactionsThe significant unobservable inputs used in the fair value measurement of property, plant and equipment assets relates to the market demand and valuers’ judgement to determine the fair value measurement of these assets. A significant increase (decrease) in this input would result in a significant higher (lower) fair value measurement.The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset.

105

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

Not

e 5:

Fai

r Val

ue M

easu

rem

ent (

Cont

'd)

Not

e 5B

: Rec

onci

liatio

n fo

r Rec

urrin

g Le

vel 3

Fai

r Val

ue M

easu

rem

ents

Rec

urrin

g Le

vel 3

fair

valu

e m

easu

rem

ents

- re

conc

iliat

ion

for a

sset

s

Non

-fina

ncia

l ass

ets

Bui

ldin

gs B

uild

ings

La

ndLa

ndLe

aseh

old

impr

ovem

ents

Leas

ehol

d im

prov

emen

ts

Prop

erty

, pl

ant &

eq

uipm

ent

Pro

perty

, pl

ant &

eq

uipm

ent

Tota

lTo

tal

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

As

at 1

Jul

y5,

540

5,81

2 -

-9,

180

7,47

5 10

3,11

5 10

0,42

2 11

7,83

5 11

3,70

9

To

tal g

ains

/(los

ses)

reco

gnis

ed in

net

cos

t of

se

rvic

es1

(519

)(2

72)

- -

(2,1

50)

(1,8

35)

(9,3

19)

(9,0

29)

(11,

988)

(11,

136)

To

tal g

ains

/(los

ses)

reco

gnis

ed in

oth

er

com

preh

ensi

ve in

com

e13,

383

-55

-

(282

) -

10,6

45

-13

,801

-

P

urch

ases

821

-22

5 -

1,21

1 3,

540

2,44

3 11

,722

4,

700

15,2

62

Tr

ansf

ers

betw

een

clas

ses

- -

- -

267

-(2

67)

- -

-

Tr

ansf

ers

into

Lev

el 3

2 -

- -

- -

-73

4 -

734

-

Tr

ansf

ers

out o

f Lev

el 3

2 -

- -

- -

-(4

5) -

(45)

-

Tota

l as

at 3

0 Ju

ne9,

225

5,54

0 28

0 -

8,22

6 9,

180

107,

306

103,

115

125,

037

117,

835

Cha

nges

in u

nrea

lised

gai

ns/(l

osse

s) re

cogn

ised

in

net c

ost o

f ser

vice

s 3

- -

- -

- -

- -

- -

1. T

hese

gai

ns/(l

osse

s) a

re p

rese

nted

in th

e st

atem

ent o

f com

preh

ensi

ve in

com

e un

der d

epre

ciat

ion

and

amor

tisat

ion,

loss

of a

sset

sal

es a

nd c

hang

e in

ass

et re

valu

atio

n su

rplu

s.2.

The

tran

sfer

s in

to L

evel

3 h

iera

rchy

dur

ing

the

year

wer

e du

e to

ass

ets

that

are

no

long

er v

alue

d us

ing

a m

arke

t app

roac

h (w

ith a

DR

C a

ppro

ach

adop

ted

due

to a

lack

of r

elia

ble

mar

ket e

vide

nce)

3. T

here

are

no

Leve

l 3 u

nrea

lised

gai

ns/(l

osse

s) p

rese

nted

in th

e st

atem

ent o

f com

preh

ensi

ve in

com

e th

is y

ear.

AM

SA

's p

olic

y fo

r det

erm

inin

g w

hen

trans

fers

bet

wee

n le

vels

are

dee

med

to h

ave

occu

rred

can

be

foun

d in

Not

e 1.


106


Note 5: Fair Value Measurement (Cont'd)

Note 5B: Reconciliation for Recurring Level 3 Fair Value Measurements (Cont'd)

Recurring Level 3 fair value measurements - reconciliation for liabilitiesNon-financial liabilities

Provision for restoration

Provision for restoration

2015 2014$’000 $’000

As at 1 July 4,970 4,971

Total gains/(losses) recognised in net cost of services1 10 (643)

Total gains/(losses) recognised in other comprehensive income1 (1,658) -

Purchases - 642

Total as at 30 June 3,322 4,970

Changes in unrealised gains/(losses) recognised in net cost of services 2 - -

1. These gains/(losses) are presented in the statement of comprehensive income under finance costs and change in asset revaluation surplus.

2. There are no Level 3 unrealised gains/(losses) presented in the statement of comprehensive income this year.

AMSA's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

107


Note 6: Financial Assets2015 2014$’000 $’000

Note 6A: Cash and Cash Equivalents Cash on hand 11,909 14,642 On deposits 43,000 62,000 Total cash and cash equivalents 54,909 76,642

Note 6B: Trade and Other Receivables Good and services receivables in connection with Related entities 4 32 External parties 562 326

Total receivables for goods and services 566 358

Department of Infrastructure and Regional Development: Receivables 3,238 1,918

Total receivable from Department of Infrastructure and Regional Development 3,238 1,918

Other receivables: GST receivable from the Australian Taxation Office 4,113 4,392 Interest 265 341 Operating lease rentals -related entities - 46 Other receivables -related entities - 322 Other receivables -external entities 1,129 689 Total other receivables 5,507 5,790 Total trade and other receivables (gross) 9,311 8,066

Less impairment allowance Goods and services (17) (2)Total impairment allowance (17) (2)Total trade and other receivables (net) 9,294 8,064

Trade and other receivables (net) expected to be recovered No more than 12 months 9,294 8,064 Total trade and other receivables (net) 9,294 8,064


108


Note 6: Financial Assets (Cont'd)2015 2014$’000 $’000

Trade and other receivables (gross) aged as follows Not overdue 8,663 7,921 Overdue by: 0 to 30 days 367 78 31 to 60 days 243 55 61 to 90 days 18 5 More than 90 days 20 7 Total trade and other receivables (gross) 9,311 8,066

Impairment allowance aged as follows Overdue by: More than 90 days 17 2 Total impairment allowance 17 2

Credit terms for goods and services were within 30 days (2014: 30 days).

Reconciliation of the Impairment Allowance

Goods and services2015 2014$'000 $'000

Opening balance 2 5 Amounts written off 17 (3) Amounts recovered and reversed (2) (2) Increase/ (decrease) recognised in net cost of services - 2 Closing balance 17 2

2015 2014$’000 $’000

Note 6C: Other Investments

Deposits1 15,000 -Total other investments 15,000 -

Total other investments are expected to be recovered in: No more than 12 months 15,000 -Total other investments 15,000 -

1. Term deposits in banks greater than three months.

109


Note 7: Non-Financial Assets2015 2014$’000 $’000

Note 7A: Land and BuildingsLand Fair value 3,770 4,360 Total land 3,770 4,360

Buildings on freehold land Work in progress 4,147 - Valuation 14,023 12,447 Accumulated depreciation - (951)Total buildings on freehold land 18,170 11,496

Total land and buildings 21,940 15,856

No indicators of impairment were found for land and buildings.No land or buildings are expected to be sold or disposed of within the next 12 months.

Note 7B: Property, Plant and EquipmentLeasehold improvements Valuation 8,226 12,115 Accumulated depreciation - (2,935)Total leasehold improvements 8,226 9,180

Other property, plant and equipment Work in progress 7,066 4,822 Valuation 111,065 129,875 Accumulated depreciation - (19,950) Accumulated impairment losses - (176)Total other property, plant and equipment 118,131 114,571 Total property, plant and equipment 126,357 123,751

There was no reversal of impairment losses to property, plant and equipment this year (2014: $3,901).No property, plant and equipment are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assetsAn independent valuer (Australian Valuation Solutions) has revalued the net book values of the asset classes owned by AMSA as at 30 June 2015 for financial reporting purposes.Revaluation decrement of $395,522 for land (2014: $0), increment of $2,435,545 for buildings on freehold land (2014: $0) and an increment of $9,330,890 for property, plant and equipment (2014: $0) were booked to the asset revaluation reserve by asset class and included in the equity section of the Balance Sheet.All revaluations were conducted in accordance with the revaluation policy stated at Note 1.


110

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

Not

e 7:

Non

-Fin

anci

al A

sset

s (Co

nt'd

)

Not

e 7C

: R

econ

cilia

tion

of th

e O

peni

ng a

nd C

losi

ng B

alan

ces

of P

rope

rty,

Pla

nt a

nd E

quip

men

t 201

5

Tota

l lan

dO

ther

pro

pert

y,

Land

Bui

ldin

gsan

d bu

ildin

gspl

ant &

equ

ipm

ent

Tota

l

$’00

0$’

000

$’00

0$’

000

$’00

0

As

at 1

Jul

y 20

14

Gro

ss b

ook

valu

e4,

360

12,4

47

16,8

07

146,

812

163,

619

A

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

and

impa

irmen

t -

(951

)(9

51)

(23,

061)

(24,

012)

Net

boo

k va

lue

1 Ju

ly 2

014

4,36

0 11

,496

15

,856

12

3,75

1 13

9,60

7

Add

ition

s

By

purc

hase

225

4,98

4 5,

209

6,26

6 11

,475

Rev

alua

tions

reco

gnis

ed in

oth

er c

ompr

ehen

sive

inco

me

(395

)2,

435

2,04

0 9,

331

11,3

71

D

epre

ciat

ion/

amor

tisat

ion

expe

nse

-(4

92)

(492

)(1

1,49

8)(1

1,99

0)

Dis

posa

ls

Oth

er(4

20)

(253

)(6

73)

(1,4

93)

(2,1

66)

Net

boo

k va

lue

30 J

une

2015

3,77

0 18

,170

21

,940

12

6,35

7 14

8,29

7

Net

boo

k va

lue

as o

f 30

June

201

5 re

pres

ente

d by

:

Gro

ss b

ook

valu

e3,

770

18,1

70

21,9

40

126,

357

148,

297

Net

boo

k va

lue

30 J

une

2015

3,77

0 18

,170

21

,940

12

6,35

7 14

8,29

7

111

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

Not

e 7:

Non

-Fin

anci

al A

sset

s (Co

nt'd

)

Not

e 7C

: R

econ

cilia

tion

of th

e O

peni

ng a

nd C

losi

ng B

alan

ces

of P

rope

rty,

Pla

nt a

nd E

quip

men

t 201

4

Tota

l lan

dO

ther

pro

perty

, La

ndB

uild

ings

and

build

ings

plan

t & e

quip

men

t To

tal

$’00

0$’

000

$’00

0$’

000

$’00

0A

s at

1 J

uly

2013

G

ross

boo

k va

lue

4,36

0 12

,470

16

,830

14

1,18

7 15

8,01

7

Acc

umul

ated

dep

reci

atio

n/am

ortis

atio

n an

d im

pairm

ent

-(4

76)

(476

)(1

3,63

8)(1

4,11

4)N

et b

ook

valu

e 1

July

201

34,

360

11,9

94

16,3

54

127,

549

143,

903

A

dditi

ons

B

y pu

rcha

se -

- -

8,63

4 8,

634

R

ever

sal o

f im

pairm

ent l

osse

s -

- -

4 4

D

epre

ciat

ion/

amor

tisat

ion

expe

nse

-(4

78)

(478

)(1

1,18

6)(1

1,66

4)

Dis

posa

ls

Oth

er -

(20)

(20)

(1,2

50)

(1,2

70)

Net

boo

k va

lue

30 J

une

2014

4,36

0 11

,496

15

,856

12

3,75

1 13

9,60

7

Net

boo

k va

lue

as o

f 30

June

201

4 re

pres

ente

d by

:

Gro

ss b

ook

valu

e4,

360

12,4

47

16,8

07

146,

812

163,

619

A

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

-(9

51)

(951

)(2

2,88

5)(2

3,83

6)

Acc

umul

ated

impa

irmen

t los

ses

- -

-(1

76)

(176

)N

et b

ook

valu

e 30

Jun

e 20

144,

360

11,4

96

15,8

56

123,

751

139,

607


112


Note 7: Non-Financial Assets (Cont'd)

2015 2014

Note 7D: Intangibles $’000 $’000Computer software

Internally developed – in progress 3,883 1,664 Internally developed – in use 8,537 7,327 Purchased 3,116 2,189

Total computer software (gross) 15,536 11,180 Accumulated amortisation (5,127) (3,742)

Total intangibles 10,409 7,438

No indicators of impairment were found for intangible assets.No intangibles are expected to be disposed of in the next 12 months.

Note 7E: Reconciliation of the Opening and Closing Balances of Intangibles 2015

Computer software Total

$’000 $’000As at 1 July 2014 Gross book value 11,180 11,180 Accumulated depreciation/amortisation and impairment (3,742) (3,742)Net book value 1 July 2014 7,438 7,438 Additions

By purchase or internally developed 4,348 4,348 Amortisation (1,377) (1,377)Net book value 30 June 2015 10,409 10,409

Net book value as of 30 June 2015 represented by: Gross book value 15,536 15,536 Accumulated depreciation/amortisation and impairment (5,127) (5,127)Net book value 30 June 2015 10,409 10,409

Note 7E: Reconciliation of the Opening and Closing Balances of Intangibles 2014

Computer software Total

$’000 $’000As at 1 July 2013 Gross book value 9,328 9,328 Accumulated depreciation/amortisation and impairment (4,147) (4,147)Net book value 1 July 2013 5,181 5,181 Additions

By purchase or internally developed 3,158 3,158 Amortisation (901) (901)Net book value 30 June 2014 7,438 7,438

Net book value as of 30 June 2014 represented by: Gross book value 11,180 11,180 Accumulated depreciation/amortisation and impairment (3,742) (3,742)Net book value 30 June 2014 7,438 7,438

113


Note 7: Non-Financial Assets (Cont'd)2015 2014$’000 $’000

Note 7F: Inventories Inventories held for distribution 5,169 4,941 Total inventories 5,169 4,941

$594,881 of inventory held for distribution was recognised as an expense in 2015 (2014: $544,824).No items of inventory were recognised at fair value less cost to sell.

Note 7G: Other Non-Financial AssetsPrepayments 6,668 4,440

Total other non-financial assets 6,668 4,440

Total other non-financial assets - are expected to be recovered in:No more than 12 months 2,266 2,048 More than 12 months 4,402 2,392

Total other non-financial assets 6,668 4,440


114


Note 8: Payables2015 2014$’000 $’000

Note 8A: Suppliers Trade creditors and accruals 24,795 27,602 Operating lease rentals 9,974 10,227 Total supplier payables 34,769 37,829

Supplier payables expected to be settled in no more than 12 monthsRelated entities 209 689 External parties 25,011 27,173

Total 25,220 27,862

Supplier payables expected to be settled in more than 12 monthsExternal parties 9,549 9,967

Total 9,549 9,967 Total supplier payables 34,769 37,829

Settlement was usually made within 30 days.

Note 8B: Other Payables Salaries and wages 2,180 2,187 Superannuation 311 272 Separation and redundancies 353 388 Prepayments received/unearned income 26 10 Other 1 -Total other payables 2,871 2,857

Other payables are expected to be settled No more than 12 months 2,871 2,857

Total other payables 2,871 2,857

115


Note 9: Interest Bearing Liabilities2015 2014$’000 $’000

Finance leases 81 -Total finance leases 81 -

Lease expected to be settled Within one year

Minimum lease payments 82 - Deduct: future finance charges (1) -

Total finance leases 81 -

A finance lease exists in relation to aids to navigation assets from Australian Maritime Services Ltd. The lease is non-cancellable and is for a fixed term of 10 years (ending June 2024). The interest rate implicit in the lease is 5.59%. There are no contingent rentals.


116


Note 10: Provisions2015 2014$’000 $’000

Note 10A: Employee Provisions Leave 17,212 16,911 Total employee provisions 17,212 16,911

Employee provisions expected to be settled No more than 12 months 5,085 4,704 More than 12 months 12,127 12,207

Total employee provisions 17,212 16,911

Note 10B: Other Provisions Provision for restoration 3,322 4,970 Provision for asbestos removal 2,063 2,203 Provision for onerous lease 32 150 Provision for business unit restructuring - 202 Total other provisions 5,417 7,525

Other provisions expected to be settled No more than 12 months 82 338 More than 12 months 5,335 7,187

Total other provisions 5,417 7,525

Other provisions

Restoration Asbestos removal

Onerous lease

Business unit restructuring Total

$’000 $’000 $’000 $’000 $’000

Carrying amount 1 July 2014 4,970 2,203 150 202 7,525

Additional provisions made - 12 - - 12

Amounts used (17) (7) (120) (202) (346)

Amounts reversed (1,658) (167) - - (1,825)

Unwinding of discount or change in discount rate 27 22 2 - 51

Closing balance 30 June 2015 3,322 2,063 32 - 5,417

Provision for restorationAMSA has an obligation contained in leases or legislation for the making good to five property leases and 159 aids to navigation sites. AMSA has therefore made a provision to reflect the present value of this obligation.

117


Note 11: Cash Flow Reconciliation2015 2014

$’000 $’000

Reconciliation of cash and cash equivalents as per Statement of financial position to Cash flow statementCash and cash equivalents as per Cash flow statement 54,909 76,642 Statement of financial position 54,909 76,642 Difference - -

Reconciliation of net cost of services to net cash from operating activities Net cost of services (182,092) (183,546) Revenue from Government 182,449 186,087

Adjustment for non-cash items Depreciation and amortisation 13,367 12,565 Reversal of impairment losses for property, plant and equipment - (4) Loss on disposal of assets 1,780 1,270 Finance costs 67 58

Movements in assets / liabilities (Increase) in net receivables (1,230) (30) (Increase) in inventories (228) (535) (Increase) in other non financial assets (2,228) (1,024) Increase in employee provisions 301 821 Increase / (decrease) in supplier payables* (4,887) 10,488 Increase in other payables 14 310 Net cash from operating activities 7,313 26,460

* This change is net of any non-financial asset accruals.


118


Note 12: Contingent Liabilities and Assets

Contingent assets

Claims for damages or costs Total

2015 2014 2015 2014$’000 $’000 $’000 $’000

Balance from previous period 13,875 14,052 13,875 14,052 New contingent assets recognised 551 167 551 167 Re-measurement (4,515) 169 (4,515) 169 Assets realised (1,039) - (1,039) - Rights expired - (513) - (513)Total contingent assets 8,872 13,875 8,872 13,875

Contingent liabilities

Claims for damages or costs Total

2015 2014 2015 2014$’000 $’000 $’000 $’000

Balance from previous period 5,018 5,000 5,018 5,000

New contingent liabilities recognised - 18 -

18 Re-measurement (4,500) - (4,500) -Total contingent liabilities 518 5,018 518 5,018

Net contingent assets 8,354 8,857 8,354 8,857

Quantifiable ContingenciesThe quantifiable contingencies include pollution incidents of $518,000 (2014: $5,018,000). The recovery of the amounts disclosed as contingent liabilities is included in the amounts disclosed as a contingent asset. The contingent assets include insurance claims for cyclone damage to a number of aids to navigation of $490,000 (2014: $117,000) and pollution incidents of $8,382,000 (2014: $13,758,000).

Unquantifiable ContingenciesIn the normal course of operation, AMSA is responsible for the provision of funds necessary to meet the clean up costs arising from ship sourced marine pollution, and in all circumstances is responsible for making appropriate efforts to recover costs of any such incidents.In accordance with the accounting policy in Note 1.17, where quantifying a reasonable estimate of the cost to remediate ship sourced marine pollution has not been possible, no amount has been included.

Significant Remote ContingenciesAMSA had no significant remote contingencies.

119


Note 13: Senior Management Personnel Remuneration

2015 2014

$ $Short-term employee benefits Salary 2,774,538 3,136,755 Performance bonuses 323,581 296,122 Car parking - inclusive of FBT 44,818 44,833 Other expenses - inclusive of FBT where applicable 74,120 166,127 Total short-term employee benefits 3,217,057 3,643,837

Post-employment benefits Superannuation 457,059 459,517 Total post-employment benefits 457,059 459,517

Other long-term employee benefits Annual leave accrued 214,720 118,674 Long-service leave (113,534) (201,065)Total other long-term employee benefits 101,186 (82,391)

Total senior executive remuneration expenses 3,775,302 4,020,963

Notes:1. The total number of senior management personnel that are included in the above table is 19 (2014:15). The figures vary between financial years due to individuals commencing with or leaving AMSA during the financial year.2. The figures above do not include two directors as they do not receive payments from AMSA.3. Note 13 was prepared on an accrual basis. 4. Directors are also included in this note and in the comparatives.

Note 14: Related Party Disclosures

No loans, grants or other transactions have been made to any related parties.

Note 15: Remuneration of Auditors2015 2014$’000 $’000

Financial statement audit services were provided to AMSA by the Australian National Audit Office (ANAO) 95 90

Total 95 90

No other services were provided by the ANAO.


120


Note 16: Financial Instruments2015 2014

Notes $'000 $'000

Note 16A: Categories of Financial Instruments

Financial assetsReceivables

Cash and cash equivalents 6A 54,909 76,642 Receivables for goods and services 6B 549 356 Other receivables 6B 1,394 1,352 Other investments 6C 15,000 -

Total receivables 71,852 78,350 Total financial assets 71,852 78,350

Financial liabilitiesFinancial liabilities measured at amortised cost

Finance leases 9 81 -Trade creditors 8A 24,795 27,602

Total financial liabilities measured at amortised cost 24,876 27,602 Total financial liabilities 24,876 27,602

Note 16B: Net Gains or Losses on Financial AssetsReceivables

Exchange gains 4G 2 -Interest revenue 4C 2,092 2,502

Net gain on receivables 2,094 2,502

Net gain on financial assets 2,094 2,502

The net income from financial assets not at fair value through profit and loss was $2,094,221 (2014: $2,501,593).

Note 16C: Net Gains or Losses on Financial LiabilitiesFinancial liabilities measured at amortised cost

Interest expense 3D 16 10

Net loss on financial liabilities measured at amortised cost 16 10

Net loss on financial liabilities 16 10

The total interest expense from financial liabilities not at fair value through profit and loss was $16,083 (2014: $9,816).

121


Note 16: Financial Instruments (Cont'd)

Note 16D: Fair Value of Financial Instruments

Carrying Fair Carrying Fairamount value amount value

2015 2015 2014 2014$'000 $'000 $'000 $'000

Financial assets Cash and cash equivalents 54,909 54,909 76,642 76,642 Receivables for goods and services 549 549 356 356 Other receivables 1,394 1,394 1,352 1,352 Other investments 15,000 15,000 - -Total 71,852 71,852 78,350 78,350

Financial liabilities Finance leases 81 81 - - Trade creditors 24,795 24,795 27,602 27,602 Total 24,876 24,876 27,602 27,602


122


Note 16: Financial Instruments (Cont'd) Note 16E: Credit Risk

AMSA is exposed to minimal credit risk as the majority of receivables are for appropriations or amounts owed by the Australian Tax Office in the form of a Goods and Services Tax refund.The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade, other receivables and interest 2015: $1,960,000 (2014: $1,710,000). AMSA has assessed the risk of the default on payment and has allocated $16,727 in 2015 (2014: $2,368) to an impairment allowance account.In addition, AMSA had policies and procedures that guided employees on debt recovery techniques that were to be applied. AMSA held no collateral to mitigate against credit risk.The following table illustrates AMSA's gross exposure to credit risk, excluding any collateral or credit enhancements

2015 2014$'000 $'000

Financial assetsCash and cash equivalents 54,909 76,642 Receivables for goods and services 549 356 Other receivables 1,394 1,352 Other investments 15,000 -

Total 71,852 78,350

Financial liabilitiesFinance leases 81 -Trade creditors 24,795 27,602

Total 24,876 27,602

Credit quality of financial instruments not past due or individually determined as impaired

Not past due nor impaired

Not past due nor impaired

Past due or impaired

Past due or impaired

2015 2014 2015 2014$'000 $'000 $'000 $'000

Financial assetsCash and cash equivalents 54,909 76,642 - -Receivables for goods and services (99) 211 648 145 Other receivables 1,394 1,352 - -Other investments 15,000 - - -

Total 71,204 78,205 648 145

Ageing of financial assets that were past due but not impaired for 20150 to 30 31 to 60 61 to 90 90+

days days days days Total$'000 $'000 $'000 $'000 $'000

Receivables for goods and services 367 243 18 3 631 Total 367 243 18 3 631

Ageing of financial assets that were past due but not impaired for 20140 to 30

days31 to 60

days61 to 90

days90+

days Total$'000 $'000 $'000 $'000 $'000

Receivables for goods and services 78 55 5 5 143 Total 78 55 5 5 143

123


Note 16: Financial Instruments (Cont'd)

Note 16F: Liquidity Risk

AMSA's financial liabilities are trade creditors and finance leases. The exposure to liquidity risk is based on the notion that AMSA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the entity and internal policies and procedures put in place to ensure that there are appropriate resources to meet its financial obligations.

Maturities for non-derivative financial liabilities 2015On Within 1 1 to 5 > 5

demand year years years Total$'000 $'000 $'000 $'000 $'000

Finance lease liabilities - 81 - - 81 Trade creditors - 24,795 - - 24,795 Total - 24,876 - - 24,876

Maturities for non-derivative financial liabilities 2014On Within 1 1 to 5 > 5

demand year years years Total$'000 $'000 $'000 $'000 $'000

Trade creditors - 27,602 - - 27,602 Total - 27,602 - - 27,602

AMSA has no derivative financial liabilities in either the current and prior years.

Note 16G: Market Risk

Foreign currency riskForeign currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. AMSA is exposed to foreign exchange currency risk primarily through undertaking certain transactions denominated in foreign currency.AMSA is exposed to foreign currency denominated in Papua New Guinea (PNG) $3,112 Kina (2014: $3,112 Kina), Western Samoa Tala $6,000 WST (2014: $6,000 WST) and United States Dollar $5,700 USD (2014: $5,700 USD).The effect on profit and equity as at the reporting date from a 10.9% (2014: 11.5%) favourable/unfavourable change in Australian dollars against foreign currency holdings with all other variables held constant is $1,252.12 (2014: $1,079.88).The method used to arrive at the possible currency risk of 10.9% was based on both statistical and non-statistical analysis. The statistical analysis has been based on main currencies’ movement for the last five years. This information is then revised and adjusted for reasonableness under the current economic circumstances.

Interest rate riskTo ensure sufficient liquidity to meet AMSA’s working capital requirements, AMSA’s short term investments are set with certain parameters, namely Standard & Poors rating of A-1+ and/or Moody’s P-1 for authorised deposit-taking institutions (ADIs).


124


Note 17: Financial Assets Reconciliation2015 2014

Notes $'000 $'000Note 17: Financial Assets

Total financial assets as per Statement of financial position 79,203 84,706

Less: Non-financial instrument componentsReceivable from Department of Infrastructure and Regional Development 6B 3,238 1,918 Operating lease rentals - related entities 6B - 46 GST receivable from the Australian Taxation Office 6B 4,113 4,392

Total non-financial instrument components 7,351 6,356 Total financial assets as per financial instruments note 16A 71,852 78,350

Note 18: Reporting of Outcomes

Note 18: Net Cost of Outcome Delivery

AMSA has only one outcome as disclosed in Note 1.1.

Outcome 1 Total2015$’000

2014$’000

2015$’000

2014$’000

Expenses 201,999 205,879 201,999 205,879 Own-source income 19,907 22,333 19,907 22,333

Net cost of outcome delivery 182,092 183,546 182,092 183,546

Net costs shown include intra-government costs that are eliminated in calculating the actual budget outcome.

125


Note 19: Cost Recovery Summary2015 2014

Note 19: Cost Recovery $'000 $'000

Amounts appliedPayments from Department of Infrastructure and Regional Development 110,611 116,561 Own source revenue 3,637 3,894

Total amounts applied 114,248 120,455

ExpensesCost recovered activities* 120,383 111,792

Total expenses 120,383 111,792

RevenuePayments from Department of Infrastructure and Regional Development 111,931 116,922 Own source revenue 3,658 4,128

Total revenue 115,589 121,050

ReceivablesNot overdue 3,336 2,151 Overdue by:

0 to 30 days 42 -31 to 60 days 30 -61 to 90 days 18 -More than 90 days 19 -

Total receivables 3,445 2,151

* Cost recovered activities:1. Environmental protection – preventing and combating ship-sourced pollution in the marine environment.2. Navigation infrastructure - provision of aids to navigation.3. Ship and seafarer safety – safety regulation through the ship and cargo inspection program, developing and

maintaining legislative instruments and operational standards, including international liaison.4. Marine services, ship registration and issuing a range of seagoing qualifications.

Documentation (Cost Recovery Implementation Statement) for the above activities is available on the environment section of the AMSA website.

Note 20: Budgetary Reports and Explanations of Major Variances

The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for AMSA. The Budget is not audited.


126


Note 20: Budgetary Reports and Explanations of Major Variances (Cont’d)Note 20A: Departmental Budgetary ReportsAUSTRALIAN MARITIME SAFETY AUTHORITYStatement of Comprehensive Incomefor the period ended 30 June 2015

Actual Budget estimateOriginal1 Variance2

2015 2015 2015NET COST OF SERVICES $’000 $’000 $’000EXPENSES Employee benefits 59,625 59,102 523 Suppliers 126,776 122,687 4,089 Depreciation and amortisation 13,367 12,539 828 Finance costs 67 - 67 Write-down and impairment of assets 384 - 384 Losses from asset sales 1,780 - 1,780 Total expenses 201,999 194,328 7,671

LESS: OWN-SOURCE INCOMEOwn-Source Revenue Sale of goods and rendering of services 16,342 16,546 (204) Fees and fines 76 - 76 Interest 2,092 1,800 292 Rental income 833 710 123 Other revenue 560 - 560 Total own-source revenue 19,903 19,056 847

Gains Reversals of previous asset write-downs and impairments 2 - 2 Foreign exchange 2 - 2 Total gains 4 - 4

Total own-source income 19,907 19,056 851

Net cost of services 182,092 175,272 6,820

Revenue from Government 182,449 175,272 7,177 Surplus attributable to the Australian Government 357 - 357

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves 13,029 - 13,029 Total other comprehensive income 13,029 - 13,029

Total comprehensive income attributable to the Australian Government 13,386 - 13,386

1. AMSA's original budgeted financial statement that was first presented to parliament in respect of the reporting period 2014-15 Portfolio Budget Statements (PBS).

2. Explanations of major variances are provided further below between the actual and original budgeted amounts for 2015. 127


Note 20: Budgetary Reports and Explanations of Major Variances (Cont’d) AUSTRALIAN MARITIME SAFETY AUTHORITYStatement of Financial Position as at 30 June 2015


2015 2015 2015$’000 $’000 $’000

ASSETSFinancial Assets Cash and cash equivalents 54,909 43,896 11,013 Trade and other receivables 9,294 8,400 894 Other investment 15,000 - 15,000 Total financial assets 79,203 52,296 26,907

Non-Financial Assets Land and buildings 21,940 21,579 361 Property, plant and equipment 126,357 127,089 (732) Intangibles 10,409 10,898 (489) Inventories 5,169 5,479 (310) Other non-financial assets 6,668 7,870 (1,202)Total non-financial assets 170,543 172,915 (2,372)

Total Assets 249,746 225,211 24,535

LIABILITIESPayables Suppliers 34,769 26,900 7,869 Other payables 2,871 2,350 521 Total payables 37,640 29,250 8,390

Interest Bearing Liabilities Finance leases 81 - 81 Total interest bearing liabilities 81 - 81

Provisions Employee provisions 17,212 18,320 (1,108) Other provisions 5,417 5,543 (126)Total provisions 22,629 23,863 (1,234)

Total Liabilities 60,350 53,113 7,237 Net Assets 189,396 172,098 17,298

EQUITY Contributed equity 37,986 37,986 - Reserves 116,014 102,601 13,413 Retained surplus 35,396 31,511 3,885 Total equity 189,396 172,098 17,298


2. Explanations of major variances are provided further below between the actual and original budgeted amounts for 2015.


128

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

Not

e 20

: Bud

geta

ry R

epor

ts a

nd E

xpla

natio

ns o

f Maj

or V

aria

nces

(Con

t’d)

AU

STR

ALI

AN

MA

RIT

IME

SAFE

TY A

UTH

OR

ITY

Stat

emen

t of C

hang

es in

Equ

ity

for t

he p

erio

d en

ded

30 J

une

2015 R

etai

ned

earn

ings

2015

$’00

0

Ass

et re

valu

atio

n re

serv

esG

ener

al re

serv

ePo

llutio

n re

serv

eC

ontr

ibut

ed e

quity

/ca

pita

lTo

tal e

quity

Act

ual

Bud

get e

stim

ate

Act

ual

Bud

get e

stim

ate

Act

ual

Bud

get e

stim

ate

Act

ual

Bud

get e

stim

ate

Act

ual

Bud

get e

stim

ate

Act

ual

Bud

get e

stim

ate

Orig

inal

1Va

rianc

e2O

rigin

al1

Varia

nce2

Orig

inal

1Va

rianc

e2O

rigin

al1

Varia

nce2

Orig

inal

1Va

rianc

e2O

rigin

al1

Varia

nce2

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

Ope

ning

bal

ance

Bal

ance

car

ried

forw

ard

from

pre

viou

s pe

riod

35,2

61

31,5

11

3,75

0 91

,101

91

,101

-

1,50

0 1,

500

-10

,162

10

,000

162

37,9

8637

,986

-17

6,01

017

2,09

83,

912

Adj

uste

d op

enin

g ba

lanc

e35

,261

31

,511

3,

750

91,1

01

91,1

01

-1,

500

1,50

0 -

10,1

62

10,0

0016

2 37

,986

37,9

86 -

176,

010

172,

098

3,91

2

Com

preh

ensi

ve in

com

e

Non

fina

ncia

l ass

et

reva

luat

ion

incr

emen

t -

- -

11,3

71

-11

,371

-

- -

- -

- -

- -

11,3

71

-11

,371

Pro

visi

on fo

r res

tora

tion

as

sess

men

t -

- -

1,65

8 -

1,65

8 -

- -

- -

- -

- -

1,65

8 -

1,65

8

S

urpl

us fo

r the

per

iod

357

-35

7 -

- -

- -

- -

- -

- -

-35

7 -

357

Tota

l com

preh

ensi

ve

inco

me

357

-35

7 13

,029

-13

,029

- -

- -

- -

- -

-13

,386

-13

,386

Tran

sfer

s be

twee

n eq

uity

co

mpo

nent

s

Incr

ease

to p

ollu

tion

rese

rve

(222

) -

(222

) -

- -

- -

-22

2 -

222

- -

- -

- -

Clo

sing

bal

ance

as

at 3

0 Ju

ne 2

015

35,3

9631

,511

3,

885

104,

130

91,1

01

13,0

291,

500

1,50

0 -

10,3

8410

,000

384

37,9

8637

,986

-18

9,39

617

2,09

817

,298

1. A

MS

A's

orig

inal

bud

gete

d fin

anci

al s

tate

men

t tha

t was

firs

t pre

sent

ed to

par

liam

ent i

n re

spec

t of t

he re

porti

ng p

erio

d 20

14-1

5 P

ortfo

lio B

udge

t Sta

tem

ents

(PB

S).

2. E

xpla

natio

ns o

f maj

or v

aria

nces

are

pro

vide

d fu

rther

bel

ow b

etw

een

the

actu

al a

nd o

rigin

al b

udge

ted

amou

nts

for 2

015.

129


Note 20: Budgetary Reports and Explanations of Major Variances (Cont’d)

AUSTRALIAN MARITIME SAFETY AUTHORITYCash Flow Statementfor the period ended 30 June 2015


2015 2015 2015$’000 $’000 $’000

OPERATING ACTIVITIESCash received Receipts from Government 181,129 175,116 6,013 Sale of goods and rendering of services 15,829 17,256 (1,427) Interest 2,256 2,014 242 Net GST received 13,116 10,387 2,729 Other 1,259 1,684 (425)Total cash received 213,589 206,457 7,132

Cash used Employees 59,730 57,206 2,524 Suppliers 146,546 139,093 7,453 Total cash used 206,276 196,299 9,977 Net cash from operating activities 7,313 10,158 (2,845)

INVESTING ACTIVITIESCash used Purchase of property, plant and equipment 13,651 21,129 (7,478) Investments 15,000 - 15,000 Total cash used 28,651 21,129 7,522 Net cash used by investing activities (28,651) (21,129) (7,522)

FINANCING ACTIVITIESCash used Repayment of borrowings 379 - 379 Finance lease interest 16 - 16 Total cash used 395 - 395 Net cash from financing activities (395) - (395)

Net increase (decrease) in cash held (21,733) (10,971) (10,762)

Cash and cash equivalents at the beginning of the reporting period 76,642 54,867 21,775 Cash and cash equivalents at the end of the reporting period 54,909 43,896 11,013


2. Explanations of major variances are provided further below between the actual and original budgeted amounts for 2015.


130


Note 20: Budgetary Reports and Explanations of Major Variances (Cont’d)

Note 20B: Departmental Major Budget Variances for 2015

Explanations of major variances Affected line items (and statement)

Suppliers PaidSupplier expenses increased by $4.089 million, payables increased by $7.869 million and the cash used for suppliers increased by $7.453 million. This is a result of undertaking additional externally funded maritime related training activities of $3.683 million for other agencies and an increase in cost for search and rescue by $1.141 million. Also contributing to the variance is the payable balance at year end 30 June 2014 being $7.870 million higher than in the original budget primarily due to an increase in search and rescue activity relating to Malaysian airlines MH370 incident.

Supplier expenses (Statement of comprehensive income), Supplier payable (Statement of financial position) and Operating cash used - suppliers (Cash flow statement).

Losses asset sales and inventory impairmentLosses from write down of aids to navigation assets of $1.780 million arising from cyclone damage and obsolescence. Write down of dispersant stock by $0.384 million used for combating oil spill pollution.

Losses asset sales and impairment write down (Statement of comprehensive income).

EmployeesEmployee expenses increased by $0.523 million, cash used increased by $2.524 million and provisions decreased by $1.108 million. The key contributing factor is payout of unused leave balances from staff departures.

Employee expenses (Statement of comprehensive income), Employee provision (Statement of financial position) and Operating cash used - employees (Cash flow statement).

Revenue from Government

The variance of $7.177 million is due primarily to an increase of $8.689 million in cash received for the Malaysian airlines MH370 search and rescue incident from additional estimates and net effect of levy and other income.

Revenue from Government (Statement of comprehensive income) and cash received (Cash flow statement).

Own source IncomeVariance of $0.847 million is mainly attributable to an insurance recovery related to the MV Tycoon incident.

Own source Income (Statement of comprehensive income).

Cash and InvestmentsThe cash and investments balance increase by $26.013 million is mainly attributable to underspend in planned capital works and a $8.689 million receipt for MH370 not in the original budget.

Financial assets (Statement of financial position) and Operating cash received and cash used - property, plant and equipment (Cash flow statement).

Equity changeThe difference in the equity of $17.298 million is attributable to closing equity balance as at 30 June 2014 being higher by $3.912 million compared to estimated value in original budget and an increase of $13.029 million from asset revaluation.

Changes in asset revaluation (Operating Statement), Equity change (Statement of Changes in Equity).

131


132

We measure our performance against the strategies, objectives and deliverables set out in the Portfolio Budget Statements 2014-15 (PBS) and Corporate Plan 2014-2018 (CP). These can also be found in the AMSA Strategic Vision 2013-2033 and our Plan on a Page (page v). These documents are available on our website (amsa.gov.au).

This appendix details our performance targets, and results against those targets, separated by strategic challenge.

Achieved Partially achieved Not achieved

SC1: ADDRESSING GROWTH AND COMPLEXITY IN OUR OPERATING ENVIRONMENT

Reference Key performance indicator Target Result

SHIP SAFETY

PBS 2014-15 Page 133

Prog. 1.1

Sub. Prog. 1.1.1

Improved standard of foreign ships operating in Australian waters

Declining average number of deficiencies per inspection, within each priority group.

Priority 1: 3.5

Priority 2: 3.1 1

Priority 3: 2.7

Priority 4: 2.4 2

PBS 2014-15 Page 136

Prog. 1.1

Sub. Prog. 1.1.1

There is a reduction over time in the ratio of reports to AMSA under the Navigation Act 2012 of significant ship operational incidents compared to the total number of ship port visits to Australia, and the average number of deficiencies per ship inspection

Ship operation incidents: 0.2%

Ship inspection deficiency rates: <3.25 average per inspection

Ship operation incidents: 0.04%

Ship inspection deficiency rates:

2.7 deficiencies per inspection

PBS 2014-15 Page 133

Prog. 1.1

Sub. Prog. 1.1.1

Inspection rate of risk assessed eligible foreign-flagged ships

Priority one ships: 80%

Priority two ships: 60%

Priority three ships: 40%

Priority four ships: 20%

Priority 1: 93%

Priority 2: 84%

Priority 3: 71%

Priority 4: 58%

PBS 2014-15 Page 133

Prog. 1.1

Sub. Prog. 1.1.1

Number of port and flag State ship inspections

Port State inspections: 3000

Flag State inspections: 60

Port State inspections: 4106

Flag State inspections: 84

APPENDIX 2 NON-FINANCIAL PERFORMANCE

1 The deficiency rate per inspection of Priority 2 ships was slightly higher in 2014-15 (3.1) than in 2013-14 (2.9). This was due to a higher rate of Maritime Labour Convention, 2006 (MLC, 2006) deficiencies, in part because 2014-15 was the first full year of application of this Convention.

2 There was a higher deficiency rate for Priority 4 ships (2.4) compared to 2013-14 (2.0). This resulted from a slightly higher deficiency rate in the structural/equipment, operational and human factor deficiency categories due to an increased inspection focus on these areas. The International Safety Management deficiency rate was unchanged and the MLC, 2006 deficiency rate was slightly lower.

133


MARINE ENVIRONMENT

PBS 2014-15 Page 134

Prog. 1.1

Sub. Prog. 1.1.1

Availability of pollution response resources and equipment to a pollution incident

100% 100%

PBS 2014-15 Page 134

Prog. 1.1

Sub. Prog. 1.1.1

Availability of emergency response capability

100% availability of emergency towage vessels and fixed wing dispersal aircraft

99% 3

PBS 2014-15 Page 136

Prog. 1.1

Sub. Prog. 1.1.1

There is a reduction over time in the ratio of reports to AMSA under the Protection of the Sea (Prevention of Pollution from Ships) Act 1983 of serious pollution incidents

Significant pollution incidents: < 0.7

Significant pollution incidents: Nil

PBS 2014-15 Page 133

Prog. 1.1

Sub. Prog. 1.1.1

All regulatory measures introduced internationally or domestically are given effect within specified timeframes

100% 100%

3 The Emergency Towage Vessel (ETV) Coral Knight was detained in Cairns on 11 December 2014 due to non-conformances of the International Safety Management Code. Appropriate measures were put in place and training completed to rectify the deficiencies and the vessel was released on 15 December. Discussions were held with the primary contractor and a plan put in place to ensure both the management and crew of the operators of the ETV are all aware of their legislative obligations in regards to operating and crewing an Australian-flagged vessel.

APPENDIX 2 - NON-FINANCIAL PERFORMANCE

134


SEARCH AND RESCUE

PBS 2014-15 Page 135

Prog. 1.1

Sub. Prog. 1.1.2

Provision of Rescue Coordination Centre (RCC) with capacity to handle incidents and searches

Incidents: 8500

Searches: 740

Incidents: 7664

Searches: 447 4

PBS 2014-15 Page 135

Prog. 1.1

Sub. Prog. 1.1.2

Availability of distress and safety communications services

100% of the time 99.44% of the time 5

PBS 2014-15 Page 135

Prog. 1.1

Sub. Prog. 1.1.2

Number of search and rescue units

5 dedicated airborne units and an additional 50 trained units available on an opportunity basis

4 dedicated airborne units and an additional 52 trained units available on an opportunity basis 6

PBS 2014-15 Page 135

Prog. 1.1

Sub. Prog. 1.1.2

Median time for the Rescue Coordination Centre to initiate a response

30 minutes 27 minutes

PBS 2014-15 Page 136

Prog. 1.1

Sub. Prog. 1.1.2

Maximise percentage of saved lives as a proportion of lives at risk. (A person is defined as being at risk if the person has a chance of surviving the initial maritime or aviation incident)

100% 98.1% 7

(262 lives saved)

4 AMSA Search and Rescue conducted 447 searches this year compared to 504 in 2013-14. This is a 13 per cent decrease, which can be attributed to the reduced number of suspected asylum seeker vessels, as well as a successful beacon registration campaign which resulted in more incidents being resolved before search operations were initiated.

5 The availability target was not achieved due to minor hardware faults and a lightning strike disabling one of the two ground tracking stations (LUTs) for a short period of time. However, system redundancy ensured our search and rescue services were not negatively impacted.

6 The contract for the dedicated aircraft in Darwin ended on 31 January 2015, with the remaining AeroRescue bases closing from August 2016 to February 2017. From December 2016, the new service will provide full national coverage with 3 bases. Opportunity providers will be used while we transition to the new service provider.

7 Our objective is to save all lives at risk during distress incidents. In practice, the circumstances of individual incidents determine the success of search and rescue responses and achievement of a perfect 100 per cent is not expected. In 2014-15 the principal factors militating against a 100 per cent result related to severe injuries in the occurrence of incidents and medical conditions of the people at risk.

135


NAVIGATION SAFETY AND INTERNATIONAL RELATIONS

CP 2014-18

Perf. Meas. 6

Page 12

All regulatory measures introduced internationally are given effect in Marine Orders within specified timeframes

100% 93% 8

PBS 2014-15 Page 134

Prog. 1.1

Sub. Prog. 1.1.2

Availability of the Marine Aids to Navigation network (compliance with International Association of Marine Aids to Navigation and Lighthouse Authorities guidelines)

Visual aids:

Category 1 Lights: 99.8%

Category 2 Lights: 99%

Category 3 Lights: 95%

Unlit Beacons: 97%

Topmarks and daymarks: 97%

Electronic aids:

AIS: 99.6%

DGPS: 99.8%

Met-ocean sensors: 99.8%

REEFVTS Radars: 99.6%

Racons: 99.6%

Visual aids:




Unlit Beacons: 100%

Topmarks and daymarks: 99.9%

Electronic aids:

AIS: 99.3% 9

DGPS: 99.8%

Met-ocean sensors: 99.8%

REEFVTS Radars: 98.6%10

Racons: 99.9%

8 Twelve Marine Orders were given effect within specified timeframes during the year. Two Marine Orders were given effect within specified timeframes during the period. Work on outstanding Marine Orders is progressing, although planned dates slipped due to legal and policy complexities, and resource unavailability.

9 The target for Automatic Identification System (AIS) availability was not met due to an extended outage of the Swain Reefs satellite communications link.

10 The target for Great Barrier Reef and Torres Strait Vessel Traffic Service (REEFVTS) radar availability was not met due to extended outages at Pelorus Island radar (due to cyclone-related damage to the solar power supply).


136


DOMESTIC VESSELS 11

PBS 2014-15 Page 134

Prog. 1.1

Sub. Prog. 1.1.2

Further develop service delivery partnerships with jurisdictions and arrangements for the national maritime safety regulatory system

Completed by June 2016

While the remaining streamlining reforms are being progressed for finalisation in quarter one of 2015-16, we are also undertaking a strategic review of streamlining reforms to ensure they complement a coherent National System.

CP 2014-18

Perf. Meas. 1

Page 15

Implement the National System for Domestic Commercial Vessel Safety

Fully implemented by July 2016

Discrete functions and services of the National System will be implemented in stages.

A significant training program, which has centred on the use of the National Data Management System, has been undertaken across Australia with National System delegates. The training is in line with our commitment to improving the control environment surrounding the National Law and will help us work more closely with our delegates.

11 Domestic Vessels content is included under strategic challenges 1 and 2. The indicators are the same, however the results are different (to cover our current operating environment and change activities).

137

SC2: KEEPING PACE WITH CHANGE Reference Key performance indicator Target Result

DOMESTIC VESSELS

PBS 2014-15 Page 134

Prog. 1.1

Sub. Prog. 1.1.2

Further develop service delivery partnerships with jurisdictions and arrangements for the national maritime safety regulatory system

Completed by June 2016

The National System Transition Program has been focussed on the preparation of a transition package which will be tabled at a Maritime Senior Officials Group meeting in July 2015. The transition package will include discussion about a blueprint, costs and cost recovery, transitional funding and engagement with industry.

CP 2014-18

Perf. Meas. 1

Page 15

Implement the National System for Domestic Commercial Vessel Safety

Fully implemented by July 2016

Project managers have been allocated to 12 projects and planning is progressing. Other projects will be brought on line over time.

As the program moves into the delivery phase it is expected that the program structure will change to reflect the work required.


138

SC3: ENSURING A COMPETENT AND FAIRLY TREATED MARITIME WORKFORCE

Reference Performance indicator Target Result

SHIP SAFETY

CP 2014-18

Perf. Meas. 1

Page 17

The number of entry level certificates shows an increase on previous years (allowing for one-off fluctuations in some years due to changes to the regulatory framework)

• seafarer certificates processed (all types): 9857

• certificates of competency (CoC): 904

• oral examinations: 615

• safety training certificates (CoST): 3963

• International Safety Management audits: 56

• certificates of all types: 5568

• certificates of competency (CoC): 1154

• oral examinations: 655

• safety training certificates (CoST): 212312

• International Safety Management audits: 77

CP 2014-18

Perf. Meas. 2

Page 17

Seafarers’ welfare support systems are coordinated and services to seafarers are improved

• Ongoing engagement and provision of information to stakeholders

• Active role in education, compliance and enforcement

We continued to engage with, and provide information to, our stakeholders, and played an active role in education, compliance and enforcement activities.

CP 2014-18

Perf. Meas. 3

Page 17

Marine Order 11 (living and working conditions on vessels) is reviewed

To implement a new revised Marine Order 11 following a review of issues arising from implementation of the Maritime Labour Convention, 2006

The revised Marine Order 11 came into force 1 May 2015.

12 There are often significant fluctuations year to year in demand levels for seafarers’ qualifications, usually resulting from changes to the regulatory requirements of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW).

139


SC4: INFLUENCING INTERNATIONAL ARRANGEMENTS


NAVIGATION SAFETY AND INTERNATIONAL RELATIONS

CP 2014-18

Perf. Meas. 1

Page 21

Maintain Australia’s position on the International Maritime Organization (IMO) Council (election every two years)

Election to IMO Category C

Australia’s IMO Election strategy is being delivered as per plan.

SHIP SAFETY

CP 2014-18

Perf. Meas. 3

Page 21

Strong engagement with International Labour Organization (ILO)

100% Business as usual

140

SC5: ENGAGING WITH THE COMMUNITY Reference Performance indicator Target Result

CORPORATE RELATIONS

CP 2014-18

Perf. Meas. 1

Page 23

Actively seek stakeholder feedback

Incorporate suggested improvements into our communication and engagement approaches

• Formal written evaluation survey for Working Boats April 2015 edition

• Formal written evaluation surveys for three Safety Management System workshops

• Marine order and marine notice consultation

• Feedback also received and actioned through our general enquiry line

CP 2014-18

Perf. Meas. 2

Page 23

An external stakeholder survey will be conducted every two years

Through this survey we will aim to determine that the maritime sector:

• is aware of AMSA’s role as the maritime safety regulator and has a clear understanding of its regulatory responsibilities

• feels effectively engaged with AMSA, including in the setting of regulatory standards

• finds AMSA to be a fair, transparent and consistent regulator

• Survey completed

• Overall, stakeholders assessed their level and quality of engagement with AMSA; our performance; our clarity of purpose and integrity; and performance and accessibility of staff very positively.

141

SC6: ENSURING A VIBRANT AND PROGRESSIVE ORGANISATION


CORPORATE SERVICES

CP 2014-18

Perf. Meas. 1

Page 27

AMSA achieves unqualified financial statements and maintains financial viability

100% 100%

CP 2014-18

Perf. Meas. 2

Page 27

Compliance with statutory, financial and business requirements is maintained

100% 100%

CP 2014-18

Perf. Meas. 3

Page 27

Certification to ISO9001, ISO14001 and AS/NZS4801 is maintained

100% Surveillance Audit 20440/26 conducted by Davis Langdon Certification Services from 11-13 May 2015. No non-conformances were identified

CP 2014-18

Perf. Meas. 4

Page 27

Accreditation as a Registered Training Organisation (RTO) is maintained

RTO is registered until 2017

Preparations are complete for compliance with new regulations for RTOs which took effect on 1 April 2015. Renewal of accreditation is not required until 2017.

CP 2014-18

Perf. Meas. 5

Page 27

AMSA’s staff turnover rate shows a declining trend to previous years and is less than that of comparable public sector agencies

AMSA’s employee turnover does not depart from the desired range: 5-12% per annum

The annual turnover rate for 2014-15 was 10%

CP 2014-18

Perf. Meas. 6

Page 27

AMSA’s biennial staff engagement survey indicates strong staff satisfaction and engagement relative to public sector averages and continues to improve on previous years

Conduct Employee Opinion Survey

The results of our third employee survey conducted in 2014-15 indicated sustained levels of engagement at the highest level. Since 2008 we have consistently achieved a very high level of employee engagement (when compared with both government and industry sectors)


142

Stuart Richey AM (Chair)Tasmanian commercial fisherman Stuart John Richey AM was appointed Chair of the AMSA Board on 21 November 2014 for a period of 5 years. Mr Richey has been serving as a Board member since July 2013, and as Deputy Chair since April 2014, bringing to the table his strong leadership style and his years of experience in marine policy and planning.

Between 1992 and 2001, Mr Richey served as foundation member and Deputy Chair on the Board of the Australian Fisheries Management Authority and from 2003-12 was Deputy Chair of the Fisheries Research and Development Corporation.

As Managing Director of Richey Fishing Company and Richey Services, Mr Richey’s business includes salmon, scallop, squid and marine charter operations.

He was made a Member of the Order of Australia in 2005, for service to the commercial fishing industry, particularly the promotion of sustainable utilisation of Australian Government-managed fisheries resources and the development of new national marine polices and safety legislation. Mr Richey is a Fellow of the Australian Institute of Company Directors.

Jennifer Clark (Deputy Chair)Jennifer Clark was appointed Deputy Chair of the AMSA Board on 10 February 2015 for a period of 5 years. Ms Clark was appointed to the Board on 8 May 2012 and was appointed Chair of the Board Audit Committee in February 2014.

Ms Clark is currently a Non-Executive Director on the Board of the Australian Payments Clearing Association Limited (APCA) and is a member of APCA’s Audit Compliance and Risk Management Committee. She is Chair of the Australian Bureau of Statistics Audit Committee; the Australian Sports Anti-Doping Authority Audit Committee; and the Australian Commission on Safety and Quality in Health Care Audit and Risk Committee. Ms Clark is also an independent member of the Australian Taxation Office Audit and Risk Committee; the Attorney-General’s Department Audit and Risk Management Committee; the Austrade Audit and Risk Committee; and the Department of Defence Audit and Risk Committee.

Ms Clark has an extensive background in business, finance and governance through a career as a Non-Executive Director since 1991 and as an Investment Banker for over 20 years. Her banking experience included financing and providing advice to companies across a broad range of industries and for major infrastructure projects, and advisory roles to the Australian Government. Ms Clark is a Fellow of the Australian Institute of Company Directors and has been a Board member of a number of companies and Australian Government agencies over the past 20 years.

APPENDIX 3 AMSA BOARD MEMBERS

143

Mick Kinley (Chief Executive Officer)Michael (Mick) Kinley became the Chief Executive Officer of AMSA on 27 August 2014. Mick was previously the Deputy Chief Executive Officer and held this position since October 2008.

Mick joined AMSA in 1994 as a marine surveyor in Cairns. Since that time he has gained experience across all of AMSA’s business, particularly maritime safety and casualty response.

Prior to joining AMSA, Mick had an extensive career with BHP having commenced as an engineer cadet with BHP Transport. He sailed with the BHP fleet before undertaking various shore-based roles including fleet safety instructor and project engineer.

Mick holds an Australian Chief Engineer Class 1 Certificate, a Bachelor of Applied Science, a Bachelor of Engineering, and a Graduate Diploma in Legal Studies.

Dr Russell ReicheltDr Russell Reichelt is currently Chairman and Chief Executive of the Great Barrier Reef Marine Park Authority and a Non-Executive Director of the Great Barrier Reef Foundation Limited. Dr Reichelt was appointed to the AMSA Board from 7 August 2007 and reappointed for a period of 3 years from 30 July 2013.

Previously, Dr Reichelt served as the Chief Executive Officer of the Australian Institute of Marine Science and as Chairman of Australia’s Fisheries Research and Development Corporation and Seafood Services Australia Ltd. Other past roles include Chairman of the National Oceans Advisory Group, and Chief Executive of CRC Reef Research Centre Ltd and Reef and Rainforest Research Centre Ltd.

He has a PhD in Marine Science (tropical ecology) from the University of Queensland, and is a Fellow of the Australian Academy of Technological Sciences and Engineering, the Institute of Marine Engineering Science and Technology (UK), and the Australian Institute of Company Directors.

APPENDIX 3 - AMSA BOARD MEMBERS

144

Professor Sarah Derrington Professor Sarah Derrington was appointed to the AMSA Board on 8 May 2012 and was reappointed for a 2-year period on 17 June 2015. Professor Derrington is currently Dean of Law at the University of Queensland (UQ).

Professor Derrington commenced her legal career in litigation sections of Freehills in Canberra and then Minter Ellison in Brisbane before pursuing an academic career at UQ. Professor Derrington was Professor of Admiralty Law /Director Marine and Shipping Law Unit at the University of Queensland and has been a visiting Professor in maritime law at the University of Nottingham, the University of Nantes and the University of Aix-Marseilles. More recently, she was in full-time practice as a Barrister-at-Law specialising in general commercial litigation; maritime, aviation and transport law; insurance law; bankruptcy; and insolvency.

Professor Derrington is currently the Vice Chairman of the Australian Maritime and Transport Arbitration Commission; Chairman of Risk and Finance sub-committee Somerville House School Council; Director of the Australian Maritime College Board; Director of Upline Pty Ltd; and Member of the Admiralty Rules Committee for the Commonwealth of Australia.

Professor Derrington has a Bachelor of Arts in French and German (UQ); Bachelor of Laws with Honours (UQ); Master of Laws (UQ) and Doctor of Philosophy (UQ) in the field of marine insurance law. Professor Derrington is a member of the Chartered Institute of Arbitrators; Member of the Australian Institute of Company Directors; Fellow of the Nautical Institute; and Supporting Member of the London Maritime Arbitrators’ Association.

Michael Taylor AO FTSE Michael (Mike) Taylor was appointed to the AMSA Board on 10 September 2014 for a 3-year term. Mr Taylor is the part-time Chair of the Geoffrey Gardiner Dairy Foundation, and State Sports Centre Trust, Director of the Public Transport Development Authority, Principal of Foursight Associates and, until recently, Director of the Melbourne University - Melbourne Business School.

Mr Taylor was formerly the Secretary to Australia’s Department of Infrastructure, Transport and Regional Services (2004-09), and Secretary, Department of Agriculture, Fisheries & Forestry (2000-04). Prior to that, he was responsible for the leadership and management of three departments for the Government of Victoria (1992-2000) (Agriculture; Energy and Minerals; and Natural Resources and Environment), and was Chairman of the Murray Darling Basin Authority (2009-11).

Mr Taylor holds a Bachelor of Agricultural Science from the University of Melbourne and a Diploma of Agricultural Economics from the University of New England. Mr Taylor is a Fellow of the Academy of Technological Sciences and Engineering and the Institute of Public Administration of Australia.

145

Gary WebbGary Webb was appointed to the AMSA Board on 17 June 2015 for a 3-year term. Mr Webb is currently Chairperson, Lifeline Hunter & Central Coast; Director, Hunter TAFE Foundation Limited; and Director, Hunter Research Foundation. He is Principal of Gary Webb Ports, Maritime & Logistics and provided strategic advice to Morgan Stanley, representing the NSW Treasury, to maximise the value of the long-term lease of the Port of Newcastle for the NSW Government.

Mr Webb was formerly the Chief Executive Officer and Director of Newcastle Port Corporation (2004-13) and worked in maritime operations for Newcastle Port Corporation since 1989. Mr Webb previously served as Chairman, Ports Australia; Chairman, Newcastle Seafarers Centre Limited; and Director, Hunter Valley Coal Chain Coordinator Limited.

Mr Webb holds a Graduate Diploma in Business Administration (Executive); Graduate Diploma in Education (TAFE); and Bachelor of Surveying (Honours). Mr Webb is a Fellow of the Australian Institute of Company Directors. He was awarded the City of Newcastle Australia Day Citizen of the Year in 2008 and the Inaugural Outstanding Service Award, NSW Board of Surveying and Spatial Information 2007.

Peter Toohey Peter Toohey was appointed to the AMSA Board on 17 June 2015 for a 3-year term. Mr Toohey is currently Chief Engineer, Brisbane Tugs with Svitzer Australia.

Mr Toohey is the Secretary for the Queensland branch of the Australian Institute of Marine and Power Engineers. From 1991 to 2015, he participated in 18 salvages with United Salvage and Svitzer Salvage as salvage engineer. He began his career with Howard Smith Industries as an apprentice fitter and turner and marine engineer student in 1974, and became a seagoing marine engineer in 1978 working in all positions from 7th to Chief Engineer on tankers and bulk carriers with Howard Smith Shipping.

Mr Toohey is currently a Board member and Federal Executive of the Australian Institute of Marine and Power Engineers, and Executive of the Queensland Council of Unions.

Mr Toohey holds the AMSA Certificate of Competency, Engineer Class 1 (Motor); Marine Engineering Higher certificate from Sydney Technical College; and Craftsman’s certificate Fitter and Turner.

Andrew WilsonAndrew Wilson is the Deputy Secretary of the Department of Infrastructure and Regional Development and is the departmental representative on the AMSA Board. He was appointed to the AMSA Board from 1 August 2005.

Mr Wilson has held a variety of positions within the Australian Public Service over his 30-year career, spending the past 28 years within the Department of Infrastructure and Regional Development. His career highlights involve the establishment of the Office of the Coordinator General, oversight of the Aviation White Paper, oversight of the stronger shipping for a stronger economy reform of the Australian Coastal Shipping Industry, participation in the Phase II Airport sales process, and the reform of the provision of services to the Indian Ocean Territories.

Mr Wilson has a Bachelor of Commerce degree from Deakin University.


146

Leo M. Zussino (Chair) Leo M. Zussino’s appointment ceased on 21 November 2014. Mr Zussino was appointed Chairman of the AMSA Board on 11 November 2008.

Mr Zussino previously served as Chief Executive Officer of the Gladstone Ports Corporation Limited (2000-13); Executive Committee member of Queensland Ports Association; President of the Association of Australian Ports and Maritime Authority Inc (now Ports Australia); Chairman of the Queensland Port Authorities Association; Chairman of the Gladstone Economic and Industry Development Board; and member of Central Queensland University Council.

Mr Zussino has a Masters Degree of Business Administration from the University of Oregon, USA.

Captain Fred RossCaptain Fred Ross’ appointment ceased on 21 November 2014. Captain Ross resigned as Director Offshore Division of the Australian Maritime Officers Union, a position he held from 1995 to 2011. Previously Captain Ross held the position of President and Executive Member of the organisation from 1970.

Captain Ross has been a member of the Marine Industry Restructuring Agreement, Shipping Industry Reform Authority, and AMSA Advisory Committee from inception (until becoming a Board member). He held positions within the International Transport Workers Federation and the International Labour Organization. Captain Ross’ sea-going career was on Australian vessels serving as Seaman to Master, holding command with Caltex from 1972-92.

Captain Ross is currently Assistant to the Arbitrator North West Shelf Continuity of Operations.

PAST BOARD MEMBERS

147

BOARD MEETINGSAMSA Board attendance

MemberAttendance at meetings and teleconferences

Terms of office

Stuart Richey AM (Chair)

6/6 Appointed member from 1 July 2013

Appointed Deputy Chair from 15 April 2014

Appointed Chair from 21 Nov 2014 to 20 Nov 2019

Jennifer Clark (Deputy Chair)

6/6 Appointed member from 8 May 2012

Appointed Deputy Chair from 10 Feb 2015 to 9 Feb 2020

Mick Kinley (Chief Executive Officer)

6/6 Member ex-officio from 24 Aug 2014 to 25 August 2019

Dr. Russel Reichelt 5/6 Appointed member from 7 August 2007 to 9 August 2016

Mike Taylor AO 4/5 Appointed member from 10 September 2014 to 9 September 2017

Andrew Wilson 6/6 Member ex-officio from 1 August 2005

Prof. Sarah Derrington 5/5 Appointed member from 8 May 2012 to 7 May 2015

Re-appointed from 17 June 2015 to 16 June 2017

Peter Toohey 0/0 Appointed member from 17 June 2015 to 16 June 2018

Gary Webb 0/0 Appointed member from 17 June 2015 to 16 June 2018

Leo M. Zussino 2/2 Appointed Chairman 10 November 2008

Re-appointed from 22 November 2011 to 21 November 2014

Captain Fred Ross 2/2 Appointed member from 22 November 2011 to 21 November 2014


148

Board Audit Committee meetingsBoard Audit Committee attendance

Member Attendance at meetings

Jennifer Clark (Chair) 4/4

Dr Russell Reichelt 4/4

David Lawler 4/4

Remuneration Committee meetingsRemuneration Committee attendance

Member Attendance at meetings

Leo M. Zussino (Chair) 1/1

Stuart Richey AM 1/1

Dr Russell Reichelt 1/2

Prof. Sarah Derrington 2/2

Board meetings included:• 208th – 14 August 2014• 209th – 18 September 2014• 210th – 9 December 2014• 211th – 26 February 2015• 212th – 16 April 2015• 213th – 17 June 2015

Board Audit Committee meetings included:• 121st – 1 September 2014• 122nd – 17 September 2014• 123rd – 21 November 2014• 124th – 19 March 2015• 125th – 4 June 2015

Remuneration Committee meetings included:• 20th – 17 September 2014• Out of session – 12 December 2014

149

Strategic risk profile as at February 2015

1. Failure to deliver a National System for Domestic Commercial Vessel Safety that is sustainable and delivers the aims and objectives required by governmentInherent risk: Extreme

Residual risk: High

Controls:• Consultation with industry and Maritime Agencies Forum• Streamlining initiatives• Proposals for an efficient regulatory scheme and service delivery

APPENDIX 4 STRATEGIC RISK PROFILE

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER

RISK RATING LEGENDINHERENTRESIDUAL

1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

APPENDIX 4 - STRATEGIC RISK PROFILE

150

2. A major incident with loss of life and/or significant environmental harmInherent risk: Extreme

Residual risk: Moderate

Controls:• Development and implementation of a modern regulatory framework• Ship inspection program—port State control and Maritime Labour Convention, 2006 compliance• National network of aids to navigation and other navigational services (e.g. pilotage)• Network of shipping fairways (new and enhanced routeing measures where appropriate to

promote safer navigation)• Partnership with key stakeholders• Navigation Safety Program• Legislation and compensation regimes (environmental protection)• Ship traffic risk management (vessel tracking, mandatory pilotage)• Real time maritime and aircraft positional information system for identifying assets for emergency

response purposes• Mature incident management systems (e.g. Nexus)• Maritime safety and distress communication services• Nationally-accredited training for search and rescue personnel• National Plan for Maritime Environmental Emergencies, and exercises• National Search and Rescue Plan• Aerial surveillance including Automatic Identification System• System and earth observation systems• Pollution response financial capability• Maritime emergency response arrangements• Dedicated aerial response capability• Emergency towage capability• 24/7 operation of AMSA Search and Rescue

3. Managing shared responsibilities with state and territory partners, and service providersRelating to:

• (non-AMSA) aids to navigation and maritime communications• National Plan for Maritime Environmental Emergencies• Coastal Vessel Traffic Services (VTS) in the Great Barrier Reef and Torres Strait• National System for Domestic Commercial Vessel Safety• Search and rescue

Inherent risk: Extreme


Controls:• Strengthening existing relationships• Strong contract and project management• Strong stakeholder relationships• Strong performance of AMSA as a stand-alone regulator

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

151

4. Failure of investments, procedures and practices to reflect whole-of-AMSA requirementsInherent risk: High

Residual risk: Low

Controls:• Early incorporation of government changes to corporate compliance requirements, such as the

Public Governance Performance and Accountability Act 2013• Integrated planning, financial, budgeting and contract management processes and monitoring• Search and Rescue Business Transformation Program• Compliance and assurance framework• Active membership within the interdepartmental reference group

5. The decline of the Australian-trained skilled maritime workforce impacts AMSA’s ability to attract, develop and maintain a skilled and experienced workforceInherent risk: High


Controls:• Stringent recruitment processes• Skilled migration program available• Registered Training Organisation (RTO) certification of AMSA courses including adaptation of

courses to apply new technology• Certified Management System• Continued industry funding through levy payments• Workforce Strategy• New approach to marine surveyor recruitment - equal emphasis on interpersonal/engagement

competencies, and technical skills

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

APPENDIX 4 - STRATEGIC RISK PROFILE

152

6. Major incident or adverse media campaign leads to loss of confidence in AMSA as a respected regulator and provider of servicesInherent risk: Moderate


Controls:• Communication and engagement strategy• Structured approach to stakeholder engagement and consultative processes and maintenance of

industry relationships• Participation in national and international fora • Regional capacity, technical and cooperation programs in Indian Ocean and Asia-Pacific regions• Torres Strait Marine Safety Program• International Maritime Organization Marine Environment Protection Committee and the

International Oil Pollution Compensation Funds• International Civil Aviation Organization, Cospas-Sarsat• National Search and Rescue Council• Targeted communication and education campaigns

7. Failure to adapt and deliver to the deregulation environmentInherent risk: Moderate

Residual risk: Low

Controls:• Deregulation Steering Committee• Development of guidance documentation

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

!

!

!EXTREME

HIGH

MODERATE

LOW

MINOR

RISK NUMBER


1 2 3 4 5 6 7

153

Marine Orders made under the Navigation Act 2012 and the Protection of the Sea legislation

Marine Order

Topic Commencement Description

15 Construction - fire protection, fire detection and fire extinction

01/07/2014 This order applies Chapter II-2 of the International Convention for the Safety of Life at Sea (SOLAS) to Australian and foreign vessels that come within its terms. Australian vessels must also comply with additional requirements set out in the Schedules. Separate requirements are set out for Australian vessels that are not covered by SOLAS. Foreign vessels not covered by SOLAS are required to comply with any certificates issued by or for the administration of the country in which they are registered. This order eliminates schedule 6 of Marine Order 4 (Transitional modifications) 2013.

54 Coastal pilotage

01/07/2014 This order implements a review of the previous order and eliminates schedule 30 of Marine Order 4 (Transitional modifications) 2013.

91 Marine pollution prevention - oil

01/07/2014 This order gives effect to parts of Annex I of the International Convention for the Prevention of Pollution From Ships (MARPOL) dealing with the prevention of oil pollution from ships and prescribes matters for Chapter 4 of the Navigation Act and for Part II of the Pollution Prevention Act. It eliminates schedule 38 of Marine Order 4 (Transitional modifications) 2013.

93 Marine pollution prevention - noxious liquid substances

01/07/2014 This order gives effect to Annex II of MARPOL dealing with the prevention of pollution from noxious liquid substances from ships and prescribes matters for Chapter 4 of the Navigation Act and prescribes matters for Part III of the Pollution Prevention Act. It eliminates schedule 39 of Marine Order 4 (Transitional modifications) 2013.

42 Cargo, stowage and securing

01/08/2014 This order updates the reference to the Code of Safe Practice for Ships Carrying Timber Deck Cargoes, 2011, which replaces the 1991 Code mentioned in the previous issue. The scope of the order is extended to include cargo matters covered by Chapter VI of SOLAS. References to particular positions in AMSA are removed, and the order has been rewritten in a clearer style. It eliminates schedule 22 of Marine Order 4 (Transitional modifications) 2013.

35 Additional safety measures for bulk carriers

01/08/2014 This order updates definitions of bulk carriers. It eliminates schedule 20 of Marine Order 4 (Transitional modifications) 2013.

19 Tonnage measurement

01/09/2014 This order replaces Marine Order 19 (Tonnage measurement) 2003 following a review of the order as part of our ongoing review of instruments. The structure of the order has been changed and current legislative drafting style applied. It eliminates schedule 10 of Marine Order 4 (Transitional Modifications) 2013.

APPENDIX 5MARINE ORDERS ISSUED IN 2014-15

APPENDIX 5 - MARINE ORDERS ISSUED IN 2014-15

154

Marine Orders made under the Navigation Act 2012 and the Protection of the Sea legislation

Marine Order

Topic Commencement Description

16 Load lines 01/11/2014 This order replaces Marine Order 16 (Load Lines) 2004 following a review of the order as part of our ongoing review of instruments. The structure of the order has been changed and current legislative drafting style applied. It eliminates Schedule 7 of Marine Order 4 (Transitional Modifications) 2013.

2 Australian International Shipping Register Amendment 2014 (No. 1)

01/11/2014 This order has been amended so that it modifies Marine Order 70 (Seafarer certification) 2014 (MO70) instead of Marine Order 3 (MO3). MO70 is one of the 4 Marine Orders made this year that replaced MO3. Modifications to seafarer certification arrangements are still required for seafarers who work on International Register vessels.

25 Equipment - lifesaving

01/12/2014 A new requirement for vessels to have ship-specific plans and procedures for recovery of persons from the water is applied to all Regulated Australian Vessels, whether or not they are covered by SOLAS. The structure of the order has been changed and current legislative drafting style applied. It eliminates Schedule 12 of Marine Order 4 (Transitional Modifications) 2013.

31 Vessel surveys and certification

16/02/2015 This order provides generally for the survey, maintenance and certification of vessels, including requirements for Chapter I of SOLAS; notification of intended movement of vessels involved in planned tows; and reporting of marine incidents and defects. It eliminates schedule 16 of Marine Order 4 (Transitional modifications) 2013.

49 High-speed craft

16/02/2015 This order deals with the certification of high speed-craft and eliminates schedule 26 of Marine Order 4 (Transitional modifications) 2013.

11 Living and working conditions on vessels

01/05/2015 This order reviews requirements following one year of implementation of the Maritime Labour Convention, 2006. Changes were made to some sections to improve clarity.

Marine Orders made under the Marine Safety (Domestic Commercial Vessel) National Law Act 2012

Marine Order

Name Commencement Description

508 National law amendment

28/11/2014 This order amends Marine Orders 501, 503, 504, 505 and 507 following amendments made to the Marine Safety (Domestic Commercial Vessel) National Law Act 2012.

155

Our powers and functions are described in the Australian Maritime Safety Authority Act 1990, the Act under which we were established.

Vessel operationsMarine Safety (Domestic Commercial Vessel) National Law Act 2012 and Marine Orders made under it

Navigation Act 2012 and Marine Orders made under it

Occupational Health and Safety (Maritime Industry) Act 1993, in relation to the discharge of inspectorate functions

Maritime Transport and Offshore Facilities Security Act 2003, in relation to the appointment of AMSA Navigation Act 2012 inspectors as duly authorised officers

RegistrationShipping Registration Act 1981

Marine pollutionProtection of the Sea (Prevention of Pollution from Ships) Act 1983 and Marine Orders made under it

Protection of the Sea (Powers of Intervention) Act 1981

Protection of the Sea (Civil Liability) Act 1981

Protection of the Sea (Oil Pollution Compensation Fund) Act 1993

Protection of the Sea (Harmful Anti-Fouling Systems) Act 2006 and Marine Orders made under it

Protection of the Sea (Civil Liability of Bunker Oil Pollution Damage) Act 2008

Levies – in role as ‘Collector’Marine Navigation Levy Act 1989

Marine Navigation Levy Collection Act 1989

Marine Navigation (Regulatory Functions) Levy Act 1991

Marine Navigation (Regulatory Functions) Levy Collection Act 1991

Protection of the Sea (Shipping Levy) Act 1981

Protection of the Sea (Shipping Levy Collection) Act 1981

APPENDIX 6OUR FUNCTIONS AND POWERS

APPENDIX 6 - OUR FUNCTIONS AND POWERS

156

APPENDIX 7CURRENT PUBLICATIONSAll publications are available from the AMSA website (www.amsa.gov.au). Limited hard copies of certain publications can also be obtained by contacting:

AMSA Communication Phone: (02) 6279 5000 Email: [email protected]

Title Description

About AMSA (Corporate)

Annual Reports (from 1999) A report to the Australian Parliament on AMSA’s activities for the year

AMSA's Vision 2013-33 This report details how AMSA will provide effective maritime safety regulation through a period of sustained growth

Corporate Plan A plan outlining AMSA’s planned activities and performance targets for the next three years

AMSA's Technical Cooperation Strategy 2010-2015

A report describing AMSA’s Technical Cooperation Strategy for the Asia-Pacific region for 2010-2015

AMSA Enterprise Agreement 2012-2015

An agreement between AMSA and its employees detailing terms and conditions of employment

AMSA Aboard A maritime industry e-newsletter based on AMSA operations

AMSA The Second Decade The Second Decade provides an historical overview and highlights AMSA’s achievements throughout its most recent decade (2001-11).

Navigation Act 2012 Protocol The Purpose of this Protocol is to provide guidance on the application of AMSA’s Compliance and Enforcement Policy as it relates to the powers contained within the Navigation Act 2012 (Navigation Act)

Compliance and Enforcement Policy The maritime safety legislation places obligations on maritime operators and other parties (including those listed below) to ensure safety and protection of the marine environment, in the circumstances and to the standards specified in the legislation

Marine Safety (Domestic Commercial Vessel) National Law Act 2012 Protocol

The Purpose of this Protocol is to provide guidance on the application of AMSA’s Compliance and Enforcement Policy as it relates to the powers contained within the Marine Safety (Domestic Commercial Vessel) National Law Act 2012 (National Law).

157

Title Description

Occupational Health and Safety (Maritime Industry) Act 1993 Protocol

The Purpose of this Protocol is to provide guidance on the application of AMSA’s Compliance and Enforcement Policy as it relates to powers contained within Occupational Health and Safety (Maritime Industry) Act 1993 (the OHS(MI) Act).

Protection of the Sea (POTS) Acts Protocol

The Purpose of this Protocol is to provide guidance on the application of the AMSA

Compliance and Enforcement policy as it relates to the powers contained within the suite of the Protection of the Sea (POTS) Acts

Shipping Registration Act Protocol The Purpose of this Protocol is to provide guidance on the application of AMSA’s Compliance and Enforcement policy as it relates to the powers contained within the Shipping Registration Act 1981

Domestic commercial vessels

The Regulatory Plan The purpose of this document is to provide the detail of the regulatory requirements that will apply to domestic commercial vessels and their crew when the Marine Safety (Domestic Commercial Vessel) National Law Act 2012 (the National Law) comes into effect in 2013

Maritime Safety Awareness Bulletin The Maritime Safety Awareness bulletin is published twice a year and looks at trends in maritime incidents with an aim to raise safety awareness in the industry

National System for Domestic Commercial Vessel Safety - Streamlining Concepts

Blueprint for the future regulatory arrangements

Working Boats newsletter The Working Boats newsletter is a quarterly publication and is dedicated to informing industry and seafarers about the latest news and developments in the National System for domestic commercial vessel safety

The streamlining concepts at a glance

A guide to streamlining rules and regulations for accessibility purposes

Industry guidance notices Guidance notices provide up-to-date information to assist compliance with the National System for Domestic Commercial Vessel Safety

International - ship safety

Compliance and Enforcement Policy AMSA’s Compliance and Enforcement Policy which complements the modernisation of the suite of legislation it administers

Fact Sheet - Port State Control in Australia

Outlines Australia’s port State control responsibilities

APPENDIX 7 - CURRENT PUBLICATIONS

158

Title Description

Fact Sheet - Marine Orders Information about Marine Orders which are a form of regulation, made under Australian Commonwealth legislation, that apply to Australian and foreign vessels.

Fact Sheet - Helicopter Operations Frequently asked questions

These ‘frequently asked questions’ and answers provide general information about Marine Orders Part 57 Helicopter Operations

Medical carriage requirements on regulated Australian vessels

A guide for medical carriage requirements on regulated Australian vessels

MASTREP Booklet Ship reporting instructions for the Australian area

Navigation Act 2012 Protocol The Purpose of this Protocol is to provide guidance on the application of AMSA’s Compliance and Enforcement Policy as it relates to the powers contained within the Navigation Act 2012

NWEA Guidelines for the Safe Management of Offshore Supply and Rig Movement Operations - Australian Supplement

Safe Management of Offshore Supply and Rig Move Operations

Occupational Health and Safety (Maritime Industry) Act 1993 Protocol

The Purpose of this Protocol is to provide guidance on the application of AMSA’s Complianceand Enforcement Policy as it relates to powers contained within Occupational Health and Safety (Maritime Industry) Act 1993 (the OHS(MI) Act).

Port State control annual reports Annual port State control activity reports

REEFVTS User Guide This guide will help masters of ships give REEFVTS the correct ship reports and benefit from the services provided by REEFVTS.

Seacare Compliance and Enforcement Policy

Explains the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) and the Australian Maritime Safety Authority’s (AMSA) approach to workplace health and safety regulation under the Occupational Health and Safety (Maritime Industry) Act 1993 (the OHS(MI) Act)

Shipping Registration Act Protocol The Purpose of this Protocol is to provide guidance on the application of AMSA’s Compliance and Enforcement policy as it relates to the powers contained within the Shipping Registration Act 1981.

Ship Detention List Index Index of detained vessels by month

Survival at Sea A comprehensive guide on all distress situations and emergencies at sea

159

Title Description

International - shipping registration

Australian Register of Ships Information on how to register a ship

Ship Registration – Frequently Asked Questions

The most frequently asked questions in regards to the registration of a ship

Yachts, Cruisers and Fishing Boats: who owns what?

Information regarding the benefits of ship registration

Fact Sheet - Australian International Shipping Register

Details about registering a ship on the Australian International Shipping Register

Fact Sheet - Australian International Shipping Register Marine Qualifications

Provides information for foreign seafarers seeking employment on ships that are registered in the Australian International Shipping Register

Fact Sheet - Transferring Ownership Requirements for transferring ownership of an Australian ship

Guide to the Registration of a Ship on the International Register

The purpose of this guide is to provide an outline of the process of registration on the Australian International Shipping Register.

International - seafarers

Australian Global Maritime Distress and Safety System (GMDSS) Handbook

A guide for the GMDSS on Australian vessels in Australian waters

Automatic Identification System (AIS)

A brochure providing basic information on AIS.

Dangerous, Hazardous and Harmful Cargoes Handbook

A guide for the safe carriage and handling of dangerous, hazardous and harmful cargo

Fact Sheets - Seafarer qualifications These fact sheets provide information regarding to seafarer qualifications

Fact Sheets - Training - Information for Registered Training Organisations

These fact sheets outline policies, requirements and information for AMSA Registered Training Organisations

Incident Notification Guide This guide provides practical assistance in helping operators understand the Occupational Health and Safety (Maritime Industry) Act 1993 (OHS(MI) Act) notification process.

Incident Reporting Service Charter A Charter on receiving, monitoring and acting upon maritime incident reports.

Maritime Skills Availability Study A study conducted by Thompson Clarke Shipping Pty Ltd into the availability of maritime skills within the Australian maritime industry.


160

Title Description

Guidelines for the medical examination of seafarers and coastal pilots

These guidelines have been compiled for the use of Medical Inspectors who are assessing an individual’s fitness to work at sea.

Watchkeeping Standards Information regarding Watchkeeping Standards for Seafarers

Navigation

Coastal Pilotage Fatigue Risk Management Plan (The Default Plan)

Marine Order 54 (Coastal pilotage) 2014 (MO54) requires pilotage providers to ensure that each coastal pilot complies with this default Fatigue Risk Management Plan.

Fact Sheet - Automatic Identification System (AIS) Class A

Information about Automatic Identification System (AIS) Class A

Fact Sheet - Automatic Identification System (AIS) Class B

Information about Automatic Identification System (AIS) Class B

Fact Sheet - Differential Global Positioning System (DGPS)

Information about Differential Global Positioning System (DGPS)

Fact Sheet - Long Range Identification and Tracking (LRIT)

Information about Long Range Identification and Tracking (LRIT)

Fact Sheet - Photochromic Lenses, Polarised Lenses and Dark Adaptation

This fact sheet advises operators, masters/skippers and seafarers on precautions to be taken by those with lookout duties, particularly at night.

Fact Sheet - GNSS Navigation and horizontal datums

This information sheet will assist mariners when transferring positions from Global Navigation Satellite System (GNSS), to a paper chart or to an electronic equivalent such as Electronic Chart Display and Information System (ECDIS).

Navigation Safety in Australian Waters 2010 -2025

This planning document is a collection of principles and strategies for the provision of navigational services by AMSA.

North-East Shipping Management Plan

The plan identifies existing, new and strengthened management measures to ensure shipping within the Great Barrier Reef, Torres Strait and Coral Sea continues to be conducted to the highest standards possible.

Passage Plan Background and Guidance

This guide seeks to improve pre-pilotage communications between coastal pilotage providers, the ships they service and the pilots embarked within these ships.

Queensland Coastal Passage Plan The Queensland Coastal Passage Plan has been developed as a guide for the conduct of pilotage in Queensland coastal pilotage areas.

Tide Tables - Torres Strait and Great Barrier Reef

A publication prepared with data from the Australian Bureau of Meteorology, providing detailed tidal information in the Torres Strait and Great Barrier Reef

161

Title Description

Search and rescue

Australian Search and Rescue An overview of Australia’s search and rescue system

Aviation Search and Rescue An overview of Australia’s search and rescue system specific to aviation incidents

Distress Beacon Frequently Asked Questions

A brochure answering many commonly asked questions relating to distress beacons

Fact Sheet - Dornier 328 Search and Rescue Aircraft

Information about AMSA’s search and rescue aircraft

Fact Sheet - Emergency Response Centre

Information about AMSA’s emergency response centre

Fact Sheet - VHF DSC Radio Communications - Frequently asked questions

Information about VHF DSC radio communications

National Search & Rescue Council publications and manuals

Australia's national search and rescue service adopts techniques and procedures that have been developed in a manner consistent with Australia’s international obligations

Survival at Sea A comprehensive guide on all distress situations and emergencies at sea

Environment

National Plan Annual Reports The annual reports for Australia’s National Plan

National Plan for Maritime Environmental Emergencies

The National Plan for Maritime Environmental Emergencies (National Plan) sets out national arrangements, policies and principles for the management of maritime environmental emergencies.

National Plan - On Scene - Newsletters

Biannual magazine for Australia’s National Plan

Fixed Wing Aerial Dispersant Capability

To assist the pilot in applying the dispersant a separate aircraft with a trained aerial observer onboard is tasked to fly above the aircraft and direct the pilot towards the heaviest concentrations of oil.

Stow It Don't Throw It Information on garbage disposal regulations applicable to shipping

Protection of the Sea - Conventions and Legislations in Australia

Information on garbage disposal regulations applicable to shipping

Fact Sheet - Emergency Towage Vessel ETV Coral Knight

Information about AMSA’s AMSA’s dedicated Emergency Towage Vessel ETV Coral Knight


162

Title Description

Report on the 2011/12 Review of the National Plan

This Report outlines the outcomes of the Review as agreed by the National Plan Management Committee (NPMC ) in July 2012.

Oil Spills in the Australian Marine Environment: Environmental Consequences and Response Technologies

This document outlines the risk and impact of oil spills, and the new technologies being employed for improving spill surveillance, modelling of slick trajectories and the development of geographic information systems to support spill response decision making.

Identification of Oil on Water - Aerial Observation and Identification Guide

This booklet is intended to assist people involved in aerial observation and surveillance to more accurately report the presence of oil in the marine environment.

Exercise Northerly, Darwin, September 2014

The purpose of Exercise Northerly was to identify areas for improvement in the response to maritime environmental emergencies.

Exercise Sea Dragon Phase 2, Western Port Victoria, June 2012

The aim of this exercise was to implement and review the effectiveness of a combined Commonwealth, Victorian and industry marine pollution response to a tier 3 pollution incident in Victorian State waters.

Response to the Montara Wellhead Platform Incident

Provides a report into the Montara Well Platform oil spill incident

Response to the Pacific Adventurer Incident

Report by the incident analysis team into the response to the container loss and oil spill from the Pacific Adventurer off the coast of Brisbane

Pasha Bulker Report Response to the Pasha Bulker Grounding

Global Peace oil spill response - report of the incident analysis team

Report by the Incident Analysis Team into the response by the National Plan to Combat Pollution of the Sea.

The Response to the Laura D'Amato Oil Spill

Response to the Laura D'Amato Oil Spill from the incident analysis team

The Response to the Port Stanvac Oil Spill

Response to the Port Stanvac Oil Spill from the incident analysis team

The Response to the Iron Baron Oil Spill

Response to the Iron Baron Oil Spill from the incident analysis team

Exercise Barossa, South Australia, June 1998

The purpose of Exercise “Barossa” was to activate and test National Plan oil spill response arrangements

Exercise George Bass, Victoria, June 1996

National Plan to Combat Pollution of the Sea by Oil.

163


164

1REFERENCES

12

166

Acronym/Abbreviation Meaning

AASB Australian Accounting Standards Board

AIS Automatic Identification System

AMSA Australian Maritime Safety Authority

AMSA Act Australian Maritime Safety Act 1990

ANAO Australian National Audit Office

APHoMSA Asia-Pacific Heads of Maritime Safety Agencies forum

APM Associated Protective Measure

BASARNAS Indonesian search and rescue authority

ETV emergency towage vessel

FSC flag State control

GPS global positioning system

IALA International Association of Marine Aids to Navigation and Lighthouse Authorities

ICAO International Civil Aviation Organization

ILO International Labour Organization

IMO International Maritime Organization

ITSAP Indonesian Transport Safety Assistance Package

MARPOL International Convention for the Prevention of Pollution From Ships

MEOSAR Medium-altitude Earth Orbiting Search and Rescue system

MLC, 2006 Maritime Labour Convention, 2006

MOU memorandum of understanding

MSQ Maritime Safety Queensland

National Law Marine Safety (Domestic Commercial Vessel) National Law Act 2012

National Plan National Plan for Maritime Environmental Emergencies

National Regulator National Marine Safety Regulator

National System National System for Domestic Commercial Vessel Safety

NATSAR Council National Search and Rescue Council

NSCV National Standard for Commercial Vessels

ACRONYMS AND ABBREVIATIONS

167

Acronym/Abbreviation Meaning

PGPA Act Public Governance, Performance and Accountability Act 2013

PID Act Public Information Disclosure Act 2013

PSC port State control

PSSA Particularly Sensitive Sea Area

REEFVTS Great Barrier Reef and Torres Strait Vessel Traffic Service

RTO Registered Training Organisation

SAR search and rescue

SOLAS International Convention for the Safety of Life at Sea

SPREP South Pacific Regional Environment Program

STCW International Convention on Standards of Training, Certification and Watchkeeping

TSMSP Torres Strait Marine Safety Program

UKCM under keel clearance management

VTS vessel traffic services

REFERENCES

168

Summary of requirements Legislative reference

CAC Act 1997

Page no./

comment

Timeframe for tabling in Parliament1 Section 9(2) viii


CAC Act 1997, Schedule 1 - Reporting Requirements

Page no./

comment

Report of operations Clause 1(a) 133-142 Appendix 2

Financial Statements Clause 1(b) 81-132 Appendix 1

Auditor General's report Clause 1(c) 81

Financial Statements certification: statement signed by the directors

Clause 2(3) 83


Commonwealth Authorities (Annual Reporting) Orders 2011

Page no./

comment

Approval by directors

(Letter of Transmittal)

Clause 6 vii

Exemptions (a written exemption from any requirement granted by the Finance Minister)

Clause 7 NA

Parliamentary standards of presentation Clause 8 Complies

Plain English and clear design Clause 9 Complies

Enabling legislation and summary of objectives and functions

Clause 10 viii, 7, 19, 133-142, 154, 156

Responsible minister Clause 11 viii

COMPLIANCE INDEX

1 The report is to be presented to the responsible Minister by 15 October and requires the Minister to table the report in both Houses of the Parliament as soon as practicable after receiving it. It is the Government’s preferred policy that the reports be tabled by 31 October.

169



Page no./

comment

Ministerial directions and other statutory requirements

Clause 12 19-23

Information about directors

• names, qualifications, experience

• number and attendance of board meetings

• executive or non-executive

Clause 13 143-149 Appendix 3

Organisational structure

• organisational structure

• location, in Australia or elsewhere, of major activities and facilities

Clause 14 9,10

Statement on governance

• main corporate governance practices

• Board committees and their main responsibilities

• education and performance review process for directors

• ethics and risk management policies

Clause 14 a

19-23

7, 8, 10

7, 8

21-22, 150-153 Appendix 4

Related entity transactions Clause 15 NA

Key activities and changes affecting the authority

• Factors and events influencing performance, including risks and opportunities

• Significant events under section 15 of CAC Act

• Financial results

• Operational results

• Significant changes in AMSA’s state of affairs or principle activities

• Amendments to AMSA’s enabling legislation and to any other legislation directly relevant to its operation

Clause 16 a

35-78, 133-142, 150-153, Appendix 2, 3

NA

81-132, Appendix 1

133-142 Appendix 2

9

7, 19, 22, 154, 155

REFERENCES

170



Page no./

comment

Judicial decisions and reviews by outside bodies

• judicial decisions/decisions of administrative bodies

• report by the Auditor-General

• reports by a Parliamentary Committee, Commonwealth Ombudsman or Office of the Australian Information Commissioner.

Clause 17 20

Obtaining information from subsidiaries Clause 18 NA

Indemnities and insurance premiums

• Indemnities given to current or former officers

• Premiums paid, or agreed to be paid, for insurance against officers liability for legal costs

Clause 19 23

Disclosure requirements for GBEs Clause 20 NA

Index of Annual Report requirements Clause 21 167-171

Requirement Other legislative references Page no.

Other statutory requirements

• Commonwealth Disability Strategy

• Advertising and Market Research

• Occupational Health and Safety Report

• Environmental Performance Report

• Public Interest Disclosure

Disability Discrimination Act 1992

Commonwealth Disability Strategy

Commonwealth Electoral Act 1918 (section 311A)

Work Health and Safety Act 2011

Environment Protection and Biodiversity Conservation Act 1999 (section 516A)

Public Interest Disclosure Act 2013

28

73

30

30

30

21

171

REFERENCES

172

AAcronyms and abbreviations 167Advertising and market research 73Aids to navigation management 65Aids to navigation network 65AMSA Board 7AMSA Board members 143AMSA service charter 20Annual report contact 178Antarctic 51Appendices 80Appendix 1 - Financial statements 81Appendix 2 - Non-financial performance 133Appendix 3 - AMSA Board members 143Appendix 4 - Strategic risk profile 150Appendix 5 - Marine orders issued in 2014-15 154Appendix 6 - Our functions and powers 156Appendix 7 - Current publications 157Asia-pacific region 78Aspirations ii

BBoard and Committees 7Board Audit Committee 8Board Audit Committee meetings 149Board Audit Committee meetings 149Board Audit Committee meetings included: 149Board, Board Audit Committee and Remuneration Committee 7Board meetings 148Business continuity 22

CCash Flow Reconciliation 118Cash Flow Statement 87Celebrating 100 years of Commonwealth management of aids to navigation 67Certified Management system 22Chairman’s review 3Commercial yacht qualifications 38Compliance and enforcement 43Compliance index 169Compliments and complaints 178Computer-based exams 38Contingent Liabilities and Assets 119Cooktown helicopter search and rescue 47Coral Sea Particularly Sensitive Sea Area (PSSA) 59Cost Recovery 23Cost Recovery Summary 126Creating a safety culture 36

INDEX

173

DDedicated airborne search and rescue service 49Directions and prosecutions 36Disability Report 28Distress beacons 49Domestic commercial vessel safety 39Domestic consultation and events 71

EEmergency towage 58Enabling legislation 7Engagement and communication tools 73Environmental performance 32Events After the Reporting Period 98Exercise Westwind 55Expenses 16, 99

FFair Value Measurement 103Financial Assets 108Financial Assets Reconciliation 125Financial Instruments 121Financial management 23Financial outcome 14Financial overview 14Financial Statements 81 Note 1: Summary of Significant Accounting Policies 91 Note 2: Events After the Reporting Period 98 Note 3: Expenses 99 Note 4: Own-Source Income 101 Note 5: Fair Value Measurement 103 Note 6: Financial Assets 108 Note 7: Non-Financial Assets 110 Note 8: Payables 115 Note 9: Interest Bearing Liabilities 116 Note 10: Provisions 117 Note 11: Cash Flow Reconciliation 118 Note 12: Contingent Liabilities and Assets 119 Note 13: Senior Management Personnel Remuneration 120 Note 14: Related Party Disclosures 120 Note 15: Remuneration of Auditors 120 Note 16: Financial Instruments 121 Note 17: Financial Assets Reconciliation 125 Note 18: Reporting of Outcomes 125 Note 19: Cost Recovery Summary 126 Note 20: Budgetary Reports and Explanations of Major Variances 126 Notes to and forming part of the financial statements 90Financial summary 14Fraud control 21

REFERENCES

174

GGovernance arrangements 39Government and parliament 20Great Barrier Reef and Torres Strait Vessel Traffic Service 64

IIndian Ocean region 77Industry liaison 41Industry trends 35Insurance and indemnities 23Interest Bearing Liabilities 116International Association of Marine Aids to Navigation and Lighthouse Authorities 77International Civil Aviation Organization 76International Maritime Organization 74International shipping 35International staff exchange program 78

JJudicial decisions and reviews by outside bodies 20Judicial decisions / decisions of administrative bodies 20

LLearning and development 29

MMajor aids to navigation modifications 65Marine environment 54Marine Orders 44Maritime 2014: ship to shore 72Maritime Labour Convention, 2006 37Medium-altitude Earth Orbit Search and Rescue system 50Ministerial directions, policies and notices 20Mission iiMV Thor Commander 57

NNational Plan 10National plan for maritime environmental emergencies 55National Search and Rescue Council 49National search and rescue service 47National System streamlining 39Navigation safety 62New aids to navigation maintenance contract 65New ship safety videos 37Notable 2014-15 incidents 47

175

OOccupational health and safety 37Organisational changes 9Organisational profile 6Our activities viOur governance 19Our people 26Our registered training organisation 73Our workforce 27Overview 63Own-Source Income 101, 102

PPast Board members 147Payables 115Performance measurement 22Planning and reporting arrangements 21Plan on a page ii, vProcurement 23Protection of the sea levy reduced 58Provisions 117Public information disclosure act 2013 22

QQualifications 38, 41Qualification system improvements 38

RReferences 166Regional engagement 77Related Party Disclosures 120Remuneration Committee 8Remuneration committee meetings 149Remuneration Committee meetings 149Reporting of Outcomes 125Reporting requirements and responsible minister viiiReports (Auditor-General, Parliament or Ombudsman) 20Research projects 38Response capability 56Revenue 15Risk management 21

REFERENCES

176

SSafety management systems 41Schedule of commitments 88Seafarer certificates 38Seafarer welfare 37Search and rescue 10Search and rescue 46Search and rescue capabilities 49Search and rescue resources 10Ship inspections 35Shipping management 63Shipping management plans 63Standards reform 39Statement of Changes in Equity 86Statement of Comprehensive Income 84Statement of Financial Position 85Statement of Regulatory Approach 40Structure 9Summary of Significant Accounting Policies 91Surveyor accreditation 41System upgrades 23

TTable of contents ixTechnology developments 50Torres Strait Marine Safety Program 51Training 55Training and education 41Transmittal letter vii

UUnder keel clearance management 64

VVessel and seafarer safety 34Vessel operations 156Vision ii

WWorkers’ compensation premium 31Workforce profile 28Workforce Strategy 27Work health, safety and environment 30Working internationally 74Working with industry 70Workplace diversity 27Workplace relations 27

YYacht Enya II rescue 48

177

General enquiries and comments about this report can be directed to:

Telephone: (02) 6279 5000

An electronic copy of this report with additional information detailing the activities of the Australian Maritime Safety Authority is available at www.amsa.gov.au.

AMSA’s main offices:

Canberra82 Northbourne Avenue Braddon ACT 2612

GPO Box 2181 Canberra City ACT 2601

Telephone: (02) 6279 5000 Facsimile: (02) 6279 5950

MelbourneLevel 3, 655 Collins Street Docklands VIC 3008

PO Box 16001 Collins Street West Melbourne VIC 8007


BrisbaneLevel 9, 410 Ann Street Brisbane QLD 4000

PO Box 10790 Adelaide Street Brisbane QLD 4000


FremantleLevel 1, Queensgate Centre 10 William Street Fremantle WA 6160

PO Box 1332 Fremantle WA 6959


SydneyLevel 5, 260 Elizabeth Street Sydney NSW 2000

PO Box K976 Haymarket NSW 1240


Compliments and complaintsTo make a complaint, offer a compliment, or ask questions relating to any AMSA decision, procedure, policy or service, members of the public may contact:

Telephone: (02) 6279 5000 Website: www.amsa.gov.au/contact-us

© Australian Maritime Safety Authority

This work is copyright. It may be reproduced in whole or part subject to the inclusion of acknowledgement of the source and no commercial usage or sale.

Reproduction for purposes other than those indicated above requires the written permission of the Australian Maritime Safety Authority, GPO Box 2181, Canberra City ACT, 2601.

ISSN 1039-0626

Copy/design/typeset: Australian Maritime Safety Authority.

ANNUAL REPORT CONTACT

REFERENCES

178

www.amsa.gov.au

AMSA191 (10/15)

annual report 2014-15 · authorities annual reporting orders 2011 (annual reporting orders)...

Documents